Report to Mayor and City Council
Thursday, August 11, 2016
Discussion
SUBJECT:
Title
OVERVIEW OF PROPOSITION 64 (THE ADULT USE OF MARIJUANA ACT) AND CONSIDERATION OF CITY ACTION CONCERNING PROPOSITION 64, INCLUDING POSSIBLY SENDING BALLOT MEASURES TO THE CARSON VOTERS TO REGULATE, RESTRICT, AND/OR TAX ALL CANNABIS RELATED BUSINESS AND ACTIVITIES WITHIN THE CITY OF CARSON (CITY COUNCIL)
Body
I. SUMMARY
This report summarizes the impact on the City if Proposition 64 - the Adult Use of Marijuana Act (AUMA) - is approved statewide by California voters on November 8, 2016; briefly summarizes existing California marijuana law; and, requests direction, including on whether to send ballot measures to the Carson voters on ordinances to regulate and tax marijuana cultivation and activities.
If AUMA is approved by CA voters:
* Individuals - Adults 21 years of age or older will under State law legally be able to grow, possess, and use small amounts of marijuana for personal nonmedical purposes. Local control will be preempted over such personal marijuana activities. Cities cannot prohibit such uses.
* Businesses - In 2018 the state will begin to license and regulate 19 different types of nonmedical marijuana businesses (ranging from various cultivation operations and retail sales to testing facilities). Cities can prohibit, permit or regulate any of the nineteen different marijuana businesses. If a city regulates such uses, it can also tax the use and generate local taxes.
* Taxes - The state will tax the growing and selling of medical and nonmedical marijuana. The Legislative Analyst's Office estimates state revenue from a few hundred million dollars to $1 billion. Revenue will go to (in part) youth programs, research, environmental protection, and law enforcement. Cities are eligible for certain grants funded by the new state revenue for law enforcement, fire protection and public health and safety; however, Cities are not eligible for these state grants if cultivat...
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