BILL ANALYSIS Ó
AB 2679
Page 1
Date of Hearing: April 12, 2016
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Rudy Salas, Chair
AB 2679
(Cooley) - As Amended March 18, 2016
SUBJECT: Medical marijuana: regulation: research.
SUMMARY: This bill increases the reporting requirements of the
Bureau of Medical Marijuana Regulation (Bureau) to include the
number of appeals of denial of state licenses or other
disciplinary actions taken by the licensing authorities, the
number of complaints submitted to the Bureau regarding licenses;
and, expands the California Marijuana Research Program within
the University of California to include in its studies the
effect of marijuana on a person's motor skills.
EXISTING LAW:
1)Establishes the Bureau of Medical Marijuana 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 Section 19300.5(f))
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3)Defines "commercial cannabis activity" as the cultivation,
possession, manufacture, processing, storing, laboratory
testing, labeling, transporting, distribution, or sale of
medical cannabis or a medical cannabis product, except as
specified. (BPC Section 19300.5(k))
4)Defines a "licensing authority" to be the state agency
responsible for the issuance, renewal, or reinstatement of the
license, or the state agency authorized to take disciplinary
action against the license. (BPC Section 19300.5 (w))
5)Defines "medical cannabis," "medical cannabis product," or
"cannabis product" as a product containing cannabis,
including, but not limited to, concentrates and extractions,
intended to be sold for use by medical cannabis patients in
California pursuant to the Compassionate Use Act of 1996, also
known as Proposition 215. (BPC Section 19300.5(ag))
6)Defines sub-classifications within the categories of
cultivation, manufacturer, testing, dispensary, distribution
and transporter, as specified. (BPC Section 19300.7)
7)Provides that grounds for disciplinary action include failure
to comply with the any rule or regulation set by the Bureau;
any other grounds contained in regulations adopted by a
licensing authority pursuant to the regulation of medical
marijuana; failure to comply with any state law, except as
specified. (BPC Section 19311)
8)Provides that each licensing authority may suspend or revoke
licenses, after proper notice and hearing to the licensee, if
the licensee is found to have committed any action that is
grounds for disciplinary action; may take disciplinary action
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against a licensee for any violation when the violation was
committed by the licensee's agent or employee while acting on
behalf of the licensee or engaged in commercial cannabis
activity; and must inform the Bureau, which will in turn
inform all other licensing authorities and the Department of
Food and Agriculture. (BPC Sections 19312 - 19313.5)
9)Requires a licensing authority to deny an application if
either the applicant or the premises for which a state license
is applied does not qualify, as specified. (BPC Section
19323)
10)Requires a licensing authority to notify the applicant, in
writing, upon the denial of any application for a license;
within 30 days of service of the notice, the applicant may
file a written petition for a license with the licensing
authority; and, upon receipt of a petition, the licensing
authority is required to set the petition for hearing. (BPC
Section 19324)
11)Requires each licensing authority to submit, beginning on
March 1, 2023, and on or before March 1 of each following
year, to the Legislature an annual report on the authority's
activities and post the report on the authority's Internet Web
site; the report must include, but not be limited to, the
following information for the previous fiscal year:
a) The amount of funds allocated and spent by the licensing
authority for medical cannabis licensing, enforcement, and
administration;
b) The number of state licenses issued, renewed, denied,
suspended, and revoked, by state license category;
c) The average time for processing state license
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applications, by state license category;
d) The number and type of enforcement activities conducted
by the licensing authorities and by local law enforcement
agencies in conjunction with the licensing authorities or
the bureau; and,
e) The number, type, and amount of penalties, fines, and
other disciplinary actions taken by the licensing
authorities. (BPC Section 19353)
12)Requires the Bureau to contract with the California Marijuana
Research Program (CMRP), known as the Center for Medicinal
Cannabis Research (CMCR), authorized pursuant to Section
11362.9 of the Health and Safety Code (HSC), to develop a
study that identifies the impact of cannabis on motor skills.
13)Establishes the CMRP within the University of California (UC)
to study the efficacy and safety of administering marijuana as
part of medical treatment; specifies program parameters that
the CMRP must develop in order to solicit proposals for
research projects, including but not limited to:
a) Demonstrating the use of key personnel;
b) Procedures for patient outreach;
c) Protocols for studying serious illnesses, as specified;
d) Proper facilities, i.e. specimen laboratories and
suitable equipment to analyze marijuana;
e) Adequate information technology systems, i.e. patient
registry and data collection; and
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f) Maintaining objectivity and scientific merit. (HSC
Section 11362.9)
THIS BILL:
1)Requires the Bureau to comply with the reporting requirements
pursuant to Government Code 9795.
2)Requires the licensing authorities to include in its annual
report to the Bureau:
a) The number of appeals of denial of state licenses or
other disciplinary actions taken by the licensing
authorities, and the amount of time spent on these appeals;
and,
b) The number of complaints submitted by citizens or
representatives of cities or counties regarding licensees,
provided as both by statewide and geographical region.
3)Expands the CMRP program parameters to include studies to
ascertain the effect of marijuana on motor skills.
