AB 243: Medical marijuana.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2015-10-09
Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election, authorizes the use of marijuana for medical purposes. Existing law enacted by the Legislature requires the establishment of a program for the issuance of identification cards to qualified patients so that they may lawfully use marijuana for medical purposes, and requires the establishment of guidelines for the lawful cultivation of marijuana grown for medical use. Existing law provides for the licensure of various professions by boards or bureaus within the Department of Consumer Affairs. Existing law, the Sherman Food, Drug, and Cosmetic Law, provides for the regulation of food, drugs, devices, and cosmetics, as specified. A violation of that law is a crime.
This bill would require the Department of Food and Agriculture, the Department of Pesticide Regulation, the State Department of Public Health, the Department of Fish and Wildlife, and the State Water Resources Control Board to promulgate regulations or standards relating to medical marijuana and its cultivation, as specified. The bill would also require various state agencies to take specified actions to mitigate the impact that marijuana cultivation has on the environment. By requiring cities, counties, and their local law enforcement agencies to coordinate with state agencies to enforce laws addressing the environmental impacts of medical marijuana cultivation, and by including medical marijuana within the Sherman Act, the bill would impose a state-mandated local program.
This bill would require a state licensing authority to charge each licensee under the act a licensure and renewal fee, as applicable, and would further require the deposit of those collected fees into an account specific to that licensing authority in the Medical Marijuana Regulation and Safety Act Fund, which this bill would establish. This bill would impose certain fines and civil penalties for specified violations of the Medical Marijuana Regulation and Safety Act, and would require moneys collected as a result of these fines and civil penalties to be deposited into the Medical Cannabis Fines and Penalties Account, which this bill would establish within the fund. Moneys in the fund and each account of the fund would be available upon appropriation of the Legislature.
This bill would authorize the Director of Finance to provide an initial operating loan from the General Fund to the Medical Marijuana Regulation and Safety Act Fund of up to $10,000,000, and would appropriate $10,000,000 from the Medical Marijuana Regulation and Safety Act Fund to the Department of Consumer Affairs to begin the activities of the bureau.
This bill would provide that its provisions are severable.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
This bill would become operative only if AB 266 and SB 643 of the 201516 Regular Session are enacted and take effect on or before January 1, 2016.
Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election, authorizes the use of marijuana for medical purposes. Existing law enacted by the Legislature requires the establishment of a program for the issuance of identification cards to qualified patients so that they may lawfully use marijuana for medical purposes, and requires the establishment of guidelines for the lawful cultivation of marijuana grown for medical use. Existing law provides for the licensure of various professions by boards or bureaus within the Department of Consumer Affairs. Existing law, the Sherman Food, Drug, and Cosmetic Law, provides for the regulation of food, drugs, devices, and cosmetics, as specified. A violation of that law is a crime.
This bill would require the Department of Food and Agriculture, the Department of Pesticide Regulation, the State Department of Public Health, the Department of Fish and Wildlife, and the State Water Resources Control Board to promulgate regulations or standards relating to medical marijuana and its cultivation, as specified. The bill would also require various state agencies to take specified actions to mitigate the impact that marijuana cultivation has on the environment. By requiring cities, counties, and their local law enforcement agencies to coordinate with state agencies to enforce laws addressing the environmental impacts of medical marijuana cultivation, and by including medical marijuana within the Sherman Act, the bill would impose a state-mandated local program.
This bill would require a state licensing authority to charge each licensee under the act a licensure and renewal fee, as applicable, and would further require the deposit of those collected fees into an account specific to that licensing authority in the Medical Marijuana Regulation and Safety Act Fund, which this bill would establish. This bill would impose certain fines and civil penalties for specified violations of the Medical Marijuana Regulation and Safety Act, and would require moneys collected as a result of these fines and civil penalties to be deposited into the Medical Cannabis Fines and Penalties Account, which this bill would establish within the fund. Moneys in the fund and each account of the fund would be available upon appropriation of the Legislature.
This bill would authorize the Director of Finance to provide an initial operating loan from the General Fund to the Medical Marijuana Regulation and Safety Act Fund of up to $10,000,000, and would appropriate $10,000,000 from the Medical Marijuana Regulation and Safety Act Fund to the Department of Consumer Affairs to begin the activities of the bureau.
This bill would provide that its provisions are severable.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
This bill would become operative only if AB 266 and SB 643 of the 201516 Regular Session are enacted and take effect on or before January 1, 2016.
Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election, authorizes the use and cultivation of marijuana for medical purposes. Existing law requires the Medical Board of California to prioritize its investigative and prosecutorial resources to ensure that the most harmful physicians and surgeons are identified and disciplined expeditiously, and provides a list of allegations that shall be prioritized.
This bill would add repeatedly recommending excessive cannabis to patients for medical purposes, and repeatedly recommending cannabis to patients without a good faith examination and a medical reason, to the list of prioritized allegations.
Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election, authorizes the use of marijuana for medical purposes. Existing law enacted by the Legislature requires the establishment of a program for the issuance of identification cards to qualified patients so that they may lawfully use marijuana for medical purposes, and requires the establishment of guidelines for the lawful cultivation of marijuana grown for medical use. Existing law provides for the licensure of various professions by boards or bureaus within the Department of Consumer Affairs. Existing law, the Sherman Food, Drug, and Cosmetic Law, provides for the regulation of food, drugs, devices, and cosmetics, as specified. A violation of that law is a crime.
This bill would require the Department of Food and Agriculture, the Department of Pesticide Regulation, the State Department of Public Health, the Department of Fish and Wildlife, and the State Water Resources Control Board to promulgate regulations or standards relating to medical marijuana and its cultivation, as specified. The bill would also require various state agencies to take specified actions to mitigate the impact that marijuana cultivation has on the environment. By requiring cities, counties, and their local law enforcement agencies to coordinate with state agencies to enforce laws addressing the environmental impacts of medical marijuana cultivation, and by including medical marijuana within the Sherman Act, the bill would impose a state-mandated local program.
This bill would require a state licensing authority to charge each licensee under the act a licensure and renewal fee, as applicable, and would further require the deposit of those collected fees into an account specific to that licensing authority in the Medical Marijuana Regulation and Safety Act Fund, which this bill would establish. This bill would impose certain fines and civil penalties for specified violations of the Medical Marijuana Regulation and Safety Act, and would require moneys collected as a result of these fines and civil penalties to be deposited into the Medical Cannabis Fines and Penalties Account, which this bill would establish within the fund. Moneys in the fund and each account of the fund would be available upon appropriation of the Legislature.
This bill would authorize the Director of Finance to provide an initial operating loan from the General Fund to the Medical Marijuana Regulation and Safety Act Fund of up to $10,000,000, and would appropriate $10,000,000 from the Medical Marijuana Regulation and Safety Act Fund to the Department of Consumer Affairs to begin the activities of the bureau.
This bill would provide that its provisions are severable.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
This bill would become operative only if AB 266 and SB 643 of the 201516 Regular Session is are enacted and takes take effect on or before January 1, 2016.
This bill would declare that it is to take effect immediately as an urgency statute.
Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election, authorizes the use and cultivation of marijuana for medical purposes. Existing law makes it a crime to plant, cultivate, harvest, dry, or process marijuana, except as otherwise authorized by law. Under existing law, qualified patients, persons with valid identification cards, and the designated primary caregivers of qualified patients and persons with identification cards, who associate in order collectively and cooperatively to cultivate marijuana for medical purposes, are not subject to criminal sanctions solely on the basis of that fact. Existing law requires the Medical Board of California to prioritize its investigative and prosecutorial resources to ensure that the most harmful physicians and surgeons are identified and disciplined expeditiously, and provides a list of allegations that shall be prioritized.
This bill would add repeatedly recommending excessive cannabis to patients for medical purposes, and repeatedly recommending cannabis to patients without a good faith examination and a medical reason, to the list of prioritized allegations.
This bill, contingent on the enactment of AB 266 and SB 643, would state the intent of the Legislature to enact legislation that would establish a dedicated funding source to address environmental damages resulting from illegal cannabis cultivation. would become operative only if AB 266 and SB 643 of the 201516 Regular Session is enacted and takes effect on or before January 1, 2016.
This bill would declare that it is to take effect immediately as an urgency statute.
(1)Existing
Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election, authorizes the use and cultivation of marijuana for medical purposes. Existing law makes it a crime to plant, cultivate, harvest, dry, or process marijuana, except as otherwise authorized by law. Under existing law, qualified patients, persons with valid identification cards, and the designated primary caregivers of qualified patients and persons with identification cards, who associate in order collectively and cooperatively to cultivate marijuana for medical purposes, are not subject to criminal sanctions solely on the basis of that fact.
This bill, contingent on the enactment of AB 266 and SB 643, would state the intent of the Legislature to enact legislation that would establish a dedicated funding source to address environmental damages resulting from illegal cannabis cultivation.
This bill would establish the Division of Medical Cannabis Cultivation in the Department of Food and Agriculture. The bill would authorize a county, city, or city and county to issue or deny a conditional permit to cultivate medical marijuana and would require an applicant to obtain both a conditional permit from the county, city, or city and county and a state medical marijuana cultivation license from the division prior to cultivation occurring. By increasing the duties of local officials relative to issuing a conditional permit to cultivate medical marijuana, the bill would impose a state-mandated local program.
The bill would require the division to implement an identification program for medical marijuana in consultation with the State Water Resources Control Board and the Department of Fish and Wildlife. The bill would authorize the division to charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each medical marijuana plant. The bill would allow a county, city, or city and county to administer the unique identifier program, in which case the bill would authorize the county, city, or city and county, to charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each medical marijuana plant.
The bill would impose a tax in an unspecified amount on marijuana flowers, marijuana leaves, and immature marijuana plants and would require a designated entity, as specified, to collect the tax from the medical marijuana cultivator. The bill would require the State Board of Equalization to collect the tax pursuant to the procedures set forth in the Fee Collection Procedures Law. By expanding the application of the Fee Collection Procedures Law, a violation of which is a crime, this bill would impose a state-mandated local program. The bill would require all moneys less refunds, to be deposited into the Marijuana Production and Environment Mitigation Fund, which this bill would create in the State Treasury, and continuously appropriate those moneys to the board for allocation, as specified.
The bill would require the board to adopt a system for reporting the movement of cannabis and cannabis products through the distribution chain, as specified.
The bill would require the Legislative Analysts Office to regularly review the tax levels established under the above provisions and make recommendations to the Legislature regarding adjustments that would further the goal of addressing the public safety and environmental impacts caused by the proliferation of marijuana cultivation.
The bill would require, on or before January 1, 2021, specified state agencies, including, among others, the division and the Department of Justice, to submit reports to the Legislature regarding implementation of the bill.
The bill would specify that its provisions regarding the unique identifier program and cultivation do not apply to certain qualified patients cultivating marijuana if the patient cultivates marijuana for his or her personal medical use and does not sell, distribute, donate, or provide marijuana to any other person or entity, or to certain primary caregivers cultivating marijuana if the primary caregiver cultivates marijuana exclusively for the personal medical use of no more than 5 specified qualified patients for whom he or she is the primary caregiver and who does not receive remuneration, except as specified.
The bill would also require indoor and outdoor medical marijuana cultivation to be conducted in accordance with state and local laws and best practices related to land conversion, grading, electricity usage, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters. This bill would require state agencies to address environmental impacts of medical marijuana cultivation and coordinate, when appropriate, with cities and counties and their law enforcement agencies in enforcement efforts.
The bill would require that the multiagency task force, the Department of Fish and Wildlife and State Water Resources Control Board pilot project to address the Environmental Impacts of Cannabis Cultivation, to continue its enforcement efforts on a statewide level and permanent basis.
(2)Under existing law, the Porter-Cologne Water Quality Control Act, the State Water Resources Control Board and the California regional water quality control boards are the principal state agencies with responsibility for the coordination and control of water quality in the state.
This bill would require each regional board, and would allow the state board, to address discharges of waste resulting from medical marijuana cultivation and associated activities.
(3)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
(4) This
This bill would declare that it is to take effect immediately as an urgency statute.
(1)Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election, authorizes the use and cultivation of marijuana for medical purposes. Existing law makes it a crime to plant, cultivate, harvest, dry, or process marijuana, except as otherwise authorized by law. Under existing law, qualified patients, persons with valid identification cards, and the designated primary caregivers of qualified patients and persons with identification cards, who associate in order collectively and cooperatively to cultivate marijuana for medical purposes, are not subject to criminal sanctions solely on the basis of that fact.
This bill would establish the Division of Medical Cannabis Cultivation in the Department of Food and Agriculture. The bill would authorize a county, city, or city and county to issue or deny a conditional permit to cultivate medical marijuana and would require an applicant to obtain both a conditional permit from the county, city, or city and county and a state medical marijuana cultivation license from the division prior to cultivation occurring. By increasing the duties of local officials relative to issuing a conditional permit to cultivate medical marijuana, the bill would impose a state-mandated local program.
The bill would require the division to implement an identification program for medical marijuana in consultation with the State Water Resources Control Board and the Department of Fish and Wildlife. The bill would authorize the division to charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each medical marijuana plant. The bill would allow a county, city, or city and county to administer the unique identifier program, in which case the bill would authorize the county, city, or city and county, to charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each medical marijuana plant. The bill would specify that the unique identifier program established pursuant the bills provisions does not apply to a county, city, or city and county that has an existing ordinance pertaining to the cultivation of marijuana that provides for the identification of individual plants during the cultivation period.
This bill, on and after June 1, 2016, would impose a tax a licensed medical marijuana cultivator, at the rate of $50 per medical marijuana plant with a unique identifier. This bill would require the tax to be administered by the State Board of Equalization, as prescribed, and
The bill would impose a tax in an unspecified amount on marijuana flowers, marijuana leaves, and immature marijuana plants and would require a licensed medical marijuana distributor designated entity, as specified, to collect the tax from the licensed medical marijuana cultivator and remit the amounts collected cultivator. The bill would require the State Board of Equalization to collect the tax pursuant to the procedures set forth in the Fee Collection Procedures Law. By expanding the application of the Fee Collection Procedures Law, a violation of which is a crime, this bill would impose a state-mandated local program. This The bill would require all moneys less refunds, to be deposited into the Marijuana Production and Environment Mitigation Fund, which this bill would create in the State Treasury, and continuously appropriate those moneys to the board for allocation, as specified. The bill would require a licensed medical marijuana cultivator to sell his or her medical marijuana products only to a licensed medical marijuana distributor, and would prohibit any other sales of medical marijuana by a licensed medical marijuana cultivator. The bill would also prohibit the sale of medical marijuana plants that do not contain a unique identifier by a licensed cultivator to a licensed distributor.
The bill would require the board to adopt a system for reporting the movement of cannabis and cannabis products through the distribution chain, as specified.
The bill would require the Legislative Analysts Office to regularly review the tax levels established under the above provisions and make recommendations to the Legislature regarding adjustments that would further the goal of addressing the public safety and environmental impacts caused by the proliferation of marijuana cultivation.
The bill would require, on or before January 1, 2021, specified state agencies, including, among others, the board, the division, division and the Department of Justice, to submit reports to the Legislature regarding implementation of the bill.
The bill would specify that its provisions regarding the unique identifier program and cultivation do not apply to certain qualified patients cultivating marijuana if the patient cultivates marijuana for his or her personal medical use and does not sell, distribute, donate, or provide marijuana to any other person or entity, or to certain primary caregivers cultivating marijuana if the primary caregiver cultivates marijuana exclusively for the personal medical use of no more than 5 specified qualified patients for whom he or she is the primary caregiver and who does not receive remuneration, except as specified.
The bill would also require indoor and outdoor medical marijuana cultivation to be conducted in accordance with state and local laws and best practices related to land conversion, grading, electricity usage, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters. This bill would require state agencies to address environmental impacts of medical marijuana cultivation and coordinate, when appropriate, with cities and counties and their law enforcement agencies in enforcement efforts.
The bill would state the intent of the Legislature require that the multiagency task force, the Department of Fish and Wildlife and State Water Resources Control Board pilot project to address the Environmental Impacts of Cannabis Cultivation, to continue its enforcement efforts on a statewide level and permanent basis.
(2)Under existing law, the Porter-Cologne Water Quality Control Act, the State Water Resources Control Board and the California regional water quality control boards are the principal state agencies with responsibility for the coordination and control of water quality in the state.
This bill would require each regional board, and would allow the state board, to address discharges of waste resulting from medical marijuana cultivation and associated activities.
(3)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
(4)This bill would declare that it is to take effect immediately as an urgency statute.
(1)Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election, authorizes the use and cultivation of marijuana for medical purposes. Existing law makes it a crime to plant, cultivate, harvest, dry, or process marijuana, except as otherwise authorized by law. Under existing law, qualified patients, persons with valid identification cards, and the designated primary caregivers of qualified patients and persons with identification cards, who associate in order collectively and cooperatively to cultivate marijuana for medical purposes, are not subject to criminal sanctions solely on the basis of that fact.
This bill would generally require all persons who cultivate marijuana for medical purposes, except those cultivating for personal use, as specified, to obtain a permit to cultivate marijuana from the county, city, city and county, or from a state agency to be designated by the Governor if the county, city, or city and county chooses not to be the responsible entity for these purposes. The bill would allow the county, city, city and county, or state agency to charge a fee in an amount sufficient to cover the reasonable cost of issuing the permits and carrying out the program. The bill would prohibit marijuana from being cultivated within 100 feet of an occupied legal residential home or school if grown outdoors, or within 100 feet of a school if grown at a residence. The bill would require the county, city, city and county, or designated state agency to establish a program for the identification of permitted marijuana plants and would allow the county, city, city and county, or state agency to issue a unique identifier and charge a fee to cover the reasonable costs of issuing the unique identifier, monitoring, tracking, and inspecting the plants, and for enforcing specified requirements. The bill would require a copy of a current and valid state-issued medical marijuana ID card or physician recommendation to be displayed at all cultivation sites. The bill would allow a county, city, city and county, or designated state agency to revoke or suspend a permit, deny the reissuance of a permit, or impose fines, for a violation of these requirements, or abate a violation as a nuisance. The bill would not apply to a county, city, or city and county that has an existing ordinance pertaining to cultivation of marijuana.
This bill would establish the Division of Medical Cannabis Cultivation in the Department of Food and Agriculture. The bill would authorize a county, city, or city and county to issue or deny a conditional permit to cultivate medical marijuana and would require an applicant to obtain both a conditional permit from the county, city, or city and county and a state medical marijuana cultivation license from the division prior to cultivation occurring. By increasing the duties of local officials relative to issuing a conditional permit to cultivate medical marijuana, the bill would impose a state-mandated local program.
The bill would require the division to implement an identification program for medical marijuana in consultation with the State Water Resources Control Board and the Department of Fish and Wildlife. The bill would authorize the division to charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each medical marijuana plant. The bill would allow a county, city, or city and county to administer the unique identifier program, in which case the bill would authorize the county, city, or city and county, to charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each medical marijuana plant. The bill would specify that the unique identifier program established pursuant the bills provisions does not apply to a county, city, or city and county that has an existing ordinance pertaining to the cultivation of marijuana that provides for the identification of individual plants during the cultivation period.
This bill, on and after June 1, 2016, would impose a tax a licensed medical marijuana cultivator, at the rate of $50 per medical marijuana plant with a unique identifier. This bill would require the tax to be administered by the State Board of Equalization, as prescribed, and would require a licensed medical marijuana distributor to collect the tax from the licensed medical marijuana cultivator and remit the amounts collected pursuant to the procedures set forth in the Fee Collection Procedures Law. By expanding the application of the Fee Collection Procedures Law, a violation of which is a crime, this bill would impose a state-mandated local program. This bill would require all moneys less refunds, to be deposited into the Marijuana Production and Environment Mitigation Fund, which this bill would create in the State Treasury, and continuously appropriate those moneys to the board for allocation, as specified. The bill would require a licensed medical marijuana cultivator to sell his or her medical marijuana products only to a licensed medical marijuana distributor, and would prohibit any other sales of medical marijuana by a licensed medical marijuana cultivator. The bill would also prohibit the sale of medical marijuana plants that do not contain a unique identifier by a licensed cultivator to a licensed distributor.
The bill would require, on or before January 1, 2021, specified state agencies, including, among others, the board, the division, and the Department of Justice, to submit reports to the Legislature regarding implementation of the bill.
The bill would specify that its provisions regarding the unique identifier program and cultivation do not apply to certain qualified patients cultivating marijuana if the patient cultivates marijuana for his or her personal medical use and does not sell, distribute, donate, or provide marijuana to any other person or entity, or to certain primary caregivers cultivating marijuana if the primary caregiver cultivates marijuana exclusively for the personal medical use of no more than 5 specified qualified patients for whom he or she is the primary caregiver and who does not receive remuneration, except as specified.
The bill would also require indoor and outdoor medical marijuana cultivation to be conducted in accordance with state and local laws and best practices related to land conversion, grading, electricity usage, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters. This bill would require state agencies to address environmental impacts of medical marijuana cultivation and coordinate, when appropriate, with cities and counties and their law enforcement agencies in enforcement efforts.
The bill would state the intent of the Legislature that the multiagency task force, the Department of Fish and Wildlife and State Water Resources Control Board pilot project to address the Environmental Impacts of Cannabis Cultivation, continue their its enforcement efforts on a statewide level and permanent status basis.
(2)Under existing law, the Porter-Cologne Water Quality Control Act, the State Water Resources Control Board and the California regional water quality control boards are the principal state agencies with responsibility for the coordination and control of water quality in the state.
This bill would require each regional board, and would allow the state board, to address discharges of waste resulting from medical marijuana cultivation and associated activities.
(3)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
(4)This bill would declare that it is to take effect immediately as an urgency statute.
(1)Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election, authorizes the use and cultivation of marijuana for medical purposes. Existing law makes it a crime to plant, cultivate, harvest, dry, or process marijuana, except as otherwise authorized by law. Under existing law, qualified patients, persons with valid identification cards, and the designated primary caregivers of qualified patients and persons with identification cards, who associate in order collectively and cooperatively to cultivate marijuana for medical purposes, are not subject to criminal sanctions solely on the basis of that fact.
This bill would generally require all persons who cultivate marijuana for medical purposes, except those cultivating for personal use, as specified, to obtain a permit to cultivate marijuana from the county, city, city and county, or from a state agency to be designated by the Governor if the county, city, or city and county chooses not to be the responsible entity for these purposes. The bill would allow the county, city, city and county, or state agency to charge a fee in an amount sufficient to cover the reasonable cost of issuing the permits and carrying out the program. The bill would prohibit marijuana from being cultivated within 100 feet of an occupied legal residential home or school if grown outdoors, or within 100 feet of a school if grown at a residence. The bill would require the county, city, city and county, or designated state agency to issue zip ties establish a program for the identification of permitted marijuana plants and would allow the county, city, city and county, or state agency to issue a unique identifier and charge a fee to cover the reasonable costs of issuing the zip ties unique identifier, monitoring, tracking, and inspecting the plants, and for enforcing specified requirements. The bill would require a copy of a current and valid state-issued medical marijuana ID card or physician recommendation to be displayed at all cultivation sites. The bill would allow a county, city, city and county, or designated state agency to revoke or suspend a permit, deny the reissuance of a permit, or impose fines, for a violation of these requirements, or abate a violation as a nuisance. The bill would not apply to a county, city, or city and county that has an existing ordinance pertaining to cultivation of marijuana.
The bill would also require indoor and outdoor medical marijuana cultivation to be conducted in accordance with state and local laws and best practices related to land conversion, grading, electricity usage, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters. This bill would require state agencies to address environmental impacts of medical marijuana cultivation and coordinate, when appropriate, with cities and counties and their law enforcement agencies in enforcement efforts.
The bill would state the intent of the Legislature that the multiagency task force, the Department of Fish and Wildlife and State Water Resources Control Board pilot project to address the Environmental Impacts of Cannabis Cultivation, continue their enforcement efforts on a statewide level and permanent status.
(2)Under existing law, the Porter-Cologne Water Quality Control Act, the State Water Resources Control Board and the California regional water quality control boards are the principal state agencies with responsibility for the coordination and control of water quality in the state.
This bill would require each regional board, and would allow the state board, to address discharges of waste resulting from medical marijuana cultivation and associated activities.
(1)Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election, authorizes the use and cultivation of marijuana for medical purposes. Existing law makes it a crime to plant, cultivate, harvest, dry, or process marijuana, except as otherwise authorized by law. Under existing law, qualified patients, persons with valid identification cards, and the designated primary caregivers of qualified patients and persons with identification cards, who associate in order collectively and cooperatively to cultivate marijuana for medical purposes, are not subject to criminal sanctions solely on the basis of that fact.
This bill would generally require all persons who cultivate marijuana for medical purposes, except those cultivating for personal use, as specified, to obtain a permit to cultivate marijuana from the county, city, city and county, or from a state agency to be designated by the Governor if the board of supervisors of the county, city, or city and county chooses not to be the responsible entity for these purposes. The bill would allow the county, city, city and county, or state agency to charge a fee in an amount sufficient to cover the reasonable cost of issuing the permits and carrying out the program. The bill would prohibit marijuana from being cultivated within 100 feet of an occupied legal residential home or school if grown outdoors, or within 100 feet of a school if grown at a residence. The bill would require the county, city, city and county, or designated state agency to issue zip ties for the identification of marijuana plants and would allow the county, city, city and county, or state agency to charge a fee to cover the reasonable costs of issuing the zip ties, monitoring, tracking, and inspecting the plants, and for enforcing specified requirements. The bill would require a copy of a current and valid state-issued medical marijuana ID card or physician recommendation to be displayed at all cultivation sites. The bill would allow a county, city, city and county, or designated state agency to revoke or suspend a permit, deny the reissuance of a permit, or impose fines, for a violation of these requirements, or abate a violation as a nuisance. The bill would not apply to a county, city, or city and county that has an existing ordinance pertaining to cultivation of marijuana.
The bill would also require indoor and outdoor medical marijuana cultivation to be conducted in accordance with state and local laws and best practices related to land conversion, grading, electricity usage, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters. This bill would require state agencies to address environmental impacts of medical marijuana cultivation and coordinate, when appropriate, with cities and counties and their law enforcement agencies in enforcement efforts.
The bill would state the intent of the Legislature that the multiagency task force, the Department of Fish and Wildlife and State Water Resources Control Board pilot project to address the Environmental Impacts of Cannabis Cultivation, continue their enforcement efforts on a statewide level and permanent status.
(2)Under existing law, the Porter-Cologne Water Quality Control Act, the State Water Resources Control Board and the California regional water quality control boards are the principal state agencies with responsibility for the coordination and control of water quality in the state.
This bill would require each regional board, and would allow the state board, to address discharges of waste resulting from medical marijuana cultivation and associated activities.
Existing
(1)Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election, authorizes the use and cultivation of marijuana for medical purposes. Existing law makes it a crime to plant, cultivate, harvest, dry, or process marijuana, except as otherwise authorized by law, such as the medical marijuana program. law. Under existing law, qualified patients, persons with valid identification cards, and the designated primary caregivers of qualified patients and persons with identification cards, who associate in order collectively and cooperatively to cultivate marijuana for medical purposes, are not subject to criminal sanctions solely on the basis of that fact.
This bill would require all persons who cultivate marijuana for medical purposes to obtain a permit to cultivate marijuana from the county or from a state agency to be designated by the Governor if the board of supervisors of the county chooses not to be the responsible entity for these purposes. The bill would allow the county or state agency to charge a fee in an amount sufficient to cover the reasonable cost of issuing the permits and carrying out the program. The bill would prohibit marijuana from being cultivated within 100 feet of an occupied legal residential home or school if grown outdoors, or within 100 feet of a school if grown at a residence. The bill would require the county or designated state agency to issue zip ties for the identification of marijuana plants and would allow the county or state agency to charge a fee to cover the reasonable costs of issuing the zip ties, monitoring, tracking, and inspecting the plants, and for enforcing specified requirements. The bill would require a copy of a current and valid state-issued medical marijuana ID card or physician recommendation to be displayed at all cultivation sites. The bill would allow a county to revoke or suspend a permit, deny the reissuance of a permit, or impose fines, for a violation of these requirements, or abate a violation as a nuisance.
This
The bill would also require indoor and outdoor medical marijuana cultivation to be conducted in accordance with state and local laws and best practices related to land conversion, grading, electricity usage, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters. This bill would require state agencies to address environmental impacts of medical marijuana cultivation and coordinate, when appropriate, with cities and counties and their law enforcement agencies in enforcement efforts.
Under
(2)Under existing law, the Porter-Cologne Water Quality Control Act, the State Water Resources Control Board and the California regional water quality control boards are the principal state agencies with responsibility for the coordination and control of water quality in the state.
This bill would require each regional board, and would allow the state board, to address discharges of waste resulting from medical marijuana cultivation and associated activities.
Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election, authorizes the use of marijuana for medical purposes. Existing law makes it a crime to plant, cultivate, harvest, dry, or process marijuana, except as otherwise authorized by law, such as the medical marijuana program.
This bill would require indoor and outdoor medical marijuana cultivation to be conducted in accordance with state and local laws and best practices related to land conversion, grading, electricity usage, water usage, agricultural discharges, and similar matters. This bill would require state agencies to address environmental impacts of medical marijuana cultivation and coordinate with cities and counties and their law enforcement agencies in enforcement efforts.
Under existing law, the Porter-Cologne Water Quality Control Act, the State Water Resources Control Board and the California regional water quality control boards are the principal state agencies with responsibility for the coordination and control of water quality in the state.
This bill would require each regional board to address discharges of waste resulting from medical marijuana cultivation and associated activities.
The Legislature finds and declares all of the following:
(a)The United States Environmental Protection Agency has not established appropriate pesticide tolerances for, or permitted the registration and lawful use of, pesticides on cannabis crops intended for human consumption pursuant to the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136 et seq.).
(b)The use of pesticides is not adequately regulated due to the omissions in federal law, and cannabis cultivated in California for California patients can and often does contain pesticide residues.
(c)Lawful California medical cannabis growers and caregivers urge the Department of Pesticide Regulation to provide guidance, in absence of federal guidance, on whether the pesticides currently used at most cannabis cultivation sites are actually safe for use on cannabis intended for human consumption.
19332.(a)The Department of Food and Agriculture shall promulgate regulations governing the licensing of indoor and outdoor cultivation sites.
(b)The Department of Pesticide Regulation, in consultation with the Department of Food and Agriculture, shall develop standards for the use of pesticides in cultivation, and maximum tolerances for pesticides and other foreign object residue in harvested cannabis.
(c)The State Department of Public Health shall develop standards for the production and labeling of all edible medical cannabis products.
(d)The Department of Food and Agriculture, in consultation with the Department of Fish and Wildlife and the State Water Resources Control Board, shall ensure that individual and cumulative effects of water diversion and discharge associated with cultivation do not affect the instream flows needed for fish spawning, migration, and rearing, and the flows needed to maintain natural flow variability.
(e)The Department of Food and Agriculture shall have the authority necessary for the implementation of the regulations it adopts pursuant to this chapter. The regulations shall do all of the following:
(1)Provide that weighing or measuring devices used in connection with the sale or distribution of medical cannabis are required to meet standards equivalent to Division 5 (commencing with Section 12001).
(2)Require that cannabis cultivation by licensees is conducted in accordance with state and local laws related to land conversion, grading, electricity usage, water usage, agricultural discharges, and similar matters. Nothing in this chapter, and no regulation adopted by the department, shall be construed to supersede or limit the authority of the State Water Resources Control Board, regional water quality control boards, or the Department of Fish and Wildlife to implement and enforce their statutory obligations or to adopt regulations to protect water quality, water supply, and natural resources.
(3)Establish procedures for the issuance and revocation of unique identifiers for activities associated with a cannabis cultivation license, pursuant to Article 8 (commencing with Section 19337). All cannabis shall be labeled with the unique identifier issued by the Department of Food and Agriculture.
(4)Prescribe standards, in consultation with the bureau, for the reporting of information as necessary related to unique identifiers, pursuant to Article 8 (commencing with Section 19337).
(f)The Department of Pesticide Regulation, in consultation with the State Water Resources Control Board, shall promulgate regulations that require that the application of pesticides or other pest control in connection with the indoor or outdoor cultivation of medical cannabis meets standards equivalent to Division 6 (commencing with Section 11401) of the Food and Agricultural Code and its implementing regulations.
(g)State cultivator license types issued by the Department of Food and Agriculture include:
(1)Type 1, or specialty outdoor, for outdoor cultivation using no artificial lighting of less than or equal to 5,000 square feet of total canopy size on one premises, or up to 50 mature plants on noncontiguous plots.
(2)Type 1A, or specialty indoor, for indoor cultivation using exclusively artificial lighting of less than or equal to 5,000 square feet of total canopy size on one premises.
(3)Type 1B, or specialty mixed-light, for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, of less than or equal to 5,000 square feet of total canopy size on one premises.
(4)Type 2, or small outdoor, for outdoor cultivation using no artificial lighting between 5,001 and 10,000 square feet, inclusive, of total canopy size on one premises.
(5)Type 2A, or small indoor, for indoor cultivation using exclusively artificial lighting between 5,001 and 10,000 square feet, inclusive, of total canopy size on one premises.
(6)Type 2B, or small mixed-light, for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, between 5,001 and 10,000 square feet, inclusive, of total canopy size on one premises.
(7)Type 3, or outdoor, for outdoor cultivation using no artificial lighting from 10,001 square feet to one acre, inclusive, of total canopy size on one premises. The Department of Food and Agriculture shall limit the number of licenses allowed of this type.
(8)Type 3A, or indoor, for indoor cultivation using exclusively artificial lighting between 10,001 and 22,000 square feet, inclusive, of total canopy size on one premises. The Department of Food and Agriculture shall limit the number of licenses allowed of this type.
(9)Type 3B, or mixed-light, for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, between 10,001 and 22,000 square feet, inclusive, of total canopy size on one premises. The Department of Food and Agriculture shall limit the number of licenses allowed of this type.
(10)Type 4, or nursery, for cultivation of medical cannabis solely as a nursery. Type 4 licensees may transport live plants.
19333.An employee engaged in commercial cannabis cultivation activity shall be subject to Wage Order 4-2001 of the Industrial Welfare Commission.
SEC. 2.Article 13 (commencing with Section 19350) is added to Chapter 3.5 of Division 8 of the Business and Professions Code, to read:13.Funding19350.Each licensing authority shall establish a scale of application, licensing, and renewal fees, based upon the cost of enforcing this chapter, as follows:
(a)Each licensing authority shall charge each licensee a licensure and renewal fee, as applicable. The licensure and renewal fee shall be calculated to cover the costs of administering this chapter. The licensure fee may vary depending upon the varying costs associated with administering the various regulatory requirements of this chapter as they relate to the nature and scope of the different licensure activities, including, but not limited to, the track and trace program required pursuant to Section 19335, but shall not exceed the reasonable regulatory costs to the licensing authority.
