Speaker 0: Great. Thank you very much. We're going to move right into item 17, which is the tax reduction report.
Speaker 2: Recommendation to request. I'm sorry. Communication Councilwoman Allen Councilman Zendejas. Vice Mayor Richardson recommendation to request a report exploring the feasibility of reducing the city's adult use cannabis retail tax within 90 days and submit the findings to the Budget Oversight Committee and the Economic Development and Finance Committee.
Speaker 0: Thank you. I'm going to start with Councilman Allen.
Speaker 4: Yes. Thank you, Mayor. I want to quickly recognize Kevin Raper from financial management and Emily from the city manager's office for their help on this item. This is a very important issue which touches businesses, workers rights and issues of fairness. I've heard some from so many folks in the cannabis industry that operators are overtaxed and burdened by various regulations. As a former small businesswoman myself, this really bothers me. It's important that businesses receive equal treatment under the law. I think looking into whether we can reduce our sales tax is one way we can help these businesses succeed and keep jobs in the cannabis industry. Currently, all legal adult use cannabis operators already pay application fees, annual fees and equity program fees to the city in addition to state fees and taxes. Looking into aligning the adult use sales tax with the medical sales tax rate would be beneficial, especially to our small cannabis operators. Council has the ability to lower taxes and has done so has done so for cannabis businesses and numerous and numerous on numerous occasions. I do want to take a moment to recognize Council member Al Austin for recently taking the lead on finding ways to reduce our local cultivation tax together on items we can help create a more equitable business climate for legal cannabis operators in the city. Lowering lowing lowering the adult use sales tax will help our local cannabis businesses expand their local workforce and provide their employees with livable wages, lower the price of cannabis products for consumers, and also increase their sells, which is always good. Addressing tax inequities is also a good way to break up the illicit market. I have heard on that on several occasions that there are over 300,000 jobs in the illicit market producing goods that are untested and potentially unsafe. The state needs to take the lead on this, but as a city we should do all that we can do to make sure that businesses are shut down, are brought into the legitimate market. By reducing taxes and by reducing these taxes is one way that we can help do that. I do understand this is still a funding source for the city, and I appreciate all the conversations I've had with staff on this matter. I'm looking forward to report back and to finding ways to create a better environment for the legal cannabis operators in Long Beach. Thank you.
Speaker 1: Thank you. All right. So I'll offer my comments here as the second year of the motion. I mentioned it earlier that this is a new industry and we have to understand it and nurture it so that it provides the revenue that our city needs. And as a new industry, there's already a workforce here. And I think Councilwoman Allen sort of mentioned that. And this is a local workforce. These are local people, local jobs, and they pay good wages and many of them are union jobs. And I think it's important that we continue to nurture that and grow that. You know, as this has developed, we've seen the economic I love that the Economic Development Committee is engaged in this because that's the committee that engaged in this the first time when we looked at manufacturing taxes. Our manufacturing tax structure was significantly higher. We initially brought it to city council. The initial response was, Yeah, we can explore this, but we're concerned about declining revenue. So the so they projected it out and guess what happened? The opposite happened. The revenue actually increased dramatically after we reduced the manufacturing taxes. Now the city council has taken a step on cultivation and this is on retail. It's just the next natural step that we should explore in this new industry that we have. So I think this makes sense. We have to continue to monitor it, continue to track it, continue to invest in it. I also think that there's a relationship between the action we just took with expanding dispensaries and lowering taxes because you're going to increase revenue as we add more dispensaries. That revenue helps us address quality of life issues in the city. People have to understand that we have significant work to do around homelessness and other issues. This is a new revenue source to help add resources to battle and help ensure that we're getting families off the street and finding the housing that they need. So there's a relationship to this strategy. So I look forward to I serve on that committee, the Economic Development Committee. I look forward to this discussion and I look forward to the report that staff will bring back. So thanks so much. Next, we have Councilwoman Mongo.