FISCAL EFFECT: Unknown. This bill is keyed fiscal by the
Legislative Counsel.
COMMENTS:
Purpose. This bill increases the reporting requirements of the
Bureau of Medical Marijuana Regulation (Bureau) to include the
number of appeals of denial of state licenses or other
disciplinary actions taken by the licensing authorities, the
number of complaints submitted to the Bureau regarding licenses;
and, expands the California Marijuana Research Program within
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the University of California to include in its studies the
effect of marijuana on a person's motor skills.
This bill is sponsored by the author. According to the author,
"The Medical Marijuana Regulation and Safety Act [(Act)] was a
huge step forward in regulating the medical cannabis industry
which has effectively operated in a legal gray area since the
passage of [Proposition] 215. The [Act]'s passage last year
created a robust administrative and regulatory structure at the
state and local level over this industry. As California ramps
up its licensing program, proper accountability and oversight
are important to make certain state agencies are functioning
efficiently and that community input is being effectively
considered and tracked. [This bill] increases the reporting
requirements regarding licensure denials, time of appeals, and
citizen complaints to ensure the Bureau is operating in a timely
manner and citizen complaints are being heard."
The Compassionate Use Act of 1996 (CUA). Proposition 215 was
approved by California voters to exempt certain patients and
their primary caregivers from criminal liability under state law
for the possession and cultivation of marijuana. Proposition
215 was enacted to "ensure that seriously ill Californians have
the right to obtain and use marijuana for medical purposes where
that medical use is deemed appropriate and has been recommended
by a physician who has determined that the person's health would
benefit from the use of marijuana," and to "ensure that patients
and their primary caregivers who obtain and use marijuana for
medical purposes upon the recommendation of a physician are not
subject to criminal prosecution or sanction."
The Medical Marijuana Program Act. SB 420 (Vasconcellos),
Chapter 875, Statutes of 2003, established the Medical Marijuana
Program Act (MMP). The MMP, among other things, required the
California Department of Public Health (CDPH) to establish and
maintain a program for a statewide identification card system.
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Medical marijuana identification cards are intended to help law
enforcement officers identify and verify that cardholders are
able to cultivate, possess, and transport certain amounts of
marijuana without being subject to arrest under specific
conditions. All counties participate in the identification
card program; however, participation by patients and primary
caregivers in the identification card program is voluntary.
In 2008, the Attorney General issued guidelines to: 1) ensure
that marijuana grown for medical purposes remains secure and
does not find its way to non-patients or illicit markets; 2)
help law enforcement agencies perform their duties effectively
and in accordance with California law; and, 3) help patients and
primary caregivers understand how they may cultivate, transport,
possess, and use medical marijuana under California law.
Since the passage of Proposition 215, a flood of medical
marijuana collectives and cooperatives have created a patchwork
of local regulations for these industries and with little
statewide involvement.
The Federal Controlled Substances Act. Despite the CUA and SB
420, marijuana is still illegal under federal law. Adopted in
1970, the Controlled Substances Act (CSA) established a federal
regulatory system designed to combat recreational drug abuse by
making it unlawful to manufacture, distribute, dispense, or
possess any controlled substance. (Title 21 United States Code
Section (USC) 801, et seq.) Under California law, marijuana is
listed as a hallucinogenic substance in Schedule I of the
California Uniform Controlled Substances Act. Yet, the CUA
prohibits prosecution for obtaining, distributing, or using
marijuana for medical purposes. However, under the federal
CSA, it is unlawful for any person to manufacture, distribute,
dispense or possess a controlled substance, including marijuana,
whether or not it is for a medical purpose. As a result,
patients, caregivers, and dispensary operators, who engage in
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activities relating to medical marijuana, may still vulnerable
to federal arrest and prosecution.
Congress has provided that states are free to regulate in the
area of controlled substances, including marijuana, provided
that state law does not positively conflict with the CSA.
(Title 21 USC Section 903.) Proposition 215, nor the MMP,
conflicts with the CSA because medical marijuana use has not
been "legalized" medical marijuana in the state; instead,
California has tried to avoid this conflict by not pursuing the
state's powers to punish certain offenses when a physician has
recommended marijuana as a treatment for a serious medical
condition.
Center for Medicinal Cannabis Research. According to the CMCR,
"The [CMCR] was created in 2000 to conduct clinical and
pre-clinical studies of cannabinoids, including smoked
marijuana, to provide evidence one way or the other to answer
the question "Does marijuana have therapeutic value?" To
accomplish this objective, the CMCR issued calls for
applications from researchers at leading California
institutions, developed a close working relationship with state
and federal agencies to gain regulatory approvals, established
panels of nationally-recognized experts to rigorously review the
merit of applications, and funded carefully designed studies
that have now been published in high impact scientific journals,
making significant contributions to the available literature on
cannabis and the cannabinoids."
The CMCR continues, "As a result of this program of systematic
research, we now have reasonable evidence that cannabis is a
promising treatment in selected pain syndromes caused by injury
or diseases of the nervous system, and possibly for painful
muscle spasticity due to multiple sclerosis. Obviously more
research will be necessary to elucidate the mechanisms of action
and the full therapeutic potential of cannabinoid compounds.
