BILL ANALYSIS Ó AB 1894 Page 1 Date of Hearing: April 22, 2014 Counsel: Sandy Uribe ASSEMBLY COMMITTEE ON PUBLIC SAFETY Tom Ammiano, Chair AB 1894 (Ammiano) - As Amended: April 1, 2014 SUMMARY : Enacts the Medical Cannabis Regulation and Control Act. Specifically, this bill : 1)Makes legislative findings and declarations regarding medical cannabis. 2)Requires the Medical Board of California to include in the cases it prioritizes for investigation and prosecution those involving repeated acts of excessively recommending marijuana to a patient for medical purposes. 3)States that recommending marijuana to a patient for medical purposes without having conducted an appropriate prior examination, including an in-person examination, constitutes unprofessional conduct. 4)States that employing or aiding and abetting an unlicensed person to engage in the practice of medicine with a marijuana clinic or dispensary to provide recommendations for medical marijuana constitutes unprofessional conduct. 5)States legislative intent to provide for the comprehensive regulation of the cultivation, manufacturing, testing, transportation, distribution, and sale of medical cannabis and the enforcement of laws relating to these activities. 6)States that, subject to the authority of a city or county under Business and Professions Code section 26010, the state shall have the exclusive power to regulate medical cannabis. 7)Defines the following terms: a) "Cannabis" means "all parts of the plant Cannabis sativa L. whether growing or not, the seeds thereof, the resin extracted from any part of the plant; and every compound, AB 1894 Page 2 manufacture, salt, derivative, mixture, or preparation of the plant, it seeds or resin." It also means "the separated resin, whether crude or purified, obtained from marijuana." b) "Department" is the Department of Alcoholic Beverage Control (ABC). c) "Dispensary" means "a mandatory commercial registrant that dispenses cannabis or medical cannabis products through a retail storefront." d) "Division" is the Division of Medical Cannabis Regulation and Enforcement. e) "Fund" is the Medical Marijuana Fund established under Business and Professions Code Section 26028. f) "Identification program" is "the universal identification card program for mandatory commercial registrants." g) "Mandatory commercial registrant" is "any individual, partnership, joint venture, association, limited liability company, corporation, estate, trust, receiver, syndicate, or any other group or combination thereof acting as a unit to commercially cultivate, process, possess, store, manufacture, test, transport, distribute, or sell medical cannabis in compliance with this chapter, other than a patient or a patient's primary caregiver, as defined by the Compassionate Use Act of 1996, growing, possessing, storing, manufacturing, transporting, or providing medical cannabis exclusively for the personal medical purposes of individual patients." h) "Medical cannabis product" means "any cannabis product, including concentrates and extractions, that is cultivated, processed, packaged, and distributed in full compliance with the requirements of this chapter and with any regulations adopted by the department pursuant to its rulemaking authority" and includes "medically infused products that contain medical cannabis and are intended for oral or topical consumption by a qualified patient." i) "Person" includes "any individual, firm, copartnership, AB 1894 Page 3 joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit and includes the plural as well as the singular number." j) "Testing and labeling" means mandatory labeling and a quality assurance plan in place that addresses: potency, chemical residue, microbiological contaminants, random sample testing, handling, care, and storage. 8)Specifies that this chapter does not prevent a city or county from doing any of the following: a) Adopting local ordinances that ban or regulate the location, operation, or establishment of a mandatory commercial registrant; b) Enforcing those ordinances civilly or criminally; c) Establishing a reasonable fee for the operation of a mandatory commercial registrant; and d) Enacting other laws consistent with this chapter. 9)Creates the Division of Medical Cannabis Regulation (division) in the Department of Alcoholic Beverage Control (department). 