BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 643


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          SENATE THIRD READING


          SB  
          643 (McGuire)


          As Amended  September 1, 2015


          Majority vote


          SENATE VOTE:  26-13


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Business &      |8-2  |Bonilla, Bloom, Dodd, |Jones, Gatto        |
          |Professions     |     |Eggman, Mullin, Ting, |                    |
          |                |     |Wilk, Wood            |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Health          |11-2 |Bonta, Maienschein,   |Chávez, Patterson   |
          |                |     |Bonilla, Burke, Chiu, |                    |
          |                |     |Gomez, Lackey,        |                    |
          |                |     |Santiago, Steinorth,  |                    |
          |                |     |Thurmond, Wood        |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |11-0 |Gomez, Bloom, Bonta,  |                    |
          |                |     |Nazarian, Eggman,     |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Eduardo Garcia,       |                    |








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          |                |     |Holden, Quirk,        |                    |
          |                |     |Rendon, Weber, Wood   |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          SUMMARY:  Declares the intent of the Legislature to enact a  
          comprehensive regulatory framework for medical marijuana, and  
          makes this bill operative only if AB 266 (Bonta) of the current  
          legislative session is enacted and takes effect on or before  
          January 1, 2016. 


          FISCAL EFFECT:  None.  This bill is keyed non-fiscal by the  
          Legislative Counsel.  


          COMMENTS:  


          Purpose.  This bill is author sponsored.  According to the  
          author, "SB 643 seeks to resolve many of the issues created by  
          the enactment of the Compassionate Use Act and subsequent  
          legislation?.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?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 Compassionate Use Act (CUA) and SB 420.  In 1996, voters  
          approved the CUA, which allowed patients and primary caregivers  
          to obtain and use medical marijuana, as recommended by a  
          physician, and prohibited physicians from being punished or  








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          denied any right or privilege for making a medical marijuana  
          recommendation to a patient.  In 2003, SB 420 (Vasconcellos),  
          Chapter 875, established the Medical Marijuana Program (MMP),  
          which allowed patients and primary caregivers to collectively  
          and cooperatively cultivate medical marijuana, and established a  
          medical marijuana card program for patients to use on a  
          voluntary basis.  However, since the passage of Proposition 215  
          and SB 420, the state has not adopted a framework to provide for  
          appropriate licensure and regulation of medical marijuana.  As a  
          result, in the nearly 20 years since the passage of Proposition  
          215, there has been an explosion of medical marijuana  
          collectives and cooperatives that are largely left to the  
          enforcement of local governments, resulting in the creation of a  
          patchwork of local regulations for these industries and with  
          little statewide involvement.    


          The California Attorney General's Compassionate Use Guidelines.   
          SB 420 required the California Attorney General to "?develop and  
          adopt appropriate guidelines to ensure the security and  
          non-diversion of marijuana grown for medical use by patients  
          qualified under the Compassionate Use Act of 1996."  In 2008,  
          the Attorney General issued guidelines to:  1) ensure that  
          marijuana grown for medical purposes remains secure and does not  
          find its way to non-patients or illicit markets, 2) help law  
          enforcement agencies perform their duties effectively and in  
          accordance with California law, and 3) help patients and primary  
          caregivers understand how they may cultivate, transport,  
          possess, and use medical marijuana under California law.   
          According to a 2011 letter, after a series of meeting with  
          stakeholders to assess whether to clarify the 2008 guidelines to  
          stop the exploitation of California's medical marijuana laws by  
          gangs, criminal enterprises, and others, the Attorney General  
          decided to postpone the issuance of new guidelines because of  
          pending litigation and to urge the Legislature to amend the law  
          to establish clear rules governing access to medical marijuana.   
          










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          California Supreme Court Affirms Local Control Over Medical  
          Marijuana.  By exempting qualified patients and caregivers from  
          prosecution for using or from collectively or cooperatively  
          cultivating medical marijuana, the CUA and the MPP essentially  
          authorized the cultivation and use of medical marijuana.  These  
          laws have triggered the growth of medical marijuana dispensaries  
          in many localities, and in response, local governments have  
          sought to exercise their police powers to regulate or ban  
          activities relating to medical marijuana.  After numerous court  
          cases and years of uncertainty relating to the ability of local  
          governments to control medical marijuana activities,  
          particularly relating to the ability to control the zoning,  
          operation, and existence of medical marijuana dispensaries, the  
          California Supreme Court, in City of Riverside v. Inland Empire  
          Patients (2013) 56 Cal. 4th 729, held that California's medical  
          marijuana statutes do not preempt a local ban on facilities that  
          distribute medical marijuana.  The court held that nothing in  
          the CUA or the MMP expressly or impliedly limited the inherent  
          authority of a local jurisdiction, by its own ordinances, to  
          regulate the use of its land, including the authority to provide  
          that facilities for the distribution of medical marijuana will  
          not be permitted to operate within its borders.


