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1/25/2016 WHEREAS, in Maral v. City of Live Oak (2013) 221 Cal.App.4th 975, the Third District Court of Appeal held, based on Inland Empire, that there was no right to cultivate medical marijuana and that a city could implement and enforce a complete ban on this activity, including a ban on personal cultivation; and WHEREAS, on October 9, 2015, Assembly Bills 243 and 266 and Senate Bill 643 (collectively, the "Medical Marijuana Regulation and Safety Act" or "MMRSA") were enacted to create a state regulatory and licensing system governing the cultivation, testing, and distribution of inedical marijuana, the manufacturing of inedical marijuana products, and physician recommendations for medical marijuana. The new law also recognizes a range of inedical marijuana businesses referred to as "commercial cannabis activities," including cultivation businesses, marijuana product manufacturers, marijuana distributors and transporters, marijuana testing laboratories, and dispensaries, and provides immunity to marijuana businesses operating with both a state license and a local permit; and WHEREAS, while the new legislation expressly preserves local control over medical marijuana facilities and land uses, including the authority to prohibit all medical marijuana businesses and cultivation completely, newly-added Health & Safety Code section 11362.777(c)(4) provides that if a city does not have a land use regulation or ordinance regulating or prohibiting marijuana cultivation, either expressly or otherwise under principles of permissive zoning, or chooses not to administer a conditional permit program under that section, then commencing March 1, 2016, the state Department of Food and Agriculture will become the sole licensing authority for marijuana cultivation in that jurisdiction; and WHEREAS, the author of AB 243, which added Health & Safety Code section 11362.777(c)(4), has stated that this preemption provision was left inadvertently in the final version of AB 243 and introduced legislation to delete subdivision (c)(4) ; and WHEREAS, the clean-up legislation is pending, but it is not certain whether it will become effective prior to the March 1, 2016 deadline regarding marijuana cultivation, nor is it certain what the ramifications would be for a city that does not have a marijuana cultivation regulation or ordinance in place by that deadline; and WHEREAS, the City anticipates that MMRSA will encourage the establishment of marijuana cultivation sites and commercial cannabis activities throughout the State, including in Redwood City; and ATTY/ORD.420/MORATORIUM ON MARUUANA CULTIVATION FACILITIES Ord.2419 REV:01-21-16 RL FORMERLY MUFF#301 Page 2 of 7