Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), which includes the Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA) enacted by the voters at the November 8, 2016, statewide general election, aims to take nonmedical nonmedicinal cannabis production and sales out of the hands of the illegal market by regulating the cultivation, distribution, and use of cannabis for nonmedical nonmedicinal purposes by individuals 21 years of age and older.

This bill would create the California Illegal Marijuana Cannabis Task Force, which would, among other things, analyze existing statutes to determine if they adequately address illegal cannabis cultivation, manufacturing, distribution, sales, and diversion of cannabis to other states, and recommend necessary revisions or new provisions. The bill would specify the membership of the task force, and would require members to be selected and to meet no later than March 1, 2019. The bill would require the task force to conduct a study, as specified, and report its findings to the Legislature on or before December 31, 2019. The bill would repeal these provisions as of January 1, 2022.

Existing law prohibits an insurer from participating in a plan to offer or effect any kind of insurance or annuities in this state as an inducement to the purchase or rental by the public of any property or services, without a separate charge to the insured for the insurance, with specified exceptions. Existing law prohibits an agent, broker, or solicitor from arranging the sale of that insurance. A willful violation of these provisions by an insurer, agent, broker, or solicitor is subject to suspension or revocation of his or her certificate, license, or other authority to do business or engage in his or her occupation for a period not exceeding one year.

This bill would make technical, nonsubstantive changes to these provisions.

Date of Hearing: May 9, 2018

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 2520

Author:(Cooper) – As Amended Ver:April 25, 2018

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill creates the California Illegal Cannabis Task Force to coordinate best practices and track trends in California’s illegal cannabis cultivation sector. The task force will also work with governmental and nongovernmental organizations and identify available government grants and funding for the purpose of combating and prosecuting illegal cannabis activity. This bill requires the task force to report on its findings to the Legislature by December 31, 2019.

FISCAL EFFECT:

GF costs in the hundreds of thousands of dollars for an unspecified agency to convene the task force.

COMMENTS:

1. Background. In 1996, California voters passed Proposition 215, legalizing the use of medical cannabis in the state. Then in 2016, California voters passed Proposition 64, the Adult Use of Marijuana Act, to legalize the recreational use of cannabis in the state and begin licensing and regulating the cannabis industry beginning in 2018.
2. Purpose. While medical and recreational use of cannabis is generally legal in the state, it is still possible to have illegal cultivation, distribution or sales of cannabis. This bill creates a task force to evaluate and address issues related to illegal cannabis activities.
3. Staff comments. This bill requires the creation of a task force, but does not specify which state entity will be the lead agency to convene the task force. A lead agency is necessary to select task force members and handle administrative functions. In addition, the due date for the report required by this bill does not appear to allow sufficient time for the task force to accomplish it workload. Specifically, this bill will go into effect January 1, 2019, and requires that task force members be selected by March 1, 2019. This leaves 10 months for the task force to complete the required study and prepare the required report. Completing the entire workload required of the task force in 10 months may not be achievable and, if it is achievable, will be costly to meet such an expedited timeframe.

Lastly, this bill may be premature, because licensing and regulation of the cannabis industry, pursuant to Proposition 64, has only been in effect for a few months. It is currently unclear to what extent illegal cannabis activities are taking place, given the recent implementation of a regulatory structure.

Analysis Prepared by: Jessica Peters / APPR. / (916) 319-2081

Date of Hearing: April 24, 2018

ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS

Evan Low, Chair

ABPCA Bill Id:AB 2520

Author:(Cooper) – As Amended Ver:March 22, 2018

NOTE: This bill is double-referred, having previously been heard in the Assembly Committee on Public Safety on April 17^th and approved on a 7-0 vote.

SUBJECT: California Illegal Marijuana Task Force.

SUMMARY: Would create the California Illegal Marijuana Task Force (Task Force) to coordinate best practices and track trends in California’s illegal cannabis cultivation sector. The Task Force would also work with governmental and nongovernmental organizations and identify available government grants and funding for the purpose of combating and prosecuting illegal cannabis activity.

