(1)The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities. MAUCRSA generally divides responsibility for the state licensure and regulation of commercial cannabis activity among the Department of Consumer Affairs, the Department of Food and Agriculture, and the State Department of Public Health and requires those state licensing authorities to begin issuing licenses by January 1, 2018.

Under existing law, the Department of Food and Agriculture may issue cannabis cultivation licenses to commercial cannabis businesses that differ depending on the size of the cultivation site and whether the site is indoor, outdoor, or mixed. AUMA also requires the Department of Food and Agriculture, in consultation with the Bureau of Cannabis Control, to implement a unique identification program for cannabis and requires a unique identifier to be issued for each cannabis plant, plant at a cultivation site during the cultivation period, as specified. AUMA, as amended by MAUCRSA, defines a unique identifier as referencing a specific plant on a licensed premises, and any cannabis or cannabis products derived from that plant. AUMA, as amended by MAUCRSA, requires the department, in consultation with the bureau, to use these unique identifiers in a track and trace program that tracks the movement of cannabis and cannabis products throughout the distribution chain, from cultivation to sale, using a software tracking system.

This bill would define immature cannabis plant, mature cannabis plant, and plant plant for purposes of AUMA. Instead of requiring a unique identifier to be issued for each cannabis plant, the bill would require a unique identifier to be issued for each mature cannabis plant, as defined. The bill would provide for a unique identifier that references the lot of plants to which an immature plant belongs, instead of requiring a unique identifier for each immature plant, as specified.

(2)AUMA authorizes the Legislature to amend AUMA to further the purposes and intent of AUMA with a ²/₃ vote of the membership of both houses of the Legislature, except as provided.

This bill would declare that its provisions further the purposes and intent of AUMA.

(1)The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities. MAUCRSA generally divides responsibility for the state licensure and regulation of commercial cannabis activity among the Department of Consumer Affairs, the Department of Food and Agriculture, and the State Department of Public Health and requires those state licensing authorities to begin issuing licenses by January 1, 2018.

Under existing law, the Department of Food and Agriculture may issue cannabis cultivation licenses to commercial cannabis businesses that differ depending on the size of the cultivation site and whether the site is indoor, outdoor, or mixed. AUMA also requires the Department of Food and Agriculture, in consultation with the Bureau of Cannabis Control, to implement a unique identification program for cannabis and requires a unique identifier to be issued for each cannabis plant, as specified.

This bill would define immature cannabis plant, mature cannabis plant, and plant for purposes of AUMA. Instead of requiring a unique identifier to be issued for each cannabis plant, the bill would require a unique identifier to be issued for each mature cannabis plant, as defined.

(2)AUMA authorizes the Legislature to amend AUMA to further the purposes and intent of AUMA with a ²/₃ vote of the membership of both houses of the Legislature, except as provided.

This bill would declare that its provisions further the purposes and intent of AUMA.

(1)The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities. MAUCRSA generally divides responsibility for the state licensure and regulation of commercial cannabis activity among the Department of Consumer Affairs, the Department of Food and Agriculture, and the State Department of Public Health and requires those state licensing authorities to begin issuing licenses by January 1, 2018.

The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities.

This bill would make a nonsubstantive change in those provisions.

 THIRD READING  

Bill No: AB 2555

Author:

:

Vote:

SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 9-0, 6/25/18

AYES: Hill, Fuller, Allen, Dodd, Galgiani, Glazer, Hernandez, Pan, Wilk

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 68-0, 5/7/18 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST:

This bill defines “immature cannabis plant” under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) and clarifies the use of a unique identifier (UID) for cannabis plants.

ANALYSIS:

Existing law:

