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CC Exhibit Item No. 14 MCA-2017-04 CC Hearing PresentationRegular Ordinance –MCA-2017-04 City Council –December 5, 2017 Medicinal and Adult Use Marijuana MEDICINAL AND ADULT USE MARIJUANA MCRSA Medical Cannabis Regulation and Safety Act (“MCRSA”) (Sept. 2015) (AB243, AB266 and SB643) •Established licensing requirements for medical marijuana City’s Medical Marijuana Ordinance adopted Jan 2016: •Dispensaries and commercial businesses –prohibited •Cultivation: –Commercial –prohibited –Personal –limited to qualified patients •Transportation and delivery –limited to: –Qualified patients or –Qualified caregivers carrying for/to their qualified patients MEDICINAL AND ADULT USE MARIJUANA PROPOSITION 64 OR AUMA Prop. 64 or the Control, Regulate and Tax Adult Use of Marijuana Act (“AUMA”) passed November 2016: •Decriminalized non-medical marijuana use, personal cultivation, and commercial facilities and businesses •Established licensing and regulatory framework •Allowed local land use control over commercial operations •Some portions of Prop. 64 (such as personal use and cultivation) went into effective immediately City adopted Urgency Ordinance in October 2016 and extended urgency in Nov. 2016 and Sept. 2017 MEDICINAL AND ADULT USE MARIJUANA MAUCRSA In Jun 2017, Gov. Brown signed the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”): •New, more operator-friendly, hybrid regulatory structure –Repealed MCRSA (medical marijuana regulations) and –Incorporated some of its provisions into licensing provisions of AUMA (adult use/recreation marijuana regs) •Established Bureau of Cannabis Control (BCC) MEDICINAL AND ADULT USE MARIJUANA BUREAU OF CANNABIS CONTROL BCC charged with developing and implementing regulations for issuing licenses Anticipated that licensing will start on January 2, 2017 BCC has indicated that cities should submit ordinances to avoid having licenses issued inadvertently Therefore, regular ordinance proposed MEDICINAL AND ADULT USE MARIJUANA PLANNING COMMISSION REVIEW On November 14, 2017, Planning Commission recommended approval on a 4-0-1 (Sun absent) with: Amendment to disallow recreational deliveries Request to present options on registration for personal indoor cultivators to Council MEDICINAL AND ADULT USE MARIJUANA PROPOSED REGULATIONS Changes include: Prohibit: All commercial activities for both medicinal and adult use marijuana Outdoor personal cultivation Allow Transport through the City: Trip may not originate in City unless exempted under state law Deliveries of marijuana By licensed operators and MUST originate outside City Indoor personal cultivation subject to regulations MEDICINAL AND ADULT USE MARIJUANA PROPOSED REGULATIONS Regulations re: Indoor Personal Cultivation include: Limitations on number –6 allowed by State Law Use must be incidental Allowed only on property that is primary residence of person cultivating Renters must obtain permission before cultivating Inside main home or accessory structure All structures have to be secure, locked and fully enclosed No larger than 36 square feet measure by canopy or 10 feet in height No external evidence of cultivation can be visible Regulations regarding type of lighting and ventilation All alterations must comply with all muni codes etc. MEDICINAL AND ADULT USE MARIJUANA TITLE 19 CHANGES Elimination of definitions related to marijuana Repealing and replacing Chapter 19.98 to with a reference to the new marijuana regulations MEDICINAL AND ADULT USE MARIJUANA LAW ENFORCEMENT AND MARIJUANA SCC Sheriff’s Department shares concerns about secondary effects and increased adverse impacts Reported adverse impacts in state’s where marijuana has been legal include increased: number of impaired drivers, emergency room visits and traffic fatalities Usage among youth Potential for electrical fires MEDICINAL AND ADULT USE MARIJUANA PLANNING COMMISSION REVIEW Amend ordinance to only allow medicinal marijuana deliveries Hard to ascertain kind of delivery. Recommended that all deliveries be allowed so long as person has appropriate state licenses and trip does not originate in City. Options for registration by persons cultivating marijuana indoors for personal use Required by some cities. They also may allow commercial cultivation and operations. Helps justify cost of a registration and inspection process. Would have impacts to City budget. Concerns regarding the availability of such a database. Inspections for registered cultivators may not be effective. More likely people that do not register would be non-compliant. Not recommended at this time. NON-MEDICAL MARIJUANA URGENCY ORDINANCE NOTICING AND ENVIRONMENTAL REVIEW Noticing: •Legal and Display Ads •Public hearing notices/agenda on City website and at City Hall/Community Hall Environmental Review: •Not considered a project under CEQA (Section 15378) •Also, if found to be a project, exempt under CEQA (Section 15061(b)(3)) MEDICINAL AND ADULT USE MARIJUANA CONCLUSION If changes are not adopted, BCC may issue licenses as of January 2, 2018 for commercial activities within the City If Council desires to consider limited commercial activities or registration, recommended to adopt proposed regulations and evaluate impacts further prior to considering these. MEDICINAL AND ADULT USE MARIJUANA RECOMMENDATION That the City Council: Find that the proposed actions are exempt from CEQA; and Adopt an ordinance entitled “An ordinance of the City Council of the City of Cupertino adding Chapter 10.84 titled ``Medicinal and Adult Use of Marijuana” to Title 10 of the Cupertino Municipal Code; amending Section 19.08.030 to repeal Definitions related to Marijuana; and amending Chapter 19.98 to reference the newly adopted ordinance” NEXT STEPS Ordinance will need a second reading (Dec. 19, 2017) Ordinance effective 30 days after second reading Comparison of existing Medical Marijuana Ordinance and Proposed Regulations Medical Marijuana Ordinance Proposed Ordinance Dispensaries Prohibited Prohibited Commercial uses Prohibited Prohibited Cultivation Prohibited except for: Both indoor and outdoor cultivation by Qualified patient in compliance with state law Prohibited except for: Indoor ONLY for personal use in compliance with state law and additional regulations Transport Prohibited except for: Qualified patient for personal use Qualified caregiver for his/her qualified patient Allowed to the extent allowed by state law Delivery Prohibited except for: Qualified caregiver for his/her qualified patient Allowed by: Qualified caregiver for his/her qualified patient State licensed delivery person if trip does not originate within City