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File Number: 19-083 <br />The City of San Leandro also currently has in place its own set of local regulations for several <br />cannabis-related business activities, including the retail sale of medicinal cannabis, non-retail <br />cannabis manufacturing, and cannabis laboratory testing facilities. These San Leandro <br />regulations were developed and adopted prior to the enactment of any of the above-referenced <br />state regulations. Furthermore, because the City’s local ordinance was written before the <br />adoption of Proposition 64, the City’s local regulations did not specifically facilitate or envision the <br />retail sale of cannabis products for adult use. <br />Based on a request from the City Council at its January 7, 2019 regular meeting, as well as the <br />prioritized project list that was developed at the February 2, 2019 City Council Retreat, staff <br />seeks direction from the Council regarding whether to bring forward draft amendments to the <br />City's existing medical cannabis dispensary ordinance that would incorporate adult use/ retail <br />sales under one unified local ordinance. <br />Analysis <br />Although cannabis technically remains a Schedule I controlled substance under Federal law, there <br />have been a number of federal actions that have established autonomy at the State level to locally <br />regulate cannabis activities. For example, in 2013, the US Department of Justice issued a <br />document known as the Cole Memorandum, which effectively shifted federal enforcement <br />priorities away from strict enforcement of federal cannabis laws towards a more hands-off <br />approach in “jurisdictions that have enacted laws legalizing marijuana in some form and that have <br />also implemented strong and effective regulatory and enforcement systems to control the <br />cultivation, distribution, sale and possession of marijuana.” <br />Although the Cole Memorandum was subsequently rescinded by former US Attorney General Jeff <br />Sessions, the US Justice Department continues to exercise limited intervention in the 30+ states <br />that have now legalized either medical or adult use of cannabis. Furthermore, the Justice <br />Department’s ability to intervene in the local regulation of cannabis activities continues to be <br />constrained by recurring federal appropriations language enacted by Congress (formerly known <br />as the Rohrbacher-Farr and Rohrbacher-Blumenauer amendments), which explicitly prohibits <br />federal funds from being expended by the Justice Department to enforce federal law against <br />state-compliant medical cannabis activities. This amendment has been renewed and extended <br />multiple times since its initial adoption several years ago and most legal experts do not foresee <br />any substantial changes in federal enforcement activity as public sentiment, legislative activity and <br />election outcomes continue to move in the direction of legalization and robust State-level <br />regulation. <br />Adult-Use Implementation <br />Following the passage of Proposition 64, many jurisdictions throughout the State that only allowed <br />for the operation of medicinal cannabis related activities have transitioned into an adult use <br />framework. For example, staff identified the following nearby municipalities that adopted <br />regulations permitting adult use/non-medical retail sales of cannabis at dispensaries located in <br />their respective jurisdictions: <br />·City of Berkeley <br />·City of Emeryville <br />Page 2 City of San Leandro Printed on 2/13/2019