BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  April 13, 2016


                          ASSEMBLY COMMITTEE ON AGRICULTURE


                                  Bill Dodd, Chair


          AB 2516  
          (Wood) - As Amended April 6, 2016


          SUBJECT:  Medical marijuana: state cultivator license types:  
          specialty cottage type.


          SUMMARY:  This bill would provide for a Type 1C, or "specialty  
          cottage," state cultivator license to be issued by the  
          California Department of Food and Agriculture (CDFA), as  
          specified, under the authority of the Medical Marijuana  
          Regulation and Safety Act (MMRSA).  Specifically, this bill:  


          1)Allows CDFA to issues a Type 1C, or "specialty cottage"  
            license, for cultivation of medical marijuana (MM) of 2,500  
            square feet or less of total canopy size for mixed-light  
            cultivation, up to 25 plants for outdoor cultivation, or 500  
            square feet or less of total canopy size for indoor  
            cultivation, on one premise, as specified.


          2)Makes technical changes. 


          EXISTING LAW:  


          1)Provides certain legal protections for qualified patients and  








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            caregivers that possess or cultivate MM.


          2)Provides for the licensure of commercial MM activities. 





          3)Establishes various types of state MM cultivator licenses and  
            tasks CDFA with issuing licenses to qualified applicants.



          FISCAL EFFECT:  Unknown. 


          COMMENTS:  Proposition 215, the Compassionate Use Act of 1996,  
          provides certain legal protections for 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.  





          Last year AB 243 (Wood), Chapter 688, Statutes of 2015; AB 266  
          (Bonta), Chapter 689, Statutes of 2015; and, SB 643 (McGuire),  
          Chapter 719, Statutes of 2015, created MMRSA, a comprehensive  
          licensing and regulatory framework for the cultivation,  
          manufacture, transportation, storage, distribution, and sale of  
          MM.  MMRSA created a tiered licensing structure for cannabis  
          cultivators.  Each license specifies the maximum size. The  
          smallest license tier is less than or equal to 5,000 square feet  
          or less than or equal to 50 mature plants on noncontiguous  
          plots.








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          The author states many MM farmers across California grow only a  
          handful of plants on relatively small plots of land.  These  
          small farmers often rely on MM cultivation to supplement their  
          income, or simply as one product in a larger agricultural  
          portfolio.  According to the author, creating a specialty  
          cottage license will allow CDFA to develop regulations and  
          requirements with the special needs of this unique group of  
          cultivators in mind.





          MMRSA was developed in part to ensure the MM industry adhered to  
          standards designed to create safer neighborhoods, a cleaner  
          environment, and a more consumer orientated industry. Supporters  
          point out creation of a cottage license that provides a viable  
          pathway to compliance for the small MM farmers that operate  
          throughout the state will help expand the number of businesses  
          that come into compliance with MMRSA.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          California Growers Association


          Consortium Management Group








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          Opposition


          None on file.




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