BILL ANALYSIS Ó
AB 2516
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CONCURRENCE IN SENATE AMENDMENTS
AB
2516 (Wood)
As Amended August 1, 2016
Majority vote
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|ASSEMBLY: |63-9 |(June 1, 2016) |SENATE: |29-9 |(August 18, |
| | | | | |2016) |
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Original Committee Reference: AGRI.
SUMMARY: This bill would create a Type 1C, or "specialty
cottage," medical cannabis cultivator license.
The Senate amendment changes from less than 5,000 square feet
(sq ft) of total to between 2,501 and 5,000 sq ft of total for
the size of a Type 1C, or "specialty cottage," medical cannabis
cultivator license and makes technical changes.
EXISTING LAW: Creates the Medical Marijuana Regulation and
Safety Act (MMRSA) that provides for the licensure and
regulation of commercial activities relating to medical
marijuana, cannabis, and establishes various types of state
cultivator licenses to be issued to qualified applicants by the
Department of Food and Agriculture (CDFA).
AB 2516
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FISCAL EFFECT: According to the Assembly Appropriations
Committee, this bill has unknown costs to CDFA to develop
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: According to the author, last year the legislature
developed 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 5,000
sq ft or less into one license.
This would create a cottage sublicense and encourage CDFA to
develop regulations that are appropriate for the thousands of
small growers that currently grow much less than 5,000 sq ft.
This addition rounds out the cultivator licensing structure so
that MMRSA accurately reflects the business activity going on
throughout the state.
This bill is substantially similar to the version passed by the
Assembly.
Analysis Prepared by:
Victor Francovich / AGRI. / (916) 319-2084 FN:
0004020
AB 2516
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