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Exhibit CC 01-19-2016 Item No. 12 Marijuana Presentation and Written CommunicationMedical Marijuana Safety and Regulation Act (AB 243, AB 266, SB 643) Effective January 1, 2016 AB 243: Establishes CA Department of Food and Agriculture (DFA) as licensing and regulatory authority for medical marijuana cultivation. DFA to work with other state agencies to develop environmental protection standards, CA Department of Pesticide Regulation to establish medical marijuana pesticide standards, and CA Department of Public Health to create standards for labeling of marijuana edibles. AB 266: Establishes Bureau of Medical Marijuana Regulation within Department of Consumer Affairs (DCA) Develop regulations and issue state licenses for medical marijuana dispensaries, distributors, and transporters. SB 643: Standards for physicians that recommend medical marijuana, including discipline for physicians who recommend excessive amounts. Why Update the Municipal Code? Currently Medical Marijuana Uses are Prohibited BUT with new laws: If a city does not have land use regulations or ordinances "prohibiting the cultivation of marijuana, either expressly or otherwise through permissive zoning, or chooses not to administer a conditional permit program ... then commencing March 1, 2016, the (state) division shall be the sole licensing authority for medical marijuana cultivation applicants ..." (AB 243) Out of jurisdiction dispensaries can only deliver to cities without an express ban (AB 266) Updating Municipal Code preserves local control on marijuana issues Proposed Ordinance Preserves status quo on land use regulations Prohibits: Medical marijuana dispensaries, Cultivation, Deliveries, and Commercial cannabis activities Exclusions: “Qualified Patient” cultivating and transporting for personal medical use (NOT for any other person); “Primary caregiver,” delivering or transporting for purposes of no more than five specified “qualified patients,” (operating in compliance with State Law) Licensed clinic, hospice, health care facility, residential care facility which are excluded from state law Legal Basis Ban on Medical Marijuana dispensaries and facilities: CA Supreme Court ruled that Compassionate Use Act (Prop. 215) and the Medical Marijuana Program Act of 2004 do not preempt: Complete and permanent ban on medical dispensaries, collectives and cooperatives by local jurisdictions Cities not required to accommodate medical marijuana facilities in any way Ban on cultivation activities: AB 243 expressly permits cities to enact a ban CA Court of Appeal has upheld a ban in Maral v. City of Live Oak (2012) Urgency Ordinance Establishes a Moratorium on: Medical Marijuana Dispensaries Marijuana Cultivation Facilities Commercial Cannabis Activities Medical Marijuana Deliveries Effective immediately until the Ordinance changes take effect Ordinance amendment would take effect March 3, 2016 Negative Secondary Effects Many cities have experienced negative secondary effects including: Unsafe construction and electrical wiring Noxious fumes and odors Increased crime in and around marijuana establishments Diversion of medical marijuana to minors for recreational use Environmental Assessment Not subject to CEQA since it is not a project under Section 15378 of CEQA If it is found to be a project under CEQA then, it can be exempted since it can be seen with certainty to have no possibility of a significant effect on the environment Recommendation The Planning Commission recommends (4-0) that the City Council enact an Ordinance amending Section 19.08.030 and adding Chapter 19.98 of the Cupertino Municipal Code regarding medical marijuana dispensaries, cultivation facilities, commercial cannabis activities and medical marijuana deliveries. Staff also recommends enactment of the Urgency Ordinance to prohibit the cultivation, delivery and other commercial cannabis activities. “Commercial cannabis activity” [Ca. Bus. & Prof. Code §19300.5(k)] Proposed Ordinance refers back to the State’s definition “Commercial cannabis activity” includes cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, or sale of medical cannabis or a medical cannabis product, except as set forth in Section 19319, related to qualifying patients and primary caregivers. Other Local Jurisdictions Ban dispensaries Sunnyvale Mountain View Morgan Hill Los Gatos Saratoga Santa Clara Regulates Dispensaries and Cultivation San Jose, voters approved a tax Medical Marijuana California History In 1996, California voters approved Proposition 215 (The Compassionate Use Act) Exception from California criminal liability for “seriously ill” patients where a physician has determined that the person’s health would benefit Cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, migraine, “or any other illness for which marijuana provides relief.” In 2004, State legislature enacted the Medical Marijuana Program (MMP) Health and Safety Code §§11362.7 to 11362.83 Defines Qualified Patient Primary Caregiver Identification Card Serious Medical Illness Medical Marijuana Federal History Marijuana is a Schedule I Drug Controlled Substance Act No legal use October, 2009 Department of Justice (DOJ), Deputy Attorney General Ogden DOJ will not focus its enforcement resources on “individuals whose actions are in clear and unambiguous