(b)The total fees assessed pursuant to this chapter shall be set at an amount that will fairly and proportionately generate sufficient total revenue to fully cover the total costs of administering this chapter.
(c)All license fees shall be set on a scaled basis by the licensing authority, dependent on the size of the business.
(d)The licensing authority shall deposit all fees collected in a fee account specific to that licensing authority, to be established in the Medical Marijuana Regulation and Safety Act Fund. Moneys in the licensing authority fee accounts shall be used, upon appropriation of the Legislature, by the designated licensing authority for the administration of this chapter.
19351.(a)The Medical Marijuana Regulation and Safety Act Fund is hereby established within the State Treasury. Moneys in the fund shall be available upon appropriation by the Legislature. Notwithstanding Section 16305.7 of the Government Code, the fund shall include any interest and dividends earned on the moneys in the fund.
(b)(1)Funds for the establishment and support of the regulatory activities pursuant to this chapter shall be advanced as a General Fund or special fund loan, and shall be repaid by the initial proceeds from fees collected pursuant to this chapter or any rule or regulation adopted pursuant to this chapter, by January 1, 2022. Should the initial proceeds from fees not be sufficient to repay the loan, moneys from the Medical Cannabis Fines and Penalties Account shall be made available to the bureau, by appropriation of the Legislature, to repay the loan.
(2)Funds advanced pursuant to this subdivision shall be appropriated to the bureau, which shall distribute the moneys to the appropriate licensing authorities, as necessary to implement the provisions of this chapter.
(3)The Director of Finance may provide an initial operating loan from the General Fund to the Medical Marijuana Regulation and Safety Act Fund that does not exceed ten million dollars ($10,000,000).
(c)Except as otherwise provided, all moneys collected pursuant to this chapter as a result of fines or penalties imposed under this chapter shall be deposited directly into the Medical Marijuana Fines and Penalties Account, which is hereby established within the fund, and shall be available, upon appropriation by the Legislature to the bureau, for the purposes of funding the enforcement grant program pursuant to subdivision (d).
(d)(1)The bureau shall establish a grant program to allocate moneys from the Medical Cannabis Fines and Penalties Account to state and local entities for the following purposes:
(A)To assist with medical cannabis regulation and the enforcement of this chapter and other state and local laws applicable to cannabis activities.
(B)For allocation to state and local agencies and law enforcement to remedy the environmental impacts of cannabis cultivation.
(2)The costs of the grant program under this subdivision shall, upon appropriation by the Legislature, be paid for with moneys in the Medical Cannabis Fines and Penalties Account.
(3)The grant program established by this subdivision shall only be implemented after the loan specified in this section is repaid.
19352.The sum of ten million dollars ($10,000,000) is hereby appropriated from the Medical Marijuana Regulation and Safety Act Fund to the Department of Consumer Affairs to begin the activities of the Bureau of Medical Marijuana Regulation. Funds appropriated pursuant to this section shall not include moneys received from fines or penalties.
SEC. 3.Article 17 (commencing with Section 19360) is added to Chapter 3.5 of Division 8 of the Business and Professions Code, to read:17.Penalties and Violations19360.(a)A person engaging in cannabis activity without a license and associated unique identifiers required by this chapter shall be subject to civil penalties of up to twice the amount of the license fee for each violation, and the department, state or local authority, or court may order the destruction of medical cannabis associated with that violation. Each day of operation shall constitute a separate violation of this section. All civil penalties imposed and collected pursuant to this section shall be deposited into the Marijuana Production and Environment Mitigation Fund established pursuant to Section 31013 of the Revenue and Taxation Code.
(b)If an action for civil penalties is brought against a licensee pursuant to this chapter by the Attorney General, the penalty collected shall be deposited into the General Fund. If the action is brought by a district attorney or county counsel, the penalty collected shall be paid to the treasurer of the county in which the judgment was entered. If the action is brought by a city attorney or city prosecutor, the penalty collected shall be paid to the treasurer of the city or city and county in which the judgment was entered. If the action is brought by a city attorney and is adjudicated in a superior court located in the unincorporated area or another city in the same county, the penalty shall be paid one-half to the treasurer of the city in which the complaining attorney has jurisdiction and one-half to the treasurer of the county in which the judgment is entered.
(c)Notwithstanding subdivision (a), criminal penalties shall continue to apply to an unlicensed person or entity engaging in cannabis activity in violation of this chapter, including, but not limited to, those individuals covered under Section 11362.7 of the Health and Safety Code.
SEC. 4.Section 12029 is added to the Fish and Game Code, to read:12029.(a)The Legislature finds and declares all of the following:
(1)The environmental impacts associated with marijuana cultivation have increased, and unlawful water diversions for marijuana irrigation have a detrimental effect on fish and wildlife and their habitat, which are held in trust by the state for the benefit of the people of the state.
(2)The remediation of existing marijuana cultivation sites is often complex and the permitting of these sites requires greater department staff time and personnel expenditures. The potential for marijuana cultivation sites to significantly impact the states fish and wildlife resources requires immediate action on the part of the departments lake and streambed alteration permitting staff.
(b)In order to address unlawful water diversions and other violations of the Fish and Game Code associated with marijuana cultivation, the department shall establish the watershed enforcement program to facilitate the investigation, enforcement, and prosecution of these offenses.
(c)The department, in coordination with the State Water Resources Control Board, shall establish a permanent multiagency task force to address the environmental impacts of marijuana cultivation. The multiagency task force, to the extent feasible and subject to available Resources, shall expand its enforcement efforts on a statewide level to ensure the reduction of adverse impacts of marijuana cultivation on fish and wildlife and their habitats throughout the state.
(d)In order to facilitate the remediation and permitting of marijuana cultivation sites, the department shall adopt regulations to enhance the fees on any entity subject to Section 1602 for marijuana cultivation sites that require remediation. The fee schedule established pursuant to this subdivision shall not exceed the fee limits in Section 1609.
SEC. 5.Section 11362.769 is added to the Health and Safety Code, to read:11362.769.Indoor and outdoor medical marijuana cultivation shall be conducted in accordance with state and local laws related to land conversion, grading, electricity usage, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters. State agencies, including, but not limited to, the State Board of Forestry and Fire Protection, the Department of Fish and Wildlife, the State Water Resources Control Board, the California regional water quality control boards, and traditional state law enforcement agencies shall address environmental impacts of medical marijuana cultivation and shall coordinate, when appropriate, with cities and counties and their law enforcement agencies in enforcement efforts.
SEC. 6.Section 11362.777 is added to the Health and Safety Code, to read:11362.777.(a)The Department of Food and Agriculture shall establish a Medical Cannabis Cultivation Program to be administered by the secretary, except as specified in subdivision (c), shall administer this section as it pertains to the cultivation of medical marijuana. For purposes of this section and Chapter 3.5 (commencing with Section 19300) of the Business and Professions Code, medical cannabis is an agricultural product.
(b)(1)A person or entity shall not cultivate medical marijuana without first obtaining both of the following:
(A)A license, permit, or other entitlement, specifically permitting cultivation pursuant to these provisions, from the city, county, or city and county in which the cultivation will occur.
(B)A state license issued by the department pursuant to this section.
(2)A person or entity shall not submit an application for a state license issued by the department pursuant to this section unless that person or entity has received a license, permit, or other entitlement, specifically permitting cultivation pursuant to these provisions, from the city, county, or city and county in which the cultivation will occur.
(3)A person or entity shall not submit an application for a state license issued by the department pursuant to this section if the proposed cultivation of marijuana will violate the provisions of any local ordinance or regulation, or if medical marijuana is prohibited by the city, county, or city and county in which the cultivation is proposed to occur, either expressly or otherwise under principles of permissive zoning.
(c)(1)Except as otherwise specified in this subdivision, and without limiting any other local regulation, a city, county, or city and county, through its current or future land use regulations or ordinance, may issue or deny a permit to cultivate medical marijuana pursuant to this section. A city, county, or city and county may inspect the intended cultivation site for suitability prior to issuing a permit. After the city, county, or city and county has approved a permit, the applicant shall apply for a state medical marijuana cultivation license from the department. A locally issued cultivation permit shall only become active upon licensing by the department and receiving final local approval. A person shall not cultivate medical marijuana prior to obtaining both a permit from the city, county, or city and county and a state medical marijuana cultivation license from the department.
(2)A city, county, or city and county that issues or denies conditional licenses to cultivate medical marijuana pursuant to this section shall notify the department in a manner prescribed by the secretary.
(3)A city, county, or city and countys locally issued conditional permit requirements must be at least as stringent as the departments state licensing requirements.
(4)If a city, county, or city and county does not have land use regulations or ordinances regulating or prohibiting the cultivation of marijuana, either expressly or otherwise under principles of permissive zoning, or chooses not to administer a conditional permit program pursuant to this section, then commencing March 1, 2016, the division shall be the sole licensing authority for medical marijuana cultivation applicants in that city, county, or city and county.
(d)(1)The secretary may prescribe, adopt, and enforce regulations relating to the implementation, administration, and enforcement of this part, including, but not limited to, applicant requirements, collections, reporting, refunds, and appeals.
(2)The secretary may prescribe, adopt, and enforce any emergency regulations as necessary to implement this part. Any emergency regulation prescribed, adopted, or enforced pursuant to this section shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and, for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of the regulation is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, and general welfare.
(3)The secretary may enter into a cooperative agreement with a county agricultural commissioner to carry out the provisions of this chapter, including, but not limited to, administration, investigations, inspections, licensing and assistance pertaining to the cultivation of medical marijuana. Compensation under the cooperative agreement shall be paid from assessments and fees collected and deposited pursuant to this chapter and shall provide reimbursement to the county agricultural commissioner for associated costs.
(e)(1)The department, in consultation with, but not limited to, the Bureau of Medical Marijuana Regulation, the State Water Resources Control Board, and the Department of Fish and Wildlife, shall implement a unique identification program for medical marijuana. In implementing the program, the department shall consider issues, including, but not limited to, water use and environmental impacts. In implementing the program, the department shall ensure that:
(A)Individual and cumulative effects of water diversion and discharge associated with cultivation do not affect the instream flows needed for fish spawning, migration, and rearing, and the flows needed to maintain natural flow variability.
(B)Cultivation will not negatively impact springs, riparian wetlands, and aquatic habitats.
(2)The department shall establish a program for the identification of permitted medical marijuana plants at a cultivation site during the cultivation period. The unique identifier shall be attached at the base of each plant. A unique identifier, such as, but not limited to, a zip tie, shall be issued for each medical marijuana plant.
(A)Unique identifiers will only be issued to those persons appropriately licensed by this section.
(B)Information associated with the assigned unique identifier and licensee shall be included in the trace and track program specified in Section 19335 of the Business and Professions Code.
(C)The department may charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each medical marijuana plant.
(D)The department may promulgate regulations to implement this section.
(3)The department shall take adequate steps to establish protections against fraudulent unique identifiers and limit illegal diversion of unique identifiers to unlicensed persons.
(f)(1)A city, county, or city and county that issues or denies licenses to cultivate medical marijuana pursuant to this section shall notify the department in a manner prescribed by the secretary.
(2)Unique identifiers and associated identifying information administered by a city or county shall adhere to the requirements set by the department and be the equivalent to those administered by the department.
(g)This section does not apply to a qualified patient cultivating marijuana pursuant to Section 11362.5 if the area he or she uses to cultivate marijuana does not exceed 100 square feet and he or she cultivates marijuana for his or her personal medical use and does not sell, distribute, donate, or provide marijuana to any other person or entity. This section does not apply to a primary caregiver cultivating marijuana pursuant to Section 11362.5 if the area he or she uses to cultivate marijuana does not exceed 500 square feet and he or she cultivates marijuana exclusively for the personal medical use of no more than five specified qualified patients for whom he or she is the primary caregiver within the meaning of Section 11362.7 and does not receive remuneration for these activities, except for compensation provided in full compliance with subdivision (c) of Section 11362.765. For purposes of this section, the area used to cultivate marijuana shall be measured by the aggregate area of vegetative growth of live marijuana plants on the premises. Exemption from the requirements of this section does not limit or prevent a city, county, or city and county from regulating or banning the cultivation, storage, manufacture, transport, provision, or other activity by the exempt person, or impair the enforcement of that regulation or ban.
SEC. 7.Section 13276 is added to the Water Code, to read:13276.(a)The multiagency task force, the Department of Fish and Wildlife and State Water Resources Control Board pilot project to address the Environmental Impacts of Cannabis Cultivation, assigned to respond to the damages caused by marijuana cultivation on public and private lands in California, shall continue its enforcement efforts on a permanent basis and expand them to a statewide level to ensure the reduction of adverse impacts of marijuana cultivation on water quality and on fish and wildlife throughout the state.
(b)Each regional board shall, and the State Water Resources Control Board may, address discharges of waste resulting from medical marijuana cultivation and associated activities, including by adopting a general permit, establishing waste discharge requirements, or taking action pursuant to Section 13269. In addressing these discharges, each regional board shall include conditions to address items that include, but are not limited to, all of the following:
(1)Site development and maintenance, erosion control, and drainage features.
(2)Stream crossing installation and maintenance.
(3)Riparian and wetland protection and management.
(4)Soil disposal.
(5)Water storage and use.
(6)Irrigation runoff.
(7)Fertilizers and soil.
(8)Pesticides and herbicides.
(9)Petroleum products and other chemicals.
(10)Cultivation-related waste.
(11)Refuse and human waste.
(12)Cleanup, restoration, and mitigation.
SEC. 8.The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
SEC. 9.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 10.This measure shall become operative only if both Assembly Bill 266 and Senate Bill 643 of the 201516 Regular Session are enacted and become operative.
The Legislature finds and declares all of the following:
(a)The United States Environmental Protection Agency has not established appropriate pesticide tolerances for, or permitted the registration and lawful use of, pesticides on cannabis crops intended for human consumption pursuant to the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136 et seq.).
(b)The use of pesticides is not adequately regulated due to the omissions in federal law, and cannabis cultivated in California for California patients can and often does contain pesticide residues.
(c)Lawful California medical cannabis growers and caregivers urge the Department of Pesticide Regulation to provide guidance, in absence of federal guidance, on whether the pesticides currently used at most cannabis cultivation sites are actually safe for use on cannabis intended for human consumption.
19332.(a)The Department of Food and Agriculture shall promulgate regulations governing the licensing of indoor and outdoor cultivation sites.
(b)The Department of Pesticide Regulation, in consultation with the Department of Food and Agriculture, shall develop standards for the use of pesticides in cultivation, and maximum tolerances for pesticides and other foreign object residue in harvested cannabis.
(c)The State Department of Public Health shall develop standards for the production and labeling of all edible medical cannabis products.
(d)The Department of Food and Agriculture, in consultation with the Department of Fish and Wildlife and the State Water Resources Control Board, shall ensure that individual and cumulative effects of water diversion and discharge associated with cultivation do not affect the instream flows needed for fish spawning, migration, and rearing, and the flows needed to maintain natural flow variability.
(e)The Department of Food and Agriculture shall have the authority necessary for the implementation of the regulations it adopts pursuant to this chapter. The regulations shall do all of the following:
(1)Provide that weighing or measuring devices used in connection with the sale or distribution of medical cannabis are required to meet standards equivalent to Division 5 (commencing with Section 12001).
(2)Require that cannabis cultivation by licensees is conducted in accordance with state and local laws related to land conversion, grading, electricity usage, water usage, agricultural discharges, and similar matters. Nothing in this chapter, and no regulation adopted by the department, shall be construed to supersede or limit the authority of the State Water Resources Control Board, regional water quality control boards, or the Department of Fish and Wildlife to implement and enforce their statutory obligations or to adopt regulations to protect water quality, water supply, and natural resources.
(3)Establish procedures for the issuance and revocation of unique identifiers for activities associated with a cannabis cultivation license, pursuant to Article 8 (commencing with Section 19337). All cannabis shall be labeled with the unique identifier issued by the Department of Food and Agriculture.
(4)Prescribe standards, in consultation with the bureau, for the reporting of information as necessary related to unique identifiers, pursuant to Article 8 (commencing with Section 19337).
(f)The Department of Pesticide Regulation, in consultation with the State Water Resources Control Board, shall promulgate regulations that require that the application of pesticides or other pest control in connection with the indoor or outdoor cultivation of medical cannabis meets standards equivalent to Division 6 (commencing with Section 11401) of the Food and Agricultural Code and its implementing regulations.
(g)State cultivator license types issued by the Department of Food and Agriculture include:
(1)Type 1, or specialty outdoor, for outdoor cultivation using no artificial lighting of less than or equal to 5,000 square feet of total canopy size on one premises, or up to 50 mature plants on noncontiguous plots.
(2)Type 1A, or specialty indoor, for indoor cultivation using exclusively artificial lighting of less than or equal to 5,000 square feet of total canopy size on one premises.
(3)Type 1B, or specialty mixed-light, for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, of less than or equal to 5,000 square feet of total canopy size on one premises.
(4)Type 2, or small outdoor, for outdoor cultivation using no artificial lighting between 5,001 and 10,000 square feet, inclusive, of total canopy size on one premises.
(5)Type 2A, or small indoor, for indoor cultivation using exclusively artificial lighting between 5,001 and 10,000 square feet, inclusive, of total canopy size on one premises.
(6)Type 2B, or small mixed-light, for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, between 5,001 and 10,000 square feet, inclusive, of total canopy size on one premises.
(7)Type 3, or outdoor, for outdoor cultivation using no artificial lighting from 10,001 square feet to one acre, inclusive, of total canopy size on one premises. The Department of Food and Agriculture shall limit the number of licenses allowed of this type.
(8)Type 3A, or indoor, for indoor cultivation using exclusively artificial lighting between 10,001 and 22,000 square feet, inclusive, of total canopy size on one premises. The Department of Food and Agriculture shall limit the number of licenses allowed of this type.
(9)Type 3B, or mixed-light, for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, between 10,001 and 22,000 square feet, inclusive, of total canopy size on one premises. The Department of Food and Agriculture shall limit the number of licenses allowed of this type.
(10)Type 4, or nursery, for cultivation of medical cannabis solely as a nursery. Type 4 licensees may transport live plants.
19333.An employee engaged in commercial cannabis cultivation activity shall be subject to Wage Order 4-2001 of the Industrial Welfare Commission.
SEC. 2.Article 13 (commencing with Section 19350) is added to Chapter 3.5 of Division 8 of the Business and Professions Code, to read:13.Funding19350.Each licensing authority shall establish a scale of application, licensing, and renewal fees, based upon the cost of enforcing this chapter, as follows:
(a)Each licensing authority shall charge each licensee a licensure and renewal fee, as applicable. The licensure and renewal fee shall be calculated to cover the costs of administering this chapter. The licensure fee may vary depending upon the varying costs associated with administering the various regulatory requirements of this chapter as they relate to the nature and scope of the different licensure activities, including, but not limited to, the track and trace program required pursuant to Section 19335, but shall not exceed the reasonable regulatory costs to the licensing authority.
(b)The total fees assessed pursuant to this chapter shall be set at an amount that will fairly and proportionately generate sufficient total revenue to fully cover the total costs of administering this chapter.
(c)All license fees shall be set on a scaled basis by the licensing authority, dependent on the size of the business.
(d)The licensing authority shall deposit all fees collected in a fee account specific to that licensing authority, to be established in the Medical Marijuana Regulation and Safety Act Fund. Moneys in the licensing authority fee accounts shall be used, upon appropriation of the Legislature, by the designated licensing authority for the administration of this chapter.
19351.(a)The Medical Marijuana Regulation and Safety Act Fund is hereby established within the State Treasury. Moneys in the fund shall be available upon appropriation by the Legislature. Notwithstanding Section 16305.7 of the Government Code, the fund shall include any interest and dividends earned on the moneys in the fund.
(b)(1)Funds for the establishment and support of the regulatory activities pursuant to this chapter shall be advanced as a General Fund or special fund loan, and shall be repaid by the initial proceeds from fees collected pursuant to this chapter or any rule or regulation adopted pursuant to this chapter, by January 1, 2022. Should the initial proceeds from fees not be sufficient to repay the loan, moneys from the Medical Cannabis Fines and Penalties Account shall be made available to the bureau, by appropriation of the Legislature, to repay the loan.
(2)Funds advanced pursuant to this subdivision shall be appropriated to the bureau, which shall distribute the moneys to the appropriate licensing authorities, as necessary to implement the provisions of this chapter.
(3)The Director of Finance may provide an initial operating loan from the General Fund to the Medical Marijuana Regulation and Safety Act Fund that does not exceed ten million dollars ($10,000,000).
(c)Except as otherwise provided, all moneys collected pursuant to this chapter as a result of fines or penalties imposed under this chapter shall be deposited directly into the Medical Marijuana Fines and Penalties Account, which is hereby established within the fund, and shall be available, upon appropriation by the Legislature to the bureau, for the purposes of funding the enforcement grant program pursuant to subdivision (d).
(d)(1)The bureau shall establish a grant program to allocate moneys from the Medical Cannabis Fines and Penalties Account to state and local entities for the following purposes:
(A)To assist with medical cannabis regulation and the enforcement of this chapter and other state and local laws applicable to cannabis activities.
(B)For allocation to state and local agencies and law enforcement to remedy the environmental impacts of cannabis cultivation.
(2)The costs of the grant program under this subdivision shall, upon appropriation by the Legislature, be paid for with moneys in the Medical Cannabis Fines and Penalties Account.
(3)The grant program established by this subdivision shall only be implemented after the loan specified in this section is repaid.
19352.The sum of ten million dollars ($10,000,000) is hereby appropriated from the Medical Marijuana Regulation and Safety Act Fund to the Department of Consumer Affairs to begin the activities of the Bureau of Medical Marijuana Regulation. Funds appropriated pursuant to this section shall not include moneys received from fines or penalties.
SEC. 3.Article 17 (commencing with Section 19360) is added to Chapter 3.5 of Division 8 of the Business and Professions Code, to read:17.Penalties and Violations19360.(a)A person engaging in cannabis activity without a license and associated unique identifiers required by this chapter shall be subject to civil penalties of up to twice the amount of the license fee for each violation, and the department, state or local authority, or court may order the destruction of medical cannabis associated with that violation. Each day of operation shall constitute a separate violation of this section. All civil penalties imposed and collected pursuant to this section shall be deposited into the Marijuana Production and Environment Mitigation Fund established pursuant to Section 31013 of the Revenue and Taxation Code.
(b)If an action for civil penalties is brought against a licensee pursuant to this chapter by the Attorney General, the penalty collected shall be deposited into the General Fund. If the action is brought by a district attorney or county counsel, the penalty collected shall be paid to the treasurer of the county in which the judgment was entered. If the action is brought by a city attorney or city prosecutor, the penalty collected shall be paid to the treasurer of the city or city and county in which the judgment was entered. If the action is brought by a city attorney and is adjudicated in a superior court located in the unincorporated area or another city in the same county, the penalty shall be paid one-half to the treasurer of the city in which the complaining attorney has jurisdiction and one-half to the treasurer of the county in which the judgment is entered.
(c)Notwithstanding subdivision (a), criminal penalties shall continue to apply to an unlicensed person or entity engaging in cannabis activity in violation of this chapter, including, but not limited to, those individuals covered under Section 11362.7 of the Health and Safety Code.
SEC. 4.Section 12029 is added to the Fish and Game Code, to read:12029.(a)The Legislature finds and declares all of the following:
(1)The environmental impacts associated with marijuana cultivation have increased, and unlawful water diversions for marijuana irrigation have a detrimental effect on fish and wildlife and their habitat, which are held in trust by the state for the benefit of the people of the state.
(2)The remediation of existing marijuana cultivation sites is often complex and the permitting of these sites requires greater department staff time and personnel expenditures. The potential for marijuana cultivation sites to significantly impact the states fish and wildlife resources requires immediate action on the part of the departments lake and streambed alteration permitting staff.
(b)In order to address unlawful water diversions and other violations of the Fish and Game Code associated with marijuana cultivation, the department shall establish the watershed enforcement program to facilitate the investigation, enforcement, and prosecution of these offenses.
(c)The department, in coordination with the State Water Resources Control Board, shall establish a permanent multiagency task force to address the environmental impacts of marijuana cultivation. The multiagency task force, to the extent feasible and subject to available Resources, shall expand its enforcement efforts on a statewide level to ensure the reduction of adverse impacts of marijuana cultivation on fish and wildlife and their habitats throughout the state.
(d)In order to facilitate the remediation and permitting of marijuana cultivation sites, the department shall adopt regulations to enhance the fees on any entity subject to Section 1602 for marijuana cultivation sites that require remediation. The fee schedule established pursuant to this subdivision shall not exceed the fee limits in Section 1609.
SEC. 5.Section 11362.769 is added to the Health and Safety Code, to read:11362.769.Indoor and outdoor medical marijuana cultivation shall be conducted in accordance with state and local laws related to land conversion, grading, electricity usage, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters. State agencies, including, but not limited to, the State Board of Forestry and Fire Protection, the Department of Fish and Wildlife, the State Water Resources Control Board, the California regional water quality control boards, and traditional state law enforcement agencies shall address environmental impacts of medical marijuana cultivation and shall coordinate, when appropriate, with cities and counties and their law enforcement agencies in enforcement efforts.
SEC. 6.Section 11362.777 is added to the Health and Safety Code, to read:11362.777.(a)The Department of Food and Agriculture shall establish a Medical Cannabis Cultivation Program to be administered by the secretary, except as specified in subdivision (c), shall administer this section as it pertains to the cultivation of medical marijuana. For purposes of this section and Chapter 3.5 (commencing with Section 19300) of the Business and Professions Code, medical cannabis is an agricultural product.
(b)(1)A person or entity shall not cultivate medical marijuana without first obtaining both of the following:
(A)A license, permit, or other entitlement, specifically permitting cultivation pursuant to these provisions, from the city, county, or city and county in which the cultivation will occur.
(B)A state license issued by the department pursuant to this section.
(2)A person or entity shall not submit an application for a state license issued by the department pursuant to this section unless that person or entity has received a license, permit, or other entitlement, specifically permitting cultivation pursuant to these provisions, from the city, county, or city and county in which the cultivation will occur.
(3)A person or entity shall not submit an application for a state license issued by the department pursuant to this section if the proposed cultivation of marijuana will violate the provisions of any local ordinance or regulation, or if medical marijuana is prohibited by the city, county, or city and county in which the cultivation is proposed to occur, either expressly or otherwise under principles of permissive zoning.
(c)(1)Except as otherwise specified in this subdivision, and without limiting any other local regulation, a city, county, or city and county, through its current or future land use regulations or ordinance, may issue or deny a permit to cultivate medical marijuana pursuant to this section. A city, county, or city and county may inspect the intended cultivation site for suitability prior to issuing a permit. After the city, county, or city and county has approved a permit, the applicant shall apply for a state medical marijuana cultivation license from the department. A locally issued cultivation permit shall only become active upon licensing by the department and receiving final local approval. A person shall not cultivate medical marijuana prior to obtaining both a permit from the city, county, or city and county and a state medical marijuana cultivation license from the department.
(2)A city, county, or city and county that issues or denies conditional licenses to cultivate medical marijuana pursuant to this section shall notify the department in a manner prescribed by the secretary.
(3)A city, county, or city and countys locally issued conditional permit requirements must be at least as stringent as the departments state licensing requirements.
(4)If a city, county, or city and county does not have land use regulations or ordinances regulating or prohibiting the cultivation of marijuana, either expressly or otherwise under principles of permissive zoning, or chooses not to administer a conditional permit program pursuant to this section, then commencing March 1, 2016, the division shall be the sole licensing authority for medical marijuana cultivation applicants in that city, county, or city and county.
(d)(1)The secretary may prescribe, adopt, and enforce regulations relating to the implementation, administration, and enforcement of this part, including, but not limited to, applicant requirements, collections, reporting, refunds, and appeals.
(2)The secretary may prescribe, adopt, and enforce any emergency regulations as necessary to implement this part. Any emergency regulation prescribed, adopted, or enforced pursuant to this section shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and, for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of the regulation is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, and general welfare.
(3)The secretary may enter into a cooperative agreement with a county agricultural commissioner to carry out the provisions of this chapter, including, but not limited to, administration, investigations, inspections, licensing and assistance pertaining to the cultivation of medical marijuana. Compensation under the cooperative agreement shall be paid from assessments and fees collected and deposited pursuant to this chapter and shall provide reimbursement to the county agricultural commissioner for associated costs.
(e)(1)The department, in consultation with, but not limited to, the Bureau of Medical Marijuana Regulation, the State Water Resources Control Board, and the Department of Fish and Wildlife, shall implement a unique identification program for medical marijuana. In implementing the program, the department shall consider issues, including, but not limited to, water use and environmental impacts. In implementing the program, the department shall ensure that:
(A)Individual and cumulative effects of water diversion and discharge associated with cultivation do not affect the instream flows needed for fish spawning, migration, and rearing, and the flows needed to maintain natural flow variability.
(B)Cultivation will not negatively impact springs, riparian wetlands, and aquatic habitats.
(2)The department shall establish a program for the identification of permitted medical marijuana plants at a cultivation site during the cultivation period. The unique identifier shall be attached at the base of each plant. A unique identifier, such as, but not limited to, a zip tie, shall be issued for each medical marijuana plant.
(A)Unique identifiers will only be issued to those persons appropriately licensed by this section.
(B)Information associated with the assigned unique identifier and licensee shall be included in the trace and track program specified in Section 19335 of the Business and Professions Code.
(C)The department may charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each medical marijuana plant.
(D)The department may promulgate regulations to implement this section.
(3)The department shall take adequate steps to establish protections against fraudulent unique identifiers and limit illegal diversion of unique identifiers to unlicensed persons.
(f)(1)A city, county, or city and county that issues or denies licenses to cultivate medical marijuana pursuant to this section shall notify the department in a manner prescribed by the secretary.
(2)Unique identifiers and associated identifying information administered by a city or county shall adhere to the requirements set by the department and be the equivalent to those administered by the department.
(g)This section does not apply to a qualified patient cultivating marijuana pursuant to Section 11362.5 if the area he or she uses to cultivate marijuana does not exceed 100 square feet and he or she cultivates marijuana for his or her personal medical use and does not sell, distribute, donate, or provide marijuana to any other person or entity. This section does not apply to a primary caregiver cultivating marijuana pursuant to Section 11362.5 if the area he or she uses to cultivate marijuana does not exceed 500 square feet and he or she cultivates marijuana exclusively for the personal medical use of no more than five specified qualified patients for whom he or she is the primary caregiver within the meaning of Section 11362.7 and does not receive remuneration for these activities, except for compensation provided in full compliance with subdivision (c) of Section 11362.765. For purposes of this section, the area used to cultivate marijuana shall be measured by the aggregate area of vegetative growth of live marijuana plants on the premises. Exemption from the requirements of this section does not limit or prevent a city, county, or city and county from regulating or banning the cultivation, storage, manufacture, transport, provision, or other activity by the exempt person, or impair the enforcement of that regulation or ban.
SEC. 7.Section 13276 is added to the Water Code, to read:13276.(a)The multiagency task force, the Department of Fish and Wildlife and State Water Resources Control Board pilot project to address the Environmental Impacts of Cannabis Cultivation, assigned to respond to the damages caused by marijuana cultivation on public and private lands in California, shall continue its enforcement efforts on a permanent basis and expand them to a statewide level to ensure the reduction of adverse impacts of marijuana cultivation on water quality and on fish and wildlife throughout the state.
(b)Each regional board shall, and the State Water Resources Control Board may, address discharges of waste resulting from medical marijuana cultivation and associated activities, including by adopting a general permit, establishing waste discharge requirements, or taking action pursuant to Section 13269. In addressing these discharges, each regional board shall include conditions to address items that include, but are not limited to, all of the following:
(1)Site development and maintenance, erosion control, and drainage features.
(2)Stream crossing installation and maintenance.
(3)Riparian and wetland protection and management.
(4)Soil disposal.
(5)Water storage and use.
(6)Irrigation runoff.
(7)Fertilizers and soil.
(8)Pesticides and herbicides.
(9)Petroleum products and other chemicals.
(10)Cultivation-related waste.
(11)Refuse and human waste.
(12)Cleanup, restoration, and mitigation.
SEC. 8.The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
SEC. 9.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 10.This measure shall become operative only if both Assembly Bill 266 and Senate Bill 643 of the 201516 Regular Session are enacted and become operative.
(a)In order to ensure that its resources are maximized for the protection of the public, the Medical Board of California shall prioritize its investigative and prosecutorial resources to ensure that physicians and surgeons representing the greatest threat of harm are identified and disciplined expeditiously. Cases involving any of the following allegations shall be handled on a priority basis, as follows, with the highest priority being given to cases in the first paragraph:
(1)Gross negligence, incompetence, or repeated negligent acts that involve death or serious bodily injury to one or more patients, such that the physician and surgeon represents a danger to the public.
(2)Drug or alcohol abuse by a physician and surgeon involving death or serious bodily injury to a patient.
(3)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. However, in no event shall a physician and surgeon prescribing, furnishing, or administering controlled substances for intractable pain consistent with lawful prescribing, including, but not limited to, Sections 725, 2241.5, and 2241.6 of this code and Sections 11159.2 and 124961 of the Health and Safety Code, be prosecuted for excessive prescribing and prompt review of the applicability of these provisions shall be made in any complaint that may implicate these provisions.
(4)Repeated acts of clearly excessive recommending of cannabis to patients for medical purposes, or repeated acts of recommending cannabis to patients for medical purposes without a good faith prior examination of the patient and a medical reason for the recommendation.
(5)Sexual misconduct with one or more patients during a course of treatment or an examination.
(6)Practicing medicine while under the influence of drugs or alcohol.
(b)The board may by regulation prioritize cases involving an allegation of conduct that is not described in subdivision (a). Those cases prioritized by regulation shall not be assigned a priority equal to or higher than the priorities established in subdivision (a).
(c)The Medical Board of California shall indicate in its annual report mandated by Section 2312 the number of temporary restraining orders, interim suspension orders, and disciplinary actions that are taken in each priority category specified in subdivisions (a) and (b).
SECTION 1.Article 6 (commencing with Section 19331) is added to Chapter 3.5 of Division 8 of the Business and Professions Code, to read:6.Licensed Cultivation Sites19331.The Legislature finds and declares all of the following:
(a)The United States Environmental Protection Agency has not established appropriate pesticide tolerances for, or permitted the registration and lawful use of, pesticides on cannabis crops intended for human consumption pursuant to the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136 et seq.).
(b)The use of pesticides is not adequately regulated due to the omissions in federal law, and cannabis cultivated in California for California patients can and often does contain pesticide residues.
(c)Lawful California medical cannabis growers and caregivers urge the Department of Pesticide Regulation to provide guidance, in absence of federal guidance, on whether the pesticides currently used at most cannabis cultivation sites are actually safe for use on cannabis intended for human consumption.
19332.(a)The Department of Food and Agriculture shall promulgate regulations governing the licensing of indoor and outdoor cultivation sites.
