Existing law requires county assessors to supply to the State Board of Equalization information from homeowners property tax exemption claims and county records necessary to fully identify all homeowners property tax exemption claims allowed by the assessors.

This bill would make a nonsubstantive change to those provisions.

Date of Hearing: June 28, 2018

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Adam Gray, Chair

SBPCA Bill Id:SB 794

Author:(Stern) – As Amended Ver:June 7, 2018

SENATE VOTE: Not relevant

SUBJECT: Fireworks: fireworks stewardship program

SUMMARY: The bill would, until January 1, 2024, establish the Fireworks Stewardship Program (FSP) to create a uniform statewide policy regarding a state, county, special district, and local government entity’s safe seizure, storage, repurposing, destruction, or disposal of 1.4G federally approved dangerous fireworks and 1.4G California, classified safe and sane fireworks. Specifically, this bill:

1) Provides on or before December 31, 2019, the State Fire Marshal (SFM) shall identify and evaluate methods to capture more detailed data relating to fires, damages, and injuries caused by both dangerous fireworks and safe and sane fireworks, as described.

2) Provides a local jurisdiction may, and is encouraged to, adopt by ordinance a streamlined enforcement and administrative fine procedure related to the possession of 25 pounds or less of dangerous fireworks. These procedures shall be limited to civil fines, as defined.

3) Provides the ordinance may include provisions for cost reimbursement to the local jurisdiction, SFM, or both, including the collection and disposal costs of the dangerous fireworks in addition to any administrative fines. The ordinance shall be limited to a person, who possesses, or the seizure of, 25 pounds or less of dangerous fireworks. The ordinance may provide for social host liability in order to make owners, renters, and lessees and those that have possession of residence or other property responsible for dangerous illegal fireworks possession and use on that property.

4) Establishes the FSP to create a uniform statewide policy regarding a state, county, special district, and local government entity’s safe seizure, storage, repurposing, destruction, or disposal of 1.4G federally approved dangerous fireworks and 1.4G California, classified safe and sane fireworks.

5) Provides commencing on January 1, 2019, the SFM shall only issue or renew wholesaler’s licenses for the sale of safe and sane fireworks if the applicant for a license is a member of the fireworks stewardship organization (FSO). Provides the SFM may deny or revoke a license issued if the licensee does not participate in the FSP.

6) Provides all fireworks or pyrotechnic devices intended for sale in this state, which are products of non-licensed manufacturers, shall be examined and classified by the SFM upon written application on forms provided by him or her. A fee, in an amount determined by the SFM, shall accompany the application.

7) Provides definitions for various terms associated with the FSP, including but limited to:

(a) “Commercially viable” means federally approved dangerous consumer fireworks or California safe and sane fireworks that have been determined by the fireworks stewardship organization and the SFM to be in physical condition to be repurposed or resold in states that are noncontiguous to California.

(b) “Fireworks management charge” or “charge” means the charge imposed on the sale of safe and sane fireworks and collected at the retail point of sale.

(c) “Fireworks stewardship organization” means the nonprofit organization established by the wholesalers of safe and sane fireworks, as defined.

(d) “Wholesaler” means a wholesaler, who has a license to sell safe and sane fireworks in the state and participates in the fireworks stewardship organization.

(e) “Seizing entity” means an entity authorized to seize fireworks, as defined, and any local or state fire or law enforcement agency that stores fireworks on that entity’s behalf.

8) Provides a seizing entity shall separate fireworks from items, as defined, that are not legal for sale to consumers in California or any other state, and ensure that this material is stored in accordance with all applicable state and federal hazardous waste laws and regulations until the time when these fireworks can be disposed of by the appropriate local bomb squad.

9) Specifies that a seizing entity shall notify the SFM or his or her designee within three days of the determination that the seized product may be transferred. The notification shall include the amount of federally approved dangerous consumer fireworks and safe and sane fireworks that have been seized, and a general description of the condition of the packaging of the fireworks.

10) Provides the SFM or his or her designee shall coordinate with the seizing entity on the transportation of all seized consumer fireworks to a collection site determined by the SFM. Only the SFM or his or her designee shall sort the seized consumer fireworks for purposes of determining what are commercially viable fireworks and what is hazardous waste. Any waste shall be managed by the SFM in compliance with state and federal laws.

11) States the SFM or his or her designee shall have discretion to transfer any commercially viable fireworks to the fireworks stewardship organization, as provided.

12) Provides the fireworks stewardship organization may, to the extent allowed by any applicable state and federal laws, repurpose and retain any seized federally approved dangerous consumer fireworks within the state for a period not exceeding 90 days. Before the expiration of the 90-day period, the fireworks stewardship organization shall ship those fireworks to a site operated by the fireworks stewardship organization or one of its members wholesalers it has authorized, or another entity in another state that is authorized to accept the shipment.

