BILL ANALYSIS Ó AB 2516 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2516 (Wood) As Amended August 1, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |63-9 |(June 1, 2016) |SENATE: |29-9 |(August 18, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- 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 Page 2 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 Page 3