(b)The Department of Pesticide Regulation, in consultation with the Department of Food and Agriculture, shall develop standards for the use of pesticides in cultivation, and maximum tolerances for pesticides and other foreign object residue in harvested cannabis.
(c)The State Department of Public Health shall develop standards for the production and labeling of all edible medical cannabis products.
(d)The Department of Food and Agriculture, in consultation with the Department of Fish and Wildlife and the State Water Resources Control Board, shall ensure that individual and cumulative effects of water diversion and discharge associated with cultivation do not affect the instream flows needed for fish spawning, migration, and rearing, and the flows needed to maintain natural flow variability.
(e)The Department of Food and Agriculture shall have the authority necessary for the implementation of the regulations it adopts pursuant to this chapter. The regulations shall do all of the following:
(1)Provide that weighing or measuring devices used in connection with the sale or distribution of medical cannabis are required to meet standards equivalent to Division 5 (commencing with Section 12001).
(2)Require that cannabis cultivation by licensees is conducted in accordance with state and local laws related to land conversion, grading, electricity usage, water usage, agricultural discharges, and similar matters. Nothing in this chapter, and no regulation adopted by the department, shall be construed to supersede or limit the authority of the State Water Resources Control Board, regional water quality control boards, or the Department of Fish and Wildlife to implement and enforce their statutory obligations or to adopt regulations to protect water quality, water supply, and natural resources.
(3)Establish procedures for the issuance and revocation of unique identifiers for activities associated with a cannabis cultivation license, pursuant to Article 8 (commencing with Section 19337). All cannabis shall be labeled with the unique identifier issued by the Department of Food and Agriculture.
(4)Prescribe standards, in consultation with the bureau, for the reporting of information as necessary related to unique identifiers, pursuant to Article 8 (commencing with Section 19337).
(f)The Department of Pesticide Regulation, in consultation with the State Water Resources Control Board, shall promulgate regulations that require that the application of pesticides or other pest control in connection with the indoor or outdoor cultivation of medical cannabis meets standards equivalent to Division 6 (commencing with Section 11401) of the Food and Agricultural Code and its implementing regulations.
(g)State cultivator license types issued by the Department of Food and Agriculture include:
(1)Type 1, or specialty outdoor, for outdoor cultivation using no artificial lighting of less than or equal to 5,000 square feet of total canopy size on one premises, or up to 50 mature plants on noncontiguous plots.
(2)Type 1A, or specialty indoor, for indoor cultivation using exclusively artificial lighting of less than or equal to 5,000 square feet of total canopy size on one premises.
(3)Type 1B, or specialty mixed-light, for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, of less than or equal to 5,000 square feet of total canopy size on one premises.
(4)Type 2, or small outdoor, for outdoor cultivation using no artificial lighting between 5,001 and 10,000 square feet, inclusive, of total canopy size on one premises.
(5)Type 2A, or small indoor, for indoor cultivation using exclusively artificial lighting between 5,001 and 10,000 square feet, inclusive, of total canopy size on one premises.
(6)Type 2B, or small mixed-light, for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, between 5,001 and 10,000 square feet, inclusive, of total canopy size on one premises.
(7)Type 3, or outdoor, for outdoor cultivation using no artificial lighting from 10,001 square feet to one acre, inclusive, of total canopy size on one premises. The Department of Food and Agriculture shall limit the number of licenses allowed of this type.
(8)Type 3A, or indoor, for indoor cultivation using exclusively artificial lighting between 10,001 and 22,000 square feet, inclusive, of total canopy size on one premises. The Department of Food and Agriculture shall limit the number of licenses allowed of this type.
(9)Type 3B, or mixed-light, for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, between 10,001 and 22,000 square feet, inclusive, of total canopy size on one premises. The Department of Food and Agriculture shall limit the number of licenses allowed of this type.
(10)Type 4, or nursery, for cultivation of medical cannabis solely as a nursery. Type 4 licensees may transport live plants.
19333.An employee engaged in commercial cannabis cultivation activity shall be subject to Wage Order 4-2001 of the Industrial Welfare Commission.
SEC. 2.Article 13 (commencing with Section 19350) is added to Chapter 3.5 of Division 8 of the Business and Professions Code, to read:13.Funding19350.Each licensing authority shall establish a scale of application, licensing, and renewal fees, based upon the cost of enforcing this chapter, as follows:
(a)Each licensing authority shall charge each licensee a licensure and renewal fee, as applicable. The licensure and renewal fee shall be calculated to cover the costs of administering this chapter. The licensure fee may vary depending upon the varying costs associated with administering the various regulatory requirements of this chapter as they relate to the nature and scope of the different licensure activities, including, but not limited to, the track and trace program required pursuant to Section 19335, but shall not exceed the reasonable regulatory costs to the licensing authority.
(b)The total fees assessed pursuant to this chapter shall be set at an amount that will fairly and proportionately generate sufficient total revenue to fully cover the total costs of administering this chapter.
(c)All license fees shall be set on a scaled basis by the licensing authority, dependent on the size of the business.
(d)The licensing authority shall deposit all fees collected in a fee account specific to that licensing authority, to be established in the Medical Marijuana Regulation and Safety Act Fund. Moneys in the licensing authority fee accounts shall be used, upon appropriation of the Legislature, by the designated licensing authority for the administration of this chapter.
19351.(a)The Medical Marijuana Regulation and Safety Act Fund is hereby established within the State Treasury. Moneys in the fund shall be available upon appropriation by the Legislature. Notwithstanding Section 16305.7 of the Government Code, the fund shall include any interest and dividends earned on the moneys in the fund.
(b)(1)Funds for the establishment and support of the regulatory activities pursuant to this chapter shall be advanced as a General Fund or special fund loan, and shall be repaid by the initial proceeds from fees collected pursuant to this chapter or any rule or regulation adopted pursuant to this chapter, by January 1, 2022. Should the initial proceeds from fees not be sufficient to repay the loan, moneys from the Medical Cannabis Fines and Penalties Account shall be made available to the bureau, by appropriation of the Legislature, to repay the loan.
(2)Funds advanced pursuant to this subdivision shall be appropriated to the bureau, which shall distribute the moneys to the appropriate licensing authorities, as necessary to implement the provisions of this chapter.
(3)The Director of Finance may provide an initial operating loan from the General Fund to the Medical Marijuana Regulation and Safety Act Fund that does not exceed ten million dollars ($10,000,000).
(c)Except as otherwise provided, all moneys collected pursuant to this chapter as a result of fines or penalties imposed under this chapter shall be deposited directly into the Medical Marijuana Fines and Penalties Account, which is hereby established within the fund, and shall be available, upon appropriation by the Legislature to the bureau, for the purposes of funding the enforcement grant program pursuant to subdivision (d).
(d)(1)The bureau shall establish a grant program to allocate moneys from the Medical Cannabis Fines and Penalties Account to state and local entities for the following purposes:
(A)To assist with medical cannabis regulation and the enforcement of this chapter and other state and local laws applicable to cannabis activities.
(B)For allocation to state and local agencies and law enforcement to remedy the environmental impacts of cannabis cultivation.
(2)The costs of the grant program under this subdivision shall, upon appropriation by the Legislature, be paid for with moneys in the Medical Cannabis Fines and Penalties Account.
(3)The grant program established by this subdivision shall only be implemented after the loan specified in this section is repaid.
19352.The sum of ten million dollars ($10,000,000) is hereby appropriated from the Medical Marijuana Regulation and Safety Act Fund to the Department of Consumer Affairs to begin the activities of the Bureau of Medical Marijuana Regulation. Funds appropriated pursuant to this section shall not include moneys received from fines or penalties.
SEC. 3.Article 17 (commencing with Section 19360) is added to Chapter 3.5 of Division 8 of the Business and Professions Code, to read:17.Penalties and Violations19360.(a)A person engaging in cannabis activity without a license and associated unique identifiers required by this chapter shall be subject to civil penalties of up to twice the amount of the license fee for each violation, and the department, state or local authority, or court may order the destruction of medical cannabis associated with that violation. Each day of operation shall constitute a separate violation of this section. All civil penalties imposed and collected pursuant to this section shall be deposited into the Marijuana Production and Environment Mitigation Fund established pursuant to Section 31013 of the Revenue and Taxation Code.
(b)If an action for civil penalties is brought against a licensee pursuant to this chapter by the Attorney General, the penalty collected shall be deposited into the General Fund. If the action is brought by a district attorney or county counsel, the penalty collected shall be paid to the treasurer of the county in which the judgment was entered. If the action is brought by a city attorney or city prosecutor, the penalty collected shall be paid to the treasurer of the city or city and county in which the judgment was entered. If the action is brought by a city attorney and is adjudicated in a superior court located in the unincorporated area or another city in the same county, the penalty shall be paid one-half to the treasurer of the city in which the complaining attorney has jurisdiction and one-half to the treasurer of the county in which the judgment is entered.
(c)Notwithstanding subdivision (a), criminal penalties shall continue to apply to an unlicensed person or entity engaging in cannabis activity in violation of this chapter, including, but not limited to, those individuals covered under Section 11362.7 of the Health and Safety Code.
SEC. 4.Section 12029 is added to the Fish and Game Code, to read:12029.(a)The Legislature finds and declares all of the following:
(1)The environmental impacts associated with marijuana cultivation have increased, and unlawful water diversions for marijuana irrigation have a detrimental effect on fish and wildlife and their habitat, which are held in trust by the state for the benefit of the people of the state.
(2)The remediation of existing marijuana cultivation sites is often complex and the permitting of these sites requires greater department staff time and personnel expenditures. The potential for marijuana cultivation sites to significantly impact the states fish and wildlife resources requires immediate action on the part of the departments lake and streambed alteration permitting staff.
(b)In order to address unlawful water diversions and other violations of the Fish and Game Code associated with marijuana cultivation, the department shall establish the watershed enforcement program to facilitate the investigation, enforcement, and prosecution of these offenses.
(c)The department, in coordination with the State Water Resources Control Board, shall establish a permanent multiagency task force to address the environmental impacts of marijuana cultivation. The multiagency task force, to the extent feasible and subject to available Resources, shall expand its enforcement efforts on a statewide level to ensure the reduction of adverse impacts of marijuana cultivation on fish and wildlife and their habitats throughout the state.
(d)In order to facilitate the remediation and permitting of marijuana cultivation sites, the department shall adopt regulations to enhance the fees on any entity subject to Section 1602 for marijuana cultivation sites that require remediation. The fee schedule established pursuant to this subdivision shall not exceed the fee limits in Section 1609.
SEC. 5.Section 11362.769 is added to the Health and Safety Code, to read:11362.769.Indoor and outdoor medical marijuana cultivation shall be conducted in accordance with state and local laws related to land conversion, grading, electricity usage, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters. State agencies, including, but not limited to, the State Board of Forestry and Fire Protection, the Department of Fish and Wildlife, the State Water Resources Control Board, the California regional water quality control boards, and traditional state law enforcement agencies shall address environmental impacts of medical marijuana cultivation and shall coordinate, when appropriate, with cities and counties and their law enforcement agencies in enforcement efforts.
SEC. 6.Section 11362.777 is added to the Health and Safety Code, to read:11362.777.(a)The Department of Food and Agriculture shall establish a Medical Cannabis Cultivation Program to be administered by the secretary, except as specified in subdivision (c), shall administer this section as it pertains to the cultivation of medical marijuana. For purposes of this section and Chapter 3.5 (commencing with Section 19300) of the Business and Professions Code, medical cannabis is an agricultural product.
(b)(1)A person or entity shall not cultivate medical marijuana without first obtaining both of the following:
(A)A license, permit, or other entitlement, specifically permitting cultivation pursuant to these provisions, from the city, county, or city and county in which the cultivation will occur.
(B)A state license issued by the department pursuant to this section.
(2)A person or entity shall not submit an application for a state license issued by the department pursuant to this section unless that person or entity has received a license, permit, or other entitlement, specifically permitting cultivation pursuant to these provisions, from the city, county, or city and county in which the cultivation will occur.
(3)A person or entity shall not submit an application for a state license issued by the department pursuant to this section if the proposed cultivation of marijuana will violate the provisions of any local ordinance or regulation, or if medical marijuana is prohibited by the city, county, or city and county in which the cultivation is proposed to occur, either expressly or otherwise under principles of permissive zoning.
(c)(1)Except as otherwise specified in this subdivision, and without limiting any other local regulation, a city, county, or city and county, through its current or future land use regulations or ordinance, may issue or deny a permit to cultivate medical marijuana pursuant to this section. A city, county, or city and county may inspect the intended cultivation site for suitability prior to issuing a permit. After the city, county, or city and county has approved a permit, the applicant shall apply for a state medical marijuana cultivation license from the department. A locally issued cultivation permit shall only become active upon licensing by the department and receiving final local approval. A person shall not cultivate medical marijuana prior to obtaining both a permit from the city, county, or city and county and a state medical marijuana cultivation license from the department.
(2)A city, county, or city and county that issues or denies conditional licenses to cultivate medical marijuana pursuant to this section shall notify the department in a manner prescribed by the secretary.
(3)A city, county, or city and countys locally issued conditional permit requirements must be at least as stringent as the departments state licensing requirements.
(4)If a city, county, or city and county does not have land use regulations or ordinances regulating or prohibiting the cultivation of marijuana, either expressly or otherwise under principles of permissive zoning, or chooses not to administer a conditional permit program pursuant to this section, then commencing March 1, 2016, the division shall be the sole licensing authority for medical marijuana cultivation applicants in that city, county, or city and county.
(d)(1)The secretary may prescribe, adopt, and enforce regulations relating to the implementation, administration, and enforcement of this part, including, but not limited to, applicant requirements, collections, reporting, refunds, and appeals.
(2)The secretary may prescribe, adopt, and enforce any emergency regulations as necessary to implement this part. Any emergency regulation prescribed, adopted, or enforced pursuant to this section shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and, for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of the regulation is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, and general welfare.
(3)The secretary may enter into a cooperative agreement with a county agricultural commissioner to carry out the provisions of this chapter, including, but not limited to, administration, investigations, inspections, licensing and assistance pertaining to the cultivation of medical marijuana. Compensation under the cooperative agreement shall be paid from assessments and fees collected and deposited pursuant to this chapter and shall provide reimbursement to the county agricultural commissioner for associated costs.
(e)(1)The department, in consultation with, but not limited to, the Bureau of Medical Marijuana Regulation, the State Water Resources Control Board, and the Department of Fish and Wildlife, shall implement a unique identification program for medical marijuana. In implementing the program, the department shall consider issues, including, but not limited to, water use and environmental impacts. In implementing the program, the department shall ensure that:
(A)Individual and cumulative effects of water diversion and discharge associated with cultivation do not affect the instream flows needed for fish spawning, migration, and rearing, and the flows needed to maintain natural flow variability.
(B)Cultivation will not negatively impact springs, riparian wetlands, and aquatic habitats.
(2)The department shall establish a program for the identification of permitted medical marijuana plants at a cultivation site during the cultivation period. The unique identifier shall be attached at the base of each plant. A unique identifier, such as, but not limited to, a zip tie, shall be issued for each medical marijuana plant.
(A)Unique identifiers will only be issued to those persons appropriately licensed by this section.
(B)Information associated with the assigned unique identifier and licensee shall be included in the trace and track program specified in Section 19335 of the Business and Professions Code.
(C)The department may charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each medical marijuana plant.
(D)The department may promulgate regulations to implement this section.
(3)The department shall take adequate steps to establish protections against fraudulent unique identifiers and limit illegal diversion of unique identifiers to unlicensed persons.
(f)(1)A city, county, or city and county that issues or denies licenses to cultivate medical marijuana pursuant to this section shall notify the department in a manner prescribed by the secretary.
(2)Unique identifiers and associated identifying information administered by a city or county shall adhere to the requirements set by the department and be the equivalent to those administered by the department.
(g)This section does not apply to a qualified patient cultivating marijuana pursuant to Section 11362.5 if the area he or she uses to cultivate marijuana does not exceed 100 square feet and he or she cultivates marijuana for his or her personal medical use and does not sell, distribute, donate, or provide marijuana to any other person or entity. This section does not apply to a primary caregiver cultivating marijuana pursuant to Section 11362.5 if the area he or she uses to cultivate marijuana does not exceed 500 square feet and he or she cultivates marijuana exclusively for the personal medical use of no more than five specified qualified patients for whom he or she is the primary caregiver within the meaning of Section 11362.7 and does not receive remuneration for these activities, except for compensation provided in full compliance with subdivision (c) of Section 11362.765. For purposes of this section, the area used to cultivate marijuana shall be measured by the aggregate area of vegetative growth of live marijuana plants on the premises. Exemption from the requirements of this section does not limit or prevent a city, county, or city and county from regulating or banning the cultivation, storage, manufacture, transport, provision, or other activity by the exempt person, or impair the enforcement of that regulation or ban.
SEC. 7.Section 13276 is added to the Water Code, to read:13276.(a)The multiagency task force, the Department of Fish and Wildlife and State Water Resources Control Board pilot project to address the Environmental Impacts of Cannabis Cultivation, assigned to respond to the damages caused by marijuana cultivation on public and private lands in California, shall continue its enforcement efforts on a permanent basis and expand them to a statewide level to ensure the reduction of adverse impacts of marijuana cultivation on water quality and on fish and wildlife throughout the state.
(b)Each regional board shall, and the State Water Resources Control Board may, address discharges of waste resulting from medical marijuana cultivation and associated activities, including by adopting a general permit, establishing waste discharge requirements, or taking action pursuant to Section 13269. In addressing these discharges, each regional board shall include conditions to address items that include, but are not limited to, all of the following:
(1)Site development and maintenance, erosion control, and drainage features.
(2)Stream crossing installation and maintenance.
(3)Riparian and wetland protection and management.
(4)Soil disposal.
(5)Water storage and use.
(6)Irrigation runoff.
(7)Fertilizers and soil.
(8)Pesticides and herbicides.
(9)Petroleum products and other chemicals.
(10)Cultivation-related waste.
(11)Refuse and human waste.
(12)Cleanup, restoration, and mitigation.
SEC. 8.The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
SEC. 9.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 2.SEC. 10.This measure shall become operative only if both Assembly Bill 266 and Senate Bill 643 of the 201516 Regular Session are enacted and become operative.
SEC. 3.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to address the damage done by illegal marijuana cultivation at the earliest time possible, it is necessary that this act take effect immediately.
(a)In order to ensure that its resources are maximized for the protection of the public, the Medical Board of California shall prioritize its investigative and prosecutorial resources to ensure that physicians and surgeons representing the greatest threat of harm are identified and disciplined expeditiously. Cases involving any of the following allegations shall be handled on a priority basis, as follows, with the highest priority being given to cases in the first paragraph:
(1)Gross negligence, incompetence, or repeated negligent acts that involve death or serious bodily injury to one or more patients, such that the physician and surgeon represents a danger to the public.
(2)Drug or alcohol abuse by a physician and surgeon involving death or serious bodily injury to a patient.
(3)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. However, in no event shall a physician and surgeon prescribing, furnishing, or administering controlled substances for intractable pain consistent with lawful prescribing, including, but not limited to, Sections 725, 2241.5, and 2241.6 of this code and Sections 11159.2 and 124961 of the Health and Safety Code, be prosecuted for excessive prescribing and prompt review of the applicability of these provisions shall be made in any complaint that may implicate these provisions.
(4)Repeated acts of clearly excessive recommending of cannabis to patients for medical purposes, or repeated acts of recommending cannabis to patients for medical purposes without a good faith prior examination of the patient and a medical reason for the recommendation.
(4)
(5)Sexual misconduct with one or more patients during a course of treatment or an examination.
(5)
(6)Practicing medicine while under the influence of drugs or alcohol.
(b)The board may by regulation prioritize cases involving an allegation of conduct that is not described in subdivision (a). Those cases prioritized by regulation shall not be assigned a priority equal to or higher than the priorities established in subdivision (a).
(c)The Medical Board of California shall indicate in its annual report mandated by Section 2312 the number of temporary restraining orders, interim suspension orders, and disciplinary actions that are taken in each priority category specified in subdivisions (a) and (b).
SECTION 1.It is the intent of the Legislature to enact legislation that would establish a dedicated funding source to address environmental damages resulting from illegal cannabis cultivation.
SEC. 2.This measure shall become operative only if both Assembly Bill 266 and Senate Bill 643 of the 201516 Regular Session are enacted and become operative.
SEC. 3.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to address the damage done by illegal marijuana cultivation at the earliest time possible, it is necessary that this act take effect immediately.
Indoor and outdoor medical marijuana cultivation shall be conducted in accordance with state and local laws and best practices related to land conversion, grading, electricity usage, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters. State agencies, including, but not limited to, the State Board of Forestry and Fire Protection, the Department of Fish and Wildlife, the State Water Resources Control Board, the California regional water quality control boards, and traditional state law enforcement agencies shall address environmental impacts of medical marijuana cultivation and shall coordinate, when appropriate, with cities and counties and their law enforcement agencies in enforcement efforts.
SEC. 2.Section 11362.777 is added to the Health and Safety Code, to read:11362.777.(a)The Division of Medical Cannabis Cultivation is established within the Department of Food and Agriculture. The division shall be administered by a person appointed by the Governor and, except as specified in subdivision (c), shall administer this section as it pertains to the cultivation of medical marijuana.
(b)(1)A person or entity shall not cultivate medical marijuana without first obtaining both of the following:
(A)A license, permit, or other entitlement, specifically permitting cultivation pursuant to these provisions, from the county, city, or city and county in which the cultivation will occur.
(B)A license issued by the state pursuant to this section.
(2)A person or entity shall not submit an application for a license issued by the state pursuant to this section unless that person or entity has received a license, permit, or other entitlement, specifically permitting cultivation pursuant to these provisions, from the county, city, or city and county in which the cultivation will occur.
(3)A person or entity shall not submit an application for a license issued by the state pursuant to this section if the proposed cultivation of marijuana will violate the provisions of any local ordinance or regulation, or if medical marijuana is prohibited by the county, city, or city and county in which the cultivation is proposed to occur, either expressly or otherwise under principles of permissive zoning.
(c)(1)Except as specified in paragraph (2), and without limiting any other local regulation, a county, city, or city and county, through its current or future land use regulations or ordinance, may issue or deny a conditional permit to cultivate medical marijuana pursuant to this section. A county, city, or city and county may inspect the intended cultivation site for suitability prior to issuing a conditional permit. After the city, county, or city and county have approved a conditional permit, the applicant shall apply for a state medical marijuana cultivation license from the division. A locally issued conditional cultivation permit shall only become active upon licensing by the division and receiving final local approval. A person shall not cultivate medical marijuana prior to obtaining both a conditional permit from the county, city, or city and county and a state medical marijuana cultivation license from the division.
(2)If a county, city, or city and county does not have land use regulations or ordinances regulating or prohibiting the cultivation of marijuana, either expressly or otherwise under principles of permissive zoning, or chooses not to administer a conditional permit program pursuant to this section, then commencing March 1, 2016, the division shall be the sole licensing authority for medical marijuana cultivation applicants in that county, city, or city and county.
(d)(1)The division, in consultation with, but not limited to, the State Water Resources Control Board and the Department of Fish and Wildlife, shall implement a unique identification program for medical marijuana. In implementing the program, the division shall consider issues, including, but not limited to, water use and environmental impacts. In implementing the program, the division shall ensure that individual and cumulative effects of water diversion and discharge associated with cultivation do not affect the instream flows needed for fish spawning, migration, and rearing, and the flows needed to maintain natural flow variability. The division shall ensure that cultivation will not negatively impact springs, riparian wetlands, and aquatic habitats.
(2)The division shall establish a program for the identification of permitted medical marijuana plants at a cultivation site during the cultivation period. The unique identifier shall be attached at the base of each plant. A unique identifier, such as, but not limited to, a zip tie, shall be issued for each medical marijuana plant.
(3)The division may charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each medical marijuana plant.
(e)(1)On or before January 1, 2021, the following entities shall submit a report to the Legislature:
(A)The multiagency task force, the Department of Fish and Wildlife, and the State Water Resources Control Board, shall submit a report on the project to address the Environmental Impacts of Cannabis Cultivation and how funds allocated to those entities pursuant to Section 31013 of the Revenue and Taxation Code have been used for those purposes.
(B)The Department of Justice shall submit a report on how local and state law enforcement agencies have used funds allocated pursuant to Section 31013 of the Revenue and Taxation Code to address illegal marijuana cultivation and related activates.
(C)The Natural Resources Agency shall submit a report on how funds allocated to it pursuant to Section 31013 of the Revenue and Taxation Code have been used for environmental cleanup and restoration of public and private lands that have been damaged from illegal marijuana cultivation.
(2)It is the intent of the Legislature to use the reports required by this subdivision to determine the necessity of a readjustment to the tax imposed pursuant to Part 13.5 (commencing with Section 31001) of Division 2 of the Revenue and Taxation Code.
(3)The reports required by this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
(f)A county board of supervisors or city council may adopt a resolution or ordinance to be the responsible entity for purposes of administering the unique identification program specified in subdivision (d), in which case, the county board of supervisors or city council shall designate the appropriate entity to issue the unique identifiers. Counties may designate the local agricultural commissioner, sheriff, or other appropriate entity. Cities may designate the city planning and building department, the Chief of Police, or other appropriate entity. A county, city, or city and county may charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each medical marijuana plant, in addition to any other local fees or taxes imposed by the county. Upon adoption of an ordinance or resolution by the county board of supervisors or city council, the division shall cooperate with that local jurisdiction to phase out the divisions operation of the program.
(g)This section does not apply to a qualified patient cultivating marijuana pursuant to Section 11362.5 if he or she cultivates marijuana for his or her personal medical use and does not sell, distribute, donate, or provide marijuana to any other person or entity. This section does not apply to a primary caregiver cultivating marijuana pursuant to Section 11362.5 if he or she cultivates marijuana exclusively for the personal medical use of no more than five specified qualified patients for whom he or she is the primary caregiver within the meaning of Section 11362.7 and who does not receive remuneration for these activities, except for compensation provided in full compliance with subdivision (c) of Section 11362.765. Exemption from the requirements of this section does not limit or prevent a city, county, or city and county from regulating or banning the cultivation, storage, manufacture, transport, provision, or other activity by the exempt person, or impair the enforcement of that regulation or ban.
(h)This section does not prevent a city, county, or city and county from doing any of the following:
(1)Adopting local ordinances, whether consistent or inconsistent with this section, that do either of the following:
(A)Regulate the location, operation, or establishment of a licensed medical marijuana cultivator or a person that cultivates, processes, possesses, stores, manufactures, tests, transports, distributes, or sells medical marijuana.
(B)Prohibit medical marijuana activity within its jurisdiction.
(2)Providing for the administrative, civil, or criminal enforcement of the ordinances described in paragraph (1).
(3)Enacting and enforcing other laws or ordinances pursuant to the authority granted by Section 7 of Article XI of the California Constitution.
(i)This section does not preclude a county from establishing a fee for the operation of a licensed medical marijuana cultivator within the jurisdiction of the county.
(j)This section does not preempt any local ordinance regulating or banning cultivation of medical marijuana, or otherwise prevent or limit a city, county, or city and county from adopting or enforcing a zoning ordinance or other law, ordinance, or regulation, that bans or regulates the location, operation, or establishment of an entity that cultivates medical marijuana.
SEC. 3.Part 13.5 (commencing with Section 31001) is added to Division 2 of the Revenue and Taxation Code, to read:13.5.Medical Marijuana Tax1.General Provisions and Definitions31001.This part shall known and may be cited as the Medical Marijuana Tax Law.
31002.As used in this part, the following terms have the following definitions:
(a)Marijuana means all parts of the plant Cannabis sativa L., 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. Cannabis 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. Cannabis also means the separated resin, whether crude or purified, obtained from marijuana. Without limiting the definition, cannabis also means marijuana as defined by Section 11018 of the Health and Safety Code, as enacted by Chapter 1407 of the Statutes of 1972.
(b)Marijuana flowers means the flowers of the plant specified in subdivision (a). Marijuana flowers does not include any part of the plant other than the flowers.
(c)Marijuana leaves means the leaves of the plant specified in subdivision (a). Marijuana leaves does not include any part of the plant other than the leaves.
(d)Medical marijuana tax means the tax imposed pursuant to this part.
(e)Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of marijuana.
(f)Cultivator means a person that plants, grows, cultivates, harvests, dries, cures, grades, or trims medical marijuana, or that does all or any combination of those activities.
(g)Designated entity means an entity defined by Section ___ of the Business and Professions Code, or an entity designated by the board.
(h)Immature marijuana plant means a marijuana plant with no observable flowers or buds.
(i)Medical marijuana, medical marijuana product, or marijuana product means a product containing marijuana, including, but not limited to, concentrates and extractions intended to be sold for use by medical marijuana patients in California pursuant to the Compassionate Use Act of 1996 (Section 11362.5 of the Health and Safety Code).
(j)Sale means the transfer of title or possession for consideration in any manner or by any means whatever.
2.Imposition of Tax31005.(a)A marijuana tax shall be imposed upon each cultivator and shall be collected by the designated entity at the time of distribution at the following rates:
(1)$___ per ounce on all cannabis flowers.
(2)$___ per ounce on all cannabis leaves.
(3)$___ per immature cannabis plant.
(b)The tax imposed by this section shall be measured by the quantities of cannabis flowers, cannabis leaves, and immature cannabis plants sold by any cannabis cultivator to the designated entity.
(c)The designated entity shall separately state the amount of the tax imposed under this part on the sales receipt given by the designated entity to the licensed medical marijuana cultivator at the time of sale.
(d)Any claim for exemption from the tax pursuant to this part shall be made to the board in the manner prescribed by the board.
31006.The Legislative Analysts Office shall regularly review the tax levels established under this part and make recommendations to the legislature, as appropriate, regarding adjustments that would further the goal of addressing public safety and the environmental impacts caused by the proliferation of marijuana cultivation.
3.Administration31010.(a)The board shall administer and collect the tax imposed by this part pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001) of Division 2 of the Revenue and Taxation Code) with those changes as may be necessary to conform to this section. For purposes of this part, the references in the Fee Collection Procedures Law to fee shall include the tax imposed by this part, and references to feepayer shall include a person required to pay the cannabis tax imposed by this part.
(b)The tax that is required to be collected by the designated entity, and any amount unreturned to the medical marijuana cultivator that is not owed as part of the tax, but was collected from the medical marijuana cultivator under the representation by the designated entity that it was owed as a tax, constitutes debts owed by the designated entity to the state.
(c)A medical marijuana cultivator is liable for the tax until it has been paid to the state, except that payment to the designated entity relieves the medical marijuana cultivator from further liability for the tax. Any tax collected from a medical marijuana cultivator that has not been remitted to the board shall be a debt owed to the state by the designated entity required to collect and remit the tax. This part does not impose any obligation upon the designated entity to take any legal action to enforce the collection of the tax imposed by this part.
31011.(a)The board may prescribe, adopt, and enforce regulations relating to the implementation, administration, and enforcement of this part, including, but not limited to, applicant requirements, collections, reporting, refunds, and appeals.
(b)The board may prescribe, adopt, and enforce any emergency regulations as necessary to implement this part. Any emergency regulation prescribed, adopted, or enforced pursuant to this section shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and, for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of the regulation is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, and general welfare.
31012.(a)The marijuana tax is due and payable to the board quarterly on or before the last day of the month following each calendar quarter.
(b)On or before the last day of the month following each calendar quarter, a return for the preceding calendar quarter shall be filed using electronic media with the board.
(c)Returns shall be authenticated in a form or pursuant to methods as may be prescribed by the board.
31013.(a)The Marijuana Production and Environment Mitigation Fund is hereby created in the State Treasury. The fund shall consist of all medical marijuana taxes, interest, penalties, and other amounts collected and paid to the board pursuant to this part, less payments of refunds and reimbursement to the board for expenses incurred in the administration and collection of the medical marijuana tax.
(b)Notwithstanding Section 13340 of the Government Code, all moneys deposited in the Marijuana Production and Environment Mitigation Fund are hereby continuously appropriated, without regard to fiscal years, in the following manner:
(1)Ten percent to the Division of Medical Cannabis Cultivation to administer the unique identifier program specified in Section 11362.777 of the Health and Safety Code.
(2)Thirty percent to the Division of Medical Cannabis Cultivation for disbursement to local law enforcement-related activities, state law enforcement-related activities, or both, pertaining to illegal marijuana cultivation. Funds allocated pursuant to this subparagraph shall be allocated on a competitive grant application process administered by the Division of Medical Cannabis Cultivation. The Division of Medical Cannabis Cultivation shall promulgate guidelines for the grant process as soon as administratively possible, but no later than April 1, 2016.
(3)Thirty percent to the Natural Resources Agency to fund a competitive grant program for environmental cleanup and restoration of public and private lands that have been damaged by illegal marijuana cultivation. Funds allocated pursuant to this subparagraph shall be prioritized to restoration and cleanup projects, on public or private lands, based on the level of damages that have occurred. Not less than 35 percent of the funds shall be used for these purposes related to public lands, and not less than 20 percent of the funds collected shall be used for these purposes in regard to private lands. The agency shall consult and partner with counties, cities, or cities and counties, and may partner with nonprofit organizations recognized by the California Attorney Generals office, other appropriate state agencies, and the appropriate federal entities, including, but not limited to, the United States Department of Agriculture and the United States Department of the Interior, for the purposes of awarding grants to state or local government entities and nonprofit organizations that engage in environmental cleanup and restoration. The agency shall promulgate guidelines for the grant process as soon as administratively possible, but no later than April 1, 2016.
(4)Thirty percent to the multiagency task force, the Department of Fish and Wildlife and State Water Resources Control Board pilot project to address the Environmental Impacts of Cannabis Cultivation and to respond to the damages caused by marijuana cultivation on public and private lands in California, specified in Section 13276 of the Water Code.
4.Track and Trace Process31020.The board shall adopt a system for reporting the movement of cannabis and cannabis products throughout the distribution chain. The system shall also employ secure packaging and be capable of providing information to the board. This system shall capture, at a minimum, all of the following:
(a)The amount of tax due by the designated entity.
(b)The name, address, and license number of the designated entity that remitted the tax.
(c)The name, address, and license number of the succeeding entity receiving the product.
(d)The transaction date.
(e)Any other information deemed necessary by the board for the taxation and regulation of marijuana and marijuana products.
31021.(a)The board shall submit a report to the Legislature on the total amount of revenue that was collected for the five-year period from the operative date of the tax imposed pursuant to this part. The report is due to the Legislature on or before the last day of the month commencing 180 days after the 5-year period from the operative date of the tax imposed under this part.
(b)The report required by this section shall be submitted in compliance with Section 9795 of the Government Code.
5.Operative Date and Funding31030.This part shall become operative on or after the first day of the first calendar quarter commencing more than 270 days after adequate funding has been received by the board to implement and administer this part, or on or after the first day of the first calendar quarter commencing more than 180 days from the adoption and funding of the cannabis track and trace process required pursuant to Section 31020, whichever is later. The board shall post a notice on its Internet Web site when this requirement has been satisfied.
