A Look At Legalization & Legislation For California in 2016 – an update from PAN

2015 left us with one piece of good news.  A federal spending bill, the Rohrabacher-Farr Amendment, prohibits federal authorities from using its funds to prosecute medical marijuana dispensaries compiling with state/local rules.  In a recent court ruling, U.S. District Judge Charles Breyer decided in favor of the dispensary, which allows the Marin Alliance for Medical Marijuana to reopen.  If upheld on appeal, other dispensaries currently under federal prosecution may see similar rulings.

Soon after this court decision headlines over-stated that marijuana prohibition had ended and the ‘war is over.’  The war is not over and while federal interference is blocked for now the battles are here at home.   In the final hours of the 2015 legislative session the California legislature passed the state’s first set of medical marijuana regulations known as MMRSA, the Medical Marijuana Regulation and Safety Act. 

These three bills: AB 266, AB 243, and SB 643, by authors Bonta, Wood, and McGuire, respectively, along with other co-authors, create the bureaucracy for licensing and enforcement, strict environmental compliance, and multiple business licensing categories for the medical cannabis industry.   The issue of fees and taxation was left out of the bills intentionally due to the lack of time and votes.  ‘Clean-up’ legislation is already underway, and the first of such bills already sits on the Governor’s desk to deal with the first of many arbitrary dates in MMRSA.

This date, March 1, 2016, has spread fear and consternation among local legislatures across the state resulting in dozens of new bans on medical marijuana activities.  The wording of the state law indicated that local municipalities lacking any rules for medical marijuana cultivation by or before March 1, 2016, would default to the state’s rules.  The bill’s author told reporters the wording was a ‘mistake,’ presumably one of many mistakes in MMRSA to be cleaned up this session.

MMRSA by design pulls the rug out from under many authentic medical marijuana collectives and cooperatives in California, which is ironic because the driving force behind MMRSA, Governor Jerry Brown, was also the author of the AG Guidelines of 2008.  The AG Guidelines put into question the legality and compliance of storefront medical marijuana dispensaries and emphasized that a completely closed-loop, patient-to-patient, garden-to-distribution, non-profit business model as a way to possibly prevent diversion.  

All of this is turned on its head under MMRSA.  Under MMRSA the closed-loop is no longer allowed and dispensaries will have to be hands-off of some operations of the business and rely on a third party with the appropriate permits.  Producers, manufactures, transporters and other personnel are no longer required to be legally qualified patients or caregivers.  Businesses no longer have to be non-profit.   All of which appears to be fine for new applicants but MMRSA established another arbitrary date, July 1, 2015.  Any medical marijuana business operating prior to this date with local approval may seek grandfathering status with the state that allows the business to continue to operate as is until 2026. 

Consider upon release of the AG Guidelines, businesses wanting to operate in the spirit of the law created agreements and by laws to demonstrate a closed-loop, membership-based, not-for-profit organization of qualified patients and caregivers.  Some organizations chose to operate garden-direct and bypassed keeping a storefront dispensary altogether.   As a result there are a significant number of authentic medical marijuana producers and providers that have operated for years in the spirit of Prop. 215, the AG Guidelines, paid taxes, maintained good standing with the state, but never gained local approval because such a permit did not exist or was not required for non-storefront related activities.

While the veil of the necessary environmental protections in MMRSA keeps it looking shiny, there are many problematic provisions that could thin out the number of compassionate medical marijuana businesses in favor of a pocket of industry players with high-paid lobbyists in Sacramento seeking to drive the entire direction of California’s cannabis industry.  However, MMRSA is currently being challenged in court for violating Proposition 215, and there’s the effort to legalize cannabis in California in 2016.

PAN has always argued that the only way to legally broaden the Compassionate Use Act is through the voter initiative process.  PAN is supporting MCLR, the Marijuana Control, Legalization and Revenue Act of 2016. 

See the initiative’s proponents and read the initiative here: http://www.oag.ca.gov/system/files/initiatives/pdfs/15-0085%20%28Marijuana%20V3%29.pdf?

