BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1894
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          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,  








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               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,  








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               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  








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               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  








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            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;









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             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.









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          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  








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            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  








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               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  








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            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.








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             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  
                  







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            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).)









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          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  








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            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  








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            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. 









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          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.








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            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,  








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               "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."








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                                                                  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
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               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  








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               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