Laserfiche WebLink
have a local permit in order obtain a state license to engage in recreational cannabis <br />business. Under AUMA, a state license can be issued unless prohibited by a local <br />ordinance. Accordingly, local jurisdictions that wish to regulate or prohibit recreational <br />cannabis businesses should do so before the State begins issuing licenses, either by <br />enacting a recreational cannabis ordinance or by amending an existing medical <br />cannabis ordinance (or other medical cannabis regulation) to include recreational <br />cannabis within its scope. <br /> <br />Presently, Redwood City’s only regulation addressing cannabis-related activity is to <br />prohibit medical cannabis distribution facilities in all zoning districts (see Zoning <br />Ordinance Article 59). Delivery of medical cannabis is allowed, and is not subject to City <br />business licenses obligations or any local taxes. City staff requested, from its sales tax <br />consultant, a list of medical cannabis businesses that might deliver to Redwood City <br />customers within a fifty-mile radius (Attachment 1); this produced a list of 48 potential <br />medical cannabis delivery businesses in the region. The City currently has no way of <br />tracking these businesses and their possible deliveries to Redwood City addresses. <br /> <br />Recent Change to California State Cannabis Regulatory Framework <br /> <br />On June 15, 2017, the California Legislature adopted its FY 2017-18 State Budget <br />package. The package included a cannabis trailer bill. The bill incorporates numerous <br />amendment requirements that the League of California Cities (LOCC) and the California <br />Police Chiefs Association supported. The bill reconciles differences between AUMA and <br />MCRSA and creates one regulatory system for all commercial cannabis activity, called <br />the “Medicinal and Adult-Use of Cannabis Regulatory and Safety Act.” The bill alters the <br />structure of the cannabis industry and the responsibilities of various state and local <br />agencies. For example, the bill requires local jurisdictions to provide State licensing <br />agencies with a copy of any ordinance or regulation related to commercial cannabis <br />activity and a contact to serve as a liaison between the state licensing entities and the <br />local jurisdiction, and outlines a process by which locals and the state licensing <br />authorities will communicate regarding an applicant for licensure. Notably, the bill <br />clarifies that the state regulatory structure does not limit the authority of local agencies <br />under any provision of law, including Section 7 of Article XI of the California <br />Constitution. <br /> <br />Federal Cannabis Regulatory Framework <br /> <br />There remains significant uncertainty surrounding California’s cannabis legislation in <br />light of the fact that possession and use of cannabis remains illegal under federal law. <br />Under the Obama administration, the U.S. Department of Justice chose not to <br />prosecute most cannabis users and businesses that follow state and local cannabis <br />laws, if those laws were consistent with federal priorities such as preventing cannabis <br />from being taken across state lines into jurisdictions where it is illegal. However, this <br />federal policy could change in the future. While President Donald Trump has voiced <br />support for medical cannabis in the past, U.S. Attorney General Jeff Sessions recently <br />directed the Justice Department to evaluate its cannabis enforcement policy. Congress, <br />8.B. - Page 2