Title
a. Receive and accept the Cannabis Program update on performance indicators for Fiscal Year 2023-24; and
b. Provide direction to staff as appropriate.
Report
RECOMMENDATIONS:
It is recommended that the Budget Committee:
a. Receive and accept the Cannabis Program update on performance indicators for Fiscal Year 2023-24; and
b. Provide direction to staff as appropriate.
SUMMARY/DISCUSSION:
The cannabis industry is an important economic engine in the County of Monterey (County). The County Cannabis Program (Program) provides a local framework for the management of licensed commercial cannabis activities in coordination with state and County agencies to address taxation, regulation, enforcement, education, and the protection of the health, environment, and safety of our communities. The County is ranked sixth in the State of California for cannabis cultivation based on the number of active cultivation licenses.
Cannabis industry articles reinforce businesses challenged by the state’s high taxes and regulatory hurdles heightened by a thriving illicit market and an influx of intoxicating hemp products. These issues collectively strain an industry forced to take protective measures, including scaling down operations, failing to pay taxes, and closing operations. Currently, there are 61 active commercial cannabis business, 9 dispensaries and 52 cultivators, operating within the County. These businesses are navigating a cannabis market downturn that began in 2021 while paying local taxes, and meeting state and local requirements for annual licensure by January 2026. The Program is working with 12 potential cannabis business applicants all of whom must hold an annual State and local Cannabis Business Permit (CBP) before opening their doors.
The Program collects data from various sources and provides performance measure updates to the Board Cannabis Committee shared within this report for fiscal year (FY) 23-24 (Attachment A).
Below are the Program alloc...
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