DeVita’s Marijuana Laws 11/4/15

The California Medical Marijuana Laws
An interpretation by Emerald Growers
Presented by DeVita
• Summary
The legislative package passed consists of three bills: AB 243, AB 266, and SB 643. The basic foundation of this legislative package is that: “no person shall engage in commercial cannabis activity without possessing both a state license and a local permit, license, or other authorization.”
 Provide for the licensure of commercial cannabis activity in California:
 Provides environmental protections
 Provides specific opportunities for small and specialty cultivators to be licensed
 Create a multi-agency framework for licensing
• AB 243
 Requires the Department of Food and Agriculture, the Department of Pesticide Regulation, the State Department of Public Health, the Department of Fish and Wildlife, and the State Water Resources Control Board to promulgate regulations or standards relating to medical marijuana and its cultivation.
 Requires various state agencies to take specified actions to mitigate the impact that marijuana cultivation has on the environment.
 Requires a state licensing authority to charge each licensee under the act a licensure and renewal fee.
 Imposes fines and civil penalties for violations of the law
• AB 266
 Licenses and regulates commercial medical cannabis
 establishes within the Department of Consumer Affairs the Bureau of Medical Marijuana Regulation, under the supervision and control of the Director of Consumer Affairs
 Requires the Board of Equalization, in consultation with the Department of Food and Agriculture, to adopt a system for reporting the movement of commercial cannabis and cannabis products.
 imposes certain fines and civil penalties for violations
 Provides that actions of licensees with the relevant local permits, in accordance with the act and applicable local ordinances, are not offenses subject to arrest, prosecution, or other sanction under state law
• SB 643
 standards for a physician and surgeon prescribing medical cannabis
 require an applicant to furnish a full set of fingerprints for the purposes of conducting criminal history record checks.
 creating a new crime (misdemeanor) for physicians and surgeons who violate the guidelines
 Require the Governor appoint, subject to confirmation by the Senate, a chief of the Bureau of Medical Marijuana Regulation
 require the Department of Consumer Affairs to have the sole authority to create, issue, renew, discipline, suspend, or revoke licenses
 require the Department of Food and Agriculture to administer the provisions of the act relating to cultivation
 require the State Department of Public Health to administer the provisions of the act related to manufacturing and testing of medical cannabis
 authorize counties to impose a tax upon specified cannabis-related activity.

 require an applicant for a state license pursuant to the act to provide a statement signed by the applicant under penalty of perjury
 establishing duties relating to the environmental impact of cannabis and cannabis products.
According to the, Marijuana Policy Project: “Not all the provisions are ideal, but taken as whole, the legislation passed by California’s lawmakers is a thoughtful and reasonable approach to regulation.”
https://www.mpp.org/states/california/the-california-medical-marijuana-regulation-and-safety-act/
• Timeline For Implementation
Summary: The timeline for licensure is of critical importance to business owners. The dates below all appear in the code.
• July 1, 2015
Deadline to qualify for vertical integration loophole.
• January 1, 2016
Deadline for compliance with local policy in order to receive priority processing for licensure
• March 1, 2016
Deadline for local government to choose to administer a permit program or prohibit cultivation. If this deadline is not met the state will become the sole licensing authority.
• January 1, 2018
Deadline for compliance with local policy to ensure no disruption to your business
• Licenses Created:
 Type 1 = Cultivation; Specialty outdoor; Small.
 Type 1A = Cultivation; Specialty indoor; Small.
 Type 1B = Cultivation; Specialty mixed-light; Small.
 Type 2 = Cultivation; Outdoor; Small.
 Type 2A = Cultivation; Indoor; Small.
 Type 2B = Cultivation; Mixed-light; Small.
 Type 3 = Cultivation; Outdoor; Medium.
 Type 3A = Cultivation; Indoor; Medium.
 Type 3B = Cultivation; Mixed-light; Medium.
 Type 4 = Cultivation; Nursery.
 Type 6 = Manufacturer 1.
 Type 7 = Manufacturer 2.
 Type 8 = Testing.
 Type 10 = Dispensary; General.
 Type 10A = Dispensary; No more than three retail sites.
 Type 11 = Distribution.
 Type 12 = Transporter.