13) States the SFM, his or her designee, or the fireworks stewardship organization shall not be required to accept materials, as defined.

14) Provides the fireworks stewardship organization shall only be required to accept legal transfers of commercially viable fireworks in their useable condition, which have been tested by the American Fireworks Standards Laboratory or other organization accepted by the United States Consumer Product Safety Commission, as specified. States In the event of intentional destruction, damage, or conscious and voluntary disregard of the need to use reasonable care by the seizing entity, as determined by the SFM, the seizing entity shall be exclusively responsible for the management or disposal of those fireworks, as provided.

15) Provides that on a quarterly basis, each seizing entity shall notify the SFM of all administrative, civil, or criminal fines or penalties levied or collected, as specified

16) Provides that on or before January 31, 2019, and annually thereafter, the SFM shall provide advice to each seizing entity on both of the following: (1) The total poundage of all seized fireworks the seizing entity delivered during the last calendar year. (2) The total poundage of all seized fireworks delivered by the seizing entity in the last calendar year that could not be repurposed and the cost of disposing of those fireworks.

17) Provides that on or before January 1, 2019, and biennially thereafter, SFM, in consultation with the fireworks stewardship organization and representatives of local fire and law enforcement agencies, shall develop and approve a list of geographically disbursed collection sites, as specified.

18) Provides that on or before November 1, 2019, and on or before November 1 annually thereafter, the fireworks stewardship organization shall reimburse the Department of Forestry and Fire Protection (DFFP) the costs necessary to implement FSP. Funds shall be deposited into the SFM Fireworks Enforcement and Disposal Fund, as defined, for the implementation of the FSP and for state enforcement efforts to curtail the illegal sales and use of federally approved dangerous consumer fireworks in the state. Provides the amount reimbursed to the state shall not exceed 3 percent of the annual gross retail sales of safe and sane fireworks as sold by the wholesalers that are members of the fireworks stewardship organization.

19) Provides that on or before July 1, 2019, DFFP shall establish a local grant program for illegal fireworks enforcement and interdiction operations. Groups eligible for grants shall include local agencies, including cities, counties, and special districts.

20) Provides before it may legally take possession of seized fireworks from the SFM, the fireworks stewardship organization shall, not later than January 30, 2019, submit a fireworks stewardship plan to the SFM that meets the requirements of this bill and includes all of the following:

(a) A process for collaborating with the SFM with regard to the establishment of program goals and methods of measuring program outcomes.

(b) A description of education and outreach efforts to nonprofit organizations, charities, and others who sell safe and sane fireworks regarding fire protection and prevention, the responsible use of safe and sane fireworks, and the hazards of illegal fireworks.

(c) The names of licensees and brands of fireworks, exclusive and generic, as defined.

(d) A methodology and audit plan for ensuring that any seized fireworks that are legal under federal law are shipped to a state where they are legal and, to the extent possible, to a state that is not contiguous to the State of California. The methodology and audit plan shall also document how the fireworks stewardship organization will meet the requirement for the fireworks to be shipped out of state within 90 days of the fireworks stewardship organization taking possession of them from the seizing entity.

21) States that on or before August 31, 2019, and before August 31 each year thereafter, each wholesaler that is a fireworks stewardship organization member shall provide the California Department of Tax and Fee Administration (CDTFA) a list of all retailers to whom that wholesaler distributed or sold safe and sane fireworks for the current calendar year. The list shall include the appropriate name and address for each retailer and that retailer’s seller’s permit account number, as defined.

22) Provides that on or before March 31, 2020, and before March 31 each year thereafter, CDTFA shall provide to the SFM, with regard to retailers, as defined, the total gross sales reported by retailers on returns filed with CDTFA for reporting periods that include June and July.

23) Specifies that a charge, also known as a fireworks management charge, shall be collected by a licensee at the point of retail sale of safe and sane fireworks, to be remitted to the fireworks stewardship organization. The charge shall not be subject to the state’s sales tax, as specified.

24) Prescribes procedures for the conduct of audits and would impose recordkeeping and reporting requirements on the fireworks stewardship organization. The FSO shall submit an annual report to the SFM documenting the prior year’s revenues from the resale of the commercially viable fireworks, the locations of the resales, and any administrative costs, as defined.

25) Provides the SFM may impose an administrative civil penalty on the fireworks stewardship organization for actions that are in violation of the FSP, as specified. The SFM shall deposit all penalties collected pursuant to this section into the SFM Fireworks Enforcement and Disposal Fund, as defined.

26) Provides that in the event that the retail sale of safe and sane fireworks, as defined, is suspended through legislative or executive action by the state, the fireworks stewardship organization shall suspend operations and the SFM shall assume responsibility for the management of seized fireworks, as specified.

