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City of San Leandro <br />Meeting Date: June 19, 2017 <br />Staff Report <br />Agenda Section:File Number:17-219 PUBLIC HEARINGS <br />Agenda Number:5.A. <br />TO:City Council <br />FROM:Chris Zapata <br />City Manager <br />BY:Cynthia Battenberg <br />Community Development Director <br />FINANCE REVIEW:Not Applicable <br />TITLE:Staff Report for an Ordinance Amending Zoning Code Article 3, Definitions; <br />Article 6, Commercial and Professional Districts; Article 7, Industrial Districts; <br />and Article 16, Non-Residential Districts, Involving Updates to Definitions and <br />Regulations Enabling Cannabis Product Manufacturing and Laboratories, and <br />a Resolution Adding Title 5, Chapter 6 to the Administrative Code to identify a <br />pilot program for Cannabis Product Manufacturing applications. <br />SUMMARY AND RECOMMENDATIONS <br />Staff requests the City Council consider a proposed Ordinance to enable Cannabis Product <br />Manufacturing and Laboratories and a concurrent Resolution containing Administrative Code <br />provisions for a new pilot program for Cannabis Product Manufacturing applications. The <br />purpose of the proposed changes are to enable cannabis manufacturing and cannabis testing <br />laboratories as conditionally permitted uses and to establish a pilot program placing limitations <br />on the total number of cannabis manufacturing use permits allowed. Staff and the Planning <br />Commission recommend City Council approval of the proposed ordinance. Staff also <br />recommends City Council approval of the proposed Resolution to amend the Administrative <br />Code. <br />BACKGROUND <br />Three assembly bills that passed in 2015 (Assembly Bills 243 and 266, and Senate Bill 643) <br />established the state-level licensing and regulatory framework for medical cannabis as well as <br />the new California Bureau of Medical Cannabis Regulation. The Bureau is responsible for <br />developing regulations and issuing licenses at the State level for the cultivation, manufacture, <br />distribution, laboratory testing, and public sale of medical cannabis. Following the passage of <br />the Adult Use of Marijuana Act as part of the November 2016 ballot, this state agency will be <br />charged with regulating non-medical cannabis businesses as well. All businesses involving <br />the use of cannabis will be required to obtain both a City permit and a State license in order to <br />operate. This proposed Ordinance and pilot program will operate in conjunction with the new <br />State-level cannabis licensing regulations. <br />Page 1 City of San Leandro Printed on 6/13/2017 <br />16