PAN’s board members provided input and language to the initiative that protects low-income patient access and compassionate services.  Importantly, MCLR is the only initiative that provides communities with the tools to overturn the bans and start to undo the mess already being created by MMRSA.  Taxation, fees and the approval process under MCLR are fair and reasonable for all cannabis businesses, large and small, for profit or not.  Personal cultivation is lawful and there’s no jail time for pot.   Medical cannabis is protected, adult use is legalized, and industrial hemp agriculture is implemented under MCLR with reasonable regulations and safeguards.  MCLR is comprehensive and smart, and drafted as an open-source process with the input of over 1,200 people, most of which are patient advocates, industry experts, lawyers, political consultants and concerned citizens.   Several attorneys, specializing in various aspects of the law, have provided valuable input prior to the final filing with the Secretary of State.  I encourage you to read the initiative and get involved. 

Read the California Attorney General’s Title and Summary of MCLR here:

http://www.marijuanacontrollegalizationrevenueact.com/wp-content/uploads/2015/12/15-0085A1-Final-TS.pdf

There are many initiatives filed to ‘legalize’ marijuana in California in 2016.  Therefore, it’s vital that you stay informed.   The battle to protect California’s unique cannabis heritage will be on the ballot this year.   I urge you to not be fooled by the power of persuasion that really big money buys.  The initiative touted by the media, the AUMA (Adult Use of Marijuana Act) backed by Napster and Facebook billionaire Sean Parker, is the adult legalization companion piece to MMRSA and written by Sacramento and law enforcement.  AUMA is a ballot initiative disguised as a voter initiative and backed by very large donors to ensure its place on the November ballot.

California has a great history of grassroots efforts and activism, and right now it’s the only action that will protect the cannabis industry from misguided bills, local bans, and a possible mega-corporation take-over.  Please contact PAN for more information, to become a donor, or to volunteer. 

We need to gather 500,000 raw signatures to qualify MCLR for the ballot.  PAN has already coordinated a supremely qualified professional team to execute the signature gathering effort for MCLR.  The only thing we need is your financial support to hit the streets.  Contributions pay for petition printing and signature gathering.   Please don’t let the AUMA be the only initiative to make the ballot.  MCLR will force the debate on important issues like bans and jail time and give voters a choice.  

PAN is uniquely positioned as a non-profit to take advantage of little known code that allows 501(c)(3) organizations to contribute to a political campaign.  This type of fundraising effort is most effective when the organization takes in many smaller contributions.  Donations are still 100% tax-deductible and election authorities do not require your personal information.  Large contributions can still be handled through our PAC. 

I ask you to please make a one-time contribution of $35.00 - $5,000.00, and please ask your colleagues to do the same.  There is a donate button set up for the effort here: http://legalizeitcalifornia.org/donate/.  The donate button here: http://cannabissaveslives.org can take your donation as well, just type MCLR in the memo.

Please do not hesitate to contact me with any questions.  I look forward to making this happen with you.

Degé Coutee

President, Executive & Program Director

Patient Advocacy Network

Federal Interference In State Medical Marijuana Ends… But Only For Those That Can Comply

Medical marijuana dispensary operators in California, especially those still battling the federal government, are rejoicing over a recent federal court ruling.  United States District Judge Charles R. Breyer ordered a federal injunction against one of the state’s oldest dispensaries be lifted, ruling the recently enacted Rohrabacher-Farr Amendment prohibits the federal government from prosecuting dispensaries that are following state law.  However, just a few weeks ago, following state law in California meant interpreting the AG Guidelines as protocols for medical marijuana dispensary operations as the state had no definitive or legal regulations.  That has changed.

Then Attorney General Jerry Brown penned the guidelines in 2008, which dispensaries, collectives and cooperatives took as the only guidance from the state at the time, and while many cities still did not have local regulations in place.  These guidelines, while not law, stated that storefront dispensaries may be in less legal jeopardy if they operated as not for profit, received all cultivated cannabis from legally qualified patients and caregivers and the business operated as a closed-loop by and for patients. 

Come now the end of the 2015 California legislative session where the current Governor Jerry Brown has signed a set of regulatory bills (AB 266, AB 243 and SB 643) that have completely turned his guidelines upside down:  no requirement to be not for profit, no requirement to be a patient or caregiver in order to cultivate or manufacture, no requirement to be a patient or caregiver to dispense...  So, getting in compliance with state law is going to be a fete for those that built their operating procedures around the AG Guidelines.  These guidelines did not spell out how to be legal but how medical marijuana operations might be lawful. 