27) Requires the SFM to convene a task force to investigate the issue of illegal fireworks sales in the state and would require, on or before January 1, 2021, the task force to present a report with recommendations to specified committees of the Legislature on reducing the volume of illegal fireworks being sold in the state.

28) Provides the SFP shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2024, deletes or extends that date.

29) Provides it is unlawful for a person to store any fireworks without having in his or her possession a valid permit as required by this part.

30) States the authority seizing fireworks, as provided, shall notify the SFM not more than three days following the date of seizure and shall state the reason for the seizure and the quantity, type, and location of the fireworks.

31) Provides that if dangerous fireworks are seized pursuant to a local ordinance that provides for administrative fines or penalties and these fines or penalties are collected, the local government entity collecting the fines or penalties shall forward 25 percent of the collected moneys to the Controller for deposit in the SFM Fireworks Enforcement and Disposal Fund, as specified.

32) Makes legislative findings.

EXISTING LAW:

1. Authorizes the retail sale of safe and sane fireworks from June 28 to July 6, annually, pursuant to a license issued by the SFM, unless otherwise prohibited or regulated by law or ordinance.
2. Requires various entities, including the SFM, to seize certain prohibited fireworks.
3. Requires an authority that seizes fireworks to notify the SFM of the seizure and provide specified information.
4. Requires the SFM to dispose of the fireworks and requires dangerous fireworks to be disposed of according to specified procedures.
5. Establishes the SFM Fireworks Enforcement and Disposal Fund in the State Treasury. Requires monies in the Fund to be used by the SFM for various purposes, including for the education of public safety agencies in the proper handling and management of dangerous fireworks and to further assist in public safety and education efforts within the general public as well as public safety agencies on the proper and responsible use of safe and sane fireworks.
6. Provides that if dangerous fireworks are seized pursuant to a local ordinance that provides for administrative fines or penalties and these fines or penalties are collected, the local government entity collecting the fines or penalties shall forward 65% of the collected moneys to the State Controller for deposit in the SFM Fireworks Enforcement and Disposal Fund.
7. Requires the Department of Motor Vehicles (DMV) to suspend the commercial license of a person transporting dangerous fireworks as specified.
8. Defines "Exempt fireworks" as any special item containing pyrotechnic compositions that the SFM, with the advice of the State Fire Advisory Board, has investigated and determined to be limited to industrial, commercial, agricultural use, or religious ceremonies when authorized by a permit granted by the authority having jurisdiction.
9. Defines "Safe and sane fireworks" as any fireworks that do not come within the definition of "dangerous fireworks" or "exempt fireworks."
10. Makes a violation of the law and regulations relating to fireworks a crime.

FISCAL EFFECT: Unknown

COMMENTS:

Purpose of the bill. According to the author, "SB 794 is an essential piece of legislation that will increase public safety and prevent dangerous wildfires by removing illegal fireworks from our communities. With the July Fourth holiday upon us, we must be vigilant and create a safe process for the management and disposal of illegal fireworks. This bill is comprehensive policy solution that has support from our fire agencies, first responders, local law enforcement, industry representatives, and cities and counties."

According to the author, SB 794 would require wholesalers of “Safe and Sane” fireworks to form a stewardship entity and create a stewardship plan as a condition of receiving their license. The stewardship entity will do the following:

• Reduce the amount of illegal fireworks entering California;
• Provide a stable funding source for illegal fireworks disposal;
• Support local fire and law enforcement agencies in their efforts of enforcement; and,
• Provide a cohesive statewide effort addressing illegal fireworks.

According to the author's office, this bill will help to resolve the long-standing issue of disposal of illegal and dangerous fireworks that are seized and stockpiled throughout the state and provide a stable, long-term funding source to support the increasing demands for fireworks education, enforcement, and disposal.

Seized Fireworks in California. Any fireworks not designated “safe and sane” are considered to be illegal in the State of California. As a result, there are fireworks seized in California that are legal to be sold in other states per federal regulations. The SFM requires the licensing of all pyrotechnic operators, fireworks manufacturers, importer-exporters, wholesalers, retailers, and public display companies.

The California Health and Safety Code requires the SFM to dispose of "dangerous fireworks" within 60 days upon receiving notification from the local jurisdictions that seized them. These seized fireworks range from unpackaged improvised devices, to fireworks that are legal to be sold in other states, as well as safe and sane fireworks that have been seized in any part of the state that does not permit the sale. According to the SFM the seizures of these fireworks have been increasing each year and begin to occur around March with an uptick in interdictions moving towards the 4^th of July period of the year.