Speaker 7: Thank you. I would like to ask the maker of the motion if you'd be open to. I see that the motion was written. First it goes to this committee and then another committee. Would you be open to a parallel track again so that we would be able to resolve some of these things and dig into them faster
Speaker 4: ? Yes, I'm fine with that.
Speaker 7: Wonderful. So I would ask the staff member for Economic Development Finance, along with my chief of staff, to put this on the next EDF committee meeting. I look forward to digging into the details. While we love all business in the city, we have to recognize that not every dispensary is the same. Some dispensary owners are really great to live next door to, and some dispensaries are not as great to live next door to, just like restaurants and grocery stores than anyone else. Traffic patterns and other things. And one of the things that I always fall back on as I have, I think that most dispensaries in my district but now with redistricting, who knows, is that this is a paying member of our community and they are contributing to programs that help our parks and our schools and so on. I think that it's great to address this at this time when we're adding additional dispensaries, because then there will be no loss of tax that we have to actually make up the gap for. But I also think that it's important to be really transparent about when and how that tax impacts total sales and total volume and what the traffic patterns continue to look like. We want to also support dispensaries in business transition and I don't know if that means certain dispensaries that are only open . Short hours could extend a bit because the demand and the lines at some of the places in the city are just very difficult for neighbors and the community. So I look forward to, in some cases, opening additional dispensaries to take on some of that demand and also recognizing that the messaging of wanting to increase demand doesn't always digest as easily for certain neighbors as others. So we'll look for a balanced way to both achieve the goals and make sure that the community is served. Thank you.
Speaker 0: Thank you, Councilman Sauro.
Speaker 8: Thank you. I want to thank Councilwoman Allen for bringing us item forward for us to better understand how do we support our and nurture our growing cannabis industry. I know that that's been mentioned earlier. It's a new industry and we're trying to figure out, you know, how do we ensure we're doing the right thing as a city to ensure all businesses, including cannabis business, succeed? And so with that said, I really am interested in seeing how the feasibility study will look at how not only to align the cannabis retail tax rate with the medicinal. I actually so I'm a person who loves research and looking at possible scenario. So I would like to offer to see if we can also add, well, what does it mean to look at lowering it even more just to see? Right? Can we do a scenario of 4%, 5% and 6% on what that would mean? Because as much as it may individually reduce the amount of tax that person is paying, it could also increase the number of people buying in the legal market. Right. So how do we make sure we're also attracting more away from the illicit to the legal market and the other with that study to also want to look at the feasibility of what it would mean if we passed the state bill that is going to come before us is like kind of doing this match of like it was at 8% of state reducing it to that the state excise tax to 8%. So seeing what it would look like at 6% local, 5% to 8% just so that we're seeing at the whole picture of what everything would look like financially to best inform our committee as it comes before them through the budget oversight as well as economic development. So I think the more that we have material wise as far as content for us to consider, the better so that we can ensure we have a thriving cannabis industry here in Long Beach. But also, how does it also ensure the city is going to be able to also receive the revenue it needs to support our services as well? So I think. And that's it on my end. Thank you.
Speaker 0: Thank you. Customary Ringo.
Speaker 1: Thank you, Catwoman. Sir, I was thinking along the same lines that, you know, once it comes to the to the Budget Oversight Committee, I think we should be looking at all the different scenarios, because that's the only way we can really make a real sound decision as to what would be the best route and the best approach to take this. I totally agree that it's a new industry we need to look at with fresh eyes, and of course we're going to be mistakes. But at the same time that if we can assure ourselves that we are covering as much as we can and looking at all possible and reasonable scenarios to ensure that what comes out of this committee and what comes out of the city council is is absolutely the most appropriate for us to follow. That would be benefit is beneficial not only for the city itself, but for all those operators out there who who need to help. I mean, it's a new industry. You need help. It's growing, it's evolving. And so we need to have those ordinances and rules in place to help you do the business that you want to do. Thank you very much.
Speaker 0: Thank you. Councilman's councilman and.