31031.Funds for the establishment and support of the regulatory activities required pursuant to this part shall be advanced as a General Fund or special fund loan, and shall be repaid by the board from the initial proceeds from fees collected pursuant to this part or any rule or regulation adopted pursuant to this part, no later than six months after the operative date specified in Section 31030.
SEC. 4.Section 13276 is added to the Water Code, to read:13276.(a)The multiagency task force, the Department of Fish and Wildlife and State Water Resources Control Board pilot project to address the Environmental Impacts of Cannabis Cultivation, assigned to respond to the damages caused by marijuana cultivation on public and private lands in California, shall continue its enforcement efforts on a permanent basis and expand them to a statewide level to ensure the reduction of adverse impacts of marijuana cultivation on water quality and on fish and wildlife throughout the state.
(b)Each regional board shall, and the State Water Resources Control Board may, address discharges of waste resulting from medical marijuana cultivation and associated activities, including by adopting a general permit, establishing waste discharge requirements, or taking action pursuant to Section 13269. In addressing these discharges, each regional board shall include conditions to address items that include, but are not limited to, all of the following:
(c)Site development and maintenance, erosion control, and drainage features.
(d)Stream crossing installation and maintenance.
(e)Riparian and wetland protection and management.
(f)Soil disposal.
(g)Water storage and use.
(h)Irrigation runoff.
(i)Fertilizers and soil.
(j)Pesticides and herbicides.
(k)Petroleum products and other chemicals.
(l)Cultivation-related waste.
(m)Refuse and human waste.
(n)Cleanup, restoration, and mitigation.
SEC. 5.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SECTION 1.It is the intent of the Legislature to enact legislation that would establish a dedicated funding source to address environmental damages resulting from illegal cannabis cultivation.
SEC. 2.This measure shall become operative only if both Assembly Bill 266 and Senate Bill 643 of the 201516 Regular Session are enacted and become operative.
SEC. 6.SEC. 3.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to address the damage done by illegal marijuana cultivation at the earliest time possible, it is necessary that this act take effect immediately.
It is the intent of the Legislature that the multiagency task force, the Department of Fish and Wildlife and State Water Resources Control Board pilot project to address the Environmental Impacts of Cannabis Cultivation, assigned to respond to the damages caused from marijuana cultivation on public and private lands in California, will continue its enforcement efforts on a statewide level and permanent basis to ensure the reduction of the adverse impacts of marijuana cultivation on water quality and fish and wildlife throughout the state.
SEC. 2.SECTION 1.Section 11362.769 is added to the Health and Safety Code, to read:11362.769.Indoor and outdoor medical marijuana cultivation shall be conducted in accordance with state and local laws and best practices related to land conversion, grading, electricity usage, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters. State agencies, including, but not limited to, the State Board of Forestry and Fire Protection, the Department of Fish and Wildlife, the State Water Resources Control Board, the California regional water quality control boards, and traditional state law enforcement agencies shall address environmental impacts of medical marijuana cultivation and shall coordinate, when appropriate, with cities and counties and their law enforcement agencies in enforcement efforts.
SEC. 3.SEC. 2.Section 11362.777 is added to the Health and Safety Code, to read:11362.777.(a)The Division of Medical Cannabis Cultivation is established within the Department of Food and Agriculture. The division shall be administered by a person appointed by the Governor and, except as specified in subdivision (c), shall administer this section as it pertains to the cultivation of medical marijuana.
(b)(1)A person or entity shall not cultivate medical marijuana without first obtaining both of the following:
(A)A license, permit, or other entitlement entitlement, specifically permitting cultivation pursuant to these provisions, from the county, city, or city and county in which the cultivation will occur.
(B)A license issued by the state pursuant to this section.
(2)A person or entity shall not submit an application for a license issued by the state pursuant to this section unless that person or entity has received a license, permit, or other entitlement entitlement, specifically permitting cultivation pursuant to these provisions, from the county, city, or city and county in which the cultivation will occur.
(3)A person or entity shall not submit an application for a license issued by the state pursuant to this section if the proposed cultivation of marijuana will violate the provisions of any local ordinance or regulation, or if medical marijuana is prohibited by the county, city, or city and county in which the cultivation is proposed to occur. occur, either expressly or otherwise under principles of permissive zoning.
(c)(1)Except as specified in paragraph (2), and without limiting any other local regulation, a county, city, or city and county, through its current or future land use regulations or ordinance, may issue or deny a conditional permit to cultivate medical marijuana. marijuana pursuant to this section. A county, city, or city and county may inspect the intended cultivation site for suitability prior to issuing a conditional permit. After the city, county, or city and county have approved a conditional permit, the applicant shall apply for a state medical marijuana cultivation license from the division. A locally issued conditional cultivation permit shall only become active upon licensing by the division and receiving final local approval. A person shall not cultivate medical marijuana prior to obtaining both a conditional permit from the county, city, or city and county and a state medical marijuana cultivation license from the division.
(2)If a county, city, or city and county does not have land use regulations or ordinances pertaining to regulating or prohibiting the cultivation of marijuana, does not have a local cultivation permit process in place, marijuana, either expressly or otherwise under principles of permissive zoning, or chooses not to administer a conditional permit program, program pursuant to this section, then commencing March 1, 2016, the division shall be the sole licensing authority for medical marijuana cultivation applicants in that county, city, or city and county.
(d)(1)The division, in consultation with, but not limited to, the State Water Resources Control Board and the Department of Fish and Wildlife, shall implement a unique identification program for medical marijuana. In implementing the program, the division shall consider issues, including, but not limited to, water use and environmental impacts. In implementing the program, the division shall ensure that individual and cumulative effects of water diversion and discharge associated with cultivation do not affect the instream flows needed for fish spawning, migration, and rearing, and the flows needed to maintain natural flow variability. The division shall ensure that cultivation will not negatively impact springs, riparian wetlands, and aquatic habitats.
(2)The division shall establish a program for the identification of permitted medical marijuana plants at a cultivation site during the cultivation period. The unique identifier shall be attached at the base of each plant. A unique identifier, such as, but not limited to, a zip tie, shall be issued for each medical marijuana plant.
(3)The division may charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each medical marijuana plant.
(e)(1)On and after June 1, 2016, there is hereby imposed a tax on a licensed medical marijuana cultivator at the rate of $50 per medical marijuana plant with a unique identifier. The unique identifiers shall serve as the indicator for quantity purposes of sales.
(2)A licensed medical marijuana distributor shall charge the licensed medical marijuana cultivator the amount of the tax as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the medical marijuana distributor.
(3)The licensed medical marijuana distributor shall collect the tax from the licensed medical marijuana cultivator at the time of sale, and may retain reimbursement pursuant to regulations that shall be approved by the State Board of Equalization before June 1, 2016, for startup costs associated with the collection of the tax, to be taken on the first return or next consecutive returns until the entire reimbursement amount is retained.
(4)The licensed medical marijuana distributor shall separately state the amount of the tax imposed under this subdivision on the sales receipt given by the licensed medical marijuana distributor to the licensed medical marijuana cultivator at the time of sale.
(5)The State Board of Equalization shall administer and collect the tax imposed by this subdivision pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001) of Division 2 of the Revenue and Taxation Code) with those changes as may be necessary to conform to this section. For purposes of this subdivision, the references in the Fee Collection Procedures Law to fee shall include the tax imposed by this subdivision, and references to feepayer shall include the licensed medical marijuana distributor.
(6)(A)The tax is required to be collected by a licensed medical marijuana distributor and any amount unreturned to the licensed medical marijuana cultivator who paid an amount in excess of the tax, but was collected from the licensed medical marijuana cultivator under the representation by the licensed medical marijuana distributor that it was owed as a tax, constitutes debts owed by the licensed medical marijuana distributor to this state.
(B)A licensed medical marijuana cultivator is liable for the tax until it has been paid to the state, except that payment to a licensed medical marijuana distributor relieves the licensed medical marijuana cultivator from further liability for the tax. Any tax collected from a licensed medical marijuana cultivator that has not been remitted to the State Board of Equalization shall be a debt owed to the state by the licensed medical marijuana distributor required to collect and remit the tax. This subdivision does not impose any obligation upon a licensed medical marijuana distributor to take any legal action to enforce the collection of the tax imposed by this subdivision.
(7)The State Board of Equalization may prescribe, adopt, and enforce regulations relating to the administration and enforcement of this subdivision, including, but not limited to, collections, reporting, refunds, and appeals. The State Board of Equalization may consult with the division, and the division shall provide to the board any information necessary for the proper administration of the tax imposed by this subdivision.
(8)(A)The tax imposed by this subdivision is due and payable to the State Board of Equalization quarterly on or before the last day of the month next succeeding each quarterly period.
(B)On or before the last day of the month following each quarterly period, a return for the preceding quarterly period shall be filed with the State Board of Equalization using electronic media, in the form prescribed by the State Board of Equalization. Returns shall be authenticated in a form or pursuant to methods, as prescribed by the State Board of Equalization.
(9)(A)A licensed medical marijuana cultivator required to pay the tax imposed under this subdivision shall register with the State Board of Equalization. Every application for registration shall be made in a form prescribed by the State Board of Equalization and shall set forth the name under which the applicant transacts or intends to transact business, the location of the persons place or places of business, and any other information that the State Board of Equalization may require. An application for registration shall be authenticated in a form or pursuant to methods as may be prescribed by the State Board of Equalization.
(B)An application for registration filed pursuant to this section may be filed using electronic media as prescribed by the State Board of Equalization. Electronic media includes, but is not limited to, computer modem, magnetic media, optical disc, facsimile machine, or telephone.
(10)A licensed medical marijuana cultivator shall sell his or her medical marijuana products only to a licensed medical marijuana distributor and shall not make any other sales of medical marijuana. Medical marijuana plants that do not contain a unique identifier shall not be sold by a licensed cultivator to a licensed distributor.
(11)The State Board of Equalization shall deposit all revenues, less refunds, collected pursuant to this subdivision into the Marijuana Production and Environment Mitigation Fund, which is hereby created in the State Treasury. Notwithstanding Section 13340 of the Government Code, all moneys deposited in the fund are hereby continuously appropriated, without regard to fiscal years, to the State Board of Equalization for the purposes of this section, to be allocated by the board in the following manner:
(A)Five dollars ($5) shall go to the division to administer the unique identifier program described in subdivision (d).
(B)Fifteen dollars ($15) shall go to the division for disbursement to local law enforcement-related activities, state law enforcement-related activities, or both, pertaining to illegal marijuana cultivation. Funds allocated pursuant to this subparagraph shall be allocated on a competitive grant application process administered by the division. The division shall promulgate guidelines for the grant process as soon as administratively possible, but no later than April 1, 2016.
(C)Fifteen dollars ($15) shall go to the Natural Resources Agency to fund a competitive grant program for environmental cleanup and restoration of public and private lands that have been damaged from illegal marijuana cultivation. Funds allocated pursuant to this subparagraph shall be prioritized to restoration and cleanup projects, on public or private lands, based on the level of damages that have occurred. Not less than 35 percent of the funds shall be used for these purposes related to public lands, and not less than 20 percent of the funds collected shall be used for these purposes in regard to private lands. The agency shall consult and partner with counties, cities, or cities and counties, and may partner with nonprofit organizations recognized by the California Attorney Generals office, other appropriate state agencies, and the appropriate federal entities within the United State Department of Interior, for the purposes of awarding grants to state or local government entities and nonprofit organizations that engage in environmental cleanup and restoration. The agency shall promulgate guidelines for the grant process as soon as administratively possible, but no later than April 1, 2016.
(D)Fifteen dollars ($15) shall go to the multiagency task force, the Department of Fish and Wildlife, and the State Water Resources Control Board project to address the Environmental Impacts of Cannabis Cultivation and to respond to the damages caused from marijuana cultivation on public and private lands in California.
(f)
(e)(1)On or before January 1, 2021, the following entities shall submit a report to the Legislature:
(A)The State Board of Equalization shall submit a report on the total amount of revenue that was collected over the five-year time period from the tax imposed pursuant to subdivision (e).
(B)
(A)The multiagency task force, the Department of Fish and Wildlife, and the State Water Resources Control Board, shall submit a report on the project to address the Environmental Impacts of Cannabis Cultivation and how funds allocated to those entities pursuant to subdivision (e) Section 31013 of the Revenue and Taxation Code have been used for those purposes.
(C)
(B)The Department of Justice shall submit a report on how local and state law enforcement agencies have used funds allocated pursuant to subdivision (e) Section 31013 of the Revenue and Taxation Code to address illegal marijuana cultivation and related activates.
(D)
(C)The Natural Resources Agency shall submit a report on how funds allocated to it pursuant to subdivision (e) Section 31013 of the Revenue and Taxation Code have been used for environmental cleanup and restoration of public and private lands that have been damaged from illegal marijuana cultivation.
(2)It is the intent of the Legislature to use the reports required by this subdivision to determine the necessity of a readjustment to the tax imposed pursuant to subdivision (e). Part 13.5 (commencing with Section 31001) of Division 2 of the Revenue and Taxation Code.
(3)The reports required by this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
(g)(1)Except as specified in paragraph (3), no later than March 1, 2016, a county, city, or city and county
(f)A county board of supervisors or city council may adopt a resolution or ordinance to be the responsible entity for purposes of administering the unique identification program specified in subdivision (d), in which case, the county, city, or city and county county board of supervisors or city council shall designate the appropriate entity to issue the unique identifiers. Counties may designate the local agricultural commissioner, sheriff, or other appropriate entity. Cities may designate the city planning and building department, the Chief of Police, or other appropriate entity. A county, city, or city and county may charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each medical marijuana plant. plant, in addition to any other local fees or taxes imposed by the county. Upon adoption of an ordinance or resolution by the county board of supervisors or city council, the division shall cooperate with that local jurisdiction to phase out the divisions operation of the program.
(2)Licensed cultivators and licensed distributors shall comply with subdivision (e) in a county, city, or city and county that elects to administer the unique identification program pursuant to paragraph (1).
(3)If a county, city, or city and county decides at a later date to be the responsible entity for purposes of administering the unique identification program specified in subdivision (d), the county, city, or city and county may adopt an ordinance or resolution to participate in the provisions of this subdivision at a later date, but no later than July 1, 2018, in which case the division shall cooperate with that local jurisdiction to phase out the divisions operation of the program.
(h)The unique identifier program established pursuant to this section does not apply to a county, city, or city and county that has an existing ordinance pertaining to the cultivation of marijuana that provides for the identification of individual plants during the cultivation period. A county, city, or city and county may choose to opt in to the unique identifier program administered by the division to be eligible for funds pursuant to subdivision (e). A county, city, or city and county that does not participate in a unique identifier program pursuant to this section shall not be eligible for funds pursuant to subdivision (e).
(i)
(g)This section does not apply to a qualified patient cultivating marijuana pursuant to Section 11362.5 if he or she cultivates marijuana for his or her personal medical use and does not sell, distribute, donate, or provide marijuana to any other person or entity. This section does not apply to a primary caregiver cultivating marijuana pursuant to Section 11362.5 if he or she cultivates marijuana exclusively for the personal medical use of no more than five specified qualified patients for whom he or she is the primary caregiver within the meaning of Section 11362.7 and who does not receive remuneration for these activities, except for compensation provided in full compliance with subdivision (c) of Section 11362.765. This section does not preclude a county, city, or city and county from regulating or banning the cultivation, possession, storage, manufacture, transport, provision, distribution, donation, or sale of marijuana, or any other activity, by a person specified in this subdivision, or impair the enforcement of the same. Exemption from the requirements of this section does not limit or prevent a city, county, or city and county from regulating or banning the cultivation, storage, manufacture, transport, provision, or other activity by the exempt person, or impair the enforcement of that regulation or ban.
(h)This section does not prevent a city, county, or city and county from doing any of the following:
(1)Adopting local ordinances, whether consistent or inconsistent with this section, that do either of the following:
(A)Regulate the location, operation, or establishment of a licensed medical marijuana cultivator or a person that cultivates, processes, possesses, stores, manufactures, tests, transports, distributes, or sells medical marijuana.
(B)Prohibit medical marijuana activity within its jurisdiction.
(2)Providing for the administrative, civil, or criminal enforcement of the ordinances described in paragraph (1).
(3)Enacting and enforcing other laws or ordinances pursuant to the authority granted by Section 7 of Article XI of the California Constitution.
(i)This section does not preclude a county from establishing a fee for the operation of a licensed medical marijuana cultivator within the jurisdiction of the county.
(j)This section does not preempt any local ordinance regulating or banning cultivation of medical marijuana, or otherwise prevent or limit a city, county, or city and county from adopting or enforcing a zoning ordinance or other law, ordinance, or regulation, that bans or regulates the location, operation, or establishment of an entity that cultivates medical marijuana.
SEC. 3.Part 13.5 (commencing with Section 31001) is added to Division 2 of the Revenue and Taxation Code, to read:13.5.Medical Marijuana Tax1.General Provisions and Definitions31001.This part shall known and may be cited as the Medical Marijuana Tax Law.
31002.As used in this part, the following terms have the following definitions:
(a)Marijuana means all parts of the plant Cannabis sativa L., 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. Cannabis 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. Cannabis also means the separated resin, whether crude or purified, obtained from marijuana. Without limiting the definition, cannabis also means marijuana as defined by Section 11018 of the Health and Safety Code, as enacted by Chapter 1407 of the Statutes of 1972.
(b)Marijuana flowers means the flowers of the plant specified in subdivision (a). Marijuana flowers does not include any part of the plant other than the flowers.
(c)Marijuana leaves means the leaves of the plant specified in subdivision (a). Marijuana leaves does not include any part of the plant other than the leaves.
(d)Medical marijuana tax means the tax imposed pursuant to this part.
(e)Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of marijuana.
(f)Cultivator means a person that plants, grows, cultivates, harvests, dries, cures, grades, or trims medical marijuana, or that does all or any combination of those activities.
(g)Designated entity means an entity defined by Section ___ of the Business and Professions Code, or an entity designated by the board.
(h)Immature marijuana plant means a marijuana plant with no observable flowers or buds.
(i)Medical marijuana, medical marijuana product, or marijuana product means a product containing marijuana, including, but not limited to, concentrates and extractions intended to be sold for use by medical marijuana patients in California pursuant to the Compassionate Use Act of 1996 (Section 11362.5 of the Health and Safety Code).
(j)Sale means the transfer of title or possession for consideration in any manner or by any means whatever.
2.Imposition of Tax31005.(a)A marijuana tax shall be imposed upon each cultivator and shall be collected by the designated entity at the time of distribution at the following rates:
(1)$___ per ounce on all cannabis flowers.
(2)$___ per ounce on all cannabis leaves.
(3)$___ per immature cannabis plant.
(b)The tax imposed by this section shall be measured by the quantities of cannabis flowers, cannabis leaves, and immature cannabis plants sold by any cannabis cultivator to the designated entity.
(c)The designated entity shall separately state the amount of the tax imposed under this part on the sales receipt given by the designated entity to the licensed medical marijuana cultivator at the time of sale.
(d)Any claim for exemption from the tax pursuant to this part shall be made to the board in the manner prescribed by the board.
31006.The Legislative Analysts Office shall regularly review the tax levels established under this part and make recommendations to the legislature, as appropriate, regarding adjustments that would further the goal of addressing public safety and the environmental impacts caused by the proliferation of marijuana cultivation.
3.Administration31010.(a)The board shall administer and collect the tax imposed by this part pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001) of Division 2 of the Revenue and Taxation Code) with those changes as may be necessary to conform to this section. For purposes of this part, the references in the Fee Collection Procedures Law to fee shall include the tax imposed by this part, and references to feepayer shall include a person required to pay the cannabis tax imposed by this part.
(b)The tax that is required to be collected by the designated entity, and any amount unreturned to the medical marijuana cultivator that is not owed as part of the tax, but was collected from the medical marijuana cultivator under the representation by the designated entity that it was owed as a tax, constitutes debts owed by the designated entity to the state.
(c)A medical marijuana cultivator is liable for the tax until it has been paid to the state, except that payment to the designated entity relieves the medical marijuana cultivator from further liability for the tax. Any tax collected from a medical marijuana cultivator that has not been remitted to the board shall be a debt owed to the state by the designated entity required to collect and remit the tax. This part does not impose any obligation upon the designated entity to take any legal action to enforce the collection of the tax imposed by this part.
31011.(a)The board may prescribe, adopt, and enforce regulations relating to the implementation, administration, and enforcement of this part, including, but not limited to, applicant requirements, collections, reporting, refunds, and appeals.
(b)The board may prescribe, adopt, and enforce any emergency regulations as necessary to implement this part. Any emergency regulation prescribed, adopted, or enforced pursuant to this section shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and, for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of the regulation is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, and general welfare.
31012.(a)The marijuana tax is due and payable to the board quarterly on or before the last day of the month following each calendar quarter.
(b)On or before the last day of the month following each calendar quarter, a return for the preceding calendar quarter shall be filed using electronic media with the board.
(c)Returns shall be authenticated in a form or pursuant to methods as may be prescribed by the board.
31013.(a)The Marijuana Production and Environment Mitigation Fund is hereby created in the State Treasury. The fund shall consist of all medical marijuana taxes, interest, penalties, and other amounts collected and paid to the board pursuant to this part, less payments of refunds and reimbursement to the board for expenses incurred in the administration and collection of the medical marijuana tax.
(b)Notwithstanding Section 13340 of the Government Code, all moneys deposited in the Marijuana Production and Environment Mitigation Fund are hereby continuously appropriated, without regard to fiscal years, in the following manner:
(1)Ten percent to the Division of Medical Cannabis Cultivation to administer the unique identifier program specified in Section 11362.777 of the Health and Safety Code.
(2)Thirty percent to the Division of Medical Cannabis Cultivation for disbursement to local law enforcement-related activities, state law enforcement-related activities, or both, pertaining to illegal marijuana cultivation. Funds allocated pursuant to this subparagraph shall be allocated on a competitive grant application process administered by the Division of Medical Cannabis Cultivation. The Division of Medical Cannabis Cultivation shall promulgate guidelines for the grant process as soon as administratively possible, but no later than April 1, 2016.
(3)Thirty percent to the Natural Resources Agency to fund a competitive grant program for environmental cleanup and restoration of public and private lands that have been damaged by illegal marijuana cultivation. Funds allocated pursuant to this subparagraph shall be prioritized to restoration and cleanup projects, on public or private lands, based on the level of damages that have occurred. Not less than 35 percent of the funds shall be used for these purposes related to public lands, and not less than 20 percent of the funds collected shall be used for these purposes in regard to private lands. The agency shall consult and partner with counties, cities, or cities and counties, and may partner with nonprofit organizations recognized by the California Attorney Generals office, other appropriate state agencies, and the appropriate federal entities, including, but not limited to, the United States Department of Agriculture and the United States Department of the Interior, for the purposes of awarding grants to state or local government entities and nonprofit organizations that engage in environmental cleanup and restoration. The agency shall promulgate guidelines for the grant process as soon as administratively possible, but no later than April 1, 2016.
(4)Thirty percent to the multiagency task force, the Department of Fish and Wildlife and State Water Resources Control Board pilot project to address the Environmental Impacts of Cannabis Cultivation and to respond to the damages caused by marijuana cultivation on public and private lands in California, specified in Section 13276 of the Water Code.
4.Track and Trace Process31020.The board shall adopt a system for reporting the movement of cannabis and cannabis products throughout the distribution chain. The system shall also employ secure packaging and be capable of providing information to the board. This system shall capture, at a minimum, all of the following:
(a)The amount of tax due by the designated entity.
(b)The name, address, and license number of the designated entity that remitted the tax.
(c)The name, address, and license number of the succeeding entity receiving the product.
(d)The transaction date.
(e)Any other information deemed necessary by the board for the taxation and regulation of marijuana and marijuana products.
31021.(a)The board shall submit a report to the Legislature on the total amount of revenue that was collected for the five-year period from the operative date of the tax imposed pursuant to this part. The report is due to the Legislature on or before the last day of the month commencing 180 days after the 5-year period from the operative date of the tax imposed under this part.
(b)The report required by this section shall be submitted in compliance with Section 9795 of the Government Code.
5.Operative Date and Funding31030.This part shall become operative on or after the first day of the first calendar quarter commencing more than 270 days after adequate funding has been received by the board to implement and administer this part, or on or after the first day of the first calendar quarter commencing more than 180 days from the adoption and funding of the cannabis track and trace process required pursuant to Section 31020, whichever is later. The board shall post a notice on its Internet Web site when this requirement has been satisfied.
31031.Funds for the establishment and support of the regulatory activities required pursuant to this part shall be advanced as a General Fund or special fund loan, and shall be repaid by the board from the initial proceeds from fees collected pursuant to this part or any rule or regulation adopted pursuant to this part, no later than six months after the operative date specified in Section 31030.
SEC. 4.Section 13276 is added to the Water Code, to read:13276.(a)The multiagency task force, the Department of Fish and Wildlife and State Water Resources Control Board pilot project to address the Environmental Impacts of Cannabis Cultivation, assigned to respond to the damages caused by marijuana cultivation on public and private lands in California, shall continue its enforcement efforts on a permanent basis and expand them to a statewide level to ensure the reduction of adverse impacts of marijuana cultivation on water quality and on fish and wildlife throughout the state.
Each
(b)Each regional board shall, and the State Water Resources Control Board may, address discharges of waste resulting from medical marijuana cultivation and associated activities, including by adopting a general permit, establishing waste discharge requirements, or taking action pursuant to Section 13269. In addressing these discharges, each regional board shall include conditions to address items that include, but are not limited to, all of the following:
(a)
(c)Site development and maintenance, erosion control, and drainage features.
(b)
(d)Stream crossing installation and maintenance.
(c)
(e)Riparian and wetland protection and management.
(d)
(f)Soil disposal.
(e)
(g)Water storage and use.
(f)
(h)Irrigation runoff.
(g)
(i)Fertilizers and soil.
(h)
(j)Pesticides and herbicides.
(i)
(k)Petroleum products and other chemicals.
(j)
(l)Cultivation-related waste.
(k)
(m)Refuse and human waste.
(l)
(n)Cleanup, restoration, and mitigation.
SEC. 5.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 6.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to address the damage done by illegal marijuana cultivation at the earliest time possible, it is necessary that this act take effect immediately.
It is the intent of the Legislature that the multiagency task force, the Department of Fish and Wildlife and State Water Resources Control Board pilot project to address the Environmental Impacts of Cannabis Cultivation, assigned to respond to the damages caused from marijuana cultivation on public and private lands in California, will continue their its enforcement efforts on a statewide level and permanent status basis to ensure the reduction of the adverse impacts of marijuana cultivation on water quality and fish and wildlife throughout the state.
SEC. 2.Section 11362.769 is added to the Health and Safety Code, to read:11362.769.Indoor and outdoor medical marijuana cultivation shall be conducted in accordance with state and local laws and best practices related to land conversion, grading, electricity usage, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters. State agencies, including, but not limited to, the State Board of Forestry and Fire Protection, the Department of Fish and Wildlife, the State Water Resources Control Board, the California regional water quality control boards, and traditional state law enforcement agencies shall address environmental impacts of medical marijuana cultivation and shall coordinate, when appropriate, with cities and counties and their law enforcement agencies in enforcement efforts.
SEC. 3.Section 11362.777 is added to the Health and Safety Code, to read:11362.777.(a)A county, city, or city and county may choose not to be the responsible entity for purposes of implementing this section. No later than July 1, 2016, a county, city, or city and county shall adopt an ordinance to implement this section, or shall, by resolution, opt out of the requirements of this section. The Governor shall designate an appropriate state agency to implement this section in each county, city, or city and county that adopts a resolution to opt out of the requirements of this section. For purposes of this section, designated state agency means the state agency designated by the Governor to implement this program in a county, city, or city and county that has chosen not to be responsible for implementing the requirements of this section.
(b)Except as provided in subdivision (d), all qualified patients and designated primary caregivers cultivating marijuana pursuant to Section 11362.5, and all 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 collectively or cooperatively to cultivate marijuana for medical purposes, are subject to all of the following:
(1)Each patient, primary caregiver, collective, or cooperative that cultivates marijuana shall obtain a permit to cultivate marijuana from the sheriff, chief of police, or other entity designated by the county, city, city and county, or from the designated state agency. Each permit shall specify the location being permitted and the number of plants that may be grown at that location. The county, city, city and county, or the designated state agency may charge a fee in an amount sufficient to cover the reasonable cost of issuing the permit and carrying out the requirements of this section. The permits authorized by this section shall be renewed annually.
(2)Each county, city, or city and county shall establish the number of plants that may be cultivated on an outdoor parcel or at an indoor facility. Except for cultivation at a residential home pursuant to paragraph (5), cultivation shall only be permitted in areas that are zoned specifically for the cultivation of marijuana. In a county, city, or city and county where the requirements of this section are being implemented by the designated state agency, the maximum number of plants that may be cultivated at any given site shall not exceed 99 plants. The county, city, city and county, or designated state entity may set a maximum limit on the square footage that may be cultivated at a single location.
(3)Marijuana cultivated outdoors shall not be cultivated within 100 feet of any occupied legal residential home or within 100 feet of a school offering kindergarten and grades 1 to 12, inclusive, education. A county, city, or city and county may increase this distance, not to exceed one mile. All outdoor cultivation sites shall be within a secure fence that is not less than six feet in height and that fully encloses the cultivation area. All marijuana cultivated outdoors shall be out of the publics view. Use of light assistance for outdoor cultivation shall not exceed a maximum of 1,200 watts of lighting capacity per 100 square feet of cultivated area.
(4)Indoor cultivation of marijuana shall not occur within 100 feet of a school offering kindergarten and grades 1 to 12, inclusive, education.
(5)Marijuana cultivated at a residential home shall not exceed the number of plants per home established by the county, city, or city and county. In a county, city, or city and county where the requirements of this section are being implemented by the designated state agency, the maximum number of plants that may be cultivated at a residential home shall not exceed six plants unless the county, city, or city and county adopts an ordinance permitting a higher number. Cultivation of marijuana that exceeds the six plants or the number of plants per home established by the county, city, or city and county shall be conducted in areas specifically zoned for the cultivation of marijuana. Cultivation of marijuana at a residential home shall not occur within 100 feet of a school offering kindergarten and grades 1 to 12, inclusive, education. A county, city, or city and county may increase this distance, not to exceed one mile.
(6)All buildings where marijuana is cultivated or stored shall be properly secured to prevent unauthorized entry.
(7)A county, city, city and county, or the designated state agency shall establish a program for the identification of permitted medical marijuana plants at a cultivation site during the cultivation period. A county, city, or city and county may designate the sheriff or chief of police to issue a unique identifier, such as, but not limited to, a zip tie. The unique identifier shall be attached at the base of each plant. The county, city, city and county, or designated state agency may charge a fee to cover the reasonable costs of issuing the unique identifier, monitoring, tracking, and inspecting the plants, and for enforcing the requirements of Section 11362.769.
(8)A copy of a current and valid state-issued medical marijuana ID card or physician recommendation shall be displayed at all cultivation sites in a manner that allows law enforcement officers to see the card or recommendation without entering a building or fenced area.
(c)A county, city, city and county, or the designated state agency may revoke or suspend a permit, deny the reissuance of a permit, or impose fines for a violation of this section. A county may also abate a violation of this section through the abatement process established by Section 25845 of the Government Code and a city may declare what constitutes a nuisance by ordinance pursuant to Section 38771 of the Government Code. The county, city, or city and county may set maximum noise levels specifically related to the cultivation of marijuana.
(d)This section does not apply to a qualified patient cultivating marijuana pursuant to Section 11362.5 if he or she cultivates marijuana for his or her personal medical use and does not sell, distribute, donate, or provide marijuana to any other person or entity. This section does not apply to a primary caregiver cultivating marijuana pursuant to Section 11362.5 if he or she cultivates marijuana exclusively for the personal medical use of no more than five specified qualified patients for whom he or she is the primary caregiver within the meaning of Section 11362.7 and who does not receive remuneration for these activities, except for compensation provided in full compliance with subdivision (c) of Section 11362.765. This section does not preclude a county, city, or city and county from regulating or banning the cultivation, possession, storage, manufacture, transport, provision, distribution, donation, or sale of marijuana, or any other activity, by a person specified in this subdivision, or impair the enforcement of the same.
(e)This section does not apply to a county, city, or city and county that has an existing ordinance pertaining to the cultivation of marijuana, unless the county, city, or city and county adopts an ordinance to participate in the provisions of this section.
(f)A county, city, or city and county that opts out of the requirements of this section pursuant to subdivision (a) may adopt an ordinance to participate in the provisions of this section at a later date, in which case the designated state agency shall cooperate with that local jurisdiction to phase out the designated state agencys operation of the program.
SEC. 3.Section 11362.777 is added to the Health and Safety Code, to read:11362.777.(a)The Division of Medical Cannabis Cultivation is established within the Department of Food and Agriculture. The division shall be administered by a person appointed by the Governor and, except as specified in subdivision (c), shall administer this section as it pertains to the cultivation of medical marijuana.
(b)(1)A person or entity shall not cultivate medical marijuana without first obtaining both of the following:
(A)A license, permit, or other entitlement from the county, city, or city and county in which the cultivation will occur.
(B)A license issued by the state pursuant to this section.
(2)A person or entity shall not submit an application for a license issued by the state pursuant to this section unless that person or entity has received a license, permit, or other entitlement from the county, city, or city and county in which the cultivation will occur.
(3)A person or entity shall not submit an application for a license issued by the state pursuant to this section if medical marijuana is prohibited by the county, city, or city and county in which the cultivation is proposed to occur.
(c)(1)Except as specified in paragraph (2), a county, city, or city and county, through its current or future land use regulations or ordinance, may issue or deny a conditional permit to cultivate medical marijuana. A county, city, or city and county may inspect the intended cultivation site for suitability prior to issuing a conditional permit. After the city, county, or city and county have approved a conditional permit, the applicant shall apply for a state medical marijuana cultivation license from the division. A locally issued conditional cultivation permit shall only become active upon licensing by the division and receiving final local approval. A person shall not cultivate medical marijuana prior to obtaining both a conditional permit from the county, city, or city and county and a state medical marijuana cultivation license from the division.
(2)If a county, city, or city and county does not have land use regulations or ordinances pertaining to the cultivation of marijuana, does not have a local cultivation permit process in place, or chooses not to administer a conditional permit program, then commencing March 1, 2016, the division shall be the sole licensing authority for medical marijuana cultivation applicants in that county, city, or city and county.
(d)(1)The division, in consultation with, but not limited to, the State Water Resources Control Board and the Department of Fish and Wildlife, shall implement a unique identification program for medical marijuana. In implementing the program, the division shall consider issues, including, but not limited to, water use and environmental impacts.
(2)The division shall establish a program for the identification of permitted medical marijuana plants at a cultivation site during the cultivation period. The unique identifier shall be attached at the base of each plant. A unique identifier, such as, but not limited to, a zip tie, shall be issued for each medical marijuana plant.