EXISTING LAW:

1. Sets legal penalties for unlawful cannabis activity as well as allowable limits on possession and other cannabis related matters. (Health and Safety Code Section 11350 et. seq.)
2. Provides that the Counties of Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare may develop within their respective jurisdictions a Central Valley Rural Crime Prevention Program, which shall be administered by the county district attorney's office of each respective county under a joint powers agreement with the corresponding county sheriff's office. (Penal Code, Section 14171 (a))
   
3. Provides that the parties to each agreement shall form a regional task force known as the "Central Valley Rural Crime Task Force" which includes the county agricultural commissioner, the county district attorney, the county sheriff, and interested property owners or associations. (Pen. Code, Section 14171(b))
   
4. Allows the Central Valley Rural Crime Task Force to develop rural crime prevention programs which contain a system for reporting rural crimes that enable the swift recovery of stolen goods and the apprehension of criminal suspects. (Pen. Code, Section 14171 (b)(2))
   
5. Provides that the Central Coast Rural Crime Prevention program (CRCPP) shall be administered in San Benito, Santa Barbara, Santa Cruz, and San Luis Obispo Counties by the county district attorney's office under a joint powers agreement with the county sheriff's office, and in Monterey County by the county sheriff's office under a joint powers agreement with the county district attorney's office. (Pen. Code, Section 14181 (a))
   
6. Provides that the parties to each agreement shall form a regional task force known as the "Central Coast Rural Crime Task Force" which includes the county agricultural commissioner, the county district attorney, the county sheriff, and interested property owners or, associations. (Pen. Code, Section 14181 (b))
   
7. Authorizes the Central Coast Rural Crime Task Force to develop rural crime prevention programs which contain a system for reporting rural crimes that enable the swift recovery of stolen goods and the apprehension of criminal suspects. (Pen. Code, Section 14181 (b)(1))
   
8. Authorizes the Central Coast Rural Crime Task Force to develop a uniform procedure for all participating counties to collect data on agricultural crimes, establish a central database for the collection and maintenance of data on agricultural crimes, and designate one participating county to maintain the database. (Pen. Code, Section 14181 (b)(2))
   
9. States that the staff for each program developed by the Central Coast Rural Crime Task Force shall consist of the personnel designated by the district attorney and the sheriff of each county in accordance with the joint powers agreement. (Pen. Code, Section 14181 (c))

THIS BILL:

1. Creates the Task Force to analyze existing cannabis laws and recommend necessary revisions or new provisions.
2. Specifies the membership of the task force.
3. Requires the Task Force to be selected and meet no later than March 1, 2019.
4. Requires the Task Force to conduct a study of existing cannabis statutes and report to the Legislature on or before December 31, 2019.
5. Establishes a sunset date of January 1, 2022.
6. Makes numerous findings relevant to cannabis policy.

FISCAL EFFECT: Unknown. This bill is keyed fiscal by Legislative Counsel.

COMMENTS:

Purpose. This bill is author sponsored. According to the author, “To promote a legal cannabis market, prevent illegal marijuana production, and avoid illegal diversion of marijuana to other states, California must take aggressive steps to attack the marijuana black market. AB 2520 establishes a task force to bring together state and local law enforcement officials and industry professionals to develop strategies to combat California's underground cannabis economy.”

