BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 129|
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                                 THIRD READING


          Bill No:  SB 129
          Author:   Leno (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  3-2, 4/5/11
          AYES:  Evans, Corbett, Leno
          NOES:  Harman, Blakeslee


           SUBJECT  :    Medical marijuana:  qualified patients:  
          employment 
                      discrimination

           SOURCE  :     American for Safe Access


           DIGEST  :    This bill prohibits employment discrimination on 
          the basis of a person's status as a qualified patient 
          (medical marijuana user) or on the basis of the person's 
          positive drug test for marijuana, provided the person is a 
          qualified patient and the medical use of marijuana does not 
          occur at the place of employment or during hours of 
          employment.  This bill contains an exception to the 
          prohibition when an employer hires a person in a 
          safety-sensitive position, as specified.  This bill 
          creates, for a person who has suffered discrimination as 
          described above, a civil action for damages, injunctive 
          relief, attorney's fees and costs, and any other 
          appropriate equitable relief to protect the peaceable 
          exercise of the right or rights secured.  This bill 
          contains a savings clause that states nothing in the 
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          section shall prohibit the employer from terminating the 
          employment, or taking other corrective action against a 
          person who is impaired on the property or premises of the 
          place of employment or during hours of employment because 
          of the medical use of marijuana.

           ANALYSIS  :    

           Existing law  :

          Existing law, Proposition 215 of 1996, the Compassionate 
          Use Act, provides the individual right to obtain and use 
          marijuana for medical purposes where medical use has been 
          deemed appropriate and recommended by a physician because 
          the person's health would benefit from the use of marijuana 
          in treatment of cancer, anorexia, AIDS, chronic pain, 
          spasticity, glaucoma, arthritis, migraine, or any other 
          illness for which marijuana provides relief.  (Health & 
          Safety Code Section 11362.5(b)(1).)  

          Existing law removes the criminal penalties for cultivation 
          and possession of marijuana by qualified patients, who are 
          persons with a physician's written or oral recommendation 
          or approval to use marijuana for medical use, or by their 
          primary caregivers, and protects physicians from punishment 
          for recommending marijuana to a patient for medical 
          purposes.  (Health & Safety Code Section 11362.5(b), (c) 
          and (d).)

          Existing law provides that employment having no specified 
          term may be terminated at the will of either party on 
          notice to the other.  (Labor Code Section 2922.)

          Existing law provides that it shall be an unlawful 
          employment practice to discriminate based on race, 
          religious creed, color, national origin, ancestry, physical 
          disability, mental disability, medical condition, marital 
          status, sex, age, or sexual orientation.  (Fair Employment 
          and Housing Act (FEHA), Gov. Code Section 12940 et seq.)  
          FEHA requires employers in their hiring decisions to take 
          into account the feasibility of making reasonable 
          accommodations to a person with a disability or medical 
          condition.  (Government Code Section 12940(a)(2).)


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          This bill makes it unlawful for an employer to discriminate 
          against a person in hiring, termination, or any term of 
          employment or otherwise penalize a person, based on (1) the 
          person's status as a qualified patient or (2) the qualified 
          patient's positive drug test where the medical use of 
          marijuana does not occur on the property or premises of the 
          employer or during the hours of employment. 

          This bill establishes a civil cause of action by a 
          qualified patient who suffered discrimination for damages 
          and injunctive relief, attorney's fees and costs, and other 
          equitable relief to protect the peaceable exercise of the 
          right or rights secured. 

          This bill does not apply when the employer employs a person 
          in a safety-sensitive position, which includes:  a position 
          in which medical cannabis-affected performance would 
          clearly endanger the health and safety of others, as 
          defined; a position involving carrying a firearm; or a 
          position involving the operation, maintenance, or dispatch 
          of federal service vehicles. 

          This bill provides that an employer will not be prohibited 
          from terminating the employment of or taking corrective 
          action against a person who is impaired on the workplace 
          premises or who is impaired during working hours.

           Background
           
          In 1996, California voters passed Proposition 215, the 
          Compassionate Use Act, "to ensure that seriously ill 
          Californians have the right to obtain and use marijuana for 
          medical purposes."  Following passage of the proposition, 
          several issues arose, including the establishment of a 
          qualified patient's right to use medical marijuana outside 
          the workplace.  SB 420 (Vasconcellos), Chapter 875, 
          Statutes 2003, the Medical Marijuana Program Act, was 
          enacted to clearly prohibit the use of medical marijuana by 
          qualified patients on the property or premises of any place 
          of employment or during the hours of employment.  (Health 
          and Safety Code Section 11362.785.)
           
