Amended in Senate August 1, 2016

Amended in Senate June 22, 2016

Amended in Assembly April 6, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2516


Introduced by Assembly Member Wood

February 19, 2016


An act to amend Section 19332 of the Business and Professions Code, relating to medical cannabis.

LEGISLATIVE COUNSEL’S DIGEST

AB 2516, as amended, Wood. Medical cannabis: state cultivator license types: specialty cottage type.

The Medicalbegin delete Marijuanaend deletebegin insert Cannabisend insert Regulation and Safety Act provides for the licensure and regulation of commercial activities relating to medical cannabis and establishes various types of state cultivator licenses to be issued to qualified applicants by the Department of Food and Agriculture.

This bill would also provide for the issuance of a Type 1C, or “specialty cottage,” state cultivator license, as specified, by the Department of Food and Agriculture.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P1    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 19332 of the end insertbegin insertBusiness and Professions
2Code
end insert
begin insert is amended to read:end insert

P2    1

19332.  

(a) The Department of Food and Agriculture shall
2promulgate regulations governing the licensing of indoor and
3outdoor commercial cultivation sites.

4(b) The Department of Pesticide Regulation shall develop
5guidelines for the use of pesticides in the cultivation of cannabis
6and residue in harvested cannabis.

7(c) The Department of Food and Agriculture shall serve as the
8lead agency for purposes of the California Environmental Quality
9Act (Division 13 (commencing with Section 21000) of the Public
10Resources Code) related to the licensing of cannabis cultivation.

11(d) Pursuant to Section 13149 of the Water Code, the State
12Water Resources Control Board, in consultation with the
13Department of Fish and Wildlife and the Department of Food and
14Agriculture, shall ensure that individual and cumulative effects of
15water diversion and discharge associated with cultivation of
16cannabis do not affect the instream flows needed for fish spawning,
17migration, and rearing, and the flows needed to maintain natural
18flow variability.

19(e) The Department of Food and Agriculture shall have the
20authority necessary for the implementation of the regulations it
21adopts pursuant to this chapter. The regulations shall do all of the
22following:

23(1) Provide that weighing or measuring devices used in
24connection with the sale or distribution of medical cannabis are
25required to meet standards equivalent to Division 5 (commencing
26with Section 12001).

27(2) Require that cannabis cultivation by licensees is conducted
28in accordance with state and local laws. Nothing in this chapter,
29and no regulation adopted by thebegin delete department,end deletebegin insert Department of Food
30and Agriculture,end insert
shall be construed to supersede or limit the
31authority of the State Water Resources Control Board, regional
32water quality control boards, or the Department of Fish and
33Wildlife to implement and enforce their statutory obligations or
34to adopt regulations to protect water quality, water supply, and
35natural resources.

36(3) Establish procedures for the issuance and revocation of
37unique identifiers for activities associated with a cannabis
38cultivation license, pursuant to Article 8 (commencing with Section
3919337). All cannabis shall be labeled with the unique identifier
40issued by the Department of Food and Agriculture.

P3    1(4) Prescribe standards, in consultation with the bureau, for the
2reporting of information as necessary related to unique identifiers,
3pursuant to Article 8 (commencing with Section 19337).

4(f) The Department of Pesticide Regulation shall require that
5the application of pesticides or other pest control in connection
6with the indoor or outdoor cultivation of medical cannabis complies
7with Division 6 (commencing with Section 11401) of the Food
8and Agricultural Code and its implementing regulations.

9(g) State cultivator license types issued by the Department of
10Food and Agriculture may include:

11(1) Type 1, or “specialty outdoor,” for outdoor cultivation using
12no artificial lighting of less than or equal to 5,000 square feet of
13total canopy size on one premises, or up to 50 mature plants on
14noncontiguous plots.

15(2) Type 1A, or “specialty indoor,” for indoor cultivation using
16exclusively artificial lighting ofbegin delete less than or equal toend deletebegin insert between 501
17andend insert
5,000 square feet of total canopy size on one premises.

