Bill Text: CA SB435 | 2015-2016 | Regular Session | Amended


Bill Title: Medical Marijuana: personal cultivation.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2016-11-30 - From Assembly without further action. [SB435 Detail]

Download: California-2015-SB435-Amended.html
BILL NUMBER: SB 435	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JANUARY 19, 2016
	AMENDED IN ASSEMBLY  JULY 7, 2015
	AMENDED IN SENATE  JUNE 2, 2015
	AMENDED IN SENATE  APRIL 6, 2015

INTRODUCED BY   Senator Pan
    (   Principal coauthor:   Assembly Member
  Wood   ) 

                        FEBRUARY 25, 2015

   An act to  add Chapter 3.5 (commencing with Section 24300)
to Division 20 of the Health and Safety Code, relating to health
care.   amend Section 11362.777 of the Health and Safety
Code, relating to medical marijuana. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 435, as amended, Pan.  Medical home: health care
delivery model.   Medical Marijuana: personal
cultivation.  
   Existing law, the Compassionate Use Act of 1996, an initiative
measure enacted by the approval of Proposition 215 at the November 5,
1996, statewide general election, authorizes the use of marijuana
for medical purposes. Existing law, enacted by the Legislature,
provides for the licensing and regulation by both state and local
entities of medical marijuana and its cultivation.  
   Existing law requires the Department of Food and Agriculture to
establish a Medical Cannabis Cultivation Program. The program
prohibits a person from cultivating medical marijuana without first
obtaining a state license issued by the department and a license,
permit, or other entitlement specifically permitting cultivation
pursuant to the program from the city, county, or city and county in
which the cultivation will occur, as specified. Existing law exempts
certain persons from these licensure requirements under specified
conditions, but authorizes a city, county, or city and county to
regulate or ban the cultivation, storage, manufacture, transport,
provision, or other activity by the exempt person.  
   This bill would instead provide that an exemption from these
licensure requirements does not limit or prevent a city, county, or
city and county from exercising its police power authority under a
specified provision of the California Constitution.  
   Existing law requires the Office of Statewide Health Planning and
Development to perform various functions and duties with respect to
health policy and planning and health professions development.
Existing law states the Legislature's finding that there is a need to
improve the effectiveness of health care delivery systems. Existing
law generally defines a medical home as a single provider, facility,
or team that coordinates an individual's health care services.
 
   This bill would require the Secretary of California Health and
Human Services to convene a working group of public payers, private
health insurance carriers, 3rd-party purchasers, health care
providers, and health care consumer representatives to identify
appropriate payment methods to align incentives in support of patient
centered medical homes. The bill would prescribe the powers and
duties of the working group, including consulting with, and providing
recommendations to, the Legislature and relevant state agencies on
matters relating to the implementation of the patient centered
medical home care model. The bill would require the secretary to
convene the working group only after making a determination that
sufficient nonstate funds have been received to pay for all costs of
implementing the bill.  
   This bill would make legislative findings and declarations
regarding the intent of the Legislature to exempt and immunize
activities undertaken in connection with patient centered medical
homes from state and federal antitrust laws, as specified. 

