BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2516


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          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


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          |                |     |                      |                    |
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          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


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          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  








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          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