In order to be considered for a state dispensary permit, the operation has to have local approval.  One of the many ways in which collectives and cooperatives interpreted the guidelines was to cut out the storefront and operate as a patient-direct garden.  Those that were willing to talk about their operations to local officials were told, “if you’re not running a storefront business, then you are not required to get a permit.”  Patient-direct collectives and cooperatives became the invisible method for fulfilling Prop. 215, but now that statewide regulations are in place, these operations are in jeopardy, as no local permit exists for them. 

Likewise, the new medical marijuana laws have torn apart the closed loop by not allowing vertical integration. Collectives and cooperative that felt forced to keep close tabs on the cultivation and manufacture of their medical cannabis products will be limited on what other permits for which they can apply – forcing them to let go of some of their operations.  Dispensaries are not even allowed to go pick up their products under the new rules, but are forced to hire a licensed third party transporter.  So, again, getting in compliance with the new state laws is going to be a task for many and possibly financially devastating, but you better do it because this compliance is now the only thing standing between you and the feds – who are still wringing their hands for the opportunity to make an example of someone.

Related links:

Medical Marijuana Ruling Highlights Federal, State Discord

http://www.governing.com/topics/health-human-services/tns-medical-marijuana-ruling.html

GUIDELINES FOR THE SECURITY AND NON-DIVERSION OF MARIJUANA GROWN FOR MEDICAL USE

http://ag.ca.gov/cms_attachments/press/pdfs/n1601_medicalmarijuanaguidelines.pdf

Gov. Brown signs bill to regulate medical marijuana industry

http://www.pressdemocrat.com/news/4596903-181/gov-brown-signs-bill-to

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Patient Advocacy Network has provided compliance trainings, workshops and consultations for nearly 10 years and to well over a thousand dispensaries in California.  Contact PAN at (323) 334-5282 if you have any questions about compliance with local or state regulations.  We want to help as many Compassionate providers as possible continue to serve patients and thrive. 

California Medical Marijuana Bills Await Governor's Signature, Industry Considers Next Steps

Willie Brown watches Gov. Jerry Brown sign a bill in 2011.

The 2015 California legislative session ended with three medical marijuana regulatory bills being passed through both houses in the last 6 hours of the session.  New statewide medical cannabis rules are expected to be signed by the Governor anytime.  These rules establish licensing guidelines for all commercial medical cannabis activities including cultivation and manufacture of concentrates. 

These rules are not without flaws or criticism.  The amended bills were kept under tight wrap until just before they were voted upon near midnight on the final day of the session.  The senate and assembly suspended the rules that allow for public input ensuring no one could provide feedback in the 11^th hour.  There is also still legal debate on just how much these bills tread on Proposition 215, the 1996 voter-approved initiative known as the Compassionate Use Act. 

However, the rules are better than expected given previous versions and the direction other states have taken.  For example, New York does not allow flowers and Washington does not allow patients to grow their own, issues perpetuating a black or gray market in those states. 

Previous versions of California’s bills put medical marijuana under the purview of the Alcohol Beverage Control Board, a move harshly criticized by patients.  Consumer Affairs, Agriculture and Public Health are the departments that oversee commercial cannabis operations in California, which is far more appropriate.

PAN has received many calls from patients and providers wanting to learn how to comply with the new rules or how their businesses may be affected.  Here are some things to consider:

Getting a state license is contingent upon local approval.  In order to apply for state licensing, a cannabis business must have local approval.  Bans are still a huge issue.  Medical cannabis operations in communities with a ban are not allowed to apply for a state license and are in jeopardy of legal action. 

Everything you knew about the AG Guidelines is wrong.  The news bills have dismantled the AG Guidelines and parts of SB 420 by allowing commercial retail of medical marijuana and phasing out closed-loop, not-for-profit collectives and cooperatives.   

There are also many compliance dates in the bills.  The rules seem to acknowledge that not all aspects of the law can be fully functioning or implemented all at once.  Compliance will fold in as licenses become available through the newly formed Bureau of Medical Marijuana Regulation, such as for independent laboratory testing. (For example, the rules seem to recognize cannabis can’t be tested per the law until these approved testing sites exist.)

