BILL ANALYSIS Ó
SENATE COMMITTEE ON AGRICULTURE
Senator Cathleen Galgiani, Chair
2015 - 2016 Regular
Bill No: AB 2516 Hearing Date: 6/21/16
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|Author: |Wood |
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|Version: |4/6/16 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Anne Megaro |
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Subject: Medical marijuana: state cultivator license types:
specialty cottage type
SUMMARY :
This bill would create a Type 1C, or "specialty cottage,"
medical marijuana cultivator license.
BACKGROUND AND EXISTING
LAW :
The Medical Marijuana Regulation and Safety Act (Act) was
enacted in 2015 to create a comprehensive licensing and
regulatory framework for the cultivation, manufacture,
transportation, storage, distribution, sale, and testing of
medical marijuana. The Act establishes the Bureau of Medical
Marijuana Regulation (Bureau) within the Department of Consumer
Affairs to regulate and issue licenses for the transportation,
storage, distribution, and sale of medical marijuana. The
California Department of Food and Agriculture (CDFA) is required
to regulate and issue licenses for the cultivation of medical
marijuana through the Medical Cannabis Cultivation Program, and
the State Department of Public Health is required to regulate
the manufacturing and testing of medical marijuana and labeling
of medical marijuana edible products. CDFA is also responsible,
AB 2516 (Wood) Page 2 of ?
in consultation with the Bureau, for establishing a 'track and
trace' program for reporting the movement of medical marijuana
throughout the distribution chain (Business and Professions Code
§ 19300 et seq.).
Further medical marijuana regulation requires the Department of
Pesticide Regulation (DPR), in consultation with CDFA, to
develop standards for the use of pesticides in cultivation.
Additionally, coordination among CDFA, the Department of Fish
and Wildlife, and the State Water Resources Control Board is
required to ensure that water diversion and discharge associated
with medical marijuana cultivation do not affect instream flows
necessary for fish habitat.
On the local level, local authority regarding medical marijuana
is preserved by requiring persons engaged in commercial medical
marijuana activity to obtain both a state license and a local
permit, license or other local authorization.
Cultivator licenses issued by CDFA are categorized by lighting
source (indoor, outdoor, or mixed lighting source) and by type:
Type 1: Specialty - 5,000 square feet or less; up to 50
mature plants
Type 2: Small - between 5,001 and 10,000 square feet
Type 3: Larger growers - between 10,001 to 22,000 square
feet for indoor or mixed lighting or up to an acre
for outdoor
Type 4: Nursery
Existing law exempts persons growing marijuana for personal use
from licensing requirements if their growing operations are
under 100 square feet, or 500 square feet for primary caregivers
growing marijuana for the exclusive medical use of not more than
five patients (Health and Safety Code § 11362.777).
PROPOSED
LAW :
This bill:
1) Creates a Type 1C, or "specialty cottage" state
cultivator license issued by CDFA for medical marijuana
cultivation using a combination of natural and artificial
lighting on a single premises consisting of:
a. 2,500 square feet or less of total canopy size
AB 2516 (Wood) Page 3 of ?
for mixed-light cultivation;
b. Up to 25 plants for outdoor cultivation; or
c. 500 square feet or less of total canopy size
for indoor cultivation.
2) Clarifies that regulations adopted by CDFA, rather than
"the department," shall not be construed to supersede or
limit the authority of the State Water Resources Control
Board, regional water quality control boards, or the
Department of Fish and Wildlife to implement and enforce
their responsibilities to protect water quality, water
supply, and natural resources.
ARGUMENTS IN SUPPORT:
According to the author, "Last year the legislature developed
the Medical Marijuana Regulation and Safety Act (MMRSA) in an
effort to address the environmental, public health, and public
safety concerns that have developed within the cannabis
industry. The key to this new framework's success is ensuring
that new and existing businesses get licensed and come into
regulatory compliance.
