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