BILL ANALYSIS                                                                                                                                                                                                    



          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 11, 2016   |Consultant: Brendan McCarthy    |
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          *********** 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  
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          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.
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