BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2385 (Jones-Sawyer) - Medical Marijuana Regulation and Safety Act: state licenses: Measure D ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 22, 2016 |Policy Vote: B., P. & E.D. 7 - | | | 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 2385 would exempt commercial cannabis applicants from the requirement that they have a local license as a condition of state licensure, if the applicant meets the requirements of the City of Los Angeles' Measure D. Fiscal Impact: Ongoing costs of $160,000 per year for the Bureau of Medical Cannabis Regulation to license applicants from the City of Los Angeles and verify that licensees meet the requirements of Measure D and all applicable state requirements (Medical Cannabis Regulation and Safety Act Fund). Background: Under current law, the Bureau of Medical Cannabis Regulation is authorized to license medical cannabis dispensaries and transporters. Licensure by the state requires the license applicant to demonstrate that it has a license or permit from AB 2385 (Jones-Sawyer) Page 1 of ? the applicable local jurisdiction. In 2013, voters in the City of Los Angeles adopted Measure D, relating to medical marijuana/cannabis. Under Measure D, the City of Los Angeles does not license or permit medical marijuana dispensaries. Rather, Measure D specifies that 135 existing dispensaries that meet specified requirements are allowed to continue to operate, while no other dispensaries are allowed to open. Proposed Law: AB 2385 would exempt commercial cannabis applicants from the requirement that they have a local license as a condition of state licensure, if the applicant meets the requirements of the City of Los Angeles' Measure D. Specific provisions of the bill would: Provide that state licensing authorities shall not require a local license, permit, or other authorization and shall issue a state license to engage in commercial cannabis activity if the licensing entity determines that the applicant satisfies the requirements of Measure D; Provide that a state license issued under the bill shall have the same benefits and responsibilities as other state licenses; Require a determination that an applicant meets the criteria of Measure D to be based on information provided by the City of Los Angeles; Provide that if a subsequent initiative in the City of Los Angeles authorizes the issuance of local licenses, the exemption in the bill shall be superseded. 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 Regulation and Safety Act, which provides for the licensure and regulation of commercial medical marijuana in the state. There are several cleanup bills to the legislation from last year, including this bill, AB 26 (Jones-Sawyer), AB 1575 (Bonta), AB 2672 (Bonilla), and SB 837 (Committee on Budget and AB 2385 (Jones-Sawyer) Page 2 of ? Fiscal Review). -- END --