REPORT TO THE CITY COUNCIL FROM: GEORGEANNE A. WHITE, City Manager Office of the City Manager BY: JENNIFER RUIZ, Deputy City Manager Office of the City Manager SUBJECT ..Title Actions pertaining to Commercial Cannabis Activity: 1. ***BILL B-26 (Introduced June 19, 2025) (For Adoption) Amending Sections 7-1404 Through 7-1432 of the Fresno Municipal Code, relating to Cannabis Business License Tax. (Subject to Mayor's Veto) ..Body RECOMMENDATION Staff recommends that City Council adopt Bill B-26 amending Sections 7-1404 through 7-1432 of the Fresno Municipal Code (FMC), relating to the Cannabis Business License Tax. EXECUTIVE SUMMARY The ordinance amendment eliminates FMC Section 7-1404, which established a "Community Benefit Commission" to recommend allocations of the revenues received into the Community Benefit Fund (Fund), established by section 7-1403, derived from 10% of the cannabis business license tax revenues. Since its inception in February 2021, the Fund has accumulated less than $700,000 total. The amount of funding accumulated into the Fund over the last three years does not support the need for, or costs relating to, staffing a commission to oversee the Fund. BACKGROUND Article 14 of Section 7 of the FMC establishes the Cannabis Business License Tax and its corresponding regulations. The proposed amendment eliminates Section 7-1404, which established a "Community Benefit Commission" to recommend allocations of the revenues received into the Fund, derived from 10% of the cannabis tax revenues, to the City Council, which has the ultimate authority of the allocation of this Fund. Since 2022, only 11 applications have been received for the Community Benefit Commission. No appointments have been made to this Commission. While the purpose of the Commission was to recommend funding allocations based on the goals set by Council in Resolution No. 2022-192, the actual allocation of the funds is to be made by City Council. Since its inception, the Fund has accumulated less than $700,000 total. The amount of funding accumulated into the Fund over the last three years does not support the need for, or costs relating to, staffing a Commission to oversee the Fund. All other changes to the ordinance pertain to renumbering the remaining FMC Sections because of removal of FMC Section 7-1404. ENVIRONMENTAL FINDINGS Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15378(b)(4), this item is not a project for the purposes of CEQA. LOCAL PREFERENCE Local preference is not applicable to this item. FISCAL IMPACT There will be no net impact to the general fund. Attachment: Ordinance 517073v1