BILL ANALYSIS Ó
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Jerry Hill, Chair
2015 - 2016 Regular
Bill No: SB 643 Hearing Date: April 20,
2015
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|Author: |McGuire |
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|Version: |April 6, 2015 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Sarah Mason |
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Subject: Medical marijuana
SUMMARY: Enacts the Medical Marijuana Public Safety and
Environmental Protection Act. Establishes a licensing and
regulatory framework for the cultivation, manufacture,
transportation, storage, distribution and sale of medical
marijuana to be administered by a Bureau of Medical Marijuana
Regulation within the Department of Consumer Affairs and
enforced primarily at the local level.
Existing law:
1) Specifies that the entities under the Department of Consumer
Affairs (DCA) are established for the purpose of ensuring
that those private businesses and professions deemed to
engage in activities which have potential impact upon the
public health, safety, and welfare are adequately regulated
in order to protect the people of California. (Business and
Professions Code (BPC) § 101.6)
2) Licenses and regulates physicians and surgeons under the
Medical Practice Act (Act) by the Medical Board of California
(MBC) within the DCA. (BPC § 2000 et seq.)
3) Provides that the MBC shall take action against a physician
who is charged with unprofessional conduct, as specified.
(BPC § 2234)
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4) Requires the MBC to prioritize its investigative and
prosecutorial resources to ensure that physicians
representing the greatest threat of harm are identified and
disciplined expeditiously and includes in that prioritization
list: "Repeated acts of clearly excessive prescribing,
furnishing, or administering of controlled substances, or
repeated acts of prescribing, dispensing, or furnishing of
controlled substances without a good faith prior examination
of the patient and medical reason therefor." (BPC § 2220.05)
5) The Compassionate Use Act of 1996 (CUA), an initiative
measure, prohibits prosecution for the possession or
cultivation of marijuana of a patient or a patient's primary
caregiver who possesses or cultivates marijuana for the
personal medical purposes of the patient upon the written or
oral recommendation or approval of a physician. (Health and
Safety Code (HSC) § 11362.5)
6) Declares that the purposes of the CUA are:
a) 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 in the treatment of
cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma,
arthritis, migraine, or any other illness for which
marijuana provides relief.
b) 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.
c) To encourage the Federal and State governments to
implement a plan to provide for the safe and affordable
distribution of marijuana to all patients in medical need
of marijuana. (HSC § 11362.5 (b)(1)(A) to (C))
1) States that nothing in the CUA shall be construed to
supersede legislation prohibiting persons from engaging in
conduct that endangers others, or to condone the diversion of
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marijuana for non-medical purposes. (HSC § 11362.5 (b)(2))
2) Provides that, notwithstanding any other provision of law, no
physician in California shall be punished, or denied any
right or privilege, for having recommended marijuana to a
patient for medical purposes. (HSC § 11362.5 (c))
3) States existing law, relating to the possession and the
cultivation of marijuana, shall not apply to a patient, or to
a patient's primary caregiver, who possesses or cultivates
marijuana for the personal medical purposes of the patient
upon the written or oral recommendation or approval of a
physician. (HSC § 11362.5 (d))
4) Defines "primary caregiver" for purposes of the CUA as the
individual designated by a patient who has consistently
assumed responsibility for the housing, health, or safety of
that person. (HSC § 11362.5 (e))
5) States legislative intent to commission objective scientific
research by the premier research institute of the world, the
University of California (UC), regarding the efficacy and
safety of administering marijuana as part of medical
treatment. Requires UC, if it accepts by appropriate
resolution the responsibility to create a marijuana research
program (California Marijuana Research Program) that it will
develop and conduct studies intended to ascertain the general
medical safety and efficacy of marijuana, and if found
valuable, to develop medical guidelines for the appropriate
administration and use of marijuana. (HSC § 11362.9)
6) Establishes the Medical Marijuana Program Act (MMPA), which
exempts qualified patients who hold an identification card
issued pursuant to the Medical Marijuana Program (MMP) and
the caregivers of those persons, from certain state criminal
sanctions related to the possession, cultivation,
transportation, processing, or use of limited amounts of
marijuana, as specified. (HSC § 11362.7 et seq.)
7) Requires a person who seeks an identification card to pay a
fee and provide to the county health department the person's
name, proof of residency, written doctor's recommendation,
doctor's name and contact information, caregiver's name and
duties, and patient's and caregiver's government issued photo
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identification card. (HSC § 11362.715 (a))
8) Requires the California Department of Public Health (CDPH) to
establish and maintain a voluntary program for qualified
patients to apply for identification cards, and county health
departments to issue identification cards to qualified
patients and their caregivers. (HSC § 11362.71 (a) & (b))
9) Provides that persons with valid identification cards shall
not be subject to arrest for possession, transportation,
delivery, or cultivation of marijuana, absent evidence of
fraud. (HSC § 11362.71 (e))
10)Requires county health departments to issue serially numbered
identification cards to patients and caregivers containing
the following: a unique user identification number, an
expiration date, the county health department's name and
telephone number, photo identification of the cardholder, and
a toll-free Department of Public Health telephone number
enabling state and local law enforcement officers to
immediately verify the card's validity. (HSC Section
11362.735 (a))
11)Prohibits medical marijuana dispensaries that possess,
cultivate, or distribute medical marijuana from being located
within a 600 foot radius of a school, and authorizes cities
and counties to further restrict the locations of medical
marijuana collectives. (HSC § 11362.768)
12)Provides that qualified patients, persons with valid
identification cards, and the designated primary caregivers
of qualified patients and persons with identification cards
who associate within the State of California in order to
cultivate marijuana for medical purposes, collectively or
cooperatively, shall not, solely on that basis, be subject to
state criminal sanctions for the possession, sale, transport,
or other proscribed acts relating to marijuana. (HSC §
11362.775)
13)Prohibits state or local law enforcement officers from
refusing to accept an identification card unless the officer
has reasonable cause to believe that the card is being used
fraudulently or its information is false or fraudulent. (HSC
§ 11362.78)
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14)Makes it a misdemeanor offense to, among other things,
fraudulently represent a medical condition or provide any
material misinformation to a physician, health department
designee, or to law enforcement, for the purpose or falsely
obtaining an identification card; fraudulently use any
person's identification card in order to acquire, possess,
cultivate, transport, use, produce, or distribute marijuana;
counterfeit, tamper with, or fraudulently produce an
identification card; breach any confidentiality requirements
pertaining to an identification card program.
(HSC § 11362.81)
15)Lists marijuana as a hallucinogenic substance in Schedule I
of the California Uniform Controlled Substances Act. (HSC §
11054 (d))
This bill:
1)Enacts the Medical Marijuana Public Safety and Environmental
Protection Act (Act).
2)Finds and declares the following:
a) In 1996, the people of the State of California enacted
the CUA. The people of the State of California declared
that their purpose in enacting the measure was, among other
things, "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 in
the treatment of cancer, anorexia, AIDS, chronic pain,
spasticity, glaucoma, arthritis, migraine, or any other
illness for which marijuana provides relief."
b) CUA called on state government to implement a plan for
the safe and affordable distribution of marijuana to all
patients in medical need of marijuana, while ensuring that
nothing in that act would be construed to condone the
diversion of marijuana for nonmedical purposes.
c) In 2003, the Legislature enacted the MMPA.
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d) Greater certainty and minimum statewide standards are
urgently needed regarding the obligations of medical
marijuana facilities, and for the imposition and
enforcement of regulations to prevent unlawful cultivation
and the diversion of marijuana to nonmedical use.
e) Despite the passage of the CUA and the MMPA, because of
the lack of an effective statewide system for regulating
and controlling medical marijuana, cities, counties, and
local law enforcement officials have been confronted with
uncertainty about the legality of some medical marijuana
cultivation and distribution activities. The current state
of affairs makes law enforcement difficult and endangers
patient safety because of an inability to monitor the
supply of medical marijuana in the state and the lack of
quality control, testing, and labeling requirements.
f) The California Constitution grants cities and counties
the authority to make and enforce, within their borders,
"all local police, sanitary, and other ordinances and
regulations not in conflict with the general laws." This
inherent local police power includes broad authority to
determine, for purposes of public health, safety, and
welfare, the appropriate uses of land within the local
jurisdiction's borders. The police power, therefore,
allows each city and county to determine whether or not a
medical marijuana dispensary or other facility that makes
medical marijuana available may operate within its borders.
This authority has been upheld by City of Riverside v.
Inland Empire Patients Health and Wellness Center, Inc.
(2013) 56 Cal.4th 729 and County of Los Angeles v. Hill
(2011) (192 Cal.App.4th 861). Nothing in this act shall
diminish, erode, or modify that authority.
g) If a city or county determines that a dispensary or
other facility that makes medical marijuana available may
operate within its borders, then there is a need for the
state to license these dispensaries and other facilities
for the purpose of adopting and enforcing protocols for
security standards at dispensaries and in the
transportation of medical marijuana, as well as health and
safety standards to ensure patient safety. This licensing
requirement is not intended in any way nor shall it be
construed to preempt local ordinances, regulations, or
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enforcement actions regarding the sale and use of medical
marijuana, including, but not limited to, security,
signage, lighting, and inspections.
h) Greater oversight, uniformity, and enforcement are
urgently needed regarding the obligations and rights of
medical marijuana cultivators, transporters, and
distribution facilities.
i) Marijuana has widely accepted medical applications that
make it inappropriate to be classified as a Schedule I
controlled substance in the State of California.
j) For the protection of Californians, the state must act
to regulate and control medical marijuana and not preempt
local government ordinances. Cities and counties should be
allowed to impose local taxes and enact zoning regulations
and other restrictions applicable to the cultivation,
transportation, and distribution of medical marijuana based
on local needs.
aa) For the protection of California's environment and its
natural resources, all efforts must be made to prevent and
mitigate the harmful environmental impacts that can be
associated with some marijuana cultivation.
bb) The North Coast Regional Water Quality Control Board
(NCRWQCB) is currently in the process of promulgating
regulations that would create a 3-tiered system for
cultivator wastewater discharge permits. A similar
permitting system would assist the state in controlling
damaging wastewater runoff from cultivation sites, while
minimizing the burden on smaller cultivators.
cc) Nothing in the Act shall have a diminishing effect on
the rights and protections granted to a patient or primary
caregiver pursuant to the CUA.
dd) Nothing in the Act shall be construed to promote or
facilitate the nonmedical, recreational possession, sale,
or use of marijuana.
