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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />June 26, 2017 <br /> <br />SUBJECT <br />Receive presentation on California Cannabis Legislation and Provide Direction on <br />Proposed Actions for Redwood City <br /> <br />RECOMMENDATION <br />Review the information provided in this staff report regarding recent California cannabis <br />legislation and its implications for local agencies, discuss the various options and staff <br />recommendations presented, and provide direction to staff <br /> <br /> <br />BACKGROUND <br /> <br />Existing California State Cannabis Regulatory Framework – Medical and Recreational <br /> <br />In 2015, the California State Legislature passed the Medical Cannabis Regulation and <br />Safety Act (MCRSA). MCRSA established a state licensing and regulatory framework <br />for the cultivation, manufacture, transportation, storage, distribution and sale of medical <br />cannabis. MCRSA requires applicants to have a local permit in order to obtain a state <br />license to engage in medical cannabis business. <br /> <br />On November 8, 2016, voters passed Proposition 64, the Control, Regulate, and Tax <br />Adult Use of Marijuana Act (AUMA). AUMA legalizes recreational cannabis use by <br />adults age 21 and over, authorizes cultivation of up to six plants for personal <br />consumption, and establishes a new state licensing and regulatory framework for the <br />cultivation, manufacture, transportation, storage, distribution, sale and taxation of <br />recreational cannabis. Proposition 64 was supported by 66.2 percent of Redwood City <br />voters, and by 63 percent of voters in San Mateo County. <br /> <br />AUMA’s provisions legalizing consumption of cannabis and allowing personal cultivation <br />took effect the day after the election. Under AUMA, smoking of cannabis is prohibited <br />where the smoking of tobacco is prohibited. In Redwood City, smoking is prohibited in <br />all enclosed public places within the City. AUMA provisions legalizing recreational <br />cannabis businesses will not be operational until the State begins issuing licenses. The <br />State is expected to begin issuing licenses by January 1, 2018. <br /> <br />While MCRSA requires applicants to have a local permit in order to obtain a state <br />license to engage in medical cannabis business, AUMA does not require applicants to <br />8.B. - Page 1