1. City Manager’s Office MUNICIPAL CODE AMENDMENTS: LOCAL REGULATION OF MEDICAL MARIJUANA CULTIVATION AND DELIVERY City Council meeting November 23 Item 5

2. Background 2 On October 9, 2015, Governor Brown signed the Medical Marijuana Regulation and Safety Act (“MMRSA”) consisting of three bills: AB 243 – Establishes a regulatory and dual licensing structure for medical marijuana cultivation. Requires a state license and a local license, permit or other entitlement AB 266 – Establishes dual licensing structure requiring a state license and a local license or permit for the delivery of medical marijuana SB 643 - Establishes criteria for licensing of medical marijuana businesses, regulates physicians, and recognizes local authority to levy taxes and fees

3. Background 3 Medical marijuana dispensaries are a prohibited use per Article 8 of the Pasadena Zoning Code Pursuant to AB 243 cities have until March 1, 2016 to enact ordinances prohibiting the cultivation and/or the delivery of medical marijuana AB 266 does not set a specific deadline, but requires local agencies to either establish an ordinance or be subject to state regulations Failure to enact such ordinances by the deadline will result in a city forfeiting forever its ability to regulate in this area On November 16 th the Public Safety Committee approved the staff recommendation

4. Recommendation 4 In order to retain local control, it is recommended that the City Council: 1. Find that the proposed Pasadena Municipal Code Amendments are exempt from environmental review under Section 15061(b)(3) (general rule) of the California Environmental Quality Act (“CEQA”) 2. Direct the City Attorney to prepare and return with an ordinance within 30 days adding new sections to Chapter 8 of the Pasadena Municipal Code that prohibit the cultivation and delivery of medical marijuana in the City