Provisions Related to Physicians/Surgeons and the MBC
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1)Adds repeated acts of clearly excessive recommending of
marijuana to patients for medical purposes without a good
faith prior examination of the patient and medical reason to
the list of types of cases the MBC shall prioritize its
investigative and prosecutorial resources for in order to
ensure that physicians and surgeons representing the greatest
threat of harm are identified and disciplined expeditiously.
2)Makes it a crime (misdemeanor) for a physician and surgeon who
recommends marijuana to a patient for a medical purpose to
accept, solicit or offer any form of renumeration from or to a
facility that has been granted a conditional license under the
Act if the physician or his or her immediate family have a
financial interest in that facility.
3)Requires MBC to consult with the California Marijuana Research
Program on developing and adopting medical guidelines for the
appropriate administration and use of medical marijuana.
4)Prohibits a physician and surgeon from recommending medical
marijuana to a patient, unless that person is the patient's
attending physician as defined in the MMPA.
5)Prohibits a person from distributing any form of advertising
for physician recommendations for medical marijuana in
California unless the advertisement bears the following notice
to consumers: "NOTICE TO CONSUMERS: The Compassionate Use Act
of 1996 ensures that seriously ill Californians have the right
to obtain and use marijuana for medical purposes where 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 medical marijuana. Physicians are
licensed and regulated by the Medical Board of California and
arrive at the decision to make this recommendation in
accordance with accepted standards of medical responsibility.
Requires advertising for physician recommendations for medical
marijuana to meet requirements set forth in the BPC related to
false and misleading information concerning professional
services. Provides that price advertising shall not be
fraudulent, deceitful, or misleading, including statements or
advertisements of bait, discounts, premiums, gifts, or
statements of a similar nature.
Establishment of the Bureau of Medical Marijuana Regulation
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And Bureau Authority
6)Defines the following terms within the Act in the BPC:
a) "Bureau" means the Bureau of Medical Marijuana
Regulation (Bureau) within DCA.
b) "Certified testing laboratory" means a laboratory that
is certified by the Bureau to perform random sample testing
of medical marijuana pursuant to the certification
standards for these facilities promulgated by the Bureau.
c) "Chief" means the Chief of the Bureau.
d) "Department" means DCA.
e) "Director" means the Director of DCA.
f) "Dispensary" means a distribution operation that
provides medical marijuana or medical marijuana derived
products to patients and caregivers.
g) "Fund" means the Medical Marijuana Regulation Fund.
h) "Licensed cultivation site" means a facility that
plants, grows, cultivates, harvests, dries, or processes
medical marijuana and that is issued a conditional license.
i) "Licensed dispensing facility" means a dispensary or
other facility that provides medical marijuana, medical
marijuana products, or devices for the use of medical
marijuana or medical marijuana products that is issued a
conditional license.
j) "Licensed manufacturer" means a person who extracts,
prepares, derives, produces, compounds, or repackages
medical marijuana or medical marijuana products into
consumable and nonconsumable forms and who is issued a
conditional license.
aa) "Licensed transporter" means an individual or entity
issued a conditional license by the Bureau to transport
medical marijuana to and from facilities that have been
issued conditional licenses.
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bb) "Marijuana" means all parts of the plant Cannabis
sativa, cannabis indica, or cannabis ruderalis, 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. "Marijuana"
does not include the mature stalks of the plant, fiber
produced from the stalks, oil or cake made from the seeds
of the plant, any other compound, manufacture, salt,
derivative, mixture, or preparation of the mature stalks
(except the resin extracted therefrom), fiber, oil, or
cake, or the sterilized seed of the plant which is
incapable of germination. "Marijuana" also means
marijuana, as defined by Section 11018 of the Health and
Safety Code.
cc) "Trespass grows" means illicit marijuana cultivation on
public or private land without the explicit permission of
the land owner.
9)Establishes the Bureau within DCA under the supervision and
control of the Chief. States that protection of the public
shall be the highest priority for the Bureau in exercising its
licensing, regulatory, and disciplinary functions; whenever
the protection of the public is inconsistent with other
interests sought to be promoted, the protection of the public
shall be paramount. Requires the Governor to appoint the
Chief at a salary to be fixed and determined by the Director
with the approval of the Director of Finance. States that the
duty of enforcing and administering the Act shall be vested in
the Chief, who is responsible to the Director. Authorizes the
Chief to adopt and enforce rules and regulations that he or
she determines are reasonably necessary to carry out the
purposes of the Act and for declaring the policy of the
Bureau, including a system for the issuance of citations for
violations of the Act. Authorizes the Chief to appoint and
fix the compensation of personnel, including, but not limited
to, clerical, inspection, investigation, and auditing
personnel, as well as an Assistant Chief. States that these
personnel shall perform their respective duties under the
supervision and the direction of the Chief.
10)Provides that funds for the establishment and support of the
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Bureau shall be advanced as a loan by the Department and shall
be repaid by the initial proceeds from fees collected pursuant
to the Act.
11)Provides the Bureau with the authority to issue, suspend, or
revoke conditional licenses related to medical marijuana in
the state and collect fees in connection with cultivation,
manufacture, transportation, storage, distribution and sale.
12)Provides the Bureau the authority to create, issue, suspend,
or revoke other licenses in order to protect patient health
and the public and to facilitate the regulation of medical
marijuana.
13)Provides the Bureau the authority to implement the Act,
including, but not limited to, all of the following:
a) Establishing rules or regulations necessary to carry out
the purposes and intent of the Act.
b) Issuing conditional licenses to persons for the
cultivation, manufacture, transportation, storage,
distribution, and sale of medical marijuana within the
state.
c) Setting application, licensing, and renewal fees for
conditional licenses.
d) Establishing standards for the cultivation,
manufacturing, transportation, storage, distribution,
provision, donation, and sale of medical marijuana and
medical marijuana products.
e) Establishing procedures for the issuance, renewal,
suspension, denial, and revocation of conditional licenses.
f) Imposing a penalty.
g) Taking action with respect to an application for a
conditional license.
h) Overseeing the operation of the Medical Marijuana
Regulation Fund and the Special Account for Environmental
Enforcement.
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i) Consulting with other state or local agencies,
departments, representatives of the medical marijuana
community, or public or private entities for the purposes
of establishing statewide standards and regulations.
j) Certifying laboratories to perform testing of medical
marijuana.
14)Requires the Bureau, on or before January 1, 2018, to
promulgate regulations for implementation of the Act,
including, but not limited to, all of the following:
a) Procedures for the issuance, renewal, suspension,
denial, and revocation of conditional licenses.
b) Procedures for appeal of fines and the appeal of denial,
suspension, or revocation of conditional licenses.
c) Application, licensing, and renewal forms and fees.
d) A time period in which the Bureau shall approve or deny
an application for a conditional license pursuant to this
part.
e) Qualifications for licensees.
f) Standards for certification of testing laboratories to
perform random sample testing of all medical marijuana
products, including standards for onsite testing.
g) Certification of testing laboratories shall be
consistent with general requirements for the competence of
testing and calibration activities, including sampling,
using standard methods established by the International
Organization for Standardization, specifically ISO/IEC
17025. States that these requirements shall apply to all
entities, including third-party laboratories, engaged in
the testing of medical marijuana pursuant to the Act.
h) Requirements to ensure conformance with standards
analogous to state statutory environmental, agricultural,
consumer protection, and food and product safety
requirements. States that these requirements, at a minimum,
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must:
i) Prescribe sanitation standards analogous to
those in the California Retail Food Code for food
preparation, storage, handling, and sale of edible
medical marijuana products.
ii) Require that edible medical marijuana products
produced, distributed, provided, donated, or sold by
licensees shall be limited to nonpotentially hazardous
food, as established by CDPH.
iii) Require that facilities in which edible medical
marijuana products are prepared shall be constructed in
accordance with applicable building standards, health
and safety standards, and other state laws.
iv) Provide that weighing or measuring devices used
in connection with the sale or distribution of medical
marijuana are required to meet existing weighing and
measuring standards.
v) Require that the application of pesticides or
other pest control in connection with the indoor or
outdoor cultivation of medical marijuana shall meet
Food and Agricultural Code standards and implementing
regulations.
1)Requires the Bureau, on or before July 1, 2017, to also
promulgate regulations for minimum statewide health and safety
standards and quality assurance standards associated with the
cultivation, transport, storage, manufacture, and sale of all
medical marijuana produced in this state.
2)Provides that local agencies shall have primary responsibility
for enforcement of the minimum statewide health and safety
standards outlined above in accordance with Bureau
regulations.
3)Requires the Bureau, in consultation with the Division of
Labor Standards Enforcement, to adopt regulations establishing
worker safety standards for entities licensed pursuant to the
Act.
