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however, continues to limit the Attorney General’s ability to interfere with state medical <br />cannabis laws by including provisions in government funding and budget bills that <br />prevent the Justice Department’s funding from being used to prevent a state from <br />implementing its own laws that authorize the use, distribution, possession or cultivation <br />of medical cannabis. Ultimately, how the current Justice Department will handle federal <br />cannabis enforcement policy as pertains to recreational cannabis remains to be seen. <br /> <br />Potential Countywide Cannabis Regulatory Framework <br /> <br />The Board of Supervisors for the County of San Mateo has recognized the potential <br />benefits of considering cannabis regulation and/or taxation on a regional (county-wide) <br />basis. To that end, the Board placed a temporary ban on cannabis-related businesses <br />and directed County staff to work with local cities to consider a regional, coordinated <br />effort and response to AUMA. The County has convened four working groups on <br />cannabis issues. Redwood City staff has attended each working group meeting, <br />although the working groups haven’t been as proactive as Redwood City staff had <br />originally anticipated. <br /> <br /> <br />ANALYSIS <br /> <br />The City has several options for regulating cannabis cultivation, cannabis-related <br />business activity, and fees and taxes charged in connection with cannabis-related <br />activity. The City may also modify local tobacco smoking ordinances, which would also <br />apply to cannabis smoking. Depending on the approach taken, the City may: <br />· Incur new staff obligations for regulation, inspection and enforcement; once such <br />approaches are in place, ongoing costs potentially could be recovered through <br />fees but the effort required to develop regulations and inspection and <br />enforcement protocols would require prioritizing this initiative over other City <br />priorities for staff time. <br />· Be eligible (but not guaranteed) to receive State grants for law enforcement, fire <br />protection, or other local programs addressing the public health and safety <br />impacts of cannabis. This would only occur if the City did not prohibit cultivation <br />and retail sale of cannabis within the City. <br />· Be able to generate revenue through application of the City business license to <br />medical and/or recreational cannabis activity. <br />· Be able to generate revenue through a voter-approved sales tax on recreational <br />cannabis activity. <br /> <br />These options are further described below. Staff also provides a recommended <br />approach for the City Council’s consideration, including community outreach, as very <br />little input has been received to date from the community or from cannabis-related <br />businesses. This approach was developed based on staff’s understanding of issues that <br />have arisen in other states and communities related to medical and recreational <br />8.B. - Page 3