HomeMy WebLinkAbout2019-04-09 - AGENDA REPORTS - STATE LEGISLATION: AB 1530 (2)Agenda Item: 4
DATE: April 9, 2019
SUBJECT: STATE LEGISLATION: ASSEMBLY BILL 1530
DEPARTMENT: City Manager's Office
PRESENTER: Masis Hagobian
RECOMMENDED ACTION
City Council adopt the City Council Legislative Committee recommendation to support
Assembly Bill 1530 (Cooley) and transmit position statements to Assembly Member Cooley,
Santa Clarita's state legislative delegation, appropriate legislative committees, Governor
Newsom, and the League of California Cities.
BACKGROUND
Authored by Assembly Member Ken Cooley (D -8 -Rancho Cordova), Assembly Bill 1530
authorizes a local agency the authority to regulate the delivery of cannabis or cannabis products
within its jurisdictional boundaries.
On April 10, 2018, the Santa Clarita City Council adopted an ordinance on local cannabis
regulations, in accordance with Proposition 64 (2016), including prohibiting the delivery of
cannabis within City of Santa Clarita (City) limits. The City ordinance was adopted after three
public meetings were conducted on the issue where members of the public and other
stakeholders, local business owners, the City's Planning Commission and the City Council were
given the opportunity to review and comment on the ordinance.
On January 16, 2019, the Bureau of Cannabis Control (BCC) implemented new regulations,
including preemption of local authority related to the delivery of cannabis. Specifically, the new
regulations adopted by the BCC restrict local regulations on cannabis deliveries and allow for
any licensed cannabis retailer to deliver cannabis anywhere in the state. As a result, a licensed
retailer in another jurisdiction could deliver cannabis to locations within Santa Clarita.
The City submitted two comment letters during the BCC public outreach period in August 2018
and October 2018, opposing the proposed regulations and expressing the importance of
preserving local authority over the delivery of cannabis, as written in Proposition 64 (2016).
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In an effort to challenge the recent delivery regulations adopted by the BCC, some local
municipalities have advised their attorneys to pursue legal action against the BCC. The League
of California Cities supports the efforts made by local municipalities in challenging the BCC
regulations and has directed its legal counsel to assist in advising the legal group challenging the
BCC.
Assembly Bill 1530 reinstates local authority over the regulation of the delivery of cannabis.
This bill returns the authority of cannabis deliveries, as California voters were assured in
Proposition 64 (2016), to local governments. Additionally, this bill would allow for local
governments to adopt an ordinance or resolution that permits, restricts, limits, or bans the
delivery of cannabis or cannabis products to a location within its jurisdictional boundaries.
The City of Santa Clarita 2019 Legislative Platform includes components related to preserving
local authority over the regulation of cannabis. Specifically, component 5 under the "State"
section of the Legislative Platform advises that the City Council, "Oppose legislation or
regulatory action that seeks to limit or eliminate municipal authority to regulate or ban
commercial growing, processing, licensing, sale or transport of cannabis or cannabis products for
recreational or medical use."
Assembly Bill 1530 was introduced on February 22, 2019, and referred to the Assembly
Committee on Business and Professions.
The City Council Legislative Committee met on March 26, 2019, and recommends that the City
Council adopt a "support" position on Assembly 1530.
ALTERNATIVE ACTION
Adopt a "neutral" position on Assembly Bill 1530
2. Adopt an "oppose" position on Assembly Bill 1530
3. Take no action on Assembly Bill 1530
4. Refer Assembly Bill 1530 back to the Legislative Committee
5. Other action, as determined by the City Council
FISCAL IMPACT
The resources required to implement the recommended action are contained within the City of
Santa Clarita's adopted Fiscal Year 2018-19 budget.
ATTACHMENTS
Assembly Bill 1530 Bill Text
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CALIFORNIA LEGISLATURE -2019-20 REGULAR SESSION
ASSEMBLY BILL No. 1530
Introduced by Assembly Member Cooley
February 22, 2019
An act to amend Section 26090 of the Business and Professions Code,
and to add Chapter 11.5 (commencing with Section 11620) to Division
10 of the Health and Safety Code, relating to cannabis.