1. Establishes a comprehensive system to control and regulate the cultivation, distribution, transport, storage, manufacturing, processing, and sale of both medicinal and adult use cannabis, known as MAUCRSA. (Business and Professions Code (BPC) §§ 26000 et seq.)
2. Establishes the Bureau of Cannabis Control (Bureau) under the Department of Consumer Affairs to regulate cannabis by having the sole authority to create, issue, deny, renew, discipline, suspend, or revoke licenses for microbusinesses, transportation, storage unrelated to manufacturing activities, distribution, testing, and sale of cannabis and cannabis products within the state. (BPC §§ 26010, 26012 (a)(1))
3. Requires the California Department of Food and Agriculture (CDFA) to administer the portions of MAUCRSA related to and associated with the cultivation of cannabis. Delegates to CDFA the authority to create, issue, deny, and suspend or revoke cultivation licenses for violations of MAUCRSA. (BPC § 26012 (a)(2))
4. Defines a UID as an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant. (BPC § 26001(au))
5. Requires CDFA to establish a program for the identification of permitted cannabis plants at a cultivation site during the cultivation period, and requires a UID to be issued for each cannabis plant. CDFA shall ensure that UIDs are issued as quickly as possible and be attached at the base of each plant or as otherwise required by law or regulation. (BPC § 26069 (a)(2)(A))
6. Requires CDFA, in consultation with the Bureau, to establish a track and trace program for reporting the movement of cannabis and cannabis products throughout the distribution chain that utilizes a UID, secure packaging, and is capable of providing specified information. (BPC § 26067)
7. Requires the CDFA to establish a Cannabis Cultivation Program with the responsibility of issuing cultivation licenses and a UID for each permitted cannabis plant at a cultivation site, and establishing protections against fraudulent or illegal use of UIDs. (BPC § 26069)
8. Defines the following:
   1. “Immature plant” or “immature” means a cannabis plant that is not flowering.
   2. “Mature plant” means a cannabis plant that is flowering. (16 CCR § 8000)
9. Requires licensees with immature plants to assign a UID to each established lot, each lot of immature plants having no more than one hundred (100) immature plants at any one time. (16 CCR § 8403 (b)(1))
10. Requires a licensee to apply a UID to all individual plants at the time any plant is moved to the designated canopy area or when an individual plant begins flowering. (16 CCR § 8403 (b)(3))
11. Requires a UID for each mature plant. UIDS shall be attached to the main stem, at the base of each plant. Licensees are prohibited from removing the UID from the mature plant to which it was attached and assigned until the plant is harvested, destroyed, or disposed. (16 CCR § 8403 (b)(4))

This bill:

1. Defines an “immature cannabis plant” or “immature plant” as a plant that is nonflowering and is shorter or narrower than 18 inches.
2. States that a UID may be used to reference a lot of plants to which an immature plant belongs. States that, notwithstanding the presence of an immature plant in a lot, each cannabis plant in the lot that is not an immature plant shall be referenced by its own UID. 
3. States that an “appropriate” UID shall be used for each cannabis plant.
4. Makes legislative findings and declarations that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.

Background

California’s Cannabis Regulatory Background. In 1996, California became the first state to legalize medical marijuana when voters approved Proposition 215, the Compassionate Use Act, which exempted patients and their primary caregivers from criminal liability under state law for the possession and cultivation of marijuana. In 2015, the Legislature passed a series of bills establishing the Medical Cannabis Regulation and Safety Act (MMRSA), which created a comprehensive state licensing system for the commercial cultivation, manufacture, retail sale, transport, distribution, delivery, and testing of medical marijuana. In 2016, California voters passed Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), legalizing the distribution, sale, and possession of cannabis for recreational use. A year later, the MCRSA and AUMA were combined to form one system under MAUCRSA.

On December 7, 2017, the licensing agencies adopted emergency regulations to implement MAUCRSA. The current definitions amended by this bill were included in the original regulatory package. On May 25, 2018, the licensing agencies submitted readoption of the emergency regulations. Multiple parties objected to the definition of an immature plant during the public comment period, advocating instead for a height designation rather than merely nonflowering, but the definitions remained unchanged in the resubmission.

Effects of This Bill. The new definition of “immature plant” in this bill supersedes the emergency regulatory definition to require not only that the plant not be flowering, but that it also be shorter or narrower than eighteen inches. This bill preserves the emergency regulations’ definition of a “mature plant,” which is any plant that is flowering.

This bill also merges the statutory and regulatory requirements for UID tagging; current law requires a UID for each cannabis plant, but regulations allow for lot tagging of immature plants. This bill clarifies within the definition of a UID that a UID may be used to reference a specific plant or a lot of plants to which an immature plant belongs. It further clarifies that any mature plants within the lot of immature plants must be tagged separately, and states that an “appropriate” UID shall be issued for each cannabis plant, meaning that a UID may reference either the individual mature plant or lot of immature plants.

Other State Definitions and Tagging Requirements. According to information provided by the author, there is no universal tagging standard among states that have legalized cannabis for either medicinal, adult-use, or both. In Oregon, immature plants under 24 inches are tracked in a “plant batch” where no UID is required. A plant must be assigned a UID when the plant begins to flower or when the plant reaches 24 inches in height, whichever comes first. In Colorado and Washington, a UID must be assigned to all marijuana plants that are eight or more inches tall or wide.

