CITY OF COMMERCEAGENDA REPORTCITY OF COMMERCEAGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
TO: Honorable City Council
FROM: City Manager
SUBJECT: Consideration of Letter of Opposition to AB 1186 (Wiener) Medicinal Cannabis Patients Right of Access Act Meeting Date: July 12, 2022
RECOMMENDATION:
The City Council will consider staff’s recommendation to authorize the issuance of a letter of opposition to AB 1186 (Wiener) Medicinal Cannabis Patients Right of Access Act.
BACKGROUND:
In September 2015, the State Legislature enacted three bills, AB 243, AB 266, and SB 643, together compromised the Medical Marijuana Regulation and Safety Act (MMRSA). It created a comprehensive dual state licensing system for the cultivation, manufacturing, retail, sale, transportation, distribution, delivery, and testing of medical cannabis.
In June 2016, SB 847, renamed MMRSA the Medical Cannabis Regulation and Safety Act (MCRSA). This made substantive changes to the applicable state laws, which affect the various state agencies involved in regulating cannabis businesses as well as potential licensees.
In November 2016, California voters approved the Control, Regulate and Tax Adult-Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64, established a comprehensive system to legalize, control, and regulates the cultivation, processing, manufacture, distribution, testing, and sale of nonmedical marijuana.
Under AUMA, local governments may completely prohibit any type of business licensed under the act; this includes medical marijuana facilities under Medical Marijuana Regulation and Safety Act (MMRSA). Additionally, AUMA reserved to a local jurisdiction specified powers regarding commercial adult-use cannabis activity, including adopting and enforcing local ordinances regulating commercial adult-use cannabis activity.
In 2017, Governor Brown signed Senate Bill 94, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). It combined elements of MCRSA and AUMA to establish a uniform licensing regime for both medical and adult-use cannabis. MAUCRSA consolidated the licensure and regulation of commercial medicinal and adult-use cannabis activities, as well as the retail sale of medicinal cannabis. Currently, there are a large number of licensed industry actors participating in the regulated cannabis in California: the Bureau of Cannabis Control (BCC), the California Department of Food and Agriculture (CDFA), and the California Department of Public Health (CDPH). These agencies outlined the standards and licensing procedures for both medicinal and adult-use commercial cannabis, and began issuing licenses on January 2018.
In December 2017, the City of Commerce adopted Interim Urgency Ordinance No. 691 establishing a temporary moratorium on all commercial cannabis related activities to comply with the State approved Legislature, MAURCRSA. The purpose of Urgency Ordinance No. 691 was to allow time to: study the negative direct and secondary impacts associated with adult-use cannabis, study and determine whether such uses should be allowed in the City and if so, declare appropriate regulations; and to study and determine the potential locations, zoning districts, or development standards that should be applied to adult-use cannabis.
In September 2018, the City of Commerce approved Ordinance No. 700 establishing commercial cannabis regulations and opened the submittal of Commercial Cannabis Permit (CCP) to allow for applicants to submit a formal request to be eligible to conduct cannabis related business in the City of Commerce.
ANALYSIS:
AB 1186 Medicinal Cannabis Patients Right of Access Act The proposed AB 1186 (Wiener) would prohibit a local jurisdiction from adopting or enforcing any regulation that prohibits the retail sale by delivery within the local jurisdiction of medicinal cannabis. This bill will prohibit the retail sale by delivery within the local jurisdiction of medicinal cannabis to medicinal cannabis patients in a timely and readily accessible manner. It will prohibit local jurisdictions from enacting restrictions on these businesses that have the effect of prohibiting retail sale by delivery.
Under SB 1186, local jurisdictions will retain all of their local control over adult-use cannabis businesses; however, this bill will undermine local decision-making capabilities, a major component stated under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) by:
1) Preventing local jurisdictions from prohibiting medicinal cannabis delivery, regardless of the needs or existing conditions in the jurisdiction. 2) Restricting the ability for a large number of jurisdictions that permit and regulate cannabis retailers to set appropriate local regulations.
At this time, the City of Commerce has the ability to set regulations for business entities that include medical cannabis industries. This will amend the City’s existing local Ordinance No. 700 that was developed and approved in an open public process. SB 1186 will disregard the different needs of local jurisdictions and will limit the ability to control the medical cannabis industry.
Staff recommends that City of Commerce continue to have local government decision-making abilities in implementing their own regulations as authorized at the State level of government; and be able to screen, select, and monitor businesses and land-use activities within the City’s jurisdiction.
The medical cannabis industry has generated new local economic development and revenue opportunities, changing the City’s local authorization rules will impede the gradual, but consistent progress our City has made since implementing Ordinance No. 700. The proposed bill would obstruct the momentum the City has made and will prohibit the City from regulating current and future needs as it relates to the medical cannabis industry.
ALTERNATIVES:
Approve staff recommendation; or
Provide further direction to staff
FISCAL IMPACT:
The fiscal impact is unknown at this time.
RELATIONSHIP TO STRATEGIC GOALS:
The agenda item relates to the 2016 Strategic Plan
Economic Growth
Guiding Principle #4:
This guiding principle calls for a focus on economic development pursuits that will increase local jobs, generate revenue, and create a demand for supporting businesses.
Respectfully submitted:
Approved by: Edgar Cisneros, City Manager
Prepared by: Gisselle S. Delgado, Management Analyst
Approved as to form: Noel Tapia, City Attorney
ATTACHMENTS:
Letter of Opposition