BILL ANALYSIS Ó SENATE COMMITTEE ON HEALTH Senator Ed Hernandez, O.D., Chair BILL NO: AB 21 --------------------------------------------------------------- |AUTHOR: |Wood, Bonta, Cooley, Jones-Sawyer, and Lackey | |---------------+-----------------------------------------------| |VERSION: |January 15, 2016 | --------------------------------------------------------------- --------------------------------------------------------------- |HEARING DATE: |January 20, | | | | |2016 | | | --------------------------------------------------------------- --------------------------------------------------------------- |CONSULTANT: |Reyes Diaz | --------------------------------------------------------------- SUBJECT : Medical marijuana: cultivation licenses SUMMARY : Deletes a provision in current law that grants the Department of Food and Agriculture sole licensing authority for medical marijuana (MM) cultivation if a local government does not have land use regulations or ordinances regulating or prohibiting the cultivation of MM by March 1, 2016. Deletes a provision in current law that allows local governments to regulate or ban any MM activity, even by a qualified patient or a patient's primary caregiver. Existing law: 1)Prohibits criminal prosecution, pursuant to the Compassionate Use Act (CUA) of 1996, also known as Proposition 215, of a qualified patient with specified illnesses, or a patient's primary caregiver, for the possession or cultivation of MM upon the written or oral recommendation or approval of an attending physician. 2)Provides, pursuant to the Medical Marijuana Regulation and Safety Act (MMRSA), for the licensing and regulation by both state and local entities of MM and its cultivation. 3)Grants the Department of Food and Agriculture (DFA) sole licensing authority for MM cultivation applicants if a city, county, or city and county does not have land use regulations or ordinances regulating or prohibiting the cultivation of MM commencing March 1, 2016. 4)Exempts qualified patients and a patient's primary caregiver from obtaining state and local licenses or permits for the cultivation of marijuana for personal use or for use of the qualified patient if certain square footage requirements for AB 21 (Bonta) Page 2 of ? cultivation are met. 5)Provides that exemption from the license or permit requirement does not limit or prevent a city, county, or city and county from regulating or banning the cultivation, storage, manufacture, transport, provision, or other activity by the exempt person, or impair the enforcement of that regulation or ban. This bill: 1)Deletes a provision of existing law that grants DFA sole licensing authority for MM cultivation applicants if a city, county, or city and county does not have land use regulations or ordinances regulating or prohibiting the cultivation of MM by March 1, 2016. 2)Deletes a provision in existing law that allows local governments to regulate or ban any MM activity, even by a qualified patient or a patient's primary caregiver. 3)Makes technical changes. FISCAL EFFECT : This bill has been keyed nonfiscal. COMMENTS : 1)Author's statement. According to the author, AB 21 resolves an inadvertent drafting error contained in the MMRSA passed in 2015. Without AB 21, local jurisdictions would be required to pass land use regulations for MM cultivation by March 1, 2016, to maintain local control over MM cultivation, which was never the intention of MMRSA. By deleting this provision, cities and counties will have the same local control over MM cultivation as they do over all other MM licensing categories. AB 21 also resolves another drafting error contained in the MMRSA. The mistake endangers the ability for patients and their primary caregivers to gain access to their MM. Immediately once the mistakes came to light, Assemblymember Wood submitted a letter to the Assembly Journal committing to resolve both issues in 2016. AB 21 is a reflection of the commitment to give local governments more time to develop thoughtful MM regulations, as well as protecting the rights of patients and their primary caregivers. These clean-up measures reflect the deal struck amongst legislators and stakeholders last year, and represent the Legislatures' intention to provide a pathway for MM AB 21 (Bonta) Page 3 of ? businesses to comply with state laws as well as to provide patients with proper consumer protections. 2)CUA. Since the approval of the CUA by voters in 1996, state law has allowed Californians access to MM, and prohibits punitive action against physicians for making MM recommendations. The CUA established the right of patients to obtain and use MM to treat specified illnesses, including any illness for which it provides relief. The CUA prohibits prosecution for cultivating or possessing MM for qualified patients and their primary caregivers. Additionally, the CUA exempts qualified patients and their primary caregivers from California drug laws prohibiting possession and cultivation of MM. 3)MMRSA. The package of bills that comprised the MMRSA, which contained language drafted with input from the Governor's office, Senate and Assembly members and staff, and stakeholders, were: AB 243 (Wood, Chapter 688, Statutes of 2015), AB 266 (Bonta et al, Chapter 689, Statutes of 2015), and SB 643 (McGuire, Chapter 719, Statutes of 2015). The Governor signed these bills on October 9, 2015. In a letter to the Assembly Journal dated September 11, 2015, Assemblymember Wood expressed his intent to introduce clean-up legislation in the 2016 Legislative Session to address inadvertent drafting errors contained in the MMRSA bills. The letter stated: "I plan to introduce cleanup legislation in the 2016 Legislative Session to strike Section 4 of 11362.777 from the Health and Safety Code, strike out the last sentence in Section 11362.777(g), and clarify in Section 12029(d) of the Fish and Game Code that fees shall only be assessed on cannabis cultivation sites and not on all entities, which was inadvertently kept in AB 243 (2015)." Section 11362.777(c)(4) requires local governments to pass MM ordinances or regulations by March 1, 2016, and the last sentence in Section 11362.777(g) allows local governments to ban all MM activity, even by qualified patients and their primary caregivers. 