          In September 2001, Gary Ross, a 45-year old disabled Air 
          Force veteran, was fired after failing an employer-mandated 

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          drug test.  He was using medical marijuana on his doctor's 
          recommendation outside the workplace and had informed his 
          employer of that fact.  He sued for unlawful discrimination 
          based on disability under the Fair Employment and Housing 
          Act (FEHA) and for wrongful termination in violation of 
          public policy.  The trial court sustained a demurrer as to 
          both causes of action.  The court of appeal affirmed, and 
          upon further appeal, the California Supreme Court ruled 
          that: (1) nothing in the text or history of the 
          Compassionate Use Act suggests the voters intended the 
          measure to address the respective rights and duties of 
          employers and employees; and (2) FEHA does not protect the 
          employment rights of persons who test positive for illegal 
          drugs (which includes marijuana under state and federal 
          law).  (  Ross v. RagingWire Telecommunications, Inc.  (2008) 
          42 Cal.4th 920, 933.)

          As a result of the Ross ruling, employers and employees 
          alike are uncertain as to what, if any, rights a qualified 
          patient has in maintaining a job that may require periodic 
          marijuana testing.  In 2008, AB 2279 (Leno), of 2008, 
          attempted to clarify this ambiguity by providing that an 
          employee who is a qualified patient cannot be fired from a 
          job because of his or her status as a qualified patient or 
          for testing positive for marijuana.  AB 2279 also provided 
          that an employee who is a qualified patient cannot be 
          discriminated against or penalized by an employer for 
          marijuana status or positive testing during the hiring 
          process.  After passing both houses, AB 2279 was vetoed by 
          Governor Schwarzenegger who asserted that the bill would 
          interfere with employment decisions relating to marijuana 
          use.  

          This bill, which is substantially similar to AB 2279, 
          clarifies the law regarding the employment rights of 
          medical marijuana users, in light of the Supreme Court's 
          decision in  Ross v. RagingWire  .

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No

           SUPPORT  :   (Verified  4/6/11)

          American Academy of Cannabinoid Medicine California

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          Attorneys for Criminal Justice
          California Communities United Institute
          California Public Defenders Association
          Crusaders for Patients Rights
          Drug Policy Alliance
          Law Enforcement Against Prohibition
          Lawmen Protecting Patients
          National Lawyers Guild
          National Organization for the Reform of Marijuana Laws
          San Francisco AIDS Foundation

           OPPOSITION  :    (Verified  4/6/11)

          Agricultural Council of California
          Air Conditioning Sheet Metal Association
          Air-conditioning and Refrigeration Contractors Association
          Apartment Association, California Southern Cities
          Associated General Contractors
          CalChamber
          Association for Los Angeles Deputy Sheriffs
          California Association of Bed & Breakfast Inns
          California Association of Health Facilities
          California Association of Joint Powers Authority
          California Attraction and Parks Association
          California Chapter of the American Fence Association
          California Chapters of the National Electrical Contractors 
          Association
          California District Attorneys Association
          California Farm Bureau Federation
          California Fence Contractors' Association
          California Fraternal Order of Police
          California Grocers Association
          California Hospital Association
          California Hotel & Lodging Association
          California Independent Grocers Association
          California Landscape and Irrigation Council
          California Legislative Conference of the Plumbing, Heating 
          and Piping 
            Industry
          California Narcotic Officers' Association
          California New Car Dealers Association
          California Peace Officers Association
          California Police Chiefs Association
          California Retailers Association

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          California State Sheriffs Association
          Engineering Contractors' Association
          Flasher Barricade Association
          International Faith Based Coalition/Forces United
          Long Beach Police Officers Association
          Marin Builders' Association
          National Federation of Independent Business
          Orange County Apartment Association
          Riverside Sheriffs Association
          Santa Ana Police Officers Association
          Take Bake America Campaign
          Western Electrical Contractors Association

           ARGUMENTS IN SUPPORT  :    According to the author's office, 
          on January 24, 2008 the California Supreme Court ruled in 
           Ross v. RagingWire Telecommunications  that an employee 
          using medical marijuana with a doctor's recommendation as 
          permitted by California law may be fired solely because of 
          their status as a medical cannabis patient.  This bill 
          makes it unlawful to discriminate in employment practices 
          based on an employee's legal use of medical marijuana 
          outside the work place and not during working hours.

          In its ruling the California Supreme Court ignored the will 
          of the voters and the legislature by invalidating the 
          rights of over 250,000 patients to be free from 
          discrimination in employment.  Most concerning was the fact 
          that Gary Ross was not employed in a safety-sensitive 
          position, did not use medical marijuana at the workplace, 
          and was not under the influence of marijuana at work.  In 
          essence, the Court said that Ross could be fired simply 
          because of his status as a patient using doctor recommended 
          medication.

          In denying Ross certain protections from employment 
          discrimination, the High Court did invite the legislature 
          to clarify its intent with respect to the employment rights 
          of medical cannabis patients.