Patients can still grow their own; 100 sq. ft of total grow space.  Caregivers can grow for up to 5 other patients, 100 sq. ft of grow space for each patient.  No licensing is required as long as all activity is non-commercial.

The California legislature acknowledges these rules are not complete and have stated they will start working on amendments January 2016.  Likewise, voter initiatives to end bans, protect medical, as well as legalize cannabis for adult use are in motion.  While a set of rules will be on the books soon, those rules will probably change sooner than later.

There are numerous other functions of these laws to consider.  Any one with questions or concerns can contact PAN directly.

AB 266 text

http://leginfo.legislature.ca.gov/faces/billCompareClient.xhtml?bill_id=201520160AB266

AB 243 text

https://leginfo.legislature.ca.gov/faces/billCompareClient.xhtml?bill_id=201520160AB243

SB 643 text

https://leginfo.legislature.ca.gov/faces/billCompareClient.xhtml?bill_id=201520160SB643

Additionally, proponents of the statewide voter initiatives are making final amendments.  The drafting of the Marijuana Control, Legalization and Revenue Act of 2016, has always been an open-source process.  All are welcome to participate.  You are encouraged to review the most recent draft of the initiative and provide any feedback.  The initiative will be filed for a final title and summary in two weeks. 

MCLR text

http://www.marijuanacontrollegalizationrevenueact.com/wp-content/uploads/2015/07/MCLR2016Version2.7.10-Final.pdf

Feedback on MCLR can be sent to:

http://www.marijuanacontrollegalizationrevenueact.com/contact/

or feel free to contact PAN with any questions.

Governor Brown, Don’t Let This Go Down

As we start this post, just after midnight, with less that 24 hours before the 2015 California legislative session ends, the state has not yet posted updated versions of the three medical marijuana regulatory bills: AB 243, AB 266 and SB 643.   In the finals days of the session, referred to as ‘Floor Session Only,’ the legislature gutted all three of these bills and re-referred them back to committee, naked.  

The other factor at play is that the Senate and Assembly have suspended some key rules.  One set of rules that is suspended allows the legislature to amend bills without posting the bill or allowing public input/comment.  The other set of suspended rules allows the legislature to call committees and hear bills despite this period being the ‘floor session only,” without public knowledge or input on the committee level.   This is what we are referring to when we state that the process has moved behind closed doors.

In the last couple hours the media has begun to post that a deal has been struck and the bills will be voted on today.  However, no one has yet to see them and it is anticipated they look very different that they did before they were gutted.   The Governor and the California Legislature have bypassed the democratic process while claiming to the media that the process has been transparent and everyone is at the table.  Not true!

Take Action!

1.) **Contact Governor Brown.

Phone: (916) 445-2841

Fax: (916) 558-3160

Email: governor@governor.ca.gov

facebook: https://www.facebook.com/jerrybrown

Twitter:  @JerryBrownGov

Let him know: Governor Brown, Don’t Let This Go Down

No 11^th hour, backdoor deals.  The public has the right to know what’s in these bills AND be allowed to provide input, feedback, comments.  Don’t thwart the democratic process! 

2.) ** Contact the bills’ authors with the same message.

Assemblymember Rob Bonta

Phone: (916) 319-2018

Fax: (916) 319-2118

Email: assemblymember.bonta@assembly.ca.gov

cc emails to: max.mikalonis@asm.ca.gov

facebook: https://www.facebook.com/Assemblymember-Rob-Bonta-160502927367568/timeline/

Twitter: @RobBonta

Senator Mike McGuire

Phone: (916) 651-4002

Fax: (916) 651-4902

Email: senator.mcguire@sen.ca.gov (despite this being his listed email, messages are bouncing - try this - http://sd02.senate.ca.gov/contact/email)

facebook: https://www.facebook.com/SupervisorMikeMcGuire

Twitter:@ilike_mike

3.) **  Also send a copy of what you forward to the Governor and the authors, to YOUR California Representatives.

http://findyourrep.legislature.ca.gov

You have one assembly member and one state senator.  Most of their contact information is on their individual websites. 

4.) ** Forward this information to everyone and post to all your social media all day today.

