HomeMy WebLinkAboutED Cannabis Application Background Check____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 6/18/2018
Disposition: Resolution 14518
Agenda Item No: 4.d
Meeting Date: June 18, 2018
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Economic Development
Prepared by: Danielle O’Leary,
Econ. Development Director
City Manager Approval: ______________
TOPIC: CANNABIS APPLICATION BACKGROUND CHECK AUTHORIZATION
SUBJECT: RESOLUTION AUTHORIZING CANNABIS LICENSEE BACKGROUND CHECKS
RECOMMENDATIONS:
1. Accept report and Adopt Cannabis Background Check Resolution.
BACKGROUND:
State Law:
On November 8, 2016, the voters of the State of California enacted Proposition 64 to allow for
nonmedical/recreation adult-use. The regulatory framework in AUMA (Adult Use of Marijuana Act)
establishes a comprehensive system to legalize, control and regulate the cultivation, processing,
manufacture, distribution, testing and sale of nonmedical/recreation adult-use cannabis.
In 2015, the State of California began development of MCRSA (Medical Cannabis Regulation and
Safety Act), which was the first comprehensive regulatory effort enacted by the State through legislative
action.
City Staff Review:
In response to the election results of Proposition 64, the San Rafael City Council, at a January 2017
study session, reviewed the statutory law of AUMA and instructed staff to form a City Council ad-hoc
subcommittee to review San Rafael’s cannabis policies. A decision was made to pursue limited industry
segments of medicinal cannabis and resulted in the formation of t he Cannabis Ad-Hoc Subcommittee
(Subcommittee) which included Councilmember Kate Colin and Councilmember John Gamblin. Staff
support included the: City Manager, Police Chief, Fire Chief, Community Development Director,
Assistant City Attorney, and the Economic Development Director. Over the course of several months,
the Subcommittee reviewed all license types available under the State’s medical cannabis framework,
the Medical Cannabis Regulation and Safety Act of 2015 (MCRSA), and developed a set of
recommendations for full Council consideration.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
In July 2017, the Governor signed Senate Bill 94, entitled the Medical and Adult-Use Cannabis
Regulation and Safety Act (MAUCRSA), which took effect immediately. MAUCRSA reconciles the
State’s Medical Cannabis Regulation and Safety Act (MCRSA) with AUMA’s nonmedical/recreation
adult-use cannabis regulations. The State issued the newly revised regulations on November 16, 2017
under their emergency rule making process.
On December 4, 2017, Council adopted Ordinance No. 1949 (the “Cannabis Urgency Ordinance”), an
urgency ordinance adding new Chapter 10.96 to the San Rafael Municipal Code to advance local
regulations for commercial cannabis activity in San Rafael city limits before the State of California’s
January 1, 2018 start date for accepting commercial cannabis applications. The Cannabis Urgency
Ordinance establishes the following regulations:
Permits Medical Cannabis Commercial Operations
Authorizes a limited number of commercial medical cannabis operator licenses:
• Medical cannabis delivery (State License Type 9)
• Medical cannabis infused product manufacturing (State License - Type N)
• Cannabis testing lab (State License – Type 8)
Prohibits Medical Cannabis Commercial Operations
• Cultivation, processing and some manufacturing activities
• Dispensaries
Prohibits Nonmedical/Recreation Adult-use Cannabis Commercial Operations
• All commercial nonmedical/recreation adult-use cannabis activities allowed under AUMA
pending further staff reviews of the State’s new MAUCRSA regulations.
On May 21, 2018, the Council amended the cannabis ordinance to include two distribution licenses
(State License Type 11) into the pilot cannabis licensing program.
ANALYSIS:
The City of San Rafael has begun the licensing review process, which includes a background check
screening requirement for potential licensees. The Department of Justice (DOJ) requires cities to
approve a routine resolution authorizing local law enforcement to conduct background checks for
cannabis businesses. The draft resolution for Council approval is the provided by the DOJ to cities and
counties to establish the cannabis business background check authority.
FISCAL IMPACT:
Cost of the background check is included in the non-refundable application fee.
OPTIONS:
The City Council has the following options to consider on this matter:
1. Accept report and adopt Cannabis Background Check Resolution.
2. Accept report and Cannabis Background Check Resolution with modifications.
3. Provide feedback on Cannabis Background Check Resolution and direct staff to return with
more information.
4. Take no action.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
RECOMMENDED ACTION:
1. Accept report and adopt Cannabis Background Check Resolution.
ATTACHMENTS
1. Cannabis Background Check Resolution
RESOLUTION NO. 14518
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL AUTHORIZING ACCESS TO STATE
AND FEDERAL LEVEL SUMMARY CRIMINAL HISTORY INFORMATION FOR LICENSING
OR CERTIFICATION PURPOSES IN ORDER TO IMPLEMENT SAN RAFAEL MUNICIPAL
CODE CHAPTER 10.96 PERTAINING TO COMMERCIAL CANNABIS BUSINESSES
WHEREAS, California Penal Code Sections 11105(b) and 13300(b)(11) authorize cities to
access state and local summary criminal history for employment, licensing or certification
purposes; and
WHEREAS, Penal Code Section 11105(b)(11) authorizes cities to access federal level criminal
history information by transmitting fingerprint images and related information to the Department
of Justice to be transmitted to the Federal Bureau of Investigations; and
WHEREAS, Penal Code Sections 11105(b)(11) and 13300(b)(11) require that there be a
requirement or exclusion from employment, licensing, or certification based on specific criminal
conduct on the part of the subject of the record; and
WHEREAS, Penal Code Sections 11105(b)(11) require the city council, to specifically authorize
access to summary criminal history information for employment, licensing, or certification
purposes.
NOW THEREFORE, BE IT RESOLVED, that the City of San Rafael are hereby authorized to
access state and federal level summary criminal history information for employment, licensing of
prospective licensees or certification purposes and may not disseminate the information to a
private entity.
I, LINDSAY LARA, City Clerk of the City of San Rafael, hereby certify that the foregoing
resolution was duly and regularly introduced and adopted at a regular meeting of the San Rafael
City Council held on the 18th day of June 2018, by the following vote to wit:
AYES: COUNCILMEMBERS: Bushey, McCullough & Vice-Mayor Gamblin
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Colin & Mayor Phillips
____________________________
Lindsay Lara, City Clerk