10)Gives the department the exclusive power to register persons for specified activities relating to medical cannabis and to collect registration fees. 11)Confers on the division all power necessary for the administration of this chapter, including, but not limited to: a) Establishing statewide standards for the cultivation, manufacturing, testing, transportation, distribution, and sales of medical cannabis and medical cannabis products; b) Establishing a scale of state-imposed fees for the cultivation, manufacture, testing, transportation, distribution, and sale of medical cannabis and medical cannabis products; c) Making and prescribing reasonable rules that are AB 1894 Page 4 necessary and proper to exercise the powers and perform the duties conferred upon it; d) Approving or denying mandatory registration application for cultivation, manufacturing, testing, labeling, transportation, distribution, and sale of medical cannabis; e) Suspending, fining, restricting, or revoking mandatory commercial registration upon a violation of a rule or regulation adopted by the division; f) Imposing penalties; g) Taking any reasonable action with respect to a mandatory commercial registration application; h) Delegating to an administrative law judge the power to hear and decide appeals of applications for registration; i) Developing any necessary forms, identification cards, and applications; j) Overseeing the operation of the Medical Cannabis Regulation Fund; aa) Establishing reasonable fees; and bb) Consulting with other agencies, departments, and entities for establishing statewide standards and regulations. 12)Requires the department to provide written notice of a denial for registration to an applicant, and allows a denied applicant to petition for a hearing. 13)Requires the department to file an accusation prior to suspending, revoking, or fining and registrant, and allows the registrant to request a hearing. 14)Establishes the Medical Cannabis Regulation Fund within the State Treasury. 15)Specifies that all fees collected pursuant to this regulatory scheme shall be deposited into the fund, and that all monies in the fund are to be continuously appropriated without regard AB 1894 Page 5 to fiscal year to the department for the purpose of administering this chapter. However, all monies collected as a result of penalties are deposited in the General Fund. 16)Confers peace officer status on the director and persons employed by the ABC for administration and enforcement of this chapter, and authorize those persons to enforce any penal provisions of law while in the course of their employment. 17)Allows other specified peace officers to visit and to inspect the premises of any mandatory commercial registrant at any time while enforcing this chapter. 18)Makes information contained in department records regarding the names of patients, their medical conditions, and their primary caregivers confidential and exempt from the Public Records Act, except as specified. 19)Requires, by January 1, 2016, the division to establish procedures for the issuance, renewal, suspension, and revocation of mandatory commercial registration; application, registration, and renewal forms and fees; qualifications for registrants; security requirements; testing and labeling requirements; health and safety requirements; inspection and other tracking requirements, storage, packing, and transportation procedures and protocols; advertising restrictions and requirements; food and product safety requirements; requirements to prevent diversion of cannabis for nonmedical use, and civil penalties for the failure to comply with regulations. 20)Prohibits approval of a mandatory commercial registration application or renewal if the department determines any of the following: a) The applicant fails to meet the established requirements or any regulation adopted; b) The applicant, or any of its officers or directors, is under 21 years of age; c) The applicant has knowingly answered a question or request for information falsely on the form; AB 1894 Page 6 d) The applicant, or any of its officers or directors, has been convicted in the past five years of a serious or violent felony, as specified, a felony involving fraud or deceit, or any other felony that, in the division's estimation, would impair the applicant's ability to appropriately operate medical cannabis cultivation, manufacturing, testing, distribution or sales; e) The applicant is a licensed physician making medical cannabis recommendations for patients; f) The applicant, or any of its officers or directors, had been sanctioned by the division for operating unregistered commercial medical cannabis activities, or has had a registration revoked in the previous three years; or g) A sufficient number of mandatory commercial registrants already exist in the state, city, or county to satisfy patients' medical use in that jurisdiction. 21)Requires the department to issue emergency regulations within 180 days of January 1, 2015, including establishing appropriate fees. 22)Allows the department to establish various classes or types of registration for specific medical cannabis-related activities. 23)States that each mandatory commercial registration application approved by the department is separate and distinct. 24)Allows an applicant to apply for registration in multiple classes of specified medical cannabis activities. 25)States that an approved application is valid for a period not to exceed one year from the date of approval, unless revoked or suspended. 