Speaker 6: Thank you, mayor. And, yes, this is this is really good. I think that I was thinking along those lines as well as how it would be and how it would look for our for our community. In the cannabis industry, as we know, the cannabis industry is booming. And here in Long Beach, we have committed to supporting its growth and ensuring communities that have been mostly impacted by the criminalization of cannabis are included in this thriving process. I am proud to be proud to place social equity at the forefront of our local policies and the and including them as we work through this. So thank you very much for that. High taxes really creates a big barrier, and I'm so very supportive of this request to do a feasibility report on how we can better address that. So very supportive of this item.
Speaker 0: Councilman Mongo.
Speaker 7: Thank you. Councilman, a great idea on the state tax. I would also ask that that committee consider there are a lot of interesting things that happen as acceptance is brought to the forefront. We are on the front edge of this and we want to make sure that those state laws benefit the cities that were willing to take those risks. And so if we as a city of Long Beach choose to go with a lower sales tax, then I hope that residents of the City of Long Beach would want to then purchase their marijuana here, but also that there's an opportunity to capture that sales tax in a meaningful way. And I know there are some sales tax formulas, like when you buy a car, you don't necessarily pay the sales tax of that city in that city. I would be interested in looking at some opportunities that really reward Long Beach for being at the forefront of the industry in that state legislation. So I'm just something to think about. I know it takes a long time to develop those mechanisms, but I know that we have the the brains on our team to come up with something that would be beneficial and meaningful. Thank you.
Speaker 0: Thank you. We're going to go ahead and get a public comment in just a minute. Just going to say just two things. So I obviously am very much in support of what's in front of us for two reasons. I think. The first is I'm one of the few folks I think probably left here at the city. There's a couple of us that were here when we actually debated and were discussing this very question of what the actual rate should be. And the truth is, is that we weren't sure. I think we tried to set what we thought was the most fair rate that our our priority was trying to ensure that we created a regulatory framework so that cannabis could actually become a part of the economy of the city. And we had, of course, had some experience with with medicinal use. And we're working with our partners and in the industry, folks that where we're already here working and we were all trying to come up, staff, the community, those of us that were here with what the right number would be or the right tax structure would be . And so the reason why I think it's I support this conversation and the study is because we were very aware then and we're very honest that we would always look at adjusting the rate in the future and that it wasn't a permanent number that was somehow the perfect right number. We had always discussed reviewing it, of course, always keeping in mind that there are costs and that we have to ensure that that the city has the needs to to manage the program. That's always been important, but the review is really critical. So I of course, I support that. The second reason why I support this is I have been convinced by many folks, business owners in the industry, other folks I'm talking to at the state level that the illicit market is destroying the industry right now. And right now, the illicit market and what's happening not just here in Long Beach, but across across the state is is causing incredible damage to legitimate business owners that are trying to operate their business. They're trying to provide good jobs to local folks that are working really hard to actually reinvest back into not just the community, but the broader cannabis movement. And that is being undercut by by folks that are able to, because of taxation and regulation, are operating outside the system and are making profits that are not going back into communities and the same in the same way. And so I think this is a fair way of looking at this issue, looking at it, doing an appropriate study like we did months ago. And and I hope that we have some some good suggestions moving forward. I know that this you know, we really can't have this conversation around what's going on with the city without having the conversation around. What's really egregious is what's happening at the state level. And I'm hopeful that this year it appears to me that there is movement on the state level for a reduction and a change in the regulatory framework of of of the taxes there. So I think we're all hopeful that that is that will also happen. I know that's that's going to be discussed next. But I think this is also a really good opportunity for us to look at the entire retail tax rate and see what's what's what's best for the city. And with that, I want to go and ask the public comment period to start and if I can have the first five speakers, Madam Clerk.
Speaker 2: Natasha Bramblett, Christopher Conch, Elliott Lewis, Jose Hernandez and Charles Pankey. Can you please come to the podium? Natasha. Christopher. Elliot. Josie and Charles. Hello, Mayor and City Council. My name is Natasha. I am one of the first adult use cultivation licenses to get up in the city.
