AB 2810: Cannabis: cultivation licenses: Sun-Grown Cannabis Commission and Indoor-Grown Cannabis Commission.

(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.

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, including a Type 1C, or specialty cottage, license, which authorizes a licensee to engage in cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, of 2,500 square feet or less of total canopy size for mixed-light cultivation, up to 25 mature plants for outdoor cultivation, or 500 square feet or less of total canopy size for indoor cultivation, on one premises.

This bill would additionally authorize, as a Type IC, or specialty cottage, license, a licensee to engage in cultivation of 2,500 square feet or less of total canopy size for outdoor cultivation.

AUMA authorizes the Legislature to amend by majority vote certain provisions of the act to implement specified substantive provisions, provided that the amendments are consistent with and further the purposes and intent of AUMA.

This bill would state that the Legislature finds and declares that this bill implements substantive provisions of AUMA and is consistent with, and furthers the purposes and intent of, AUMA.

(2)Under existing law, the Legislature finds and declares that the agricultural and seafood industries are vitally important elements of the states economy. Existing law provides for various commissions and councils to promote the marketing and production of agricultural or seafood commodities.

This bill would create the Sun-Grown Cannabis Commission in the state government with a prescribed membership, and would specify the powers, duties, and responsibilities of the commission commissions board of directors. The bill would authorize the commission board of directors would be authorized to, among other things, conduct research for specified purposes, assess and address the impact of local and state regulations on the cannabis products industries, and collect and disseminate market price information to prevent unfair trade practices. The bill would authorize the commission to levy assessments on cultivators, as defined, in amounts within unspecified ranges based on the weight or value of sun-grown cannabis marketed and would authorize the commission to expend those funds for purposes of implementing these provisions, thereby making an appropriation.

The bill would provide that these provisions, except as necessary to conduct an election, would not become operative until the cultivators vote in favor of these provisions, as prescribed. The bill would also provide for the suspension of the operation of these provisions and for concluding the operations of the commission under certain circumstances. The bill would authorize the commission to levy a civil penalty, as specified, on a person for rendering or furnishing false reports, secreting, destroying, or altering records, failing to furnish a report, or failing or refusing to furnish to the commission information concerning the names and addresses of persons to whom sun-grown cannabis was delivered or from whom sun-grown cannabis was received. The bill would authorize the commission to bring certain civil actions to enforce these provisions.

(4)Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.