Each year, the State seizes on average over 220,000 pounds of fireworks that will need to be disposed. Over the years, the focus has been to properly disposing of the stockpiles leaving few resources, if any, for enforcement. In addition, a federally approved waste hauler must transport all seized fireworks to an approved out-of-state hazardous waste facility.

With rapid population growth in the state and the commensurate growth of the sale of state-approved "safe and sane" fireworks, along with illegal and dangerous fireworks that continue to flow into California, additional pressures are being placed on CAL FIRE/SMF to provide enforcement, education, and disposal of seized illegal and dangerous fireworks. The lack of enforcement of illegal fireworks has been a continued issue for California. In addition, the accumulation of seized fireworks creates a significant hazard to the environment. It also presents fire and life safety risks, which in turn creates an increased liability to both SFM and the state.

For instance, in June 2018, CALFIRE announced seizure of 50,000 pounds of illegal fireworks and arrested seven people following a three-year long investigation into an illegal fireworks ring operating through the state.

Currently, the only funding source is fines and penalties assessed by local jurisdictions on those persons found to be in possession of illegal fireworks. However, this has not yielded a sufficient amount of funding for dispersal costs. CALFIRE/SMF received a one-time $1.5 million appropriation from the Toxic Substance Control Account (TSCA) in 2014-15 and then another one-time $5 million appropriation from the TSCA in 2015-16 to fund the disposal of illegal, seized fireworks to address the insufficient revenue stream. Without disposal funding beyond these one-time appropriations, a stockpile of illegal, seized fireworks has accumulated over time.

Firework Sales. Current law authorizes the retail sale of safe and sane fireworks from June 28 to July 6 annually pursuant to a license issued by the SFM, unless otherwise prohibited or regulated by law or ordinance. Currently, there were 295 communities in California that permitted the sale and use of state-approved fireworks each July Fourth.

Sellers are first required to obtain a license, good for one year, from the SFM and pay associated fees to the state. Local jurisdictions may include an administrative fee related to the processing of permits and a percentage of gross sales collected by the jurisdiction. This is generally used for education, over-time staffing, enforcement duties and other fireworks related additional activities.

Fireworks stands are generally run by non-profit groups such as battered women's shelters, service clubs (such as Rotary), Boy Scout and Girl Scout troops, PTAs, Little Leagues, and other local organizations. If an organization is selling safe and sane fireworks without a permit the individual or organization could face a significant fine and possible criminal charges.

City requirements for fireworks sale permits vary slightly from city to city, but each applicant generally has to comply with the same basic requirements. The non-profit organization must obtain designation as a certified, legal non-profit from the State of California; pay a city permit fee and a sales booth inspection fee for building and safety, and SFM compliance; pay an additional annual SFM fee; show proof of insurance with various amounts of coverage in case of property damage or injury in the vicinity of the sales booth; obtain a sales site, usually in a strip mall or other commercial location; take delivery of the sales booth; attend a meeting with city officials to learn of any annual municipal code updates or city council policy changes relating to the sale of legal fireworks; obtain a Seller’s Permit from the Board of Equalization (BOE) for required sales tax collection; and take delivery of the product, supply a sales staff to sell the product and determine the price they will charge for the product.

The SFM determines which fireworks are legal. The “safe and sane” varieties carry an official SFM seal. Everything else is classified dangerous and illegal. It has been reported, that law enforcement agencies confiscate an average of about 40,000 pounds of illegal fireworks every year. The SFM is responsible for collecting and disposing of unsafe fireworks. Because these fireworks contain perchlorates, they must be disposed in a manner that meets environmental regulations.

Fireworks Related Injuries. In 2010 the National Fire Protection Association released a study titled, "Fireworks-Related Injuries, Deaths and Fires," which found that in 2010, 8,600 fireworks-related injuries were treated in U.S. hospital emergency rooms. In addition, the study found that in 2010, an estimated 15,500 fires were started by fireworks in the United States. These fires resulted in an estimated eight civilian deaths, 60 civilian injuries and $36 million in direct property damage.

According to the study, "the risk of fire death relative to usage shows fireworks to be more risky per hour of usage than cigarettes. On Independence Day in a typical year, more than twice as many U.S. fires are reported than on any other day. Fireworks account for two out of five of those fires, more than any other cause of fires. The trend in fireworks-related injuries has been mostly in the range of 8,300 to 9,800 per year since 1996, except for spikes in 2000, primarily due to celebrations around the advent of a new millennium." In addition, the study found that 83% of emergency room fireworks injuries involved fireworks that Federal regulations permit consumers to use. Sparklers, fountains, and novelties alone accounted for 43% of emergency room fireworks injuries.