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4)Requires the Bureau, in consultation with the State Water
Resources Control Board, to adopt regulations to ensure that
commercial medical marijuana activity licensed pursuant to the
Act does not threaten the state's environment and watersheds
and is otherwise in conformance with the California
Environmental Quality Act (CEQA).
5)Requires the Chief to keep a complete record of all facilities
issued a conditional license which shall be made available on
the Bureau's website.
6)Requires the Bureau to establish procedures to provide state
and local law enforcement, upon their request, with 24-hour
access to information to verify a conditional license, track
transportation manifests, and track the inventories of
facilities issued a conditional license.
7)States that the Act shall in no way supersede the provisions
of Measure D, approved by the voters of the City of Los
Angeles on the May 21, 2013, ballot for the city, or any
similar measure in other jurisdictions, which grants medical
marijuana businesses and dispensaries qualified immunity
consistent with the terms of the measure and local ordinances.
Notwithstanding the provisions of the Act, marijuana
businesses and dispensaries subject to the provisions of
Measure D or other similar qualified immunity shall continue
to be subject to the ordinances and regulations of the
relevant local jurisdiction.
Provisions Related to Licensure by the Bureau
8)States that the Bureau shall not issue a conditional license
unless the applicant has met all of the requirements of the
Act.
9)Exempts a patient who cultivates, possesses, stores,
manufactures, or transports marijuana exclusively for his or
her personal medical use and who does not sell, distribute,
donate, or provide marijuana to any other person or entity and
a caregiver who cultivates, possesses, stores, manufactures,
transports, or provides marijuana exclusively for the personal
medical purposes to no more than five specified qualified
patients for whom he or she is the primary caregiver and who
does not receive remuneration for these activities from
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licensure under the Act. States that nothing in this section
shall permit primary caregivers to organize themselves as
cooperatives or collectives of caregivers.
10)Provides that a person shall not sell or provide medical
marijuana to a patient or caregiver other than at a licensed
dispensing facility or through delivery from a licensed
dispensing facility unless otherwise authorized under the CUA
and MMPA.
11)Provides that a person shall not grow medical marijuana other
than at a licensed cultivation site unless otherwise
authorized under the CUA and MMPA.
12)Provides that a person shall not manufacture medical
marijuana or medical marijuana products other than a licensed
manufacturer unless otherwise authorized under the CUA and
MMPA.
13)Provides that a person shall not transport medical marijuana
from one facility issued a conditional license to another,
other than a licensed transporter.
14)Authorizes a licensed manufacturer to obtain medical
marijuana from a licensed cultivator and furnish medical
marijuana products to a licensed dispensary.
15)To meet the requirements under the Act for testing, provides
that medical marijuana and medical marijuana products shall be
tested by a certified testing laboratory.
16)Requires the Bureau, beginning no later than July 1, 2018, to
provide for and issue conditional licenses for all activity
authorized under the Act, including, but not limited to the
cultivation, processing, storage, transport and dispensing of
medical marijuana.
17)Clarifies that the issuance of a conditional license shall
not, in and of itself, authorize the recipient to begin
business operations, but it does certify, at a minimum, that
the applicant has paid the state conditional licensing fee,
successfully passed a criminal background check, and met the
state residency requirements.
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18)Requires an applicant, in order to begin business operations,
to obtain a license or permit from the local jurisdiction in
which he or she proposes to operate, following the
requirements of the applicable local ordinances, in addition
to the conditional license.
19)Requires an applicant for a conditional license to do all of
the following:
a) Pay the fee or fees required for each license being
applied for.
b) Register with the Bureau on forms prescribed by the
Chief which must contain sufficient information to identify
the licensee, including all of the following:
i) Name of the owner or owners of a proposed
facility, including all persons or entities having an
ownership interest other than a security interest,
lien, or encumbrance on property that will be used by
the applicant.
ii) The name, address, and date of birth of each
principal officer and board member.
iii) The address and telephone number of the proposed
facility.
iv) In the case of a cultivation site, the GPS
coordinates of the site.
a) Describe, in writing, the scope of business of the
proposed facility.
b) Provide evidence that the applicant and owner have been
legal full-time residents of the state for not less than 12
months.
c) Provide detailed operating procedures, in writing, for
the proposed facility, which shall include, but not be
limited to, procedures for facility and operational
security, prevention of diversion, employee screening,
storage of medical marijuana, personnel policies, and
recordkeeping procedures.
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d) Provide evidence that the applicant has received all
required environmental permits, including compliance with
CEQA and wastewater discharge permits.
e) Provide the applicant's fingerprint images.
h) Provide a statement, signed by the applicant under
penalty of perjury, that the information provided is true.
i) Provide any other information required by the Bureau.
34)Provides that each application for a conditional license is
separate and distinct, and authorizes the Bureau to charge a
separate fee for each.
35)States that the Bureau shall not issue a conditional license
to an individual or entity, or for a premise, against whom
there is a pending state or local administrative or judicial
proceeding, against whom there is an action initiated by a
city, county, or city and county under a local ordinance, or
who has been determined to have violated an applicable local
ordinance.
36)Authorizes a facility or entity that is operating in
conformance with local zoning ordinances and other state and
local requirements on January 1, 2016, to continue its
operations until its application for conditional licensure is
approved or denied.
37)Authorizes the Bureau to issue a conditional license and send
proof of issuance to an applicant, provided the applicant has
not committed an act or crime constituting grounds for the
denial of licensure. Requires the Chief, by regulation, to
prescribe conditions upon which a person, whose conditional
license has previously been denied, suspended, or revoked, may
be issued a conditional license.
38)Requires an application for a conditional license to be
denied and a conditional license suspended or revoked for a
past felony conviction for the possession for sale, sale,
manufacture, transportation, or cultivation of a controlled
substance, a felony criminal conviction for drug trafficking,
a felony conviction for embezzlement, a felony conviction
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involving fraud or deceit, or any violent or serious felony
conviction pursuant to subdivision (c) of Section 667.5 of, or
subdivision (c) of Section 1192.7 of, the Penal Code.
Authorizes the Bureau, at its discretion, to issue a license
to an applicant that would be otherwise denied if the
applicant has obtained a certificate of rehabilitation.
Authorizes the Chief to also deny, suspend, or revoke a
conditional license when a conditional licensee, applicant, or
employee, partner, officer, or member of an entity
conditionally licensed for specified reasons such as: making
untrue or misleading statements; engaging in conduct that
constitutes fraud or gross negligence; failing to comply with
testing provisions of the Act or any rule or regulations
adopted pursuant to the Act.
39)Requires the Chief to notify an applicant or licensee in
writing, by personal service or mail addressed to the
applicant or licensee provided in the application, when a
conditional license is denied, suspended or revoked. Requires
the Bureau to provide the applicant or licensee a hearing
within 30 days thereafter if he or she files a written request
for hearing with the Bureau. Provides that otherwise, the
denial, suspension, or revocation is deemed affirmed.
Subjects all proceedings to deny, suspend, or revoke a
conditional license to due process requirements under the law.
40)Sets the following as reasons a conditional license shall not
be approved:
a) The applicant fails to meet requirements of the Act or
requirements of any regulation adopted pursuant to the Act
or any applicable city, county, or city and county
ordinance or regulation. States that if a local government
adopts an ordinance or resolution authorizing medical
marijuana to be cultivated, manufactured, stored,
distributed, or sold within its jurisdiction, it shall
submit to the Bureau documentation detailing their renewal
requirements.
b) The applicant, or any of its officers, directors,
owners, members, or shareholders, is a minor.
c) The applicant has knowingly answered a question or
request for information falsely on the application form or
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failed to provide information requested.
d) The applicant, or any of its officers, directors,
owners, members, or shareholders has been sanctioned by the
bureau, a city, county, or city and county, for medical
marijuana activities conducted in violation of this part or
any applicable local ordinance or has had a license revoked
in the previous five years.
e) The testing, transporting, distribution, provision, or
sale of medical marijuana will violate any applicable local
law or ordinance.
f) The applicant or the owner is unable to establish that
he or she has been a resident of the state for not less
than 12 months.
41)Specifies that a conditional license is subject to the
restrictions of the local jurisdiction in which the facility
operates or proposes to operate. Clarifies that even if a
conditional license has been granted pursuant to the Act, a
facility shall not operate in a local jurisdiction that
prohibits the establishment of that type of business.
Authorizes local jurisdictions retain the power to assess fees
and taxes, as applicable, on facilities that are conditionally
licensed and the business activities of those licensees.
42)Authorizes the Bureau to adopt regulations to limit the
number of conditional licenses issued pursuant to this part
upon a finding that the otherwise unrestricted issuance of
conditional licenses is dangerous to the public health and
safety.
43)States that the Bureau shall require an annual audit of all
facilities issued a conditional license to cultivate,
manufacture, process, transport, store, or sell medical
marijuana, the reasonable costs for which shall be paid for by
the licensee. Requires completed audit reports to also be
submitted by the licensee to local code enforcement offices,
or the appropriate locally designated enforcement entity,
within 30 days of the completion of the audit. States that it
is the responsibility of each facility issued a conditional
license to develop a robust quality assurance protocol that
includes all of the provisions of the Act.
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44)Requires the Bureau to maintain confidentiality for
information identifying the names of patients, their medical
conditions, or the names of their primary caregivers received
and contained in records kept by the Bureau for the purposes
of administering the Act and exempts this information from the
California Public Records Act. States that this information
is not subject to disclosure to an individual or private
entity, except as necessary for authorized employees of the
state to perform official duties pursuant to the Act.
