BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 1575 (Bonta) - Medical cannabis
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|Version: August 1, 2016 |Policy Vote: B., P. & E.D. 6 - |
| | 1, GOV. & F. 6 - 1 |
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|Urgency: No |Mandate: Yes |
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|Hearing Date: August 8, 2016 |Consultant: Brendan McCarthy |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: AB 1575 would amend various provisions of the Medical
Cannabis Regulation and Safety Act.
Fiscal
Impact:
One-time costs, less than $150,000, for the Board of
Equalization to provide staff support to an advisory group on
financial services and the medical cannabis industry and to
prepare a required report to the Legislature (General Fund).
One-time costs, likely in the low hundreds of thousands, for
the Department of Public Health to adopt safety standards for
medical cannabis packaging (Medical Cannabis Regulation and
Safety Fund).
One-time costs, likely in the hundreds of thousands, for the
Bureau of Medical Cannabis Regulation to adopt regulations
relating to packaging requirements and adopt advertising and
labeling restrictions (Medical Cannabis Regulation and Safety
AB 1575 (Bonta) Page 1 of
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Fund).
Background: Under the Medical Cannabis Regulation and Safety Act, the
state will begin licensing and regulating the medical cannabis
industry for the first time. The Bureau of Medical Cannabis
Regulation will license and regulate medical cannabis
dispensaries, transporters, and testing laboratories. The
Department of Public Health will begin licensing and regulating
medical cannabis manufacturers. The Department of Food and
Agriculture will begin licensing and testing cultivators. Each
of those licensing entities is currently in the process of
developing their respective licensing program and implementing
regulations. Once regulations have been adopted, entities in
each of those areas (dispensaries, cultivators, etc.) will be
required to apply for and receive a permit from their respective
licensing entity to remain in business.
Proposed Law:
AB 1575 would amend various provisions of the Medical Cannabis
Regulation and Safety Act.
Key provisions of the bill would:
Require the Board of Equalization to convene an advisory group
on financial services and medical cannabis and prepare a
report for the Legislature;
Prohibit local governments from adopting medical cannabis
packaging standards more stringent that state standards;
Require the Department of Public Health to adopt safety
standards for medical cannabis packaging;
Require the Bureau of Medical Cannabis Regulation to specify
the manner in which medical cannabis products are packaged and
sealed;
Authorize the Bureau to establish marketing and labeling
requirements;
Impose additional security requirements on licensed
dispensaries;
Generally authorize businesses or research institutions to
engage in research related to medical cannabis;
Specify that local ordinances regulating medical cannabis do
not require approval from the Department of Agriculture;
Change the existing requirements relating to the operation of
collectives or cooperatives;
Make a number of other clarifying and technical changes.
AB 1575 (Bonta) Page 2 of
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Related
Legislation: AB 266 (Bonta, Cooley, Jones-Sawyer, Lacky, and
Wood, Statutes of 2015), AB 243 (Wood, Statutes of 2015), and SB
643 (McGuire, Statutes of 2015) established the Medical
Marijuana (now Cannabis) Regulation and Safety Act, which
provides for the licensure and regulation of commercial medical
marijuana in the state.
There are several follow-up bills to the legislation from last
year, including this bill, AB 26 (Jones-Sawyer), AB 2385
(Jones-Sawyer), AB 2672 (Bonilla), and SB 837 (Committee on
Budget and Fiscal Review).
Staff
Comments: The bill contains a provision requiring the
Department of Public Health to review and update medical
cannabis testing standards. SB 837 changed the authority for
licensing and regulating testing laboratories to the Bureau. The
author's office indicates that the bill will be amended to place
this responsibility with the Bureau.
The only costs that may be incurred by a local agency relate to
crimes and infractions. Under the California Constitution, such
costs are not reimbursable by the state.
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