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 23, 2014      Consultant: Jolie Onodera
          
          SUSPENSE FILE. AS AMENDED.
          
          
          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 (as approved on May 23, 2014): 
              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.   








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              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  








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                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. 








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          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.

          Committee amendments do the following:
             1.   On page 3, in line11, delete "possess" and replace with  
               "possesses"
             2.   On page 5, in line 25, delete "possess" and replace with  
               "possesses"
             3.   On page 5, in line 33, after "five" insert "hundred"
             4.   Delete the requirement for the court to administer an  
               escrow account for program participants.
             5.   Delay implementation of the bill's provisions to January  
               1, 2016.








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