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
          
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          |Version: June 22, 2016          |Policy Vote: B., P. & E.D. 7 -  |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 1, 2016    |Consultant: Brendan McCarthy    |
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          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  







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          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  








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          Fiscal Review).




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