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City of San Leandro <br />Meeting Date: June 15, 2020 <br />Staff Report <br />Agenda Section:File Number:20-251 ACTION ITEMS <br />Agenda Number:10.A. <br />TO:City Council <br />FROM:Jeff Kay <br />City Manager <br />BY:City Council <br />FINANCE REVIEW:Liz Warmerdam <br />Interim Finance Director <br />TITLE:Update from the Alameda County Fire Department Regarding the Timothy Drive <br />Fire and Staff Report for City Council Discussion and Direction Regarding City of <br />San Leandro's Type 7 Cannabis Product Manufacturing Regulations <br />SUMMARY AND RECOMMENDATIONS <br />Per the request of the City Council at the May 18, 2020 City Council meeting, staff presents the <br />following information regarding the City’s Type 7 cannabis product manufacturing regulations and <br />seeks policy direction regarding the status of the program. <br />BACKGROUND <br />Three legislative bills that passed in 2015 (Assembly Bills 243 and 266, and Senate Bill 643) <br />established the state-level licensing and regulatory framework for medicinal cannabis. These <br />laws, along with the subsequent passage of the Adult Use of Marijuana Act via Proposition 64 in <br />2016, designated three State agencies with the responsibility to regulate both adult-use and <br />medicinal cannabis businesses throughout the State of California. Those agencies include: the <br />California Bureau of Cannabis Control (which primarily regulates retailers, distributors and testing <br />laboratories), the California Department of Public Health (which regulates cannabis <br />manufacturing businesses), and the California Department of Food & Agriculture (which regulates <br />cannabis cultivation). <br />In addition to the above State agencies, State law has created a “dual licensing structure” that <br />requires cannabis businesses to secure local permits from the municipalities in which they are <br />seeking to operate. As such, all cannabis businesses in California are required to obtain permits <br />from both the City as well as the State in order to operate legally. <br />San Leandro’s local regulations presently authorize three types of cannabis businesses: retail <br />dispensaries (capped at no more than three in total), cannabis testing laboratories, and cannabis <br />product manufacturers. These latter two business types were authorized by the City Council <br />Page 1 City of San Leandro Printed on 6/10/2020 <br />795