18(3) Type 1B, or “specialty mixed-light,” for cultivation using a
19combination of natural and supplemental artificial lighting at a
20maximum threshold to be determined by the licensing authority,
21ofbegin delete less than or equal toend deletebegin insert end insertbegin insertbetween 2,501 andend insert 5,000 square feet of
22total canopy size on one premises.

begin insert

23
(4) Type 1C, or “specialty cottage,” for cultivation using a
24combination of natural and supplemental artificial lighting at a
25maximum threshold to be determined by the licensing authority,
26of 2,500 square feet or less of total canopy size for mixed-light
27cultivation, up to 25 mature plants for outdoor cultivation, or 500
28square feet or less of total canopy size for indoor cultivation, on
29one premises.

end insert
begin delete

30(4)

end delete

31begin insert(5)end insert Type 2, or “small outdoor,” for outdoor cultivation using
32no artificial lighting between 5,001 and 10,000 square feet,
33inclusive, of total canopy size on one premises.

begin delete

34(5)

end delete

35begin insert(6)end insert Type 2A, or “small indoor,” for indoor cultivation using
36exclusively artificial lighting between 5,001 and 10,000 square
37feet, inclusive, of total canopy size on one premises.

begin delete

38(6)

end delete

39begin insert(7)end insert Type 2B, or “small mixed-light,” for cultivation using a
40combination of natural and supplemental artificial lighting at a
P4    1maximum threshold to be determined by the licensing authority,
2between 5,001 and 10,000 square feet, inclusive, of total canopy
3size on one premises.

begin delete

4(7)

end delete

5begin insert(8)end insert Type 3, or “outdoor,” for outdoor cultivation using no
6artificial lighting from 10,001 square feet to one acre, inclusive,
7of total canopy size on one premises. The Department of Food and
8Agriculture shall limit the number of licenses allowed of this type.

begin delete

9(8)

end delete

10begin insert(9)end insert Type 3A, or “indoor,” for indoor cultivation using
11exclusively artificial lighting between 10,001 and 22,000 square
12feet, inclusive, of total canopy size on one premises. The
13Department of Food and Agriculture shall limit the number of
14licenses allowed of this type.

begin delete

15(9)

end delete

16begin insert(10)end insert Type 3B, or “mixed-light,” for cultivation using a
17combination of natural and supplemental artificial lighting at a
18maximum threshold to be determined by the licensing authority,
19between 10,001 and 22,000 square feet, inclusive, of total canopy
20size on one premises. The Department of Food and Agriculture
21shall limit the number of licenses allowed of this type.

begin delete

22(10)

end delete

23begin insert(11)end insert Type 4, or “nursery,” for cultivation of medical cannabis
24solely as a nursery. Type 4 licensees may transport live plants, if
25the licensee also holds a Type 12 transporter license issued pursuant
26to this chapter.

begin delete
27

SECTION 1.  

Section 19332 of the Business and Professions
28Code
, as added by Section 1 of Chapter 688 of the Statutes of
292015, is amended to read:

30

19332.  

(a) The Department of Food and Agriculture shall
31promulgate regulations governing the licensing of indoor and
32outdoor cultivation sites.

33(b) The Department of Pesticide Regulation, in consultation
34with the Department of Food and Agriculture, shall develop
35standards for the use of pesticides in cultivation, and maximum
36tolerances for pesticides and other foreign object residue in
37harvested cannabis.

38(c) The State Department of Public Health shall develop
39standards for the production and labeling of all edible medical
40cannabis products.

P5    1(d) The Department of Food and Agriculture, in consultation
2with the Department of Fish and Wildlife and the State Water
3Resources Control Board, shall ensure that individual and
4cumulative effects of water diversion and discharge associated
5with cultivation do not affect the instream flows needed for fish
6spawning, migration, and rearing, and the flows needed to maintain
7natural flow variability.

8(e) The Department of Food and Agriculture shall have the
9authority necessary for the implementation of the regulations it
10adopts pursuant to this chapter. The regulations shall do all of the
11following:

12(1) Provide that weighing or measuring devices used in
13connection with the sale or distribution of medical cannabis are
14required to meet standards equivalent to Division 5 (commencing
15with Section 12001).

16(2) Require that cannabis cultivation by licensees is conducted
17in accordance with state and local laws related to land conversion,
18grading, electricity usage, water usage, agricultural discharges,
19and similar matters. Nothing in this chapter, and no regulation
20adopted by the Department of Food and Agriculture, shall be
21construed to supersede or limit the authority of the State Water
22Resources Control Board, regional water quality control boards,
23or the Department of Fish and Wildlife to implement and enforce
24their statutory obligations or to adopt regulations to protect water
25quality, water supply, and natural resources.

26(3) Establish procedures for the issuance and revocation of
27unique identifiers for activities associated with a cannabis
28cultivation license, pursuant to Article 8 (commencing with Section
2919337). All cannabis shall be labeled with the unique identifier
30issued by the Department of Food and Agriculture.

