The Medical Cannabis Regulation and Safety Act 2015 + What’s Happening in California Recreational Politics

On Friday, October 9, 2015, Governor Jerry Brown signed the California Medical Marijuana Regulation and Safety Act (MMRSA) into law.

The MMRSA becomes law on January 1, 2016. For the first time in California history, this new legislation creates a bureau of medical cannabis governance that brings with it a comprehensive state licensing system for the commercial cultivation, manufacture, retail sale, transport, distribution, delivery and testing of medical cannabis.

Although California will need several months (at least a year) to set up the necessary infrastructure for licensing and the application process will not likely begin before 2018, there are some important dates to keep in mind to prepare for the MMRSA when it takes full effect.

Important Dates to Remember

First, facilities in lawful operation before January 1, 2016, get “priority” in the licensing requests. Additionally, facilities operating in compliance with local ordinances and California law on or before January 1, 2018, who have already submitted an application, can continue to operate until their license is approved or denied.

Local Governments Still Make the Rules

Local governments may choose to adopt new ordinances to permit or license local businesses in preparation for the MMRSA state licensing or, unfortunately, may continue to ban cannabis businesses despite the MMRSA.

Medical cannabis businesses applying for a state license have to provide proof of local approval and evidence of legal right to occupy the location in which they intend to open business. Which means, for now, cities may continue to prosecute violations of local ordinances, such as Measure D in Los Angeles.

NO more collective or cooperative defense

It is important to note that integrated into the MMRSA is an SB-420 collective defense sunset. This means that the provision in SB-420 affording legal protection to patient collectives and cooperatives, HSC 11362.775, will no longer be available to prosecuted medical cannabis businesses one year after the new Bureau posts a notice on its website that licenses have commenced being issued. After that date, all medical cannabis businesses will have to be licensed, except for individual patient and caregiver gardens serving no more than five patients.

 Licensing Requirements

MMRSA creates a multitude of licenses to be issued (17 to be exact). Generally, licensees can have at most two separate kinds of licenses. For example, small cultivation licensees (types 1 -2) may hold manufacturing or retail licenses. However, Type 10A licensees (retail) can apply for both manufacturing and cultivation licenses, provided their total cultivation area doesn’t exceed four acres. Also, facilities in jurisdictions that require or permit cultivation, manufacture and distribution to be integrated as of July 1, 2015, may continue to operate that way until Jan 1, 2026.

For-Profit Entities

For profit entities are implicitly allowed. New licensing provisions extend to individuals, partnerships, corporations, business trusts, etc. (under the definition of “person” in AB-266, 19300.5 (aj)). This could also mean that applicants no longer need to be patients.

What’s Happening in California Recreational Politics

In the first week of October, the cannabis community buzzed about the prospect of the above bill being signed as well as Reform CA’s filing of a recreational initiative, The Control Regulate and Tax Cannabis Act of 2016. Amongst the community, this was supposed to be the initiative that provided a unified front. However, there seems to be a divide and there are still competing measures.

What’s happening? The Drug Policy Alliance, a big player, might go its own way if it is dissatisfied with the other initiatives, who reportedly want to have a “plan B option that’s ready to go in case . . . ” If Plan B is executed there would be three serious proposals for recreational cannabis competing for the 2016 ballot. In addition to the big money proposals, at least three grassroots campaigns to legalize cannabis also will be aiming for the ballot.

Bottom Line: All of these competing ballot measures could potentially dilute the voters and achieve nothing in 2016. Hopefully, by Election Day we will have followed in the footsteps of the MMRSA and come together to present ONE initiative for voters to pass and ensure, once and for all, a legal market in California.