HomeMy WebLinkAboutED Formation of Cannabis Industry Tax Oversight Committee____________________________________________________________________________________
FOR CITY CLERK ONLY
File No.: 9-2-73
Council Meeting: 10/21/2019
Disposition: Resolution 14731
Agenda Item No: 5.b
Meeting Date: October 21, 2019
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Economic Development
Prepared by: Simon Vuong,
Economic Development Coordinator
City Manager Approval:_____________
TOPIC: FORMATION OF CANNABIS INDUSTRY TAX OVERSIGHT COMMITTEE
SUBJECT: RESOLUTION APPROVING THE FORMATION OF THE CANNABIS INDUSTRY
TAX OVERSIGHT COMMITTEE
RECOMMENDATION:
1. Adopt a resolution establishing a Cannabis Industry Tax Oversight Committee.
2. Call for Applications to fill three four-year terms and two two-year terms on the Cannabis
Industry Tax Oversight Committee.
BACKGROUND:
On March 5, 2018, the San Rafael City Council voted unanimously to place Measure G, a
Commercial Cannabis Business Tax, on the June 5, 2018 ballot. The voters of San Rafael passed
Measure G, with over two-thirds of the vote and adopted Ordinance No.1961, adding Chapter 3.40 to
the San Rafael Municipal Code entitled "Cannabis Industry Tax". Measure G imposes an ongoing
tax of up to 8 percent on gross receipts of cannabis businesses operating in the City.
This measure is a special tax, and the proceeds of the tax may be used only in San Rafael, for the
purposes set forth in the measure, namely, to enhance city police and fire services; maintain city
streets; enhance city community centers; and administer a cannabis business regulation and
oversight program. The details of the oversight program, expected to include independent citizen
review, are not contained in the ordinance and must be adopted separately by the City Council.
In adopting the tax, the City intended to set up a citizen’s oversight committee, but the establishment
of such a committee and its scope were left for later adoption by the City Council. This report
contains staff’s recommendations for this committee.
ANALYSIS:
As recommended by staff, the Cannabis Industry Tax Oversight Committee’s mission is to monitor
Measure G revenues and expenditures and conduct an annual report process. Measure G provides
locally-controlled funding to support the following: administer a cannabis oversight program; enhance
police and fire services; repair potholes, City streets, and sidewalks; and enhance community
centers and facilities.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
Attached to this report are the specific details on the proposed Cannabis Industry Tax Oversight
Committee’s formation, guidelines, and policies (Attachment 2). The main role and responsibility for
the Cannabis Industry Tax Oversight Committee will be as follows:
• To review the expenditures of the Commercial Cannabis Business Tax revenues to ensure
the monies have been expended in accordance with the authorized purposes of Measure G;
• To prepare and submit to the City Council and the community an annual public report on the
expenditures of Commercial Cannabis Business Tax revenues from the previous fiscal year.
A resolution (Attachment 1) would formally establish this Committee. Staff recommends that the
Committee be composed of five (5) members, and that the City Council have the authority to appoint
alternate members. All Committee members would be required to be at least eighteen years old, be
San Rafael residents, and would serve staggered two- or four- year terms. The Committee would
have no more than two regular meetings per calendar year.
The Committee would automatically disband six (6) months after the tax is repealed, ruled invalid, or
terminates under the provisions of the applicable ordinance.
Staff recommends that the application process begin immediately. Working with the City Clerk’s
office, a Call for Applications would be released with an application filing deadline of Tuesday,
November 12, 2019 at 5 p.m. Interviews would be scheduled to take place at a Special City Council
meeting on a date to be determined. The first Committee meeting would be called within six months
of the City Council’s initial appointment of the inaugural members.
FISCAL IMPACT:
There is no fiscal impact associated with this action.
OPTIONS:
1. Adopt the resolution as presented.
2. Adopt the resolution as amended.
3. Do not adopt the resolution and direct staff to return with additional information.
RECOMMENDED ACTION:
1. Adopt a resolution establishing the Cannabis Industry Tax Oversight Committee.
2. Call for Applications to fill three four-year terms and two two-year terms on the Cannabis
Industry Tax Oversight Committee.