All license fees shall be set on a scaled basis by the licensing authority, dependent on the size of the business.
• Restrictions on vertical integration:
A licensee may only hold a state license in up to two separate license categories, as follows:
Type 1, 1A, 1B, 2, 2A, or 2B licensees may also hold either a Type 6 or 7 state license.
Type 6 or 7 licensees, or a combination thereof, may also hold either a Type 1, 1A, 1B, 2, 2A, or 2B state license.
Type 6 or 7 licensees, or a combination thereof, may also hold a Type 10A state license.
Type 10A licensees may also hold either a Type 6 or 7 state license, or a combination thereof.
Type 1, 1A, 1B, 2, 2A, or 2B licensees, or a combination thereof, may also hold a Type 10A state license.
Type 10A licensees may apply for Type 1, 1A, 1B, 2, 2A, or 2B state license, or a combination thereof.
Type 11 licensees shall apply for a Type 12 state license, but shall not apply for any other type of state licenses
A Type 10A licensee may apply for a Type 6 or 7 state license and hold a 1, 1A, 1B, 2, 2A, 2B, 3, 3A, 3B, 4 or combination thereof if, under the 1, 1A, 1B, 2, 2A, 2B, 3, 3A, 3B, 4 or combination of licenses thereof, no more than four acres of total canopy size of cultivation by the licensee is occurring throughout the state during the period that the respective licenses are valid. All cultivation pursuant to this section shall comply with local ordinances. This paragraph shall become inoperative on January 1, 2026.
• Cultivation licenses
“Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
Type 1, or “specialty outdoor,” for outdoor cultivation using no artificial lighting of less than or equal to 5,000 square feet of total canopy size on one premises, or up to 50 mature plants on noncontiguous plots.
Type 1A, or “specialty indoor,” for indoor cultivation using exclusively artificial lighting of less than or equal to 5,000 square feet of total canopy size on one premises.
Type 1B, or “specialty mixed-light,” for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, of less than or equal to 5,000 square feet of total canopy size on one premises
Type 2, or “small outdoor,” for outdoor cultivation using no artificial lighting between 5,001 and 10,000 square feet, inclusive, of total canopy size on one premises.
Type 2A, or “small indoor,” for indoor cultivation using exclusively artificial lighting between 5,001 and 10,000 square feet, inclusive, of total canopy size on one premises.
Type 2B, or “small mixed-light,” for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, between 5,001 and 10,000 square feet, inclusive, of total canopy size on one premises.
Type 3, or “outdoor,” for outdoor cultivation using no artificial lighting from 10,001 square feet to one acre, inclusive, of total canopy size on one premises. The Department of Food and Agriculture shall limit the number of licenses allowed of this type. Type 3A, or “indoor,” for indoor cultivation using exclusively artificial lighting between 10,001 and 22,000 square feet, inclusive, of total canopy size on one premises. The Department of Food and Agriculture shall limit the number of licenses allowed of this type.
Type 3B, or “mixed-light,” for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority between 10,001 and 22,000 square feet, inclusive, of total canopy size on one premises. The Department of Food and Agriculture shall limit the number of licenses allowed of this type.
Type 4, or “nursery,” for cultivation of medical cannabis solely as a nursery. Type 4 licensees may transport live plants.
• Other cultivation related highlights
⁃ Lawful California medical cannabis growers and caregivers urge the Department of Pesticide Regulation to provide guidance on whether the pesticides currently used at most cannabis cultivation sites are safe
⁃ The Department of Food and Agriculture shall promulgate regulations governing the licensing of indoor and outdoor cultivation sites.
⁃ Ensure that individual and cumulative effects of water diversion and discharge associated with cultivation do not affect the instream flows needed for fish spawning, migration, and rearing, and the flows needed to maintain natural flow variability.
⁃ Not later than January 1, 2020, the Department of Food and Agriculture in conjunction with the bureau, shall make available a certified organic designation and organic certification program for medical marijuana, if permitted under federal law and the National Organic Program
⁃ The bureau may establish appellations of origin for marijuana grown in California.
⁃ It is unlawful for medical marijuana to be marketed, labeled, or sold as grown in or to use the name of a California a California county when the medical marijuana was not grown in that county.
• The distributorship
All licensees holding cultivation or manufacturing licenses shall send all medical cannabis and medical cannabis products cultivated or manufactured to a distributor, as defined in Section 19300.5, for quality assurance and inspection by the Type 11 licensee and for a batch testing by a Type 8 licensee prior to distribution to a dispensary.
Contact: Hezekiah Allen, 916 879 5063 or hezekiah@emeraldgrowers.org