The MMRSA, to give it a more pronounceable handle went live on New Year’s Day, 2016, albeit with a deadline typo that is causing confusion in a number of cities. What follows is a ‘layperson’s introduction’. I’ll provide a link to more detailed information down the page.

The Structure of the Act

The MMRSA consists of three separate bills enacted together in September 2015. Its goal is to create an all-inclusive legal framework for growing, harvesting, processing, and manufacturing medical cannabis. It further regulates how the product may be tested, sold, transported, distributed and delivered.

The State licensing apparatus could take upwards of a year before being fully in place. In the interim, individual cities may enact parallel local ordinances to facilitate the supply of medical marijuana in their jurisdictions. Medical marijuana providers in California should apply for resale permits from the state board of equalization as soon as possible, as this will a necessary condition for a state license.

The Main Components

Section AB 200 (proposed by Reps. Bonta, Cooley, Lackey, and Jones-Sawyer) establishes a Bureau of Medical Marijuana Regulation administered by the Department of Consumer Affairs. This has responsibility for maintaining an Internet database of licensees, and reporting movements of cannabis, and cannabis products throughout the state.

– Sections A B243 (Rep. Wood) and SB 643 (Rep. McGuire) task several state departments with responsibilities to regulate medical marijuana as follows

  1. Dept. Food and Agriculture: Cultivation
  2. Depts. Pesticides, Food Administration: Standards for pesticides
  3. Depts. Fish & Wildlife, Water Board: Protection of water quality
  4. Dept. Health: Manufacture, testing, production and labeling of edibles
  5. Dept. Food Administration: Organic certification

The legislation further provides for 17 different license types in narrow bands. There are 10 cultivation, 2 manufacturing, 1 testing, 2 dispensary, 1 distribution, and 1 transportation license types.

The Main Provisions of the Act

The Californian MMRSA Act comprises the following sections for which we provide a brief overview below.

  1. Cultivation Area: Limited to 1 acre outdoors, 22,000 sq. foot indoors
  2. Vertical Integration: The primary license chosen narrows other options
  3. Distribution Chain: Intermediaries must approve all products prior to sale
  4. Dual Licenses: All enterprises must have both state and local authorization
  5. Legality: Actions by such enterprises are protected from legal sanctions
  6. Grandfathering : Applicants may continue to operate and receive priority
  7. Applicants: Applications by disqualified people will be disallowed
  8. For Profit Operations: These appear to be permitted by implication
  9. Patients: Applicants no longer need to be patients to apply for licenses
  10. Track and Trace: Licensees who fail to comply may be fined, daily
  11. Patient Cultivation: The cultivation area for own use is 100 sq. feet
  12. Primary Caregivers: Cultivation area less than 500 sq. feet, <6 patients
  13. Deliveries: Only to qualified patients if permitted under the city ordinance
  14. Volatile Solvents: The Department of Health will limit the licenses allowed
  15. Cost of Testing: There is confusion in the act as to who shall pay for this
  16. School Zones: Radius is at least 600 feet (some grandfathers exempt)
  17. Transportation: Licensed transporters must submit digital cargo manifests
  18. Labor Peace Agreements: These are mandatory with 20 or more employees
  19. Packaging: To be tamper-proof, labelled, and with health warnings
  20. Privacy: Names of caregivers, and patients / their diagnosis are confidential
  21. Collective Defenses: These expire one year after the licensing commences
  22. Physicians: There are new provisions regarding professional conduct
  23. Source of Products: There is provision for a system of appellations of origin
  24. Fees and Funding: Authorities must base this on cost of enforcement.
  25. County Taxation: Counties may levy taxes after standard voter approval.

Conclusion

We finally have a comprehensive act to regulate medical marijuana in California. Entrepreneurs have legal opportunities, and authorities the teeth to nail them down if they try to cut corners. The future approach of federal police remains an enigma. They still have the legal authority to prosecute licensed operators. We’ll have to wait and see how they face up to medical marijuana in California in 2016.

For more information on California’s Medical Marijuana and Safety Act visit CANORML.