City Government

Ushering in new Hayward cannabis industry

August 14, 2018

Cannabis Flower

The City has completed issuing a first round of commercial cannabis permits to 15 companies for cannabis cultivation, testing laboratories, manufacturing, distribution, delivery and retail sales in Hayward.

In October 2017, the City Council passed legislation establishing a competitive evaluation process with criminal background investigations for the local permitting of commercial cannabis businesses.

The legislation followed state voter approval in November 2016 of California Proposition 64, legalizing adult use of marijuana.  In the same Nov. 8, 2016, election, Hayward voters approved Measure EE, authorizing a local tax of up to 15 percent on recreational and medical cannabis sales.  Earlier this year, the Council set the cannabis business tax at six percent of gross receipts.

Before any of the 15 permitted cannabis businesses can begin to operate the city, however, they first will have to secure locations and appropriate land-use approvals through the city’s conditional use permit process.

Residents can anticipate the first of the cannabis businesses—including up to three retail dispensaries—to start operating in the first half of 2019.  To view online maps of locations where specific types of cannabis businesses could be permitted to operate, visit the City of Hayward website here.