Budget actions 2018. The 2018-19 Budget Act provides funding to SFM, contingent upon the Legislature passing a policy bill (SB 794) that adopts an extended producer responsibility program for fireworks management and disposal. The first year of the program ($3.6 million) would be funded through the California Environmental License Plate Fund. The budget allocation would allow the SFM to dispose of stockpiled fireworks from past years. In 2019-20 and thereafter, $2.1 million will be reimbursed by the proposed FSP to the SFM Fireworks Enforcement and Disposal Fund.

In support. The California Fire Chiefs Association states, "SB 794 is an important bill to upgrade the enforcement and disposal of illegal fireworks in California. After extensive discussions in the Governor’s office between police, fire, cities and fireworks manufacturers, SB 794 has been developed to reduce the number of illegal fireworks entering the state, provide a stable funding source for fireworks disposal, support local agencies in their enforcement activities and provide a statewide action plan to curtail illegal firework sales."

The Fire Districts Association of California writes, "SB 794 creates a “Fireworks Stewardship Program” for the “safe and sane” fireworks manufacturers to work in concert with CalFire and the Office of State Fire Marshal to seize, manage and repurpose commercially viable fireworks and thereby reduce the volume of illegal fireworks in California. Additionally, CalFire will coordinate with local police and fire enforcement efforts, fund educational programs to reduce the use of illegal fireworks, and to expediently dispose of seized illegal fireworks.

American Promotional Events, Inc. writes, this bill represents an initial and presumably serious effort by the fireworks industry to help fund statewide as well as local government efforts to stop the influx of illegal fireworks into California. With only 5 to 15% of the "Fireworks Management Fee" having to be spent on disposal and destruction of illegal fireworks that are not "commercially viable", the balance of the revenue can be spent for controlled expenditures by state and local fire and law enforcement agencies to stem the tide of importation of the massive illegal aerial fireworks displays we are witnessing in every community."

Policy consideration. The 2018-19 Budget Act provides funding to SFM to combat illegal fireworks, contingent upon the Legislature passing a policy bill (SB 794). If legislation is not passed and chaptered implementing the provisions of this bill during the 2017-18 Legislative Session, does the SFM and/or the administration, have an alternative plan for the management and disposal of seized illegal fireworks?

Is it good public policy to allow for resale in another state an illegal product that has been seized by regulatory or law enforcement agencies in California? This bill does not provide a mechanism to track the movement of the seized product as it leaves the state nor to detect the product if it reappears in California at a later date. Should some type of seal or permanent sticker be attached to each individual product for further detection by fire and law enforcement agencies?

Can this newly created Fireworks Stewardship Program exist without the provision that allows the SFM to transfer any commercially viable fireworks to the fireworks stewardship organization for shipment to another entity in another state where it can be repurposed or resold?

The bill provides that the fireworks stewardship organization shall reimburse the DFFP for the costs necessary to implement the FSP. The bill states, "the amount reimbursed to the state shall not exceed 3 percent of the annual gross retail sales of safe and sane fireworks as sold by the wholesalers that are members of the fireworks stewardship organization." Can the goals of this bill be achieved without a fee/charge on retail sales of "safe and sane" fireworks?

Before this year, the last two budget cycles did not include an appropriation for the disposal and enforcement of illegal fireworks in California by the SFM. What has created the belief that the only way to address this on-going issue is through the implementation of a Fireworks Stewardship Program, in-lieu of a General Fund allocation? When legal fireworks are sold in California, it generates sales tax revenue to the General Fund.

The SFM has estimated that approximately 80 percent of all fireworks seized are commercially viable or even “Safe and Sane” fireworks. If the SFM is making a determination that certain 1.4G federally approved dangerous fireworks (safe and sane) are acceptable for shipment via the Fireworks Stewardship Program to another state where they are legal for sale, should those same "safe and sane" products be eligible to be reclassified for sale in California?

Prior legislation. SB 677 (Mendoza), 2015-2016 Legislative Session. The bill would have authorized, beginning January 1, 2017, the sale of safe and sane fireworks during the week preceding New Year’s Day and makes numerous changes to the state laws governing fireworks sales and disposals. (Failed passage in Senate G.O. Committee)

SB 777 (Calderon), 2013-2014 Legislative Session. The bill would have created a fireworks sellback program administered by the SFM and would have authorized the state to issue licenses for retail sales of fireworks during the week before New Year’s Day. (The bill was amended to deal with an unrelated issue area)

SB 1468 (Calderon), 2011-2012 Legislative Session. The bill would have authorized the sale of specified fireworks between Christmas and New Year’s Day in 2014-15 and 2015-16. Also would have permitted limited recovery of specified costs by local governments, and provided for two-year fireworks data collection effort to be funded by voluntary contributions from the fireworks industry. (Held in Assembly Appropriations Committee)

AB 1295 (Bermudez), 2005-2006 Legislative Session. The bill would have allowed New Year’s fireworks sales and used fee revenues to pay for disposal costs associated with seized fireworks. (Held in Assembly Appropriations Committee)

AB 1371 (V. Manuel Perez), 2011-2012 Legislative Session. The bill would have allowed New Year’s fireworks sales and authorized local governments to impose permit fees. (Held in Assembly Governmental Organization Committee)

SB 839 (R. Calderon), Chapter 563, Statutes of 2007. Established the SFM Fireworks Enforcement and Disposal Fund. The bill created a mechanism for fireworks enforcement and disposal through new and increased fines and penalties with a revenue sharing component for local jurisdictions as an incentive for increased enforcement of illegal fireworks.