Specifies that information shall not be disclosed beyond what
is necessary to achieve the goals of a specific investigation
or notification or the parameters of a specific court order or
subpoena.
45)Provides that the actions of a licensee, its employees, and
its agents, that are permitted pursuant to a conditional
license and that are conducted in accordance with the
requirements of the Act and regulations adopted pursuant to
the Act, are not unlawful under state law and shall not be an
offense subject to arrest or prosecution.
46)Provides that the actions of a person who, in good faith and
upon investigation, allows his or her property to be used by a
licensee, its employees, and its agents, as permitted pursuant
to a conditional license, are not unlawful under state law and
shall not be an offense subject to arrest or prosecution.
47)Sets forth requirements for record keeping by a licensee,
specifically that a licensee shall not cultivate, process,
store, manufacture, transport, or sell medical marijuana in
the state unless accurate records are kept at the licensed
premises of the growing, processing, storing, manufacturing,
transporting, or selling by the licensee in the state. States
that the records shall include the name and address of the
supplier of marijuana received or possessed by the licensee,
the location at which the marijuana was cultivated, the amount
of marijuana received, the form in which it is received, the
name of the employee receiving it, and the date of receipt.
States that these records shall also include receipts for all
expenditures incurred by the licensee and banking records, if
any, for all funds obtained or expended in the performance of
any activity under the authority of the conditional license.
Authorizes a licensee who has a conditional license for more
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than one premises to keep all records at one of the
conditionally licensed premises. Requires records to be kept
for a period of seven years from the date of the transaction.
Authorizes the Bureau and an appropriate state or local agency
to examine the books and records of a conditional licensee and
visit and inspect the premises of a conditional licensee.
Requires books or records requested by the Bureau or an
appropriate state or local agency to be provided by the
conditional licensee no later than five business days after
the request is made.
48)Authorizes the Bureau or a state or local agency to enter and
inspect the premises of a facility issued a conditional
license between the hours of 8 a.m. and 8 p.m. on any day that
the facility is open, or at any reasonable time, to ensure
compliance and enforcement of the provisions of the Act or a
local ordinance. Provides that if a licensee or an employee
of a licensee refuses, impedes, obstructs, or interferes with
an inspection, the conditional license may be summarily
suspended and the Bureau shall directly commence proceedings
for the revocation of the conditional license.
49)Provides that if a licensee or an employee of a licensee
fails to maintain or provide the books and records required,
the licensee shall be subject to a civil fine of $15,000 per
individual violation.
Provisions Related to Fees and Funding for Implementation of
the Act
50)Sets the conditional licensing fee at a level sufficient to
fund the Bureau's administrative costs (in overseeing the
licensing program, in establishing health and safety standards
and in certifying testing laboratories), costs incurred by the
Bureau or DOJ and costs incurred by law enforcement and other
public safety entities.
51)Requires a cultivation facility fee to be assessed, in
addition to a conditional licensing fee, set at an amount
sufficient to cover the reasonable regulatory costs of
enforcing environmental impact provisions of those facilities.
Requires this fee to be distributed between the State Water
Board, Department of Fish and Wildlife, Department of Forestry
and Fire Protection, Department of Pesticide Regulation,
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Department of Food and Agriculture and local law enforcement.
52)Establishes the Medical Marijuana Regulation Fund (Fund) in
the State Treasury and states that all fees collected pursuant
to the Act shall be deposited into the Fund. Provides a
continuous appropriation to the Bureau for the purposes of
fully funding and administering the Act.
53)Creates the Special Account for Environmental Enforcement as
an account within the Fund and provides a continuous
appropriation to the Bureau to distribute monies to the
entities listed above to be used to enforce the environmental
regulation of licensed cultivation sites.
54)Requires all penalties collected to be deposited directly
into the General Fund.
55)Authorizes the Bureau to establish and administer a grant
program to allocate monies from the Fund to state and local
entities for the purpose of assisting with medical marijuana
regulation and enforcement of the Act.
Provisions Related to the Transport of Medical Marijuana
56)States that a facility issued a conditional license shall not
acquire, cultivate, process, possess, store, manufacture,
distribute, sell, deliver, transfer, transport or dispense
medical marijuana for any other reason than those authorized
under the MMPA and by any other means other than through a
licensed cultivation site or licensed manufacturer.
57)Specifies requirements for a licensed transporter to include
requirements that it ship only to facilities issued a
conditional license and only in response to a request for a
specific quantity and variety, it complete a shipping manifest
form prescribed by the Bureau prior to transporting medical
marijuana products, it securely transmit a copy of the
manifest to the licensee that will receive the medical
marijuana product as well as to the Bureau prior to transport
and that both transporters and licensed facilities maintain
each shipping manifest and make it available to local code
enforcement officers, any other locally designated enforcement
entity as well as the Bureau upon request.
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58)Specifies that transported medical marijuana products be
transported only in a locked, safe and secure storage
compartment that is securely affixed to the interior of the
transporting vehicle, not be visible from outside the vehicle
and that the vehicle travel directly from one licensed
facility to another licensed facility authorized to receive
the shipment. Requires all transport vehicles to be staffed
with a minimum of two employees, one of whom must remain with
the vehicle at all times when the vehicle contains medical
marijuana. Requires each transport team member to have access
to a secure form of communication by which to communicate with
personnel at the licensed facility at all times when the
vehicle contains medical marijuana. Requires each transport
team member to possess documentation of licensing and a
government-issued identification card at all times when
transporting or delivering medical marijuana. Clarifies that
the provisions do not authorize or permit a licensee to
transport medical marijuana or medical marijuana products
outside the state.
59)Prohibits a local jurisdiction from preventing transportation
through or to a facility issued a conditional license by a
conditionally licensed transporter acting in compliance with
the Act.
Provisions Related to Enforcement of the Act
60)Clarifies that a state agency is not required to enforce laws
regarding the site or operation of a facility issued a
conditional license.
61)Authorizes the Bureau to assist state taxation authorities in
the development of uniform policies for the state taxation of
licensees.
62)States that for facilities issued a conditional license that
are located within the incorporated area of a city, the city
shall have full power and authority to enforce the Act.
States that for licensed facilities located within the
unincorporated area of a county, the county shall have full
power and authority to enforce the Act.
63)Establishes a fine of up to $35,000 for each willful
violation of conditional license provisions of the Act.
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Establishes a fine of up to $10,000 for each technical
violation of conditional license provisions in the Act.
64)Authorizes a District Attorney, County Counsel, City Attorney
or City Prosecutor to bring an action to enjoin a violation or
the threatened violation of the Act. Provides that the action
be brought in the county in which the violation occurred or is
threatened to occur and that a local government's authority to
take requisite enforcement actions pertaining to its own
ordinances or regulations is not diminished. Clarifies that
an action under the MMPA may still be taken. Clarifies that
the Act shall not be construed to limit a law enforcement
agency's ability to investigate unlawful activity in relation
to a facility issued a conditional license.
65)Updates the MMPA so that an individual employee, officer, or
board member of a facility issued a conditional license is not
subject to criminal sanctions based solely on holding a
conditional license for the possession, cultivation,
processing, packaging, storage, transportation, sale, or
distribution of medical marijuana to a facility holding a
conditional license or directly to a qualified patient, a
person with a valid identification card, or the designated
primary caregiver of a qualified patient or person with a
valid identification card, within the state, unless the
information contained on the licensing paperwork is false or
falsified, the license has been obtained by means of fraud, or
the person is otherwise in violation of the Act.
Provisions Related to Cultivation Sites Licensed Under the Act
66)Specifies requirements for cultivation sites, specifically:
a) A site shall not be located in an area zoned
residential.
b) The Bureau shall notify local law enforcement of all
conditional licenses issued for cultivation sites in that
jurisdiction.
c) A licensed cultivation site shall display the state
license in an available and easy to read manner at the
location.
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d) The Bureau shall work with and assist state and local
law enforcement to eliminate trespass grows in the state.
1)Provides that no later than January 1, 2022, all medical
marijuana grown, produced, distributed and sold in the state
shall meet the certified organic standards. Requires the
Bureau to establish appellations of origin for marijuana grown
in California and work with county agricultural commissioners
to provide all the information and forms required for
conditional licensure as a cultivation site in a single
location.
Provisions Related to Safety and Security of Facilities
2)Requires safety security measures to both deter and prevent
unauthorized entrance into areas containing marijuana and
theft of marijuana at those facilities to be implemented by a
facility issued a conditional license. Requires security
measures to include, but not be limited to, preventing
individuals from remaining on the premises of the facility if
they are not engaging in activity expressly related to the
operations of the facility, establishing limited access areas
accessible only to authorized facility personnel and storing
all finished marijuana in a secured and locked room, safe, or
vault, and in a manner as to prevent diversion, theft, and
loss.
3)Requires a facility issued a conditional license to notify
appropriate law enforcement authorities within 24 hours after
discovering discrepancies identified during inventory,
diversion, theft, loss, or any criminal activity involving the
facility or a facility agent, the loss or unauthorized
alteration of records related to marijuana, registered
qualifying patients, personal caregivers, or facility agents
and any other breach of security.
4)Requires a licensed cultivation site to weigh, inventory, and
account for on video, all medical marijuana to be transported
prior to its leaving its origination location. Requires that,
within eight hours after arrival at the destination, the
licensed dispensing facility shall reweigh, reinventory, and
account for on video, all transported marijuana.