(3)The division may charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each medical marijuana plant.
(e)(1)On and after June 1, 2016, there is hereby imposed a tax on a licensed medical marijuana cultivator at the rate of $50 per medical marijuana plant with a unique identifier. The unique identifiers shall serve as the indicator for quantity purposes of sales.
(2)A licensed medical marijuana distributor shall charge the licensed medical marijuana cultivator the amount of the tax as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the medical marijuana distributor.
(3)The licensed medical marijuana distributor shall collect the tax from the licensed medical marijuana cultivator at the time of sale, and may retain reimbursement pursuant to regulations that shall be approved by the State Board of Equalization before June 1, 2016, for startup costs associated with the collection of the tax, to be taken on the first return or next consecutive returns until the entire reimbursement amount is retained.
(4)The licensed medical marijuana distributor shall separately state the amount of the tax imposed under this subdivision on the sales receipt given by the licensed medical marijuana distributor to the licensed medical marijuana cultivator at the time of sale.
(5)The State Board of Equalization shall administer and collect the tax imposed by this subdivision pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001) of Division 2 of the Revenue and Taxation Code) with those changes as may be necessary to conform to this section. For purposes of this subdivision, the references in the Fee Collection Procedures Law to fee shall include the tax imposed by this subdivision, and references to feepayer shall include the licensed medical marijuana distributor.
(6)(A)The tax is required to be collected by a licensed medical marijuana distributor and any amount unreturned to the licensed medical marijuana cultivator who paid an amount in excess of the tax, but was collected from the licensed medical marijuana cultivator under the representation by the licensed medical marijuana distributor that it was owed as a tax, constitutes debts owed by the licensed medical marijuana distributor to this state.
(B)A licensed medical marijuana cultivator is liable for the tax until it has been paid to the state, except that payment to a licensed medical marijuana distributor relieves the licensed medical marijuana cultivator from further liability for the tax. Any tax collected from a licensed medical marijuana cultivator that has not been remitted to the State Board of Equalization shall be a debt owed to the state by the licensed medical marijuana distributor required to collect and remit the tax. This subdivision does not impose any obligation upon a licensed medical marijuana distributor to take any legal action to enforce the collection of the tax imposed by this subdivision.
(7)The State Board of Equalization may prescribe, adopt, and enforce regulations relating to the administration and enforcement of this subdivision, including, but not limited to, collections, reporting, refunds, and appeals. The State Board of Equalization may consult with the division, and the division shall provide to the board any information necessary for the proper administration of the tax imposed by this subdivision.
(8)(A)The tax imposed by this subdivision is due and payable to the State Board of Equalization quarterly on or before the last day of the month next succeeding each quarterly period.
(B)On or before the last day of the month following each quarterly period, a return for the preceding quarterly period shall be filed with the State Board of Equalization using electronic media, in the form prescribed by the State Board of Equalization. Returns shall be authenticated in a form or pursuant to methods, as prescribed by the State Board of Equalization.
(9)(A)A licensed medical marijuana cultivator required to pay the tax imposed under this subdivision shall register with the State Board of Equalization. Every application for registration shall be made in a form prescribed by the State Board of Equalization and shall set forth the name under which the applicant transacts or intends to transact business, the location of the persons place or places of business, and any other information that the State Board of Equalization may require. An application for registration shall be authenticated in a form or pursuant to methods as may be prescribed by the State Board of Equalization.
(B)An application for registration filed pursuant to this section may be filed using electronic media as prescribed by the State Board of Equalization. Electronic media includes, but is not limited to, computer modem, magnetic media, optical disc, facsimile machine, or telephone.
(10)A licensed medical marijuana cultivator shall sell his or her medical marijuana products only to a licensed medical marijuana distributor and shall not make any other sales of medical marijuana. Medical marijuana plants that do not contain a unique identifier shall not be sold by a licensed cultivator to a licensed distributor.
(11)The State Board of Equalization shall deposit all revenues, less refunds, collected pursuant to this subdivision into the Marijuana Production and Environment Mitigation Fund, which is hereby created in the State Treasury. Notwithstanding Section 13340 of the Government Code, all moneys deposited in the fund are hereby continuously appropriated, without regard to fiscal years, to the State Board of Equalization for the purposes of this section, to be allocated by the board in the following manner:
(A)Five dollars ($5) shall go to the division to administer the unique identifier program described in subdivision (d).
(B)Fifteen dollars ($15) shall go to the division for disbursement to local law enforcement-related activities, state law enforcement-related activities, or both, pertaining to illegal marijuana cultivation. Funds allocated pursuant to this subparagraph shall be allocated on a competitive grant application process administered by the division. The division shall promulgate guidelines for the grant process as soon as administratively possible, but no later than April 1, 2016.
(C)Fifteen dollars ($15) shall go to the Natural Resources Agency to fund a competitive grant program for environmental cleanup and restoration of public and private lands that have been damaged from illegal marijuana cultivation. Funds allocated pursuant to this subparagraph shall be prioritized to restoration and cleanup projects, on public or private lands, based on the level of damages that have occurred. Not less than 35 percent of the funds shall be used for these purposes related to public lands, and not less than 20 percent of the funds collected shall be used for these purposes in regard to private lands. The agency shall consult and partner with counties, cities, or cities and counties, and may partner with nonprofit organizations recognized by the California Attorney Generals office, other appropriate state agencies, and the appropriate federal entities within the United State Department of Interior, for the purposes of awarding grants to state or local government entities and nonprofit organizations that engage in environmental cleanup and restoration. The agency shall promulgate guidelines for the grant process as soon as administratively possible, but no later than April 1, 2016.
(D)Fifteen dollars ($15) shall go to the multiagency task force, the Department of Fish and Wildlife, and the State Water Resources Control Board project to address the Environmental Impacts of Cannabis Cultivation and to respond to the damages caused from marijuana cultivation on public and private lands in California.
(f)(1)On or before January 1, 2021, the following entities shall submit a report to the Legislature:
(A)The State Board of Equalization shall submit a report on the total amount of revenue that was collected over the five-year time period from the tax imposed pursuant to subdivision (e).
(B)The multiagency task force, the Department of Fish and Wildlife, and the State Water Resources Control Board, shall submit a report on the project to address the Environmental Impacts of Cannabis Cultivation and how funds allocated to those entities pursuant to subdivision (e) have been used for those purposes.
(C)The Department of Justice shall submit a report on how local and state law enforcement agencies have used funds allocated pursuant to subdivision (e) to address illegal marijuana cultivation and related activates.
(D)The Natural Resources Agency shall submit a report on how funds allocated to it pursuant to subdivision (e) have been used for environmental cleanup and restoration of public and private lands that have been damaged from illegal marijuana cultivation.
(2)It is the intent of the Legislature to use the reports required by this subdivision to determine the necessity of a readjustment to the tax imposed pursuant to subdivision (e).
(3)The reports required by this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
(g)(1)Except as specified in paragraph (3), no later than March 1, 2016, a county, city, or city and county may adopt a resolution or ordinance to be the responsible entity for purposes of administering the unique identification program specified in subdivision (d), in which case, the county, city, or city and county shall designate the appropriate entity to issue the unique identifiers. Counties may designate the local agricultural commissioner, sheriff, or other appropriate entity. Cities may designate the city planning and building department, the Chief of Police, or other appropriate entity. A county, city, or city and county may charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each medical marijuana plant.
(2)Licensed cultivators and licensed distributors shall comply with subdivision (e) in a county, city, or city and county that elects to administer the unique identification program pursuant to paragraph (1).
(3)If a county, city, or city and county decides at a later date to be the responsible entity for purposes of administering the unique identification program specified in subdivision (d), the county, city, or city and county may adopt an ordinance or resolution to participate in the provisions of this subdivision at a later date, but no later than July 1, 2018, in which case the division shall cooperate with that local jurisdiction to phase out the divisions operation of the program.
(h)The unique identifier program established pursuant to this section does not apply to a county, city, or city and county that has an existing ordinance pertaining to the cultivation of marijuana that provides for the identification of individual plants during the cultivation period. A county, city, or city and county may choose to opt in to the unique identifier program administered by the division to be eligible for funds pursuant to subdivision (e). A county, city, or city and county that does not participate in a unique identifier program pursuant to this section shall not be eligible for funds pursuant to subdivision (e).
(i)This section does not apply to a qualified patient cultivating marijuana pursuant to Section 11362.5 if he or she cultivates marijuana for his or her personal medical use and does not sell, distribute, donate, or provide marijuana to any other person or entity. This section does not apply to a primary caregiver cultivating marijuana pursuant to Section 11362.5 if he or she cultivates marijuana exclusively for the personal medical use of no more than five specified qualified patients for whom he or she is the primary caregiver within the meaning of Section 11362.7 and who does not receive remuneration for these activities, except for compensation provided in full compliance with subdivision (c) of Section 11362.765. This section does not preclude a county, city, or city and county from regulating or banning the cultivation, possession, storage, manufacture, transport, provision, distribution, donation, or sale of marijuana, or any other activity, by a person specified in this subdivision, or impair the enforcement of the same.
SEC. 4.Section 13276 is added to the Water Code, to read:13276.Each regional board shall, and the State Water Resources Control Board may, address discharges of waste resulting from medical marijuana cultivation and associated activities, including by adopting a general permit, establishing waste discharge requirements, or taking action pursuant to Section 13269. In addressing these discharges, each regional board shall include conditions to address items that include, but are not limited to, all of the following:
(a)Site development and maintenance, erosion control, and drainage features.
(b)Stream crossing installation and maintenance.
(c)Riparian and wetland protection and management.
(d)Soil disposal.
(e)Water storage and use.
(f)Irrigation runoff.
(g)Fertilizers and soil.
(h)Pesticides and herbicides.
(i)Petroleum products and other chemicals.
(j)Cultivation-related waste.
(k)Refuse and human waste.
(l)Cleanup, restoration, and mitigation.
SEC. 5.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 6.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to address the damage done by illegal marijuana cultivation at the earliest time possible, it is necessary that this act take effect immediately.
It is the intent of the Legislature that the multiagency task force, the Department of Fish and Wildlife and State Water Resources Control Board pilot project to address the Environmental Impacts of Cannabis Cultivation, assigned to respond to the damages caused from marijuana cultivation on public and private lands in California, will continue their enforcement efforts on a statewide level and permanent status to ensure the reduction of the adverse impacts of marijuana cultivation on water quality and fish and wildlife throughout the state.
SEC. 2.Section 11362.769 is added to the Health and Safety Code, to read:11362.769.Indoor and outdoor medical marijuana cultivation shall be conducted in accordance with state and local laws and best practices related to land conversion, grading, electricity usage, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters. State agencies, including, but not limited to, the State Board of Forestry and Fire Protection, the Department of Fish and Wildlife, the State Water Resources Control Board, the California regional water quality control boards, and traditional state law enforcement agencies shall address environmental impacts of medical marijuana cultivation and shall coordinate, when appropriate, with cities and counties and their law enforcement agencies in enforcement efforts.
SEC. 3.Section 11362.777 is added to the Health and Safety Code, to read:11362.777.(a)A county, city, or city and county may choose not to be the responsible entity for purposes of implementing this section. No later than July 1, 2016, a county, city, or city and county shall adopt an ordinance to implement this section, or shall, by resolution, opt out of the requirements of this section. The Governor shall designate an appropriate state agency to implement this section in each county, city, or city and county that adopts a resolution to opt out of the requirements of this section. For purposes of this section, designated state agency means the state agency designated by the Governor to implement this program in a county, city, or city and county that has chosen not to be responsible for implementing the requirements of this section.
(b)Except as provided in subdivision (d), all qualified patients and designated primary caregivers cultivating marijuana pursuant to Section 11362.5, and all 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 collectively or cooperatively to cultivate marijuana for medical purposes, are subject to all of the following:
(1)Each patient, primary caregiver, collective, or cooperative that cultivates marijuana shall obtain a permit to cultivate marijuana from the sheriff, chief of police, or other entity designated by the county, city, city and county, or from the designated state agency. Each permit shall specify the location being permitted and the number of plants that may be grown at that location. The county, city, city and county, or the designated state agency may charge a fee in an amount sufficient to cover the reasonable cost of issuing the permit and carrying out the requirements of this section. The permits authorized by this section shall be renewed annually.
(2)Each county, city, or city and county shall establish the number of plants that may be cultivated on an outdoor parcel or at an indoor facility. Except for cultivation at a residential home pursuant to paragraph (5), cultivation shall only be permitted in areas that are zoned specifically for the cultivation of marijuana. In a county, city, or city and county where the requirements of this section are being implemented by the designated state agency, the maximum number of plants that may be cultivated at any given site shall not exceed 99 plants. The county, city, city and county, or designated state entity may set a maximum limit on the square footage that may be cultivated at a single location.
(3)Marijuana cultivated outdoors shall not be cultivated within 100 feet of any occupied legal residential home or within 100 feet of a school offering kindergarten and grades 1 to 12, inclusive, education. A county, city, or city and county may increase this distance, not to exceed one mile. All outdoor cultivation sites shall be within a secure fence that is not less than six feet in height and that fully encloses the cultivation area. All marijuana cultivated outdoors shall be out of the publics view. Use of light assistance for outdoor cultivation shall not exceed a maximum of 1,200 watts of lighting capacity per 100 square feet of cultivated area.
(4)Indoor cultivation of marijuana shall not occur within 100 feet of a school offering kindergarten and grades 1 to 12, inclusive, education.
(5)Marijuana cultivated at a residential home shall not exceed the number of plants per home established by the county, city, or city and county. In a county, city, or city and county where the requirements of this section are being implemented by the designated state agency, the maximum number of plants that may be cultivated at a residential home shall not exceed six plants unless the county, city, or city and county adopts an ordinance permitting a higher number. Cultivation of marijuana that exceeds the six plants or the number of plants per home established by the county, city, or city and county shall be conducted in areas specifically zoned for the cultivation of marijuana. Cultivation of marijuana at a residential home shall not occur within 100 feet of a school offering kindergarten and grades 1 to 12, inclusive, education. A county, city, or city and county may increase this distance, not to exceed one mile.
(6)All buildings where marijuana is cultivated or stored shall be properly secured to prevent unauthorized entry.
(7)A county, city, city and county, or the designated state agency shall issue zip ties establish a program for the identification of permitted medical marijuana plants at a cultivation site during the cultivation period. A county, city, or city and county may designate the sheriff or chief of police to issue the zip ties. Zip ties a unique identifier, such as, but not limited to, a zip tie. The unique identifier shall be attached at the base of each plant. The county, city, city and county, or designated state agency may charge a fee to cover the reasonable costs of issuing the zip ties unique identifier, monitoring, tracking, and inspecting the plants, and for enforcing the requirements of Section 11362.769.
(8)A copy of a current and valid state-issued medical marijuana ID card or physician recommendation shall be displayed at all cultivation sites in a manner that allows law enforcement officers to see the card or recommendation without entering a building or fenced area.
(c)A county, city, city and county, or the designated state agency may revoke or suspend a permit, deny the reissuance of a permit, or impose fines for a violation of this section. A county may also abate a violation of this section through the abatement process established by Section 25845 of the Government Code and a city may declare what constitutes a nuisance by ordinance pursuant to Section 38771 of the Government Code. The county, city, or city and county may set maximum noise levels specifically related to the cultivation of marijuana.
(d)This section does not apply to a qualified patient cultivating marijuana pursuant to Section 11362.5 if he or she cultivates marijuana for his or her personal medical use and does not sell, distribute, donate, or provide marijuana to any other person or entity. This section does not apply to a primary caregiver cultivating marijuana pursuant to Section 11362.5 if he or she cultivates marijuana exclusively for the personal medical use of no more than five specified qualified patients for whom he or she is the primary caregiver within the meaning of Section 11362.7 and who does not receive remuneration for these activities, except for compensation provided in full compliance with subdivision (c) of Section 11362.765. This section does not preclude a county, city, or city and county from regulating or banning the cultivation, possession, storage, manufacture, transport, provision, distribution, donation, or sale of marijuana, or any other activity, by a person specified in this subdivision, or impair the enforcement of the same.
(e)This section does not apply to a county, city, or city and county that has an existing ordinance pertaining to the cultivation of marijuana, unless the county, city, or city and county adopts an ordinance to participate in the provisions of this section.
(f)A county, city, or city and county that opts out of the requirements of this section pursuant to subdivision (a) may adopt an ordinance to participate in the provisions of this section at a later date, in which case the designated state agency shall cooperate with that local jurisdiction to phase out the designated state agencys operation of the program.
SEC. 4.Section 13276 is added to the Water Code, to read:13276.Each regional board shall, and the State Water Resources Control Board may, address discharges of waste resulting from medical marijuana cultivation and associated activities, including by adopting a general permit, establishing waste discharge requirements, or taking action pursuant to Section 13269. In addressing these discharges, each regional board shall include conditions to address items that include, but are not limited to, all of the following:
(a)Site development and maintenance, erosion control, and drainage features.
(b)Stream crossing installation and maintenance.
(c)Riparian and wetland protection and management.
(d)Soil disposal.
(e)Water storage and use.
(f)Irrigation runoff.
(g)Fertilizers and soil.
(h)Pesticides and herbicides.
(i)Petroleum products and other chemicals.
(j)Cultivation-related waste.
(k)Refuse and human waste.
(l)Cleanup, restoration, and mitigation.
It is the intent of the Legislature that the multiagency task force, the Department of Fish and Wildlife and State Water Resources Control Board pilot project to address the Environmental Impacts of Cannabis Cultivation, assigned to respond to the damages caused from marijuana cultivation on public and private lands in California, will continue their enforcement efforts on a statewide level and permanent status to ensure the reduction of the adverse impacts of marijuana cultivation on water quality and fish and wildlife throughout the state.
SECTION 1.SEC. 2.Section 11362.769 is added to the Health and Safety Code, to read:11362.769.Indoor and outdoor medical marijuana cultivation shall be conducted in accordance with state and local laws and best practices related to land conversion, grading, electricity usage, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters. State agencies, including, but not limited to, the State Board of Forestry and Fire Protection, the Department of Fish and Wildlife, the State Water Resources Control Board, the California regional water quality control boards, and traditional state law enforcement agencies shall address environmental impacts of medical marijuana cultivation and shall coordinate, when appropriate, with cities and counties and their law enforcement agencies in enforcement efforts.
SEC. 2.SEC. 3.Section 11362.777 is added to the Health and Safety Code, to read:11362.777.(a)A board of supervisors county, city, or city and county may choose not to be the responsible entity for purposes of implementing this section. No later than July 1, 2016, a county, city, or city and county shall adopt an ordinance to implement this section, or shall, by resolution, opt out of the requirements of this section. The Governor shall designate an appropriate state agency to implement this section in each county, city, or city and county that adopts a resolution to opt out of the requirements of this section. For purposes of this section, designated state agency means the state agency designated by the Governor to implement this program in counties in which the board of supervisors a county, city, or city and county that has chosen not to be responsible for implementing the requirements of this section.
(b)All Except as provided in subdivision (d), all qualified patients and designated primary care givers caregivers cultivating marijuana pursuant to Section 11362.5, and all 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 collectively or cooperatively to cultivate marijuana for medical purposes, are subject to all of the following:
(1)Each patient, primary caregiver, collective, or cooperative that cultivates marijuana shall obtain a permit to cultivate marijuana from the sheriff, chief of police, or other entity designated by the board of supervisors of the county, city, city and county, or from the designated state agency. Each permit shall specify the location being permitted and the number of plants that may be grown at that location. The board of supervisors county, city, city and county, or the designated state agency may charge a fee in an amount sufficient to cover the reasonable cost of issuing the permit and carrying out the requirements of this section. The permits authorized by this section shall be renewed annually.
(2)Each county, city, or city and county shall establish the number of plants that may be cultivated on an outdoor parcel or at an indoor facility. Except for cultivation at a residential home pursuant to paragraph (5), cultivation shall only be permitted in areas that are zoned specifically for the cultivation of marijuana. In counties a county, city, or city and county where the requirements of this section are being implemented by the designated state agency, the maximum number of plants that may be cultivated at any given site shall not exceed 99 plants. The board of supervisors county, city, city and county, or designated state entity may set a maximum limit on the square footage that may be cultivated at a single location.
(3)Marijuana cultivated outdoors shall not be cultivated within 100 feet of any occupied legal residential home or within 100 feet of a school offering kindergarten and grades 1 to 12, inclusive, education. A county, city, or city and county may increase this distance, not to exceed one mile. All outdoor cultivation sites shall be within a secure fence that is not less than six feet in height and that fully encloses the cultivation area. All marijuana cultivated outdoors shall be out of the publics view. Use of light assistance for outdoor cultivation shall not exceed a maximum of 1,200 watts of lighting capacity per 100 square feet of cultivated area.
(4)Indoor cultivation of marijuana shall not occur within 100 feet of a school offering kindergarten and grades 1 to 12, inclusive, education.
(5)Marijuana cultivated at a residential home shall not exceed the number of plants per home established by the county, city, or city and county. In a county, city, or city and county where the requirements of this section are being implemented by the designated state agency, the maximum number of plants that may be cultivated at a residential home shall not exceed six plants unless the county, city, or city and county adopts an ordinance permitting a higher number. Cultivation of marijuana that exceeds the six plants or the number of plants per home established by the county, city, or city and county shall be conducted in areas specifically zoned for the cultivation of marijuana. Cultivation of marijuana at a residential home shall not occur within 100 feet of a school offering kindergarten and grades 1 to 12, inclusive, education. A county, city, or city and county may increase this distance, not to exceed one mile.
(6)All buildings where marijuana is cultivated or stored shall be properly secured to prevent unauthorized entry.
(7)A county, city, city and county, or the designated state agency shall issue zip ties for the identification of medical marijuana plants. A county, city, or city and county may designate the sheriff or chief of police to issue the zip ties. Zip ties shall be attached at the base of each plant. The county, city, city and county, or designated state agency may charge a fee to cover the reasonable costs of issuing the zip ties, monitoring, tracking, and inspecting the plants, and for enforcing the requirements of Section 11362.769.
(8)A copy of a current and valid state-issued medical marijuana ID card or physician recommendation shall be displayed at all cultivation sites in a manner that allows law enforcement officers to see the card or recommendation without entering a building or fenced area.
(c)A county, city, city and county, or the designated state agency may revoke or suspend a permit, deny the reissuance of a permit, or impose fines for a violation of this section. A county may also abate a violation of this section through the abatement process established by Section 25845 of the Government Code. Code and a city may declare what constitutes a nuisance by ordinance pursuant to Section 38771 of the Government Code. The county, city, or city and county may set maximum noise levels specifically related to the cultivation of marijuana.
(d)This section does not apply to a qualified patient cultivating marijuana pursuant to Section 11362.5 if he or she cultivates marijuana for his or her personal medical use and does not sell, distribute, donate, or provide marijuana to any other person or entity. This section does not apply to a primary caregiver cultivating marijuana pursuant to Section 11362.5 if he or she cultivates marijuana exclusively for the personal medical use of no more than five specified qualified patients for whom he or she is the primary caregiver within the meaning of Section 11362.7 and who does not receive remuneration for these activities, except for compensation provided in full compliance with subdivision (c) of Section 11362.765. This section does not preclude a county, city, or city and county from regulating or banning the cultivation, possession, storage, manufacture, transport, provision, distribution, donation, or sale of marijuana, or any other activity, by a person specified in this subdivision, or impair the enforcement of the same.
(e)This section does not apply to a county, city, or city and county that has an existing ordinance pertaining to the cultivation of marijuana, unless the county, city, or city and county adopts an ordinance to participate in the provisions of this section.
(f)A county, city, or city and county that opts out of the requirements of this section pursuant to subdivision (a) may adopt an ordinance to participate in the provisions of this section at a later date, in which case the designated state agency shall cooperate with that local jurisdiction to phase out the designated state agencys operation of the program.
SEC. 3.SEC. 4.Section 13276 is added to the Water Code, to read:13276.Each regional board shall, and the State Water Resources Control Board may, address discharges of waste resulting from medical marijuana cultivation and associated activities, including by adopting a general permit, establishing waste discharge requirements, or taking action pursuant to Section 13269. In addressing these discharges, each regional board shall include conditions to address items that include, but are not limited to, all of the following:
(a)Site development and maintenance, erosion control, and drainage features.
(b)Stream crossing installation and maintenance.
(c)Riparian and wetland protection and management.
(d)Soil disposal.
(e)Water storage and use.
(f)Irrigation runoff.
(g)Fertilizers and soil.
(h)Pesticides and herbicides.
(i)Petroleum products and other chemicals.
(j)Cultivation-related waste.
(k)Refuse and human waste.
(l)Cleanup, restoration, and mitigation.
Indoor and outdoor medical marijuana cultivation shall be conducted in accordance with state and local laws and best practices related to land conversion, grading, electricity usage, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters. State agencies, including, but not limited to, the State Board of Forestry and Fire Protection, the Department of Fish and Wildlife, the State Water Resources Control Board, the California regional water quality control boards, and traditional state law enforcement agencies shall address environmental impacts of medical marijuana cultivation and shall coordinate, when appropriate, with cities and counties and their law enforcement agencies in enforcement efforts.
SEC. 2.Section 11362.777 is added to the Health and Safety Code, to read:11362.777.(a)A board of supervisors may choose not to be the responsible entity for purposes of implementing this section. No later than July 1, 2016, a county shall adopt an ordinance to implement this section, or shall, by resolution, opt out of the requirements of this section. The Governor shall designate an appropriate state agency to implement this section in each county that adopts a resolution to opt out of the requirements of this section. For purposes of this section, designated state agency means the state agency designated by the Governor to implement this program in counties in which the board of supervisors has chosen not to be responsible for implementing the requirements of this section.
(b)All qualified patients and designated primary care givers cultivating marijuana pursuant to Section 11362.5, and all 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 collectively or cooperatively to cultivate marijuana for medical purposes, are subject to all of the following:
(1)Each patient, primary caregiver, collective, or cooperative that cultivates marijuana shall obtain a permit to cultivate marijuana from the sheriff or other entity designated by the board of supervisors of the county, or from the designated state agency. Each permit shall specify the location being permitted and the number of plants that may be grown at that location. The board of supervisors or the designated state agency may charge a fee in an amount sufficient to cover the reasonable cost of issuing the permit and carrying out the requirements of this section. The permits authorized by this section shall be renewed annually.
(2)Each county shall establish the number of plants that may be cultivated on an outdoor parcel or at an indoor facility. Except for cultivation at a residential home pursuant to paragraph (5), cultivation shall only be permitted in areas that are zoned specifically for the cultivation of marijuana. In counties where the requirements of this section are being implemented by the designated state agency, the maximum number of plants that may be cultivated at any given site shall not exceed 99 plants. The board of supervisors or designated state entity may set a maximum limit on the square footage that may be cultivated at a single location.
(3)Marijuana cultivated outdoors shall not be cultivated within 100 feet of any occupied legal residential home or within 100 feet of a school offering kindergarten and grades 1 to 12, inclusive, education. A county may increase this distance, not to exceed one mile. All outdoor cultivation sites shall be within a secure fence that is not less than six feet in height and that fully encloses the cultivation area. All marijuana cultivated outdoors shall be out of the publics view. Use of light assistance for outdoor cultivation shall not exceed a maximum of 1,200 watts of lighting capacity per 100 square feet of cultivated area.
(4)Indoor cultivation of marijuana shall not occur within 100 feet of a school offering kindergarten and grades 1 to 12, inclusive, education.
(5)Marijuana cultivated at a residential home shall not exceed the number of plants per home established by the county. In a county where the requirements of this section are being implemented by the designated state agency, the maximum number of plants that may be cultivated at a residential home shall not exceed six plants unless the county adopts an ordinance permitting a higher number. Cultivation of marijuana that exceeds the six plants or the number of plants per home established by the county shall be conducted in areas specifically zoned for the cultivation of marijuana. Cultivation of marijuana at a residential home shall not occur within 100 feet of a school offering kindergarten and grades 1 to 12, inclusive, education. A county may increase this distance, not to exceed one mile.
(6)All buildings where marijuana is cultivated or stored shall be properly secured to prevent unauthorized entry.
(7)A county or the designated state agency shall issue zip ties for the identification of medical marijuana plants. A county may designate the sheriff to issue the zip ties. Zip ties shall be attached at the base of each plant. The county or designated state agency may charge a fee to cover the reasonable costs of issuing the zip ties, monitoring, tracking, and inspecting the plants, and for enforcing the requirements of Section 11362.769.
(8)A copy of a current and valid state-issued medical marijuana ID card or physician recommendation shall be displayed at all cultivation sites in a manner that allows law enforcement officers to see the card or recommendation without entering a building or fenced area.
(c)A county or the designated state agency may revoke or suspend a permit, deny the reissuance of a permit, or impose fines for a violation of this section. A county may also abate a violation of this section through the abatement process established by Section 25845 of the Government Code. The county may set maximum noise levels specifically related to the cultivation of marijuana.
SEC. 2.SEC. 3.Section 13276 is added to the Water Code, to read:13276.Each regional board shall, and the State Water Resources Control Board may, address discharges of waste resulting from medical marijuana cultivation and associated activities, including by adopting a general permit, establishing waste discharge requirements, or taking action pursuant to Section 13269. In addressing these discharges, each regional board shall include conditions to address items that include, but are not limited to, all of the following:
(a)Site development and maintenance, erosion control, and drainage features.
(b)Stream crossing installation and maintenance.
(c)Riparian and wetland protection and management.
(d)Soil disposal.
(e)Water storage and use.
(f)Irrigation runoff.
(g)Fertilizers and soil.
(h)Pesticides and herbicides.
(i)Petroleum products and other chemicals.
(j)Cultivation-related waste.
(k)Refuse and human waste.
(l)Cleanup, restoration, and mitigation.
Indoor and outdoor medical marijuana cultivation shall be conducted in accordance with state and local laws and best practices related to land conversion, grading, electricity usage, water usage, agricultural discharges, and similar matters. State agencies, including, but not limited to, the State Board of Forestry and Fire Protection, the Department of Fish and Wildlife, the State Water Resources Control Board, the California regional water quality control boards, and traditional state law enforcement agencies shall address environmental impacts of medical marijuana cultivation and shall coordinate with cities and counties and their law enforcement agencies in enforcement efforts.
SEC. 2.Section 13276 is added to the Water Code, to read:13276.Each regional board shall address discharges of waste resulting from medical marijuana cultivation and associated activities, including by taking action pursuant to Section 13269. In addressing these discharges, each regional board shall include conditions to address items that include, but are not limited to, all of the following:
(a)Site development and maintenance, erosion control, and drainage features.
(b)Stream crossing installation and maintenance.
(c)Riparian and wetland protection and management.
(d)Soil disposal.
(e)Water storage and use.
(f)Irrigation runoff.
(g)Fertilizers and soil.
(h)Pesticides and herbicides.
(i)Petroleum products and other chemicals.
(j)Cultivation-related waste.
(k)Refuse and human waste.