AB 476 (De La Torre), 2007-08 Legislative Session. The bill would have iincreased the fines for violating state fireworks laws from $1,000 to not less than $2,000 and not more than $5,000, and authorized the impounding of vehicles used to transport "dangerous fireworks" by SFM. (Held in Assembly Appropriations)

AB 2310 (Torrico), 2005-06 Legislative Session. The bill would have reduced the penalty for personal use of prohibited fireworks, as defined, from a misdemeanor to an infraction, subject to a citation and a $200 civil penalty, a portion of that penalty to be transferred to the SFM for disposal of fireworks and a portion to remain with the local fire protection agency for administrative costs. (Failed on the Senate Floor)

AB 1295 (Bermudez), 2005-006 Legislative Session. The bill would have authorized the sale of fireworks from December 26 through January 1 each year and established the SFM Dangerous Fireworks Management Fund. (Held in Assembly Appropriations Committee)

AB 923 (Chavez), 2005-06 Legislative Session. The bill would have authorized the sale of fireworks from December 26 to January 1 and creates the SFM Dangerous Fireworks Management Fund for the deposit of surcharges assessed on the sale of fireworks to pay for the disposal costs of seized fireworks. (Never heard in Assembly Governmental Organization Committee)

AB 2090 (Miller), Chapter 363, Statutes of 1998. Authorized the SFM to license the sale of fireworks from December 26, 1999 through January 1, 2000 in order to celebrate the millennium.

REGISTERED SUPPORT / OPPOSITION:

Support

American Promotional Events, Inc.

California Association of Nonprofits

California Fire Chiefs Association

City of Folsom Fire Department

Fire Districts Association of California

Sacramento Metropolitan Fire District

Opposition

Howard Jarvis Taxpayers Association

Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531

 THIRD READING  

Bill No: SB 794

Author:

:

Vote:

SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 8-0, 4/24/17

AYES: Hill, Fuller, Galgiani, Glazer, Hernandez, Newman, Pan, Wilk

NO VOTE RECORDED: Dodd

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT:

SOURCE: Author

DIGEST:

This bill requires recreational marijuana products to be stamped with a universal symbol and sold in packaging that is tamperproof, and, if the product contains more than one serving, resealable.

ANALYSIS:

Existing law:

1. Establishes the Bureau of Marijuana Control (Bureau) under the Department of Consumer Affairs (DCA) to regulate the medical and recreational cannabis industry. (Business and Professions Code (BPC) § 26010)
2. Requires marijuana and marijuana products to be labeled and placed in child resistant package. (BPC §§ 19347, 26120 (a))
3. Prohibits marijuana and marijuana product packages and labels from being made to be attractive to children. (BPC §§ 19347, 26120 (b))
4. Prohibits marijuana products from being designed to be appealing to children or from being easily confused with commercially sold candy or foods that do not contain marijuana. (BPC § 26130 (a)(1))
5. Authorizes the Bureau or Department of Public Health to establish other requirements for marijuana and marijuana product labels. (BPC § 26120)
6. Requires marijuana products to be:
   1. Produced and sold with a standardized dosage of cannabinoids not to exceed 10 milligrams tetrahydrocannabinol (THC) per serving.
   2. Delineated or scored into standardized serving sizes if the marijuana product contains more than one serving and is an edible marijuana product in solid form.
   3. Homogenized to ensure uniform disbursement of cannabinoids throughout the product.
   4. Manufactured and sold under sanitation standards established by the State Department of Public Health, in consultation with the Bureau, for preparation, storage, handling and sale of food products.
   5. Provided to customers with sufficient information to enable the informed consumption of such product, including the potential effects of the marijuana product and directions as to how to consume the marijuana product, as necessary. (BPC § 26130)

This bill:

1. Requires recreational marijuana products to be stamped, marked, or otherwise imprinted on each single serving with a universal symbol, which shall be designed by the Bureau. The symbol shall be placed directly on at least one side of each edible marijuana product serving so as to be distinguishable and easily recognizable.
2. Requires the universal symbol to be centered either horizontally or vertically on the single serving. If centered horizontally, the height and width of the symbol shall be at least 25 percent of the serving’s width, but not less than one-quarter inch square. If centered vertically, the height and width of the symbol shall be at least 25 percent of the serving’s height, but not less than one-quarter inch square.
3. Requires recreational marijuana products to be sold in packaging that is tamperproof, child resistant, and, if the product contains more than one serving, resealable.
4. Makes legislative findings and declarations that this bill is consistent with, and furthers the purposes of, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA).