Provisions Related to Certified Laboratories and Testing
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5)Sets forth requirements related to a laboratory certified by
the Bureau to perform random sample testing of medical
marijuana products. Prohibits a laboratory from acquiring,
processing, possessing, storing, transferring, transporting,
or dispensing medical marijuana for any purpose other than
those authorized by the MMPA. Provides that all transfer or
transportation shall be performed pursuant to a specified
chain of custody protocol. Provides that a laboratory
certified by the Bureau to perform random sample testing of
medical marijuana products shall not acquire, process,
possess, store, transfer, transport, or dispense medical
marijuana plants or medical marijuana products except through
a patient, primary caregiver, or a facility issued a
conditional license. Provides that all transfer or
transportation shall be performed pursuant to a specified
chain of custody protocol.
Provisions Related to Taxation
6)Authorizes the Board of Supervisors of a county or the City
Council of a city to impose, by ordinance, a tax on the
privilege of cultivating, dispensing, producing, processing,
preparing, storing, providing, donating, selling, or
distributing marijuana by a licensee operating under the Act.
Authorizes the tax to be imposed for general governmental
purposes or for purposes specified in the ordinance. Requires
the Board of Supervisors or City Council to specify in the
ordinance the activities subject to the tax, the applicable
rate or rates, the method of apportionment, and the manner of
collection of the tax. Clarifies that a tax imposed pursuant
to this section is a tax and not a fee or special assessment,
and the tax is not required to be apportioned on the basis of
benefit to any person or property or be applied uniformly to
all taxpayers or all real property. Provides that a tax
imposed by a city or county may include a transactions and use
tax imposed solely for marijuana or marijuana products and
that the tax may be imposed at any rate specified by the Board
of Supervisors or City Council, and the tax rate authorized by
this section shall not be considered for purposes of the
combined tax rate limitation. Specifies that the tax
authorized may be imposed upon any or all of the activities
outlined above, regardless of whether the activity is
undertaken individually, collectively, or cooperatively, and
SB 643 (McGuire) Page 27
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regardless of whether the activity is for compensation or
gratuitously, as determined by the Board of Supervisors or
City Council. Requires the Board of Supervisors to specify
whether the tax applies throughout the entire county or within
the unincorporated area of the county. Subjects a tax for
these purposes to applicable voter approval requirements
imposed by law.
Provisions Related to Quality, Standards, Testing and Labeling
of Medical Marijuana Products and Guidelines for Edible Medical
Marijuana Products
7)Defines the following terms in the Sherman Food, Drug and
Cosmetics Law:
a) "Bureau" means the Bureau of Medical Marijuana
Regulations in the DCA.
b) "Certified testing laboratories" means a laboratory that
is certified by the Bureau to perform random sample testing
of medical marijuana for patients, primary caregivers, and
facilities issued conditional licenses under the Act,
pursuant to the certification standards for those
facilities promulgated by the Bureau.
c) "Edible medical marijuana product" means medical
marijuana or a medical marijuana-derived product that is
ingested or meant to be ingested through the mouth and into
the digestive system.
d) "Marijuana" means all parts of the plant Cannabis sativa
L. sativa, cannabis indica, or cannabis ruderalis, 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. "Marijuana"
does not include the mature stalks of the plant, fiber
produced from the stalks, oil or cake made from the seeds
of the plant, any other compound, manufacture, salt,
derivative, mixture, or preparation of the mature stalks
(except the resin extracted therefrom), fiber, oil, or
cake, or the sterilized seed of the plant which is
incapable of germination. "Marijuana" also means
marijuana, as defined by Section 11018.
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e) "Labor peace agreement" means an agreement between an
entity and a bona fide labor organization that, at a
minimum, protects the state's proprietary interests by
prohibiting labor organizations and members from engaging
in picketing, work stoppages, boycotts, and any other
economic interference with the applicant's business. This
agreement means that the applicant has agreed not to
disrupt efforts by the bona fide labor organization to
communicate with, and attempt to organize and represent,
the applicant's employees.
f) "Representative samples" means samples taken from each
batch or shipment of medical marijuana received from a
licensed cultivation site or any other source if intended
for sale.
74)Requires the Bureau to establish quality assurance protocols
to ensure uniform testing standards for all medical marijuana
sold via dispensaries or other facilities, or cultivated or
manufactured by facilities that are issued a conditional
license. Requires the Bureau, in consultation with outside
entities at its discretion, to develop a list of certified
testing laboratories that can perform uniform testing in
compliance with this article, and post that list on its
website.
75)Requires a facility issued a conditional license to bear the
responsibility for contracting with certified testing
laboratories for regular, systematic testing of representative
samples of all medical marijuana cultivated or intended for
sale or distribution, and shall bear the cost of that testing.
Requires a facility issued a conditional license to maintain
records of testing reports for seven years, either on site in
a digital format or at a secure off-site location in either
digital or paper format. Requires facilities to provide
results of test reports to local code enforcement officers,
any other locally designated enforcement entity, and the
Bureau upon request.
76)States that quality assurance protocols shall be required
between all licensed cultivation sites, licensed
manufacturers, and licensed dispensing facilities to guarantee
safe and reliable medicinal marijuana delivery to all
SB 643 (McGuire) Page 29
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patients. Outlines these quality assurance protocols to
include:
a) Providing supplier information to dispensaries in order
for recall procedures to be implemented, if and when
necessary.
b) Safety testing of all medical marijuana prior to
packaging for sale and patient exposure to identify and
eliminate microbiological contaminants and chemical
residue.
c) Labeling of all medical marijuana and medical marijuana
products that shall, at a minimum, include:
i) A list of pharmacologically active
ingredients, including, but not limited to,
tetrahydrocannabinol (THC) and cannabidiol (CBD)
content, clear recommended dosage, and the size or
volume of the recommended dose.
ii) Clear indication, in bold font, that the
product contains medical marijuana.
iii) The statement "FOR MEDICAL USE ONLY. KEEP OUT
OF REACH OF CHILDREN AND ANIMALS" in bold print.
iv) Identification of the source and date of
cultivation and manufacture.
v) The name and location of the dispensary
providing the product.
vi) The date of sale.
vii) Any other requirements set by the Bureau.
77)Provides that for purposes of these provisions, edible
medical marijuana products are deemed to be unadulterated food
products. Authorizes baked edible medical marijuana products,
including but not limited to, brownies, bars, cookies and
cakes, tinctures and other edible medical marijuana products
that do not require refrigeration or hot holding to be
manufactured, sold or otherwise distributed at facilities
SB 643 (McGuire) Page 30
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issued a conditional license under the Act.
78)Requires a facility issued a conditional license to have an
owner or employee who has successfully passed an approved and
accredited food safety certification examination prior to
selling, manufacturing or distributing edible medical
marijuana products requiring refrigeration or hot holding.
Requires individuals manufacturing or selling edible medical
marijuana products to thoroughly wash their hands before
commencing production and before handling finished edible
medical marijuana products.
79)States that all edible medical marijuana products sold for
direct consumption and infused with marijuana concentrate
shall be individual wrapped at the original point of
preparation and in a fashion that does not exceed a single
dose for one individual.
80)Requires products containing THC to be prepared in compliance
with maximum potency standards for THC and THC concentrates
set forth in the Bureau's regulations.
81)Sets forth requirements for labeling of edible medical
marijuana products. Requires, prior to sale or distribution
at a licensed dispensing facility, edible medical marijuana
products shall be labeled and in an opaque and tamper evident
package. Labels and packages of edible medical marijuana
products shall not be made to be attractive to children. All
edible medical marijuana product labels shall include the
following information, prominently displayed and in a clear
and legible font:
a) Manufacture date and source.
b) The statement "KEEP OUT OF REACH OF CHILDREN AND
ANIMALS" in bold print.
c) The statement "FOR MEDICAL USE ONLY."
d) Net weight of medical marijuana in package.
e) A warning if nuts or other known allergens are used and
shall include the total weight, in ounces or grams, of
medical marijuana in the package.
SB 643 (McGuire) Page 31
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f) List of pharmacologically active ingredients, including,
but not limited to, THC and CBD content, clear recommended
dosage, and the size or volume of recommended dose.
g) Any other requirement set by the Bureau.
82)Provides that photos or images of food are not allowed on
edible medical marijuana product packages or labels and only
generic food names may be used to describe edible medical
marijuana products.
General Provisions and Reporting Requirements
83) Requires, on or before July 1, 2016, the State Board of
Equalization (BOE) to complete a report and submit it to the
Legislature and Governor's Office on the actual tax collected
actual tax collected on the sale of medical marijuana, using
the most current data available. States that the report
should also include expected tax revenues, under the existing
tax structure, for the years 2016 to 2021, inclusive.
84)Provides that that the provisions of the Act are severable.
Outlines rationale for a limitation on the public's right of
access to the meetings of public bodies or the writings of
public officials and agencies within the meaning of Section 3
of Article I of the California Constitution as necessary for
purposes of compliance with the federal Health Insurance
Portability and Accountability Act of 1996 (42 U.S.C. Sec.
1320d et seq.), the Confidentiality of Medical Information Act
(Part 2.6 (commencing with Section 56) of Division 1 of the
Civil Code), and the Insurance Information and Privacy
Protection Act (Article 6.6 (commencing with Section 791) of
Part 2 of Division 1 of the Insurance Code).
FISCAL EFFECT: Unknown. This bill has been keyed "fiscal" by
Legislative Counsel.
COMMENTS:
1. Purpose. The Author is the Sponsor of this measure.
According to the Author, "SB 643 seeks to resolve many of the
SB 643 (McGuire) Page 32
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issues created by the enactment of the Compassionate Use Act
and subsequent legislation. SB 643 creates a statewide
comprehensive program overseeing the medical marijuana
industry, from planting to consumption, and all the steps in
between. California voters made it clear that they wanted
medical marijuana to be legalized, but issues and concerns
for growers, doctors, dispensaries, law enforcement, district
attorneys, cities, counties and others have only become more
complicated."
