MMRSA Vs. Parker Initiative

[dropcap class=”kp-dropcap”]T[/dropcap]hese past few months have been a pretty wild year for the cannabis plant here in California. In October 2015, Governor Jerry Brown signed into law the Medical Marijuana Regulation and Safety Act (MMRSA), which, for the first time, regulates California’s massive medical cannabis industry on a state level. Then, in November 2015, tech billionaire Sean Parker decided to financially back the so-called Adult Use of Marijuana Act—now known as the “Parker Initiative”—which is a proposed ballot measure to legalize recreational cannabis.

Now that the Parker Initiative is gaining heavy support, many are wondering what this means for the MMRSA, if it passes. Though the MMRSA and the Parker Initiative overlap in many respects, they also differ in others. Here is a comparative breakdown of the key provisions of each:

MMRSA
Regulatory structure: Establishes the Bureau of Medical Marijuana Regulation (BMMR) under the Department of Consumer Affairs to implement and enforce the MMRSA. Several other state agencies would be responsible for different aspects of regulation.

Allows “For Profit” Operation: Allows medical cannabis businesses to operate “for profit.” Repeals the existing Medical Marijuana Program Act, and the non-profit mandate with it.

Licensing System: Sets up 17 different kinds of medical cannabis operational license types.

Prioritizes Licensing for Certain Businesses: Gives priority to applicants that can demonstrate to the state’s “satisfaction” that it was “in operation and in good standing with [its] local jurisdiction by January 1, 2016.” Also permits “grandfathering”—i.e., applicants operating in compliance with local law may continue to operate until their license is approved or denied.

Limits Vertical integration: A licensee may only hold a state license in up to two separate license categories and only certain combinations of licenses are permitted. There are a few exceptions, however.

Local Government Power is Broad: Permits cities and counties to regulate medical cannabis businesses, and also allows them to ban medical cannabis businesses within their borders. Also gives local jurisdictions the power to tax and assess fees against medical cannabis businesses.

Testing and Labeling Required: Mandates testing of cannabis prior to delivery to collectives or other businesses. Also establishes labeling and packaging requirements for cannabis products.

Seed-to Sale-Tracking: Requires a “track and trace” management system, which tracks cannabis from cultivation to sale.

Carves Out an Exception for Los Angeles: Allows the City to continue to prosecute violations of Proposition D.

Parker Initiative
Regulatory structure: Establishes the Bureau of Marijuana Control (BMC) under the Department of Consumer Affairs to replace the BMMR. About a half-dozen state agencies would handle different aspects of regulation, exactly like the MMRSA.

Semi-Legalization: Legalizes possession of one ounce of cannabis and cultivation of six plants by adults 21 and over.

Licensing System: Sets up 21 different kinds of medical cannabis operational license types.

Prioritizes Licensing for Certain Businesses: Gives priority to existing, licensed applicants who can demonstrate to the state’s “satisfaction” that the applicant operated in compliance with existing state and local laws, similar to the MMRSA.

State Taxation: Imposes 15 percent taxes on retail sales of recreational cannabis in addition to state and local sales taxes. Imposes taxes on cultivation as well, at a rate of $9.25 for every ounce of dried buds and $2.75 an ounce for leaves.

Local Government Power is Slightly Less Broad: No local bans on personal indoor grows. Gives cities and counties wide latitude on allowing cannabis commerce and what types. But it takes a local majority vote to completely ban medical cannabis businesses.

Testing and Labeling Required: Imposes testing, labeling and packaging requirements like the MMRSA, but also limits edibles to 10mg THC per serving.

Seed-to Sale-Tracking: Requires a “track and trace” system like the MMRSA.

“Cannabis Cafés”: Allows localities to license places for on-site consumption.

Lessens Criminal Penalties for Past and Present Cannabis Crimes: Reduces certain cannabis crimes to infractions and misdemeanors. Allows people with past convictions for cannabis offenses that would no longer be considered illegal to petition to have their records cleared.