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incorporated certain provisions of the MCRSA into the licensing provisions of the <br />AUMA, and consolidated the state regulatory and licensing framework for medical and <br />adult use cannabis. The consolidated provisions are known as the Medicinal and Adult - <br />Use Cannabis Regulation and Safety Act (MAUCRSA). <br />Under MAUCRSA, a local jurisdiction may reasonably regulate, but cannot ban, <br />personal cultivation of up to six cannabis plants within a single private residence. A <br />local jurisdiction may ban or regulate personal outdoor cultivation. Further, a local <br />jurisdiction may ban or regulate all commercial cannabis activities, except for the lawful <br />transportation of cannabis or cannabis products on public roads. <br />The State has indicated that it will begin issuing licenses to medical and adult use <br />cannabis businesses on January 2, 2018. Accordingly, local jurisdictions that wish to <br />regulate or prohibit cannabis businesses should do so before the State begins issuing <br />licenses. <br />The State is currently developing emergency regulations under MAUCRSA to be in <br />place by January 1, 2018. The Bureau of Cannabis Control has issued an Initial <br />Study/Negative Declaration, which outlines their proposed emergency regulations. An <br />excerpt from that document with the proposed regulations for the retail cannabis <br />licenses is included as Attachment B. <br />In general, the State regulations will detail which activities are allowed for each type of <br />licensee (i.e. retail vs. manufacturing). For example, retail and microbusiness licenses <br />are expected to be the only types that can deliver cannabis to customers. In addition, <br />some of the proposed regulations for retail licensees include: <br />• Only employees of licensed retailers who are aged 21 years and older will be <br />able to make deliveries <br />• Vehicles used for delivery must have a dedicated, active GPS device <br />• Delivery employees will be limited in the amount of cannabis goods that they can <br />carry at any time <br />• Businesses will be required to have video surveillance and alarm systems in <br />place to ensure security on site <br />These regulations are in addition to those outlined in MAUCRSA itself including the <br />requirement that no licensed facility may locate within 600 ft. of a school, day care or <br />youth center. <br />Cannabis Taxation <br />The State excise tax of 15% on gross retail receipts of cannabis goes into effect on <br />January 1, 2018. After reimbursing State agencies for the costs of regulation and <br />implementation, the remaining revenues from this tax will go into the California <br />Cannabis Tax Fund. <br />K <br />