BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 243


                                                                    Page  1


          Date of Hearing:  April 28, 2015


           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS


                                    Alejo, Chair


          AB  
                        243 (Wood) - As Amended  April 22, 2015


          SUBJECT:  Medical marijuana cultivation


          SUMMARY:  Establishes new requirements for marijuana  
          cultivation, requires medical marijuana cultivation to meet the  
          requirements of state law, and requires coordination between the  
          state and local governments to enforce medicinal marijuana  
          cultivation.  Specifically, this bill:  


             1)   States the intent of the Legislature that the  
               multiagency task force, the Department of Fish and Wildlife  
               (CDFW), and the State Water Resources Control Board (Water  
               Board) pilot project address the environmental impacts of  
               cannabis cultivation and continue enforcement efforts on a  
               statewide and permanent basis to ensure the reduction of  
               the adverse impacts of marijuana cultivation on water  
               quality and fish and wildlife throughout the state. 



             2)   Requires indoor and outdoor medical marijuana  
               cultivation to be conducted in accordance with state and  
               local laws and best practices.



             3)   Requires the State Board of Forestry and Fire  
               Protection, CDFW, the Water Board, the California regional  








                                                                     AB 243


                                                                    Page  2


               water quality control boards (regional water boards), and  
               traditional state law enforcement agencies to address  
               environmental impacts of medical marijuana cultivation and  
               to coordinate with local governments on enforcement  
               efforts.



             4)   Requires a county, city, or city and county, by July 1,  
               2016, to adopt an ordinance to implement the requirements  
               of the bill, or to adopt a resolution to opt out of being  
               the responsible entity for implementation of the  
               requirements of the bill. 



             5)   Requires the Governor to designate an appropriate state  
               agency to implement the requirements of the bill in each  
               county, city, or city and county that adopts a resolution  
               opting out of responsibility for implementation. 



             6)   Requires all qualified medicinal marijuana patients and  
               primary care givers cultivating marijuana pursuant to the  
               Compassionate Use Act of 1996, and all qualified persons  
               associated with legal medicinal marijuana cultivation, to  
               obtain a permit to cultivate marijuana from the sheriff,  
               chief of police, or other entity designated by the county,  
               city, or city and county, or designated state agency, that  
               specifies location and number of plants grown at that  
               location. Authorizes the county, city, or city and county  
               or designated state agency to charge an administrative fee  
               to cover the costs of permit issuance.



             7)   Requires the county, city, or city and county to  
               establish the limit on the number of plants that may be  
               cultivated on an outdoor parcel or indoor facility in areas  
               zoned for marijuana cultivation. Sets, where a designated  
               state agency is the responsible entity for implementation,  








                                                                     AB 243


                                                                    Page  3


               the limit on marijuana plants at 99.  



             8)   Prohibits outdoor marijuana cultivation from being  
               within 100 feet of any occupied legal residential home or  
               of a school offering kindergarten and grades 1-12, and  
               authorizes a county, city, or city and county to increase  
               the distance to up to one mile. 



             9)   Requires all outdoor marijuana cultivations to be  
               securely fenced with a fence not less than six feet tall,  
               to be out of sight from the public, and to use lights that  
               do not exceed 1,200 watts per 100 square feet of  
               cultivation. 



             10)         Prohibits marijuana cultivated at a residential  
               home from exceeding the limit of plants established by the  
               county, city, or city and county. Sets, where a designated  
               state agency is the responsible entity for implementation,  
               the limit on marijuana plants at 6, unless the county,  
               city, or city and county adopts an ordinance setting a  
               higher limit for indoor cultivation. 



             11)         Prohibits indoor marijuana cultivation from being  
               within 100 feet of a school offering kindergarten and  
               grades 1-12, and authorizes a county, city, or city and  
               county to increase the distance to up to one mile. 



             12)         Requires all buildings where marijuana is  
               cultivated or stored to be properly secured. 











                                                                     AB 243


                                                                    Page  4


             13)         Requires the county, city, or city and county or  
               designated state agency to distribute zip ties for  
               marijuana plant identification, and authorizes the county,  
               city, or city and county or designated state agency to  
               charge an administrative fee to cover the costs of issuing  
               the zip ties, monitoring, tracking and inspecting the  
               plants.  



