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  • County of Santa Cruz vs Bureau of Cannabis Control39 Unlimited - Other Judicial Review document preview
  • County of Santa Cruz vs Bureau of Cannabis Control39 Unlimited - Other Judicial Review document preview
  • County of Santa Cruz vs Bureau of Cannabis Control39 Unlimited - Other Judicial Review document preview
  • County of Santa Cruz vs Bureau of Cannabis Control39 Unlimited - Other Judicial Review document preview
  • County of Santa Cruz vs Bureau of Cannabis Control39 Unlimited - Other Judicial Review document preview
  • County of Santa Cruz vs Bureau of Cannabis Control39 Unlimited - Other Judicial Review document preview
  • County of Santa Cruz vs Bureau of Cannabis Control39 Unlimited - Other Judicial Review document preview
  • County of Santa Cruz vs Bureau of Cannabis Control39 Unlimited - Other Judicial Review document preview
						
                                

Preview

Steven G. Churchwell (SBN 110346) Filing Fee Exempt Douglas L. White (SBN 206705) (Gov. Code § 6103) Nubia I. Goldstein (SBN 272305) J. Scott Miller (SBN 256476) E-FILED 5/13/2020 10:54 AM CHURCHWELL WHITE LLP Superior Court of California 1414 K Street, 3rd Floor County of Fresno Sacramento, CA 95814 By: Louana Peterson, Deputy (916) 468-0950 Phone (916) 468-0951 Fax steve@churchwellwhite.com Todd Noonan (SBN 172962) NOONAN LAW GROUP 980 9th Street, 16th Floor Sacramento, California 95814 (916) 449-9541 Phone Todd@noonanlawgroup.com 10 11 Attorneys for Plaintiffs COUNTY OF SANTA CRUZ, et al 12 SUPERIOR COURT OF THE STATE OF CALIFORNIA 13 COUNTY OF FRESNO 14 15 COUNTY OF SANTA CRUZ; CITY OF Case No.: 19CECG01224 AGOURA HILLS; CITY OF ANGELS CAMP; 16 CITY OF ARCADIA; CITY OF ATWATER; CITY OF BEVERLY HILLS; CITY OF CERES; 17 CITY OF CLOVIS; CITY OF COVINA; CITY REQUEST FOR JUDICIAL NOTICE, OF DIXON; CITY OF DOWNEY; CITY OF EXHIBITS VOLUME 8 (EXHIBITS 51-55) 18 MCFARLAND; CITY OF NEWMAN; CITY OF OAKDALE; CITY OF PALMDALE; CITY OF 19 PATTERSON; CITY OF RIVERBANK; CITY OF RIVERSIDE; CITY OF SAN PABLO; CITY Complaint filed: April 4, 2019 20 OF SONORA; CITY OF TEHACHAPI; CITY Trial Date: July 16, 2020 OF TEMECULA; CITY OF TRACY; CITY OF 21 TURLOCK; and CITY OF VACAVILLE, Assigned for all purposes to Judge Rosemary McGuire, Department 403. 22 Plaintiffs, 23 Vv. 24 BUREAU OF CANNABIS CONTROL; LORI AJAX, in her official capacity as Chief of the 25 Bureau of Cannabis Control; and DOES 1 through 10, inclusive, 26 Defendants. 27 28 1 Churchwell White Request for Judicial Notice 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 EXHIBIT 51 26 27 28 h vel White EXHIBIT cS EDMUND G. BROWN, J R., GOVERNOR OFFICE OF ADMINISTRATIVE LAW California Regulatory Notice Register REGISTER 2018, NO. 28-Z PUBLISHED WEEKLY BY THE OFFICE OF ADMINISTRATIVE LAW JULY 13, 2018 PROPOSED ACTION ON REGULATIONS TITLE 2. FAIR POLITICAL PRACTICES COMMISSION Conflict-of-Interest Code — Notice File No. Z2018-0703-06 1045 Adoption Multi-County: California Automated Consortium Eligibility System Amendment State A gency: Department of Rehabilitation Multi-County: Golden Gate Bridge, Highway and Transportation District Turlock Unified School District Sacramento Municipal Utility District TITLE 2. FAIR POLITICAL PRACTICES COMMISSION Parent Subsidiary — Notice File No. Z2018-0703-07 1046 TITLE 2. STATE TREASURER’S OFFICE Conflict-of-Interest Code — Notice File No. Z2018-0627-01 1047 TITLE 3. DEPARTMENT OF FOOD AND AGRICULTURE Cannabis Cultivation Licensing — Notice File No. Z2018-0703-01 1048 TITLE 16. BUREAU OF CANNABIS CONTROL Medicinal and Adult-Use Cannabis Regulation — Notice File No. Z2018-0703-04 1057 TITLE 17. DEPARTMENT OF PUBLIC HEALTH Cannabis Manufacturing Licensing — Notice File No. Z2018-0703-12 1071 TITLE 17. DEPARTMENT OF PUBLIC HEALTH Requirements for Use of X-Ray Mammography — Notice File No. Z2018-0703-03 1078 TITLE 18. OFFICE OF TAX APPEALS Adopt, Amend, and Repeal Regulations — Notice File No. Z2018-0703-05 1082 (Continued on next page) Time- Dated Material TITLE 22. OFFICE OF STATEWIDE HEALTH PLANNING AND DEVELOPMENT Prescription Drug Pricing for Purchasers and Program — Notice File No. Z2018-0703-02 1104 TITLE 24. BUILDING STANDARDS COMMISSION Emergency Regulations for the 2016 California Building Code and 2016 California Residential Code — Notice File No. Z2018-0703-08 1107 GENERAL