Speaker 7: In the city of Long Beach. I am here today on behalf of the ABC to encourage.
Speaker 2: You to support the study on retail tax modernization.
Speaker 7: Not only does modernization of retail taxes help make legal.
Speaker 2: Cannabis product more affordable, affordable to patients and residents, but also widens the.
Speaker 7: Tax base tax base.
Speaker 8: Of.
Speaker 7: Residents able to purchase.
Speaker 2: Legal cannabis products and.
Speaker 7: Reduces the size of the illicit market. Long Beach is a leader current and currently is being looked at by the state.
Speaker 2: For data.
Speaker 7: Metrics on how to lower.
Speaker 2: Taxes and can increase the tax revenue over time.
Speaker 7: Please allow the study to.
Speaker 2: Look at different tax rate options.
Speaker 7: For the Council to consider, which is 4%.
Speaker 2: 5% and 6%.
Speaker 7: I would like I would also like to call all the cannabis communities behind me to stand up and show their support. Thank you.
Speaker 1: Just do that.
Speaker 5: And.
Speaker 0: Please. Next week, please.
Speaker 1: Hey, what's up, everybody? My name is Christopher Kader. I'm the vice president of a manufacturing facility in District six. Today's pretty historic. Thank you for championing all the efforts that we're talking about today. I know there's no such thing as a perfect cannabis policy, but if we all work together, we can make things perfect. So thank you for your effort. I don't want to parrot a bunch of talking points we've all been talking about today. We all know adjusting retail taxes makes products more affordable. More affordable products brings more people into the stores, more people in the stores makes more sales. More sales makes more taxes. So that being said in this study, if we could really look at something that's a substantial discount on taxes, you know, I know aligning with medical is a great talking point, but let's do something that is going to drive people into the stores. I think 4% is something we can look at, if not four, maybe five. But I think those are the two numbers I think that are going to be the most progressive to increase the tax revenue. So that being said, thank you. We appreciate your efforts. And let's get this done. Cleaning Council. Once again, I'm just so happy I didn't get a chance to speak for 3 minutes, so that's why I'm here again. But I also wanted to just uplift the key aspects of it. Like a lot of the workforce that I'm with, they're unionized labor. And, you know, in a time when like labor is under attack, this is a very important component that I think folks don't understand. These are young people that a lot of times go to college, have degrees, have student loan debt, and they can't find good jobs in the work that in the in the major that they went for. So then they find themselves scrambling to find good jobs that will pay them a dignified wage, that will give them health benefits. And this is, you know, substantial in the moment, again, when there aren't that many good jobs out there. A lot of the folks came from trap shops. You know, women were harassed, our folks were overworked. We're content 20 hours a day or whatever, 15, no overtime. So it's this is just such an opportunity. There's a long way that we have to go to destigmatize the industry. And I think that, you know, as far as Catalyst Cares is concerned, we're doing the most we can with when it comes to community service, community cleanups, food distributions, hygiene and, you know, and offering services for the homeless folks and and advocating for good policy that will create even more jobs for our community members and our friends that, you know, are still trapped in the black market but want to be legitimized. You know, we deserve to get out of the shadows and be brought into it. I mean, I came from a time when you had to meet somebody at a dark alley and they would get there an hour later after they said that they'd get there. But, you know, that's neither here nor there. We know now we go into places. It's like a pharmacy, you know, and you go to places and there's older folks. There's like companion hours and, you know, that's the next step to getting Latino communities to understand that it's not the, you know, this scary stuff that, you know, that's similar to heroin because that's basically when you tell people that is marijuana, you might as well tell them that you're addicted to heroin. So these are the kind of things that we're trying to fight against. And one day my parents will accept that aspect of me. And then one day everybody around the world will accept how you know, that this is the plant that God put on this God green earth to be able to heal us in ways that the big pharmaceutical companies have not. So I'm personally really focused on the healing aspect of it and I feel as well as the recreational. And so I want to help promote that in the city with anyone here that wants to be able to be championing that aspect of mental health awareness, public health and all the beautiful ways that this plant is helping reshape our society. Thank you. Thanks to my colleague, Joe. Hello, Mr. Mayor. City Council members. My name is Charles Pankey. I am the director of operations for Catalyst Cannabis Co. Thank you for having us here today. Thank you for considering this agenda item. You know, it's been touched on here, but, you know, the legal cannabis market is extremely important to the city of Long Beach and to all cannabis users. The one thing I'd like to point out to is that taxes need to come down strictly because it's a point of survival for us at the retail level. I've been in legal cannabis for nearly