The Author, who represents the primary growing region for
medical marijuana in the western United States, specifically
remote expanses of Mendocino, Humboldt and Trinity counties,
which are responsible for up to 70% of the marijuana grown in
the west, notes that much of this area of the state has come
to rely on the economic benefits of marijuana cultivation,
but also suffers from the negative environmental, public
safety and public health effects that can arise from rogue
cultivators and lack of regulation. According to the
Author, "trespass grows have become an environmental disaster
in this region, illegally diverting millions of gallons of
water from rivers and streams, creating a dumping ground for
pesticides, insecticides, rodenticides and fertilizers, and
depositing huge amounts of sediment into our waterways from
crop runoff." The Author notes that it is imperative that
the Legislature pass the best comprehensive measure possible
this year.
According to the Author, since the voters of California
passed Proposition 215 in 1996, it has become clear that
there needs to be a comprehensive regulation bill from the
Legislature that oversees the cultivating, processing,
manufacturing, transportation, prescribing and sale of
medical marijuana. The Author adds that the Legislature has
worked hard over the last couple of years to enact a
regulatory program that will recognize the voter's mandate,
streamline the ability of the industry to grow and sell a
legal product and that this bill contains much of that hard
work as well as reflects the efforts of many groups,
individuals who have spent years working in this industry.
The Author notes that currently, there are virtually no rules
and regulations on the cultivation side of the medical
marijuana industry, and it is important that to bring this
SB 643 (McGuire) Page 33
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legal crop into the regulatory framework expected for other
commodities. The Author adds that the severe drought
California is experiencing has only made the need for his
legislation all the more urgent.
The bill focuses on a number of key aspects of medical
marijuana cultivation and proposes regulatory changes for
those items. According to the Author, the bill:
Bans commercial cultivation sites in areas zoned
residential. According to the Author, this has been a
big issue for neighborhoods and residences around the
state. Commercial and industrial uses do not belong in
residential areas, and medical marijuana grows create
special problems that neighbors shouldn't have to deal
with.
Requires that all medical marijuana grown,
produced, distributed, recommended for use, and sold in
the state meet the California certified organic
standards set forth in the bill by January 1, 2022.
According to the Author, this is an effort to guard
against consumption of harmful and damaging products,
and to help protect the cultivating watersheds and
environment from toxics.
Creates "Appellations of Origin" for medical
marijuana. The Author notes that, similar to wine
grapes, this will help establish and perpetuate
authenticity in the industry.
Allows local governments to impose a tax or fee on
cultivation, above the ultimate sales tax, to help
defray the expense of regulating the cultivation and
processing of the commodity in their jurisdiction. The
Author states that this is designed to make sure local
authorities can afford to pay for the implementation of
the regulations allowed under this legislation or any
other.
Does not supersede provisions of Measure D, as
approved by the voters of the City of Los Angeles, or
other similar measures. According to the Author, this
provision is important to reflect decisions made by
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residents of L.A. and is the same language referenced in
most of the other similar legislative efforts to
regulate medical marijuana over the past number of
years.
Establishes licenses as valid if both the state
and the local jurisdiction approved the applications.
The Author states his goal of allowing as much local
control as possible.
Requires all licensed location and license
information to be given to local law enforcement.
According to the Author, in an effort to prevent wasted
resources and limit dangerous circumstances, local law
enforcement should know when and where all licensees are
operating.
Recognizes regulations being promulgated by the
North Coast Regional Water Quality Control Board to
create a new three-tiered system for cultivator/grower
wastewater discharge permits. According to the Author,
the new Bureau would be required to create a similar
permitting system for the entire state which would
strongly enhance waterway and environmental regulations
and oversight of marijuana grows.
Authorizes longer terms of licensure. According
to the Author, under the bill, a conditional license
issued will be valid for 12 months after the date of
issuance and then after the initial 12-month period, a
conditional license may be renewed for a period of 36
months. The Author states that this is a departure from
previous bills that only give 12-month renewals and once
licensees have established themselves, the Author does
not believe they should have to go through the process
of renewal every year.
Requires the Bureau to work with county
agricultural commissioners to provide all information
and forms required for conditional licensure as a
cultivation site in a single location, including state
licensure, local requirements in that jurisdiction, and
environmental requirements. The Author notes that this
"one stop shop" concept is designed to help potential
SB 643 (McGuire) Page 35
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licensees through the many levels of regulations. The
Author's goal is to make it as easy as possible for
applicants to comply with local, regional and state
regulations.
1. Compassionate Use Act of 1996. Since the approval of the
CUA, Proposition 215, by voters in 1996, state law has
allowed Californians access to marijuana for medical
purposes, and prohibits punitive action against physicians
for making medical marijuana recommendations. The CUA
established the right of patients to obtain and use marijuana
to treat specified illnesses and any other illness for which
marijuana provides relief. The CUA prohibits prosecution for
growing or using marijuana for Californians who have the oral
or written recommendation of their doctors and for these
patients' caregivers.
Additionally, the CUA specifically protects physicians who
recommend the use of marijuana to patients for medical
purposes and exempts qualified patients and their primary
caregivers from California drug laws prohibiting possession
and cultivation of marijuana.
The CUA is a very general law. While it establishes the right
of a patient to obtain medical marijuana pursuant to a
physician's recommendation, the initiative then simply
encourages the state and federal governments to "implement a
plan for safe and affordable distribution of marijuana [to
qualified patients]." It has been argued that very little
has been done to implement the initiative. Instead of a
comprehensive implementation plan, numerous uncoordinated
bills have been introduced in the Legislature. Further, the
courts have only provided a small measure of clarity and
certainty in this area.
2. Medical Marijuana Program (MMP). Established by SB 420
(Vasconcellos, Chapter 875, Statutes of 2003) and
administered by the California Department of Public Health
(CDPH) when the Legislature sought to clarify Prop 215 and
the CUA, the MMP created a State-authorized medical marijuana
identification card (MMP Card), along with a registry
database for verification of qualified patients and their
primary caregivers. Participation by patients and primary
caregivers in this identification card program is voluntary.
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The MMP web-based registry allows law enforcement and the
public to verify the validity of a qualified patient or
primary caregiver's MMP Card as authorization to possess,
grow, transport, and/or use medical marijuana within
California. A qualified patient or primary caregiver may
possess no more than 8 ounces of dried marijuana per
qualified patient (HSC § 11362.77). Under the MMP, a patient
or qualified caregiver with a recommendation for medical
marijuana from a licensed California physician can apply for
MMP Card through a local county public health department.
Fees for the card registration vary from county to county and
the card is valid for one year, after which the card must be
renewed. A primary caregiver card will expire when the
patient's card expires.
In order to apply for a MMP Card, a patient or qualified
caregiver must reside in the county where they apply, present
the physician recommendation for medical marijuana, and pay
the fee required by the county. Upon issuance of the MMP
Card, the card is registered into the online database.
A patient or a qualified caregiver is not required to obtain
a MMP Card or to participate in the MMP in order to use
medical marijuana upon the recommendation of a physician
under the CUA.
California patients who obtain a physician's oral or written
recommendation are protected from prosecution in California
for possessing or cultivating an amount of marijuana
reasonably related to their current medical needs, as are
their caregivers. Patients and caregivers who obtain a MMP
Card from their county health department are protected from
arrest and prosecution for possessing, transporting,
delivering, or cultivating marijuana.
3. Recent Court Cases and Rulings. In 2010, the California
Supreme Court ruled in People v. Kelly supra that the MMPA
section limiting quantities of marijuana is unconstitutional
because it amends a voter initiative. Additionally, the U.S.
Supreme Court ruled in Gonzales v. Raich (2005) 545 U.S. 1
that the Federal Government can enforce marijuana prohibition
despite state medical marijuana laws. Meanwhile, many city
and county officials have expressed confusion about the scope
of state medical marijuana law, and some have passed
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ordinances that have been overturned by the courts.
The California Supreme Court recently granted review in
several cases related to the rights of medical marijuana
patients and dispensaries, specifically the legality of local
rules regarding the operation and location of dispensaries
and cultivation sites. Pack v. City of Long Beach (review
granted Jan. 18, 2012, S197169) was dismissed as being moot
because the issue the Court was considering resolved itself.
The original ordinance at issue was repealed and replaced by
Ordinance No. 12-0004, which bans medical marijuana in the
county. In 2013, the Court, in City of Riverside v. Inland
Empire Patient's Health and Wellness Center, upheld that
local governments have inherent zoning power. The issue in
this case was whether California's medical marijuana statutes
preempt a local ban on facilities that distribute medical
marijuana. The Court concluded they do not and upheld the
City of Riverside's implementation of a ban on medical
marijuana dispensaries and on any facility that is prohibited
by federal or state law. People v. G3 Holistic (review
granted Jan. 18, 2012, S198395) was dismissed and remanded
based on the Riverside case.
4. California Attorney General's Compassionate Use Guidelines.
In 2003, SB 420 additionally required the California Attorney
General to adopt "guidelines to ensure the security and
non-diversion of marijuana grown for medical use" (HSC §
11362.81 (d)). To fulfill this mandate, in August of 2008,
the Attorney General published Guidelines for the Security
and Non-Diversion of Marijuana Grown for Medical Use
(California Attorney General. August 2008) (Guidelines). The
Guidelines are intended 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.