26)Requires the department to limit the number of registrations statewide to a number no greater than what is necessary to meet statewide need, and require the department to ensure that the number of approved registration do not exceed the department's ability to enforce the provisions of this chapter. AB 1894 Page 7 27)Requires the department to consider specified factors in establishing limits. 28)Specifies requirements and procedures for registration renewals. 29)Requires an application for mandatory commercial registration to include, but not be limited to, specified information. 30)Requires the department to make a thorough investigation to determine qualifications upon receipt of an application. 31)Prohibits a physician from recommending medical marijuana to a patient while that physician is a mandatory commercial registrant, or an officer, director, employee, or financial beneficiary of a registrant. 32)Exempts all mandatory commercial registrants from arrest, prosecution, forfeiture, or other sanctions, as specified. 33)Exempts a property owner, who in good faith and upon appropriate investigation, allows his or her property to be used by a mandatory commercial registrant from arrest, prosecution, forfeiture, or other sanctions, as specified. 34)Allows the department to examine the books and records of registrants and inspect the premises of registrants as necessary. 35)States that this chapter does not apply to and has no diminishing effect on the rights and protections granted to individual patients and primary caregivers under the Compassionate Use Act (CUA). 36)Exempts individual patients and caregivers cultivating marijuana who do not sell or charge for the cultivation of marijuana from mandatory commercial registration. 37)Requires the department to provide for provisional registration, as specified, beginning on January 1, 2015. 38)Requires the department to charge a $5,000 application fee for each provisional registration. 39)States that entities provided immunity under Los Angeles AB 1894 Page 8 Measure D of 2013 are to be considered the equivalent of registered entities and in compliance for purposes of this Act. 40)Requires the department to establish regulations regarding the minimum standards for the operation of dispensaries, including standards for labeling products, requirements for inventory control, the maximum number of dispensaries permitted in a jurisdiction, minimal educational and testing requirements, maximum hours of operation for dispensaries, and standards governing signage and advertising. 41)Requires the department to make recommendations to the Legislature about establishing an appeals and judicial review process. 42)Requires the department to work with law enforcement entities throughout California in order to implement and to enforce the rules and regulations regarding medical marijuana, and to take appropriate action against businesses and individuals who do not comply. 43)States that nothing in this chapter prevents a city, county, or city and county from enforcing a local zoning ordinance or law of general application. 44)Requires, commencing on January 1, 2016, that any product containing cannabis offered for sale be subject to testing and labeling requirements, except in the case of a primary caregiver distributing to a qualified patient. 45)Makes it a misdemeanor for a person to steal or fraudulently use a registrant's identification card or status to acquire, possess, cultivate, transport, use, produce, or distribute cannabis, or to tamper with or fraudulently produce an identification card or registration status. 46)Establishes the following penalties for the misdemeanor crimes: a) For the first offense, imprisonment in the county jail for no more than six months, or a fine up to $1,000, or both. b) For a second or subsequent offense, imprisonment in the AB 1894 Page 9 county jail for no more than one year, or a fine up to $1,000, or both. 47)Subjects a person operating an unregistered medical cannabis facility to civil penalties of up to $25,000 and authorize the destruction of marijuana associated with violations. 48)Requires law enforcement to notify the department of any arrests made for violations over which the department has jurisdiction which involve a registrant or registered premises. 49)Specifies that this chapter does not limit a law enforcement agency's ability to investigate unlawful activity in relation to a registrant. 50)Requires the department to create and maintain a searchable database that will allow state and local law enforcement to verify a mandatory commercial registration. 51)Permits a registrant to ship medical marijuana products only in response to a request for a specific quantity and variety from a registered dispensary or mandatory commercial registrant. 52)Requires a mandatory commercial registrant, prior to transporting any medical cannabis product, to complete a shipping manifest using a form prescribed by the department, and to securely transmit that manifest to the department and to the mandatory commercial registrant that will receive the product. 53)Requires that medical cannabis products be transported in a secured manner, as specified. 