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REFR Business Plan 4. REGULATORY RESTRICTIONS 4.1. PROPOSITION 215: The first state law was passed by voters in 1996. It is known as Proposition 215, the Compassionate Use Act. This act exempts certain patients and their primary caregivers from criminal liability for possessing or cultivating marijuana, when these activities are conducted pursuant to an approved medical recommendation. 4.2. MAUCRSA SB94: Last year The Governor signed SB 94, the Medical and Adult- Use Cannabis Regulation and Safety Act. The MAUCRSA melds the state's medical- only regulations (a.k.a. MCRSA) with the adult-use rules approved by the voters under Prop. 64, (a.k.a. AUMA) For the most part, MAUCRSA follows the more flexible, industry-friendly rules of AUMA, such as allowing applicants to get licenses in different phases of the industry rather than restricting vertical integration. It also eliminates MCRSA's independent distributor requirement, authorizes the issuance of temporary special-event licenses, and drops the California residency requirement for license applicants. On January 16, 2019, California's three state cannabis licensing authorities announced that the Office of Administrative Law (OAL) officially approved final state regulations for cannabis businesses across the supply chain allowing Shared use manufacturing facilities and statewide delivery. 4.3. LOCAL ORDINANCE: On August 7, 2018, San Joaquin County adopted an ordinance allowing all types of medical and adult-use commercial cannabis businesses except outdoor cultivation and cannabis events in the unincorporated County with specific license, operating, and land use requirements. The ordinance is designed to protect public health and safety and keep cannabis out of the hands of youth, while also realizing the potential benefits of cannabis legalization including quality job development, criminal justice reform, and reduction of the black market. In January of 2019 the San Joaquin County Board of Supervisors voted to move forward with cannabis regulations via a development agreement process. Below are the steps the county will follow: 1.)Adoption of amendments to the Development Title, approved 11/1/18. 2.)Adopt modifications to Title 4, and adding requirement for issuance of a development agreement. 3.) Direct staff to develop modifications to the Development Title establishing procedures for the creation of"Cannabis Development Agreements." 4.)Authorize the County Administrator to negotiate Cannabis Development Agreements consistent with Title 4 and Title 9. 5.) Direct staff to develop an application and fee for Cannabis DA's 6