LEGISLATIVE COUNSEL'S DIGEST
AB 1530, as introduced, Cooley. Unauthorized cannabis activity
reduction grants: local jurisdiction restrictions on cannabis delivery.
(1) Existing law, the Compassionate Use Act of 1996 (CUA),
provides that a patient or a patient's primary caregiver who possesses
or cultivates marijuana for personal medical purposes of the patient
upon the written or oral recommendation or approval of a physician is
not subject to conviction for offenses relating to possession and
cultivation of marijuana. The Control, Regulate and Tax Adult Use of
Marijuana Act (AVMA), an initiative statute approved as Proposition
64 at the November 8, 2016, statewide general election, authorizes a
person 21 years of age or older to engage in specified activities related
to the personal use of cannabis or cannabis products, subject to certain
restrictions, as specified. AUMA also authorizes a person who obtains
a state license under AUMA to engage in commercial adult -use cannabis
activity pursuant to that license and applicable local ordinances. The
Medicinal and Adult -Use Cannabis Regulation and Safety Act
(MAUCRSA), among other things, consolidates the licensure and
regulation of commercial medicinal and adult -use cannabis activities.
Existing law, the California Uniform Controlled Substances Act, makes
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the cultivation, manufacture, transportation, possession, and sale of
cannabis a crime, except as provided.
This bill would require the Board of State and Community Corrections
to create and administer a program of grants to be made on a competitive
basis to cities, counties, and joint powers authorities to establish or
expand an enforcement program against unauthorized cannabis activity,
as defined, and provide consumer education about the difference
between licensed or legal cannabis activity and unlicensed or illegal
cannabis activity. The bill would require the board to create an
evaluation design for unauthorized cannabis activity reduction grants
that assesses the effectiveness of the grant programs in reducing
cannabis -related crime and increasing public knowledge of cannabis
regulation and, commencing January 1, 2022, and annually thereafter
until January 1, 2025, to submit a report to the Legislature based on the
evaluation design. The bill would authorize the board to use up to 2.5%
of the money appropriated for this program for administration of the
grant program and the development of the evaluation component.
(2) MAUCRSA generally authorizes a local jurisdiction to adopt and
enforce local ordinances to regulate licensed businesses located within
the local jurisdiction. MAUCRSA prohibits a local jurisdiction from
preventing the delivery of cannabis or cannabis products on public roads
by a licensee who is acting in compliance with MAUCRSA as well as
any local law adopted pursuant to MAUCRSA.
This bill would authorize a local jurisdiction to adopt an ordinance
or resolution that permits, restricts, limits, or bans the delivery of
cannabis or cannabis products to a location within its jurisdictional
boundaries.
(3) AUMA authorizes the Legislature to amend its provisions with
a 2/ vote of both houses to further its purposes and intent.
This bill would make specified findings and declare that its provisions
further the purposes and intent of AVMA.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State -mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. Section 26090 of the Business and Professions
2 Code is amended to read:
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26090. (a) Deliveries, as defined in this division, may only be
made by a licensed retailer or microbusiness, or a licensed
nonprofit under Section 26070.5.
(b) All employees of a retailer, microbusiness, or nonprofit
delivering cannabis or cannabis products shall carry a copy of the
licensee's current license and a government -issued identification
with a photo of the employee, such as a driver's license. The
employee shall present that license and identification upon request
to state and local law enforcement, employees of regulatory
authorities, and other state and local agencies enforcing this
division.
(c) During delivery, the licensee shall maintain a copy of the
delivery request and shall make it available upon request of the
licensing authority and law enforcement officers. The delivery
request documentation shall comply with state and federal law
regarding the protection of confidential medical information.
(d) A customer requesting delivery shall maintain a physical or
electronic copy of the delivery request and shall make it available
upon request by the licensing authority and law enforcement
officers.