PUBLIC INTEREST DEPARTMENT OF FISH AND WILDLIFE California Endangered Species Act (CESA) Consistency Determination Request for Ash Hill Broadband Communication Tower Project 2080-2018-006-06 San Bernardino County 1111 DEPARTMENT OF FISH AND WILDLIFE California Endangered Species Act (CESA) Consistency Determination No. 2080-2018-005-03 — Critical Repairs Conducted under Phase III of the 2017 Storm Damage Department of Water Resources Emergency Rehabilitation (SD DER) Project 1112 RULEMAKING PETITION DECISION BOARD OF ACCOUNTANCY Notice of Decision on Petition from JoAnn Henkel Concerning California Board of Accountancy (CBA) regulations and the Accountancy Act 1115 SUMMARY OF REGULATORY ACTIONS Regulations filed with the Secretary of State 1121 Sections Filed, January 31, 2018 to July 4, 2018 1123 The California Regulatory Notice Register is an official state publication of the Office of Administrative Law containing notices of proposed regulatory actions by state regulatory agencies to adopt, amend or repeal regulations contained in the California Code of Regulations. The effective period of a notice of proposed regulatory action by a state agency in the California Regulatory Notice Register shall not exceed one year [Government Code § 11346.4(b)]. Itis suggested, therefore, that issues of the California Regulatory Notice Register be retained for a minimum of 18 months. CALIFORNIA REGULATORY NOTICE REGISTER is published weekly by the Office of Administrative Law, 300 Capitol Mall, Suite 1250, Sacramento, CA 95814-4339. The Register is printed by Barclays, a subsidiary of West, a Thomson Reuters Business, and is offered by subscription for $205.00 (annual price). To order or make changes to current subscriptions, please call (800) 328-4880. The Register can also be accessed at http://www.oal.ca.gov. CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 28-Z The Executive Director of the Commission will re- PROPOSED ACTION ON view the above-referenced conflict—of—interest code(s), proposed pursuant to Government Code Sec- REGULATIONS tion 87300, which designate, pursuant to Government Code Section 87302, employees who must disclose cer- tain investments, interests in real property and income. Information contained in this document is The Executive Director of the Commission, upon her published as received from agencies and is or its own motion or at the request of any interested per- son, will approve, or revise and approve, or return the not edited by Thomson Reuters. proposed code(s) to the agency for revision and re— submission within 60 days without further notice. Any interested person may present statements, argu- TITLE 2. FAIR POLITICAL ments or comments, in writing to the Executive Direc- PRACTICES COMMISSION tor of the Commission, relative to review of the pro- NOTICE IS HEREBY GIVEN that the Fair Political posed conflict-of—interest code(s). Any written com- Practices Commission, pursuant to the authority vested ments must be received no later than August 27, 2018. If in it by Sections 82011, 87303, and 87304 of the Gov- a public hearing is to be held, oral comments may be emment Code to review proposed conflict—of—interest presented to the Commission at the hearing. codes, will review the proposed/amended conflict-of— interest codes of the following: COST TO LOCAL AGENCIES There shall be no reimbursement for any new or in- CONFLICT-OF-INTEREST CODES creased costs to local government which may result from compliance with these codes because these are not ADOPTION new programs mandated on local agencies by the codes since the requirements described herein were mandated MULTI-COUNTY: California Automated by the Political Reform Act of 1974. Therefore, they are Consortium Eligibility not “costs mandated by the state” as defined in Govem- System ment Code Section 17514. AMENDMENT EFFECT ON HOUSING COSTS AND BUSINESSES STATE AGENCY: Department of Rehabilitation Compliance with the codes has no potential effect on MULTI-COUNTY: Golden Gate Bridge, Highway housing costs or on private persons, businesses or small and Transportation District businesses. Turlock Unified School District Sacramento Municipal Utility District AUTHORITY A written comment period has been established com- Government Code Sections 82011, 87303 and 87304 mencing on July 13, 2018, and closing on August 27, provide that the Fair Political