Current law lumps all cannabis cultivation sites that are
5,000ft2 or less into one license. AB 2516 would create a
cottage sublicense and encourage the Department of Food and
Agriculture to develop regulations that are appropriate for the
thousands of small growers that currently grow much less than
5,000ft2. This addition rounds out the cultivator licensing
structure so that the MMRSA accurately reflects the business
activity going on throughout the state."
COMMENTS :
Cultivator licenses. Currently, cultivator licenses are divided
into categories based on size of the growing site and type of
lighting (indoor/outdoor/mixed). Multiple license types provide
for greater regulatory specificity, since, for instance, small
indoor growers (5,000 square feet or less) would require
different regulatory and environmental considerations than large
outdoor growers (22,000 square feet or less). Medical marijuana
cultivation laws were developed in part to mitigate
environmental impact, improve the safety of neighborhoods, and
bring the cultivation of marijuana into compliance with current
agricultural farming regulations on water, soil, and air
quality, among others.
AB 2516 (Wood) Page 4 of ?
Cottage growers. Type 1 licenses encompass the smallest group,
or "specialty" operations. However, according to the author,
there are some growers who represent a smaller subsection that
grow very few plants on relatively small parcels of land in
order to provide supplementary income or are part of a larger
diversified farm. These operations fit into the category of
"cottage," which is already currently used for other commodities
and products in state law. For example, "cottage food
operations" are businesses located within private homes that do
not gross more than $35,000 annually and do not have more than
one full-time employee, among other specifications. These
entities are afforded regulations that better match their
"cottage" operations. This bill seeks to provide similar
accommodations for the unique needs of small "specialty cottage"
medical marijuana growers.
Technical amendments. The author may wish to adopt technical
amendments to clarify the difference between "specialty cottage"
and other Type 1 licenses by providing minimum growing areas and
plant numbers to these cultivator license types. For instance,
limiting Type 1 "specialty outdoor" licenses to an area between
2,501 and 5,000 square feet of total canopy size on one
premises.
RELATED
LEGISLATION :
SB 837 (Budget) of 2016. Among other provisions, authorizes
CDFA to establish appellations of origin for medical marijuana;
excludes marijuana seed from regulation under the California
Seed Law, and exempts butter purchased from a licensed milk
products plant and subsequently infused with marijuana from the
Milk and Milk Products Act of 1947.
AB 1548 (Wood) of 2016. Would have imposed a tax on cultivator
distribution of marijuana to a licensed distributor, as
specified. Died without hearing in the Assembly Committee on
Revenue and Taxation.
AB 243 (Wood), Chapter 688, Statutes of 2015. Requires CDFA,
DPR, the State Department of Public Health, the Department of
Fish and Wildlife, and the State Water Resources Control Board
to promulgate regulations or standards relating to medical
marijuana and its cultivation, as specified. Establishes
licensing fees, fines, and penalties.
AB 2516 (Wood) Page 5 of ?
AB 266 (Bonta et al.), Chapter 689, Statutes of 2015. Enacts
the Medical Marijuana Regulation and Safety Act for the
licensure and regulation of medical marijuana and establishes
the Bureau of Medical Marijuana Regulation within the Department
of Consumer Affairs.
SB 643 (McGuire), Chapter 719, Statutes of 2015. Sets standards
for the licensed cultivation and physician prescription of
medical marijuana; establishes a track and trace program for the
transportation of medical marijuana; and authorizes counties to
impose a tax on medical marijuana.
PRIOR
ACTIONS :
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|Assembly Floor: |63 - 9 |
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|Assembly Appropriations Committee: |15 - 1 |
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|Assembly Agriculture Committee: | 7 - 2 |
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SUPPORT :
California Growers Association (Sponsor)
Americans for Safe Access
Consortium Management Group
Humboldt County Board of Supervisors
Mendocino County Board of Supervisors
Sonoma County Board of Supervisors
OPPOSITION :
None received
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