ten years. I've been selling cannabis since college. I'm mid-thirties, so I've seen the ways it's come through in several different markets and I've never seen anything like in Southern California, the either not on purpose, but just the overall undermining of a legal of a legal business, legal economy, a legal way to get cannabis to people, shops. These people do not care whatsoever about public safety. I've actually hired people from trap shops are making $12 an hour trying to live in Southern California at $12 an hour. And it's only the only reason I took these jobs is because the only way for a lot of people to get into cannabis. That is the way that and that's another thing about cannabis to cannabis is is a space for people that are a bit different from everybody else. People that maybe stumbled once in a while here and there. But with the legal cannabis system, we can really uplift a lot of different types of people and a lot of different types of communities. So I really implore you to consider this agenda item and bring these taxes down to help us as retailers continue to thrive and succeed. We employ union people. We employ security guards. We make sure that this whole process is safe for people to get cannabis. And not only the public safety aspect from the traps running to, but people are buying products that aren't tested. You know, our vendors are required to test their products every single batch. You know, they're required to get rid of them after a year's time in distribution, you know, people are selling old, possibly cannabis laced with all different pesticides, things like that. I don't mean to be an alarmist, but another good thing about retail cannabis is that people are actually getting safe products that are vetted and actually they can be talked to about these products and their property in a proper manner. You know, all of our all of our consultants and countless cannabis are seriously taking every single person that walks into consideration of what their health can do for them, what cannabis can do for them. So I just, you know, would like to see taxes as low as possible. Bring it in line with medical is a good start. But again, it needs to be even lower to help to help the legal cannabis industry thrive. So thank you. Elliot Lewis Catalyst Cannabis Co. Sorry for the double dip, but I'll take another 3 minutes. Passionate on this tax issue. It's the bad policies of the states and the municipalities that have created a monster. The black market is bigger than ever. It's 75% of the market today and all the bad outcomes that Charles and Josie talked about are happening in the black market, and that's due to bad policy. All we have to do, and I've heard state officials, state and local officials say, oh, well, the black market is never going to go away. No, that's wrong. All you have to do is abolish all the taxes. I know we can't get there today. Right. But if they abolished all the taxes in particular at the state and white, you know, it's very important. Every step we make is a step in the right direction. There would be no demand. The problem in the black market and why it exists and just so every city official understands it, it's a demand problem when you charge 45, 50% more for a product and we have union workers, right. And etc., etc., and all the costs and compliance that come along with being legal. Just besides the state tax, we're about to clip out a bunch of hundred K annual fees in June just to keep each license going. Each one of these payments is a breaker. So at the end of the day, the government is creating the demand for the black market and that's what's really frustrating. And what's the basis for this? Cannabis has been an accepted medicine for 10,000 years. It's only this little hundred years and the reefer madness that existed that preceded it, then it got put into this category and de-stigmatize. So I know there's this stigma that's attached to it, but there's really no reason for it. Why is cannabis taxed at a different rate than everything else across the board? Nobody can give a logical explanation, and I understand that the special interest of the city, of the city and the special interests of the state need to get their money. But it's like a kick in the face when, you know, the state has a $60 billion surplus again to repeat it and they're getting less than 1 billion and they're killing 300,000 jobs. And at the end of the day, the other comment I want to make that's really important. These are upward mobility jobs. A third of the people that work at our HQ started as bud tenders and or receptionist and or have escalated to general managers or all the way to HQ. And these people are way more valuable than some jerk off from some box store that doesn't understand cannabis, which make this industry really, really cool. The last thing I want to say, despite all the differences some of us have in the audience, you see how deep the industry rolled today, right? Everybody on this issue unified. So I want to give a shout out to everybody who showed up no matter what their affiliation is. The industry stands strong on this issue and it really this whole idea that there needs to be a vise tax surrounded cannabis is just twisted thinking that makes no sense. And it's the government both at the city and the state level. And I applied law because we're going in the right direction. I love it. But at the end of the day, that's what's creating the demand in the black market. It's bad government policy. Even if you abolish taxes or drastically lower them, it'd be gone. And by the way, y'all could make some more money if you could fix it at the state.