Practices Commission as 2018. Written comments should be directed to the Fair the code reviewing body for the above conflict-of— Political Practices Commission, A ttention Sasha Link- interest codes shall approve codes as submitted, revise er, 1102 Q Street, Suite 3000, Sacramento, California the proposed code and approve it as revised, or retum 95811. the proposed code for revision and re-submission. At the end of the 45-day comment period, the pro- posed conflict-of—interest code(s) will be submitted to the Commission’s Executive Director for her review, REFERENCE unless any interested person or his or her duly autho- rized representative requests, no later than 15 days prior Government Code Sections 87300 and 87306 pro- to the close of the written comment period, a public vide that agencies shall adopt and promulgate conflict— hearing before the full Commission. If a public hearing of—interest codes pursuant to the Political Reform Act is requested, the proposed code(s) will be submitted to and amend their codes when change is necessitated by the Commission for review. changed circumstances. 1045 CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 28-Z CONTACT tion 87103(a)); a source of income of $500 or more in the 12 months prior to a decision (Section 87103(c)); Any inquiries conceming the proposed conflict-of— and a business entity in which the official is a director, interest code(s) should be made to Sasha Linker, Fair officer, partner, trustee, employee, or holds any position Political Practices Commission, 1102 Q Street, Suite in management (Section 87103(d)). 3000, Sacramento, California 95811, telephone (916) Historically, the Commission has determined that an 322-5660. official with an interest in a business entity also has an interest in a parent, subsidiary, or related business enti- AVAILABILITY OF PROPOSED ty. This is based on the fact that under Sections 82034 CONFLICT-OF-INTEREST CODES and 87209 an “investment” is any financial interest or security interest of more than $2,000 in a business enti- Copies of the proposed conflict-of—interest codes ty, and a “business position” is any business entity in may be obtained from the Commission offices or the re- which the official is director, officer, partner, trustee, spective agency. Requests for copies from the Commis- employee, or manager, if the business entity, or any sub- sion should be made to Sasha Linker, Fair Political sidiary, or otherwise related business entity does busi- Practices Commission, 1102 Q Street, Suite 3000, ness in the jurisdiction. Former Regulation 18703.1(c) Sacramento, California 95811, telephone (916) expressly stated that “[a]n official has an economic in- 322-5660. terest in a business entity which is a parent or subsidiary of, or is otherwise related to, a business entity in which the official has one of the interests defined in [Section] TITLE 2. FAIR POLITICAL 87103(a) or (d).” However, this language was removed PRACTICES COMMISSION from Commission regulations in 2014. NOTICE IS HEREBY GIVEN that the Fair Political Current Regulation 18700.2, however, still defines Practices Commission (the “Commission”, under the parent, subsidiary, and otherwise related business enti- authority vested in it under the Political Reform Act ties for purposes of Section 82034 and 87209 of the Act. (the “Act”)! by Section 83112 of the Govemment Code, Moreover, in defining various interests under the Act, proposes to adopt, amend, or repeal regulations in Title Regulation 18700 still directs officials with an interest 2, Division 6 of the California Code of Regulations. The in a business entity to refer to the definition of parent Commission will consider the proposed regulation at a subsidiary, and otherwise related business entity in public hearing on or after August 16, 2018, at the of- Regulation 18700.2. (Regulation 18700(c)(6)(A), (C) fices of the Fair Political Practices Commission, 1102 Q and (D).) Accordingly, staff has continued to advise that Street, Suite 3000, Sacramento, Califomia, commenc- an interest in a business entity may include an interest in ing at approximately 10:00 a.m. Written comments a parent, subsidiary, or otherwise related business entity must be received at the Commission offices no later depending on the factual circumstances. (See Chmura than 5:00 p.m. on August 14, 2018. Advice Letter, No. 1-17-051, and Pelletier A dvice Let- ter, No. 1-17-144.) BACKGROUND/OVERVIEW REGULATORY ACTION The Act's conflict—of—interest provisions prohibit an official from making, participating in making, or using Amend 2 Cal. Code Regs. Section 18700.2 — Parent his or her official position to influence a decision in Subsidiary, Otherwise Related Business Entity: which the official has a financial interest. (Section Defined. 