On March 1, the City Council adopted Resolution No. 2022-07 to place a special tax measure on the June 7, 2022 Statewide Primary election ballot.  If approved by two-thirds of Huntington Beach voters, the City would be able to issue a tax of up to 6% on cannabis retailers and up to 1% on non-retailers (i.e. testing labs, distribution companies, etc) operating in the City.  The special tax is estimated to raise approximately $300,000 – $450,000 annually in tax revenue that would be used exclusively towards police services, as well as homelessness, behavioral health and drug intervention programs. 

At this time, the City of Huntington Beach currently prohibits cannabis sales.  However, the City is currently developing an ordinance that would permit and regulate these businesses.  A few considerations include: type of cannabis industries (i.e. retail, manufacturing), buffer zones from sensitive uses like schools, the permit selection process, and the number of permits issued.  That ordinance will be returning for future approval. 

In summary, a potential cannabis program in the City will be handled in two phases – a special tax measure at the June 7, 2022 Statewide Primary elections and a regulatory ordinance that will be considered in the near future.  The City’s proactive efforts to establish a special tax and ordinance will ensure that they incorporate the City’s preferences.  Prior to such efforts, two private parties had filed petitions that would have allowed them to place their own program regulations and tax rates on the next ballot, without any feedback from the City.  Those private parties have since suspended their petitions, after learning about the City’s proactive efforts.