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In 1996, California passed Proposition 215, making it the first state to legalize medical marijuana. Proposition 215, also known as the Compassionate Use Act of 1996 (Health & Safety Code, section 11362.5), was approved by 55.6% of voters and decriminalized the cultivation and use of medical marijuana by seriously ill individuals who receive a state-licensed physician’s recommendation. Currently, a qualified patient or primary caregiver may possess no more than eight ounces of dried marijuana and maintain no more than six mature or 12 immature marijuana plants, unless they have a doctor’s recommendation that this quantity does not meet their medical needs. The amount of marijuana that patients may possess and/or cultivate is also regulated locally and varies by city and county.

The California Department of Public Health established the Medical Marijuana Identification Card Program, a voluntary program which issues medical marijuana cards. In 2004, California’s medical marijuana law was amended by Senate Bill 420, which added additional protections to the Compassionate Use Act. In 2015, the Medical Marijuana Regulation and Safety Act (which is comprised of three bills: AB 266, AB 243, and SB 643) was enacted to establish a licensing and regulatory framework for the cultivation, manufacture, transportation, storage, distribution, and sale of medical marijuana in California. The Medical Marijuana Regulation and Safety Act is expected to become fully implemented by January 1, 2018.

TABLE OF CONTENTS


CALIFORNIA MEDICAL MARIJUANA STATISTICS AND FACTS

  • California defines medical cannabis as an agricultural product. The identification as an agricultural crop does not extend to other areas of the law. For example, cannabis is not an agricultural crop with respect to local “right to farm” ordinances.
  • Under California law, people who are entitled to use medical marijuana may also possess concentrated cannabis (hashish) for personal use. They may also produce concentrated cannabis, but cannot use chemical solvents such as butane.
  • Currently, California law allows local governments to establish their own medical marijuana regulations.
  • California law allows local governments to pass ordinances imposing a tax on the cultivating, dispensing, producing, processing, preparing, storing, providing, donating, selling, or distributing of medical marijuana.
  • California jails don’t have to accommodate medical marijuana use, but cannot prohibit an inmate from applying for a Medical Marijuana Identification Card.
  • Fifty-six of California’s fifty-eight Counties participate in the Medical Marijuana Program (Colusa and Sutter County do not).
  • There were 2,798 Medical Marijuana Program Cards issued in the Fiscal Year 2015-2016 (of which 884 were to Medi-Cal recipients).


THE MEDICAL MARIJUANA IDENTIFICATION CARD PROGRAM

The California Department of Public Health’s Medical Marijuana Identification Card Program (MMICP) created a State-authorized Medical Marijuana ID Card and verification database to be used by law enforcement and the public. It verifies a patient or primary caregiver’s authorization to possess, grow, transport, and/or use medical marijuana within California. Participation by patients and primary caregivers in the identification card program is voluntary. The verification website is located at http://mmic.cdph.ca.gov.

HOW TO QUALIFY FOR A MEDICAL MARIJUANA CARD IN CALIFORNIA

  • You must be a have a valid California ID or a valid out-of-state ID or passport with proof of residency such as a lease agreement, utility bill, etc.
  • You must be 18 years of age or accompanied by a parent or guardian (unless you are lawfully emancipated, have declared self-sufficient minor status, or are a minor capable of medical consent)
  • You must obtain a medical marijuana recommendation from a state licensed physician stating that you have a serious medical condition and will benefit from the medicinal use of cannabis. Under the Medical Marijuana Program, a “serious medical condition” means all of the following:
    • Acquired immune deficiency syndrome (AIDS)
    • Anorexia
    • Arthritis
    • Cachexia
    • Cancer
    • Chronic pain
    • Glaucoma
    • Migraine
    • Persistent muscle spasms, including, but not limited to, spasms associated with multiple sclerosis
    • Seizures, including, but not limited to, seizures associated with epilepsy
    • Severe nausea
    • Any other chronic or persistent medical symptom that either:
      • Substantially limits the ability of the person to conduct one or more major life activities as defined in the Americans with Disabilities Act of 1990 (Public Law 101-336)
      • If not alleviated, may cause serious harm to the patient’s safety or physical or mental health