             14)         Requires a copy of a current and valid  
               state-issued medical marijuana ID card or physician  
               recommendation to be displayed at all cultivation sites. 



             15)         Authorizes the county, city, or city and county  
               or designated state agency to revoke or suspend a permit,  
               deny the issuance of a permit, or impose fines for a  
               violation.  



             16)         States that the requirements of this bill do not  
               apply to a qualified patient cultivating marijuana under  
               the Compassionate Use Act of 1996 if he or she cultivates  
               marijuana for his or her personal medical use and does not  
               sell, distribute, donate, or provide marijuana to any other  
               person or entity.  



             17)         States that the requirements of this bill do not  
               apply to a primary caregiver cultivating marijuana under  
               the Compassionate Use Act of 1996 if he or she cultivates  
               marijuana exclusively for the personal medical use of no  
               more than five specified qualified patients. 



             18)         States that the bill does not preclude a county,  
               city, or city and county from regulating or banning the  








                                                                     AB 243


                                                                    Page  5


               cultivation, possession, storage, manufacture, transport,  
               provision, distribution, donation, or sale of marijuana, or  
               any other activity or impair the enforcement of the same. 



             19)         States thatrequirements of the bill do not apply  
               to a county, city, or city and county that has an existing  
               ordinance pertaining to the cultivation of marijuana,  
               unless the county, city or city and county adopts an  
               ordinance to implement the requirements of the bill. 



             20)  Requires regional water boards and the Water Board to  
               address waste discharges resulting from medical marijuana  
               cultivation and associated activities, including adopting a  
               general permit, establishing new waste discharge  
               requirements, or taking action under existing waste  
               discharge requirements. 



             21)  Requires regional water boards to include conditions to  
               address items such as:
                  a)        Site development and erosion control;
                  b)        Stream crossing installation;


                  c)        Soil damage;


                  d)        Water storage and use;


                  e)        Irrigation runoff;


                  f)        Fertilizers and soil;


                  g)        Pesticides and herbicides;








                                                                     AB 243


                                                                    Page  6




                  h)        Petroleum products and other chemicals;


                  i)        Cultivation-related waste; 


                  j)        Refuse and human waste; and,


                  aa)       Cleanup, restoration and mitigation.  


          EXISTING LAW:  


             1)   Establishes the Compassionate Use Act of 1996  
               (Proposition 215), which authorizes the prescription,  
               possession and use of medicinal marijuana. (Health and  
               Safety Code (H&S) §11362.5)



             2)   Specifies that local governments may adopt local  
               ordinances that regulate the location, operation, or  
               establishment of a medical marijuana cooperative or  
               collective. (H&S § 11362.83) 



             3)   Pursuant to the Porter-Cologne Water Quality Control  
               Act, governs water quality regulation in California by  
               establishing a comprehensive program to protect water  
               quality and the beneficial uses of water. (Water Code (WC)  
               § 13000, et seq.)



             4)   Requires specified persons to file a report with the  
               appropriate regional water board on waste discharge that  
               could affect the quality of the waters of the state, other  








                                                                     AB 243


                                                                    Page  7


               than into a community sewer system. (WC § 13260)



             5)   Permits the Water Board or regional water boards to  
               waive discharge reporting requirements if the waiver is  
               consistent with any applicable state or regional water  
               quality control plan and is in the public interest. (WC §  
               13269)
          FISCAL EFFECT:  Unknown. 


          COMMENTS:  


          Need for the bill: According to the author, "For the past 18  
          years, medical marijuana growers and medical marijuana patients  
          have lived in a gray area where state and federal law are in  
          direct conflict, which has prevented the establishment of  
          reasonable environmental protections to already impacted  
          watersheds.

          "Currently, there are very few environmental regulations for  
          medical marijuana growers, which have caused unimaginable  
          environmental damages to the North Coast region of the State...   


          "The bill would also put in place basic regulations around the  
          cultivation of medical marijuana.  AB 243 establishes a program  
          that allows for the tracking of medical marijuana plants.  This  
          will assist local law enforcement identify legal plants from the  
          illegal ones quickly.  The program allows an entity, designated  
          by the local jurisdiction, to issue unique identifiers, such as  
          a zip-tie, to farmers that seek to cultivate medical marijuana.   
          A unique identifier would be issued for each plant that the  
          farmer seeks to cultivate.      

