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Anaheim council to decide on cannabis rules and tax measure June 9

Anaheim voters could see a November ballot measure asking whether the city should permit and tax cannabis businesses.

Santa Ana is the only Orange County city that allows retail pot shops, though Costa Mesa and a few others permit non-retail operations such as distribution facilities and testing labs.

The Anaheim City Council discussed cannabis businesses on Tuesday, May 12, and opted to postpone until June 9 a decision on whether to put a tax measure on the fall ballot.

If council members opt to move forward, they likely would approve rules that would only take effect if voters approved the tax measure.

Interim City Manager Greg Garcia gave the rough outlines of the rules: cannabis businesses would be limited to industrial zones, which are scattered around the city; they’d have to be at least 600 feet from homes, schools and other sensitive locations; the city would offer 20 permits each for retail, indoor cultivation, manufacturing and distribution businesses; permit holders would need to submit public safety plans and have on-site security; and no one under 21 could enter the businesses.

Other provisions, including how much businesses would be taxed, will be fleshed out if the council agrees. Factoring in the election and time to figure out a permit system, Garcia said it’s unlikely any cannabis businesses would be open before mid-2021.

Councilwoman Lucille Kring, who requested the discussion, said she’s never been a vocal supporter or opponent of cannabis. But after hearing that people in the cannabis industry might push a ballot initiative, she said she thought city leaders should take action so they could make the rules they want.

“In my opinion, we are at a point where the right thing for Anaheim to do is legalize, regulate and tax these businesses, rather than keep these businesses in Anaheim in the illicit market,” Kring said.

Although Mayor Harry Sidhu supported Kring’s request to bring the issue to the council, he said Tuesday he would sit out the discussion and vote out of caution to avoid any appearance of a conflict of interest; his son works as a cannabis industry consultant.

The city set up a special web page at anaheim.net/cannabis with a map showing the city’s industrial zones and other information on the cannabis proposal. Residents can email their questions and opinions to council@anaheim.net.

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