BILL ANALYSIS Ó AB 243 Page 1 Date of Hearing: May 20, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 243 (Wood) - As Amended April 22, 2015 ----------------------------------------------------------------- |Policy |Agriculture |Vote:|6 - 2 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Environmental Safety and Toxic | |6 - 0 | | |Materials | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill establishes a new regulatory regime for the cultivation of marijuana, based on the current pilot project conducted by the State Water Resources Control Board (WRCB) and the Department of Fish and Wildlife (DFW), to address environmental impacts and expand enforcement efforts statewide. Specifically, this bill: AB 243 Page 2 1)Requires cities and counties, by July 1, 2016, to adopt an ordinance to implement the requirements of this bill, or adopt a resolution to opt out of being the responsible entity for implementing the requirements of the bill; and requires the Governor to designate an appropriate state agency to implement the requirements of the bill in each city and county that opts out of responsibility. 2)Requires all qualified persons associated with legal medical marijuana cultivation to obtain a permit from the local designated agency or state agency that specifies the location and number of plants authorized to be grown at the location; and authorizes the relevant agency to charge an administrative fee to cover the costs of permit issuances. 3)Limits the maximum number of plants that may be authorized at a site to 99; prohibits the use of lights that exceed 1,200 watts per 100 square feet of cultivation; prohibits outdoor marijuana cultivation from being within 100 feet of a home or school, but authorizes a city or county to increase that distance to a mile; and requires cultivation sites to be enclosed with a six foot tall fence and out of sight from the public. 4)Limits the number of plants at a residential home to 6 unless the city or county adopts a higher limit; prohibits residential cultivation from being within 100 feet of a school, but authorizes a city or county to increase that distance to one mile; and requires buildings where marijuana is cultivated or stored to be properly secured. 5)Requires relevant agencies to distribute zip ties for marijuana plant identification and authorizes the agencies to charge administrative fees to cover the cost of issuing zip AB 243 Page 3 ties and monitoring, tracking, and inspecting the plants; requires a copy of a valid state-issued medical marijuana ID card or physician recommendation to be displayed at cultivation sites. 6)Exempts qualified patients cultivating marijuana under the Compassionate Use Act of 1996 if they are cultivating for personal medical use and do not sell, distribute, donate, or otherwise provide marijuana to any other person or entity, and exempts primary caregivers for medical use for up to 5 qualified patients. 7)Authorizes the relevant agencies to revoke or suspend a permit, deny issuance of a permit or impose fines for violations; permits cities and counties to enact more restrictive ordinances, including complete prohibition, on marijuana cultivation, and does not preclude any existing city or county ordinances on cultivation of marijuana. 8)Requires regional water boards and WRCB to address waste discharges resulting from marijuana cultivation, including establishing new waste discharge requirements. FISCAL EFFECT: Annual GF costs in excess of $6 million to WRCB and DFW to expand enforcement efforts and implementation. Eventually costs would be funded from permit fees. COMMENTS: 1)Purpose. According to the author, medical marijuana growers AB 243 Page 4 operate in a gray area between conflicting state and federal law, which has precluded the establishment of regulations to protect vulnerable watersheds and prevent other environmental damage. This bill is intended to establish basic regulations for the cultivation of medical marijuana, including a program to track medical marijuana plants. The author believes tracking plants will allow state and local law enforcement to quickly identify legal and illegal plants, and the regulatory structure will help prevent environmental damage, particularly to the North Coast. According to ArcView Group, a marijuana research and investment firm, marijuana legalization advocacy groups have already planned for legalization ballot initiatives in at least six states in 2016, including California. Growth in demand for legal marijuana has led to substantial increases in cultivation. The US Forest Service indicates illicit and unregulated marijuana cultivation has led to uncontrolled use of pesticides, logging, illegal waterway diversions, habitat destruction, and toxic waste discharges in Northern California. 2)Current Pilot. In response to a rapid increase in marijuana cultivation in recent years, WRCB and DFW developed a pilot project to devise and enforce environmental regulations with respect to medical marijuana cultivation. The Budget Act of 2014 appropriated $1.8 million to WRCB and $1.5 million to DFW for the creation of a multi-disciplinary Marijuana Task Force and priority-driven approach to address damage to natural resources from marijuana cultivation on private land and high conservation value public lands. According to the January 2015 joint report to the Legislature, WRCB and DFW focused the projects initial efforts along the north coast and central valley. The pilot project has four primary components: (i) development AB 243 Page 5 of a regulatory program; (ii) targeted enforcement in high value watersheds; (iii) education and outreach to cultivators about best practices; and (iv) multi-agency coordination at the state level. WRCB is in the process of developing and promulgating waste discharge permits for marijuana cultivators, which will eventually require all cultivators to pay a fee and comply with certain terms, including water conservation measures, site operations plans, fuel storage and maintenance, appropriate stream crossings and growing pads, and fertilizer and pest control use. Analysis Prepared by:Joel Tashjian / APPR. / (916) 319-2081