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Meanwhile, the knowledge and new findings from the CMCR provide
a strong science-based context in which policy makers and the
public can discuss the place of these compounds in medical
care."
The Medical Marijuana Regulation and Safety Act. The Act
consisted of three separate bills which were enacted together on
Sept 11, 2015, to bring licensure and regulation to the medical
marijuana industry nearly 20 years after the passage of
Proposition 215 in 1996, which legalized the use of medical
marijuana. The bills created a comprehensive state licensing
system for the commercial cultivation, manufacture, retail sale,
transport, distribution, delivery, and testing of medical
cannabis. In addition, the bills affirm local control and
require licensure by both a local government and the state in
order for a licensee to operate. The Act went into effect on
January 1, 2016, although licensure requirements will not go
into effect until the regulatory entities responsible for
implementing the act pass necessary regulations.
Among other things, the Act establishes the new Bureau under the
DCA, which is responsible for licensing and regulating
dispensaries, transporters, and distributors. In addition, the
CDPH is responsible for regulating manufacturers, testing
laboratories, and the production and labeling of edible medical
marijuana products. The CDFA is responsible for regulating
cultivation, and other state agencies, such as the Department of
Pesticide Regulation and the State Water Resources Control
Board, are responsible for developing environmental standards.
Under the Act, applicants seeking licensure to cultivate,
distribute, or manufacture medical cannabis are required to
include a detailed description of the applicant's operating
procedures for cultivation, extraction and infusion methods,
transportation process, inventory procedures, and quality
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control procedures.
Current Related Legislation. AB 26 (Jones-Sawyer) of the
current legislative session requires a licensee under the Act to
institute and maintain a training program to educate, inform,
and train the licensee's agents and employees regarding
compliance with the Act, and requires the Bureau to approve and
regulate the training programs. STATUS: This bill is pending in
the Senate Committee on Business, Professions and Economic
Development.
AB 567 (Gipson) of the current legislative session, would
prohibit mobile, vehicular, or technology platforms that enable
qualified patients or primary caregivers to arrange for any
delivery with a third party; would provide that a dispensary
that employs or uses the services of any person under 21 years
of age for the sale or delivery of medical cannabis or medical
cannabis products is subject to suspension or revocation of
certain state or local licenses; and would require tax penalty
amnesty programs, for medical cannabis-related businesses, as
provided. STATUS: This bill is pending in the Senate Committee
on Health.
AB 1548 (Wood) of the current legislative session, would impose
a tax in specified amounts on the distribution in this state by
a cultivator of marijuana to a licensed distributor, as
specified; require the licensed distributor to collect the tax
from the cultivator and remit it to the BOE; and require all
moneys, less refunds and costs of administration, to be
deposited into the Marijuana Production and Environment
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Mitigation Fund, as specified. This measure died in the
Assembly Committee on Revenue and Taxation.
AB 1575 (Bonta) of the current legislative session makes a
number of changes to the Act including, among others: specifies
that it is not a violation of state law for certain licensees to
sell medical cannabis under 8 ounces; specifies that no
individual or group may cultivate or distribute cannabis other
than what is specified in the Act or the Compassionate Use Act;
and, exempts any commercial cannabis activity by a holder of a
state license who complies with the Act. STATUS: This bill is
pending in the Assembly Committee on Business and Professions.
AB 2385 (Jones-Sawyer) of the current legislative session
prohibits licensing authorities from requiring a local license,
permit, or other authorization, and would require the issuance
of a state license, if the authorities determine that the
applicant meets all of the requirements of the act, as
specified, in the City of Los Angeles. STATUS: This bill is
pending in the Assembly Committee on Business and Professions.
AB 2516 (Wood) of the current legislative session provides for
the issuance of a Type 1C, or "specialty cottage," state
cultivator license, as specified, by the CDFA. STATUS: This bill
is pending in the Assembly Committee on Agriculture.
AB 2545 (Bonta) of the current legislative session authorizes
the Governor to enter into agreements with federally recognized
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sovereign Indian tribes, as defined; authorizes these agreements
to include provisions regulating activities between licensees
operating on and off the land of federally recognized sovereign
Indian tribes; authorizes the Governor to delegate to the chief
of the Bureau authority to negotiate these agreements. STATUS:
This bill is pending in the Assembly Committee on Business and
Professions.
Prior Related 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 and
established the Bureau within the DCA, under the supervision
and control of the Director of the DCA, and required the
Director to administer and enforce the provisions of the Act.
AB 266 also required the CDFA to administer the provisions of
the act related to cultivation, and required the CDPH to
administer the provisions of the Act related to manufacturing
and testing of medical cannabis. The bill also required the
BOE, in consultation with the CDFA, 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 or standards 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, set forth
standards for a physician and surgeon prescribing medical
cannabis, required the Medical Board of California to prioritize
its investigative and prosecutorial resources to identify and
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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.
REGISTERED SUPPORT:
None on file.
REGISTERED OPPOSITION:
None on file.
Analysis Prepared by:Gabby Nepomuceno / B. & P. / (916)
319-3301