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Page 2 of 6 <br /> <br /> <br />ANALYSIS <br />On September 11, 2015, the California Legislature passed Assembly Bills 243 and 266 <br />and Senate Bill 643. These bills create a broad state regulatory and licensing system <br />governing the cultivation, testing, and distribution of medical marijuana, the <br />manufacturing of marijuana products, and physician recommendations for medical <br />marijuana. The new laws also recognize a range of medical marijuana businesses <br />referred to as “commercial cannabis activities,” including cultivation businesses, <br />marijuana product manufacturers, marijuana distributors and transporters, marijuana <br />testing laboratories, and dispensaries, and provide immunity to marijuana businesses <br />operating with both a state license and a local permit. Governor Brown signed the three <br />bills on October 9, 2015. Under the new legislation, state licenses and local permits will <br />be required for all facets of the medical marijuana industry: <br /> <br />• AB 243 establishes the Department of Food and Agriculture (DFA) as the <br />licensing and regulatory authority for medical marijuana cultivation. Any person <br />who wishes to engage in commercial cultivation of medical marijuana must <br />obtain a state license from the DFA and comply with local permitting <br />requirements. AB 243 also requires (1) the DFA to work with other state <br />agencies to develop environmental protection standards, (2) the Department of <br />Pesticide Regulation to establish medical marijuana pesticide standards, and (3) <br />the Department of Public Health to create standards for labeling of marijuana <br />edibles. <br /> <br />• AB 266 creates the Bureau of Medical Marijuana Regulation within the <br />Department of Consumer Affairs (DCA) to develop regulations and issue state <br />licenses for medical marijuana dispensaries, distributors, and transporters. AB <br />266 designates the Department of Public Health as the licensing and regulatory <br />authority for manufacturers of marijuana products and medical marijuana testing <br />laboratories. Like AB 243, AB 266 requires all state marijuana license applicants <br />to comply with local permitting requirements. <br /> <br />• SB 643 establishes standards for physicians that recommend medical marijuana, <br />including discipline for physicians who recommend excessive amounts. SB 643 <br />also creates standards for state license applications and enforcement. <br /> <br />Taken together, the new legislation creates the Medical Marijuana Safety and <br />Regulation Act (“MMRSA”). The new legislation preserves local control over marijuana <br />facilities and land uses, including the authority to prohibit dispensaries and other <br />9.A. - Page 2