AgdaPkt 2018-07-23 Joint SA PFA - Laserfiche WebLink

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6A.D. - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager July 23, 2018 SUBJECT Ballot measure to impose a cannabis business tax by adding Article XI to Chapter 32 of the City of Redwood City Municipal Code, Subject to Voter Approval RECOMMENDATION Adopt a resolution calling an election to be consolidated with the General Municipal Election and Statewide General Election on November 6, 2018, and submitting the proposed cannabis business tax as a ballot measure to the voters at that election BACKGROUND Medical cannabis use has been legal in California since 1996. On November 9, 2016, adult use of cannabis by persons 21 or over became legal in California. In June 2017, California enacted the Medicinal and Adult Use Cannabis Regulation and Safety Act (MAUCRSA), which consolidated the state regulatory and licensing framework for medical and adult -use cannabis. In November 2017, the state's emergency regulations addressing commercial cannabis activity went into effect. These state regulations affect commercial cannabis activity and include a variety of licensing, operation, and business location requirements. On January 1, 2018, the state began issuing state licenses allowing businesses from which adults 21 or over could purchase cannabis. On October 23, 2017, the City Council introduced updated cannabis regulations and approved a phased approach to implement local medical and adult use cannabis regulations. On May 7, 2018, the City Council adopted an Ordinance to amend Article 59 of the Redwood City Zoning Ordinance — Cannabis Cultivation and Commercial Cannabis Activity and an Ordinance adding Division 7 to Article V of Chapter 32 of the Municipal Code relating to Regulations of Cannabis Businesses. These Council actions allow the following cannabis business activities in Redwood City: • Commercial cannabis delivery centers, with storage of cannabis and sales conducted exclusively by delivery, and