California: Legislative Package Seeking To Clarify, Regulate Medical Cannabis Sent to Governor

California lawmakers approved a series of bills in the final hours of the 2015 legislative session that seek to establish statewide rules and oversight governing the distribution of medicinal cannabis. The three bills — Assembly Bill 266, Senate Bill 643, and Assembly Bill 243 — now await final approval from Democrat Gov. Jerry Brown.

Much of the measures’ finalized language was amended and approved by lawmakers at the close of the session and was not subject to public testimony or significant floor debate.

Specifically, the legislative package creates a Bureau of Medical Marijuana Regulation within the Department of Consumer Affairs to develop rules and licensing procedures for authorized medical cannabis dispensaries. Dispensaries will be required to operate in accordance with local guidelines prior to receiving a state license. State-licensed dispensaries will be permitted to operate on a ‘for profit’ basis. However, the new regulations do not override municipal moratoriums that are already in place prohibiting such operations in various jurisdictions throughout the state, nor do they prohibit the collection of local sales taxes on marijuana purchases in communities that presently impose them.

Separate language in the bills seeks to regulate the licensed production of cannabis and imposes rules in regard to growing, testing, and labeling cannabis like other agricultural products. The bills also seek to provide additional oversight to physicians who recommend cannabis therapy. However, the measures do not limit physicians from recommending cannabis at their own discretion — activity which is codified under Proposition 215/the Compassionate Use Act.

Proposed language seeking to impose an excise tax on various cannabis products was not included in the final bill package.

If signed into law, the new regulations will take effect in 2017.

California voters initially approved Proposition 215 in 1996, which permits qualified patients to possess and/or grow marijuana for therapeutic purposes. However, the measure did not provide language explicitly providing for third-party providers outside of assigned caregivers, instead calling upon state lawmakers “to implement a plan of safe and affordable distribution of marijuana to all patients in medical need of marijuana.”

California NORML has additional information of the measures here.