          "The Marijuana Watershed Protection Act, or AB 243, seeks to  
          create a regulatory structure around a product that has never  
          been regulated in our State."  

          What's the problem: Many illegal, clandestine marijuana  








                                                                     AB 243


                                                                    Page  8


          cultivation operations are tucked away in California's sprawling  
          forest lands, mostly in Mendocino and Humboldt Counties. The  
          United States Forest Service describes the extensive and  
          alarming damage caused by "trespass grows" as having devastating  
          impacts on the environment. The damages are due to illicit and  
          uncontrolled use of pesticide and rodenticide applications;  
          uncontrolled logging; wildlife habit destruction; illegal stream  
          and river diversions for irrigation; and, chemical and solid  
          waste discharges. 


          The Water Board and the CDFW acknowledge that marijuana site  
          cultivation on private and public lands cause enormous adverse  
          effects to wildlife and their habitat. Marijuana cultivation  
          activities can cause erosion and stream diversion. Unlawful  
          water diversions can severely limit the amount of water  
          available to people and wildlife, which is exacerbated during  
          California's severe drought. 


          (Lack of) marijuana regulation: Under current state law, there  
          are no agricultural or environmental requirements explicitly for  
          marijuana cultivation. Regulations for marijuana cultivation are  
          still in their nascence, likely given how relatively recently  
          medicinal marijuana became legalized in California.  


          According to the research article "Impacts of Surface Water  
          Diversions for Marijuana Cultivation on Aquatic Habitat in Four  
          Northwestern California Watersheds," which includes  
          contributions from CDFW, recent increases in the number and size  
          of marijuana cultivation sites appear to be, in part, a response  
          to ballot Proposition 215, the Compassionate Use Act (1996). In  
          spite of state-wide prevalence, there is not yet a clear  
          regulatory framework for the cultivation of marijuana, and from  
          an economic viewpoint there is little distinction between plants  
          grown for the black market and those grown for legitimate  
          medical use.
           
          According to ArcView Group, a San Francisco-based marijuana  
          research and investment firm, marijuana legalization "advocacy  
          groups have already planned for legalization ballot initiatives  








                                                                     AB 243


                                                                    Page  9


          in at least six states in 2016, including an Adult Use  
          initiative in California. Should an Adult Use legalization  
          initiative pass in California in 2016 the entire industry could  
          rapidly double in size." ArcView Group's report, "3rd Edition of  
          the State of the Legal Marijuana Markets," stated that the  
          "largest medical market in the country, California, is no longer  
          a model for medical cannabis legalization because of its lack of  
          statewide regulation."

          The exponential growth in the demand for legal marijuana has  
          pushed the demand for cultivation, thereby pushing the demand  
          for regulation. In theory, regulations for legal cultivation  
          will bring the illicit marijuana grows out of the shadows, which  
          would help prevent the environmental problems marijuana  
          cultivation currently present. 


          Current efforts addressing environmental impacts of marijuana  
          cultivation: The Water Board and CDFW proposed through the  
          Governor's Office a pilot project to develop a focused  
          enforcement effort regarding medicinal marijuana growers on  
          private lands.  The pilot project arose, in part, out of the  
          rapid escalation of cannabis cultivation and proliferation of  
          cultivation sites, primarily in Northern California.  


          The Budget Act of 2014 (SB 852, Chapter 25, Statutes of 2014),  
          appropriated resources for both CDFW and the Water Board to  
          reduce environmental damage caused by marijuana cultivation on  
          private and high value state-owned public lands in California.   
          CDFW and the Water Board created a multi-disciplinary Marijuana  
          Task Force, and began implementing a priority-driven approach to  
          address the natural resources damages from marijuana cultivation  
          on private lands in northern California and on high conservation  
          value public lands.  


          According to the Water Board and CDFW's joint report to the  
          Legislature in January 2015, "The pilot project's initial effort  
          is focused in the geographic area where CDFW and the Water Board  
          have the greatest need, which are those counties covered by CDFW  
          Regions 1 (Del Norte, Siskiyou, Modoc, Humboldt, Trinity,  








                                                                     AB 243


                                                                    Page  10


          Shasta, Lassen, Mendocino, and Tehama), and Region 4 (Tuolumne,  
          Stanislaus, Mariposa, Merced, Madera, San Benito, Fresno,  
          Monterey, Kings, Tulare, San Luis Obispo, and Kern).  These  
          counties are covered by the Central Valley and North Coast  
          Regional Water Quality Control Boards, and the State Water  
          Resources Control Board's Division of Water Rights.  The pilot  
          project has four components:


            (1) the development of a regulatory program; 


            (2) targeted enforcement in high value watersheds; 


            (3) education and outreach to cultivators about best  
            management practices; and 


            (4) multi-agency coordination at the state and local level."