54)Sets forth requirements for medical cannabis delivery teams including: that transport vehicles have a minimum of two employees, one of which shall remain on the vehicles at all times cannabis is present; that each team member have access to a secure form of communication with personnel and the mandatory commercial registrant; and that each team member possess a government-issued identification card and documentation of registration when transporting cannabis. 55)Amends the definition of "attending physician" for purposes AB 1894 Page 10 of the Medical Marijuana Program Act. 56)Permits the board of supervisors of any county and the governing body of any city to levy, increase, or extend a transaction and use tax for tangible personal property that is medical cannabis, or medical-cannabis-infused products for general purposes, if the ordinance proposing the tax is approved, as specified. 57)States that the provisions of this Act are severable, and that if one is held invalid, the invalidity will not affect other provision which can still be given effect. 58)States that the provisions of this Act which impose a limitation on the public's right of access to documents in the possession of a public agency is necessary to maintain to maintain the confidentiality of patient and physician information provided to the division in order to protect the private medical information of patients who use medical cannabis and to preserve physician-patient confidentiality. EXISTING LAW : 1)Prohibits the possession, possession with intent to sell, cultivation, sale, transportation, importation, or furnishing of marijuana, except as otherwise provided by law. (Health & Saf. Code, §§ 11357, 11358, 11359, and 11360.) 2)States that the People of the State of California hereby find and declare that the purposes of the Compassionate Use Act of 1996 are as follows: a) To ensure that seriously ill Californians have the right to obtain and use cannabis for medical purposes where that medical use is deemed appropriate and has been recommended by a physician who has determined that the person's health would benefit from the use of cannabis in the treatment of cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, migraine, or any other illness for which cannabis provides relief. b) To ensure that patients and their primary caregivers who obtain and use cannabis for medical purposes upon the recommendation of a physician are not subject to criminal prosecution or sanction. AB 1894 Page 11 c) To encourage the Federal and State governments to implement a plan to provide for the safe and affordable distribution of cannabis to all patients in medical need of cannabis. (Health & Saf. Code, § 11362.5, subd. (b)(1)(A)-(C).) 3)States that nothing in this section shall be construed to supersede legislation prohibiting persons from engaging in conduct that endangers others, nor to condone the diversion of cannabis for nonmedical purposes. (Health & Saf. Code, § 11362.5, subd. (b)(2).) 4)Provides that, notwithstanding any other provision of law, no physician in California shall be punished, or denied any right or privilege, for having recommended cannabis to a patient for medical purposes. (Health & Saf. Code, § 11362.5, subd. (c).) 5)Defines a "primary caregiver" as the individual designated by a patient who has consistently assumed responsibility for the housing, health, or safety of that person. (Health & Saf. Code, § 11362.5, subd. (e).) 6)States that existing law, relating to the possession and the cultivation of cannabis, shall not apply to a patient, or to a patient's primary caregiver, who possesses or cultivates cannabis for the personal medical purposes of the patient upon the written or oral recommendation or approval of a physician. (Health & Saf. Code, § 11362.5, subd. (d).) 7)Requires the Department of Public Health to establish and maintain a voluntary program for qualified patients to apply for identification cards, and county health departments to issue identification cards to qualified patients and their caregivers. (Health & Saf. Code, § 11362.71, subds. (a) and (b).) 8)Provides that persons with valid identification cards shall not be subject to arrest for possession, transportation, delivery, or cultivation of cannabis, absent evidence of fraud. (Health & Saf. Code, § 11362.71, subd. (e).) 9)Provides that patients and caregivers may possess and cultivate an amount of cannabis reasonably necessary for the patient's current medical needs, notwithstanding any limits AB 1894 Page 12 set by the Legislature that impermissibly amend the Compassionate Use Act. (People v. Kelly (2010) 47 Cal.4th 1008, 1043.) 10)Requires a person who seeks an identification card to pay a fee and provide to the county health department the person's: name, proof of residency, written doctor's recommendation, doctor's name and contact information, caregiver's name and duties, and patient's and caregiver's government-issued photo identification card. (Health & Saf. Code, § 11362.715, subd. (a).) 