HOW TO APPLY FOR A MEDICAL MARIJUANA CARD IN CALIFORNIA

You will need to fill out an Application, which can be downloaded here. You must reside in the California county where the application is submitted. You will need to provide the following current documentation with your application:

  • A copy of your doctor’s recommendation
  • Proof of identity. This can be a valid California Department of Motor Vehicles (DMV) driver’s license or valid identification (ID) card or other valid government-issued photo ID card
  • Proof of residency, which can be a:
    • Rent or mortgage agreement
    • Utility bill
    • California DMV motor vehicle registration

You must apply in person at your County’s Program. There you will be asked to:

  • Pay the fee required by your County Program (Medi-Cal beneficiaries will receive a 50 percent reduction in the application fee)
  • Have your photo taken at the County Program’s office. This photo will appear on your Medical Marijuana ID Card

FEES FOR A MEDICAL MARIJUANA CARD IN CALIFORNIA

The state fee for a Medical Marijuana Identification Card application is currently $66 per card (or $33 for Medi-Cal patients). Individual counties also have fees that vary by county. Please contact your County Program to find out what the total cost for a Medical Marijuana Identification Card is in your county.

CONTACT THE MEDICAL MARIJUANA PROGRAM

California Department of Public Health
Public Health Policy and Research Branch
Attention: Medical Marijuana Program Unit
MS 5202
P.O. Box 997377
Sacramento, CA 95899-7377
Telephone: (916) 552-8600
Fax: (916) 440-5591
Email: [email protected]

MEDICAL MARIJUANA DISPENSARIES IN CALIFORNIA

California currently does not have a state-wide registry program for dispensaries, which are regulated at the city and county level. When the Medical Marijuana Regulation and Safety Act is fully implemented (expected to happen by January 01, 2018) the Department of Consumer Affairs’ Bureau of Medical Marijuana Regulations will be responsible for regulating dispensaries. Meanwhile, dispensary owners are expected to obtain a Seller’s Permit from the Board of Equalization and file Articles of Incorporation under the Corporations or Food and Agricultural Code. Also, depending on the local ordinances for the county or city the dispensary is located in, you may be required to obtain a business license and/or other permits.

CULTIVATION AND POSSESSION OF MEDICAL MARIJUANA IN CALIFORNIA

Under the Medical Marijuana Program, a qualified patient or primary caregiver may possess no more than eight ounces of dried marijuana and maintain no more than six mature or 12 immature marijuana plants. If a qualified patient or primary caregiver has a doctor’s recommendation that this quantity does not meet the qualified patient’s medical needs, the qualified patient or primary caregiver may possess an amount of marijuana consistent with the patient’s needs. Counties and cities may retain or enact medical marijuana guidelines allowing qualified patients or primary caregivers to exceed these state limits.

Once the Medical Marijuana Regulation and Safety Act is fully implemented (which is expected to happen by January 01, 2018) the California Department of Food and Agriculture will regulate Medical Marijuana Cultivation.

THE MEDICAL MARIJUANA REGULATION AND SAFETY ACT (MMRSA)

Governor Brown signed the Medical Marijuana Regulation and Safety Act into law on October 09, 2015, and it became effective on January 01, 2016. The Act, composed of 3 bills (AB 266, AB 243, and SB 643) established a licensing and regulatory framework for the cultivation, manufacture, transportation, storage, distribution, and sale of medical cannabis in the State of California.

The Medical Marijuana Regulation and Safety Act established the Medical Cannabis Cultivation Program within the California Department of Food and Agriculture to license cultivators, establish conditions under which indoor and outdoor cultivation may occur, establish a track and trace program for reporting the movement of medical cannabis items through the distribution chain, and assist other state agencies in protecting the environment and public health.

Examples of requirements under the MMRSA include submission of fingerprint images to the Department of Justice, evidence of the legal right to occupy and use the proposed location as a cultivation site, submission of a detailed description of business operating procedures, and obtaining and maintaining a valid seller’s permit.

