Our fingers are crossed!  Culver City is set to be next on the list of SoCal cities to authorize commercial cannabis activity! If you are a resident or are looking to do business in Culver City, we encourage you to attend this meeting and make your voice heard!

When:

Monday, February 12, 2018 at 7:00 p.m.

 

Where:

City Hall, Mike Balkman Council Chambers 9770 Culver Blvd., Culver City CA 90232

Persons unable to attend the meeting but wish to submit comments may do so by any of the following means, BEFORE 4:00 PM on February 12, 2018.

 

  1. By LETTER to the City Clerk, City of Culver City, 9770 Culver       Blvd., Culver City, CA 90232

 

  1. By E-MAIL to city.clerk@culvercity.org

 

  1. By FAX at 310-253-5779

 

The Culver City Council previously approved cannabis business regulations on December 11, 2017 after not allowing cannabis business activity of any kind up to that point. The City Council introduced additional public health requirements on January 22, 2018 and is set to adopt those requirements at its meeting on February 12, 2018.

These regulations require all cannabis businesses in Culver City to obtain a City cannabis business permit in order to legally operate. The City will finalize its regulations, including the application process, during the first quarter of 2018. After this finalization applications for cannabis business permits will become available. At its meeting on February 12, 2018, the City Council is set to adopt an ordinance requiring cannabis businesses to obtain a public health permit from the Los Angeles County Department of Public Health Environmental Health.

As other cities in the state have done, Culver City will issue a limited number of permits in each category. The maximum number of permits issued will be determined by the City Council at its meeting on February 12, 2018.

Proposed Maximum Number of Cannabis Business Locations by Business Type

For consideration by the City Council of the City of Culver City on February 12, 2018

The City of Culver City will issue up to the maximum number of permits by permit type as follows:

 

Permit Type Maximum Number of Permits
Storefront Retail 3
Delivery-only Retail 5A,B
Manufacturing 6
Distribution 6B
Cultivation (Indoors) 3
Testing Laboratory 4

During the initial application period, should more qualified applicants apply for a commercial cannabis business permit than the maximum number of permits allowed for Manufacturing, Distribution, Cultivation, Delivery-only Retail, or Testing (subject to comments A and B, below), the City Manager will implement a lottery or another approach (not first-come-first-served) to determine which applicants receive a permit.

  1. A) The City will initially only permit up to two delivery-only retailers. The other three of the five delivery permits will be initially set aside for the possible three storefront retailers. In the event one or more storefront retailer does not apply for or receive a delivery permit, the permits may be made available for a delivery only retailer.
  2. B) Distribution and/or delivery permits issued to a manufacturing permit holder (pertaining to its manufacturing business and on the same property) will not count towards the maximum number of distribution or delivery-only permits allowed.

 

Special Cannabis Tax

In November of 2017 the Culver City Council approved a resolution placing a tax measure on the April 10, 2018 municipal election ballot, asking voters to consider approval of a cannabis excise tax.  Below are the initial and maximum rates to be considered by voters.

  • Retail (medicinal): range of 5 -8% with an initial rate of 5%
  • Retail (adult-use): range of 6-10% with an initial rate of 6%
  • Manufacturing: range of 4-6% with an initial rate of 4%
  • Distribution: range of 2-6% with an initial rate of 2%
  • Testing: 1-1.5% with an initial rate of 1%
  • Cultivation: $12 per square foot of canopy

The initial rates would be in place for two years, after which they would be able to be adjusted by City Council resolution.

Cultivation rates would be adjusted according to the consumer price index after a two year initial period.

Please click here to visit the cities website for more information.

Click Here to read the City’s Ordinance

 

If you are interested in bringing your cannabis business into legal compliance, from licensing through continued operations, contact The Cannabis Corporate Law Firm.  We also represent investors and those looking to form strategic alliances in the cannabis industry.