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City of San Leandro <br />Meeting Date: February 19, 2019 <br />Presentation <br />Agenda Section:File Number:19-083 PRESENTATIONS <br />Agenda Number:4.B. <br />TO:City Council <br />FROM:Jeff Kay <br />City Manager <br />BY:City Council <br />FINANCE REVIEW:Not Applicable <br />TITLE:Presentation Regarding Potential Approval of Retail Sales of Cannabis for Adult <br />Use at San Leandro Cannabis Dispensaries <br />SUMMARY AND RECOMMENDATIONS <br />Consistent with the City Council’s request at its January 7, 2019 City Council meeting and <br />February 2, 2019 City Council planning session, staff requests that the Council consider the <br />analysis presented in this report and provide direction regarding whether to develop <br />modifications to the medical cannabis dispensary ordinance to allow adult use (i.e. <br />non-medicinal) sales at the City’s three permitted dispensaries. <br />BACKGROUND <br />Since the passage of Proposition 2015 in 1996, medical cannabis has been legal in California <br />longer than virtually anywhere else in the United States. Nevertheless, prior to the passage of the <br />Medical Cannabis Regulation and Safety Act (MCRSA) in 2015, California lacked <br />comprehensive statewide cannabis regulations. With the passage of MCRSA, California <br />launched a comprehensive statewide regulatory framework for the cultivation, production, <br />transportation and sale of medicinal cannabis throughout the state, to be overseen by a new <br />statewide bureau, now known as the California Bureau of Cannabis Control. In November 2016, <br />Proposition 64, also known as the Adult-Use of Marijuana Act or “AUMA”, was passed by 57% of <br />statewide voters and 60% of San Leandro voters. Among its various provisions, AUMA <br />established a new licensing and taxation scheme for the non-medicinal or “adult use” of cannabis <br />in California. <br />In an effort to reconcile the various sets of overlapping regulations between the existing medical <br />and emerging adult use markets, on June 27, 2017, the State of California enacted the Medicinal <br />and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”). MAUCRSA consolidated the <br />regulation of commercial medical and adult use cannabis activities. <br />Page 1 City of San Leandro Printed on 2/13/2019