31(4) Prescribe standards, in consultation with the bureau, for the
32reporting of information as necessary related to unique identifiers,
33pursuant to Article 8 (commencing with Section 19337).

34(f) The Department of Pesticide Regulation, in consultation with
35the State Water Resources Control Board, shall promulgate
36regulations that require that the application of pesticides or other
37pest control in connection with the indoor or outdoor cultivation
38of medical cannabis meets standards equivalent to Division 6
39(commencing with Section 11401) of the Food and Agricultural
40Code and its implementing regulations.

P6    1(g) State cultivator license types issued by the Department of
2Food and Agriculture include:

3(1) Type 1, or “specialty outdoor,” for outdoor cultivation using
4no artificial lighting of between 2,501 and 5,000 square feet of
5total canopy size on one premises, or up to 50 mature plants on
6noncontiguous plots.

7(2) Type 1A, or “specialty indoor,” for indoor cultivation using
8exclusively artificial lighting of between 2,501 and 5,000 square
9feet of total canopy size on one premises.

10(3) Type 1B, or “specialty mixed-light,” for cultivation using a
11combination of natural and supplemental artificial lighting at a
12maximum threshold to be determined by the licensing authority,
13of between 2,501 and 5,000 square feet of total canopy size on one
14premises.

15(4) Type 1C, or “specialty cottage,” for cultivation using a
16 combination of natural and supplemental artificial lighting at a
17maximum threshold to be determined by the licensing authority,
18of 2,500 square feet or less of total canopy size for mixed-light
19cultivation, up to 25 plants for outdoor cultivation, or 500 square
20feet or less of total canopy size for indoor cultivation, on one
21premises.

22(5) Type 2, or “small outdoor,” for outdoor cultivation using
23no artificial lighting between 5,001 and 10,000 square feet,
24inclusive, of total canopy size on one premises.

25(6) Type 2A, or “small indoor,” for indoor cultivation using
26exclusively artificial lighting between 5,001 and 10,000 square
27feet, inclusive, of total canopy size on one premises.

28(7) Type 2B, or “small mixed-light,” for cultivation using a
29combination of natural and supplemental artificial lighting at a
30maximum threshold to be determined by the licensing authority,
31between 5,001 and 10,000 square feet, inclusive, of total canopy
32size on one premises.

33(8) Type 3, or “outdoor,” for outdoor cultivation using no
34artificial lighting from 10,001 square feet to one acre, inclusive,
35of total canopy size on one premises. The Department of Food and
36Agriculture shall limit the number of licenses allowed of this type.

37(9) Type 3A, or “indoor,” for indoor cultivation using
38exclusively artificial lighting between 10,001 and 22,000 square
39feet, inclusive, of total canopy size on one premises. The
P7    1Department of Food and Agriculture shall limit the number of
2licenses allowed of this type.

3(10) Type 3B, or “mixed-light,” for cultivation using a
4combination of natural and supplemental artificial lighting at a
5maximum threshold to be determined by the licensing authority,
6between 10,001 and 22,000 square feet, inclusive, of total canopy
7size on one premises. The Department of Food and Agriculture
8shall limit the number of licenses allowed of this type.

9(11) Type 4, or “nursery,” for cultivation of medical cannabis
10solely as a nursery. Type 4 licensees may transport live plants.

11

SEC. 2.  

Section 19332 of the Business and Professions Code,
12as added by Section 13 of Chapter 719 of the Statutes of 2015, is
13amended to read:

14

19332.  

(a) The Department of Food and Agriculture shall
15promulgate regulations governing the licensing of indoor and
16outdoor cultivation sites.

17(b) The Department of Pesticide Regulation, in consultation
18with the Department of Food and Agriculture, shall develop
19standards for the use of pesticides in cultivation, and maximum
20tolerances for pesticides and other foreign object residue in
21harvested cannabis.

22(c) The State Department of Public Health shall develop
23standards for the production and labeling of all edible medical
24cannabis products.

25(d) The Department of Food and Agriculture, in consultation
26with the Department of Fish and Wildlife and the State Water
27Resources Control Board, shall ensure that individual and
28cumulative effects of water diversion and discharge associated
29with cultivation do not affect the instream flows needed for fish
30spawning, migration, and rearing, and the flows needed to maintain
31natural flow variability.