“Never doubt that a small group of thoughtful, committed, citizens can change the world. Indeed, it is the only thing that ever has.”  ― Margaret Mead

Concerns with previous versions of these bills:

*  Excessive taxes and fees - these regulations are to support the Compassionate Use Act not be a revenue stream for the state.  The CUA requires that medical cannabis be affordable. Some recent proposals would make medical cannabis so expensive the most vulnerable patients in the state would no longer be able to afford it - the people for whom Prop. 215 was originally intended. (The state will make money from legalization!)  But please, not off of the patients.

* Arbitrary dates that put one group of dispensaries in a different category that other just based on when they opened.  Many communities are still grappling with regulations and patients who have been working with their cities to operate legitimately should not be held to a different standard.

*  Special exemptions from accountability or transparency - previous versions of these bills would've allowed certain players to not have to acquire state certification and hence be exempt from any of those fees or accountability, clearly violating equal protection.

* Over-restrictive permitting - I have seen many regulatory attempts that are so cumbersome and expensive that it constitutes a de facto ban or supports a monopoly.

* No new criminal penalties!

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It's Complicated

Bill info at:  https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201520160AB243

Bill info at: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201520160AB266

Bill info at:  https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201520160SB643

The current status of the California state legislature's medical marijuana bills is complicated.  The 2015 session is ending in a few days and the legislature doesn't seem any closer to crafting a workable set of guidelines for authentic medical cannabis providers.

Just days ago Governor Brown weighed in on language and now all of that language is gone.  All of it.  PAN watched as each bill was updated with the entirety of each bill redlined.  The only language left is the intent of the original motion.  (The links with each image above will take you to the complete file on that bill.)

Also complicated is each bill now mentions the other..."This measure shall become operative only if.." the other bills become operative.  Click on the Today's Law As Amended tabs to see how the legislature has made this very confusing.

We are unsure if these bills have become placeholders for the next session or if amended language will fill these empty bills in the 11th hour before a final vote this session.  The Legislature has suspended the rules that require them to give notice to or take comment from the public - Joint Rule 62(a).  Providing any input at this point is almost impossible.

In years past when the legislature has done this, it has meant the death of that bill.  However, in years past the bills were not completely gutted prior to a full vote, nor did they have the Governor's attention while still on the floor.  We do not understand this strategy but we intent to ask many questions in the next few hours to find out.

While PAN supports equitable guidelines and regulations for medical cannabis operations, these bills  are egregious (favoring collectives with high-paid lobbyists) and expensive (lots of new fees and taxes), hence violating Prop. 215.  The Legislature is treating medical cannabis like adult social marijuana, effectively taking the Compassion out of the Compassionate Use Act and making it the Use Act For Cash.

PAN isn't going to stand for that.

California Senate Committee Hears AB 266 & AB 243

California Senate Room

Video - California Senate Hearing on AB 266

Video - California Senate Committee Hearing on AB 243

The California Senate Appropriations Committee heard two medical cannabis bills yesterday: AB 266 and AB 243.  Both have been moved to the suspense file meaning either or both will be voted on by the full Senate, or die in the file.

AB 266 is over-burdensome, pay-to-play regulation that supports coercive monopolies and bans.  Nowhere in the bill is a seat on the task force for a patient representative, only bureaucrats and lobbyists.  AB 266 is disguised to look like reasonable regulation but in reality dismantles Prop. 215. 

AB 266 - http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160AB266

AB 243 creates a new tax on medical cannabis cultivation and states,  “the bill would impose a tax in an unspecified amount on marijuana flowers, marijuana leaves, and immature marijuana plants.”  It is a new tax on medical cannabis growers that will be passed on to the patient.  We already know that unreasonable taxation on medical cannabis only pushes patients to the black or gray market.

AB 243 - http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160AB243

SB 643 will be heard in the Assembly Appropriations Committee but is not yet on the agenda.

SB 643 - http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160SB643

Unfortunately, Sacramento gets is wrong again.  Instead of protecting patients, the California legislature continues to support industry lobbyists, bans, restrictions, and more taxation.  It is anticipated that AB 266 will be gutted and merged with SB 643 and/or AB 243.  However, these are the bills to watch as the 2015 legislative session will close on September 11, 2015.

To let your Senator or Assemblymember know where you stand, find your representative here: http://findyourrep.legislature.ca.gov

Contact information for the full California Senate: http://senate.ca.gov/senators

Contact information for the full California Assembly: http://assembly.ca.gov/assemblymembers

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