REPORT TO COUNCIL
SUBJECT
Title
Commercial Cannabis Policy Implementation Update
Report
BACKGROUND
The passage of Proposition 64, the Adult Use of Marijuana Act (AUMA), on November 8, 2016, legalized personal recreational use by persons 21 and over, and regulated commercial activities related to cannabis. Subsequently, the State legislature passed Senate Bill 94, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), unifying regulations on medical and non-medical commercial cannabis activities and the personal use of cannabis.
As of January 2018, State of California (State) licensing of commercial activity is overseen by the Bureau of Cannabis Control, the Department of Public Health, and the Department of Food and Agriculture. State regulations allow for six general license types for commercial cannabis enterprises: retail (including delivery); cultivation; manufacturing; transportation; distribution; and testing. Prior to the issuance of a State license, the State requires, among other items, a local license if local regulations have been enacted.
In the interest of expanding revenue opportunities for the City, in 2017, Council directed staff to prepare cannabis regulations for future Council consideration and a corresponding fee and tax strategy for commercial cannabis activity. In addition, the Council approved a moratorium on commercial cannabis activity in order to allow for the development of local regulations. The temporary ban on all commercial cannabis activities in Santa Clara is currently in effect until June 30, 2019.
On December 19, 2017, Council approved an agreement with SCI Consulting Group (SCI) to assist the City with the development of commercial cannabis regulations together with a cost-recovery fee and tax strategy.
In early 2018, SCI and staff held community meetings and stakeholder meetings. Presentations to the public included information about the history of cannabis; the cannabis industry; State of Californ...
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