5. Marijuana - A Schedule I Drug. Even though California voters
enacted the CUA to permit the use of marijuana for medical
purposes by persons deemed qualified by their physicians,
marijuana still is an illegal drug both under federal and
state law, and its use, possession, distribution,
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cultivation, or sale carries criminal penalties. Under
California law, marijuana is listed as a hallucinogenic
substance in Schedule I of the California Uniform Controlled
Substances Act (HSC § 11054 (d)). Under federal law,
possession of marijuana, even by medical users, continues to
be a crime. The federal Controlled Substances Act specifies
that, except as provided, it is unlawful for any person
knowingly or intentionally to manufacture, distribute, or
dispense, or possess with intent to manufacture, distribute,
or dispense a controlled substance. (21 U.S.C. Sec. 841(a))
The only exception provided in the Controlled Substances Act
for marijuana, a Schedule I drug, is for its use in
government-controlled research projects.
6. U. S. Department of Justice Guidance Regarding Marijuana
Enforcement. In August of 2013, the U.S. Department of
Justice (USDOJ) issued a memorandum titled "Guidance
Regarding Marijuana Enforcement" to all U.S. Attorneys. The
memorandum updated the prior guidance given by USDOJ
regarding marijuana enforcement under the federal Controlled
Substances Act, in light of state ballot initiatives that
legalize marijuana under state laws and that provide for the
possession and use of small amounts of marijuana.
While affirming that marijuana is still, at the federal level,
considered a dangerous drug and that the illegal distribution
and sale of marijuana is a serious crime, the memorandum
outlines enforcement priorities that are particularly
important to the federal government, including: preventing
distribution to minors; preventing revenue from marijuana
from going to criminal enterprises; preventing diversion to
other states where marijuana is not legal under state law;
preventing state-authorized marijuana from being a cover for
trafficking in other illegal drugs or illegal activity;
preventing violence in cultivating and distributing
marijuana; preventing drugged driving and other public health
problems from marijuana use; and preventing growing,
possessing or using marijuana on public lands or on federal
property
The document clearly lays out the federal expectation for the
states that have legalized marijuana, even if only for
medical purposes, that they will develop a robust system of
regulation and enforcement, and that such a system will
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reduce the likelihood of federal enforcement activity.
7. Medical Marijuana Regulation in Other States. Currently, 23
States and the District of Columbia currently have laws
related to medical marijuana or create a cannabis program or
legal provisions to allow for the medical use of marijuana.
These states also typically have a patient registry to
provide for some protection against arrest for possession of
medical marijuana, up to a certain amount. 12 additional
states have laws providing for limited access to medical
marijuana products strictly for medical purposes. In these
states, a focus is on authorizing access to accommodate
clinical research and clinical research trials, such as
experimental treatments of seizure disorders or epilepsy.
Four states authorize the recreational use of marijuana. In
Alaska, adults age 21 and older can now transport, buy or
possess up to an ounce of marijuana and six plants. Oregon
voters approved a similar measure allowing adults to possess
up to an ounce of marijuana in public and 8 ounces in their
homes, set to take effect July 1. Most recently, a measure
approved by voters went into effect in the District of
Columbia that legalizes possession of small amounts of
marijuana. Colorado and Washington previously passed similar
ballot measures legalizing marijuana in 2012.
The experiences of other states have helped to inform the
current conversation in California. Notably, this bill
establishes standards for transport of medical marijuana
products and security surrounding transport, proper
preparation and labeling of edible medical marijuana products
and requirements for testing of products. Other states have
attempted to ensure safety for the transit of these products,
particularly given the high value of products and tendency
toward cash transactions in the industry. However in
Washington and Oregon, third-party carriers are not
permitted, creating challenges for transport of products.
Colorado authorizes third-party carriers with proper
documentation to transport these products and private
transport companies, often employing armed personnel, are
being utilized in states that authorize both medical
marijuana use and regulate marijuana for recreational
purposes. Efforts to create a regulatory environment
specifically for the transport of products could also result
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in an increase in the use of private security firms here.
With regards to edible medical marijuana products, concerns
have been raised over the lack of proper labeling and dosage
in other states and efforts aimed at preventing accidental
ingestion (such as labeling requirements) are taking shape.
Edible products often produce delayed and longer-lasting
results than other methods of delivery and consumers may be
harmed by a lack of accuracy in information about the potency
of edible medical marijuana products and a lack of awareness
by patients of the amount of THC they may be ingesting. This
bill also sets standards for testing medical marijuana
products and the certification of testing laboratories. A
report to the Oregon Legislature noted that, in the absence
of any guidance from the United States Department of
Agriculture and the Food and Drug Administration, many state
regulatory agencies have determined that some safety testing
of medical marijuana products is better than no
safety-testing whatsoever, but that assumption creates other
challenges when testing is done at unregulated or potentially
substandard facilities and products potentially end up being
sold with certificates of safety that may not be true or
authentic and could in fact be misleading. Health risks have
been cited for medical marijuana products that are treated
with pesticides or other contaminants and proper testing by
certified laboratories, as this bill establishes, is seen as
an important measure to ensure product quality.
8. Trespass Grows and Environmental Concerns. California land,
watersheds and some species, particularly in the Author's
district, have been significantly damaged as a result of
certain marijuana cultivation efforts. "Trespass grows",
cultivating marijuana without permission on public, tribal or
privately owned land, have been associated with wildlife
poisoning, use and dumping of fertilizers and pesticides,
illegal water diversions and water pollution, logging and
land disturbance, and severe problems with garbage and human
waste. These industrial-size marijuana grows, taking place
in the National Forests and on private timberland in some of
the state's most remote and ecologically sensitive areas, are
the subject of a recent study by the California Department of
Fish and Wildlife (CDFW), Impacts of Surface Water Diversions
for Marijuana Cultivation on Aquatic Habitat in Four
Northwestern California Watershed, which showed that during
drought conditions, water demand for marijuana cultivation
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exceeded stream flow in three of four study watersheds and
that diminished stream flow from this water-intensive
activity is likely to have lethal to sub-lethal effects on
state and federally listed salmon and steelhead trout and
will cause further decline of sensitive amphibian species.
By using online tools to count marijuana plants and measure
greenhouses, and conducting inspections of marijuana
cultivation sites with state wildlife officers and local law
enforcement, CDFW scientists quantified plant numbers and
water use. Utilizing stream flow data provided by staff at
the National Oceanic and Atmospheric Administration (NOAA),
CDFW determined water demand for cultivation could use more
than 100 percent of stream flow during the summer dry season
in three of four study watersheds. All the streams monitored
in watersheds with large scale marijuana cultivation went dry
and the only stream monitored that didn't go dry contained no
observed marijuana cultivation.
9. Related Legislation This Year. AB 26 (Jones-Sawyer) and AB
34 (Bonta) are substantively similar to previous legislative
efforts and aim to enact the Medical Cannabis Regulation and
Control Act and would create the Division of Medical Cannabis
Regulation and Enforcement within the Department of Alcoholic
Beverage Control. ( Status: Both bills are currently pending
in the Assembly Committee on Business and Professions.)
AB 226 (Cooley) is very similar to this bill and also would
create a Bureau of Medical Marijuana Regulation within DCA.
( Status: The bill is also currently pending in the Assembly
Committee on Business and Professions.)
AB 243 (Wood) would require all medical marijuana cultivation
to be conducted in accordance with state and local laws and
best practices, as specified, and would require state
agencies to address environmental impacts of medical
marijuana cultivation and coordinate with local governments
in enforcement efforts. ( Status: The bill is currently
pending in the Assembly Committee on Agriculture.)
10.Prior Related Legislation. SB 1262 (Correa) of 2014 is also
very similar to this bill and AB 266 and would have created a
Bureau of Medical Marijuana Regulation within DCA. ( Status:
The bill was held under submission in the Assembly Committee
on Appropriations.)
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AB 1894 (Ammiano) of 2014, AB 473 (Ammiano) of 2013 and AB
604 (Ammiano) of 2013 would have established an Act to
license and regulate the cultivation, manufacture, testing,
transportation, storage, distribution, and sale of medical
cannabis within the Department of Alcoholic Beverage Control.
( Status: AB 1894 and AB 473 both failed passage on the
Assembly Floor; AB 604 was referred to the Senate Committee
on Public Safety but was not set for hearing in enough time
for consideration before the Legislature adjourned.)
SB 439 (Steinberg) of 2013 would have exempted
medical-marijuana collectives and cooperatives from criminal
liability for possession, cultivation, possession for sale,
sale, transport, importation, and furnishing marijuana. The
bill also would have clarified MBC enforcement of medical
marijuana recommendations, what constitutes unprofessional
conduct, and the ban on the corporate practice of medicine.
( Status: The bill was amended to deal with an entirely
different issue.)
SB 1182 (Leno) of 2012 provided that a cooperative or
collective that operates within the Attorney General's (AG)
guidelines shall not be subject to prosecution for marijuana
possession or commerce, as specified; and provided that where
such an entity operates within the AG's guidelines, the
entity and its employees, officers and members shall not be
subject to prosecution for marijuana commerce because the
entity or its employees, officers, or members received
compensation for actual expenses incurred in carrying out
activities in compliance with the guidelines. ( Status : This
bill died on the Senate Floor.)
SB 129 (Leno) of 2012 prohibited employment discrimination on
the basis of a person's status as a qualified patient
(medical marijuana user) or on the basis of the person's
positive drug test for marijuana, provided the person is a
qualified patient and the medical use of marijuana does not
occur at the place of employment or during hours of
employment. ( Status : The bill died on Senate Inactive
File.)