Comments

According to the author, “Under MCRSA and Proposition 64, now collectively known as MAUCRSA, all commercial cannabis is required to be in a ‘track and trace’ program that follows the product from its initial cultivation to eventual sale in some form. [Existing law] requires that a unique identifier be issues for each cannabis plant.

“Under emergency regulations promulgated by CA Department of Food and Agriculture, plants are not required to be issued a unique identifier (UID or ‘plant tag’) unless the plant is ‘mature.’ A ‘mature plant’ means a cannabis plant that is ‘flowering.’

“Cannabis grow cycles can be natural via outdoor sunlight, or manufactured using mixed-light or indoor light cycles that can keep plants in a vegetative, non-flowering state with the ability of quickly being moved into a flowering state. The amount of plants allowed to be cultivated is dependent on the type of license issued and the amount of ‘canopy’ size each license allows. Under the regulations, only ‘mature’ plants are counted toward the canopy size.

“The problem arises as local agencies (code or law enforcement) seek to ensure that cannabis businesses are meeting all legal cultivation requirements, including having plants properly tagged and having the right amount of plants for the total canopy size allowed. It can be virtually impossible at quick glance to distinguish between a ‘flowering’ or ‘non-flowering’ cannabis plant, especially in large, indoor warehouse grows where there are hundreds of plants per room, tightly placed together. It will also be incredibly difficult for the officers to effectively ensure that all cultivation regulations are being met if they have to take the time to individually examine each plant to make sure it is flowering or not flowering to count it toward the allowable canopy size.

“Instead, a standard [18] inch height standard should be used for requiring cannabis plants to have an UID/plant tag. This will allow for easy and quick identification by any compliance or law enforcement officers and will facilitate the best use of time and resources.”

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 8/8/18)

United Cannabis Business Association

OPPOSITION: (Verified 8/8/18)

Several individuals

ARGUMENTS IN SUPPORT: The United Cannabis Business Association writes, “UCBA represents Measure D compliant cannabis businesses (dispensaries and growers) in California that strive to provide the highest quality medicine to their patients and to raise awareness about the medical cannabis industry and its benefits. UCBA brings together the pioneers of this constantly evolving industry to serve as a voice for this often-misrepresented trade through advocacy, education, and innovation. Our members not only run dispensaries but also do cultivation.

ARGUMENTS IN OPPOSITION: According to opponents, “AB 2555 seeks to strengthen the track and trace system by mandating all plants 18” tall or wide have a UID applied to them. The language in the bill changes the definition of immature plants. Seasonal cultivators and nursery operators strongly oppose this change of definition, as it creates a cascade of impacts….”

“Although it has yet to be implemented, the costs and waste associated with tagging all plants under 18” can be absorbed if it helps us to strengthen the track and trace system. However, the change of definition to immature and mature plant has such far-reaching impacts to cultivators, nurseries, and retailers that I respectfully oppose this bill in its current form… and request that the author remove the definition changes and make the following adjustments to BPC 26060 (3): “A unique identifier shall be associated with each mature plant, and all immature plants that are 18 inches tall or wide or larger.”

ASSEMBLY FLOOR: 68-0, 5/7/18

AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bigelow, Bloom, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chiu, Choi, Chu, Cooley, Cooper, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gallagher, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Holden, Irwin, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Travis Allen, Bonta, Brough, Chen, Cunningham, Cristina Garcia, Harper, Jones-Sawyer, Patterson, Voepel

Prepared by:

8/8/18 15:52:05

**** END ****

SENATE COMMITTEE ON

BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT

Senator Jerry Hill, Chair

2017 - 2018 Regular

Bill No: AB 2555 Hearing Date: June 25, 2018

Subject: Cannabis

SUMMARY:

Defines “immature cannabis plant” under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) and clarifies the use of a unique identifier (UID) for cannabis plants.

