BILL ANALYSIS Ó SENATE COMMITTEE ON BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT Senator Jerry Hill, Chair 2015 - 2016 Regular Bill No: AB 2672 Hearing Date: June 20, 2016 ----------------------------------------------------------------- |Author: |Bonilla | |----------+------------------------------------------------------| |Version: |April 5, 2016 | ----------------------------------------------------------------- ---------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Sarah Huchel | |: | | ----------------------------------------------------------------- Subject: Medical cannabis SUMMARY: Changes references from "marijuana" to "cannabis" in state law. Existing law: 1)Creates the Medical Marijuana Regulation and Safety Act and establishes the Bureau of Medical Marijuana Regulation (Bureau) within the Department of Consumer Affairs to oversee the licensing and regulation of medical marijuana. (Business and Professions Code (BPC) Section 19300, et seq.) 2)Defines "cannabis" to be all parts of the cannabis plant for specified species, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. (BPC § 19300.5 (f)) This bill: 1) Changes references from marijuana to cannabis in the BPC, Fish and Game Code, Government Code, Health and Safety Code, the Water Code, and the Revenue and Taxation Code. AB 2672 (Bonilla) Page 2 of ? FISCAL EFFECT: This bill is keyed "fiscal" by the Legislative Counsel. According to the Assembly Committee on Appropriations analysis dated May 11, 2016, this bill will have negligible state fiscal effect. COMMENTS: 1. Purpose. This bill is Author sponsored. According to the Author's office, "The cultivation of cannabis in the United States dates as far back as 18th century. It was used for producing fiber for goods such as clothing, rope, and sails. Its medicinal uses were very widespread in the 19th century. Cannabis extract was sold openly in pharmacies all throughout the country. "The term marijuana derives from a folk term for cannabis brought over by Mexican immigrants who sought refuge from the Mexican Revolution. As the recreational use of smoking cannabis and racial prejudice grew, propaganda against cannabis featured false, lurid stories about African-American and Mexican men committing outrageous acts of murder and mayhem. Marijuana effectively became more associated with these false stereotypes and less with a form of medicine. "The term cannabis is a more appropriate medical and botanical term as it does not carry the stigma that marijuana does. Medical terminology uses combining forms of New Latin; cannabis is the correct medical term. "The Medical Marijuana Regulation and Safety Act established the licensure of persons engages in specified activities relating to medical cannabis and other regulatory provisions. The act also established the Bureau Medical Marijuana Regulation, the Medical Marijuana Regulation and Safety Act Fund, and the account as the Medical Marijuana Fines and Penalties all of which will amend their titles to replace the word marijuana to cannabis." 2. California's Medical Marijuana Regulatory Background. California began regulating medical marijuana with the passage of the Compassionate Use Act in 1996, which exempted patients and their primary caregivers from criminal liability under state law for the possession and cultivation of AB 2672 (Bonilla) Page 3 of ? marijuana. In 2003, the Legislature authorized the formation of medical marijuana cooperatives-nonprofit organizations that cultivate and distribute marijuana for medical uses to their members through dispensaries. Most recently, the Medical Marijuana Regulation and Safety Act (Act) passed in 2015, which consisted of three separate bills enacted together to license and regulate medical marijuana AB 243 (Wood, Chapter 688, Statues of 2015); AB 266 (Bonta, Chapter 689, Statutes of 2015); and SB 643 (McGuire, Chapter 719, Statutes of 2015). These bills created a comprehensive state licensing system for the commercial cultivation, manufacture, retail sale, transport, distribution, delivery, and testing of medical cannabis. Medical marijuana cooperatives will be phased out under the Act and replaced by state licensed businesses. The Act went into effect on January 1, 2016, and licensure requirements will follow when the regulatory entities responsible for implementation pass necessary regulations. The Act distributes state responsibilities among six agencies: The Bureau: license and regulates dispensaries, transporters, and distributors. Department of Fish and Wildlife (DFW): monitor and reduce environmental impacts of marijuana cultivation. State Water Resources Control Board (SWRCB): regulate the environmental impacts of marijuana cultivation on water quality and instream flows. California Department of Food and Agriculture (CDFA): regulate medical marijuana cultivation and issue licenses to growers. Department of Public Health (DPH): develop and enforce regulations and standards for medical marijuana product manufacturers and testing laboratories. Department of Pesticide Regulation (DPR): develop pesticide use guidelines for the cultivation of medical AB 2672 (Bonilla) Page 4 of ? marijuana. 1. Related Legislation. AB 1575 (Bonta) of 2015, among other provisions, this bill replaces the word "marijuana" with "cannabis" in state law. ( Status : AB 1575 is also pending in this committee.) SB 837 (Committee on Budget and Fiscal Review) of 2015, among other budget provisions, changes references from "marijuana" to "cannabis" in nearly, but not all, of the same sections as AB 2672. ( Status : SB 837 is currently pending in Assembly Budget Committee.) 2. Previous Legislation. AB 266 (Bonta, Cooley, Jones-Sawyer, Lackey, and Wood, Chapter 689, Statutes of 2015) enacted the Act for the licensure and regulation of medical marijuana, established the Bureau within the DCA, required the CDFA to administer the provisions of the act related to cultivation, required the CDPH to administer the provisions of the Act related to manufacturing and testing of medical cannabis, required the Board of Equalization to adopt a system for reporting the movement of commercial cannabis and cannabis products. AB 243 (Wood, Chapter 688, Statutes of 2015) required the CDFA, the DPR, the CDPH, the DFW, and the SWRCB to promulgate regulations relating to medical marijuana and its cultivation, as specified, required various state agencies to take specified actions to mitigate the impact that marijuana cultivation has on the environment, and established the Act Fund. SB 643 (McGuire, Chapter 719, Statutes of 2015) established standards for the prescription of medical cannabis, required the Medical Board of California to prioritize its investigative and prosecutorial resources to identify and discipline physicians and surgeons that have repeatedly recommended excessive cannabis to patients for medical purposes or repeatedly recommended cannabis to patients for medical purposes without a good faith examination, as specified, authorized counties to impose a tax upon specified cannabis-related activity, and set forth standards for the licensed cultivation of medical cannabis. AB 2672 (Bonilla) Page 5 of ? SUPPORT AND OPPOSITION: Support: None on file as of June 14, 2016. Opposition: None on file as of June 14, 2016. -- END --