REGULATORY AUTHORITIES ESTABLISHED BY THE MMRSA

The MMRSA tasks the following California Departments with establishing regulations for the medical cannabis industry:

  • Department of Food & Agriculture – Responsible for licensing cultivators and establishing a track and trace program through the Medical Cannabis Cultivation Program.
  • Department of Public Health – Responsible for licensing laboratories and manufacturers of products, such as edibles through the Office of Medical Cannabis Safety.
  • Department of Consumer Affairs – Responsible for licensing transporters, distributors, and dispensaries through the Bureau of Medical Marijuana Regulations.

It is anticipated that licenses will begin being issued under the Medical Marijuana Regulation and Safety Act on Jan. 1, 2018.

THE THREE BILLS THAT COMPRISE THE MMRSA (AB 266, AB 243, and SB 643)

Assembly Bill 266

  • Enacts the Medical Marijuana Regulation and Safety Act for the licensure and regulation of medical marijuana and 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 specified violations of the act, and would require moneys collected as a result of these fines and civil penalties to be deposited into the Medical Cannabis Fines and Penalties Account.
  • 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.
  • Makes legislative findings to align with existing constitutional provisions that 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.

Read The Full Text of AB 266

Assembly Bill 243

  • Appropriates funds to implement the Medical Marijuana Regulation and Safety Act.
  • 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, as specified.
  • Requires various State agencies to take specified actions to mitigate the impact that marijuana cultivation has on the environment, and requires cities, counties, and their local law enforcement agencies to coordinate with State agencies to enforce laws addressing the environmental impacts of medical marijuana cultivation.
  • Requires a state licensing authority to charge each licensee under the Act licensure and renewal fees, as applicable, and deposit them into an account specific to that licensing authority in the Medical Marijuana and Safety Act Fund, which this bill creates. The bill also imposes certain fines and civil penalties for specified violations of the Medical Marijuana Regulation and Safety Act, and requires resulting moneys be deposited into the Medical Cannabis Fines and Penalties Account, also established by this bill within the fund.

Read The Full Text of AB 243

Senate Bill 643

  • Sets forth standards for physicians and surgeons prescribing medical cannabis and requires the Medical Board of California to prioritize its investigative and prosecutorial resources to identify those who have repeatedly recommended excessive cannabis to patients for medical purposes or done so repeatedly without a good faith examination.
  • Requires applicants to furnish a full set of fingerprints in order to conduct criminal history record checks.
  • Requires, through the Medical Marijuana Regulation and Safety Act, that the Department of Food and Agriculture administer the provisions of the act related to and associated with the cultivation and transportation of medical cannabis. The Department of Food and Agriculture, in consultation with the Bureau, shall establish a track and trace program for reporting the movement of medical marijuana items throughout the distribution chain that utilizes a unique identifier. It also establishes State cultivator license types.
  • Requires the California Department of Public Health to oversee manufacturing and testing of medical cannabis.
  • Requires the Governor to appoint a chief, subject to Senate confirmation, of the Bureau of Medical Marijuana Regulation, and requires the Department of Consumer Affairs to have the sole authority to create, issue, renew, discipline, suspend, or revoke licenses for the transportation and storage (unrelated to manufacturing) of medical marijuana, and would authorize the department to collect fees for its regulatory activities and impose related specified duties.
  • Authorizes counties to impose a tax on specified cannabis-related activity.

Read The Full Text of SB 643

PROPOSITION 215

Proposition 215, also known as the Compassionate Use Act of 1996, was approved by 55.6% of voters and decriminalized the cultivation and use of medical marijuana by seriously ill individuals who have a doctor’s recommendation. It was the first ballot initiative in the United States to decriminalize medical marijuana.

