BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2679| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 2679 Author: Cooley (D) Amended: 3/18/16 in Assembly Vote: 21 SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 8-0, 6/13/16 AYES: Hill, Bates, Block, Gaines, Galgiani, Jackson, Mendoza, Wieckowski NO VOTE RECORDED: Hernandez SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8 ASSEMBLY FLOOR: 79-0, 5/5/16 (Consent) - See last page for vote SUBJECT: Medical marijuana: regulation: research SOURCE: Author DIGEST: This bill requires marijuana licensing authorities to include annual reports about the number of appeals for license denials, disciplinary actions, and complaints. Authorizes the University of California's California Marijuana Research Program (Program) to develop and conduct studies to ascertain the effect of marijuana on motor skills. ANALYSIS: Existing law: AB 2679 Page 2 1)Establishes the Bureau of Medical Marijuana (Bureau) 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)) 3)Defines a "licensing authority" as 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 § 19300.5 (w)) 4)Requires each licensing authority to submit annual reports on the authority's activities to the Legislature beginning on March 1, 2023, and post the reports on the authority's Web site. Requires the report to 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 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 § 19353) 5)Establishes the Program within the University of California to conduct studies intended to ascertain the general medical AB 2679 Page 3 safety and efficacy of marijuana and develop medical guidelines for its appropriate administration and use. (Health and Safety Code § 11362.9) This bill: 1)Requires each licensing authority to include the following additional information in its annual report to the Legislature: a) The number of appeals from the denial of state licenses or other disciplinary actions taken by the licensing authority and the average 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 a comprehensive statewide number and by geographical region. 2)Authorizes the Program to develop and conduct studies to ascertain the effect of marijuana on motor skills. 3)Makes technical changes. Background 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 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 AB 2679 Page 4 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: 1)The Bureau: responsible for licensing and regulating dispensaries, transporters, and distributors. 2)Department of Fish and Wildlife: monitor and reduce environmental impacts of marijuana cultivation. 3)State Water Resources Control Board: regulate the environmental impacts of marijuana cultivation on water quality and instream flows. 4)California Department of Food and Agriculture: regulate medical marijuana cultivation and issue licenses to growers. 5)Department of Public Health: develop and enforce regulations and standards for medical marijuana product manufacturers and testing laboratories. 6)Department of Pesticide Regulation: develop pesticide use guidelines for the cultivation of medical marijuana. This bill will require these entities to annually report to the Legislature the number of appeals from the denial of state licenses or other disciplinary actions, the average time spent on these appeals, and the number of complaints submitted by citizens or representatives of cities or counties regarding licensees, provided as both a comprehensive statewide number and by geographical region. The Center for Medicinal Cannabis Research. Seeing a need to better understand the medical uses of marijuana, the Program was established in 1999 within the Center for Medicinal Cannabis Research (Center) to determine the efficacy and safety of administering medical marijuana (SB 847, Vasconcellos, Chapter 750, Statutes of 1999). The Center continues to coordinate and support cannabis research, and focusses on marijuana's potential medicinal benefits for diseases and conditions identified by the AB 2679 Page 5 National Academy of Sciences, Institute of Medicine Report and by the Workshop on the Medical Utility of Marijuana, National Institutes of Health. The Center reports that it will be assisting in evaluating the effects of cannabis on driving, as requested in AB 266 (Bonta), and on appropriate prescribing practices, pursuant to SB 643 (McGuire). This bill authorizes the Center to develop and conduct studies to ascertain the effect of marijuana on motor skills. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No SUPPORT: (Verified8/2/16) None received OPPOSITION: (Verified8/2/16) None received ASSEMBLY FLOOR: 79-0, 5/5/16 AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon NO VOTE RECORDED: Beth Gaines Prepared by:Sarah Huchel / B., P. & E.D. / (916) 651-4104 8/3/16 18:17:27 AB 2679 Page 6 **** END ****