          Currently, the Water Board is in the process of promulgating a  
          conditional waiver of waste discharge requirements ('permit') in  
          both the North Coast and Central Valley Regions.  A conditional  
          waiver of waste discharge requirements will require all persons  
          engaged in the activity of cultivating cannabis to enroll in the  
          program, comply with terms and conditions and pay a fee.  While  
          the permits must undergo a public process before they can be  
          adopted by the respective regional water boards, they are  
          expected to contain such terms and conditions as, among others,  
          a site operations plan, proper fuel storage and maintenance,  
          appropriately sized and graded stream crossings, appropriately  
          graded grow and structure pads, guidelines for fertilizer use  
          and pest control and water conservation measures.  


          Regional Water Boards: The Water Board has jurisdiction  
          throughout California to protect water quality by setting  








                                                                     AB 243


                                                                    Page  11


          statewide policy, and coordinating and supporting the regional  
          water board efforts. There are nine regional water quality  
          control boards that exercise rulemaking and regulatory  
          activities by water basins. 


          Though regional water boards have jurisdiction to oversee the  
          protection of water quality, regulate discharge, and permit, as  
          appropriate, waste discharges from various sources, not all are  
          doing so as it relates specifically to marijuana cultivation. AB  
          243 creates a new mandate on regional water boards to  
          specifically address specified conditions of marijuana  
          cultivation similarly to what the Central Valley and North Coast  
          Regional Water Quality Control Boards have accomplished under  
          the aforementioned pilot program. 


          Related legislation:


          AB 26 (Jones-Sawyer). Requires the Department of Alcoholic  
          Beverage Control to promulgate regulations that, among other  
          things, include requirements to protect the state's clean water  
          and environment, including, but not limited to, protections  
          related to land conversion, grading, water diversion and pond  
          development, and agricultural discharges. This bill is pending  
          before the Assembly Business & Professions and Health  
          Committees.





          AB 34 (Bonta). Enacts the Medical Cannabis Regulation and  
          Control Act, and would establish the Division of Medical  
          Cannabis Regulation to, among other things, consult with the  
          Department of Water Resources to adopt regulations to ensure  
          that commercial licensed cannabis activity does not threaten the  
          state's clean water and environment and is in compliance with  
          the California Environmental Quality Act. This bill is set to be  
          heard in the Assembly Business & Professions Committee on April  
          28, 2015. 








                                                                     AB 243


                                                                    Page  12







          AB 266 (Cooley). Establishes a Bureau of Medical Marijuana  
          Regulation to regulate marijuana cultivation, and, among other  
          things, would also establish the Special Account for  
          Environmental Enforcement to fund the enforcement of  
          environmental regulations relating to licensed cultivation  
          sites. This bill is set to be heard in the Assembly Business &  
          Professions and Assembly Labor & Employment Committees.





          Double referral:  This bill was double referred to the Assembly  
          Agricultural Committee, where it passed out on April 15, 2015,  
          on a 6 - 2 vote.  


          REGISTERED SUPPORT / OPPOSITION:


          Support


          Associated Students of Humboldt State Universality


          California Association of Water Agencies


          California Narcotic Officer's Association


          California Cattlemen's Association


          California Forestry Association









                                                                     AB 243


                                                                    Page  13



          California Trout


          Central Coast Forest Association


          Conscious Cannabis Ventures


          County of Mendocino, Office of the Sheriff-Coroner 


          Defenders of Wildlife


          Emerald Growers Association


          Heritage Associates 


          Humboldt Redwood Company


          Sierra Club California 


          Sonoma County Water Agency 


          The Nature Conservancy


          Trout Unlimited


          Trust for Public Land












                                                                     AB 243


                                                                    Page  14


          Opposition


          None on file. 


          Analysis Prepared  
          by:              Paige Brokaw / E.S. & T.M. / (916) 319-3965