BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 243


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          ASSEMBLY THIRD READING


          AB  
          243 (Wood)


          As Amended  June 1, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                |Noes                  |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Agriculture     |6-2   |Perea, Cooper,      |Gallagher, Grove      |
          |                |      |Dodd, Eggman,       |                      |
          |                |      |Irwin, Quirk        |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Environmental   |6-0   |Alejo, Gallagher,   |                      |
          |Safety          |      |Gonzalez, Gray,     |                      |
          |                |      |McCarty, Ting       |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Appropriations  |13-1  |Gomez, Bonta,       |Bigelow               |
          |                |      |Calderon, Daly,     |                      |
          |                |      |Eggman, Gallagher,  |                      |
          |                |      |Eduardo Garcia,     |                      |
          |                |      |Gordon, Holden,     |                      |
          |                |      |Quirk, Rendon,      |                      |
          |                |      |Weber, Wood         |                      |
          |                |      |                    |                      |
          |                |      |                    |                      |
           ------------------------------------------------------------------- 









                                                                       AB 243


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          SUMMARY:  This bill establishes a new regulatory regime for  
          medical marijuana cultivation (MMC), 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:


          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 this 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 MMC 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 outdoor MMC 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 six unless  
            the city or county adopts a higher limit; prohibits residential  
            MMC 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  








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            properly secured. 


          5)Requires relevant agencies to distribute unique identifiers for  
            marijuana plant identification and authorizes the agencies to  
            charge administrative fees to cover the cost of issuing unique  
            identifiers and monitoring, tracking, and inspecting the plants;  
            and, requires a copy of a valid state-issued medical marijuana  
            identification card or physician recommendation to be displayed  
            at cultivation sites.


          6)Exempts qualified patients MMC under the Compassionate Use Act  
            of 1996 (Proposition 215) 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 five 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 MMC, and does not  
            preclude any existing city or county ordinances on MMC.


          8)Requires regional water boards and WRCB to address waste  
            discharges resulting from MMC, including establishing new waste  
            discharge requirements. 


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, annual General Fund 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:  Proposition 215 provides certain legal protections for  








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          qualified patients and caregivers that possess or cultivate  
          marijuana.  In addition to Proposition 215, the Legislature passed  
          the Medical Marijuana Program Act, which extends certain legal  
          protections to those that collectively or cooperatively cultivate  
          marijuana for medical purposes.


          According to the author, medical marijuana growers 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 United  
          States 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.


          The pilot project, funded in the 2013-14 Budget, has four primary  
          components:  1) development of a regulatory program; 2) targeted  
          enforcement in high value watersheds; 3) education and outreach to  
          cultivators about best practices; and, 4) multi-agency  
          coordination at the state level.  WRCB is in the process of  
          developing and promulgating waste discharge permits for MMC, which  
          will eventually require all MMCs to pay a fee and comply with  
          certain terms, including water conservation measures, site  
          operations plans, fuel storage and maintenance, appropriate stream  








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          crossings and growing pads, and fertilizer and pest control use.




          Analysis Prepared by:                                               
                          Victor Francovich / AGRI. / (916) 319-2084  FN:  
          0000559