11)Requires county health departments to issue serially numbered identification cards to patients and caregivers containing: a unique user identification number, an expiration date, the county health department's name and telephone number, photo identification of the cardholder, and a toll-free Department of Public Health telephone number enabling state and local law enforcement officers to immediately verify the card's validity. (Health & Saf. Code, § 11362.735, subd. (a).) 12)Prohibits state or local law enforcement officers from refusing to accept an identification card unless the officer has reasonable cause to believe that the card is being used fraudulently or its information is false or fraudulent. (Health & Saf. Code, § 11362.78.) 13)Provides that qualified patients, persons with valid identification cards, and their designated primary caregivers who associate in order collectively or cooperatively to cultivate cannabis are not subject to criminal liability on that basis. (Health & Saf. Code, § 11362.775.) 14)Restricts the location of medical marijuana cooperatives, collectives, or dispensaries to more than 600 from a school, and authorizes cities and counties to further restrict the locations of these establishments. (Health & Saf. Code, § 11362.768, subds. (b), (f), and (g).) 15)Allows local governments to adopt and enforce local ordinances that regulate the location, operation, or establishment of a medical marijuana collective or cooperative. (Health & Saf. Code, § 11362.83, subds. (a) and (b).) AB 1894 Page 13 16)Recognizes the authority of cities and counties to make and enforce, within their borders, all local, police, sanitary, and other ordinances and regulations not in conflict with general laws. (Cal. Const., art. XI, sec. 7.) FISCAL EFFECT : Unknown COMMENTS : 1)Author's Statement : According to the author, "The Compassionate Use Act of 1996 called on state government to implement a plan for the safe and affordable distribution of marijuana to all patients in medical need of marijuana. "In 2003, the Legislature enacted the Medical Marijuana Program Act (MMPA). Under the guidance of the MMPA, approximately 60 California cities and counties have created medical marijuana access ordinances that can act as a guide for the state. However, many other cities and counties are calling for more guidance and regulation from the state and have passed bans or moratoria on medical marijuana cultivation and distribution while awaiting such guidance. This patchwork of laws cannot continue, and the state needs to responds to calls from local governments and the federal government to institute a comprehensive set of statewide regulations. "Greater certainty and uniformity are urgently needed regarding the rights and obligations of medical marijuana facilities, and for the imposition and enforcement of regulations to prevent unlawful cultivation and the diversion of marijuana to nonmedical use. This bill utilizes an existing state regulatory agency with law enforcement functions to oversee a regulated chain of commerce, similar to what ABC does with alcohol. It provides for locals to have the ultimate say in what types of medical cannabis activities can happen in that local jurisdiction. This locals-first approach requires that growers, processers, manufacturers, testing and labeling, transporters, and retailers will all be required to have local zoning approval and a local business permit in order to even apply for state registration. "Local control and a state regulatory structure will ensure that every aspect of this commercial chain of commerce will be tracked - from growers all the way to storefront dispensaries, creating a network of accountability and transparency that AB 1894 Page 14 does not exist today. Providers who are engaged in transparent activities with local approval will have nothing to fear as it will allow law enforcement to effectively utilize their limited resources to go after bad actors, those who are not registered, or those who are not following local and state law. "The worst public policy is for California to sit idly by and again do nothing, to let the status quo remain unchecked. There is no doubt that the medical marijuana industry exists, and the point of regulation is to bring these activities out of the shadows to ensure safe and effective access with clear rules, and for local and state government regulators to know what activities are happening, and who is engaging in them. We need to clean up bad actions and bad actors, and AB 1894 will enable local and state regulators to do so." 2)Medical Marijuana Law at Present : California voters passed Proposition 215, the Compassionate Use Act (CUA), in 1996. The CUA prohibits prosecution for growing or using marijuana of Californians who have the oral or written recommendation of their doctors and these patients' caregivers. The Legislature sought to clarify this initiative in 2003 with SB 420 (Vasconcellos), Chapter 875, Statutes of 2003, the MMPA. The MMPA offered a voluntary identification card which patients and