Speaker 5: Thank you, Danielle Lopez. We have many more public comments.
Speaker 2: Two more speakers, please. Danielle Lopez. Jordan Wilbur, can you please come to the podium?
Speaker 1: Hello. My name is Jordan. Wilbert and I live and work here in Long Beach. I'm a lead at the Cannabis Cherry Dispensary. I've worked there for over two years now. I'm up here to say that if the taxes do not come down in the legal market, union workers like myself, growers, distributors and shops all over the state won't have a job in the future or health benefits of any kind. And lots of great product slash medicine will go to waste on the shelves due to the super competitive illicit market being a cheaper route for patients and recreational users alike. If taxes could be lowered, then the legal market can continue to provide jobs for people all up and down the state of California and a safe way for medical users to get their medicine without having to resort to the streets. I want my city council members to please investigate the possibility of reducing the state and medical cannabis retail tax rate and to support the social equity applicant ordinance. Everybody and I mean, literally everybody should be able to have access to, be and thrive in this industry. Thank you for your time and hearing me out.
Speaker 8: Hello again. My name is Daniel and I'm from.
Speaker 2: Catalyst Cares be a Catalyst.
Speaker 7: Cannabis company.
Speaker 2: And what an honor it is that that last one was only a minute and a half. But now that I have your time, it's a bit more relaxed. But that being said, yes, taxes must be lowered. It is incredibly and outrageous and very ridiculous. Why? It's nearly 40%. And again, as they said, there's no logical explanation behind it. Just because it's cannabis and just because it's new, they're going to exploit.
Speaker 7: Us to squeeze every dollar that we have. But that's the thing we are running out of dollars to provide.
Speaker 2: And so this new income that.
Speaker 7: The city gets, that the state gets, it's going to fall.
Speaker 2: And that's what's going to happen. It's going to fall because these taxes are so high, because the regulations are so deep, and because the track and trace system that.
Speaker 7: They have for us is not.
Speaker 8: Helping.
Speaker 2: And it's not helping. And it's really sad because there's 300 thousands of jobs and more that could be possible. We need a janitor for the building. And it's not even just that we need a head of a company. We need every single job that takes and makes a business function. And that's what's really sad about it all, because we can't offer it.
Speaker 7: We want to, but we can't. Why? Because we just can't afford it.
Speaker 2: And that's what's really frustrating. And that's why we demand lower taxes and higher access. And that's why we demand to be taxed fairly like any other business should be. You know, there's no reason why if my cousin could go distill his own beer in his backyard and then sell it and make a label on it.
Speaker 7: Where.
Speaker 2: His track and trace this and where is the metric where his 40%, there's none. Why? Because it's not made like that. And for whatever reason, just because we were once an illegal industry and now we want to thrive, we keep putting setbacks after setback after setback. And that's just not fair. And how is it that we have to limit and not let anyone else have a chance for their American dream? And who are we to send in anyone else's way to do that? I don't think that's fair. And I want that to be fair. I want that to be fixed. I want that, too, so that every person, bipoc group can have a chance to do that because it's just a dream until they can do something about it.