87100.) An official has a financial interest in the deci- In examining the scope of the parent, subsidiary, or sion, if it is reasonably foreseeable the decision will otherwise related business rule, the question of when an have a material financial effect on the official or on official should know if a parent-subsidiary relationship specified interest, including a business entity, in which exists for purposes of disqualification has emerged. In the official has an investment of $2,000 or more (Sec- response, staff has drafted proposed amendments to Regulation 18700.2. Specifically, proposed subdivi- sion (d) would establish an exception to the general rule ! The Political Reform Actis contained in Goverment Code Sec- that an official with an interest in a business entity also tions 81000 through 91014. All statutory references are to the has an interest in a parent, subsidiary, or otherwise relat- Government Code, unless otherwise indicated. The regulations of the Fair Political Practices Commission are contained in Sections ed business entity. 18110 through 18997 of Title 2 of the California Code of Regula- The exception provides that an official does not have tions. All regulatory references are to Title 2, Division 6 of the an interest in a parent, subsidiary, or otherwise related California Code of Regulations, unless otherwise indicated. business if all the following conditions are met: the offi- 1046 CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 28-Z cial owns less than 5 percent of the shares of a corpora- REFERENCE tion and is a passive shareholder, the parent corporation is required to file annual Form 10-K or 20-F Reports The purpose of these regulations is to implement, in- with the Securities and Exchange Commission and the terpret, and make specific Government Code Sections parent corporation has not identified the subsidiary or 82034, 87100, 87103, and 87209. related business on those forms or its annual report. Just as significantly, proposed subdivision (c) is CONTACT added to the regulation to clearly state that an official with a financial interest in a business entity also has an Any inquiries should be made to Sukhi K. Brar, Fair interest in a parent, subsidiary, or otherwise related Political Practices Commission, 1102 Q St., Suite 3000, business entity except as provided in the above— Sacramento, CA 95811; telephone (916) 322-5660 or mentioned exception found in subdivision (d). 1-866-A SK -FPPC. Proposed regulatory language can Lastly, in the definition of “otherwise related busi- be accessed at http://www.fppc.ca.gov/the-law/fppc— ness entities” in subdivision (b)(3)(A) and (B), the regulations/proposed-regulations—and-notices.html. phrase “the same person or a majority of the same per- sons:” is replaced with “the same person or persons to- TITLE 2. STATE TREASURER’S OFFICE gether” to clarify that business entities are considered otherwise related only when the same person or people own a controlling interest in two or more businesses or Notice of Intention to Amend the same person or people own 50 percent or more own- Conflict-of-Interest C ode ership interest in two or more businesses. This would apply to businesses other than a parent corporation as NOTICE IS HEREBY GIVEN that JOHN CHIANG, defined in subdivision (b)(1) of the proposed the Treasurer of the State of California, pursuant to the regulation. authority vested in him by Govemment Code sections 87300 through 87302, and 87306, proposes to amend the conflict—-of—interest code. Pursuant to Government Code sections 87300 through 87302, and 87306, the SCOPE conflict—of—interest code designates employees and others who must disclose certain investments, income, The Commission may adopt the language noticed interests in real property, and business positions, and herein, or it may choose new language to implement its who must disqualify themselves from making or partic- decisions concerning the issues