caregivers could obtain that would additionally protect them from arrest. The MMPA also set limits on the amounts of marijuana to be legally grown and possessed. The California Supreme Court ruled in People v. Kelly (2010) 47 Cal.4th 1008, that the MMPA section limiting quantities of marijuana is unconstitutional because it amends a voter initiative. Now, California patients who obtain a physician's oral or written recommendation are protected from state prosecution for possessing or cultivating an amount of marijuana reasonably related to their current medical needs, as are these patients' caregivers. Patients and caregivers who obtain a state MMPA identification card from their county health department are protected from arrest and prosecution for possessing, transporting, delivering, or cultivating marijuana. But, patients and caregivers who engage in these activities remain liable for federal arrest and prosecution, and those who operate dispensaries face frequent federal AB 1894 Page 15 enforcement actions. The U.S. Supreme Court ruled in Gonzales v. Raich (2005) 545 U.S. 1, that the federal government can enforce marijuana prohibition despite state medical-marijuana laws. Thus, the CUA and the MMPA have no effect on federal enforceability of the federal Controlled Substances Act. The California Supreme Court recently held that the medical marijuana statutes do not preempt a local ban on facilities that distribute medical marijuana. Municipalities can prohibit such conduct as a public nuisance. (City of Riverside v. Inland Empire Patient's Health & Wellness Center (2013) 56 Cal.4th 729, 737.) The Court noted, "the CUA and the MMP are careful and limited forays into the subject of medical marijuana, aimed at striking a delicate balance in an area that remains controversial, and involves sensitivity in federal-state relations. We must take these laws as we find them, and their purposes and provisions are modest. They remove state-level criminal and civil sanctions from specified medical marijuana activities, but they do not establish a comprehensive state system of legalized medical marijuana; or grant a 'right' of convenient access to marijuana for medicinal use; or override the zoning, licensing, and police powers of local jurisdictions; or mandate local accommodation of medical marijuana cooperatives, collectives, or dispensaries." (Id. at pp. 762-763.) 3)California Constitutional Limitations on Legislative Regulation of Medical Marijuana : Because the CUA was enacted by voter initiative, the Legislature may not amend the statute without subsequent voter approval unless the initiative permits such amendment, and then only upon whatever conditions the voters attached to the Legislature's amendatory powers. (People v. Superior Court (Pearson) (2010) 48 Cal.4th 564, 568; see also Cal. Const., art. II, § 10, subd. (c).) The California Constitution states, "The Legislature may amend or repeal referendum statutes. It may amend or repeal an initiative statute by another statute that becomes effective only when approved by the electors unless the initiative statute permits amendment or repeal without their approval." (Cal. Const., art. II, § 10, subd. (c).) Therefore, unless the initiative expressly authorizes the Legislature to amend, only the voters may alter statutes created by initiative. Proposition 215 is silent as to the Legislature's authority to amend that proposition. AB 1894 Page 16 The purpose of California's constitutional limitation on the Legislature's power to amend initiative statutes is to protect the people's initiative powers by precluding the Legislature from undoing what the people have done, without the electorate's consent. Courts have a duty to jealously guard the people's initiative power and, hence, to apply a liberal construction to this power wherever it is challenged in order that the right to resort to the initiative process is not improperly annulled by a legislative body. (Proposition 103 Enforcement Project v. Quackenbush (1998) 64 Cal.App.4th 1473.) Yet, despite the strict bar on the Legislature's authority to amend initiative statutes, judicial decisions have recognized that the Legislature is not thereby precluded from enacting laws addressing the general subject matter of an initiative. The Legislature remains free to address a "related but distinct area" or a matter that an initiative measure "does not specifically authorize or prohibit." (People v. Kelly, supra, 47 Cal. 4th 1008, 1025-1026.) As noted above, the California Supreme Court has previously ruled on the Legislature's ability to regulate the use of medical marijuana because it was an initiative. In People v. Kelly, supra, 47 Cal.4th 1008, the California Supreme Court ruled that the Legislative restriction on the number of plants a person may possess was unconstitutional as it interfered with the rights established by the initiative. Although the Legislature may be able to clarify or expand the rights established in Proposition 215, it may not enact legislation that interferes