BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 243


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          Date of Hearing:  May 20, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


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


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          |Policy       |Agriculture                    |Vote:|6 - 2        |
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          |             |Environmental Safety and Toxic |     |6 - 0        |
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          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:









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          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  








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            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  








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            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  








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            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