Loading...
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