compliance with existing state law providing for the use of medical marijuana.” Proliferation of Dispensaries (Most notably Oakland) February, 2011 Melinda Haag, US Attorney for Northern District, Oakland’s large-scale industrial marijuana cultivation and manufacturing is not consistent with Federal Law. Medical Marijuana Federal History Federal Flip? June, 2011 (DOJ Deputy Attorney Cole) 2009 memo was never intended to shield large scale operations from criminal enforcement. Compliance with State and Local laws were no defenses to criminal prosecution. July, 2011 The DOJ, Drug Enforcement Agency, denied a request to reschedule marijuana from Class I to II or II. August, 2013 (DOJ Attorney Cole) Jurisdictions which have “strong and effective regulatory control and systems are in place to control cultivation, distribution, sale and possession of marijuana conducted in compliance with those laws and regulations is less likely to threaten federal priorities.” Future actions Does not prevent Council from acting in the future If City wants to exempt certain uses, like dispensaries or cultivation, it may want to also consider taking it to voters for tax January 19, 2016 To: City Council Members and to the City Planning Department From: Cathy Helgerson Regarding: Marijuana Resolution No. 6793 12. 1 Public Hearing -I am in favor of an Urgency Ordinance Amending the Cupertino Municipal Code to prohibit marijuana cultivation dispensaries, and deliveries and commercial cannabis activities within the City of Cupertino and agree with Resolution No. 6793. I am very disturbed with allowing people who get a medical marijuana card from the doctor for just about any reason and then they want to grow their own. They then may use it for their own use but they also sell the marijuana to minors double the price and are making a great deal of money from these sales. I believe that dying patients under the care of a hospice or doctor with proof of their condition can then prescribe marijuana but even then I am reluctant to totally agree with that allowance because it can be misused. Marijuana is a gateway drug and leads too many other drugs and it should not be considered to be anything less, it is damaging to the lives of people of any age who use this drug for any reason outside of a serious life threating disease. I would ask the City Council and Planning Department to prohibit any marijuana commercial businesses and/or dispensaries to locate within the City Limits. I also ask that you prohibit marijuana dispensaries, commercial cultivation or cultivation by primary caregivers as well. I further would like to see any marijuana only dispensed by a legal authorized doctor who has a license to do so by the State and Federal Governments. I also would like to see that these doctors are screened and that they are investigated periodically to make sure they are working under the strict laws governing marijuana prescription dispensing. I would like to change the ordinance if it could be possible to exclude primary care givers in making the decision to allow patients to use marijuana, because I feel that this drug should only be administered under a qualified doctor's care that has the right credentials by law. I seriously believe that because of this allowance by our Government that many times the delivery is not made to qualified patients. The marijuana is sold to normal people adults and teens because it is so easy to get. I know people with teens that can testify to this situation and that they are suffering from worry about their children. See 12 C White Papers -Marijuana dispensaries are commonly large money-making enterprises that will sell marijuana to most anyone who produces a physician's written recommendation for medical use. These recommendations can be had by paying unscrupulous physicians a fee and claiming to have most any malady, even headaches. While these dispensaries will claim to receive only donations, no marijuana will change hands without an exchange of money. These operations have been tied to organized criminal gangs, foster large grow operations, and are often multi-million-dollar profit centers. There are also many crimes committed under the sale and use of marijuana which even involve crimes of murder. There is a great deaf of information offered under 12 C White Papers all issues are true and I ask that The City Council look to keep drugs out of the hands of the general public and out of the hands of our children. I would suggest that people read the Issues Surrounding Marijuana in Santa Clara County by the Office of the District Attorney which is very alarming and we the people should be very worried about the future of our children we need to protect them. I would like to see the City of Cupertino, City Planning Department, Fremont Unified School District Administrators, De Anza College Administration, Sherriff s Department, and the Santa Clara County use all there power and keep drugs away from our children and the citizens. I have read that the City of Cupertino can change this ordinance in later years and would hope and pray that you never happen and that they will impose stronger ordinances in the coming years. I also would like to mention that there needs to be strong opposition to any formal State or Federal Legalization to legalize Marijuana. Thank you, Cathy Helgerson