Background

Existing law, the AUMA, regulates the cultivation, distribution, and use of marijuana for nonmedical purposes by individuals 21 years of age and older, including edible marijuana products. While it establishes some parameters for labeling and packaging, it does not address labeling the actual marijuana products themselves.

Colorado is presently the only other state with legalized cannabis that requires marijuana products themselves to be marked. Other states, such as Oregon, require a universal symbol on the product label or packaging, but have not directly addressed the individual products.

Colorado’s laws also anticipate that edibles may be placed on display at dispensaries, but that such products must be placed in an opaque, resealable, and child-resistant package upon sale.

Colorado limits the categories of products that must be directly labeled, however, to the following categories:

• Chocolate
• Soft confections
• Hard confections or lozenges
• Consolidated baked goods (e.g. cookie, brownie, cupcake, granola bar)
• Pressed pills and capsules

Topical products, tinctures, and other marijuana-infused products that are liquids, loose bulk goods (e.g. granola, cereals, popcorn), or powders, are exempt from the marking requirements, as long as they comply with other packaging requirements.

This bill does not specifically identify “edibles,” so “single servings” may apply to a range of marijuana products, including topical creams, tinctures, etc. This bill also does not address how to deal with marking liquids, such as infused oils, or smaller edibles, like popcorn or granola. The author’s office indicates they plan to further refine this bill.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 5/10/17)

American Academy of Pediatrics

California Police Chiefs Association

California Teamsters Public Affairs Council

OPPOSITION: (Verified 5/10/17)

None received

ARGUMENTS IN SUPPORT: The California Teamsters Public Affairs Council writes, “It is imperative that edible marijuana products not fall into the hands of children or others who are not aware that they are consuming a drug rather than candy, baked goods, or other normal food products. Marijuana is a powerful drug and should only be consumed by people who are aware of its effects.”

Prepared by:

5/10/17 15:33:57

**** END ****

SENATE COMMITTEE ON

BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT

Senator Jerry Hill, Chair

2017 - 2018 Regular

Bill No: Hearing Date: April 24, 2017

Subject:

SUMMARY:

Requires recreational marijuana products to be stamped with a universal symbol and sold in packaging that is tamperproof, and, if the product contains more than one serving, resealable.

Existing law:

1. Establishes the Bureau of Marijuana Control (Bureau) under the Department of Consumer Affairs (DCA) to regulate the medical and recreational cannabis industry. (Business and Professions Code (BPC) § 26010)
2. Requires marijuana and marijuana products to be labeled and placed in child resistant package. (BPC §§ 19347, 26120 (a))
3. Prohibits marijuana and marijuana product packages and labels from being made to be attractive to children. (BPC §§ 19347, 26120 (b))
4. Prohibits marijuana products from being designed to be appealing to children or from being easily confused with commercially sold candy or foods that do not contain marijuana. (BPC § 26130 (a)(1))
5. Authorizes the Bureau or Department of Public Health to establish other requirements for marijuana and marijuana product labels. (BPC § 26120)
6. Requires marijuana products to be:
   1. Produced and sold with a standardized dosage of cannabinoids not to exceed ten milligrams tetrahydrocannabinol (THC) per serving.
   2. Delineated or scored into standardized serving sizes if the marijuana product contains more than one serving and is an edible marijuana product in solid form.
   3. Homogenized to ensure uniform disbursement of cannabinoids throughout the product.
   4. Manufactured and sold under sanitation standards established by the State Department of Public Health, in consultation with the Bureau, for preparation, storage, handling and sale of food products.
   5. Provided to customers with sufficient information to enable the informed consumption of such product, including the potential effects of the marijuana product and directions as to how to consume the marijuana product, as necessary. (BPC § 26130)

This bill:

1. Requires recreational marijuana products to be stamped, marked, or otherwise imprinted on each single serving with a universal symbol, which shall be designed by the Bureau. The symbol shall be placed directly on at least one side of each edible marijuana product serving so as to be distinguishable and easily recognizable.
2. Requires the universal symbol to be centered either horizontally or vertically on the single serving. If centered horizontally, the height and width of the symbol shall be at least 25 percent of the serving’s width, but not less than one-quarter inch square. If centered vertically, the height and width of the symbol shall be at least 25 percent of the serving’s height, but not less than one-quarter inch square.
3. Requires recreational marijuana products to be sold in packaging that is tamperproof, child resistant, and, if the product contains more than one serving, resealable.
4. Makes Legislative findings and declarations that this bill is consistent with, and furthers the purposes of, the Control, Regulate and Tax Adult Use of Marijuana Act.

