Delivery Feasibility Study
The Long Beach City Council has requested staff conduct a study to determine the feasibility of allowing cannabis delivery businesses in Long Beach. A cannabis delivery (non-storefront retail) business sells cannabis goods to customers exclusively through delivery.
A delivery business must have a licensed premises to store cannabis goods for delivery, and shall not be open to the public. A delivery business can also use a technology platform to sell cannabis products to customers.
The Office of Cannabis Oversight has prepared the feasability analysis for licensing and regulating delivery-only businesses in Long Beach. The report will be presented to the City Council later this year. Read the complete report here.
Staff has drafted the feasibility report, including the community engagement report and jurisdictional research, to be released to the City Council in July 2021.
At the State level, a delivery only (non-storefront) license allows for the retail sale of cannabis and cannabis products directly to consumers through delivery if:
- The licensed retail business is closed to the public.
- Deliveries are made to a physical address in any jurisdiction within the California that is not on publicly owned land, a school, a daycare, or a youth center.
- Delivery employees must verify the age of the customer purchasing cannabis goods and prepare a delivery request receipt for each delivery of cannabis goods.
- Cannabis goods must comply with all packaging, labeling and exit packaging requirements.
- Delivery drivers must be employees of the business, no third-party deliveries are allowed.
- All cannabis goods have been obtained through a licensed distributor.
Delivery-only businesses can operate as a microbusiness if they intend to engage in at least three (3) commercial cannabis activities, as defined by the State of California. A licensed non-storefront retailer or licensed microbusiness who is not engaged in storefront retail sale is not required to hire or contract for security personnel.
*This is not a complete list of requirements for a delivery-only license and additional requirements may apply.
Delivery (non-storefront) businesses require less up-front capital to build out, given their smaller footprint compared to other license types and that they are not open to the public.
Providing this license type to equity applicants will decrease the barriers to entry into the cannabis industry, promote equity business ownership and access to the retail cannabis marketplace in Long Beach.
Survey - The Office of Cannabis Oversight prepared a survey that was posted to the City’s website on June 7th, 2021 and emailed directly to over 850 stakeholders. The survey closed on June 30, 2021 with 79 responses. Community input collected from the survey was included as an attachment to the Cannabis Non-Storefront Retail (Delivery) Feasibility Analysis that will be presented to the City Council. Read the complete report here.
Town Hall - The Office of Cannabis Oversight invited cannabis businesses, community members, and the public to attend a town hall meeting to share input about licensing and regulating delivery only businesses in Long Beach. Community input collected from the Town Hall was included as an attachment to the Cannabis Non-Storefront Retail (Delivery) Feasibility Analysis that will be presented to the City Council later this year.
Watch the June 16th, 2021 Town Hall Video Here.
To date, the City has taken the following actions regarding delivery:
- July 31, 2020 - Staff released a feasibility study to the City Council on delivery businesses
- August 5, 2020 - Staff released a memo to the City Council on equity business ownership opportunities, which included delivery.
- January 5, 2021 - The City Council voted to request staff to conduct a feasibility study on licensing and regulating delivery, including setting a cap on the number of licenses and creating a priority licensing process for equity applicants.
- January through May 2021 - Staff has been performing research and outreach to other cities regarding their delivery programs and conducting policy discussions with various City departments responsible for the licensing and regulation of cannabis facilities.
- June 7, 2021 – The City of Long Beach Delivery-Only Retail Survey became available. Community input collected from the survey was included as an attachment to the report that will be presented to the City Council later this year.
- June 16, 2021 - Staff hosted a Town Hall with members of the Long Beach community to solicit feedback on the delivery business type and increasing equity business ownership opportunities. Community input collected from the Town Hall was included as an attachment to the report that will be presented to the City Council. Watch the June 16th, 2021 Town Hall Video Here.
- May through August 2021 - Staff drafted the Delivery-Only Retail feasibility report.
- August 17, 2021 - The complete report was published to the MEMOS TO THE MAYOR AND COUNCIL web page.