identified above or re- ipating in the making of governmental decisions affect- lated issues. ing those interests. The amendment includes: ° Addition, revision, and deletion of designated positions FISCAL IMPACT STATEMENT Copies of the proposed amended code are available and may be requested from the agency contact set forth Fiscal Impact on Local Government. This regulation below. will have no fiscal impact on any local entity or program. WRITTEN COMMENT PERIOD Fiscal Impact on State Govemment. This regulation will have no fiscal impact on any state entity or A written comment period has been established com- program. mencing on July 13, 2018 and terminating on August Fiscal Impact on Federal Funding of State Programs. 27, 2018. Any interested person may submit written This regulation will have no fiscal impact on the federal comments concerning the proposed conflict-of— funding of any state program or entity. interest code amendment no later than A ugust 27, 2018 to. State Treasurer’s Office AUTHORITY Attention: Ravinder Kapoor, Senior A ttomey 915 Capitol Mall, Room 110 Sacramento, CA 95814 Government Code Section 83112 provides that the Fair Political Practices Commission may adopt, amend, A public hearing on this matter will not be held unless and rescind rules and regulations to carry out the pur- no later than 15 days prior to the close of the written poses and provisions of the Political Reform Act. comment period, an interested person or his or her rep- 1047 CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 28-Z resentative submits to the agency contact set forth be- within Title 3 of the Califomia Code of Regulations per- low a request for a public hearing. taining to its Cannabis Cultivation Program. With this The State Treasurer has prepared a written explana- rulemaking, the Department will propose permanent tion of the reasons for the designations, disclosure cate- regulations after the consideration of all comments, ob- gories, and disclosure responsibilities, and has avail- jections, and recommendations regarding the proposed able all of the information upon which the proposed action. amendment is based. The Department is issuing this notice to meet require- ments set forth in Goverment Code section 11346.5. AGENCY CONTACT PUBLIC HEARINGS Copies of the proposed amendment to the conflict— The Department will hold public hearings at the of—interest code and all of the information upon which dates, times, and locations listed below at which time the amendment is based may be obtained from, and any any interested person may present statements or argu- inquiries conceming the proposed amendment should ments orally or in writing relevant to the proposed be directed to: action. State Treasurer’s Office Tuesday, J uly 24, 2018 1 p.m. to 3 p.m. Attention: Ravinder Kapoor Adorni Center 915 Capitol Mall, Room 110 1011 Waterfront Drive Sacramento, CA 95814 Eureka, CA 95501 (916) 653-2995 ravinder.kapoor@ treasurer.ca.gov Thursday, J uly 26, 2018 1 p.m. to 3 p.m. Mission Inn Hotel and Spa 3649 Mission Inn Avenue ALTERNATIVES CONSIDERED Riverside, CA 92501 The State Treasurer must determine that no alterna- Tuesday, July 31, 2018 1 p.m. to 3 p.m. tive considered by the State Treasurer would be more Hilton Santa Barbara Beachfront Resort effective in carrying out the purpose for which the ac- 633 E Cabrillo Boulevard tion is proposed or would be as effective and less bur- Santa Barbara, CA 93103 densome to affected private persons than the proposed action. Tuesday, August 28, 2018 1 p.m. to 3 p.m. The State Treasurer has determined that the proposed Califomia Department of Food & Agriculture amended code: Auditorium 1 Imposes no mandate on local agencies or school 1220 N St districts. Sacramento, CA 95814 2 Imposes no cost or savings on any State agency. Services, such as translation between English and 3. Imposes no cost on any local agency or school other languages, may be provided upon request. To en- district that is required to be reimbursed under part sure availability of these services, please make your re- 7 (commencing with section 17500) of division 4 quest no later than ten (10) working days prior to the of title 2 of the Govemment Code. hearing by calling the staff person referenced in this Will not result in any nondiscretionary cost or notice. savings to local agencies. Servicios, coma