AB 2312 (Ammiano) of 2012 established a nine-member Board of
Medical Marijuana Enforcement within the DCA to regulate the
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medical marijuana industry and to collect fees from medical
marijuana businesses to be deposited into a new Medical
Marijuana Fund. The bill would have authorized local taxes
on medical marijuana up to 5%. ( Status : The bill failed
passage in this Committee.)
AB 2465 (Campos) of 2012 would have made medical marijuana
patient and caregiver identification cards mandatory, and
required medical marijuana collectives to keep copies of
members' identification cards. ( Status : The bill was never
heard in a policy committee of the Legislature.)
SB 626 (Calderon) of 2011 would have required the Board of
Equalization (BOE) to establish a nine-member task force to
conduct a study to determine ways to enhance collections of
sales and use taxes on retail sales of marijuana and ensure
proper regulation of the cultivation, transportation, and
distribution of marijuana and marijuana products. ( Status :
This bill was held in the Senate Committee on
Appropriations.)
SB 847 (Correa) of 2011 would have prohibited any medical
marijuana entity that possesses, cultivates, or distributes
medical marijuana from locating within 600 feet of a
residential area unless a local ordinance has been adopted to
specifically regulate the location of these entities in
relation to residential use. ( Status : This bill was vetoed
by Governor Brown.)
AB 1300 (Blumenfield, Chapter, 196, Statutes of 2011)
provided that a local government may enact an ordinance
regulating the location, operation or establishment of a
medical marijuana cooperative or collective. The bill also
authorized a local government to enforce such ordinances
through civil or criminal remedies and actions and authorized
the local government to enact any ordinance that is
consistent with the MMP, which is intended to implement the
CUA.
AB 1017 (Ammiano) of 2011 would have made the cultivation of
marijuana alternatively punishable as a misdemeanor with a
penalty of imprisonment in a county jail for a period of not
more than one year. ( Status : This bill failed passage on
the Assembly Floor.)
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AB 223 (Ammiano) of 2011 provided that the CUA does not
authorize a qualified patient or person with an
identification card to engage in the smoking of medical
marijuana within 600 feet of the grounds of a school,
recreation center, or youth center, unless the medical use
occurs within a residence or within a medical marijuana
cooperative, collective, or dispensary. ( Status : This bill
failed passage in the Assembly Committee on Public Safety.)
AB 2650 (Buchanan, Chapter 603, Stats. 2010) prohibited the
operation or establishment of a medical marijuana
cooperative, collective, dispensary or provider within 600
feet of a school; provided that ordinances adopted prior to
January 1, 2011 regulating the location or establishment of
such a medical marijuana entity shall not be preempted by the
bill; authorized a local entity to only adopt an ordinance
that restricts the location or establishment of a medical
marijuana entity at a further distance than is restricted by
the bill.
SB 1098 (Migden, 2008) would have required the State Board of
Equalization to administer a tax amnesty program, as
specified, for medical marijuana dispensaries, as defined.
( Status : This bill failed passage in the Senate Committee on
Revenue and Taxation.)
SB 529 (Migden, 2007) would have required the Board of
Equalization to administer a tax amnesty program, as
specified, for medical marijuana dispensaries. ( Status :
This bill was amended to deal with an entirely different
subject.)
SB 420 (Vasconcellos, Chapter 875, Statutes of 2003)
established the Medical Marijuana Program Act, a statewide,
voluntary program for the issuance of identification cards to
identify persons authorized to engage in the medical use of
marijuana under the CUA.
11.Policy Issues :
a) Sunrise Review. The Legislature uses a "Sunrise
Model" for the purpose of assessing requests for new or
increased occupational regulation, including the creation
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of any new licensing scheme or licensing entity within the
DCA. Government Code Sections 9148 et seq. require that
"Prior to consideration by the Legislature of legislation
. . . creating a new category of licensed professional, a
plan for the establishment and operation of the proposed .
. . new category of licensed professional shall be
developed by the author or sponsor of the legislation."
The Code further states: "The necessary data and other
information required by this section shall be provided to
the Legislature with the initial legislation and forwarded
to the policy committees in which the bill will be heard."
Correspondingly, the Committee Rules of this Committee
require: "Prior to hearing any bill or other measure that
proposes to create a new state licensing agency or a new
category of licensed or regulated professional, the Author
or sponsor of the legislation shall develop a plan for the
establishment and operation of the agency or creation of
the new licensed category in accordance with the
requirements of Government Code Section 9148 et seq. The
plan shall include the completion of a regulation proposal
review worksheet titled the "Sunrise Questionnaire" by the
Author or sponsor of the legislation."
This questionnaire is designed to assist proponents of new
regulatory programs to collect and organize information
that is necessary for an objective evaluation of the need
and justification for the proposal. If a new program is
to be established within the DCA or any other agency under
this Committee's jurisdiction, the Committee is better
informed based on responses in the questionnaire and in a
better position to properly evaluate and respond to the
proposal. Typically the completion of the Sunrise process
is a multi-year effort, with meetings and hearings being
convened during the fall Interim Recess in order for the
Committee to hear testimony from the stakeholders in a
legislative proposal, including both the proponents and
the opponents. This enables the Committee to ascertain
the level of need for regulation, the type of regulation
that is needed, any impediments to adopting the proposed
regulatory scheme, and whether the proposed regulation is
adequate to address the identified level of consumer harm,
and is the least onerous way to efficiently regulate in
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that area.
The Author has not submitted a plan to this Committee for
the establishment and operation of this new agency
pursuant to Section 9148 of the Government Code and the
Rules of the Committee, and therefore there is no
corresponding Sunrise Questionnaire completed which would
provide some detail to some of the more important aspects
of regulating medical marijuana and medical marijuana
products in California by a Bureau under the DCA.
b) Implementation of the Act through rulemaking, rather
than establishing a clear statutory framework. The bill
leaves the administration of the Act to the rulemaking
process by requiring the Bureau to promulgate myriad
regulations. This process can take years, given
requirements for notification, public comment and
additional delays that arise whenever amendments to
proposed regulations are made. It is unlikely that the
Bureau would be able to meet the deadlines for regulations
set forth in this bill, and the regulatory process in
general has been criticized for lacking transparency and
robust stakeholder input that the Legislative process
allows for.
c) A Bureau within the Department of Consumer Affairs
(DCA) may not be the most appropriate agency to administer
such an extensive regulatory program as envisioned in this
measure, given a possible lack of expertise at the DCA on
issues surrounding medical marijuana. This bill proposes
to establish a Bureau tasked with enormous administrative
responsibility within the DCA to implement a complex
regulatory structure with implications for multiple levels
of government that relies on expertise and an
understanding of often confusing legal frameworks within
multiple federal, state and local jurisdictions. Among
other responsibilities, the Bureau would have to
promulgate considerably dense and challenging regulations
to administer the Act and create a robust licensing
program as well as advance regulations establishing
standards for worker safety, standards for environmental
quality and impacts on CEQA, health and safety standards
and quality assurance standards for medical marijuana and
medical marijuana products and standards for laboratories
SB 643 (McGuire) Page 47
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and testing. The Bureau would also be required to share
fees among multiple state agencies, administer a grant
program for local law enforcement to access additional
resources for enforcement of the Act, establish
appellations of origin for marijuana grown in California
and ensure that it meets organic standards.
While this bill appears to be modeled on certain aspects
of multiple regulatory programs within state government
(including those for products used by consumers and
patients in California for treatment of illness or
disease, programs regarding agricultural commodities and
programs that regulate businesses subject to state and
local taxation, to name a few), a Bureau within the DCA
may not be able to achieve the extensive, complex
requirements set forth in this bill unless there are
requirements for staff to have, or for staff to rely on,
expertise of persons and organizations with experience
related to medical marijuana.
The DCA, in the State and Consumer Services Agency
oversees about 40 programs, boards and bureaus that
oversee almost 250 license categories, including doctors,
nurses, dentists, engineers, architects, contractors,
cosmetologists and automotive repair facilities, among
others. These regulatory entities license, register, or
certify more than 2.5 million professionals and health
care practitioners, investigate complaints, and discipline
violators. They also administer licensing laws which
establish the minimum qualifications and levels of
competency for licensure, establish education and
experience requirements, including professional licensing
examinations that assess skills, knowledge and abilities
of candidates for professional licenses. The licensing
laws which they oversee are largely administrative
licensing and regulatory acts.
One recent example of significant challenges faced by the
DCA in the implementation of broad laws by a Bureau under
its purview is the efforts by the Bureau of Private
Postsecondary Education (BPPE) to administer the Private
Postsecondary Education Act. Similar to this bill,
legislation in 2009 (AB 48, Portantino, Chapter 310,
Statutes of 2009) created a new act and new Bureau to
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regulate an important segment of the economy, specifically
private postsecondary institutions, and sought to
establish quality standards and consumer protections for
Californians attending these institutions. The law
provided BPPE a wide array of enforcement tools to ensure
schools comply with the law and relied on the promulgation
of regulations to specifically implement the Act.
However, BPPE has struggled since its inception to perform
all of the required functions outlined in the Act and
accompanying regulations. From staffing, to establishing
policies and procedures, to data systems, to timelines, to
processing complaints, BPPE has faced difficulties in
implementing a broad law that, like this bill, exists in a
complex regulatory framework of federal law and other
state agencies and relies on expertise and understanding
of multiple issues related to the sector that the DCA may
not have.
NOTE : Double-referral to Senate Committee on Rules.
SUPPORT AND OPPOSITION:
Support: None on file as of April 14, 2015.
Opposition: None on file as of April 14, 2015.
-- END --