32(e) The Department of Food and Agriculture shall have the
33authority necessary for the implementation of the regulations it
34adopts pursuant to this chapter. The regulations shall do all of the
35following:

36(1) Provide that weighing or measuring devices used in
37connection with the sale or distribution of medical cannabis are
38required to meet standards equivalent to Division 5 (commencing
39with Section 12001).

P8    1(2) Require that cannabis cultivation by licensees is conducted
2in accordance with state and local laws related to land conversion,
3grading, electricity usage, water usage, agricultural discharges,
4and similar matters. Nothing in this chapter, and no regulation
5adopted by the Department of Food and Agriculture, shall be
6construed to supersede or limit the authority of the State Water
7Resources Control Board, regional water quality control boards,
8or the Department of Fish and Wildlife to implement and enforce
9their statutory obligations or to adopt regulations to protect water
10quality, water supply, and natural resources.

11(3) Establish procedures for the issuance and revocation of
12unique identifiers for activities associated with a cannabis
13cultivation license, pursuant to Article 8 (commencing with Section
1419337). All cannabis shall be labeled with the unique identifier
15issued by the Department of Food and Agriculture.

16(4) Prescribe standards, in consultation with the bureau, for the
17reporting of information as necessary related to unique identifiers,
18pursuant to Article 8 (commencing with Section 19337).

19(f) The Department of Pesticide Regulation, in consultation with
20the State Water Resources Control Board, shall promulgate
21regulations that require that the application of pesticides or other
22pest control in connection with the indoor or outdoor cultivation
23of medical cannabis meets standards equivalent to Division 6
24(commencing with Section 11401) of the Food and Agricultural
25Code and its implementing regulations.

26(g) State cultivator license types issued by the Department of
27Food and Agriculture include:

28(1) Type 1, or “specialty outdoor,” for outdoor cultivation using
29no artificial lighting of between 2,501 and 5,000 square feet of
30total canopy size on one premises, or up to 50 mature plants on
31noncontiguous plots.

32(2) Type 1A, or “specialty indoor,” for indoor cultivation using
33exclusively artificial lighting of between 2,501 and 5,000 square
34feet of total canopy size on one premises.

35(3) Type 1B, or “specialty mixed-light,” for cultivation using a
36combination of natural and supplemental artificial lighting at a
37maximum threshold to be determined by the licensing authority,
38of between 2,501 and 5,000 square feet of total canopy size on one
39premises.

P9    1(4) Type 1C, or “specialty cottage,” for cultivation using a
2combination of natural and supplemental artificial lighting at a
3maximum threshold to be determined by the licensing authority,
4of 2,500 square feet or less of total canopy size for mixed-light
5cultivation, up to 25 plants for outdoor cultivation, or 500 square
6feet or less of total canopy size for indoor cultivation, on one
7premises.

8(5) Type 2, or “small outdoor,” for outdoor cultivation using
9no artificial lighting between 5,001 and 10,000 square feet,
10inclusive, of total canopy size on one premises.

11(6) Type 2A, or “small indoor,” for indoor cultivation using
12exclusively artificial lighting between 5,001 and 10,000 square
13feet, inclusive, of total canopy size on one premises.

14(7) Type 2B, or “small mixed-light,” for cultivation using a
15combination of natural and supplemental artificial lighting at a
16maximum threshold to be determined by the licensing authority,
17between 5,001 and 10,000 square feet, inclusive, of total canopy
18size on one premises.

19(8) Type 3, or “outdoor,” for outdoor cultivation using no
20artificial lighting from 10,001 square feet to one acre, inclusive,
21 of total canopy size on one premises. The Department of Food and
22Agriculture shall limit the number of licenses allowed of this type.

23(9) Type 3A, or “indoor,” for indoor cultivation using
24exclusively artificial lighting between 10,001 and 22,000 square
25feet, inclusive, of total canopy size on one premises. The
26Department of Food and Agriculture shall limit the number of
27licenses allowed of this type.

28(10) Type 3B, or “mixed-light,” for cultivation using a
29combination of natural and supplemental artificial lighting at a
30maximum threshold to be determined by the licensing authority,
31between 10,001 and 22,000 square feet, inclusive, of total canopy
32size on one premises. The Department of Food and Agriculture
33shall limit the number of licenses allowed of this type.

34(11) Type 4, or “nursery,” for cultivation of medical cannabis
35solely as a nursery. Type 4 licensees may transport live plants.

end delete


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