traduccion, de Ingles a otros id- iomas, pueden hacerse disponibles si usted los pide en Will not result in any cost or savings in federal avance. Para asegurar la disponibilidad de éstos servi- funding to the State. cios, por favor haga su peticion al minima de diez (10) Will not have any potential cost impact on private dias laborables antes de la reunion, llamando a la per- persons or businesses, including small businesses. sona del personal mencionada en este aviso. TITLE 3. DEPARTMENT OF FOOD WRITTEN COMMENT PERIOD AND AGRICULTURE Any interested person, or his or her authorized repre- NOTICE IS HEREBY GIVEN that the Department sentative, may submit written comments relevant to the of Food and A griculture (Department or CD FA) intends proposed regulatory action to the Department. Com- to adopt Division 8, Chapter 1, sections 8000 to 8608, ments may be submitted by mail or by email to: 1048 CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 28-Z Amanda Brown Assembly Bill 243 (Wood, Chapter 688, Statutes of Califomia Department of Food and A griculture 2015), Assembly Bill 266 (Bonta, Chapter 689, Statutes CalCannabis Cultivation Licensing Division of 2015), and Senate Bill 643 (McGuire, Chapter 719, P.O. Box 942871 Statutes of 2015), established a regulatory program for Sacramento, CA 94271 the cultivation of medical cannabis as part of the Medi- CalCannabisRegs@ cdfa.ca.go' cal Cannabis Regulation and Safety Act (MCRSA). Phone: (916) 263-0801 The MCRSA mandated the Department to establish the The written comment period closes at 5:00 pm on Medical Cannabis Cultivation Program (MCCP) to reg- August 27, 2018. The Department will consider only ulate, implement, and enforce the MCRSA as it pertains comments received by that time and via the delivery to the cultivation of commercial medical cannabis. The methods designated above. legislation mandated regulation to encourage environ- mental protection measures by the cultivator to prevent further pollution of water, degradation of the natural en- AUTHORITY AND REFERENCE vironment, wildlife endangerment, and to protect pub- lic peace, health, and safety. MCRSA required the De- The Department is proposing to adopt sections partment to develop and enforce regulations for 8000-8608 of Title 3 of the Califomia Code of statewide commercial medical cannabis cultivation ac- Regulations. tivities occurring at nurseries and indoor, outdoor, and Business and Professions Code sections 26000, mixed—light cultivation sites. The MCRSA also obli- 26001, 26012, 26013, 26050.1, 26053, 26055, 26060.1 gated the Department to create and implement a track— and Health and Safety Code section 11362.768 autho- and-trace system to monitor commercial medical rize the Department to prescribe, adopt, and enforce the cannabis from cultivation through the distribution proposed regulations governing the licensing of com- chain, to be the lead agency in implementing California mercial cannabis cultivation. The proposed regulations Environmental Quality Act requirements for the will implement, interpret, make specific or reference statewide cultivation program, and ensure that weigh- sections 12027, 12210, 12212, 12700, 26001, 26010, ing or measuring devices used for the sale or distribu- 26012, 26013, 26015, 26031, 26038, 26050, 26050.1, tion of medical cannabis are required to meet standards 26051, 26051.5, 26053, 26054, 26054.2, 26055, 26057, equivalent to Division 5 of the Business and Profes- 26058, 26060, 26060.1, 26061, 26063, 26066, 26067, sions Code (commencing with section 12001). Fees as- 26069, 26070, 26110, 26120, 26121, 26160, 26180, sociated with cultivation are required to be scaled and and 26201 of the Business and Professions Code, sec- must cover the Department's costs of implementing and tions 1602 and 1617 of the Fish and Game Code, section enforcing the commercial cultivation licensing pro- 12754.5 of the Food and Agricultural Code, section gram and subsequent regulations. The MCRSA has 1140 of the Labor Code, sections 40141 and 42649.8 of the Public Resources Code, and sections 5101, 13149, since been repealed, but all of the Department's obliga- 13575, and 13751 of the Water Code. tions listed above have been incorporated in the Medici- nal and A dult-Use Cannabis Regulation and Safety Act of 2017. INFORMATIVE DIGEST / POLICY STATEMENT Proposition 64 (2016), also known