BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 26 (Jones-Sawyer) - Medical cannabis
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|Version: August 1, 2016 |Policy Vote: B., P. & E.D. 7 - |
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|Urgency: No |Mandate: Yes |
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|Hearing Date: August 8, 2016 |Consultant: Brendan McCarthy |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: AB 26 would require medical cannabis license
applicants with 20 or more employees to implement an employee
training program.
Fiscal
Impact: The fiscal estimates below are subject to a good deal
of uncertainty. Currently, none of the medical cannabis
licensing authorities have begun issuing licenses. Thus, the
number of entities that each licensing authority will ultimately
license is unknown. Similarly, the number of providers of
employee training programs required under the bill is unknown.
Therefore, the cost estimates to approve and oversee the
employee training program providers authorized in the bill is
subject to uncertainty. The costs to implement the bill's
requirements would ultimately be paid for by licensees or
third-party training program providers. Currently, the start-up
activities of licensing entities are being paid for out of a $10
million loan from the General Fund, until licensing revenues are
AB 26 (Jones-Sawyer) Page 1 of
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received.
One-time costs of $540,000 and ongoing costs of $500,000 for
the Bureau of Medical Cannabis to establish regulations,
review and approve employee training programs (either provided
by the licensee directly or by a third-party provider), and
audit dispensary, transporter, and testing laboratory
licensees to ensure that they are in compliance with the
requirement to provide an employee training program (Medical
Cannabis Regulation and Safety Act Fund).
Ongoing costs of $220,000 per year for the Department of
Public Health to establish regulations, review and approve
employee training programs (either provided by the licensee
directly or by a third-party provider), and audit manufacturer
licensees to ensure that they are in compliance with the
requirement to provide an employee training program (Medical
Cannabis Regulation and Safety Act Fund).
Ongoing costs up to $500,000 per year for the Department of
Food and Agriculture to establish regulations, review and
approve employee training programs (either provided by the
licensee directly or by a third-party provider), and audit
cultivator licensees to ensure that they are in compliance
with the requirement to provide an employee training program
(Medical Cannabis Regulation and Safety Act Fund).
Background: Under recently enacted law, the state will begin licensing and
regulating the medical cannabis industry for the first time. The
Bureau of Medical Cannabis Regulation will license and regulate
medical cannabis dispensaries, transporters, and testing
laboratories. The Department of Public Health will begin
licensing and regulating medical cannabis manufacturers. The
Department of Food and Agriculture will begin licensing and
testing cultivators. Each of those licensing entities is
currently in the process of developing their respective
licensing program and implementing regulations. Once regulations
have been adopted, entities in each of those areas
(dispensaries, cultivators, etc.) will be required to apply for
and receive a permit from their respective licensing entity to
remain in business.
AB 26 (Jones-Sawyer) Page 2 of
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Proposed Law:
AB 26 would require medical cannabis license applicants with
20 or more employees to implement an employee training program.
Specific provisions of the bill would:
On or after July 1, 2018, require any medical cannabis license
applicant with 20 or more employees to attest that the
applicant will implement an employee training program approved
by the licensing authority;
On or after July 1, 2018, require a licensing entity to deny
an application if an applicant with 20 or more employees does
not attest that the applicant will implement an employee
training program approved by the licensing authority;
Require a licensee to implement an employee training program
that includes information on compliance with the requirements
of current law regarding medical cannabis regulation;
Authorize a licensee to employ or contract with a third-party
provider to provide the employee training program;
Require each licensing entity to establish standards for the
approval of employee training programs;
Require the standards to prohibit the approval of an employee
training program provided by or through an apprenticeship
program approved by the Division of Apprenticeship standards;
Authorize a licensing entity to approve a labor union as a
third-party provider, but not limit licensing entities to
approving only labor unions as third-party providers;
Require a licensing entity to revoke the license of a licensee
with more than 20 employees that does not implement an
employee training program within one year of licensure;
Require licensing entities to charge a fee to approve an
employee training program.
Related
Legislation: AB 266 (Bonta, Cooley, Jones-Sawyer, Lacky, and
Wood, Statutes of 2015), AB 243 (Wood, Statutes of 2015), and SB
643 (McGuire, Statutes of 2015) established the Medical
Marijuana (now Cannabis) Regulation and Safety Act, which
provides for the licensure and regulation of commercial medical
marijuana in the state.
There are several followup bills to the legislation from last
year, including this bill, AB 1575 (Bonta), AB 2385
(Jones-Sawyer), AB 2672 (Bonilla), and SB 837 (Committee on
Budget and Fiscal Review).
AB 26 (Jones-Sawyer) Page 3 of
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Staff
Comments: As noted above, the number of overall licensees under
the state's new system for resulting medical cannabis is
unknown. In addition, it is unknown how many licensees would
elect to create their own employee training program and go
through the process of having that program approved by a
licensing entity, versus simply contracting with a third-party
provider to provide the employee training.
The only costs that may be incurred by a local agency relate to
crimes and infractions. Under the California Constitution, such
costs are not reimbursable by the state.
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