Existing law:

1. Establishes a comprehensive system to control and regulate the cultivation, distribution, transport, storage, manufacturing, processing, and sale of both medicinal and adult use cannabis, known as MAUCRSA. (Business and Professions Code (BPC) §§ 26000 et seq.)
2. Establishes the Bureau of Cannabis Control (Bureau) under the Department of Consumer Affairs to regulate cannabis by having the sole authority to create, issue, deny, renew, discipline, suspend, or revoke licenses for microbusinesses, transportation, storage unrelated to manufacturing activities, distribution, testing, and sale of cannabis and cannabis products within the state. (BPC §§ 26010, 26012 (a)(1))
3. Requires the California Department of Food and Agriculture (CDFA) to administer the portions of MAUCRSA related to and associated with the cultivation of cannabis. Delegates to CDFA the authority to create, issue, deny, and suspend or revoke cultivation licenses for violations of MAUCRSA. (BPC § 26012 (a)(2))
4. Defines a UID as an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant. (BPC § 26001(au))
5. Requires CDFA to establish a program for the identification of permitted cannabis plants at a cultivation site during the cultivation period, and requires a UID to be issued for each cannabis plant. CDFA shall ensure that UIDs are issued as quickly as possible and be attached at the base of each plant or as otherwise required by law or regulation. (BPC § 26069 (a)(2)(A))
6. Requires CDFA, in consultation with the Bureau, to establish a track and trace program for reporting the movement of cannabis and cannabis products throughout the distribution chain that utilizes a UID, secure packaging, and is capable of providing specified information. (BPC § 26067)
7. Requires the CDFA to establish a Cannabis Cultivation Program with the responsibility of issuing cultivation licenses and a UID for each permitted cannabis plant at a cultivation site, and establishing protections against fraudulent or illegal use of UIDs. (BPC § 26069)
8. Defines the following:
   1. “Immature plant” or “immature” means a cannabis plant that is not flowering.
   2. “Mature plant” means a cannabis plant that is flowering. (16 CCR § 8000)
9. Requires licensees with immature plants to assign a UID to each established lot, each lot of immature plants having no more than one hundred (100) immature plants at any one time. (16 CCR § 8403 (b)(1))
10. Requires a licensee to apply a UID to all individual plants at the time any plant is moved to the designated canopy area or when an individual plant begins flowering. (16 CCR § 8403 (b)(3))
11. Requires a UID for each mature plant. UIDS shall be attached to the main stem, at the base of each plant. Licensees are prohibited from removing the UID from the mature plant to which it was attached and assigned until the plant is harvested, destroyed, or disposed. (16 CCR § 8403 (b)(4))

This bill:

1. Defines an “immature cannabis plant” or “immature plant” as a plant that is nonflowering and is shorter or narrower than 18 inches.
2. States that a UID may be used to reference a lot of plants to which an immature plant belongs. States that, notwithstanding the presence of an immature plant in a lot, each cannabis plant in the lot that is not an immature plant shall be referenced by its own UID. 
3. States that an “appropriate” UID shall be used for each cannabis plant.
4. Makes legislative findings and declarations that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.

FISCAL EFFECT:

This bill is keyed “fiscal” by Legislative Counsel. According to the Assembly Appropriations Committee analysis dated April 25, 2018, the costs to CDFA are expected to be minor and absorbable. However, because this bill may result in an increase in the total number of UID plant tags a licensed cultivator would be required to use, and the cost of UID tags are built into annual licensing fees, this could increase fees for state-licensed cannabis cultivators and associated fee revenue.

COMMENTS:

Purpose. The Author is the sponsor of this bill. According to the Author, “Under MCRSA and Proposition 64, now collectively known as MAUCRSA, all commercial cannabis is required to be in a ‘track and trace’ program that follows the product from its initial cultivation to eventual sale in some form. [Existing law] requires that a unique identifier be issues for each cannabis plant.

“Under emergency regulations promulgated by CA Department of Food and Agriculture, plants are not required to be issued a unique identifier (UID or ‘plant tag’) unless the plant is ‘mature.’ A ‘mature plant’ means a cannabis plant that is ‘flowering.’

“Cannabis grow cycles can be natural via outdoor sunlight, or manufactured using mixed-light or indoor light cycles that can keep plants in a vegetative, non-flowering state with the ability of quickly being moved into a flowering state. The amount of plants allowed to be cultivated is dependent on the type of license issued and the amount of ‘canopy’ size each license allows. Under the regulations, only ‘mature’ plants are counted toward the canopy size.