   Vote: majority. Appropriation: no. Fiscal committee:  yes
  no  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 11362.777 of the  
Health and Safety Code   is amended to read: 
   11362.777.  (a) The Department of Food and Agriculture shall
establish a Medical Cannabis Cultivation Program to be administered
by the  secretary,   secretary and,  except
as specified in subdivision (c), shall administer this section as it
pertains to the cultivation of medical marijuana. For purposes of
this section and Chapter 3.5 (commencing with Section 19300)  of
Division 8  of the Business and Professions Code, medical
cannabis is an agricultural product.
   (b) (1) A person or entity shall not cultivate medical marijuana
without first obtaining both of the following:
   (A) A license, permit, or other entitlement, specifically
permitting cultivation pursuant to these provisions, from the city,
county, or city and county in which the cultivation will occur.
   (B) A state license issued by the department pursuant to this
section.
   (2) A person or entity shall not submit an application for a state
license issued by the department pursuant to this section unless
that person or entity has received a license, permit, or other
entitlement, specifically permitting cultivation pursuant to these
provisions, from the city, county, or city and county in which the
cultivation will occur.
   (3) A person or entity shall not submit an application for a state
license issued by the department pursuant to this section if the
proposed cultivation of marijuana will violate the provisions of any
local ordinance or regulation, or if medical marijuana is prohibited
by the city, county, or city and county in which the cultivation is
proposed to occur, either expressly or otherwise under principles of
permissive zoning.
   (c) (1) Except as otherwise specified in this subdivision, and
without limiting any other local regulation, a city, county, or city
and county, through its current or future land use regulations or
ordinance, may issue or deny a permit to cultivate medical marijuana
pursuant to this section. A city, county, or city and county may
inspect the intended cultivation site for suitability  prior
to   before  issuing a permit. After the city,
county, or city and county has approved a permit, the applicant shall
apply for a state medical marijuana cultivation license from the
department. A locally issued cultivation permit shall only become
active upon licensing by the department and receiving final local
approval. A person shall not cultivate medical marijuana 
prior to   before  obtaining both a permit from the
city, county, or city and county and a state medical marijuana
cultivation license from the department.
   (2) A city, county, or city and county that issues or denies
conditional licenses to cultivate medical marijuana pursuant to this
section shall notify the department in a manner prescribed by the
secretary.
   (3) A city, county, or city and county's locally issued
conditional permit requirements must be at least as stringent as the
department's state licensing requirements.
   (4) If a city, county, or city and county does not have land use
regulations or ordinances regulating or prohibiting the cultivation
of marijuana, either expressly or otherwise under principles of
permissive zoning, or chooses not to administer a conditional permit
program pursuant to this section, then commencing March 1, 2016, the
division shall be the sole licensing authority for medical marijuana
cultivation applicants in that city, county, or city and county.
   (d) (1) The secretary may prescribe, adopt, and enforce
regulations relating to the implementation, administration, and
enforcement of this part, including, but not limited to, applicant
requirements, collections, reporting, refunds, and appeals.
   (2) The secretary may prescribe, adopt, and enforce any emergency
regulations as necessary to implement this part. Any emergency
regulation prescribed, adopted, or enforced pursuant to this section
shall be adopted in accordance with Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code, and, for purposes of that chapter, including Section 11349.6 of
the Government Code, the adoption of the regulation is an emergency
and shall be considered by the Office of Administrative Law as
necessary for the immediate preservation of the public peace, health
and safety, and general welfare.
   (3) The secretary may enter into a cooperative agreement with a
county agricultural commissioner to carry out the provisions of this
chapter, including, but not limited to, administration,
investigations, inspections, licensing and assistance pertaining to
the cultivation of medical marijuana. Compensation under the
cooperative agreement shall be paid from assessments and fees
collected and deposited pursuant to this chapter and shall provide
reimbursement to the county agricultural commissioner for associated
costs.
   (e) (1) The department, in consultation with, but not limited to,
the Bureau of Medical Marijuana Regulation, the State Water Resources
Control Board, and the Department of Fish and Wildlife, shall
implement a unique identification program for medical marijuana. In
implementing the program, the department shall consider issues,
including, but not limited to, water use and environmental impacts.
In implementing the program, the department shall ensure that:
   (A) Individual and cumulative effects of water diversion and
discharge associated with cultivation do not affect the instream
flows needed for fish spawning, migration, and rearing, and the flows
needed to maintain natural flow variability.
   (B) Cultivation will not negatively impact springs, riparian
wetlands, and aquatic habitats.
   (2) The department shall establish a program for the
identification of permitted medical marijuana plants at a cultivation