4)Related legislation. AB 26 (Jones-Sawyer) requires a state licensee to institute and maintain a training program for the AB 21 (Bonta) Page 4 of ? licensee's agents and employees regarding compliance with the MMRSA, and would require that an application for state licensure include a detailed description of the applicant's program. AB 26 is set for hearing in the Assembly Appropriations Committee on January 21, 2016. AB 1575 (Bonta et al) is clean-up legislation for the MMRSA. AB 1575 is pending referral in the Assembly. 5)Prior legislation. SB 643 (McGuire), AB 243 (Wood), and AB 266 (Bonta et al) were part of a package of bills that comprised the MMRSA, which provides for the licensing and regulation by both state and local entities of MM and its cultivation. SB 1262 (Correa, of 2014) was very similar to a previous version of AB 266 and SB 643, and would have created a Bureau of MM Regulation within the Department of Consumer Affairs (DCA). SB 1262 was held on suspense in the Assembly Committee on Appropriations. AB 1894 (Ammiano of 2014) would have established the Medical Cannabis Regulation and Control Act and created the Division of Medical Cannabis Regulation and Enforcement within the Department of Alcoholic Beverage Control (ABC) for the purpose of registering people for the cultivation, manufacture, testing, transportation, storage, distribution, and sale of MM within the state subject to specified exemptions for a city or county; provided that the ABC director and its employees who administer and enforce provisions of the Act are peace officers; required the ABC to work with law enforcement entities to implement and enforce the rules and regulations regarding MM and to take appropriate action against businesses and individuals that fail to comply with the law; and authorized a board of supervisors of a county and the governing body of a city to levy, increase, or extend transactions and use taxes on the retail sale of or storage, use, or other consumption of MM or MM-infused products. AB 1894 failed on the Assembly Floor. AB 604 (Ammiano of 2013) was substantially similar to AB 1894. AB 604 failed in the Senate Committee on Public Safety. SB 439 (Steinberg of 2013) would have exempted MM collectives and cooperatives from criminal liability for possession, cultivation, possession for sale, sale, transport, AB 21 (Bonta) Page 5 of ? importation, and furnishing MM; also clarified Medical Board of California enforcement of MM recommendations, what constitutes unprofessional conduct, and the bar on the corporate practice of medicine. On April 21, 2014, SB 439 was amended to a new purpose. AB 473 (Ammiano of 2013) would have enacted the MM Regulation and Control Act, and created a Division of MM Regulation and Enforcement in the ABC to regulate the cultivation, manufacture, testing, transportation, distribution, and sale of MM. AB 473 failed passage on the Assembly Floor. AB 2312 (Ammiano of 2012) would have established a nine-member Board of MM Enforcement within DCA to regulate the MM industry and to collect fees from MM businesses to be deposited into a new MM Fund. AB 2312 would have authorized local taxes on MM up to five percent. AB 2312 was never heard in the Senate Committee on Business, Professions, and Economic Development. AB 2465 (Campos of 2012) would have made patient and primary caregiver Medical Marijuana Identification Cards (MMICs) mandatory and required MM collectives to keep copies of members' MMICs. AB 2465 was never heard in the Assembly Committee on Public Safety. SB 1182 (Leno of 2012) would have exempted a MM cooperative or collective that operates within the Attorney General's guidelines from being subject to prosecution for MM possession or commerce, as specified; exempted such an entity and its employees, officers, and members from being subject to prosecution for MM commerce because the entity or its employees, officers, or members received compensation for actual expenses incurred in carrying out activities in compliance with the guidelines. SB 1182 died on the Senate Inactive File. AB 1300 (Blumenfield, Chapter 196, Statutes of 2011) permits a local government to enact an ordinance regulating the location, operation, or establishment of an MM cooperative or collective. Authorizes a local government to enforce such ordinances through civil or criminal remedies and actions; authorizes the local government to enact any ordinance that is consistent with the Medical Marijuana Program (MMP). AB 1017 (Ammiano of 2011) would have made the cultivation of AB 21 (Bonta) Page 6 of ? marijuana, except as allowed by the MMP, punishable as a misdemeanor with a penalty of imprisonment in a county jail for a period of not more than one year. AB 1017 died on the Assembly Inactive File. 6)Support. The American Civil Liberties Union (ACLU) argues that the provision in current law that allows local governments to regulate or ban any MM activity may be misinterpreted to allow local jurisdictions to completely ban qualified and seriously ill patients from possessing or cultivating MM, which is in violation of the CUA. The Drug Policy Alliance (DPA) argues that the MMRSA did not intend to prohibit patients' abilities to provide their own medical care, and that it is urgent for the first bill of 2016 regarding MM to delete language that compromises patients' rights to self-care. The ACLU and DPA both argue that the California Supreme Court has not ruled on the question of whether local jurisdictions may completely ban qualified patients from possessing or cultivating MM, only on the question of whether such jurisdictions may ban dispensaries. The Fresno Cannabis Association argues this bill is needed because the inadvertent inclusion of the provision giving local governments the authority to ban all MM activity negatively affects thousands of MM patients. 7)Support if amended. The California Police Chiefs Association, California State Association of Counties, League of California Cities, Rural County Representatives of California, and Urban Counties of California support this bill if it is amended to include language that gives local governments the authority to exercise their police power authority under Article XI, Section 7 of the California Constitution. . SUPPORT AND OPPOSITION : Support: American Civil Liberties Union Drug Policy Alliance Fresno Cannabis Association Oppose: None received. -- END -- AB 21 (Bonta) Page 7 of ?