“The problem arises as local agencies (code or law enforcement) seek to ensure that cannabis businesses are meeting all legal cultivation requirements, including having plants properly tagged and having the right amount of plants for the total canopy size allowed. It can be virtually impossible at quick glance to distinguish between a ‘flowering’ or ‘non-flowering’ cannabis plant, especially in large, indoor warehouse grows where there are hundreds of plants per room, tightly placed together. It will also be incredibly difficult for the officers to effectively ensure that all cultivation regulations are being met if they have to take the time to individually examine each plant to make sure it is flowering or not flowering to count it toward the allowable canopy size.

“Instead, a standard [18] inch height standard should be used for requiring cannabis plants to have an UID/plant tag. This will allow for easy and quick identification by any compliance or law enforcement officers and will facilitate the best use of time and resources.”

California’s Cannabis Regulatory Background. In 1996, California became the first state to legalize medical marijuana when voters approved Proposition 215, the Compassionate Use Act, which exempted patients and their primary caregivers from criminal liability under state law for the possession and cultivation of marijuana. In 2015, the Legislature passed a series of bills establishing the Medical Cannabis Regulation and Safety Act (MMRSA), which created a comprehensive state licensing system for the commercial cultivation, manufacture, retail sale, transport, distribution, delivery, and testing of medical marijuana. In 2016, California voters passed Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), legalizing the distribution, sale, and possession of cannabis for recreational use. A year later, the MCRSA and AUMA were combined to form one system under MAUCRSA.

On December 7, 2017, the licensing agencies adopted emergency regulations to implement MAUCRSA. The current definitions amended by this bill were included in the original regulatory package. On May 25, 2018, the licensing agencies submitted readoption of the emergency regulations. Multiple parties objected to the definition of an immature plant during the public comment period, advocating instead for a height designation rather than merely nonflowering, but the definitions remained unchanged in the resubmission.

1. Effects of This Bill. The new definition of “immature plant” in this bill supersedes the emergency regulatory definition to require not only that the plant not be flowering, but that it also be shorter or narrower than eighteen inches. This bill preserves the emergency regulations’ definition of a “mature plant,” which is any plant that is flowering.

This bill also merges the statutory and regulatory requirements for UID tagging; current law requires a UID for each cannabis plant, but regulations allow for lot tagging of immature plants. This bill clarifies within the definition of a UID that a UID may be used to reference a specific plant or a lot of plants to which an immature plant belongs. It further clarifies that any mature plants within the lot of immature plants must be tagged separately, and states that an “appropriate” UID shall be issued for each cannabis plant, meaning that a UID may reference either the individual mature plant or lot of immature plants.

1. Other State Definitions and Tagging Requirements. According to information provided by the Author, there is no universal tagging standard among states that have legalized cannabis for either medicinal, adult-use, or both. In Oregon, immature plants under 24 inches are tracked in a “plant batch” where no UID is required. A plant must be assigned a UID when the plant begins to flower or when the plant reaches 24 inches in height, whichever comes first. In Colorado and Washington, a UID must be assigned to all marijuana plants that are eight or more inches tall or wide.
2. Prior Related Legislation. SB 94 (Committee on Budget and Fiscal Review, Chapter 27, Statutes of 2017) combined the AUMA and MCRSA into one system for the regulation of cannabis, resulting in MAUCRSA.

AB 133 (Committee on Budget, Chapter 253, Statutes of 2017) made technical and clarifying changes necessary to implement state regulatory requirements consistent with SB 94 (Committee on Budget and Fiscal Review, Chapter 27, Statutes of 2017).

1. Arguments in Support. The United Cannabis Business Association writes, “UCBA represents Measure D compliant cannabis businesses (dispensaries and growers) in California that strive to provide the highest quality medicine to their patients and to raise awareness about the medical cannabis industry and its benefits. UCBA brings together the pioneers of this constantly evolving industry to serve as a voice for this often-misrepresented trade through advocacy, education, and innovation. Our members not only run dispensaries but also do cultivation.

“UCBA supports the implementation of a strong cannabis track and trace system. We believe the thoughtful and careful rollout of a proven seed to sale solution is essential to the effort of reducing illegal activities. Diversion and inversion pose the most immediate danger to the legal market.”

SUPPORT AND OPPOSITION:

Support:

United Cannabis Business Association

Opposition:

None on file as of June 20, 2018.

-- END –

ASSEMBLY THIRD READING

ATR Bill Id:AB 2555

Author:(Cooley)

As Amended Ver:April 4, 2018

2/3 vote

SUMMARY: Specifies the definition of "plant," "immature plant," and "mature cannabis plant" in relation to cannabis cultivation. Clarifies that identification numbers on plant tags must be unique and non-repeating.