site during the cultivation period. The unique identifier shall be
attached at the base of each plant. A unique identifier, such as, but
not limited to, a zip tie, shall be issued for each medical
marijuana plant.
   (A) Unique identifiers will only be issued to those persons
appropriately licensed by this section.
   (B) Information associated with the assigned unique identifier and
licensee shall be included in the trace and track program specified
in Section 19335 of the Business and Professions Code.
   (C) The department may charge a fee to cover the reasonable costs
of issuing the unique identifier and monitoring, tracking, and
inspecting each medical marijuana plant.
   (D) The department may promulgate regulations to implement this
section.
   (3) The department shall take adequate steps to establish
protections against fraudulent unique identifiers and limit illegal
diversion of unique identifiers to unlicensed persons.
   (f) (1) A city, county, or city and county that issues or denies
licenses to cultivate medical marijuana pursuant to this section
shall notify the department in a manner prescribed by the secretary.
   (2) Unique identifiers and associated identifying information
administered by a city or county shall adhere to the requirements set
by the department and be the equivalent to those administered by the
department.
   (g) This section does not apply to a qualified patient cultivating
marijuana pursuant to Section 11362.5 if the area he or she uses to
cultivate marijuana does not exceed 100 square feet and he or she
cultivates marijuana for his or her personal medical use and does not
sell, distribute, donate, or provide marijuana to any other person
or entity. This section does not apply to a primary caregiver
cultivating marijuana pursuant to Section 11362.5 if the area he or
she uses to cultivate marijuana does not exceed 500 square feet and
he or she cultivates marijuana exclusively for the personal medical
use of no more than five specified qualified patients for whom he or
she is the primary caregiver within the meaning of Section 11362.7
and does not receive remuneration for these activities, except for
compensation provided in full compliance with subdivision (c) of
Section 11362.765. For purposes of this section, the area used to
cultivate marijuana shall be measured by the aggregate area of
vegetative growth of live marijuana plants on the premises. Exemption
from the requirements of this section does not limit or prevent a
city, county, or city and county from  regulating or banning
the cultivation, storage, manufacture, transport, provision, or other
activity by the exempt person, or impair the enforcement of that
regulation or ban.   exercising its police p  
ower authority under Section 7 of Article XI of the California
Constitution.  
  SECTION 1.    The Legislature finds and declares
as follows:
   (a) It is the intent of the Legislature in enacting this act to
provide for collaboration among public payers, private health
insurance carriers, third-party purchasers, health care providers,
and health care consumer representatives, as necessary, to identify
consistent appropriate payment methods to support chronic care
management in, and to align incentives in support of, patient
centered medical homes.
   (b) It is the intent of the Legislature to exempt from state
antitrust laws and to provide immunity from federal antitrust laws,
pursuant to the state action doctrine for, any activities undertaken
pursuant to this act that otherwise might be constrained by those
laws. It is not the intent of the Legislature to authorize any person
or entity to engage in or conspire to engage in any activity that
would constitute a per se violation of state or federal antitrust
laws, including, but not limited to, an agreement among competing
health care providers or health insurance carriers as to the price or
specific level of payment for a health care service.
   (c) It is the intent of the Legislature that the state shall
articulate a clear and affirmative policy describing its intent to
displace competition with respect to the implementation of this act,
and shall actively supervise anticompetitive conduct and its results
with ongoing oversight.  
  SEC. 2.    Chapter 3.5 (commencing with Section
24300) is added to Division 20 of the Health and Safety Code, to
read:
      CHAPTER 3.5.  PATIENT CENTERED MEDICAL HOME HEALTH CARE
DELIVERY MODEL


   24300.  The Secretary of California Health and Human Services
shall convene a working group of public payers, private health
insurance carriers, third-party purchasers, health care providers,
and health care consumer representatives to identify appropriate
payment methods to align incentives in support of patient centered
medical homes.
   24301.  (a) The working group convened pursuant to this chapter
shall consult with, and provide recommendations to, the Legislature
and relevant state agencies on all matters relating to the
implementation of a patient centered medical home care model.
   (b) The working group shall have the authority to do all of the
following:
   (1) Develop consensus on strategies for implementing the patient
centered medical home care model and service delivery change at the
practice, community, and health care system level.
   (2) Identify ways to create alignment regarding payment,
reporting, and infrastructure investments.
   (3) Identify ways to utilize public and private purchasing power
and ways to enable competing payers to work collaboratively to
establish common patient centered medical home initiatives.
   (4) Propose participation in relevant federally funded pilot and
demonstration projects.
   24302.  The secretary shall convene the working group only after
he or she makes a determination that sufficient nonstate funds have
been received to pay for all costs of implementing this chapter.
      
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