(l)Cleanup, restoration, and mitigation.
|
Date
|
Status
|
|---|---|
| Sep 11, 2015 | Re-referred to Com. on RLS. |
| Sep 8, 2015 | Re-referred to Com. on RLS. |
| Sep 8, 2015 | Read second time. Ordered to third reading. |
| Sep 11, 2015 | (Ayes 23. Noes 8. Page 2743.) |
| Sep 11, 2015 | (Ayes 24. Noes 3. Page 2737.) |
| Sep 11, 2015 | (Ayes 24. Noes 3.) |
| Sep 11, 2015 | (Ayes 24. Noes 11. Page 2749.) |
| Sep 11, 2015 | (Ayes 24. Noes 11.) |
| Sep 11, 2015 | Assembly Rule 63 suspended. |
| Sep 11, 2015 | Assembly Rule 63 suspended. (Page 3194.) |
| Sep 11, 2015 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on RLS. |
| Sep 11, 2015 | In Assembly. Concurrence in Senate amendments pending. |
| Sep 11, 2015 | Ordered to third reading. |
| Sep 4, 2015 | Read third time and amended. Ordered to second reading. |
| Sep 11, 2015 | Read third time. Passed. Ordered to the Assembly. |
| Sep 11, 2015 | Read third time. Passed. Ordered to the Assembly. (Ayes 30. Noes 8. Page 2764.). |
| Sep 11, 2015 | Senate amendments concurred in. To Engrossing and Enrolling. |
| Sep 11, 2015 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 60. Noes 13. Page 3207.). |
| Sep 11, 2015 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 60. Noes 13.). |
| Sep 11, 2015 | Senate Rule 29.3(b) suspended. (Ayes 23. Noes 8. Page 2744.) |
| Sep 11, 2015 | Senate Rule 29.3(b) suspended. (Ayes 23. Noes 8.) |
| Sep 11, 2015 | Withdrawn from committee. |
| Sep 23, 2015 | Enrolled and presented to the Governor at 4 p.m. |
| Oct 9, 2015 | Approved by the Governor. |
| Oct 9, 2015 | Chaptered by Secretary of State - Chapter 688, Statutes of 2015. |
| Jun 2, 2015 | Read second time. Ordered to third reading. |
| Feb 6, 2015 | From printer. May be heard in committee March 8. |
| Mar 9, 2015 | Referred to Coms. on AGRI. and E.S. & T.M. |
| Apr 8, 2015 | From committee chair, with author's amendments: Amend, and re-refer to Com. on AGRI. Read second time and amended. |
| Apr 9, 2015 | Re-referred to Com. on AGRI. |
| Apr 16, 2015 | From committee: Do pass and re-refer to Com. on E.S. & T.M. (Ayes 6. Noes 2.) (April 15). Re-referred to Com. on E.S. & T.M. |
| Apr 22, 2015 | From committee chair, with author's amendments: Amend, and re-refer to Com. on E.S. & T.M. Read second time and amended. |
| Apr 23, 2015 | Re-referred to Com. on E.S. & T.M. |
| Apr 29, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (April 28). Re-referred to Com. on APPR. |
| May 20, 2015 | In committee: Set, first hearing. Referred to suspense file. |
| May 20, 2015 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| May 28, 2015 | From committee: Amend, and do pass as amended. (Ayes 13. Noes 1.) (May 28). |
| Jun 1, 2015 | Read second time and amended. Ordered returned to second reading. |
| Feb 5, 2015 | Read first time. To print. |
| Jun 3, 2015 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Jun 3, 2015 | Read third time. Passed. Ordered to the Senate. |
| Jun 3, 2015 | Read third time. Passed. Ordered to the Senate. (Ayes 60. Noes 15. Page 1863.) |
| Jun 18, 2015 | Referred to Coms. on GOV. & F. and E.Q. |
| Jul 2, 2015 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on GOV. & F. |
| Jul 8, 2015 | From committee: Do pass and re-refer to Com. on E.Q. (Ayes 5. Noes 0.) (July 8). Re-referred to Com. on E.Q. |
| Jul 16, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (July 15). Re-referred to Com. on APPR. |
| Aug 17, 2015 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on APPR. |
| Aug 17, 2015 | In committee: Referred to APPR. suspense file. |
| Aug 31, 2015 | From committee: Amend, and do pass as amended. (Ayes 5. Noes 0.) (August 27). |
| Sep 1, 2015 | Read second time and amended. Ordered to third reading. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 11, 2015 | AB 243 WOOD Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Sep 11, 2015 | Assembly 3rd Reading (Supplemental File 3) AB243 Wood By McGuire | Senate Floor |
Passed |
|
| Aug 27, 2015 | Do pass as amended | Senate Standing Committee on Appropriations |
Passed |
|
| Aug 17, 2015 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jul 15, 2015 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Environmental Quality |
Passed |
|
| Jul 8, 2015 | Do pass, but first be re-referred to the Committee on [Environmental Quality] | Senate Standing Committee on Governance and Finance |
Passed |
|
| Jun 3, 2015 | AB 243 WOOD Assembly Third Reading | Assembly Floor |
Passed |
|
| May 28, 2015 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 28, 2015 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Environmental Safety and Toxic Materials |
Passed |
|
| Apr 15, 2015 | Do pass and be re-referred to the Committee on [Environmental Safety and Toxic Materials] | Assembly Standing Committee on Agriculture |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| American for Safe Access | ** Against | Apr 15, 2015 |
| ASSEMBLY FLOOR: 60-15, 6 | ** Against | Sep 11, 2015 |
| Associated California Loggers | * Support | Jul 15, 2015 |
| Associated Students Council of Humboldt State University | ** Support | Apr 15, 2015 |
| Associated Students of Humboldt State Universality | ** Support | Jun 3, 2015 |
| Butte County | * For If Amend | Apr 15, 2015 |
| California Association Of Professional Scientists | * Indeterminate | Jul 8, 2015 |
| California Association of Water Agencies | ** Support | Jun 3, 2015 |
| California Cannabis Industry Association | * Support | Jul 15, 2015 |
| California Cattlemen'S Association | ** Support | Jul 15, 2015 |
| California Director for Americans for Safe Access | * Indeterminate | Jul 8, 2015 |
| California Forestry Association | ** Support | Sep 11, 2015 |
| California League Of Conservation Voters | ** Support | Sep 11, 2015 |
| California Narcotic Officers' Association | ** Support | Jul 15, 2015 |
| California Native Plant Society | ** Support | Sep 11, 2015 |
| California State Parks Foundation | ** Support | Sep 11, 2015 |
| California Trout | ** Support | Sep 11, 2015 |
| California Urban Streams Partnership | ** Support | Sep 11, 2015 |
| CaliforniaNORML | ** Against | Sep 11, 2015 |
| Central Coast Forest Association | ** Support | Jun 3, 2015 |
| Clean Water Action | ** Support | Sep 11, 2015 |
| Conscious Cannabis Ventures | ** Support | Jun 3, 2015 |
| County of Humboldt Board of Supervisors | ** Support | Sep 11, 2015 |
| County of Mendocino Board of Supervisors | ** Support | Sep 11, 2015 |
| County of Sonoma Board of Supervisors | ** Support | Sep 11, 2015 |
| County of Trinity Supervisor John Fenley | ** Support | Sep 11, 2015 |
| Crusaders for Patients' Rights | * Indeterminate | Jul 8, 2015 |
| Defenders Of Wildlife | ** Support | Sep 11, 2015 |
| Emerald Grower's Association | ** Support | Sep 11, 2015 |
| Emerald Guards Association | * Indeterminate | Jul 8, 2015 |
| Green California | ** Support | Jul 15, 2015 |
| Heritage Associates | ** Support | Jun 3, 2015 |
| Humboldt and Mendocino Redwood | * Indeterminate | Jul 8, 2015 |
| Humboldt Redwood Company, LLC | ** Support | Jul 15, 2015 |
| Medical Marijuana Gardens and Representative | * Indeterminate | Jul 8, 2015 |
| Mendocino County Sheriff's Office | ** Support | Sep 11, 2015 |
| Mendocino County Sheriff-Coroner, Thomas D. Allman | ** Support | Jul 15, 2015 |
| Pacific Forest Trust | ** Support | Sep 11, 2015 |
| Rural County Representatives of California | * Neutral | Jul 15, 2015 |
| Sacramento Brownie Mary Democratic | * Against | Jul 15, 2015 |
| Safe Access | ** Indeterminate | Jul 8, 2015 |
| Santa Barbara County | * Against | Apr 15, 2015 |
| Sierra Club California | ** Support | Sep 11, 2015 |
| Small Farmers Association | ** Support | Sep 11, 2015 |
| Sonoma County Water Agency | ** Support | Sep 11, 2015 |
| The Nature Conservancy | ** Support | Sep 11, 2015 |
| Therapeutic Alternative | * Indeterminate | Jul 8, 2015 |
| Trinity County | * Support | Apr 15, 2015 |
| Trout Unlimited | ** Support | Sep 11, 2015 |
| Trust For Public Land, The | ** Support | Sep 11, 2015 |
| Urban Counties Caucus | ** Against | Sep 11, 2015 |
AB 243
Page 5
(Without Reference to File)
CONCURRENCE IN SENATE AMENDMENTS
AB 243
(Wood)
As Amended September 11, 2015
Majority vote
ASSEMBLY: |
60-15 |
(June 3, 2015) |
SENATE: |
|
(September 11, 2015) |
(vote not available)
Original Committee Reference: AGRI.
SUMMARY: Establishes a regulatory program for the cultivation of medical cannabis, as part of the Medical Marijuana Regulation and Safety Act (MMRSA).
The Senate amendments delete the Assembly version of this bill and instead:
Make findings related to the environmental impacts associated with marijuana cultivation and the complex nature of remediating marijuana cultivation sites, and that:
The federal government, including the United States Environmental Protection Agency, has not regulated pesticide use in medical cannabis.
Lawful growers of medical cannabis urge the California Department of Pesticide Regulation to provide guidance on the use of pesticides.
Require Department of Fish and Wildlife (DFW), in consultation with State Water Resources Control Board (SWRCB), to establish a multiagency task force to address environmental impacts associated with marijuana cultivation.
Require DFW to adopt regulations to enhance the fees on any entity cultivating marijuana that impacts a bed, channel or bank of any river, stream or lake, pursuant to Fish and Game Code Section 1602, as specified.
Require the multiagency task force, established pursuant to Water Code Section12029, DFW and the existing SWRCB pilot project, established to respond to damages caused by marijuana cultivation, to continue enforcement efforts on permanent basis statewide to ensure the reduction of adverse impacts of marijuana cultivation on water quality and fish and wildlife.
Require each regional board, and permits SWRCB, to address discharges of waste resulting from medical marijuana cultivation and associated activities, including adopting a general permit or establishing waste discharge requirements or waivers as specified.
Require a state license to cultivate marijuana and require the California Department of Food and Agriculture (CDFA) to establish a Medical Cannabis Cultivation Program in order to license the cultivation of indoor and outdoor medical marijuana.
Establish classes of cultivation licenses based on the size of the operation and the location.
Require CDFA to establish a program to uniquely identify medical marijuana plants, in consultation with SWRCB and DFW that meets the following conditions:
The program must issue a unique identifier to each plant that enables identification of permitted plants as they are being cultivated;
The unique identifier must be attached to the base of the marijuana plant and must only be issued to licensed individuals;
CDFA must take steps to prevent fraudulent identifiers and illegal diversion of unique identifiers to unlicensed cultivators; and,
In implementing the program, CDFA must consider water use and environmental impacts and ensure that individual and cumulative effects of water diversion do not affect the instream flows needed for fish spawning, natural variability, or springs and other aquatic habitats.
Authorize CDFA to develop and implement regulations to carry out the licensing program authorized under this bill and to regulate weighing and measuring devices used to meet the MMRSA's requirements.
State that nothing in MMRSA supersedes the authority of SWRCB, regional water boards, or DFW.
Authorize a city, county, or city and county, through its current or future land use regulations or ordinance, to issue or deny permits that allow the cultivation of medical marijuana, with the condition that the permit does not become active until the cultivator receives a state license and final local approval.
Require any local licensing requirements, including the unique identifier program, to be equivalent to or more stringent than CDFA's licensing requirements.
Prohibit a cultivator from applying for a state license if they have not received the required local approval, or if the local government has prohibited medical marijuana cultivation.
Establish CDFA as the sole regulator in any local jurisdiction that has not implemented a local permitting system by March 1, 2016.
State that the cultivation licensing program does not apply to a qualified patient if he or she does not cultivate greater than 100 square feet, nor a caregiver if the caregiver does not cultivate greater than 500 square feet and does not supply more than five qualified patients and meet certain other requirements.
Require each licensing authority which enacts the Medical Marijuana Public Safety and Environmental Protection Act – to levy fees adequate to cover the reasonable regulatory costs of administering the MMRSA. These fees must be:
Charged to fairly and proportionately cover the total cost of administering MMRSA;
Scaled based on the size of the business charged the fee;
Deposited in the Medical Marijuana Regulation and Safety Act Fund (MMRSAF), as created by this bill; and,
Used, upon appropriation of the Legislature, by the licensing authorities to administer MMRSA.
Establish civil penalties for engaging in cannabis activity without the required licenses and unique identifiers of up to twice the cost of the appropriate licensing fee per day of violation, to be paid as follows:
If the Attorney General brings action, to the General Fund;
If a district attorney or county counsel brings action, to the treasurer of the county in which the judgment was entered; and,
If a city attorney or city prosecutor, to the treasurer of the city or city and county in which the judgment was entered, unless the case is adjudicated in a superior court in the unincorporated area or in another city, in which case the penalty shall be split evenly between the treasurers in the two jurisdictions.
Authorize the destruction of medical cannabis associated with any civil penalties.
Provide for a General Fund or special fund loan, including up to $10 million from the General Fund, to the Bureau of Medical Marijuana Regulation (Bureau) as established by AB 266, to support the initial regulatory activities authorized by MMRSA.
Require repayment of any initial loans for regulatory activities to be repaid by January 1, 2022, from the regulatory fees charged by the licensing authorities and, if necessary, from the Medical Cannabis Fines and Penalties Account.
Require the Bureau to establish a grant program to fund activities by state and local law enforcement to remedy the environmental effects of cannabis cultivation, payable from fines and penalties charged pursuant to the bill after all outstanding loans for the program are repaid.
Appropriate $10 million from MMRSAF to the Department of Consumer Affairs to begin the activities of the Bureau.
Provide that provisions relating to Joint Sunset Review Committee oversight do not apply to the Bureau.
End the legal effect of current law stating patients, individuals with identification cards, or their caregivers, who associate in California to collectively and cooperatively cultivate marijuana for medical purposes shall not solely, on the basis of that fact, be subject to state criminal sanctions when the Bureau posts a notice on its Internet Web site that licensing authorities have commenced issuing licenses.
Direct the Board of Equalization (BOE) to adopt a system to report the movement of commercial cannabis and cannabis products throughout the distribution chain, which must not duplicate CDFA's track and trace program. The system must capture specified information regarding:
Amount of tax due by the designated entity;
Name, address, and license number of the designated entity remitting the tax;
Name, address, and license number of the succeeding entity receiving the product;
The transaction date; and,
Any other information deemed necessary by BOE for the taxation and regulation of marijuana and marijuana products.
State that no reimbursement for local costs is required because this bill creates a new crime or infraction, among other reasons, but requires reimbursement of local agencies pursuant to existing law if the Commission on State Mandates determines that the bill contains other mandated costs.
State that the measure only becomes active upon the enactment and operation of AB 266 and SB 643.
FISCAL EFFECT: Unknown. This bill has been keyed fiscal by Legislative Counsel.
COMMENTS: Proposition 215, the Compassionate Use Act (CUA) of 1996, provides certain legal protections for qualified patients and caregivers that possess or cultivate marijuana. In addition to Proposition 215, the Legislature passed the Medical Marijuana Program Act, which extends certain legal protections to those that collectively or cooperatively cultivate marijuana for medical purposes. Marijuana is still illegal under state and federal law.
By exempting qualified patients and caregivers from prosecution for using or from cultivating medical marijuana (MM), California law basically allows for the cultivation and use of MM. These laws have triggered the growth of MM dispensaries in many localities, and in response, local governments have sought to exercise their police powers to regulate or ban activities relating to MM. For many years there was uncertainty about the ability of local governments to control MM activities, specifically MM dispensaries location and ability to operate.
The California Supreme Court (Court), in 2013 held that California's MM statutes do not preempt a local ban on facilities that distribute medical marijuana. The Court held that nothing in the CUA expressly or implied limited the authority of a local jurisdiction, to regulate the use of its land, including the authority to provide that facilities for the distribution of MM will not be permitted to operate within its borders. This has allowed many California jurisdictions to ban the cultivation and sale of MM altogether.
There are limited environmental regulations for cannabis cultivation, which have caused environmental damage to the North Coast region of the State. The author point out that the environmental degradation cause by marijuana growers needs to be addressed.
In 2014, Governor Brown responded by approving $1.8 million to create a pilot program in Northern California called the "Watershed Enforcement Team" (WET). WET charged the State Water Board along with the North Coast Regional Water Board to create guidelines that address wastewater discharges from MM cultivation. According to the author, this bill continues the work of WET by establishing parameters that can guide statewide standards and to create regulations around a product that has never been regulated in California.
The cultivation of marijuana has caused significant damage to California's natural environment. The potential for future damage is made all the greater by the lack of regulation of the medical marijuana industry, and in particular, the cultivation of medical marijuana. This bill creates a regulatory framework around cultivation. The unique identification program allows for the tracking of medicinal marijuana plants to ensure that marijuana is not being diverted to the black market and also allows law enforcement to determine which plants are legally being cultivated for medical purposes and which are being illegally cultivated. This enables swifter eradication actions against illegal grows while avoiding the accidental eradications of legal medicinal plantings. This need is made all the more dire by the current drought, which exacerbates the harm caused by the illegal diversion of water to cultivate marijuana.
Analysis Prepared by: Victor Francovich / AGRI. / (916) 319-2084 FN: 0002434
AB 243
Page 10
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: AB 243
Amended: 9/11/15 in Senate
SENATE GOVERNANCE & FIN. COMMITTEE: 5-0, 7/8/15
AYES: Hertzberg, Beall, Hernandez, Lara, Pavley
NO VOTE RECORDED: Nguyen, Moorlach
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-0, 7/15/15
AYES: Wieckowski, Hill, Jackson, Leno, Pavley
NO VOTE RECORDED: Gaines, Bates
SENATE APPROPRIATIONS COMMITTEE: 5-0, 8/27/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NO VOTE RECORDED: Bates, Nielsen
ASSEMBLY FLOOR: 60-15, 6/3/15 - See last page for vote
SUBJECT: Medical Board of California: medical marijuana
DIGEST: This bill establishes a regulatory program for the cultivation of medical cannabis, as part of the Medical Marijuana Regulation and Safety Act (MMRSA).
Existing law:
Provides, under the Compassionate Use Act (CUA), that qualified patients with specified illnesses or their qualified caregivers cannot be prosecuted for possessing or cultivating medical marijuana upon the written or oral recommendation or approval of an attending physician (Proposition 215, 1996).
Encourages federal and state governments to implement a plan to provide for the safe and affordable distribution of medical marijuana to those who need it, but also states that it is not to be construed to supersede legislation prohibiting conduct that endangers others or to condone the diversion of medical marijuana for nonmedical purposes.
Directs the Department of Public Health to administer the Medical Marijuana Program, where qualified patients apply for identification cards when deemed appropriate by their attending physician.
Requires county health departments to issue identification cards to qualified patients and primary caregivers who voluntarily register. Cards are valid for one year and may be renewed annually.
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 collectively or cooperatively cultivate marijuana for medical purposes, shall not solely on the basis of that fact be subject to state criminal sanctions under existing law (SB 420, Vasconcellos, Chapter 875, Statutes of 2003).
Prohibits any medical marijuana cooperative, collective, dispensary, operator, establishment, or provider, as specified, from being located within 600 feet of a school (AB 2650, Buchannan, Chapter 603, Statutes of 2010), and further clarified the authority of local agencies to adopt and enforce ordinances regulating the location, operation, or establishment of a medical marijuana cooperative or collective (AB 1300, Blumenfield, Chapter 196, Statutes of 2011).
Establishes the Joint Sunset Review Committee to comprehensively analyze every eligible agency to determine whether the agency is cost-effective and necessary. Each eligible agency with a statutory sunset date must submit specified information to the Committee by December 1 of the year prior to the year it’s set to be repealed.
Imposes the Sales and Use Tax on the gross receipts from the sale of, and on the sales price of, tangible personal property, unless specifically exempted by statute.
Requires every person, retailer, and wholesaler engaged in selling tangible personal property subject to sales tax to apply to the Board of Equalization (BOE) for a seller’s permit.
Provides that a person that engages in business as a seller in this state without a seller’s permit, and each officer of any corporation that so engages in business, is guilty of a misdemeanor.
Makes persons who fail to pay Sales and Use Tax obligations liable for accrued interest and penalties for up to eight previous calendar years, but that the statute of limitations never commences when a taxpayer fails to file a return.
Applies various penalties for failing to obtain a permit, pay or prepay a tax, or file a return.
Enacts an exemption for the sales and use tax for prescription medication; however, to be exempt, the medication must be:
prescribed by an authorized person and dispensed on a prescription filled by a pharmacist,
Furnished by a licensed physician to his or her own patient, or
Furnished by a health facility for treatment pursuant to a licensed physician’s order, or sold to a licensed physician.
Allows local governments, pursuant to the California Constitution, to make and enforce within its limits all local, police, sanitary, and other regulations which are not in conflict with general laws, known as the “police power.”
This bill:
Makes findings related to the environmental impacts associated with marijuana cultivation and the complex nature of remediating marijuana cultivation sites, and that:
The federal government, including the United States Environmental Protection Association, has not regulated pesticide use in medical cannabis.
Lawful growers of medical cannabis urge the California Department of Pesticide Regulation to provide guidance on the use of pesticides.
Requires Department of Fish and Wildlife (DFW), in consultation with State Water Resources Control Board (SWRCB), to establish a multiagency task force to address environmental impacts associated with marijuana cultivation.
Requires DFW to adopt regulations to enhance the fees on any entity cultivating marijuana that impacts a bed, channel or bank of any river, stream or lake, pursuant to Fish and Game Code Section 1602, as specified.
Requires the multiagency task force, established pursuant to Water Code Section12029, DFW and the existing SWRCB pilot project, established to respond to damages caused by marijuana cultivation, to continue enforcement efforts on permanent basis statewide to ensure the reduction of adverse impacts of marijuana cultivation on water quality and fish and wildlife.
Requires each regional board, and permits SWRCB, to address discharges of waste resulting from medical marijuana cultivation and associated activities, including adopting a general permit or establishing waste discharge requirements or waivers as specified.
Requires a state license to cultivate marijuana and requires the California Department of Food and Agriculture (CDFA) to establish a Medical Cannabis Cultivation Program in order to license the cultivation of indoor and outdoor medical marijuana.
Establishes classes of cultivation licenses based on the size of the operation and the location.
Requires CDFA to establish a program to uniquely identify medical marijuana plants, in consultation with SWRCB and DFW that meets the following conditions:
The program must issue a unique identifier to each plant that enables identification of permitted plants as they are being cultivated.
The unique identifier must be attached to the base of the marijuana plant and must only be issued to licensed individuals.
CDFA must take steps to prevent fraudulent identifiers and illegal diversion of unique identifiers to unlicensed cultivators.
In implementing the program, CDFA must consider water use and environmental impacts and ensure that individual and cumulative effects of water diversion do not affect the instream flows needed for fish spawning, natural variability, or springs and other aquatic habitats.
Authorizes CDFA to develop and implement regulations to carry out the licensing program authorized under this bill and to regulate weighing and measuring devices used to meet the MMRSA’s requirements.
States that nothing in MMRSA supersedes the authority of the SWRCB, regional water boards, or DFW.
Authorizes a city, county, or city and county, through its current or future land use regulations or ordinance, to issue or deny permits that allow the cultivation of medical marijuana, with the condition that the permit does not become active until the cultivator receives a state license and final local approval.
Requires any local licensing requirements, including the unique identifier program, to be equivalent to or more stringent than CDFA’s licensing requirements.
Prohibits a cultivator from applying for a state license if they have not received the required local approval, or if the local government has prohibited medical marijuana cultivation.
Establishes CDFA as the sole regulator in any local jurisdiction that has not implemented a local permitting system by March 1, 2016.
States that the cultivation licensing program does not apply to a qualified patient if he or she does not cultivate greater than 100 square feet, nor a caregiver if the caregiver does not cultivate greater than 500 square feet and does not supply more than five qualified patients and meets certain other requirements.
Requires each licensing authority, as defined in AB 266 (Bonta, 2015) - which enacts the Medical Marijuana Public Safety and Environmental Protection Act - to levy fees adequate to cover the reasonable regulatory costs of administering the MMRSA. These fees must be:
Charged to fairly and proportionately to cover the total cost of administering MMRSA;
Scaled based on the size of the business charged the fee.
Deposited in the Medical Marijuana Regulation and Safety Act Fund (MMRSAF), as created by this bill.
Used, upon appropriation of the Legislature, by the licensing authorities to administer MMRSA.
Establishes civil penalties for engaging in cannabis activity without the required licenses and unique identifiers of up to twice the cost of the appropriate licensing fee per day of violation, to be paid as follows:
If the Attorney General brings action, to the General Fund.
If a district attorney or county counsel brings action, to the treasurer of the county in which the judgment was entered.
If a city attorney or city prosecutor, to the treasurer of the city or city and county in which the judgment was entered, unless the case is adjudicated in a superior court in the unincorporated area or in another city, in which case the penalty shall be split evenly between the treasurers in the two jurisdictions.
Authorizes the destruction of medical cannabis associated with any civil penalties.
Provides for a General Fund or special fund loan, including up to $10 million from the General Fund, to the Bureau of Medical Marijuana Regulation (Bureau) as established by AB 266, to support the initial regulatory activities authorized by MMRSA.
Requires repayment of any initial loans for regulatory activities to be repaid by January 1, 2022, from the regulatory fees charged by the licensing authorities and, if necessary, from the Medical Cannabis Fines and Penalties Account.
Requires the Bureau to establish a grant program to fund activities by state and local law enforcement to remedy the environmental effects of cannabis cultivation, payable from fines and penalties charged pursuant to the bill after all outstanding loans for the program are repaid.
Appropriates $10 million from the MMRSAF to the Department of Consumer Affairs to begin the activities of the Bureau.
Provides that provisions relating to Joint Sunset Review Committee oversight do not apply to the Bureau.
Ends the legal effect of current law stating patients, individuals with identification cards, or their caregivers, who associate in California to collectively and cooperatively cultivate marijuana for medical purposes shall not solely on the basis of that fact be subject to state criminal sanctions when the Bureau posts a notice on its Internet website that licensing authorities have commenced issuing licenses.
Directs BOE to adopt a system to report the movement of commercial cannabis and cannabis products throughout the distribution chain, which must not duplicate CDFA’s track and trace program. The system must capture specified information regarding:
Amount of tax due by the designated entity,
Name, address, and license number of the designated entity remitting the tax,
Name, address, and license number of the succeeding entity receiving the product,
The transaction date, and
Any other information deemed necessary by BOE for the taxation and regulation of marijuana and marijuana products.
States that no reimbursement for local costs is required because this bill creates a new crime or infraction, among other reasons, but requires reimbursement of local agencies pursuant to existing law if the Commission on State Mandates determines that the bill contains other mandated costs.
States that the measure only becomes active upon the enactment and operation of Assembly Bill 266 and Senate Bill 643 of the 2015-16 Regular Session.
Background
The Compassionate Use Act and SB 420. In 1996, voters approved Proposition 215, known as the Compassionate use Act of 1996. The CUA allowed patients and primary caregivers to obtain and use medical marijuana, as recommended by a physician, and prohibited physicians from being punished or denied any right or privilege for making a medical marijuana recommendation to a patient. In 2003, SB 420 (Vasconcellos, 2003) 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. In addition, despite the CUA and SB 420, marijuana is still illegal under state and federal law.
Local authority over medical marijuana. By exempting qualified patients and caregivers from prosecution for using or from collectively or cooperatively cultivating medical marijuana, the CUA and SB 420 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 (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 SB 420 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. Accordingly, many California jurisdictions, roughly estimated by the League of California Cities at 50% pending completion of a statewide survey, ban the cultivation and sale of medical marijuana altogether.
Environmental concerns. According to some estimates, there are 30,000 cultivation sites in the tri-county area of Humboldt-Mendocino-Trinity, and an additional 10,000 or more cultivation sites elsewhere in California. As a result, California land, watersheds, and some species have been significantly damaged by some cultivation operations. “Trespass grows”, which cultivate 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 DFW, “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 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 salmon and steelhead trout, which are listed under the state and federal Endangered Species Acts, and cause further decline of sensitive amphibian species.
In response, the Budget Act of 2014 appropriated resources for both DFW and SWRCB to reduce environmental damage caused by marijuana cultivation on private and high value state-owned public lands in California. A total of $3.3 million was allocated to the two agencies to create a multi-disciplinary Marijuana Task Force, and to implement a priority-driven approach to address the natural resources damages from marijuana cultivation on private lands in northern California and on high conservation value public lands. This program was authorized as a pilot program for five years.
Some organizations want to remedy the environmental effects of past marijuana cultivation and regulate medical marijuana cultivation more consistently throughout the state.
Comments
Purpose of the bill. The cultivation of marijuana has caused significant damage to California’s natural environment. The potential for future damage is made all the greater by the lack of regulation of the medical marijuana industry, and in particular, the cultivation of medical marijuana. AB 243 creates a regulatory framework around cultivation. The unique identification program allows for the tracking of medicinal marijuana plants to ensure that marijuana is not being diverted to the black market and also allows law enforcement to determine which plants are legally being cultivated for medical purposes and which are being illegally cultivated. This enables swifter eradication actions against illegal grows while avoiding the accidental eradications of legal medicinal plantings. This need is made all the more dire by the current drought, which exacerbates the harm caused by the illegal diversion of water to cultivate marijuana.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
Unknown
California League of Conservation Voters
California Native Plant Society
California State Parks Foundation
California Trout
California Urban Streams Partnership
Clean Water Action
Defenders of Wildlife
Nature Conservancy
Pacific Forest Trust
Trout Unlimited
Trust for Public Land
OPPOSITION: (Verified 9/11/15)
None received
ASSEMBLY FLOOR: 60-15, 6/3/15
AYES: Alejo, Bigelow, Bloom, Bonilla, Bonta, Brown, Burke, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd, Eggman, Frazier, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gomez, Gonzalez, Gordon, Gray, Hadley, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Lackey, Levine, Lopez, Low, Maienschein, McCarty, Medina, Mullin, Nazarian, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
NOES: Achadjian, Travis Allen, Baker, Brough, Chávez, Beth Gaines, Gatto, Grove, Harper, Kim, Linder, Mathis, Melendez, Obernolte, Steinorth
NO VOTE RECORDED: Calderon, Campos, Chang, Dahle, Mayes
Prepared by: Anton Favorini-Csorba / GOV. & F. / (916) 651-4119
9/11/15 18:58:39
**** END ****
AB 243
Page 5
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: AB 243
Amended: 9/1/15 in Senate
SENATE GOVERNANCE & FIN. COMMITTEE: 5-0, 7/8/15
AYES: Hertzberg, Beall, Hernandez, Lara, Pavley
NO VOTE RECORDED: Nguyen, Moorlach
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-0, 7/15/15
AYES: Wieckowski, Hill, Jackson, Leno, Pavley
NO VOTE RECORDED: Gaines, Bates
SENATE APPROPRIATIONS COMMITTEE: 5-0, 8/27/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NO VOTE RECORDED: Bates, Nielsen
ASSEMBLY FLOOR: 60-15, 6/3/15 - See last page for vote
SUBJECT: Medical marijuana cultivation
DIGEST: This bill states the Legislature’s intent to enact legislation that would establish, a dedicated funding source to address environmental damages resulting from illegal cannabis cultivation.
Existing law:
Establishes the Compassionate Use Act, which:
Authorizes the use and cultivation of marijuana for medical purposes.
Allows qualified patients, persons with valid identification cards and the designated primary caregivers of qualified patients and persons with identification cards, who associate in order collectively and cooperatively to cultivate marijuana for medical purposes, are not subject to criminal sanctions solely on the basis of that fact.
Makes it a crime to plant, cultivate, harvest, dry, or process marijuana, except as otherwise authorized by law.
Allows 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.
Regulates various aspects of agricultural production, including water use, pesticide use and land use.
Allows local governments, through their police power, to regulate, restrict, or ban the cultivation or distribution of marijuana within their jurisdictions.
This bill:
States the Legislature’s intent to enact legislation that would establish a dedicated funding source, to address environmental damages resulting from illegal cannabis cultivation.
Makes the enactment of the bill contingent on the enactment of AB 266 (Bonta) and SB 643 (McGuire).
Background
The Compassionate Use Act and SB 420. In 1996, voters approved Proposition 215, known as the Compassionate use Act of 1996 (CUA). The CUA allowed patients and primary caregivers to obtain and use medical marijuana, as recommended by a physician and prohibited physicians from being punished or denied any right or privilege for making a medical marijuana recommendation to a patient. In 2003, SB 420 (Vasconcellos, Chapter 875) 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. In addition, despite the CUA and SB 420, marijuana is still illegal under state and federal law.
Local authority over medical marijuana. By exempting qualified patients and caregivers from prosecution for using or from collectively, or cooperatively cultivating medical marijuana, the CUA and SB 420 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 (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 SB 420 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. Accordingly, many California jurisdictions, roughly estimated by the League of California Cities at 50% pending completion of a statewide survey, ban the cultivation and sale of medical marijuana altogether.
Environmental concerns. According to some estimates, there are 30,000 cultivation sites in the tri-county area of Humboldt-Mendocino-Trinity, and an additional 10,000 or more cultivation sites elsewhere in California. As a result, California land, watersheds and some species have been significantly damaged by some cultivation operations. “Trespass grows”, which cultivate 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 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 salmon and steelhead trout, which are listed under the state and federal Endangered Species Acts and cause further decline of sensitive amphibian species.
In response, the Budget Act of 2014 appropriated resources for both CDFW and the State Water Resources Control Board, to reduce environmental damage caused by marijuana cultivation on private and high value state-owned public lands in California. A total of $3.3 million was allocated to the two agencies to create a multi-disciplinary Marijuana Task Force and to implement a priority-driven approach, to address the natural resources damages from marijuana cultivation on private lands in northern California and on high conservation value public lands. This program was authorized as a pilot program for five years.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
According to the Senate Appropriations Committee, this bill has no fiscal impact.
California Forestry Association
California League of Conservation Voters
California Trout
County of Humboldt Board of Supervisors
County of Mendocino Board of Supervisors
County of Sonoma Board of Supervisors
County of Trinity Supervisor John Fenley
Emerald Growers Association
Mendocino County Sheriff’s Office
Sierra Club California
Small Farmers Association
Sonoma County Water Agency
Trust for Public Land
CaliforniaNORML
Urban Counties Caucus
AYES: Alejo, Bigelow, Bloom, Bonilla, Bonta, Brown, Burke, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd, Eggman, Frazier, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gomez, Gonzalez, Gordon, Gray, Hadley, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Lackey, Levine, Lopez, Low, Maienschein, McCarty, Medina, Mullin, Nazarian, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
NOES: Achadjian, Travis Allen, Baker, Brough, Chávez, Beth Gaines, Gatto, Grove, Harper, Kim, Linder, Mathis, Melendez, Obernolte, Steinorth
NO VOTE RECORDED: Calderon, Campos, Chang, Dahle, Mayes
Prepared by: Anton Favorini-Csorba / GOV. & F. / (916) 651-4119
9/1/15 21:19:38
**** END ****
AB 243 (Wood) Page 0 of 1
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 243 (Wood) - Medical marijuana cultivation.
|
|
Version: August 17, 2015 |
Policy Vote: GOV. & F. 5 - 0, E.Q. 5 - 0 |
Urgency: Yes |
Mandate: Yes |
Hearing Date: August 27, 2015 |
Consultant: Marie Liu |
*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on August 27, 2015
Bill Summary:
AB 243 would express the Legislature’s intent to enact legislation that would establish a dedicated funding source to address environmental damages resulting from illegal cannabis cultivation.
Fiscal Impact:
None
Committee Amendments:
Strike all language and insert intent language.
-- END --
AB 243 (Wood) Page 8 of 8
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 243 (Wood) - Medical marijuana cultivation
|
|
Version: July 2, 2015 |
Policy Vote: GOV. & F. 5 - 0, E.Q. 5 - 0 |
Urgency: Yes |
Mandate: Yes |
Hearing Date: August 17, 2015 |
Consultant: Marie Liu |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
AB 243 would: (1) establish a tax on the cultivation of medical marijuana and the allowable uses of the proceeds, (2) create the Division of Medical Cannabis Cultivation within the Department of Food and Agriculture (CDFA) that would license cultivation and implement a unique identification program for marijuana cultivated in California, and (3) require regional water quality boards to address waste discharges of marijuana cultivation including specified issues.
Fiscal Impact:
Unknown tax revenues, potentially in the mid-tens of millions of dollars annually, that would be deposited into the Marijuana Production and Environment Mitigation Fund (special).
Unknown increased sales tax revenues, potentially in the low millions of dollars, (General Fund) as a result of increased marijuana prices.
Ongoing costs of approximately $3.7 million annually (special*) to the Board of Equalization (BOE) for the administration of the marijuana tax.
Unknown ongoing annual costs, likely in the high hundreds of thousands of dollars or low millions, for the BOE to contract out the administration of the track and trace program.
Unknown ongoing annual costs, likely in the low millions of dollars, (special*) to CDFA to administer the cultivation licenses, identification program, and grant programs.
Ongoing annual costs of $9.9 million (special*) for the Department of Fish and Wildlife (DFW) for necessary enforcement.
Onetime costs of $4.7 million (special*) for taskforce equipment needs.
Ongoing costs of $6.2 million from the Waste Discharge Permit Fund (special) for the State Water Resources Control Board’s (SWRCB) enforcement of waste discharges from marijuana cultivation.
Unknown annual costs, likely in the high hundreds of thousands of dollars, (special*) to the Natural Resources Agency to administer a competitive grant program for environmental cleanup and restoration of public and private lands that have been damaged by illegal marijuana cultivation. These costs are dependent on the ultimate size of the grant program.
Unknown cost pressures, likely in the tens of millions of dollars (special*) for local law enforcement.
Unknown costs (General Fund) for the potential reimbursement of local permitting costs.
*Marijuana Production and Environment Mitigation Fund
Background:
Proposition 215, passed by the voters on November 5, 1996, established the Compassionate Use Act that authorized the use and cultivation of marijuana for medical purposes. The act also made it a crime to plant, cultivate, harvest, dry, or process marijuana, except as otherwise authorized by law.