Speaker 7: Right.
Speaker 2: Thank you.
Speaker 0: Thank you. I think that I think that concludes public comment. We have a motion and a second. I think I've come to remember I want to make an additional comment.
Speaker 7: I want to thank you guys for additional comments tonight. And I know that it is frustrating to be in a new industry. And you are right, there are lots of stigmas. But I challenge each and every one of you to do what many of us will not many of us left over from the original group had said on day one. There needs to be more advocacy to change marijuana and not have it be a Schedule one drug. If you can change the federal law. Look who's running for Congress. Look who's running for U.S. Senate and support. And ask these candidates what their position is. Government is complex and we appreciate you that you are here advocating tonight. But oftentimes because you're good advocates for your own cause, other causes ask for your support. And it's easy to jump on those bandwagons that add complexity to local government. And those complexities result in layered tax systems that don't cooperate and really restrain the success of entrepreneurs like yourself. And so next time someone asks you to stand up for a cause that's not really connected to your main focus. Ask yourself what those implications are down the line of adding the additional need of the government, the additional burden of another industry or another complexity. And then, last but not least, we started down this path with a lot of naysayers in the neighborhoods, in the city and in the state. And you've done an excellent job changing their minds. But those naysayers started to open their minds only because, at least in my conversations, well, I'm really against it. But if they're going to tax it and it can pay for our park programs, then I'm okay with it. But now that you've established yourself, we can work towards that. So I know that it's frustrating to have the tax rates as they are today, but know that we might not have gotten to where we are today without them. And so we are here to walk that path with you and help guide you through, because each and every one of our communities is very different. And we need to get enough consensus among all of our neighbors to make sure that you're successful. So thank you for your partnership. Thank you for your feedback. And let's work together at the federal level to advocate for what you believe in that could really help all of us. And then let's also talk a lot more about putting significant funding into the enforcement of significant penalties to illegal dispensaries. Until we do that, I can't tell you how many meetings I've been out with the BCA members or one off here or one of their. I consistently ask, how much have you advocated for LAPD, LBP, the DEA, FBI, all these organizations to come together and rid the cities of illegal dispensaries? Long Beach has done an excellent job, but that doesn't mean that the drugs aren't still flooding into our communities through non dispensary distribution methodologies. And the reason that that happens is because of relationships and you guys are breaking some of those relationships. Some people have had relationships with their dealers for decades. And until you are out there telling them about the alternatives and the safety associated with all the components that are very expensive, and they see a friend who got something that was laced and had a really bad outcome. Those stories help bring people in to the authorized market. And we're here to help you with that because we don't want to see people on the illegal market either. So thank you for all that you're doing to help eliminate the illegal market. But also let's work towards legalizing at the federal level so that each and every one of you can benefit from that as well. Thank you.
Speaker 0: Thank you, Councilwoman Ciro.
Speaker 8: Yeah. I just wanted to verify if I had to make a friendly amendment to ensure that there is an addition to doing the review feasibility of the three or four sorry, four or five 6% review or is, is or is it noted as a request.
Speaker 1: So in reading the spirit of the Room, I think you do want to look at different options. So unless we hear any objection to that in there, we're going to go ahead and do that. Part of our analysis that was part of our plan is to bring you back a full package of what happens to the best of our knowledge if we look at different variables.
Speaker 7: Okay.
Speaker 0: Thank you. There's a motion. There's a motion and a second. Members, please go and cast your votes.
Speaker 2: Motion is carried.
Speaker 0: Thank you. We have we have item. The last cannabis item is number 20. Or is it here whether it is 33?
Recommendation to request City Manager to prepare a report exploring the feasibility of reducing the City’s adult-use cannabis retail tax rate to align with the medicinal cannabis retail tax rate within 90 days, and submit the findings to the Budget Oversight Committee and then the Economic Development and Finance Committee for discussion.