Long Beach is on the verge of a shift in its cannabis regulations, potentially allowing public consumption use at sanctioned events. This move could transform the local cannabis scene, offering new opportunities for businesses and consumers alike. Additionally, recent developments in cannabis Long Beach tax policies aim to stimulate growth in the industry.
Proposal in Long Beach to Allow Cannabis Consumption at Public Events
In Long Beach, smoking marijuana at public events has been common but is still deemed illegal in the eyes of the city. However, the city is considering changing this by reviving an old ordinance reports the Long Beach Post. This move could align Long Beach with other California cities like West Hollywood and Sacramento, which have already permitted public consumption of cannabis use at certain events.
State law currently allows temporary permits for the onsite sale and use of cannabis at specific events, but these permits require local approval. The Long Beach City Council is now taking the first steps toward allowing such permits within the city.
Local lobbyist Mike Murchison highlights that this change could bring significant revenue to Long Beach, especially with the loss of oil revenue. The proposed events, including a potential birthday celebration for Snoop Dogg in 2025, could attract large crowds and boost the local economy.
“We’re trying to do a birthday event to celebrate Snoop Dogg here in 2025 in the fall,” Murchison said. “To do that, we need to change the current statutes here in Long Beach.”
The Long Beach City Council voted unanimously to study the feasibility of allowing temporary permits for cannabis at public events. A 60-day study will explore the necessary guidelines, staffing, and visibility requirements.
Cities like San Francisco, Oakland, and Sacramento have successfully implemented similar permits since 2018, hosting large-scale events with minimal issues. This year, for the first time ever, the California State Fair allowed on-site consumption and on-site sales, which ended up being a resounding success. These examples provide a roadmap of success for Long Beach to follow.
Cannabis Tax Reductions
Long Beach additionally announced a reduction in cannabis taxes that took effect in May, as reported by the Long Beach Post. The 1% reduction applies to both cultivation and adult-use cannabis retailers. Additionally, cannabis businesses in ‘good standing’ can apply for an extra 3% reduction if they meet specific criteria.
To qualify and apply for the additional tax reduction, businesses must:
- 40% of employees reside within Long Beach
- Employees receive wages set at 110% (or above) of the state minimum wage
- 80% of employees receive wages set at 115% (or above) of the state minimum wage
- Proof of participation in a High Road Training Partnership
And at least 1 of the following:
- 15% of shell space reserved for cannabis goods cultivated, manufactured, or delivered by an equity business
- Provide 50 hours of Incubation support per year to equity businesses
The 1% across-the-board tax cut is expected to cost the city about $1 million annually. However, depending on how many businesses qualify, the total projected cost could reach $3 million.
The tax reductions aim to stimulate growth in the local cannabis industry, making it easier for businesses to compete with the illicit market. This could lead to more job opportunities and increased economic activity within the city.
Moreover, these tax cuts must be passed on to consumers, resulting in lower prices for legal cannabis products. This makes it more affordable for residents to purchase cannabis legally.
By encouraging local hiring and equitable business practices, these policies aim to promote community development and social equity within the cannabis industry.
Looking Ahead at the Future of Cannabis in Long Beach
If the city approves the ordinance, Long Beach could host a variety of cannabis-friendly events, ranging from small pop-ups to large-scale festivals. This would not only attract tourists but also position the city as a leader in the evolving cannabis industry, given its rich cannabis history.
The City Council is expected to seek input from residents and stakeholders throughout the 60-day study period. This feedback will be crucial in shaping the final ordinance and ensuring it meets the community’s needs.
The combination of event permits and tax reductions could significantly boost Long Beach’s economy. By attracting high-profile events and supporting local businesses, these changes have the potential to create a more vibrant, inclusive, and prosperous community.
Long Beach is on the cusp of meaningful changes in its cannabis regulations, with the potential to allow marijuana use at public events and reduce taxes for compliant businesses. These moves aim to stimulate growth in the local cannabis industry, attract tourism, and promote community development.