EXISTING LAW:

1. Establishes the Bureau of Cannabis Control, also referred to as the Bureau of Medical Cannabis Regulation (Bureau), under the Department of Consumer Affairs (DCA), to establish a comprehensive system to control and regulate the, distribution, transport, storage, processing, and sale of cannabis products. (Business and Professions Code (BPC) Section 26000 et seq.)
2. Defines terms related to cannabis regulation (BPC Section 26001)
3. Establishes the Cannabis Cultivation Program under the authority of the California Secretary of Food and Agriculture and sets standards for the tagging and tracking of cannabis plants. (BPC Section 26069)

THIS BILL:

1. Defines "immature plant" or "immature cannabis plant" as a cannabis plant that is nonflowering and is shorter or narrower than eight inches.
2. Defines "mature cannabis plant" as a cannabis plant that is taller than eight inches or wider than eight inches of total canopy size.
3. Defines "plant" as a mature cannabis plant.
4. Clarifies that identification numbers on mature plant tags must be unique and non-repeating.

FISCAL EFFECT: Costs to California Department of Food and Agriculture (CDFA) are expected to be minor and absorbable. However, the department notes this bill may result in an increase in the total number of unique identifier (UID) plant tags a licensed cultivator would be required to use. Because the cost of UID tags is built into annual licensing fees, this could increase fees for state-licensed cannabis cultivators and associated fee revenue.

COMMENTS:

Purpose. This bill is sponsored by the author. According to the author:

Cannabis that is cultivated in the state is required to be in our track and trace system, with each plant having an individual tag to follow it through the system. Unfortunately, our current regulations make this process unnecessarily burdensome for local code and law enforcement seeking to ensure cannabis cultivation compliance by only requiring plants be tagged once they are "flowering" instead of after they reach a standard height. It can be difficult at a quick glance to tell the difference between a newly flowering plant versus a non-flowering plant, and even more difficult in tightly packed, indoor grow operations. In other states, such as Colorado and Washington, plants are easily identified as mature plants based on a height standard of eight inches.

AB 2555 addresses this issue by changing the definition of mature cannabis plant to mean any plant over 8 inches in height or width, instead of "flowering," thereby requiring plant tagging at an earlier and easier to understand state.

As California continues to move forward with our commercial cannabis market, it is imperative that the rules and regulations we set up for businesses to follow and local governments to enforce are straightforward. By changing a definition, we clarify a crucial enforcement mechanism and give a consistent standard across the state.

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), Chapter 689, Statutes of 2015, and SB 643 (McGuire), Chapter 719, Statutes of 2015] collectively known as the Medical Cannabis Regulation and Safety Act (MCRSA). MCRSA established the state's first regulatory framework for MC. In 2016, the voters of California passed Proposition 64, the Adult Use of Marijuana Act (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, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA).

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.

Plant Tagging. With the refinement of the cannabis cultivation cycle and the common usage of artificial lighting to control the harvest cycle, it is possible for a plant to go from a vegetative, non-flowering state, to flowering quickly. This can cause confusion for regulators and inspectors from local jurisdictions that may inspect a cultivation operation and struggle to clearly and efficiently identify "mature" plants from those that are not intended for harvest, especially when plants are in close proximity.

Other States. Colorado and Washington, both of which have legalized cannabis for adult-use, have established that a plant must be tagged with a unique identifier when it reaches eight inches in height or width. Oregon requires plants to be tagged at 24 inches, prior to that plants are tracked using "batch and lot."

Analysis Prepared by: Jimmy Fremgen / B. & P. / (916) 319-3301 FN: 0002742

Date of Hearing: April 25, 2018

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 2555

Author:(Cooley) – As Amended Ver:April 4, 2018

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

SUMMARY:

This bill further specifies mandatory tagging of mature cannabis plants by requiring plants to be tagged once they reach over 8 inches in height or width, instead of once “flowering” pursuant to current regulation.

FISCAL EFFECT:

Costs to California Department of Food and Agriculture (CDFA) are expected to be minor and absorbable. However, the department notes this bill may result in an increase in the total number of unique identifier (UID) plant tags a licensed cultivator would be required to use. Because the cost of UID tags is built into annual licensing fees, this could increase fees for state-licensed cannabis cultivators and associated fee revenue.