ATTACHMENTS:
1. Resolution
2. Committee formation proposal
3. Cannabis Industry Tax Oversight Committee application
RESOLUTION NO. 14731
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
APPROVING THE FORMATION OF THE CANNABIS INDUSTRY TAX OVERSIGHT
COMMITTEE
WHEREAS, at the Special Municipal Election held on June 5, 2018, San Rafael
voters approved Measure G, adopting Chapter 3.40 in the San Rafael Municipal Code,
a Cannabis Industry Tax, by a two-thirds majority of the votes cast in said election; and
WHEREAS, pursuant to Section 3.40.020 of Chapter 3.40, the City Council has
adopted new Chapter 10.96 of the San Rafael Municipal Code and Resolution No.
14644, together establishing a “cannabis business regulation and oversight program”;
and
WHEREAS, in connection with the cannabis business regulation and oversight
program, the City Council desires to establish a citizen’s committee to provide oversight
over the collection and use of the proceeds of the Cannabis Industry Tax;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San
Rafael hereby establishes the Cannabis Industry Tax Oversight Committee and
establishes the responsibilities and duties of the Cannabis Industry Tax Oversight
Committee members as specifically delineated in Exhibit “A” attached hereto and
incorporated herein.
BE IT FURTHER RESOLVED, that the Cannabis Industry Tax Oversight
Committee shall automatically disband no later than six (6) months after the Cannabis
Industry Tax is repealed, ruled invalid or terminates under the provisions of the
applicable ordinance.
I, LINDSAY LARA, CLERK of the City of San Rafael, hereby certify that the
foregoing resolution was duly and regularly adopted by the City Council of the City of
San Rafael, Marin County, California, at a regular meeting, held on the 21st day of
October 2019, by the following vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
LINDSAY LARA, City Clerk
Attachment A
Adopted _______
CANNABIS INDUSTRY TAX OVERSIGHT COMMITTEE BYLAWS
ARTICLE I. NAME AND PURPOSE
Section 1.1. Name. The name of this body shall be the City of San Rafael
Cannabis Industry Tax Oversight Committee, hereinafter referred to as the
"Cannabis Industry Tax Oversight Committee," or the “Committee.”
Section 1.2. Purpose. The Cannabis Industry Tax Oversight Committee’s
purpose is to ensure that all revenues received from the voter approved Cannabis
Industry Tax (Measure G) are spent on uses outlined in San Rafael Ordinance
1961.
Section 1.3. Committee Responsibility. The Cannabis Industry Tax Oversight
Committee’s authority is oversight only.
The responsibilities and duties of the Cannabis Industry Tax Oversight
Committee shall be limited as follows:
1. The Committee’s sole function shall be to review expenditures of the
revenues from the Commercial Cannabis Business Tax adopted by
Measure G on June 5, 2018 to ensure the monies have been expended in
accordance with the authorized purposes of Measure G;
2. The Committee shall take steps to understand the allowable expenditures
of the Commercial Cannabis Business Tax monies in accordance with the
authorized purposes of Measure G;
3. The Committee shall take steps to understand municipal revenue
collection and distribution from local, state and federal sources;
4. The Committee shall prepare and submit to the City Council and the
community an annual public report on the expenditures of the Commercial
Cannabis Business Tax revenues for the previous fiscal year (anticipated
each December).
The Cannabis Industry Tax Oversight Committee shall not:
1. Have any budgetary decision authority, shall not allocate financial
resources, and shall not make budget or service recommendations to the
City Council.
2. Have authority to direct, nor shall it direct, City staff or officials.
Section 1.4. Termination of Committee. The Committee shall automatically
disband six (6) months after the enabling ordinance is repealed, ruled invalid or
terminates under the provisions of the ordinance.
Attachment A
Adopted _______
Section 1.5. Brown Act. All meetings of the Cannabis Industry Tax Oversight
Committee shall be open and public, and all persons shall be permitted to attend
any meeting of the Cannabis Industry Tax Oversight Committee, except as
otherwise provided in the Ralph M. Brown Act. (Government Code Sections
54950 et seq.) Meetings will be accessible to all, with accommodations for
accessibility issues made upon request. Any person who disrupts the meeting
may be asked to leave and be removed.
ARTICLE II. MEMBERSHIP
Section 2.1. Number of Members. The Cannabis Industry Tax Oversight
Committee shall consist of five (5) voting members and the City Council has the
authority to appoint alternate members.
Section 2.2. Eligibility. Members of the Committee shall be at least 18 years of
age and reside within the City limits. The Committee may not include any
employee or official of the City, or any vendor, contractor or consultant doing
business with the City.