          Federal Controlled Substances Act.  Despite the CUA and SB 420,  
          marijuana is still illegal under state and federal law.  Under  
          California law, marijuana is listed as a hallucinogenic  
          substance in Schedule I of the California Uniform Controlled  
          Substances Act.  Yet, the CUA prohibits prosecution for  
          obtaining, distributing, or using marijuana for medical  
          purposes.  However, under the federal Controlled Substances Act,  
          it is unlawful for any person to manufacture, distribute,  
          dispense or possess a controlled substance, including marijuana,  
          whether or not it is for a medical purpose.  As a result,  
          patients, caregivers, and dispensary operators, who engage in  
          activities relating to medical marijuana, may still vulnerable  
          to federal arrest and prosecution.  According to the California  
          Attorney General's guidelines, the difference between state and  
          federal law gives rise to confusion.  However, California has  








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          tried to avoid this conflict by deciding not to use the state's  
          powers to punish certain marijuana offenses under state law when  
          a physician has recommended its use to treat a serious medical  
          condition.  


          United States Department of Justice (USDOJ) Guidance Regarding  
          Marijuana Enforcement.  On August 29, 2013, the USDOJ issued a  
          memorandum that updated its guidance to all United States  
          Attorneys in light of state ballot initiatives to legalize under  
          state law the possession of small amounts of marijuana and  
          provide for the regulation of marijuana production, processing,  
          and sale.  While the memorandum noted that illegal distribution  
          and sale of marijuana is a serious crime that provides a  
          significant source of revenue to large-scale criminal  
          enterprises, gangs, and cartels, it also noted that USDOJ is  
          committed to using its limited investigative and prosecutorial  
          resources to address the most significant threats.  According to  
          the USDOJ, "In jurisdictions that have enacted laws legalizing  
          marijuana in some form and that have also implemented strong and  
          effective regulatory and enforcement systems to control the  
          cultivation, distribution, sale, and possession of marijuana,  
          conduct in compliance with those laws and regulations is less  
          likely to threaten the federal priorities set forth above?In  
          those circumstances, consistent with the traditional allocation  
          of federal-state efforts in this area, enforcement of state law  
          by state and local law enforcement and regulatory bodies should  
          remain the primary means of addressing marijuana-related  
          activity."  


          Medical Marijuana Industry in California.  According to the  
          author's Sunrise Questionnaire, submitted to the Committee  
          pursuant to Government Code Section 9148 et seq., by law  
          enforcement estimates, over 60% of all marijuana in the country  
          is grown in the Emerald Triangle counties of Humboldt, Mendocino  
          and Trinity, all of which are in the author's district, and once  
          the industry is regulated, and the medical marijuana products  
          are certified as safe, the market is expected to open up  








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          substantially.  In addition, once the industry is regulated, the  
          author believes that physicians who do not recommend or even  
          discuss medical marijuana due to its quasi-legal nature and  
          outright ban from the federal government may be more willing to  
          discuss and recommend medical marijuana to their patients.   


          The author asserts that the harm starts at the environmental  
          side of things, and simply expands from there.  The regional and  
          State Water Boards, along with California Department of Fish and  
          Wildlife, are doing what they can, but without legislation,  
          their hands are largely tied.  This leads to streams and rivers  
          literally running dry (even before the current drought) and to  
          huge loads of sediments and toxic wastes being dumped into the  
          watersheds.  According to the author, the lack of regulation  
          complicates water supply for millions of legal residential and  
          commercial water users throughout the state-- entire tracts of  
          forests are being mowed down by rogue growers and planted with  
          marijuana with no permits, oversight, or regard for the  
          environment. 


          The author also believes that the lack of regulation on the  
          processing, manufacturing, testing, transportation and resale  
          needs to be fixed as well, and that without statewide standards  
          produced by specific health and safety testing, ingredient  
          lists, and dosage listings on all marijuana products, people are  
          put at risk. 


          According to the author, cities and counties that have medical  
          marijuana ordinances take the first step in protecting consumers  
          and the public, but without a strong state-wide regulatory body  
          overseeing all aspects of the product chain, consumers have very  
          little control over the risk unless they have personal knowledge  
          of the product.  The author believes that clear guidelines from  
          the state and or the local jurisdiction, backed up by the state,  
          is the only way to ensure protection of consumers and the  
          public.








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          Analysis Prepared by:                                             
                          Eunie Linden / B. & P. / (916) 319-3301  FN:  
          0002013