Read The Full Text of Prop 215

SENATE BILL 420

On January 1, 2004, the California legislature enacted SB 420 to clarify Proposition 215. It states that a patient’s medical records must contain written documentation by the attending physician that the patient has been diagnosed with a serious medical condition and that the medicinal use of cannabis is appropriate. A “serious medical condition is defined to include: AIDS, anorexia, arthritis, cachexia, cancer, chronic pain, glaucoma, migraine, persistent muscle spasms (multiple sclerosis), seizures, severe nausea, and any other chronic or persistent medical symptom that either substantially limits the ability of the person to conduct one or more major life activities or if not alleviated, may cause serious harm to the patient’s safety or physical or mental health.”

Read The Full Text of SB 420

CALIFORNIA RECREATIONAL MARIJUANA LAWS

Currently, California law does not allow for recreational marijuana use. This may change if the Adult Use of Marijuana Act (AUMA) is approved by voters in the November 2016 General Election (see info about the AUMA below). The following penalties and fines are for the non-medical use of marijuana in California. Refer to CALIFORNIA MEDICAL MARIJUANA LAWS for information about medical marijuana laws in California.

PENALTIES AND FINES

Offense

Penalty

Incarceration

Max. Fine

Possession
Personal Use
28.5 grams or less infraction N/A

$ 100

28.5 grams or less, over 18 years, and occurred on school grounds misdemeanor 10 days

$ 500

28.5 grams or less, under 18 years misdemeanor 10 days*

$ 250

More than 28.5 grams misdemeanor 6 mos

$ 500

With Intent to Distribute
Any amount felony 16 mos – 3 years

$ 0

*Detention center for 2nd offense
Sale or Delivery
Sale or import of Any amount felony 2 – 4 years

$ 0

Gift of 28.5 grams or more felony 2 – 4 years

$ 0

Gift of 28.5 grams or less misdemeanor N/A

$ 100

Over 18 to a minor 14-17 years old felony 3 – 5 years

$ 0

Over 18 to a minor under 14 years old felony 3 – 7 years

$ 0

Cultivation
Any amount felony 16 mos – 3 years

$ 0

Hash & Concentrates
Possession misdemeanor 1 year

$ 500

Possession with intent to sell Felony 16 mos – 3 years

$ 20,000

Unauthorized manufacture Felony 16 mos – 3 years

$ 500

Chemical manufacture Felony 3 – 7 years

$ 50,000

Paraphernalia
Sale, delivery, possession with intent, and manufacture with intent to sell misdemeanor 6 mos

$ 1000

Forfeiture
Vehicles and other property may be seized for controlled substance violations.
Miscellaneous
Using a minor in the unlawful sale or transport of marijuana is a felony punishable by 3-7 years imprisonment. Inducing a minor to use marijuana is also a felony punishable by 3-7 years imprisonment.
Any violation of the California Uniform Controlled Substances Act results in a fine up to $150.
A person who participates in the illegal marketing of marijuana is liable for civil damages.
It is a misdemeanor to loiter in a public place with the intent to commit certain controlled substances offenses.
A controlled substance conviction can result in suspension of driving privileges.

THE ADULT USE OF MARIJUANA ACT (AUMA) ON THE NOVEMBER 08, 2016 BALLOT

On November 08, 2016, California will be voting on the Control, Regulate and Tax Adult Use of Marijuana Act, also known as “The Adult Use of Marijuana Act” or AUMA. If passed, the Adult Use of Marijuana Act would:

  • Legalize marijuana and hemp under state law
  • Designates state agencies to license and regulate the marijuana industry
  • Impose a state excise tax on retail sales of marijuana equal to 15% of the sales price
  • Impose state cultivation taxes on marijuana of $9.25 per ounce of flowers and $2.75 per ounce of leaves
  • Exempt medical marijuana from some taxation
  • Establish packaging, labeling, advertising, and marketing standards and restrictions for marijuana products
  • Allow the local regulation and taxation of marijuana
  • Prohibit the marketing and advertising of marijuana to minors
  • Authorize resentencing and destruction of records for prior marijuana convictions

SUMMARY OF THE AUMA BY THE LEGISLATIVE ANALYSYST’S OFFICE (LAO)

State Legalization of Marijuana-Related Activities. Under the measure, individuals age 21 or over could legally possess, use, sell, transport, process, and cultivate marijuana under state law. However, certain marijuana-related activities would remain illegal. For example, it would remain unlawful for individuals to operate a motor vehicle while under the impairment of marijuana or provide marijuana to individuals under the age of 21.