(e) A local jurisdiction shall not prevented transportation
of cannabis or cannabis products for delivery on public roads by
a licensee acting in compliance with this division and local law as
adopted under Section 26200.
()9 A local jurisdiction may adopt an ordinance or resolution
pursuant to Section 26200 that permits, restricts, limits, or bans
the delivery of cannabis or cannabis products to a location within
its jurisdictional boundaries.
SEC. 2. Chapter 11.5 (commencing with Section 11620) is
added to Division 10 of the Health and Safety Code, to read:
CHAPTER 11.5. UNAUTHORIZED CANNABIS ACTIVITY
REDUCTION GRANTS
11620. (a) The board shall create and administer a program
of grants to be made on a competitive basis.
(b) Grants may be used for either or both of the following
purposes:
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(1) To establish or expand an enforcement program against
unauthorized cannabis activity, including, but not limited to,
organized criminal activity. Grants may fund any of the following:
(A) Training.
(B) Equipment.
(C) Salaries for peace officers, code enforcement officers, city
attorneys, or county counsels.
(2) Consumer education about the difference between licensed
or legal cannabis activity and unlicensed or illegal cannabis
activity.
(c) For purposes of this chapter, the following definitions apply:
(1) "Applicant" means a city, city and county, county, or joint
powers authority that is applying for a grant pursuant to this
chapter.
(2) "Board" means the Board of State and Community
Corrections.
(3) "Commercial cannabis activity" has the same meaning as
in subdivision (k) of Section 26001 of the Business and Professions
Code.
(4) "Organized criminal activity" means crime that is of a
conspiratorial and organized nature and that seeks to supply illegal
goods or services.
(5) "Unauthorized cannabis activity" means commercial
cannabis activity by an entity that does not have a license issued
pursuant to Division 10 (commencing with Section 26000) of the
Business and Professions Code and cultivation, possession,
transportation, or use of cannabis by a person under 21 years of
age not authorized pursuant to the Compassionate Use Act of 1996
(Proposition 215), found at Section 11362.5, or in an amount or
manner not authorized by law.
(6) "Cultivation and retail cannabis activity" includes delivery
as defined in Section 26001 of the Business and Professions Code.
11621. (a) The board shall establish minimum requirements,
funding criteria, and procedures for awarding the grants, which
shall take into consideration all of the following:
(1) The probable or potential impact of the grant on reducing
unauthorized cannabis activity.
(2) Demonstrated ability of the applicant to administer the
program, including past experience in the administration of a prior
offender crime reduction program.
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1 (3) Demonstrated ability of the applicant to develop effective
2 action plans and to provide effective implementation of the
3 measures outlined in those plans.
4 (4) Demonstrated ability of the applicant to collaborate with
5 other agencies while maintaining effective coordination and
6 delivery of the strategies, programs, and services described in the
7 application.
8 (5) The likelihood that the program will continue to operate
9 after the grant funding ends, including the applicant's demonstrated
10 history of maximizing federal, state, local, and private funding
11 sources to address the needs of the grant service population.
12 (6) The number of licenses for commercial cannabis activity
13 made available within the applicant's jurisdiction.
14 (7) Other factors deemed necessary or relevant by the board.
15 (b) (1) The board shall design an application process for the
16 grant program.
17 (2) The application shall require the applicant to create a
18 three-year plan that identifies the programs, services, and strategies
19 to be provided by the grant, as specified in Section 11622.
20 (3) The board shall give priority or preference to applications
21 that include documented match funding that exceeds 25 percent
22 of the total grant amount.
23 (4) The board shall only accept an application from an applicant
24 that authorizes or licenses both cultivation and retail cannabis
25 activity.
26 (c) The board shall provide guidance to applicants on the
27 performance measures and reporting criteria to be addressed in
28 the application.
29 11622. (a) An applicant shall establish a strategy committee
30 to create a three-year plan for providing a cost-effective continuum
31 of education, prevention, and enforcement actions.