Section 2.3. Appointment of Committee Members. Voting Committee
members and alternate member shall be appointed by the City Council.
Appointments shall be published on the website for the City of San Rafael and as
otherwise determined by the City Clerk.
Section 2.4. Terms of Appointment. Each Committee member shall serve a
minimum term of four (4) years but not more than two terms. An effort will be
made to ensure that the terms are staggered, and not all of the appointments
expire in the same year.
Section 2.5. Chair and Vice-Chair. The City Council shall appoint the initial
Chair and Vice-Chair. Thereafter, the Committee shall annually elect a Chair and
a Vice-Chair, who shall act as Chair only when the chair is absent.
Section 2.6. Resignation. All resignations from the Committee shall be
submitted in writing to the Staff Liaison. The resigning Committee member
should provide as much notice as possible.
Section 2.7. Absence and Removal. The City Council may remove any
Committee member for any reason, including but not limited to, failure to attend
two consecutive regular Committee meetings. Upon a member's removal, his or
her seat shall be automatically deemed vacant.
Section 2.8. Vacancies. Vacancies, no matter how arising, shall be published
on the website for the City of San Rafael and as otherwise determined by the
City Clerk.
Attachment A
Adopted _______
Section 2.9. Compensation. Committee members serve without compensation.
Section 2.10. Duties of the Staff Liaison.
The Staff Liaison shall provide the Committee with necessary technical and
administrative assistance, including:
1. Preparation, provision and posting of public notices as required by the
Brown Act and in the same manner as noticing City Council meetings.
2. Provision of a meeting room, including any available City audio/visual
equipment.
3. Provision of meeting materials, such as agendas, minutes and supporting
reports.
4. Retention of Committee records.
5. Properly staff all Committee meetings.
6. Educate committee members on municipal finance.
ARTICLE III. MEETINGS
Section 3.1. Time and date of Regular Meeting. Notification of meeting place,
date, and time shall be rendered to the public through posting on the City of San
Rafael website. Meetings shall be held no more than twice annually.
Section 3.2. Special Meetings. Special meetings may be called by the Staff
Liaison.
Section 3.4. Quorum. A majority of the Committee members shall constitute a
quorum for the transaction of any business.
CITY OF SAN RAFAEL
APPLICATION TO SERVE AS MEMBER OF
The Measure G Citizen’s Oversight Committee for
Commercial Cannabis Business Tax
NAME: _________________________________________________________________________________
HOME ADDRESS: __________________________________________________________
_________________________________________________________________________________________
HOME AND BUSINESS TELEPHONE: (H)_____________________(B)_________________________
E-MAIL ADDRESS: _____________________________________________________________________
RESIDENT OF THE CITY OF SAN RAFAEL FOR ________ YEARS
PRESENT OCCUPATION/EMPLOYER: _________________________________________
_________________________________________________________________________________________
EDUCATION: __________________________________________________________________________
_________________________________________________________________________________________
________________________________________________________________________________________
ACTIVITIES IN OTHER COMMUNITY/CIVIC ORGANIZATIONS: __________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
REASONS FOR WANTING TO SERVE: _________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
IF APPOINTED:
PREFERRED LENGTH OF INITIAL APPOINTMENT: 2 YEARS ______ 4 YEARS
PREFERRED MEETING TIME: MORNING AFTERNOON EVENING (CIRCLE
PREFERENCE)
PREFERRED MEETING DAY: MONDAY TUESDAY WEDNESDAY THURSDAY
FRIDAY (PLEASE CIRCLE ALL DAYS YOU ARE AVAILABLE)
FILING INSTRUCTIONS:
PLEASE SIGN BELOW AND RETURN TO THE DEPARTMENT OF THE CITY CLERK, 1400
FIFTH AVENUE, ROOM 209, SAN RAFAEL, CA 94901
FILING DEADLINE IS: NOVEMBER 12, 2019
APPLICANTS ARE WELCOME TO USE ADDITIONAL PAPER WHEN PROVIDING
ANSWERS. PLEASE ATTACH TO OFFICIAL APPLICATION FORM.
IF YOU HAVE ANY QUESTIONS ABOUT THIS COMMITTEE OR NEED THIS FORM IN AN
ALTERNATE FORMAT, PLEASE CONTACT SYLVIA GONZALEZ AT (415) 485-3073.
SIGNATURE: ___________________________________ DATE: ________________________