Background. History of Legal Cannabis in California. In 1996, California voters passed Proposition 215, legalizing the use of medical cannabis (MC) in the state. In October 2015, nearly 20 years after the authorization of the use of MC, Governor Jerry Brown signed into law a trio of bills [AB 243 (Wood), Chapter 688, Statutes of 2015, AB 266 (Bonta, Cooley, Jones-Sawyer, Lackey, and Wood), Chapter 689, Statutes of 2015, and SB 643 (McGuire), Chapter 719, Statutes of 2015] collectively known as MCRSA. MCRSA established the state's first regulatory framework for MC. In 2016, the voters of California passed Proposition 64, the AUMA, to legalize the recreational use of cannabis in the state by 2018. In June 2017, AUMA and MCRSA were combined via the budget process to form one system for the regulation of Cannabis, MAUCRSA

Existing safeguards: Track and Trace. MAUCRSA stipulates that the California Department of Food and Agriculture (CDFA) shall establish a track-and-trace program to support the effective regulation of cannabis plants at the cultivation site. This system must include unique identifiers that indicate the licensee and plant. While the details in statute are vague, emergency regulations issued by CDFA are more prescriptive, including that plants are not required to be tagged unless they are considered to be “mature,” defined in the regulations as “flowering.” These regulations expire December 31, 2018 and CDFA is expected to issue permanent regulations that would take effect on January 1, 2019.

Though this system is robust and tracks the product through its entire life cycle, it does not apply to unlicensed cultivators who may be using illegal pesticides and be moving product out of state. According to the United States Drug Enforcement Agency, its Domestic Cannabis Eradication/Suppression Program eradicated 5.3 million plants in the United States, 3.7 million of which were grown in California. Much of the Cannabis cultivated illegally in the state is grown for export to other states and abroad.

Prior Related Legislation. SB 94 (Committee on Budget and Fiscal Review, Chapter 27, Statutes of 2017) of the current legislative session combined AUMA and MCRSA into one system for the regulation of cannabis, resulting in MAUCRSA.

AB 64 (Bonta, Cooley, Jones-Sawyer, Lackey, Wood) of the current legislative session seeks to reconcile a number of differences between MCRSA and AUMA to provide clarity in regulation and enforcement of both medical and recreational cannabis. STATUS: This bill was passed by the Assembly Committee on Business and Professions on April 18, 2017 and was held in the Senate Committee on Appropriations.

AMENDMENTS:

For consistency with existing law and common usage:

Strike each instance of “marijuana” and replace with “cannabis.”

REGISTERED SUPPORT:

None on file

REGISTERED OPPOSITION:

None on file

Analysis Prepared by: Jimmy Fremgen / B. & P. / (916) 319-3301

Date of Hearing:

Chief Counsel: Gregory Pagan

ASSEMBLY COMMITTEE ON PUBLIC SAFETY

Reginald Byron Jones-Sawyer, Sr., Chair

ABPCA Bill Id:AB 2520

Author:(Cooper) – As Amended Ver:March 22, 2018

SUMMARY:

Establishes the California Illegal Marijuana Task Force. Specifically, this bill:

1. Provides that the California Illegal Marijuana Task Force is hereby established. The task force shall do all of the following:
   
   1. Analyze existing statutes for adequacy in addressing illegal marijuana cultivation, manufacturing, distribution, sales, and diversion. If the analysis determines that those statutes are inadequate, the task force shall recommend revisions or new provisions that specifically address illegal marijuana cultivation, manufacturing, distribution, sales, and diversion;
      
   2. Collect and organize data on the nature and extent of illegal marijuana cultivation, manufacturing, distribution, sales, and diversion;
      
   3. Examine collaborative models between governmental and nongovernmental organizations for prevention and prosecution of illegal marijuana cultivation, manufacturing, distribution, sales, and diversion;
      
   4. Measure and evaluate the progress of the state in preventing and prosecuting illegal marijuana cultivation, manufacturing, distribution, sales, and diversion;
      
   5. Evaluate approaches to increase public awareness of illegal marijuana cultivation, manufacturing, distribution, sales, and diversion;
      
   6. Consult with governmental and nongovernmental organizations to develop recommendations to strengthen state and local efforts to prevent and prosecute illegal marijuana cultivation, manufacturing, distribution, sales, and diversion; and,
      
   7. Identify available federal, state, and local funding and grant opportunities to prevent and prosecute illegal marijuana cultivation, manufacturing, distribution, sales, and diversion.
      
