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Cannabis Regulations - Prop 64

California State law allows local governments to regulate commercial cannabis activities in their respective jurisdictions. The City of Tracy is currently taking steps to implement local cannabis health and safety regulations to protect citizens and conform with new state regulations.

The City will continue to update this webpage as part of our ongoing effort and encourages the public to participate throughout the process by attending meetings and offering constructive input.

Background

On June 27, 2016, the State enacted the Medical Cannabis Regulatory Safety Act (MCRSA) to protect residents’ use of medical cannabis and to establish regulations for personal and commercial medical cannabis activity. On November 8, 2016, California voters passed Proposition 64, the Adult Use of Marijuana Act (AUMA) to regulate personal and commercial non-medical marijuana activity. On January 1, 2018 the State began issuing temporary commercial licenses for medicinal and non-medicinal cannabis. Many California cities and counties are now implementing local cannabis regulations.

During a regular meeting of the Tracy City Council on December 5, 2017, the Council directed staff to prepare an ordinance to allow up to two medical cannabis non-storefront (i.e. delivery only) dispensaries to operate in the City’s industrial locations, subject to a high level of regulation and oversight by the City. Council also voted in favor of placing a sales tax on the November 2018 ballot for voters to approve a tax on commercial cannabis activity in Tracy.

Staff is working diligently to prepare the ordinance and expects to return to Council in September 2018 for further action. Until such ordinance is adopted by Council, all commercial medical and adult-use cannabis activity is prohibited in Tracy, including manufacturing, cultivation, distribution, testing and any other cannabis activity licensed by the State, in accordance with Tracy Ordinance 1240, effective October 19, 2017.

Next Steps For Cannabis Ordinance

An ordinance to allow up to two medical cannabis non-storefront (i.e. delivery only) dispensaries to operate in the City’s industrial locations is currently being prepared by City Staff. The proposed cannabis ordinance will be introduced to the City of Tracy Planning Commission on Wednesday, July 25, 2018. On Tuesday, September 18, 2018, the proposed cannabis ordinance and operational regulations will be presented to the Tracy City Council for further discussion.

Tracy voters will decide on a special cannabis sales tax that will appear on the November 6, 2018 ballot. If the sales tax is approved, the cannabis ordinance will go before the City Council for approval in November 2018. Until the Tracy City Council takes action on the ordinance, all commercial medical and adult-use cannabis activity is prohibited in Tracy. This includes the manufacturing, cultivation, distribution, testing, and any other cannabis activity licensed by the State of California.

Measure D - Ballot Language

Shall the City of Tracy adopt an ordinance establishing a special tax on cannabis businesses at annual rates, not to exceed $12.00 per canopy square foot for cultivation (adjusted for inflation), 6% of gross receipts for retail cannabis businesses, and 4% for all other businesses; which is expected to generate an estimated $35,000 to $100,000 annually to fund police and code enforcement services and that shall be levied until repealed by voters?

Helpful Information

  • To view the December 5, 2017 Tracy City Council meeting where cannabis regulations were discussed, please click here. 
  • To view the Cannabis Policy Community Outreach PowerPoint presentation, please click here.

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