BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 26 (Jones-Sawyer) - Medical cannabis ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: August 1, 2016 |Policy Vote: B., P. & E.D. 7 - | | | 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 11, 2016 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- *********** ANALYSIS ADDENDUM - SUSPENSE FILE *********** The following information is revised to reflect amendments adopted by the committee on August 11, 2016 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. AB 26 (Jones-Sawyer) Page 1 of ? Therefore, the cost estimates are 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 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). Author Amendments: Prohibit a licensee from being approved as a third-party provider of employee training. -- END --