Under current practice, there is no state licensing or regulation of medical marijuana cultivation or dispensing. At the local level, oversight and regulation is limited and varies by city and county. Some cities or counties have prohibited the operation of commercial medical marijuana operations while others have enacted outright bans on medical marijuana, including personal possession and use. In 2013, the voters in the City of Los Angeles passed Measure D which authorizes a limited number of existing medical marijuana dispensaries that had been in continuous operation since 2007 and had been registered with the City to remain open
The Budget Act of 2014 appropriated $1.5 million and seven positions to DFW and $1.8 million and 11 positions to the SWRCB to create a multi-disciplinary marijuana task force to address the natural resources damages from cultivation on private lands in northern California and on high conservation public lands. In July 2014, DFW and SWRCB prepared a strategic plan that called for DFW to investigate and enforce violations of illegal streambed alterations associated with marijuana production (implemented by the “Watershed Enforcement Team” or WET) and SWRCB to investigate and enforce violations of water quality law including unauthorized diversions of surface water. As a result of the program, regional boards are developing conditional waivers of waste discharge requirements, DFW and SWRCB have conducted public education and outreach about safe environmental practices for cultivations, the WET has performed 42 site inspections of which most will result in administrative civil liability actions and cleanup orders, and improved interagency coordination. DFW and SWRCB submitted a report on their progress, as required by the budget, titled “Joint Report to the Legislature on the Department of Fish and Wildlife and State Water Resources Control Board pilot project to address the Environmental Impacts of Cannabis Cultivation (Watershed Enforcement Team).” The report also included recommendations to the Legislature on needed statutory changes including enhanced streambed alteration agreement fees, additional laws related to water trucks diverting stream flow on fish-bearing waterways, and public funds to remediate orphaned and abandoned sites.
Proposed Law:
This bill would generally require that indoor and outdoor medical marijuana cultivation be conducted in accordance with state and local laws and that the following state agencies are required to address environmental impacts of medical marijuana cultivation: State Board of Forestry and Fire Protection (board), the Department of Fish and Wildlife (DFW), the State Water Resources Control Board (SWRCB) and the regional water quality control boards, and traditional state law enforcement agencies.
Tax on marijuana cultivation: This bill would establish the Medical Marijuana Tax Law which would establish a tax on all cannabis flowers, leaves, and immature plants. The tax would be imposed on cultivators but collected by the “designated entity,” which is defined in the bill as a blank or an entity designated by the Board of Equalization (BOE). The tax would be assessed on the amounts of flowers, leaves, and immature plants sold to the designated entity and the amount of taxes would be required to be reflected on the sales receipt given to the cultivator. Any claim for exemption from the tax would be required to be in a process prescribed by the BOE. The BOE would be authorized to prescribe, adopt, and enforce regulations to implement this law. The BOE would be authorized to adopt emergency regulations in accordance with the Administrative Procedures Act.
The tax would be implemented no earlier than the first day of the first calendar quarter that is more than 270 days after adequate funding has been received by the BOE to implement these requirements.
The BOE would be required to adopt a track and trace process for the purpose of reporting the movement of cannabis and cannabis products throughout the distribution chain.
Tax revenues would be deposited into the Marijuana Production and Environment Mitigation Fund (fund), which would be created by this bill in the State Treasury, less BOE’s administrative costs. The fund would also collect all interest, penalties, and other amounts collected under these provisions. The fund would be continuously appropriated as follows:
10% to the Division of Medical Cannabis Cultivation to administer the unique identifier program (see below).
30% to the Division of Medical Cannabis Cultivation to fund competitive grants to local and state law enforcement-related activities related to illegal marijuana cultivation. The division would be required to promulgate guidelines for the program by April 1, 2016.
30% to the Natural Resources Agency (CNRA) to fund competitive grants for environmental cleanup and restoration of public and private lands that have been damaged by illegal marijuana cultivation. Projects should be prioritized based on the level of damages that have occurred with at least 35% of the funds to be used on public lands and at least 20% of the funds to be used on private lands. Grants may be given to the state, local governments, and nonprofit organizations that engage in environmental cleanup and restoration. CNRA would be required to promulgate guidelines for this grant program by April 1, 2016.
30% to the multiagency taskforce (see below) to respond to the damages caused by marijuana cultivation on public and private lands.
Licensing: This bill would create the Division of Medical Cannabis Cultivation (division) CDFA. The division would license marijuana cultivation. A cultivator would be required to first receive a permit from the relevant county or city. However, after March 1, 2016, if the county or city has expressly chosen not to administer a permit for cultivation, the division may be the sole licensing authority.
Identification Program: The division would also be required to implement a unique identification program, in consultation with SWRCB and DFW, which considers water use and environmental impacts. The identification program would be required to include a unique identifier that would be attached to the base of each plant. The division would be authorized to charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each plant.
This bill would allow a county board of supervisors or city council to choose to be the responsible entity of administering the unique identification program, in which case, the county or city would be authorized to charge a fee to cover their administrative costs in addition to any other local fees or taxes imposed by the local government.
The multiagency taskforce: This bill would codify the multiagency task force that was created by the “DFW and SWRCB pilot project to address the Environmental Impacts of Cannabis Cultivation” (taskforce) and charge it with responding to the damages caused by marijuana cultivation on public and private lands in California. The bill would require the taskforce to continue on a permanent basis and to expand its efforts on a statewide level.
Water quality impacts: This bill would allow the SWRCB, and require the regional water quality control boards, to address waste discharges from medical marijuana cultivation and associated activities. This bill would require the regional boards’ efforts to address items including, but not limited to, stream crossings, riparian and wetland protection, soil disposure, water storage and use, irrigation runoff, fertilizers and soils, and cultivation-related waste.
Reporting requirements: This bill would require the BOE to report the total amount of revenue that was collected for a five year period after five years and 180 days past the operative date of the tax.
Additionally, this bill would require the following reports to be submitted to the Legislature by January 1, 2021 for the purpose of determining the necessity of readjusting the marijuana tax:
The taskforce to report on the addressing of the environmental impacts of marijuana cultivation and how the tax revenues have been used to address the environmental impacts.
The Department of Justice (DOJ) to report on how law enforcement agencies have used tax revenues to address illegal marijuana cultivation and related activities.
CNRA to report on how the tax revenues have been used for environmental cleanup and restoration of public and private lands that have been damaged from illegal cultivation.
This bill is an urgency measure.
Related Legislation:
SB 643 (McGuire) would enact the Medical Marijuana Public Safety and Environmental Protection Act and creates a regulatory structure for many aspects of medical marijuana including licensing of dispensing facilities, cultivation sites, transporters, and manufacturers; allows local jurisdictions to level local taxes; distributes funding to various environmental agencies to enforce regulations related to marijuana cultivation.
AB 266 (Bonta) would enact the Medical Cannabis Regulation and Control Act which would create a state and local licensing and regulatory structure for the regulation of medical cannabis in the state. The bill would establish a new Office of Medical Cannabis Regulation within the Office of the Governor to oversee state regulatory efforts and would also require several other state agencies to assume licensing and regulatory responsibilities.
Staff Comments:
Tax revenues: By creating a new tax, this bill will result in new revenue. As the amount of the tax is not specified in the current version of the bill, the potential revenues are unknown. For reference, an earlier version of this bill specified a $50 tax per medical marijuana plant. The BOE has estimated that there are approximately 1.18 million marijuana plants cultivated in California. Under this assumption, a $50/plant tax would result in approximately $59 million in revenue. While in the current version of the bill changes the method by which the tax is assessed and the rates are not specified, the author’s staff has expressed intent to set the rates at a level that would have produced the same revenues as $50/plant rate.
The BOE also anticipates additional sales tax revenues under the assumption that the new tax on cultivators will be incorporated into the selling price of marijuana. The increase in price will thereby increase the amount of sales tax revenue received by the state, perhaps in the low millions of dollars.
BOE administrative costs: The BOE’s estimates on administrative costs are preliminary, but are currently estimated at approximately $3.7 million ongoing. There may also be some additional start-up costs in the low hundreds of thousands of dollars. These costs do not include the cost of the track and trace program required by the bill. Staff estimates that the magnitude of these costs will likely be dependent on the overlap with the division’s identification program but will likely be at least in the high hundreds of thousands of dollars.
The BOE noted in its analysis of the July 2nd version of this bill that a tax administered and collected by the division on each unique identifier would save BOE-related implementation, administrative, and collection costs and would eliminate the need for an entity to collect the tax from a licensed cultivator. Reducing administrative costs would maximize revenues that may be used for the bill’s specified uses.
CDFA costs: Under this bill, CDFA would be responsible for licensing all marijuana cultivation, administering the unique identification program, and disbursing local law-enforcement related grants. These costs are likely in the low-millions of dollars.
SWRCB and DFW costs: To make the taskforce permanent and statewide, DFW anticipates needing $9.9 million annually for 75 enforcement, scientific, and administration positions which will be phased in over two years. Additionally, the first year will have $4.7 million in onetime costs including warden equipment and training and equipment. DFW notes that equipment needs include a helicopter which is necessary because the most egregious environmental violations are occurring in areas that are inaccessible to vehicle traffic. A helicopter will allow DFW to properly remove garbage, pesticides, and other grow site infrastructure with less personnel hours and less risk for injury. These costs would come from tax revenues deposited in the fund.
The SWRCB anticipates needing an additional $6.2 million for 44 positions and $100,000 in contracts for its responsibilities as part of the task force and for enforcement of waste discharge permits. The SWRCB notes that bringing illegal operations into legal cultivation will require an enormous enforcement and education campaign and therefore there is uncertainty in its estimates. Because the SWRCB has fee authority to enforce its permitting program, it would anticipate that the tax revenue in the fund would cover DFW’s costs, while its costs would come from the Waste Discharge Permit Fund. The SWRCB notes that it anticipates having difficulties in collecting the permit fees from the industry and it may need support from the General Fund or the fund in the early years of the program until sufficient fee revenue is collected and compliance is high.
Potential legal costs: The DOJ notes that it will potentially have significant legal costs for its client agencies (i.e. CDFA, the SWRCB and regional boards, and DFW). Specifically, the DOJ notes that it would represent CDFA should license denials be challenged. Additionally, there may be significant new litigation costs associated with the enforcement of state and federal environmental and water quality laws especially given the impacts associated with illegal and unauthorized marijuana cultivation and current water shortages.
Cost and revenue uncertainty: The revenue estimates given above assume high levels of compliance by the marijuana cultivation industry. However, the distribution chain is not fully established in this bill, thereby making it unclear whether OBE will be able to properly track all cultivation and sales. For example, while all cultivators would be required to obtain a permit from the division, there are no requirements that all marijuana must be sold to a “designated entity.” Without establishing an explicit distribution chain, and significant penalties for exchanges outside the chain, it is unclear whether the tax can effectively be collected.
Relatedly, the lack of an explicit distribution chain can increase enforcement costs as it may be difficult to identify compliant and illegal operations.
Continuous appropriation: The tax revenues from the marijuana tax would continuously appropriated under this bill. Staff notes that continuous appropriations undermine the ability, and the constitutional responsibility, for the Legislature to provide oversight through the budget process on the funded programs. Legislative oversight over the use of the tax proceeds is especially important given the large new program expansions created in this bill.
Potential reimbursable mandate: This bill creates a state mandated-local program by increasing the duties of local officials relative to issuing a conditional permit to cultivate medical marijuana, specifically the local permit cannot become active upon licensing by the division. If the Commission on State Mandates determines that this is a mandate, the state would be required to reimburse locals for their associated costs.
State funds for local law enforcement responsibilities: This bill would direct a portion of the tax monies to fund local law enforcement efforts in regards to illegal marijuana cultivation. While recognizing that local law enforcement needs related to marijuana cultivation likely far exceeds local resources, the committee may wish to consider whether state funds should be provided for local responsibilities.
At a minimum, the Legislature may wish to ensure that these funds are used to supplement rather than supplant local resources. As an example, the state provides law enforcement agencies grants to enforce off-highway vehicle (OHV) recreation. That grant program subjects law enforcement entities that receive funds to be subject to a financial and performance audit at least once every five years and requires the local law enforcement program related to OHV to have specified elements.
By creating a grant program for local law enforcement activities, this bill creates cost pressures at least in the tens of millions of dollars on the state to fund those activities.
Other issues: In addition to issues previously discussed, staff notes that the following are policy and fiscal issues that may still need to be resolved in this bill:
The “designated entity” needs to be defined.
The tax rate needs to be specified.
Guidelines for the competitive grant programs for law enforcement costs and environmental cleanup and restoration costs implemented by the division and CNRA, respectively, are required to be developed by April 1, 2016. This deadline is likely too short given that regulations typically take at least one year to develop.
This bill allows the division to both receive a portion of the tax for administrative costs but also to impose a fee to cover its administrative costs. Staff recommends that costs be recovered either by a fee or tax revenues, but not both.
This bill specifies that the division is to license marijuana cultivation; however there are no conditions for licensing other than local permits have been obtained, if applicable. It is unclear if the licensing program is solely for the purpose of registration for the purpose of the unique identification program.
This bill specifies that the unique identification program consider water use and environmental impacts. It is unclear how an identification program is to accomplish this.
This bill intends on codifying the WET, the task force formed by DFW and SWRCB as a result of funding provided in the 2014 budget , by referring to the title of its report to the Legislature, “Department of Fish and Wildlife and State Water Resources Control Board pilot project to address the Environmental Impacts of Cannabis Cultivation.” Staff notes that this is an awkward reference and it may be clearer either to just require DFW and the SWRCB to form a taskforce to address marijuana cultivation impacts or perhaps to reference the strategic plan developed by the two agencies.
This bill would create a permanent funding source for the taskforce to address the impacts of marijuana cultivation. Staff recommends that the bill limit the taskforce’s responsibilities to illegal marijuana cultivation and orphaned sited as the impacts of legal operations should be the responsibility of the cultivator.
This bill appears to use the words marijuana and cannabis interchangeably even in the definition of “marijuana.” For the sake of clarity, the author may choose to use a single term unless a difference is intended.
The DOJ will likely have minor and absorbable costs to complete the reporting on the use of grants to law enforcement agencies from the Marijuana Production and Environment Mitigation Fund. However, staff notes that it is not clear why this reporting responsibility should be assigned to the DOJ rather than the division given that the division is the entity that is responsible for administering the grants.
-- END --
AB 243 (Wood) Page 6 of 6
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Wieckowski, Chair
2015 - 2016 Regular
Bill No: AB 243
Author: |
Wood |
||
Version: |
7/2/2015 |
Hearing Date: |
7/15/2015 |
Urgency: |
Yes |
Fiscal: |
Yes |
Consultant: |
Rachel Machi Wagoner |
||
SUBJECT: Medical marijuana cultivation.
ANALYSIS:
Existing law:
Under the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election,
Authorizes the use and cultivation of marijuana for medical purposes.
Makes it a crime to plant, cultivate, harvest, dry, or process marijuana, except as otherwise authorized by law.
Qualified patients, persons with valid identification cards, and the designated primary caregivers of qualified patients and persons with identification cards, who associate in order collectively and cooperatively to cultivate marijuana for medical purposes, are not subject to criminal sanctions solely on the basis of that fact.
Under the Porter-Cologne Water Quality Control Act, the State Water Resources Control Board (SWRCB) and the California regional water quality control boards (regional boards) are the principal state agencies with responsibility for the coordination and control of water quality in the state.
This bill:
Establishes the Division of Medical Cannabis Cultivation (division) in the Department of Food and Agriculture.
Authorizes a county, city, or city and county to issue or deny a conditional permit to cultivate medical marijuana and would require an applicant to obtain both a conditional permit from the county, city, or city and county and a state medical marijuana cultivation license from the division prior to cultivation occurring. By increasing the duties of local officials relative to issuing a conditional permit to cultivate medical marijuana, the bill would impose a state-mandated local program.
Requires the division to implement an identification program for medical marijuana in consultation with the State Water Resources Control Board (SWRCB) and the Department of Fish and Wildlife.
Authorizes the division to charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each medical marijuana plant.
Allows a county, city, or city and county to administer the unique identifier program, in which case the bill would authorize the county, city, or city and county, to charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each medical marijuana plant.
Specifies that the unique identifier program established pursuant the bill’s provisions does not apply to a county, city, or city and county that has an existing ordinance pertaining to the cultivation of marijuana that provides for the identification of individual plants during the cultivation period.
Imposes, on and after June 1, 2016, a tax on a licensed medical marijuana cultivator, at the rate of $50 per medical marijuana plant with a unique identifier.
Requires the tax to be administered by the State Board of Equalization, as prescribed, and would require a licensed medical marijuana distributor to collect the tax from the licensed medical marijuana cultivator and remit the amounts collected pursuant to the procedures set forth in the Fee Collection Procedures Law. By expanding the application of the Fee Collection Procedures Law, a violation of which is a crime, this bill would impose a state-mandated local program. This bill would require all moneys less refunds, to be deposited into the Marijuana Production and Environment Mitigation Fund, which this bill would create in the State Treasury, and continuously appropriate those moneys to the board for allocation, as specified. The bill would require a licensed medical marijuana cultivator to sell his or her medical marijuana products only to a licensed medical marijuana distributor, and would prohibit any other sales of medical marijuana by a licensed medical marijuana cultivator. The bill would also prohibit the sale of medical marijuana plants that do not contain a unique identifier by a licensed cultivator to a licensed distributor.
Requires, on or before January 1, 2021, specified state agencies, including, among others, SWRCB, the division, and the Department of Justice, to submit reports to the Legislature regarding implementation of the bill.
Specifies that its provisions regarding the unique identifier program and cultivation do not apply to certain qualified patients cultivating marijuana if the patient cultivates marijuana for his or her personal medical use and does not sell, distribute, donate, or provide marijuana to any other person or entity, or to certain primary caregivers cultivating marijuana if the primary caregiver cultivates marijuana exclusively for the personal medical use of no more than five specified qualified patients for whom he or she is the primary caregiver and who does not receive remuneration, except as specified.
Requires indoor and outdoor medical marijuana cultivation to be conducted in accordance with state and local laws and best practices related to land conversion, grading, electricity usage, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters. This bill would require state agencies to address environmental impacts of medical marijuana cultivation and coordinate, when appropriate, with cities and counties and their law enforcement agencies in enforcement efforts.
States the intent of the Legislature that the multiagency task force, the Department of Fish and Wildlife and SWRCB pilot project to address the Environmental Impacts of Cannabis Cultivation, continue its enforcement efforts on a statewide level and permanent basis.
Requires each regional board, and allows SWRCB, to address discharges of waste resulting from medical marijuana cultivation and associated activities.
Declares that it is to take effect immediately as an urgency statute.
Background
The Compassionate Use Act (CUA) and SB 420. In 1996, voters approved Proposition 215, known as the Compassionate Use Act of 1996 (CUA). The CUA allowed patients and primary caregivers to obtain and use medical marijuana, as recommended by a physician, and prohibited physicians from being punished or denied any right or privilege for making a medical marijuana recommendation to a patient. In 2003, SB 420 (Vasconcellos, Chapter 875, Statutes of 2003) 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. In addition, despite the CUA and SB 420, marijuana is still illegal under state and federal law.
Local Authority Over Medical Marijuana. By exempting qualified patients and caregivers from prosecution for using or from collectively or cooperatively cultivating medical marijuana, the CUA and SB 420 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 (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 SB 420 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. Accordingly, many California jurisdictions, roughly estimated by the League of California Cities at 50% pending completion of a statewide survey, ban the cultivation and sale of medical marijuana altogether.
Environmental Concerns. According to some estimates, there are 30,000 cultivation sites in the tri-county area of Humboldt-Mendocino-Trinity, and an additional 10,000 or more cultivation sites elsewhere in California. As a result, California land, watersheds, and some species have been significantly damaged by some cultivation operations. “Trespass grows”, which cultivate 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 exceeded stream flow in three of four study watersheds.
“Marijuana cultivation has proliferated in northwestern California since at least the mid-1990s. The environmental impacts associated with marijuana cultivation appear substantial, yet have been difficult to quantify, in part because cultivation is clandestine and often occurs on private property…..”
“We estimated water demand of marijuana irrigation and the potential effects water diversions could have on stream flow in the study water sheds. Our results indicate that water demand for marijuana cultivation has the potential to divert substantial portions of streamflow in the study watersheds, with an estimated flow reduction of up to 23% of the annual seven-day low flow in the least impacted of the study watersheds. Estimates from the other study watersheds indicate that water demand for marijuana cultivation exceeds streamflow during the low-flow period. In the most impacted study watersheds, diminished streamflow is likely to have lethal or sub-lethal effects on salmon and steelhead trout, which are listed under the state and federal Endangered Species Acts, and cause further decline of sensitive amphibian species.”
In response, the Budget Act of 2014 appropriated resources for both CDFW and the SWRCB to reduce environmental damage caused by marijuana cultivation on private and high value state-owned public lands in California. A total of $3.3 million was allocated to the two agencies to create a multi-disciplinary Marijuana Task Force, and to implement a priority-driven approach to address the natural resources damages from marijuana cultivation on private lands in northern California and on high conservation value public lands. This program was authorized as a pilot program for five years.
Some organizations want to remedy the environmental effects of past marijuana cultivation and regulate medical marijuana cultivation more consistently throughout the state.
Comments
Purpose of Bill. The author states that the cultivation of marijuana has caused significant damage to California’s natural environment. The potential for future damage is made all the greater by the lack of regulation of the medical marijuana industry, and in particular, the cultivation of medical marijuana. According to the author, for the past 20 years, medical marijuana growers and medical marijuana patients have lived in a gray area where state and federal law are in direct conflict, which has prevented the establishment of reasonable environmental protections to already impacted watersheds.
The author states that AB 243 creates a regulatory framework around cultivation. The unique identification program allows for the tracking of medicinal marijuana plants to ensure that marijuana is not being diverted to the black market and also allows law enforcement to determine which plants are legally being cultivated for medical purposes and which are being illegally cultivated. This enables swifter eradication actions against illegal grows while avoiding the accidental eradications of legal medicinal plantings.
Furthermore, the author asserts that AB 243 establishes a tax that meets an urgent need for funding to address the impacts of illegal marijuana cultivation. The author believes that this need is made all the more dire by the current drought, which exacerbates the harm caused by the illegal diversion of water to cultivate marijuana.
DOUBLE REFERRAL: This measured was heard in the Senate Governance and Finance Committee on July 8, 2015 and passed out of that committee on a vote of 5-0. The provisions of the bill pertaining to relating to local agencies’ permitting and land use authority and taxation were considered by Senate Governance and Finance Committee.
The role of SWRCB and potential impacts to the environment are within the jurisdiction of the Senate Environmental Quality Committee.
SOURCE:
Author
SUPPORT:
California Trout
California Cattlemen’s Association
California Narcotic Officers’ Association
Defenders of Wildlife
Emerald Growers Association
Green California
Humboldt Redwood Company
Mendocino County Sheriff-Coroner, Thomas D. Allman
Nature Conservancy
Sierra Club California
Sonoma County Water Agency
Trout Unlimited
Trust for Public Land
OPPOSITION:
Urban Counties Caucus
-- END --
AB 243 (Wood) 7/2/15 Page 7 of 7
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Robert M. Hertzberg, Chair
2015 - 2016 Regular
Bill No: |
AB 243 |
Hearing Date: |
7/8/15 |
Author: |
Wood |
Tax Levy: |
Yes |
Version: |
7/3/15 |
Fiscal: |
Yes |
Consultant: |
Favorini-Csorba and Grinnell |
||
MEDICAL MARIJUANA CULTIVATION
Enacts a new regulatory framework for the cultivation of medical marijuana and authorizes the Board of Equalization to tax medical marijuana cultivation.
Background and Existing Law
The Compassionate Use Act (CUA) and SB 420. In 1996, voters approved Proposition 215, known as the Compassionate use Act of 1996 (CUA). The CUA allowed patients and primary caregivers to obtain and use medical marijuana, as recommended by a physician, and prohibited physicians from being punished or denied any right or privilege for making a medical marijuana recommendation to a patient. In 2003, SB 420 (Vasconcellos, 2003) 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. In addition, despite the CUA and SB 420, marijuana is still illegal under state and federal law.
Local Authority Over Medical Marijuana. By exempting qualified patients and caregivers from prosecution for using or from collectively or cooperatively cultivating medical marijuana, the CUA and SB 420 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 (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 SB 420 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. Accordingly, many California jurisdictions, roughly estimated by the League of California Cities at 50% pending completion of a statewide survey, ban the cultivation and sale of medical marijuana altogether.
Environmental Concerns. According to some estimates, there are 30,000 cultivation sites in the tri-county area of Humboldt-Mendocino-Trinity, and an additional 10,000 or more cultivation sites elsewhere in California. As a result, California land, watersheds, and some species have been significantly damaged by some cultivation operations. “Trespass grows”, which cultivate 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 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 salmon and steelhead trout, which are listed under the state and federal Endangered Species Acts, and cause further decline of sensitive amphibian species.
In response, the Budget Act of 2014 appropriated resources for both CDFW and the State Water Resources Control Board to reduce environmental damage caused by marijuana cultivation on private and high value state-owned public lands in California. A total of $3.3 million was allocated to the two agencies to create a multi-disciplinary Marijuana Task Force, and to implement a priority-driven approach to address the natural resources damages from marijuana cultivation on private lands in northern California and on high conservation value public lands. This program was authorized as a pilot program for five years.
Some organizations want to remedy the environmental effects of past marijuana cultivation and regulate medical marijuana cultivation more consistently throughout the state.
Proposed Law
Assembly Bill 243 prohibits the cultivation of medical marijuana without first obtaining a license or permit from both the state and the relevant city or county, or city and county, in which the cultivation will occur. To carry out this prohibition, AB 243 establishes new regulatory requirements for medical marijuana cultivation and taxes marijuana cultivation, as described below. However, qualified patients and primary caregivers, as defined under Proposition 215, may cultivate marijuana without state or local licenses, unless a local government imposes a separate requirement.
State Regulation of Cultivation. The bill creates a Division of Medical Cannabis Cultivation (the Division) within the California Department of Food and Agriculture (CDFA) to oversee implementation of the new state regulatory program and issue state licenses for cultivation. The Division is headed by a gubernatorial appointee. The bill charges the Division with establishing a program to uniquely identify medical marijuana plants, in consultation with the State Water Resources Control Board and the Department of Fish and Wildlife. The program must issue a unique identifier to each plant that enables identification of permitted plants as they are being cultivated. The unique identifier must be attached to the base of the marijuana plant. In implementing the program, the Division must consider water use and environmental impacts. The Division may also charge a reasonable fee to cover the cost of issuing the unique identifiers and monitoring, tracking, and inspecting permitted plants.
Local Authority. AB 243 also authorizes a city, county, or city and county, through its current or future land use regulations or ordinance, to issue or deny permits that allow the cultivation of medical marijuana, with the condition that the permit does not become active until the cultivator receives a state license and final local approval. The local government may inspect the site proposed for cultivation prior to issuing the permit. AB 243 prohibits a cultivator from applying for a state license without receiving the required local approval, or if the local government has prohibited medical marijuana cultivation.
If the relevant local government has not implemented a local permitting system by March 1, 2016, the Division becomes the sole regulator in that jurisdiction. However, the bill also allows a local government to choose to administer the unique identification program in place of the state by adopting a resolution or ordinance before July 1, 2018. In addition, the state program does not apply in cities or counties that have an existing program for the unique identification of marijuana plants.
Taxing Provisions. AB 243 directs the Board of Equalization (BOE) to administer and collect a tax on cultivating medical marijuana at a rate of $50 per plant that has a unique identifier, administered according to the Fee Collections Procedures Law. Medical marijuana distributors collect the tax as a separately stated item from licensed cultivators, and may retain reimbursement for its costs according to regulations BOE will prescribe. The cultivator is liable for the tax until the distributor pays BOE, and the tax is due and payable on the last day of the month following each quarterly period. Distributors must register with BOE and supply specified information, and pay the tax electronically. The measure contains provisions for BOE to implement the tax, including authority to issue regulations. The bill bars cultivators from selling marijuana products or any other sales of medical marijuana to anyone other than a licensed distributor, and cultivators cannot sell plants without unique identifiers. BOE must deposit revenues less administrative costs in the Marijuana Production and Environment Mitigation Fund, which the bill creates. The bill continuously appropriates the revenues to BOE and specifies that BOE must distribute the $50 per plant charge in the following manner:
$5 to the Division to administer the unique identifier program;
$15 to the division for a competitive grant program that allocates funds to state and local law enforcement agencies to prosecute illegal marijuana cultivation. A local law enforcement agency is only eligible for these funds if its local government chooses to administer the unique identifier program.
$15 to the California Natural Resources Agency to fund a competitive grant program for environmental cleanup and restoration. Of that $15, at least 35% must be used on public lands and 20% must be used on private lands. The agency must develop guidelines for the grant process by April 1, 2016.
$15 to the multiagency task force to address the environmental impacts of cannabis cultivation.
Required Reporting. The bill requires several reports to be submitted by January 1, 2021, including reports by:
BOE, on the total amount of revenue collected from the tax on cultivation.
The multiagency task force, on the progress of the project to address environmental impacts of cannabis cultivation and the use of funds received from the tax.
The California Department of Justice, on the use of funds provided by the tax to state and local law enforcement
The California Natural Resources Agency, on the use of funds for environmental restoration.
Environmental Regulation. AB 243 states the Legislature’s intent that the multiagency task force should continue on a permanent basis. It also directs state agencies to address the environmental impacts of medical marijuana cultivation and coordinate with cities and counties, where appropriate, on law enforcement efforts. The bill also requires all Regional Water Quality Control Boards, and authorizes the State Water Resources Control Board (SWRCB) to take various regulatory actions to address discharges of waste resulting from medical marijuana cultivation and the associated environmental effects.
State Revenue Impact
No estimate.
Comments
1. Purpose of the bill. The cultivation of marijuana has caused significant damage to California’s natural environment. The potential for future damage is made all the greater by the lack of regulation of the medical marijuana industry, and in particular, the cultivation of medical marijuana. AB 243 creates a regulatory framework around cultivation. The unique identification program allows for the tracking of medicinal marijuana plants to ensure that marijuana is not being diverted to the black market and also allows law enforcement to determine which plants are legally being cultivated for medical purposes and which are being illegally cultivated. This enables swifter eradication actions against illegal grows while avoiding the accidental eradications of legal medicinal plantings. Furthermore, AB 243 establishes a tax that meets an urgent need for funding to address the impacts of illegal marijuana cultivation. This need is made all the more dire by the current drought, which exacerbates the harm caused by the illegal diversion of water to cultivate marijuana.
2. Home Rule. AB 243 prohibits a local government from deciding to administer the unique identification program after July 1, 2018. This limits local governments’ ability to adjust to changes to a relatively nascent industry. Although currently concentrated in the “Emerald Triangle,” future policy changes and other factors could significantly change where marijuana is cultivated in the state after the July 1, 2018 date has passed. As a result, some jurisdictions that initially saw no need to administer the program themselves may be prevented from responding to emerging marijuana-related challenges at the local level. Furthermore, the measure is unclear on the scope of CDFA’s regulatory authority and how this authority interacts with local governments’ exercise of their police powers. Would their authority be limited to simply issuing unique identifiers to anyone who paid the fee? Or, when considering water use and environmental impacts, would CDFA be able to place additional conditions on the state license, such as to specify the locations where marijuana can be cultivated or how it is grown? In jurisdictions where no local agencies chose to act by July 1, 2018, would CDFA regulations completely preempt local authority to regulate marijuana cultivation? The bill raises serious questions about whether state authority should trump local decisions on the issue of medical marijuana.
3. Let’s be clear. The measure is ambiguous on several points, including the following:
AB 243 provides that the regulatory program is to be overseen by an appointee within CDFA. However, the taxing provisions of the measure would be implemented by the Board of Equalization. It is unclear whether an appointee at CDFA is intended to direct the BOE taxing effort.
It is unclear whether this measure is intended to apply to all cities and counties in the state. AB 243 may not apply to charter cities, which are afforded additional control over their “municipal affairs” by the California Constitution, because it does not include findings and declarations identifying marijuana cultivation as a matter of statewide concern.
The bill does not clearly state that receiving a unique identifier is sufficient—or even necessary—for a cultivator to receive a license from the state.
4. Redundant. AB 243 states that local governments may use their current and future land use regulatory authority to issue or deny cultivation permits. However, local agencies already possess this authority under the police power granted to them by the Constitution. Thus it is unclear what additional powers AB 243 grants local governments. The bill also adds unnecessary complication and administrative costs for local governments by requiring a “conditional permit” at the local level that only goes into effect when a state license is issued. Because AB 243 already prohibits the cultivation of marijuana without both a state license and local permit, where applicable, a cultivator who only possesses a local permit could not cultivate marijuana, regardless of whether the local permit was conditional or final.
5. Taxing. AB 243 seeks to apply a tax infrastructure on medical marijuana cultivation, a currently unregulated sector of the economy. BOE would have to identify every cultivator and distributor in the state, register them, and enforce the tax on a set of taxpayers that currently lack a relationship with BOE in a manner sufficient to prevent noncompliance by June 1, 2016. However, the measure’s tax provisions are sparse, and don’t contain needed definitions and other provisions necessary for BOE to implement the bill even if it were practically possible to impose a tax regime on a currently black market. Additionally, implementing such a tax could be very costly to administer because of the required spending on personnel, equipment, and information technology. Furthermore, although this bill’s intent is to raise funds quickly to address the environmental impacts of cultivation, it is unclear whether this tax will begin collecting funds as quickly as hoped. There are other sources of funding, such as the General Fund or bond funds made available by a recently passed state water bond that could be available to fund restoration sooner if the Legislature determined that this was more important than other priorities.
6. Related legislation. There are two other medical marijuana bills progressing through the Legislature that establish comprehensive regulatory programs and levy fees on medical marijuana. Senate Bill 643 (McGuire), which the Committee passed earlier this year by a vote of 5-1, enacts the Medical Marijuana Public Safety and Environmental Protection Act. SB 643 is currently pending in the Assembly Business and Professions Committee. SB 643 creates a regulatory structure for many aspects of medical marijuana in California, but differs from AB 243 in many respects, including that it:
Establishes an office within the Business, Consumer Services, and Housing Agency to license and regulate dispensing facilities, cultivation sites, transporters, and manufacturers of medical marijuana and medical marijuana products, and describes a comprehensive set of rules to govern those activities, rather than establishing an office within CDFA to solely regulate cultivation.
Allows local jurisdictions to levy local taxes, subject to voter approval, on the privilege of cultivating, dispensing, producing, processing, preparing, storing, providing, donating, selling, or distributing marijuana, rather than imposing a state tax on cultivation.
Distributes funding to a wide range of state environmental agencies to enforce regulations related to the environmental impact of licensed cultivation sites, rather than directing the SWRCB and CDFW to address the impacts and continue their pilot project.
Clarifies that it does not supersede local zoning requirements or enforcement of local licensing requirements.