          This bill provides the clarification requested by the Court 
          and reverse a decision that puts every medical cannabis 
          patient in jeopardy of losing their job without due cause.  
          By amending the Health and Safety Code to prevent 
          discrimination against patients in hiring, termination, or 

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          any term of employment, except in the case of 
          safety-sensitive positions, this bill clearly establishes 
          that medical marijuana patients have a right to work.  This 
          bill does not require an employer to accommodate marijuana 
          impairment or use in the workplace, and does not require 
          the employer to violate any state or federal laws.

          The policy of this state should be to encourage gainful 
          employment for those patients who are able to work.  In 
          addition to being an issue of basic human fairness, medical 
          marijuana patients who lose their jobs could become an 
          additional burden for state general assistance, MediCal, 
          and other social service programs that are already stressed 
          by chronic funding shortages.  SB 129 is a reasonable 
          solution that protects patients, employers, and public 
          safety.

           ARGUMENTS IN OPPOSITION  :    Opponents of this bill raise 
          numerous concerns with this bill:

           Proposition 19 .  Opponents contend that this bill is 
          similar to Proposition 19, the Regulate, Control and Tax 
          Cannabis Act of 2010 (Act).  Opponents argue that "this 
          bill seeks to usurp the voice of the voters. . . . In 
          November 2010, the voters overwhelmingly rejected 
          Proposition 19, which would have provided marijuana users 
          with similar protections in the workplace." The Act would 
          have made marijuana use and possession legal, as specified, 
          "İp]rovided, however, that the existing right of an 
          employer to address consumption that actually impairs job 
          performance by an employee shall not be affected."  (Prop. 
          19, Sec. 11304(c).)  The Act failed to pass, with 53.5 
          percent of California voters voting against passage and 
          46.5 percent voting in favor of passage.

           Effect on California employers with federal contracts or 
          grants  .  Opponents also maintain that this bill is in 
          direct conflict with the federal Drug-Free Workplace Act, 
          which they claim "requires federal contractors and grantees 
          to provide a drug free workplace, which includes 
          implementing a policy that prohibits the use or possession 
          of marijuana." The Drug-Free Workplace Act requires 
          employers to notify employees that "the unlawful 
          manufacture, distribution, dispensation, possession, or use 

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          of a controlled substance is prohibited in the grantee's 
          workplace" and that actions may be taken against employees 
          for violating this prohibition.  (U.S.C., tit. 41, sec. 
          702.)

           Chilling effect on employers  .  Opponents assert that under 
          this bill "an employer could smell the odor of marijuana 
          and observe the employee's red eyes . . . İh]owever, the 
          employer would have to wait to do anything until the 
          employee showed clear signs that the marijuana was 
          affecting or 'impairing' the employee's performance.  The 
          subjective nature of the term 'impairment', coupled with 
          the private right of action . . . for any alleged 
          violation, would make employers hesitant to take any action 
          until there was objective evidence of impairment, such as 
          an industrial accident or injury."

          Opponents assert that under this bill "an employer could 
          smell the odor of marijuana and observe the employee's red 
          eyes . . . İh]owever, the employer would have to wait to do 
          anything until the employee showed clear signs that the 
          marijuana was affecting or 'impairing' the employee's 
          performance.  The subjective nature of the term 
          'impairment', coupled with the private right of action . . 
          . for any alleged violation, would make employers hesitant 
          to take any action until there was objective evidence of 
          impairment, such as an industrial accident or injury."

          The California Hospital Association (CHA) has similar 
          concerns regarding the impairment provision in this bill.  
          "While CHA is sympathetic to the needs of patients who use 
          medical marijuana, hospitals are in a very different role 
          when faced with an applicant who has tested positive for 
          marijuana use.  Patients, health care workers and our 
          communities expect hospitals to screen out applicants who 
          may appear for work in an impaired state.  Requiring 
          hospitals to hire individuals who have tested positive for 
          marijuana use undermines their ability to ensure the 
          highest quality of care. ? The question of whether an 
          employee is 'impaired' is fact specific and the law 
          requires employers to have probable cause before seeking a 
          drug test."

           Exemption of safety-sensitive positions  .  Opponents raise 

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          concerns that the exemption to exclude medical marijuana 
          users from safety-sensitive positions is too narrow and 
          subjective, rendering the exemption useless to employers.  
          "Specifically, a position is considered 'safety-sensitive' 
          and exempt from the protections of SB 129, only if (1) it 
          requires a 'level of trust and responsibility' higher than 
          normal; (2) a 'clear' risk of health and safety to others 
          is created if there are errors in judgment, 
          inattentiveness, diminished coordination, or composure; and 
           (3) the employee works independently or performs work 
          where mistakes cannot likely be prevented by a supervisor 
          or other employeeİs]. "As such, the opponents believe the 
          safety-sensitive exemption would lead to differing opinions 
          between employees and employers as to which positions would 
          fall under the safety-sensitive exemption.


          RJG:do  4/7/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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