as the Adult Use of Marijuana Act or AUMA, was passed by California Existing Law: voters and legalized the consumption and cultivation of Proposition 215 (1996), also known as the Compas- cannabis for adult—use and specifies conditions under sionate Use Act of 1996, was passed by California vot- which cannabis may be cultivated, processed, and sold ers and made it legal for patients and their designated for commercial purposes in Califomia. primary caregivers to possess and cultivate marijuana Senate Bill 94 (Committee on Budget and Fiscal Re- for their personal medical use given the recommenda- view, Chapter 94, Statutes of 2017), also known as the tion or approval of a California—licensed physician. Medicinal and Adult—-Use Cannabis Regulation and Senate Bill 420 (Vasconcellos, Chapter 875, Statutes Safety Act or MAUCRSA, repealed the MCRSA and of 2003), also known as the Medical Marijuana Pro- integrated the regulation of the medical and adult recre- gram Act, required the establishment of a program for ational markets into one regulatory framework that pri- the issuance of identification cards to qualified patients oritizes consumer and public safety, environmental pro- so that they may lawfully use cannabis for medical pur- tection, and tax compliance for commercial cannabis poses, and required the establishment of guidelines, in- cultivation. This law created agricultural cooperatives cluding limits, for the lawful cultivation of cannabis for small cannabis cultivators, a method for collecting grown for medical use. and remitting taxes, a process for testing and packaging, 1049 CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 28-Z and a process for collecting data related to driving under The availability of state licensing for cannabis culti- the influence. vators allows local and state law enforcement to clearly Assembly Bill 133 (Committee on Budget, Chapter differentiate legal and illegal cannabis cultivation oper- 253, Statutes of 2017) made technical changes to ations. This clear differentiation allows law enforce- MAUCRSA on cannabis related issues necessary to im- ment to focus their efforts on eliminating cultivation plement the 2017 Budget Act. This new law further sites that elect to grow cannabis without a state license. clarified the intent of the legislature regarding MAU- Over time, this prioritization will reduce the number of CRSA. illegal cannabis cultivators in Califomia and in tum re- Environmental Information and California duce illegal cannabis cultivation activity impacts on Environmental Quality Act Compliance: California’s environment and public health. One of the largest effects of unregulated cannabis cul- Regulations will also outline specific requirements tivation has been serious adverse impacts to the envi- included to protect the environment. Licensed cultiva- ronment. The State Water Resources Control Board, tors will be subject to verification of compliance with the North Coast Regional Water Quality Control Board, these requirements and may face fines and penalties if and the Department of Fish and Wildlife have docu- found to be noncompliant. Under the state licensing mented an increase in the number of unregulated program, cultivators will face potential consequences cannabis cultivation sites and corresponding increases for noncompliance that did not exist under the unregu- in impacts to water supply and water quality, including lated marketplace. As an effect, the Department expects the discharge of sediments, pesticides, fertilizers, petro- that state licensed cannabis cultivators will be motivat- leum hydrocarbons, trash, and human waste. ed to comply resulting in protection of the environment The Department prepared the Programmatic Envi- at licensed cultivation sites. ronmental Impact Report (PEIR) in accordance with the Anticipated cumulative benefits of these regulations provisions of the California Environmental Quality action include: Act. Certified on November 13, 2017, the PEIR pro- e Safeguarding of the environment through vides stakeholders, including the public, responsible implementation of environmental protection agencies, and cannabis cultivators with information measures and enforcement of existing about the potential significant environmental impacts environmental protection laws; associated with the adoption and implementation of these