Regulation of Commercial Marijuana Activities. This measure changes the name of the Bureau of Medical Marijuana Regulation to the Bureau of Marijuana Control and grants it additional regulatory authority. Specifically, under the measure, the bureau, as well as other state agencies (such as DPH and DFA), would have the authority to regulate the commercial cultivation, processing, distribution, and sales of marijuana for recreational purposes. This would be in addition to their existing authority to regulate medical marijuana. The division of regulatory responsibilities among these state agencies would be similar to that under the recent legislation related to medical marijuana. Individuals or organizations engaging in commercial cultivation, testing, processing, distribution, or sales of marijuana would be required to obtain a license from the appropriate state agency.

Taxation of Commercial Marijuana Sales. The measure states that existing state and local sales taxes are to be applied to the sale of recreational marijuana products. In addition, the measure places an excise tax of 15 percent on the retail sale of marijuana products. The measure also places an excise tax on the cultivation of marijuana of $9.25 per ounce of dried marijuana flowers and $2.75 per ounce of dried marijuana leaves. However, the measure authorizes the state Board of Equalization to annually adjust the tax rate for leaves to reflect fluctuations in the relative price of marijuana flowers to marijuana leaves. The measure also allows the board to establish other categories of marijuana (such as frozen marijuana) for tax purposes and specifies that these categories would be taxed at their value relative to marijuana flowers. Beginning in 2020, the cultivation tax would be adjusted annually for inflation. The measure exempts from the sales and use tax marijuana sold for medical purposes provided the consumer possesses a valid government issued identification card certifying that they are using marijuana pursuant to a physician’s recommendation.

Revenues collected from any marijuana excise tax, as well as certain fines imposed on businesses or individuals who violate regulations established under the measure, would be deposited in a new special fund, the California Marijuana Tax Fund. Monies deposited in the fund would first be used to reimburse certain state agencies, such as the bureau, for any costs of regulating the commercial marijuana industry not covered by license fees. After reimbursing state agencies for implementation costs, the measure would allocate a portion of the remaining revenues for the following purposes (in order of priority):

  • $10 million annually from 2018-19 through 2028-29 to public universities in California to research and evaluate the implementation of the measure.
  • $3 million annually from 2018-19 through 2022-23 to the California Highway Patrol (CHP) to establish and adopt protocols to determine whether a driver is operating a vehicle while impaired, including by marijuana.
  • $10 million in 2018-19, increasing by $10 million annually until 2022-23, and $50 million each year thereafter, to the Governor’s Office of Business and Economic Development for a grant program to provide services (such as mental health and substance use treatment) in communities disproportionately affected by past federal and state drug policies.
  • $2 million annually to the University of California San Diego Center for Medicinal Cannabis Research to study the efficacy and adverse effects of the use of marijuana for medicinal purposes.

Any funds remaining after the above allocations would be annually allocated as follows: (1) 60 percent to the state Department of Health Care Services for substance use disorder education and prevention programs for youth; (2) 20 percent to the state Department of Fish and Wildlife (DFW) and the state Department of Parks and Recreation (DPR) for environmental programs designed to clean up and prevent environmental damage resulting from the illegal cultivation of marijuana; and (3) 20 percent to CHP for programs designed to reduce driving under the influence of alcohol, marijuana, and other drugs and to the Board of State and Community Corrections for a grant program designed to mitigate any potential negative impacts on public health or safety resulting from the implementation of the measure. Under the measure, beginning July 2028, the Legislature could change the above allocations to further the purpose of the measure, subject to certain limitations (such as a requirement that any changes further the purpose of the measure).