COMMENTS:

1. Purpose. This author-sponsored bill is intended to make compliance with cannabis plant tagging requirements more straightforward for cultivators and regulators by specifying plants a certain size must be tagged.
2. Background. The state began issuing licenses for cannabis businesses on January 1, 2018. CDFA, the Bureau of Cannabis Control, and the California Department of Public Health share regulatory authority over various parts of the cannabis industry, with CDFA responsible for regulating cannabis cultivation. Current law requires unique identifiers to be attached to cannabis plants. Emergency regulations issued by CDFA are more prescriptive, specifying plants are not required to be tagged unless they are considered to be “mature,” defined in the regulations as “flowering.” This bill would instead establish a mature plant as one of the specified size. Current regulations expire December 31, 2018, and CDFA is expected to issue permanent regulations that would take effect on January 1, 2019.

Analysis Prepared by: Lisa Murawski / APPR. / (916) 319-2081

Date of Hearing: April 10, 2018

ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS

Evan Low, Chair

ABPCA Bill Id:AB 2555

Author:(Cooley) – As Amended Ver:April 4, 2018

SUBJECT: Cannabis.

SUMMARY: Specifies the definition of “plant,” immature plant,” and “mature cannabis plant” in relation to cannabis cultivation. Clarifies that identification numbers on plant tags must be unique and non-repeating.

EXISTING LAW:

1. Establishes the Bureau of Cannabis Control, also referred to as the Bureau of Medical Cannabis Regulation (Bureau), under the Department of Consumer Affairs (DCA), to establish a comprehensive system to control and regulate the, distribution, transport, storage, , processing, and sale of cannabis products. (Business and Professions Code (BPC) Section 26000 et seq.)
2. Defines terms related to cannabis regulation (BPC Section 26001)
3. Establishes the Cannabis Cultivation Program under the authority of the California Secretary of Food and Agriculture and sets standards for the tagging and tracking of cannabis plants. (BPC Section 26069)

THIS BILL:

1. Defines “immature plant” or “immature cannabis plant” as a cannabis plant that is nonflowering and is shorter or narrower than eight inches.
2. Defines “mature cannabis plant” as a cannabis plant that is taller than eight inches or wider than eight inches of total canopy size.
3. Defines “plant” as a mature cannabis plant.
4. Clarifies that identification numbers on mature plant tags must be unique and non-repeating.

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

COMMENTS:

Purpose. This bill is sponsored by the author. According to the author:

“Cannabis that is cultivated in the state is required to be in our track and trace system, with each plant having an individual tag to follow it through the system. Unfortunately, our current regulations make this process unnecessarily burdensome for local code and law enforcement seeking to ensure cannabis cultivation compliance by only requiring plants be tagged once they are “flowering” instead of after they reach a standard height. It can be difficult at a quick glance to tell the difference between a newly flowering plant versus a non-flowering plant, and even more difficult in tightly packed, indoor grow operations. In other states, such as Colorado and Washington, plants are easily identified as mature plants based on a height standard of eight inches.

AB 2555 addresses this issue by changing the definition of mature cannabis plant to mean any plant over 8 inches in height or width, instead of “flowering”, thereby requiring plant tagging at an earlier and easier to understand state.

As California continues to move forward with our commercial cannabis market, it is imperative that the rules and regulations we set up for businesses to follow and local governments to enforce are straightforward. By changing a definition, we clarify a crucial enforcement mechanism and give a consistent standard across the state.”

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

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.

Plant Tagging. With the refinement of the cannabis cultivation cycle and the common usage of artificial lighting to control the harvest cycle, it is possible for a plant to go from a vegetative, non-flowering state, to flowering quickly. This can cause confusion for regulators and inspectors from local jurisdictions that may inspect a cultivation operation and struggle to clearly and efficiently identify “mature” plants from those that are not intended for harvest, especially when plants are in close proximity.

Other States. Colorado and Washington, both of which have legalized cannabis for adult-use, have established that a plant must be tagged with a unique identifier when it reaches 8 inches in height or width. Oregon requires plants to be tagged at 24 inches, prior to that plants are tracked using “batch and lot.”

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.

IMPLEMENTATION ISSUES:

It is unclear if plants 8 inches tall would be harmed by the placement of the tag or the weight of it since they are at the early stages of maturation. The author should work with stakeholders to establish whether shifting to this standard would cause problems in the life cycle of the plant.

REGISTERED SUPPORT:

None on file

REGISTERED OPPOSITION:

None on file

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