32 (b) The comprehensive three-year plan shall include all of the
33 following:
34 (1) Specific outcomes and performance measures for the grant
35 funds and a method for annually reporting those outcomes and
36 measures to the board that will allow the board to evaluate, at a
37 minimum, the effectiveness of the strategies supported by the grant
38 in reducing unauthorized cannabis activity.
39 (2) Strategies for prevention, education, intervention, and
40 prosecution that include at least one of the following:
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1 (A) Improved training or equipment to be used for the purpose
2 of combating unauthorized cannabis activity.
3 (B) Increases in employment or remuneration of peace officers,
4 code enforcement officers, and other personnel for enforcement
5 efforts.
6 (C) Increases in employment or remuneration for city attorneys
7 or county counsels for the purpose of lien enforcement or other
8 penalties for unauthorized cannabis activity.
9 (D) Efforts focused on improving consumer education on the
10 differences between licensed and legal cannabis activity and
11 unlicensed or illegal cannabis activity.
12 (3) A description of how the responses and services included
13 in the plan have been proven to be, or are designed to be, effective
14 in addressing unauthorized cannabis activity.
15 (c) The plan, as included in the grant application, shall include
16 the identification of specific outcome and performance measures
17 for annual reporting to the board that will allow the board to
18 evaluate, at a minimum, the effectiveness of the strategies
19 supported by the grant in reducing unauthorized cannabis activity.
20 (d) The board may assist applicants in meeting any grant
21 submission requirements by providing guidance through the grant
22 application process.
23 11623. (a) The board shall create an evaluation design for
24 unauthorized cannabis activity reduction grants that assesses the
25 effectiveness of the grant programs in reducing crime related to
26 unauthorized cannabis activity and increasing public knowledge
27 of cannabis regulation. The evaluation shall incorporate, but is not
28 limited to, all of the following:
29 (1) Number of executed search warrants for evidence of
30 unauthorized cannabis activity.
31 (2) Number of pending or completed investigations into
32 unauthorized cannabis activity.
33 (3) Number of homes or businesses inspected pursuant to laws
34 or regulations related to cannabis activity.
35 (4) Number of letters sent to homes or businesses informing
36 them of possible unauthorized cannabis activity.
37 (5) Number of cannabis plants seized or destroyed.
38 (6) Number of unlicensed cannabis operations shut down.
39 (7) Number of arrests for unauthorized cannabis activity.
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1 (8) Amount of cash and equipment seized or destroyed from
2 unauthorized cannabis activity.
3 (9) Amount of penalties assessed for unauthorized cannabis
4 activity.
5 (10) Number of property liens for unauthorized cannabis
6 activity.
7 (11) Amount spent on educating consumers about the differences
8 between legal and illegal cannabis activity.
9 (12) Amount spent on training for personnel to establish or
10 expand an enforcement program against unauthorized cannabis
11 activity or for consumer education about the difference between
12 licensed or legal cannabis activity and unlicensed or illegal
13 cannabis activity.
14 (13) Amount spent on salaries and other personnel expenses
15 related to unauthorized cannabis activity and increasing public
16 knowledge of cannabis regulation.
17 (b) (1) Commencing January 1, 2022, and annually thereafter,
18 the board shall submit a report to the Legislature based on the
19 evaluation design required pursuant to subdivision (a).
20 (2) The reports required by paragraph (1) shall be submitted in
21 compliance with Section 9795 of the Government Code.
22 (3) Pursuant to Section 10231.5 of the Government Code, this
23 subdivision shall become inoperative as of January 1, 2025.
24 11624. The board may use up to 2 % percent of the money
25 appropriated for this program for administration of the grant
26 program and the development of the evaluation component.
27 SEC. 3. The Legislature finds and declares that Section 1 of
28 this act amending Section 26090 of the Business and Professions
29 Code prevents illegal production or distribution of cannabis,
30 preserves scarce law enforcement resources to prevent and
31 prosecute violent crime, and allows local governments to ban
32 nonmedical marijuana businesses, and thus, furthers the purposes
33 and intent of the Control, Regulate and Tax Adult Use of Marijuana
34 Act of 2016.
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