The measure also requires that funding provided to DFW and DPR from the Marijuana Tax Fund not be used to replace other funds currently used by the departments for the purposes described above. As such, the measure requires that General Fund appropriations to DFW and DPR not be reduced below the levels provided in the 2014-15 Budget Act.

Local Regulation of Marijuana Businesses. Under the measure, cities and counties would continue to have the authority to regulate commercial marijuana businesses in their jurisdiction. For example, cities and counties could require marijuana businesses to obtain local licenses. In addition, cities and counties could set rules for such businesses (such as those related to hours of operation and minimum security levels) and establish restrictions on where they could be located. Cities and counties could also completely ban marijuana-related businesses in their jurisdiction. However, cities and counties could not ban (1) the transportation of marijuana through their jurisdictions or (2) the delivery of marijuana to individuals in their jurisdictions.

Marijuana Cultivation and Possession for Personal Use. Under the measure, individuals over the age of 21 could lawfully (1) possess, process, transport, or give away to individuals over the age of 21, up to 28.5 grams of marijuana and up to eight grams of concentrated cannabis and (2) cultivate up to six living marijuana plants and possess the marijuana produced by the plants within a private residence. Cultivation of marijuana for personal use would only be allowed in a locked area on private property that is not visible from a public place. Under the measure, cities and counties could place “reasonable” restrictions on the cultivation of marijuana for personal use (such as by prohibiting outdoor cultivation) but could not prohibit cultivation within a fully enclosed and secure private residence.

Authorization of Civil and Criminal Penalties. The measure changes existing state penalties related to the use, possession, transportation, cultivation, and sale of marijuana. For example, under current law possession of one ounce or less of marijuana by an individual under the age of 18 is an infraction punishable by a $100 fine. Under the measure, such a crime would remain an infraction but would instead be punishable by a requirement to attend a drug education or counseling program and complete community service. In addition, it is currently a felony to sell any amount of marijuana for recreational purposes. Under the measure, it would be a crime punishable as an infraction, misdemeanor, or felony, depending on certain factors (such as the prior criminal history of the offender), for individuals over the age of 18 to sell marijuana without a valid license. In addition, individuals engaging in any commercial marijuana activity without a license would be subject to a civil penalty of up to three times the amount of the license fee for each violation.

Individuals Previously Convicted of Marijuana Crimes. Under the measure, individuals currently serving a sentence for marijuana-related crimes that would not have been crimes or would have been subject to lesser penalties had the measure been in place when they were committed would be eligible for resentencing. For example, an offender serving a misdemeanor or a felony sentence for possessing, cultivating, or selling marijuana would be eligible to be resentenced. However, a court would not be required to resentence an offender if it determined that the offender was likely to commit certain specified severe crimes. Qualifying individuals would be resentenced to whatever punishment they would have received under the measure. Under the measure, resentenced offenders currently in jail or prison would be subject to community supervision for up to one year following their release. However, the measure allows courts to waive the community supervision requirement. In addition, individuals who have already completed their sentences for such crimes could apply to the courts to have their convictions reclassified. The measure also requires the destruction of arrest and conviction records for individuals previously arrested or convicted for certain marijuana-related offenses.

Summary of Fiscal Effects. It is estimated that this measure would have the following major fiscal effects, which could vary considerably depending on (1) how, and to what extent, state and local governments choose to regulate and tax the commercial production and sale of marijuana, (2) future consumption by marijuana users, and (3) the extent to which the U.S. Department of Justice exercises its discretion to enforce federal prohibitions on marijuana activities otherwise permitted by this measure.

  • Net reduced costs ranging from tens of millions of dollars to potentially exceeding $100 million annually to state and local governments related to enforcing certain marijuana-related offenses, handling the related criminal cases in the court system, and incarcerating and supervising certain marijuana offenders.
  • Net additional state and local tax revenues potentially ranging from the high hundreds of millions of dollars to over $1 billion annually related to the production and sale of marijuana. Most of these funds would be required to be spent for specific purposes such as substance use disorder education, prevention, and treatment.

Read the full text of The Adult Use of Marijuana Act that will be on the November 2016 California ballot.

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