statewide regulations and mitigations to address Promotion of a fair and equitable marketplace for licensed cultivators; significant environmental impacts at cannabis cultiva- tion sites in Califomia. Creation of legitimate businesses and tax revenue The PEIR is available for viewing at: sources; ht s://www.cdfa.ca.gov/CalCannabis/PEIR.html. Increased worker safety through enforcement of Objectives and Anticipated Benefits from this existing employee protection laws. Regulatory Action: Regulations are expected to create jobs through the Existing law obligates the Department to license and introduction of new cultivation businesses and from in- regulate all commercial cannabis cultivators in Califor- dustries that will support the emerging legitimate mar- nia, but allows for discretion with regard to the promul- ket such as accounting and legal services. gation and maintenance of regulations to achieve this Inconsistency with Federal Regulations or Statutes: goal. The primary goal of these regulations is to estab- lish practical and implementable licensing, enforce- The United States Drug Enforcement A dministra- ment, and track—and-trace programs to fulfill the De- tion, under the Controlled Substances Act, lists partment’s responsibilities under the MAUCRSA, as cannabis as a Schedule I drug. Schedule I drugs are de- well as provide a framework for implementation. fined as having a high potential for abuse, having no Because regulations are intended to transition Cali- currently accepted medical use in treatment in the Unit- fornia cannabis cultivation to a legitimate industry, cul- ed States, and a lack of accepted safety for use of the tivators will be provided the opportunity to operate in drug under medical supervision (21 U.S.C. § 812). compliance with state laws and regulations applicable Controlled Substances Act, Title 21 — Food and specifically to cannabis and California business re- Drugs, Chapter 13 — Drug Abuse and Prevention Con- quirements in general. For the first time, California trol, Subchapter 1 — Control and Enforcement, Part B cannabis cultivators will have the opportunity to be- — Authority to Control; Standards and Schedules: come licensed by the state and openly operate within https://www.deadiversion.usdoj.gov/21cfr/21usc/ their communities. 812.htm 1050 CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 28-Z Consistency with Existing State Regulations: It is likely that more illegal grow sites will be reported As required by Government Code section and local agencies will need to allocate more resources 11346.5(a)(3)(D), the Department has conducted an to eradication under MAUCRSA. These additional evaluation of these regulations and has determined that costs are not caused by Department regulations. By li- they are not inconsistent or incompatible with existing censing cultivators, these regulations will make it easier state regulations. for local agencies to identify unlicensed grow sites and the cost per eradication will likely decrease. The De- partment assumes that the total compliance cost will in- PLAIN ENGLISH REQUIREMENT crease, but the effectiveness of enforcement per dollar spent will also increase. The Department’s Standard- The Department staff prepared the proposed regula- ized Regulatory Impact Analysis used a mid-point cost tions pursuant to the standard of clarity provided in of eradication equal to $3 per plant, which is assumed to Government Code section 11349 and the plain English be inclusive of all incremental eradication/enforcement requirements of Government Code sections 11342.580 costs. It is additionally assumed that eradications in- and 11346.2, subdivision (a)(1). The proposed regula- crease by 15 percent over 2015 levels (2.6 million tions are written to be easily understood by the persons plants) under MAUCRSA. The total increase in en- that will use them. forcement costs to local agencies equals $1.189 million. The Department’s regulations do not cause any in- DISCLOSURES REGARDING THE crease in costs to other state agencies. The State Water PROPOSED ACTION Resources Control Board, Department of Pesticide Regulation, Department of Consumer. Affairs, and oth- The Department has made the following initial er agencies are required to take actions under determinations: MAUCRSA, but any costs are separate from the De- partment’s regulations. Similar to loca