BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair SB 1283 (Galgiani) - Controlled substances. Amended: May 6, 2014 Policy Vote: Public Safety 7-0 Urgency: No Mandate: Yes Hearing Date: May 19, 2014 Consultant: Jolie Onodera This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 1283 would do the following: Make the use or possession of a specified synthetic cannabinoid compound or derivative, or specified synthetic stimulant compound or derivative, a crime, subject to graduated penalties for repeated offenses. Request the Luskin School of Public Affairs, or require the Judicial Council to contract with another entity, to design an evidence-based education program and treatment model for participation in by individuals convicted of these crimes. Authorize the Judicial Council to consult with the Department of Health Care Services (DHCS), during the approval and implementation process. Revise the definition of "nonviolent drug possession offense" to include the misdemeanor offense of using or possessing a synthetic cannabinoid or synthetic stimulant compound, as specified. Fiscal Impact: Non-reimbursable local enforcement costs offset to a degree by fine revenue for infraction and misdemeanor convictions. Unknown, but potentially significant one-time costs (General Fund) for the Luskin School (UCLA) to design the program and treatment model. To the extent the Judicial Council contracts out with another entity, one-time costs of $115,000 (General Fund) for staff time to develop a proposal and grant contract. Unknown, potentially major costs to the courts to administer the post-conviction treatment program. Assuming 300 cases to 1,450 cases (5 to 25 cases per county) statewide, annual costs are estimated in the range of $1.1 million to $5.1 million (General Fund*). To the extent the participant caseload is greater, costs could be significantly higher. SB 1283 (Galgiani) Page 1 Minor costs to DHCS to provide consultation services during program approval and implementation process. *Trial Court Trust Fund Background: Existing law provides that the sale, distribution, or possession for sale of specified synthetic cannabinoid compounds or derivatives, or synthetic stimulant compounds or derivatives, to any person is a misdemeanor punishable by imprisonment in a county jail not exceeding six months, by a fine not exceeding $1,000, or by both that fine and imprisonment. However, there is no similar prohibition on the use or possession of these compounds. A recent article in Forbes reported on the treatment of 40 people in Texas emergency departments over a 48-hour period for overdoses of the synthetic cannabinoid product called K2. According to the article, "These products are not marijuana but rather herbs that are sprayed with solutions containing one or more research chemicals that bind to the same brain receptors as the active constituents in marijuana, or cannabis. For this reason, they are more properly called synthetic cannabinoids. They continue to be sold under names such as K2, Spice, and Gorilla Dro Po-Po, among others?The risks of these products are related to the fact that they have more intense effects and lack the constellation of psychoactive and calming chemicals naturally present in cannabis." (Cluster of Texas ER Visits From K2 Synthetic Marijuana, David Kroll, Forbes, May 4, 2014) This bill seeks to impose penalties, and provide a means for subsequent education and treatment, for those convicted of the personal possession and/or use of these dangerous substances. Proposed Law: This bill does the following: Makes the use or possession of a specified synthetic cannabinoid or synthetic stimulant a crime, subject to following penalties: o For a first offense, an infraction punishable by a fine not exceeding $250. o For a second offense, an infraction punishable by a fine not exceeding $250 or a misdemeanor punishable by imprisonment in a county jail not exceeding six months, a fine not exceeding $500, or by both that fine and imprisonment. o For a third or subsequent offense, a misdemeanor SB 1283 (Galgiani) Page 2 punishable by imprisonment in a county jail not exceeding six months, or by a fine not exceeding $1,000, or by both that fine and imprisonment. Requests the Luskin School of Public Affairs at UCLA, or requires the Judicial Council to contract with another entity, to design an evidence-based education program and treatment model for participation in by individuals convicted of these crimes. Requires the Judicial Council to approve the program upon a specified finding and assist courts in obtaining educational materials. Authorizes the Judicial Council to consult with the DHCS during the approval and implementation process. Provides that a defendant convicted of the crime created in this bill may elect to participate in the program and have his or her execution of sentence stayed, as specified. Provides that a defendant convicted of this crime who was granted probation and required to participate in a drug treatment program but did not successfully complete the program shall be presumed eligible for participation in any available drug court program. Revises the definition of "nonviolent drug possession offense" to include the misdemeanor offense of using or possessing a synthetic cannabinoid or synthetic stimulant compound. Related Legislation: AB 486 (Hueso) Chapter 656/2011 made it a crime, punishable by imprisonment in a county jail not exceeding 6 months, or by a fine not exceeding $1,000, or both, to sell, dispense, distribute, furnish, administer, or give, to offer to sell, dispense, distribute, furnish, administer, or give, or to possess for sale, any synthetic stimulant compound or any specified synthetic stimulant derivative. SB 420 (Hernandez) Chapter 420/2011 makes it a misdemeanor to sell, dispense, distribute, furnish, administer, or give, or offer to sell, dispense, distribute, furnish, administer, or give, or possess for sale any synthetic cannabinoid compound or any synthetic cannabinoid derivative. Staff Comments: By creating a new crime, this bill creates a state-mandated local program, resulting in non-reimbursable local enforcement costs offset to a minor degree by fine revenue. SB 1283 (Galgiani) Page 3 This bill requests the Luskin School of Public Affairs at the UCLA to design, or designate another entity to design, an evidence-based education program and treatment model for individuals convicted of the crimes created in this bill. Without specific details about the program requirements, the UC has indicated that the amount of funding potentially required to design the program is unknown but has indicated it cannot conduct this work without a dedicated source of funding since such a program does not currently exist at the Luskin School. In order for the campus to conduct such a program, approval would first need to be obtained. Additional workload would be required to establish a Memorandum of Understanding between the involved stakeholders would also need to be established. To the extent the Luskin School does not comply with the request to design the program, the Judicial Council is required to contract with another entity to design the program and treatment model. The Judicial Council has indicated about $115,000 in one-time costs for staffing to develop and oversee a request for proposal (RFP) process, and award funds to the chosen contractor to design the program. The Judicial Council has indicated the court staff time to implement the treatment program will exceed the fine revenues collected. Based on the cost of one court's specialty DUI program, the cost per participant is $3,540. It is unknown how many convictions under the new crime created in this bill will occur each year, and of those convictions, how many individuals would opt to participate in the program. To the extent five to 25 cases per county (300-1,450 cases statewide) participate, annual costs are estimated in the range of $1.1 million to $5.1 million. Because this bill amends the Substance Abuse and Crime Prevention Act of 2000, that was enacted by Proposition 36 (2000), this bill requires a 2/3 vote of both houses of the Legislature for passage. Recommended Amendments: Staff recommends the following technical amendments: 1. On page 3, in line11, delete "possess" and replace with "possesses" SB 1283 (Galgiani) Page 4 2. On page 5, in line 25, delete "possess" and replace with "possesses" 3. On page 5, in line 33, after "five" insert "hundred"