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  ****