AB 266 (Bonta), which the Committee will hear on July 15, enacts the Medical Cannabis Regulation and Control Act. AB 266 also creates a broad regulatory structure for many aspects of medical marijuana in California, and differs from AB 243 in many respects, including that it:
Establishes multiple offices in various state agencies, under the direction of a newly created Governor’s Office of Medical Cannabis Regulation, for the regulation of medical marijuana, including within the BOE, CDFA, and Department of Public Health. AB 243 creates the same office within CDFA, but not the other offices created by AB 266.
Provides for the regulation and licensing of medical marijuana dispensaries, transporters, dispensaries, manufactures, and certification of employees and testing laboratories in addition to regulating and licensing cultivation, and authorizes the collection of licensing fees.
Requires the adoption of health and safety standards for medical cannabis, as well as standards for driving under the influence of marijuana.
Allows local jurisdictions to levy local taxes, subject to voter approval, on the privilege of cultivating, dispensing, producing, processing, preparing, storing, providing, donating, selling, or distributing marijuana, rather than imposing a state tax on cultivation.
Provides that nothing in the Act prevents a local government from adopting or enforcing an ordinance or other law that bans or regulates the location, operation, or establishment of a licensee or other person that engages in commercial cannabis activity.
Requires DFW to promulgate regulations for the protection of any species affected by cultivation activity, and regulations for any cultivation-related development, including alteration of waterways, in addition to requiring SWRCB to develop regulations on discharges
7. Double-referred. The Senate Rules Committee ordered a double-referral of AB 243 --- first to the Senate Governance and Finance Committee, which has jurisdiction over bills relating to local agencies’ land use authority, and then to the Senate Environmental Quality Committee, which has jurisdiction over bills relating to water quality, toxic substances, pesticides, and waste discharges.
8. Urgency. As an urgency measure, AB 243 would take effect immediately upon signature of the Governor. The bill states that an urgency measure is necessary because of the need to address the damage done by illegal marijuana cultivation at the earliest time possible.
9. Tax increase. Because the measure would result in an increase in tax on any taxpayer according to Section 3 of Article XIIIA of the California Constitution, Legislative Counsel has keyed the measure a 2/3 vote.
10. Mandate. The California Constitution generally requires the state to reimburse local agencies for their costs when the state imposes new programs or additional duties on them. According to the Legislative Counsel’s Office, AB 243 creates a new state-mandated local program because it increases the duties of local officials. AB 243 says that if the Commission on State Mandates determines that it creates a state-mandated local program, the state must reimburse local agencies by following the existing statutory process for mandate claims.
Assembly Actions
Assembly Agriculture Committee: 6-2
Assembly Environmental Safety and Toxic Materials Committee: 6-0
Assembly Appropriations Committee: 13-1
Assembly Floor: 60-15
Support and Opposition
(7/2/15)
Support: California League of Conservation Voters; California Trout; County of Sonoma Board of Supervisors; County of Trinity Supervisor John Fenley, District 5; Emerald Growers Association; Sierra Club California; Small Farmers Association; Sonoma County Water Agency; Trust for Public Land.
Opposition: Urban Counties Caucus.
-- END --
AB 243
Page 2
ASSEMBLY THIRD READING
AB 243
(Wood)
As Amended June 1, 2015
Majority vote
Committee |
Votes |
Ayes |
Noes |
Agriculture |
6-2 |
Perea, Cooper, Dodd, Eggman, Irwin, Quirk |
Gallagher, Grove |
Environmental Safety |
6-0 |
Alejo, Gallagher, Gonzalez, Gray, McCarty, Ting |
|
Appropriations |
13-1 |
Gomez, Bonta, Calderon, Daly, Eggman, Gallagher, Eduardo Garcia, Gordon, Holden, Quirk, Rendon, Weber, Wood |
Bigelow |
SUMMARY: This bill establishes a new regulatory regime for medical marijuana cultivation (MMC), based on the current pilot project conducted by the State Water Resources Control Board (WRCB) and the Department of Fish and Wildlife (DFW), to address environmental impacts and expand enforcement efforts statewide. Specifically, this bill:
1) Requires cities and counties, by July 1, 2016, to adopt an ordinance to implement the requirements of this bill, or adopt a resolution to opt out of being the responsible entity for implementing the requirements of this bill; and, requires the Governor to designate an appropriate state agency to implement the requirements of the bill in each city and county that opts out of responsibility.
2) Requires all qualified persons associated with legal MMC to obtain a permit from the local designated agency or state agency that specifies the location and number of plants authorized to be grown at the location; and, authorizes the relevant agency to charge an administrative fee to cover the costs of permit issuances.
3) Limits the maximum number of plants that may be authorized at a site to 99; prohibits outdoor MMC from being within 100 feet of a home or school, but authorizes a city or county to increase that distance to a mile; and, requires cultivation sites to be enclosed with a six foot tall fence and out of sight from the public.
4) Limits the number of plants at a residential home to six unless the city or county adopts a higher limit; prohibits residential MMC from being within 100 feet of a school, but authorizes a city or county to increase that distance to one mile; and, requires buildings where marijuana is cultivated or stored to be properly secured.
5) Requires relevant agencies to distribute unique identifiers for marijuana plant identification and authorizes the agencies to charge administrative fees to cover the cost of issuing unique identifiers and monitoring, tracking, and inspecting the plants; and, requires a copy of a valid state-issued medical marijuana identification card or physician recommendation to be displayed at cultivation sites.
6) Exempts qualified patients MMC under the Compassionate Use Act of 1996 (Proposition 215) if they are cultivating for personal medical use and do not sell, distribute, donate, or otherwise provide marijuana to any other person or entity, and exempts primary caregivers for medical use for up to five qualified patients.
7) Authorizes the relevant agencies to revoke or suspend a permit, deny issuance of a permit or impose fines for violations; permits cities and counties to enact more restrictive ordinances, including complete prohibition, on MMC, and does not preclude any existing city or county ordinances on MMC.
8) Requires regional water boards and WRCB to address waste discharges resulting from MMC, including establishing new waste discharge requirements.
FISCAL EFFECT: According to the Assembly Appropriations Committee, annual General Fund costs in excess of $6 million to WRCB and DFW to expand enforcement efforts and implementation. Eventually costs would be funded from permit fees.
COMMENTS: Proposition 215 provides certain legal protections for qualified patients and caregivers that possess or cultivate marijuana. In addition to Proposition 215, the Legislature passed the Medical Marijuana Program Act, which extends certain legal protections to those that collectively or cooperatively cultivate marijuana for medical purposes.
According to the author, medical marijuana growers operate in a gray area between conflicting state and federal law, which has precluded the establishment of regulations to protect vulnerable watersheds and prevent other environmental damage. This bill is intended to establish basic regulations for the cultivation of medical marijuana, including a program to track medical marijuana plants. The author believes tracking plants will allow state and local law enforcement to quickly identify legal and illegal plants, and the regulatory structure will help prevent environmental damage, particularly to the North Coast.
According to ArcView Group, a marijuana research and investment firm, marijuana legalization advocacy groups have already planned for legalization ballot initiatives in at least six states in 2016, including California. Growth in demand for legal marijuana has led to substantial increases in cultivation. The United States Forest Service indicates illicit and unregulated marijuana cultivation has led to uncontrolled use of pesticides, logging, illegal waterway diversions, habitat destruction, and toxic waste discharges in Northern California.
The pilot project, funded in the 2013-14 Budget, has four primary components: 1) development of a regulatory program; 2) targeted enforcement in high value watersheds; 3) education and outreach to cultivators about best practices; and, 4) multi-agency coordination at the state level. WRCB is in the process of developing and promulgating waste discharge permits for MMC, which will eventually require all MMCs to pay a fee and comply with certain terms, including water conservation measures, site operations plans, fuel storage and maintenance, appropriate stream crossings and growing pads, and fertilizer and pest control use.
Analysis Prepared by: Victor Francovich / AGRI. / (916) 319-2084 FN: 0000559
AB 243
Page 2
Date of Hearing: May 20, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB 243
(Wood) – As Amended April 22, 2015
Policy Committee: |
Agriculture |
Vote: |
6 - 2 |
|
Environmental Safety and Toxic Materials |
|
6 - 0 |
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill establishes a new regulatory regime for the cultivation of marijuana, based on the current pilot project conducted by the State Water Resources Control Board (WRCB) and the Department of Fish and Wildlife (DFW), to address environmental impacts and expand enforcement efforts statewide. Specifically, this bill:
1) Requires cities and counties, by July 1, 2016, to adopt an ordinance to implement the requirements of this bill, or adopt a resolution to opt out of being the responsible entity for implementing the requirements of the bill; and requires the Governor to designate an appropriate state agency to implement the requirements of the bill in each city and county that opts out of responsibility.
2) Requires all qualified persons associated with legal medical marijuana cultivation to obtain a permit from the local designated agency or state agency that specifies the location and number of plants authorized to be grown at the location; and authorizes the relevant agency to charge an administrative fee to cover the costs of permit issuances.
3) Limits the maximum number of plants that may be authorized at a site to 99; prohibits the use of lights that exceed 1,200 watts per 100 square feet of cultivation; prohibits outdoor marijuana cultivation from being within 100 feet of a home or school, but authorizes a city or county to increase that distance to a mile; and requires cultivation sites to be enclosed with a six foot tall fence and out of sight from the public.
4) Limits the number of plants at a residential home to 6 unless the city or county adopts a higher limit; prohibits residential cultivation from being within 100 feet of a school, but authorizes a city or county to increase that distance to one mile; and requires buildings where marijuana is cultivated or stored to be properly secured.
5) Requires relevant agencies to distribute zip ties for marijuana plant identification and authorizes the agencies to charge administrative fees to cover the cost of issuing zip ties and monitoring, tracking, and inspecting the plants; requires a copy of a valid state-issued medical marijuana ID card or physician recommendation to be displayed at cultivation sites.
6) Exempts qualified patients cultivating marijuana under the Compassionate Use Act of 1996 if they are cultivating for personal medical use and do not sell, distribute, donate, or otherwise provide marijuana to any other person or entity, and exempts primary caregivers for medical use for up to 5 qualified patients.
7) Authorizes the relevant agencies to revoke or suspend a permit, deny issuance of a permit or impose fines for violations; permits cities and counties to enact more restrictive ordinances, including complete prohibition, on marijuana cultivation, and does not preclude any existing city or county ordinances on cultivation of marijuana.
8) Requires regional water boards and WRCB to address waste discharges resulting from marijuana cultivation, including establishing new waste discharge requirements.
FISCAL EFFECT:
Annual GF costs in excess of $6 million to WRCB and DFW to expand enforcement efforts and implementation. Eventually costs would be funded from permit fees.
COMMENTS:
1) Purpose. According to the author, medical marijuana growers operate in a gray area between conflicting state and federal law, which has precluded the establishment of regulations to protect vulnerable watersheds and prevent other environmental damage. This bill is intended to establish basic regulations for the cultivation of medical marijuana, including a program to track medical marijuana plants. The author believes tracking plants will allow state and local law enforcement to quickly identify legal and illegal plants, and the regulatory structure will help prevent environmental damage, particularly to the North Coast.
According to ArcView Group, a marijuana research and investment firm, marijuana legalization advocacy groups have already planned for legalization ballot initiatives in at least six states in 2016, including California. Growth in demand for legal marijuana has led to substantial increases in cultivation. The US Forest Service indicates illicit and unregulated marijuana cultivation has led to uncontrolled use of pesticides, logging, illegal waterway diversions, habitat destruction, and toxic waste discharges in Northern California.
2) Current Pilot. In response to a rapid increase in marijuana cultivation in recent years, WRCB and DFW developed a pilot project to devise and enforce environmental regulations with respect to medical marijuana cultivation. The Budget Act of 2014 appropriated $1.8 million to WRCB and $1.5 million to DFW for the creation of a multi-disciplinary Marijuana Task Force and priority-driven approach to address damage to natural resources from marijuana cultivation on private land and high conservation value public lands. According to the January 2015 joint report to the Legislature, WRCB and DFW focused the projects initial efforts along the north coast and central valley.
The pilot project has four primary components: (i) development of a regulatory program; (ii) targeted enforcement in high value watersheds; (iii) education and outreach to cultivators about best practices; and (iv) multi-agency coordination at the state level. WRCB is in the process of developing and promulgating waste discharge permits for marijuana cultivators, which will eventually require all cultivators to pay a fee and comply with certain terms, including water conservation measures, site operations plans, fuel storage and maintenance, appropriate stream crossings and growing pads, and fertilizer and pest control use.
Analysis Prepared by: Joel Tashjian / APPR. / (916) 319-2081
AB 243
Page 7
Date of Hearing: April 28, 2015
ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
Alejo, Chair
AB 243
(Wood) – As Amended April 22, 2015
SUBJECT:
Medical marijuana cultivation
SUMMARY:
Establishes new requirements for marijuana cultivation, requires medical marijuana cultivation to meet the requirements of state law, and requires coordination between the state and local governments to enforce medicinal marijuana cultivation. Specifically, this bill:
States the intent of the Legislature that the multiagency task force, the Department of Fish and Wildlife (CDFW), and the State Water Resources Control Board (Water Board) pilot project address the environmental impacts of cannabis cultivation and continue enforcement efforts on a statewide and permanent basis to ensure the reduction of the adverse impacts of marijuana cultivation on water quality and fish and wildlife throughout the state.
Requires indoor and outdoor medical marijuana cultivation to be conducted in accordance with state and local laws and best practices.
Requires the State Board of Forestry and Fire Protection, CDFW, the Water Board, the California regional water quality control boards (regional water boards), and traditional state law enforcement agencies to address environmental impacts of medical marijuana cultivation and to coordinate with local governments on enforcement efforts.
Requires a county, city, or city and county, by July 1, 2016, to adopt an ordinance to implement the requirements of the bill, or to adopt a resolution to opt out of being the responsible entity for implementation of the requirements of the bill.
Requires the Governor to designate an appropriate state agency to implement the requirements of the bill in each county, city, or city and county that adopts a resolution opting out of responsibility for implementation.
Requires all qualified medicinal marijuana patients and primary care givers cultivating marijuana pursuant to the Compassionate Use Act of 1996, and all qualified persons associated with legal medicinal marijuana cultivation, to obtain a permit to cultivate marijuana from the sheriff, chief of police, or other entity designated by the county, city, or city and county, or designated state agency, that specifies location and number of plants grown at that location. Authorizes the county, city, or city and county or designated state agency to charge an administrative fee to cover the costs of permit issuance.
Requires the county, city, or city and county to establish the limit on the number of plants that may be cultivated on an outdoor parcel or indoor facility in areas zoned for marijuana cultivation. Sets, where a designated state agency is the responsible entity for implementation, the limit on marijuana plants at 99.
Prohibits outdoor marijuana cultivation from being within 100 feet of any occupied legal residential home or of a school offering kindergarten and grades 1-12, and authorizes a county, city, or city and county to increase the distance to up to one mile.
Requires all outdoor marijuana cultivations to be securely fenced with a fence not less than six feet tall, to be out of sight from the public, and to use lights that do not exceed 1,200 watts per 100 square feet of cultivation.
Prohibits marijuana cultivated at a residential home from exceeding the limit of plants established by the county, city, or city and county. Sets, where a designated state agency is the responsible entity for implementation, the limit on marijuana plants at 6, unless the county, city, or city and county adopts an ordinance setting a higher limit for indoor cultivation.
Prohibits indoor marijuana cultivation from being within 100 feet of a school offering kindergarten and grades 1-12, and authorizes a county, city, or city and county to increase the distance to up to one mile.
Requires all buildings where marijuana is cultivated or stored to be properly secured.
Requires the county, city, or city and county or designated state agency to distribute zip ties for marijuana plant identification, and authorizes the county, city, or city and county or designated state agency to charge an administrative fee to cover the costs of issuing the zip ties, monitoring, tracking and inspecting the plants.
Requires a copy of a current and valid state-issued medical marijuana ID card or physician recommendation to be displayed at all cultivation sites.
Authorizes the county, city, or city and county or designated state agency to revoke or suspend a permit, deny the issuance of a permit, or impose fines for a violation.
States that the requirements of this bill do not apply to a qualified patient cultivating marijuana under the Compassionate Use Act of 1996 if he or she cultivates marijuana for his or her personal medical use and does not sell, distribute, donate, or provide marijuana to any other person or entity.
States that the requirements of this bill do not apply to a primary caregiver cultivating marijuana under the Compassionate Use Act of 1996 if he or she cultivates marijuana exclusively for the personal medical use of no more than five specified qualified patients.
States that the bill does not preclude a county, city, or city and county from regulating or banning the cultivation, possession, storage, manufacture, transport, provision, distribution, donation, or sale of marijuana, or any other activity or impair the enforcement of the same.
States that requirements of the bill do not apply to a county, city, or city and county that has an existing ordinance pertaining to the cultivation of marijuana, unless the county, city or city and county adopts an ordinance to implement the requirements of the bill.
Requires regional water boards and the Water Board to address waste discharges resulting from medical marijuana cultivation and associated activities, including adopting a general permit, establishing new waste discharge requirements, or taking action under existing waste discharge requirements.
Requires regional water boards to include conditions to address items such as:
Site development and erosion control;
Stream crossing installation;
Soil damage;
Water storage and use;
Irrigation runoff;
Fertilizers and soil;
Pesticides and herbicides;
Petroleum products and other chemicals;
Cultivation-related waste;
Refuse and human waste; and,
Cleanup, restoration and mitigation.
EXISTING LAW:
Establishes the Compassionate Use Act of 1996 (Proposition 215), which authorizes the prescription, possession and use of medicinal marijuana. (Health and Safety Code (H&S) §11362.5)
Specifies that local governments may adopt local ordinances that regulate the location, operation, or establishment of a medical marijuana cooperative or collective. (H&S § 11362.83)
Pursuant to the Porter-Cologne Water Quality Control Act, governs water quality regulation in California by establishing a comprehensive program to protect water quality and the beneficial uses of water. (Water Code (WC) § 13000, et seq.)
Requires specified persons to file a report with the appropriate regional water board on waste discharge that could affect the quality of the waters of the state, other than into a community sewer system. (WC § 13260)
Permits the Water Board or regional water boards to waive discharge reporting requirements if the waiver is consistent with any applicable state or regional water quality control plan and is in the public interest. (WC § 13269)
FISCAL EFFECT:
Unknown.
COMMENTS:
Need for the bill: According to the author, "For the past 18 years, medical marijuana growers and medical marijuana patients have lived in a gray area where state and federal law are in direct conflict, which has prevented the establishment of reasonable environmental protections to already impacted watersheds.
"Currently, there are very few environmental regulations for medical marijuana growers, which have caused unimaginable environmental damages to the North Coast region of the State...
"The bill would also put in place basic regulations around the cultivation of medical marijuana. AB 243 establishes a program that allows for the tracking of medical marijuana plants. This will assist local law enforcement identify legal plants from the illegal ones quickly. The program allows an entity, designated by the local jurisdiction, to issue unique identifiers, such as a zip-tie, to farmers that seek to cultivate medical marijuana. A unique identifier would be issued for each plant that the farmer seeks to cultivate.
"The Marijuana Watershed Protection Act, or AB 243, seeks to create a regulatory structure around a product that has never been regulated in our State."
What's the problem: Many illegal, clandestine marijuana cultivation operations are tucked away in California's sprawling forest lands, mostly in Mendocino and Humboldt Counties. The United States Forest Service describes the extensive and alarming damage caused by “trespass grows” as having devastating impacts on the environment. The damages are due to illicit and uncontrolled use of pesticide and rodenticide applications; uncontrolled logging; wildlife habit destruction; illegal stream and river diversions for irrigation; and, chemical and solid waste discharges.
The Water Board and the CDFW acknowledge that marijuana site cultivation on private and public lands cause enormous adverse effects to wildlife and their habitat. Marijuana cultivation activities can cause erosion and stream diversion. Unlawful water diversions can severely limit the amount of water available to people and wildlife, which is exacerbated during California's severe drought.
(Lack of) marijuana regulation: Under current state law, there are no agricultural or environmental requirements explicitly for marijuana cultivation. Regulations for marijuana cultivation are still in their nascence, likely given how relatively recently medicinal marijuana became legalized in California.
According to the research article "Impacts of Surface Water Diversions for Marijuana Cultivation on Aquatic Habitat in Four Northwestern California Watersheds," which includes contributions from CDFW, recent increases in the number and size of marijuana cultivation sites appear to be, in part, a response to ballot Proposition 215, the Compassionate Use Act (1996). In spite of state-wide prevalence, there is not yet a clear regulatory framework for the cultivation of marijuana, and from an economic viewpoint there is little distinction between plants grown for the black market and those grown for legitimate medical use.
According to ArcView Group, a San Francisco-based marijuana research and investment firm, marijuana legalization "advocacy groups have already planned for legalization ballot initiatives in at least six states in 2016, including an Adult Use initiative in California. Should an Adult Use legalization initiative pass in California in 2016 the entire industry could rapidly double in size." ArcView Group's report, "3rd Edition of the State of the Legal Marijuana Markets," stated that the "largest medical market in the country, California, is no longer a model for medical cannabis legalization because of its lack of statewide regulation."
The exponential growth in the demand for legal marijuana has pushed the demand for cultivation, thereby pushing the demand for regulation. In theory, regulations for legal cultivation will bring the illicit marijuana grows out of the shadows, which would help prevent the environmental problems marijuana cultivation currently present.
Current efforts addressing environmental impacts of marijuana cultivation: The Water Board and CDFW proposed through the Governor’s Office a pilot project to develop a focused enforcement effort regarding medicinal marijuana growers on private lands. The pilot project arose, in part, out of the rapid escalation of cannabis cultivation and proliferation of cultivation sites, primarily in Northern California.
The Budget Act of 2014 (SB 852, Chapter 25, Statutes of 2014), appropriated resources for both CDFW and the Water Board to reduce environmental damage caused by marijuana cultivation on private and high value state-owned public lands in California. CDFW and the Water Board created a multi-disciplinary Marijuana Task Force, and began implementing a priority-driven approach to address the natural resources damages from marijuana cultivation on private lands in northern California and on high conservation value public lands.
According to the Water Board and CDFW's joint report to the Legislature in January 2015, "The pilot project’s initial effort is focused in the geographic area where CDFW and the Water Board have the greatest need, which are those counties covered by CDFW Regions 1 (Del Norte, Siskiyou, Modoc, Humboldt, Trinity, Shasta, Lassen, Mendocino, and Tehama), and Region 4 (Tuolumne, Stanislaus, Mariposa, Merced, Madera, San Benito, Fresno, Monterey, Kings, Tulare, San Luis Obispo, and Kern). These counties are covered by the Central Valley and North Coast Regional Water Quality Control Boards, and the State Water Resources Control Board’s Division of Water Rights. The pilot project has four components:
(1) the development of a regulatory program;
(2) targeted enforcement in high value watersheds;
(3) education and outreach to cultivators about best management practices; and
(4) multi-agency coordination at the state and local level."
Currently, the Water Board is in the process of promulgating a conditional waiver of waste discharge requirements ('permit') in both the North Coast and Central Valley Regions. A conditional waiver of waste discharge requirements will require all persons engaged in the activity of cultivating cannabis to enroll in the program, comply with terms and conditions and pay a fee. While the permits must undergo a public process before they can be adopted by the respective regional water boards, they are expected to contain such terms and conditions as, among others, a site operations plan, proper fuel storage and maintenance, appropriately sized and graded stream crossings, appropriately graded grow and structure pads, guidelines for fertilizer use and pest control and water conservation measures.
Regional Water Boards: The Water Board has jurisdiction throughout California to protect water quality by setting statewide policy, and coordinating and supporting the regional water board efforts. There are nine regional water quality control boards that exercise rulemaking and regulatory activities by water basins.
Though regional water boards have jurisdiction to oversee the protection of water quality, regulate discharge, and permit, as appropriate, waste discharges from various sources, not all are doing so as it relates specifically to marijuana cultivation. AB 243 creates a new mandate on regional water boards to specifically address specified conditions of marijuana cultivation similarly to what the Central Valley and North Coast Regional Water Quality Control Boards have accomplished under the aforementioned pilot program.
Related legislation:
AB 26 (Jones-Sawyer). Requires the Department of Alcoholic Beverage Control to promulgate regulations that, among other things, include requirements to protect the state’s clean water and environment, including, but not limited to, protections related to land conversion, grading, water diversion and pond development, and agricultural discharges. This bill is pending before the Assembly Business & Professions and Health Committees.
AB 34 (Bonta). Enacts the Medical Cannabis Regulation and Control Act, and would establish the Division of Medical Cannabis Regulation to, among other things, consult with the Department of Water Resources to adopt regulations to ensure that commercial licensed cannabis activity does not threaten the state’s clean water and environment and is in compliance with the California Environmental Quality Act. This bill is set to be heard in the Assembly Business & Professions Committee on April 28, 2015.
AB 266 (Cooley). Establishes a Bureau of Medical Marijuana Regulation to regulate marijuana cultivation, and, among other things, would also establish the Special Account for Environmental Enforcement to fund the enforcement of environmental regulations relating to licensed cultivation sites. This bill is set to be heard in the Assembly Business & Professions and Assembly Labor & Employment Committees.
Double referral: This bill was double referred to the Assembly Agricultural Committee, where it passed out on April 15, 2015, on a 6 – 2 vote.
REGISTERED SUPPORT / OPPOSITION:
Support
Associated Students of Humboldt State Universality
California Association of Water Agencies
California Narcotic Officer's Association
California Cattlemen's Association
California Forestry Association
California Trout
Central Coast Forest Association
Conscious Cannabis Ventures
County of Mendocino, Office of the Sheriff-Coroner
Defenders of Wildlife
Emerald Growers Association
Heritage Associates
Humboldt Redwood Company
Sierra Club California
Sonoma County Water Agency
The Nature Conservancy
Trout Unlimited
Trust for Public Land
Opposition
None on file.
Analysis Prepared by:
Paige Brokaw / E.S. & T.M. / (916) 319-3965
AB 243
Page 5
Date of Hearing: April 15, 2015
ASSEMBLY COMMITTEE ON AGRICULTURE
Henry T. Perea, Chair
AB 243
(Wood) – As Amended April 8, 2015
SUBJECT: Medical marijuana cultivation.
SUMMARY: This bill would require all medical marijuana cultivation (MMC) 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 MMC and coordinate with local governments in enforcement efforts. This bill establishes a MMC permitting system. Specifically, this bill:
Requires all MMC to be conducted in accordance with state and local laws and best practices related to land conversion, grading, electricity usage, water usage, water quality, woodland and riparian protection, agricultural discharges, and similar matters.
Requires state agencies, including, but not limited to, the State Board of Forestry and Fire Protection, the Department of Fish and Wildlife, the State Water Resources Control Board (State Water Board), the California regional water quality control boards (regional water boards), and traditional state law enforcement agencies to address environmental impacts of MMC.
Requires state agencies, as specified above and when appropriate, to coordinate with local governments and their law enforcement agencies in enforcement efforts.
Requires regional water boards to and to address waste discharge resulting from MMC and associated activities by adopting a general permit, establishing waste discharge standards or taking action based on current waste discharge requirement laws
Allows the State Water Board to address waste discharge resulting from MMC and associated activities by adopting a general permit, establishing waste discharge standards or taking action based on current waste discharge requirement laws.
Requires County Board of Supervisors (CBOS), by July 1, 2016 to adopt an ordinance to implement a MMC wastewater discharge policy or, by resolution, opt out of the being the entity in charge of the MMC wastewater discharge policy.
Requires the Governor, when a county opts out as stated above, to designate an appropriate state agency to implement a MMC wastewater discharge policy in the respective county.
Defines designated state agency (DSA) as the agency selected by the Governor to implement a MMC wastewater discharge policy when the CBOS has opted out of MMC wastewater discharge policy.
Requires all qualified, as specified, medical marijuana (MM) cultivators to do the following:
Obtain a MMC permit from the county sheriff or other designated entity;
Requires the permit to specify the location and number of MM plants allowed;
Allows CBOS or DSA to charge a fee to cover cost of issuing permits and caring out the requirements of the MMC wastewater discharge policy; and,
Requires permits to be renewed annually.
Requires each county to establish the number of MM plants that can be cultivated at any location;
Requires MMC permits to be within a MMC specified zone, with specified exemption for a residential home;
Requires in counties where a DSA is in charge that the maximum number of MM plants at a location is 99 or less; and,
Allows CBOS or DSA to set limits on the maximum square footage cultivated at a location.
Requires outdoor MMC sites to be more than 100 feet from any school offering any Kindergarten (K) through 12 grade education;
Allows a county to expand this distance up to 1 mile;
Requires all outdoor MMC sites to have a secure fence, as specified;
Requires all outdoor MMC sites to out of view of the public; and,
Requires all outdoor MMC sites that use lights to assist in cultivation not to exceed 1,200 watts per 100 square feet of cultivated area.
Requires indoor MMC sites to be more than 100 feet from any school offering any K through 12 grade education;
Requires a residential MMC site to not exceed the number of plants established by the county;
Requires in counties where a DSA is in charge the maximum number of MM plants at a residential location is six or less, unless the county has an ordinance allowing a higher number;
Requires areas specifically zoned for MMC in counties that allow more than six MM plants at a residential site;
Requires residential MMC sites to be more than 100 feet from any school offering any K through 12 grade education; and,
Allows a county to expand this distance up to 1 mile.
Requires all buildings where MM is cultivated to be secure from authorized entry;
Requires a county or DSA to issues zip ties for the identification of MM plants;
Allows a county to designate the county sheriff to issue zip ties;
Requires the zip ties to be attached to the base of each MM plant; and,
Allows the county or DSA to charge a fee to cover cost of issuing zip ties, monitoring, tracking and inspecting the MM plants, and caring out the requirement of the MMC wastewater discharge policy.
Requires, at all MMC sites, a copy of a current and valid state issued MM identification card to be displayed so that it may be seen from outside a building or fenced area;
Allows a county or DSA to revoke or suspend a permit, deny reissue or impose fines for violation of the MMC wastewater discharge policy;
Allows a county to abate a violation by use of current abatement laws and regulation; and,
Allows a county to set maximum noise levels specifically related to MMC.
Requires regional water boards, in addressing MMC discharges, to include, but not limited to, the following conditions to be addressed:
Site development and maintenance, erosion control, and drainage features;
Stream crossing installation and maintenance;
Riparian and wetland protection and management;
Soil disposal;
Water storage and use;
Irrigation runoff;
Fertilizers and soil;
Pesticides and herbicides;
Petroleum products and other chemicals;
Cultivation-related waste;
Refuse and human waste; and,
Cleanup, restoration, and mitigation.
EXISTING LAW:
Authorizes the use of marijuana for medical purposes.
Makes it a crime to plant, cultivate, harvest, dry, or process marijuana, except as otherwise authorized by law, such as the medical marijuana program.
Provides that the State Water Board and the regional water boards are the principal state agencies with responsibility for the coordination and control of water quality in the state.
FISCAL EFFECT: Unknown.
COMMENTS: Proposition 215 (Prop 215), the Compassionate Use Act of 1996, provides certain legal protections for qualified patients and caregivers that possess or cultivate marijuana. In addition to Prop 215, the Legislature passed the Medical Marijuana Program Act, which extends certain legal protections to those that collectively or cooperatively cultivate marijuana for medical purposes.
There are limited environmental regulations for MMC, which have caused environmental damage to the North Coast region of the State. Last year, a thriving and healthy stream – Sproul Creek in the County of Humboldt - went dry for the first time in a number of years, which devastated the watershed’s ecosystem. Sproul Creek is also home to five endangered salmon species. State officials believe that the stream went dry from illegal water diversions of marijuana cultivators. According to a CDFW press media release " … [state and local] agencies are concerned about potentially significant pollutants entering the watershed from sediments, pesticides, fertilizers and other contaminants that, when not properly regulated or monitored, degrade the environment and threaten native plants and wildlife."
In 2014, Governor Brown responded by approving $1.8 million to create a pilot program in Northern California called the “Watershed Enforcement Team” (WET). WET charged the State Water Board along with the North Coast Regional Water Board to create guidelines that address wastewater discharges from MMC. According to the author, this bill continues the work of WET by establishing parameters that can guide statewide standards and to create regulations around a product that has never been regulated in California.
Supporters point out that the environmental degradation cause by marijuana growers needs to be addressed. This bill addresses these concerns by directing state agencies to coordinate a plan to address impact on water quality and the local environment of MMC.
Opponents find several problems with this bill stating the permitting structure is too prescriptive and would interfere with lawful MM production. Prop 215 allows a MM patient, or a MM patient’s primary caregiver, to cultivate MM for use. By requiring permits for residential MMC for individual use, an unnecessary financial and administrative burden is placed on MM patients. Furthermore, opponents state that in the case People vs. Kelly (2010) Cal.41h 1008, 1013, the court held that numerical limits on the number of MM plants were an unconstitutional legislative amendment to Prop 215. The restriction on location of MMC, wattage of lighting and specification for secure facilities is best left up the local jurisdiction, according to opponents. Opponents state while there is a need to find reasonable regulation for MMC, this bill is too restrictive in its approach.
RELATED LEGISLATION:
SB 1262 (Correa) of 2014 would have established a licensing and regulatory framework for the cultivation, processing, transportation, testing, recommendation and sale of medical marijuana to be administered by the Bureau of Medical Marijuana Regulation in the Department of Consumer Affairs. This bill was held in the Assembly Committee on Appropriations.
AB 473 (Ammiano) of 2013 would have enacted the Medical Marijuana Regulation and Control Act, and created the Division of Medical Marijuana Regulation and Enforcement in order to regulate the cultivation, manufacture, testing, transportation, distribution, and sale of medical marijuana. This bill failed passage on the Assembly floor.
AB 2284 (Chesbro),
Chapter 390, Statutes of 2012, imposed an additional civil penalty
for cultivating marijuana within a state park, and allowed law
enforcement to stop any vehicle transporting agricultural irrigation
supplies into a specified area, if agricultural irrigation supplies
are in plain view.
REGISTERED SUPPORT / OPPOSITION:
Support
Associated Students Council of Humboldt State University
Association of California Water Agencies
California Cattlemen's Association
California Forestry Association
California Narcotic Officers' Association
California Trout
Defenders of Wildlife
Humboldt Redwood Company
Rural County Representatives of California
Sierra Club California
Sonoma County Water Agency
The Nature Conservancy
Trout Unlimited
Trust for Public Land
Opposition
American for Safe Access
California NORML
3 individuals
Analysis Prepared by: Victor Francovich / AGRI. / (916) 319-2084
Discussed in Hearing
6MIN
Assembly Floor
8MIN
Senate Floor
8MIN
Senate Standing Committee on Appropriations
33MIN
Senate Standing Committee on Environmental Quality
31MIN
Senate Standing Committee on Governance and Finance
5MIN
Assembly Floor
54MIN
Assembly Standing Committee on Agriculture
Bill Author