2. States that the task force shall consist of the following members:
   
   1. A designee of the California District Attorneys Association;
      
   2. A designee of the California State Sheriff's' Association;
      
   3. A designee of the California Police Chiefs Association;
      
   4. A designee of the California Highway Patrol;
      
   5. A designee of the Attorney General;
      
   6. A representative of the California cannabis cultivation industry;
      
   7. A representative of the California cannabis manufacturing;
      
   8. A representative of the California cannabis distribution; and,
      
   9. A representative of the California cannabis sales industry.
      
3. Provides that the members of the task force shall be selected and the task force shall have its first meeting no later than March 1, 2019.
   
4. Requires the task force to conduct a study of the objectives accomplished, and report the findings to the Legislature on or before December 31, 2019.
   
5. Contains a January 1, 2022 sunset date.
   
6. Makes numerous findings and declarations relating to the California marijuana industry.

EXISTING LAW:

1. Provides that the Counties of Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare may develop within their respective jurisdictions a Central Valley Rural Crime Prevention Program, which shall be administered by the county district attorney's office of each respective county under a joint powers agreement with the corresponding county sheriff's office. (Pen. Code, §14171, subd.(a).)
   
2. Provides that the parties to each agreement shall form a regional task force known as the "Central Valley Rural Crime Task Force" which includes the county agricultural commissioner, the county district attorney, the county sheriff, and interested property owners or associations. (Pen. Code, § 14171(b).)
   
3. Allows the Central Valley Rural Crime Task Force to develop rural crime prevention programs which contain a system for reporting rural crimes that enable the swift recovery of stolen goods and the apprehension of criminal suspects. (Pen. Code, § 14171, subd. (b)(2).)
   
4. Provides that the Central Coast Rural Crime Prevention program (CRCPP) shall be administered in San Benito, Santa Barbara, Santa Cruz, and San Luis Obispo Counties by the county district attorney's office under a joint powers agreement with the county sheriff's office, and in Monterey County by the county sheriff's office under a joint powers agreement with the county district attorney's office. (Pen. Code, § 14181, subd. (a).)
   
   
   
   
5. Provides that the parties to each agreement shall form a regional task force known as the "Central Coast Rural Crime Task Force" which includes the county agricultural commissioner, the county district attorney, the county sheriff, and interested property owners or, associations. (Pen. Code, § 14181, subd. (b).)
   
6. Authorizes the Central Coast Rural Crime Task Force to develop rural crime prevention programs which contain a system for reporting rural crimes that enable the swift recovery of stolen goods and the apprehension of criminal suspects. (Pen. Code, § 14181, subd. (b)(1).)
   
7. Authorizes the Central Coast Rural Crime Task Force to develop a uniform procedure for all participating counties to collect data on agricultural crimes, establish a central database for the collection and maintenance of data on agricultural crimes, and designate one participating county to maintain the database. (Pen. Code, § 14181, subd. (b)(2).)
   
8. States that the staff for each program developed by the Central Coast Rural Crime Task Force shall consist of the personnel designated by the district attorney and the sheriff of each county in accordance with the joint powers agreement. (Pen. Code, § 14181, subd. (c).)

FISCAL EFFECT:

Unknown

COMMENTS:

1. Author's Statement: According to the author, " To promote a legal cannabis market, prevent illegal marijuana production, and avoid illegal diversion of marijuana to other states, California must take aggressive steps to attack the marijuana black market. AB 2520 establishes a task force to bring together state and local law enforcement officials and industry professionals to develop strategies to combat California's underground cannabis economy.
   

REGISTERED SUPPORT / OPPOSITION:

Support

None

Opposition

Drug Policy Alliance

Analysis Prepared by:

Gregory Pagan / PUB. S. / (916) 319-3744