with the use of marijuana for medicinal purposes. (Id. at 1044.) But, as the Supreme Court recognized in City of Riverside v. Inland Empire Patient's Health & Wellness Center, supra, 56 Cal.4th 729, the CUA and the MMPA are limited exceptions to the state's criminal sanctions and nuisance laws. (Id. at pp. 739, 744-746.) The CUA and MMPA are silent on zoning, licensing, and police powers of jurisdictions. (Id. at p. 762-763.) This bill does not appear to place a greater burden on patients than the CUA does. Patients and caregivers are exempt from registration under the provision of this Act. Rather, the bill imposes a regulatory structure on commercial entities, which was deemed outside the scope of the CUA and MMPA by the Supreme Court. AB 1894 Page 17 The one area of potential conflict with the CUA is the provision requiring the Medical Board to prioritize the prosecution of cases involving "repeated acts of excessively recommending marijuana to a patient for medical purposes" by physicians. The CUA provides that "no physician may be punished or denied any right or privilege under state law for recommending medical marijuana to a patient." (Health & Saf. Code, § 11362.5, subd. (c).) Depending on how this provision is interpreted, it may arguably conflict with the CUA. However, given that the bill contains a severability clause, if this provision were deemed to conflict with the CUA, the other provisions can still be given effect. 4)Arguments in Support : a) According to the City of Oakland , "AB 1894 is a comprehensive, thorough approach to medicinal cannabis and it brings forward order and clarity. This legislation clarifies state law for local government by respecting the right of local government to control, limit or ban dispensaries. This legislation clarifies state law for law enforcement by creating enforceable and clearly understood rules and responsibilities. In addition, this legislation creates a searchable database that is accessible to verify whether or not an individual has the right to cultivate, transport or distribute medical cannabis for commercial purposes. "Oakland has been on the forefront of medicinal cannabis and we have 8 approved, sanctioned, well-functioning dispensaries in our City. I can say with the utmost confidence that our well-regulated medical cannabis dispensaries are a benefit to our community. First, there is safe and ready access to medical marijuana for those in need which can change the quality of life for those suffering among us. Next, dispensaries provide quality jobs, benefits and a safe working environment. They allow medical cannabis patients to purchase safe medicine in a secure environment. Third, dispensaries can also provide much needed tax revenue to local governments, which can be dedicated to public safety and other quality-of-life issues." b) The California Public Defenders Association states, AB 1894 Page 18 "This bill is a commonsense approach to establishing statewide standards for the cultivation, manufacturing, testing, transportation, distribution, and sales of medical marijuana and medical marijuana products. Its even-handed approach protects the interests of patients, their caregivers, municipalities and medical marijuana businesses. It provides a measure of regulatory certainty to medical marijuana businesses and protects patients and citizens from unauthorized purveyors of medical marijuana. Moreover, by barring local law enforcement from participating in federal harassment of legitimate medical marijuana businesses, this bill protects California citizens, especially the ill and infirm." 5)Arguments in Opposition : a) According to the California Narcotic Officers' Association , "This bill will open the door to virtual unfettered trafficking in so-called medical marijuana. AB 1894 contemplates vesting jurisdiction over commercial medical marijuana in the Department of Alcoholic Beverage Control. There is no little irony in the selection of the Department of Alcoholic Beverage Control as the administering agency for the medical marijuana trade. We know of no other area of law where an agency charged with regulating recreational substances such as alcohol is also given portfolio over matters which are alleged to be medical. The challenges faced by the Department of Alcoholic Beverage Control in carrying its current mandate are daunting; to now add an entirely different subject matter are to their responsibilities is simply overwhelming. In its present form, AB 1894 will undermine local governments' ability to take action to remove problem marijuana stores from their communities. Instead, any effort to remove a problem location would be the virtual exclusive province of the Department of Alcoholic Beverage Control. Those of us who are familiar with the attenuated process that the Department of Alcoholic Beverage Control requires when they are attempting to close problem bars or liquor stores can take cold comfort from the lengthy process that will be entailed to remove a problem marijuana outlet." AB 