FISCAL EFFECT:

Unknown. This bill is keyed “fiscal” by the Legislative Counsel.

COMMENTS:

1. Purpose. This bill is sponsored by the Author. According to the Author’s office, “In 2016 Proposition 64 legalized the use of recreational adult use marijuana; however the proposition did not address a host of issues impacting consumer safety.”
2. Background. Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), regulates the cultivation, distribution, and use of marijuana for nonmedical purposes by individuals 21 years of age and older, including edible marijuana products. While it establishes some parameters for labeling and packaging, it does not address labeling the actual marijuana products themselves.
3. Colorado. Colorado is presently the only other state with legalized cannabis that requires marijuana products themselves to be marked. Other states, such as Oregon, require a universal symbol on the product label or packaging, but have not directly addressed the individual products.

Colorado’s laws also anticipate that edibles may be placed on display at dispensaries, but that such products must be placed in an opaque, resealable, and child-resistant package upon sale.

Colorado limits the categories of products that must be directly labeled, however, to the following categories:

• Chocolate
• Soft confections
• Hard confections or lozenges
• Consolidated baked goods (e.g. cookie, brownie, cupcake, granola bar)
• Pressed pills and capsules

Topical products, tinctures, and other marijuana-infused products that are liquids, loose bulk goods (e.g. granola, cereals, popcorn), or powders, are exempt from the marking requirements, as long as they comply with other packaging requirements.

1. Related Legislation. AB 350 (Salas) would specify that a marijuana product is deemed to be appealing to children or easily confused with commercially sold candy if it is in the shape of a person, animal, insect, fruit, or in another shape normally associated with candy, but would not prohibit a licensee from making an edible marijuana product in the shape of the licensee’s logo. (Status: This bill is currently pending in the Assembly Health Committee.)

AB 420 (Wood) would require an advertisement for the sale of nonmedical marijuana or nonmedical marijuana products to include, at a minimum, the license number of the AUMA licensee responsible for its content. (Status: This bill is currently pending in the Assembly Business and Professions Committee.)

AB 823 (Chau) contains the same provisions as this bill, less the requirements that recreational marijuana products be sold in tamperproof, resealable packaging. (Status: This bill is currently pending in Assembly Health Committee)

AB 1143 (Gray) would prohibit advertising marijuana adjacent to and within specified distances of certain highways. (Status: This bill is currently pending in the Assembly Governmental Organization Committee.)

SB 663 (Nielsen) establishes criteria for packaging that shall be considered “attractive to children.” (Status: This bill is currently pending in the Senate Appropriations Committee.)

SB 162 (Allen) prohibits the advertising and selling of medical and recreational cannabis products on the Internet and restricts the use of branded merchandise for medical and recreational cannabis products. (Status: This bill is currently pending in the Senate Appropriations Committee.)

SB 175 (McGuire) expands marijuana appellation of origin protections to advertising and prohibits the use of names that sound similar to a California county in advertising, labeling, marketing, or packaging of marijuana products if it is likely to mislead consumers as to the product’s appellation of origin. (Status: This bill is currently pending in the Senate Appropriations Committee.)

1. Prior Related Legislation. SB 837 (Budget, Chapter 32, Statutes of 2016) defined “misbranding” of a cannabis product to include false or misleading labeling, and makes it unlawful to manufacture, sell, deliver, hold, or offer for sale a misbranded medical cannabis product.

AB 243 (Wood, Chapter 688, Statutes of 2015) requires CDFA, DPR, 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 cannabis and its cultivation, as specified. This bill also establishes licensing fees, fines, and penalties. 

AB 266 (Bonta et al., Chapter 689, Statutes of 2015) established the Act for the licensure and regulation of medical cannabis and establishes the Bureau of Medical Cannabis Regulation within the DCA. 

SB 643 (McGuire, Chapter 719, Statutes of 2015) set standards for the licensed cultivation and physician prescription of medical cannabis; establishes a track and trace program for the transportation of medical cannabis; and authorizes counties to impose a tax on medical cannabis. 

1. Other Possible Clarifications to be Considered. This bill does not specifically identify “edibles,” so “single servings” may apply to a range of marijuana products, including topical creams, tinctures, etc. This bill also does not address how to deal with marking liquids, such as infused oils, or smaller edibles, like popcorn or granola. The Author’s office indicates they plan to further refine this measure.

SUPPORT AND OPPOSITION:

Support:

None on file as of April 18, 2017.

Opposition:

None on file as of April 18, 2017.

-- END --