BILL ANALYSIS Ó AB 2516 Page 1 ASSEMBLY THIRD READING AB 2516 (Wood) As Amended April 6, 2016 Majority vote ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Agriculture |7-2 |Dodd, Eggman, Gray, |Mathis, Grove | | | |Irwin, Jones-Sawyer, | | | | |Quirk, Salas | | | | | | | |----------------+-----+----------------------+--------------------| |Business & |13-1 |Salas, Brough, Baker, |Gatto | |Professions | |Bloom, Campos, | | | | |Chávez, Dodd, Eggman, | | | | |Gomez, Holden, | | | | |Mullin, Ting, Wood | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |15-1 |Gonzalez, Bloom, |Bigelow | | | |Bonilla, Bonta, | | | | |Calderon, Chang, | | | | |Daly, Eggman, Eduardo | | | | |Garcia, Roger | | | | |Hernández, Holden, | | | | |Quirk, Santiago, | | | | |Weber, Wood | | AB 2516 Page 2 | | | | | | | | | | ------------------------------------------------------------------ SUMMARY: Provides 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 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: According to the Assembly Appropriations Committee, this bill has unknown costs to CDFA to develop AB 2516 Page 3 regulations, review and issue licenses, and enforce regulations as a result of more cultivators participating in the regulated market. Currently CDFA is required to establish a scale of license fees that would cover the cost of licensing and enforcement activities. 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. 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 AB 2516 Page 4 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. Analysis Prepared by: Victor Francovich / AGRI. / (916) 319-2084 FN: 0003138