1894 Page 19 b) The International Faith Based Coalition states, "As inner-city pastors, we have already seen the devastating impact of the overconcentration of liquor stores in our communities. To permit the same agency that has allowed the overconcentration of liquor stores to now serve as an expeditor of marijuana stores in our communities is simply unacceptable. "Pastors in under-served communities are on the front lines of extraordinary social challenges, many of which are occasioned by the soft bigotry of remote institutions. We believe that AB 1894 will result in our communities - which are fragile under the best of circumstances - being forced to bear the brunt of unbearable burdens. Marijuana stores are a blight on our communities, they are magnets for criminal activities and AB 1894 would allow the state to impose them on us and prevent us from closing them." 6)Related Legislation : SB 1262 (Correa) would require the State Department of Public Health to license dispensing facilities and cultivation sites that provide, process, and grow marijuana for medical use. SB 1262 is pending hearing in the Senate Business, Professions and Economic Development Committee. 7)Prior Legislation : a) AB 473 (Ammiano) of the current legislative session would have created the Division of Medical Marijuana Regulation and Enforcement in order to regulate the cultivation, manufacture, testing, transportation, distribution, and sale of medical marijuana. AB 473 failed passage on the Assembly floor. b) AB 604 (Ammiano) of the current legislative session, was gutted and amended from a different subject matter and would have enacted the Medical Cannabis Regulation and Control Act. AB 604 was never heard by the Senate Public Safety Committee. c) AB 2312 (Ammiano), of the 2011-12 Legislative Session, would have established the Medical Marijuana Regulation and Control Act, authorizing local taxes on medical cannabis and creating a board to regulate the medical cannabis AB 1894 Page 20 industry. AB 2312 was never heard by the Senate Committee on Business, Professions and Economic Development. d) AB 1300 (Blumenfield), Chapter 196, Statutes of 2011, provides that a local government entity may enact an ordinance regulating the location, operation or establishment of a medical marijuana cooperative or collective; authorizes local government entity to enforce such ordinances through civil or criminal remedies and actions; and authorizes a local government entity to enact any ordinance that is consistent with the Medical Marijuana Program. AB 1300 did not directly regulate medical marijuana facilities. e) SB 626 (Calderon), of the 2011-12 Legislative Session, would have required the Board of Equalization (BOE) to establish a nine-member task force to conduct a study to determine ways to enhance collections of sales and use taxes on retail sales of marijuana and ensure proper regulation of the cultivation, transportation, and distribution of marijuana and marijuana products. SB 626 was held on the Senate Appropriations Committee's Suspense File. f) AB 390 (Ammiano), of the 2009-10 Legislative Session, would have legalized the possession, sale, cultivation and other conduct relating to marijuana and required ABC to administer and enforce the terms of legalized marijuana. AB 390 passed this Committee and was never heard by the Assembly Committee on Health. g) SB 1098 (Migden), of the 2007-08 Legislative Session, would have required the State Board of Equalization to administer a tax amnesty program, as specified, for medical marijuana dispensaries, as defined. SB 1098 was never voted on by the Senate Revenue and Taxation Committee. h) SB 420 (Vasconcellos) Chapter 875, Statutes of 2003, established the Medical Marijuana Program Act, a statewide, voluntary program for the issuance of identification cards to identify persons authorized to engage in the medical use of marijuana under the Compassionate Use Act. i) Proposition 215, of the November 1996 General Election, prohibits prosecution for the possession and cultivation of AB 1894 Page 21 cannabis by a patient or a patient's primary caregiver with a physician's written or oral recommendation. REGISTERED SUPPORT / OPPOSITION : Support California Cannabis Industry Association California Norml California Public Defenders Association City of Oakland Drug Policy Alliance Opposition Association for Los Angeles Deputy Sheriffs Association of Orange County Deputy Sheriffs California Fraternal Order of Police California Narcotic Officers' Association California Police Chiefs Association California State Sheriffs' Association International Faith Based Coalition League of California Cities Long Beach Police Officers Association Los Angeles County Professional Peace Officers Association Los Angeles Police Protective League Patient Advocacy Network Riverside Sheriffs Association Sacramento County Deputy Sheriffs Association Santa Ana Police Officers Association Smart Approaches to Marijuana Analysis Prepared by : Sandy Uribe / PUB. S. / (916) 319-3744