S. 15-2026 - Enact 129.65 Host Community Cannabis Fund

DocusignEnvelope ID: 1B3BA249- 3AEF- 8342- 80B4- CFC95035B7E6 1st read & referred to Finance 2/ 2/ 26; 2nd reading 2/ 17/ 26 Please substitute for the original ORDINANCE NO. 15- 2026 BY: Bixenstine, Bullock, Evans, Kepple, Steiner AN ORDINANCEto take effect immediately provided it receives the affirmative vote of at least two thirds of the members of Council, or otherwise to take effect and be ill force at the earliest period allowed by law to enact Section 129. 65 of the Lakewood Codified Ordinances entitled Host Community Cannabis Fund, to provide guidance regarding the use of new tax revenues related to the sale of cannabis. WHEREAS, in 2024 through Ordinance No. 41- 2024 the City of Lakewood enacted legislation authorizing the sale of adult use cannabis within the City of Lakewood with the explicit understanding that the City of Lakewood would be provided with 3.6 percent of the 10 percent tax levied by the State of Ohio on all cannabis sales within the City of Lakewoodby way of a host community fund; WHEREAS, some debate occurred in the state legislature regarding a potential reallocation of anticipated host community fund dollars for other purposes, but the state legislature ultimately kept the host community fund intact by enacting O. R.C. Section 3796.40 entitled Excise Tax on Sale of Adult -Use Marijuana; and WHEREAS, O.R. C. Section 3760. 40 provides that 3.6 percent of the 10 percent tax will go to the host community cannabis fund, which is created in the state treasury, for the benefit of cities that have at least one licensed dispensary, such as the City of Lakewood. Distributions to such cities shall be based on the portion of the tax levied attributable to each city. It further provides that cities receiving funds under this division may use such funds for any lawful purpose; and WHEREAS, O. R.C. Section 3760.40 further provides that the tax commissioner shall make these distributions by the end of each month based on tax collections from the preceding month; and WHEREAS, as set forth in Section 2. 12 of the Third Amended Charter of the City of Lakewood, this Council by a vote of at least two thirds of its members determines that this ordinance is an emergency measure and that it shall take effect immediately, and that it is necessary for the immediate preservation of the public property, health, and safety and to provide for the usual daily operation of municipal departments; now, therefore, BE IT ORDAINED BY THE CITY OF LAKEWOOD, OHIO: Section 1. That new Section 129. 65, Host Community Cannabis Fund, of the Lakewood Codified Ordinances is hereby enacted to read as follows: a) Establishment. There is hereby establisheda Fund which shall be known and referred to as the Host Community Cannabis Fund. The Director of Finance is hereby authorized and directed forthwith to take such action and to make such records as may be necessary to establish the Host Community Cannabis Fund and thereafter to show its existence and condition at all times upon the proper records of the City.

Docusign Envelope ID: 1 B3BA249-3AEF-8342- 80B4- CFC95035B7E6 b) Money for Host Community Cannabis Fund. There shall be paid directly into the Host Community Cannabis Fund, when and as received, all money received by the City of Lakewood pursuant to the Host Community Fund established under O.R.C. 3796. 40, from any precursor statute that allowed and collected such tax, from any future funding received from the state for the sale of adult - use cannabis, the community impact fee ( if triggered) identified Chapter 779 of the Lakewood Codified Ordinances, and all money appropriated to the Host Community Cannabis Fund by Council from whatever source acquired. c) Authorized Expenditures. The Host Community Cannabis Fund shall be used only for the expense of public health and safety related issues within the City of Lakewood, including Complete Streets, ADA Transition Plan, and Lakewood Community Health Needs Assessment and Lakewood Action Plan implementation, and other capital improvements and operations related to accessibility, equity and wellness. d) Custody of Host Community Cannabis Fund. The Director of Finance shall have possession and custody of the Host Community Cannabis Fund and the supervision of all accounts with respect thereto. No further bond shall be required of the Director of Finance because of the Host Community Cannabis Fund, but the Host Community Cannabis Fund shall be under the protection of any bond that may be given hereafter by the Director of Finance. Section 2. It is found and determined that all formal actions of this Council concerning and relating to the passage of this ordinance were adopted in an open meeting of this Council, and that all such deliberations of this Council and of any of its committees that resulted in such formal action were in meetings open to the public in compliance with all legal requirements. Section 3. This ordinance is hereby declared to be an emergency measure necessary for the immediate preservation of the public peace, property, health, safety and welfare in the City and for the usual daily operation of the City for the reasons set forth and defined in the preamble to this ordinance, and provided it receives the affirmative vote of at least two thirds of the members of Council, this ordinance shall take effect and be in force immediately upon its adoption by the Council and approval by the Mayor, or otherwise it shall take effect and be in force after the earliest period allowed by law. Adopted: April 6, 2026 Approved: q I r / xe DocuSlgned by: Sarah Kepple, President of Council DocuSlgned by: Maureen M. Bach, Clerk of Council ajos:= -- t! 4 - Megha n F. George, Mayor