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 --