Proposition 64 Adult Use Marijuana Act (AUMA) with Information on Medical Cannabis

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1 Proposition 64 Adult Use Marijuana Act (AUMA) with Information on Medical Cannabis Informational Workshop Presented by the County of Imperial

2 California Regulatory History 1996 Proposition 215 Compassionate Use Act: Established the medical use of marijuana 2003 Senate Bill 420 Medical Marijuana Program Act: Developed the medical marijuana identification cards 2015 Assembly Bill 243, Assembly Bill 266 and Senate Bill 643 Medical Marijuana Regulation and Safety Act (MMRSA): Created the regulatory framework for the State Licensing with three licensing authorities 2016 Proposition 64: Adult Use of Marijuana Act (AUMA): Approved the adult recreational use of marijuana

State Agencies Bureau of Marijuana Control -

Cultivation Track and Trace Department of Public

3 State Agencies Bureau of Marijuana Control - Department of Consumer Affairs Retail Sales/Dispensaries Distributors Microbusiness Department of Food and Agricultural - CalCannabis Cultivation Track and Trace Department of Public Health - Office of Manufacturer Cannabis Safety -OMCS Manufactures Testing Laboratories

Medical Cannabis - 2018 State regulations for

4 Medical Cannabis State regulations for medical cannabis are in the draft process and will pertain to: Cultivation Manufacturing Processing Distribution Transportation PLUS ++

5 USA Marijuana States 28 States have Medical Marijuana 8 States have Recreational Marijuana

6 Adult Use Of Marijuana Act (AUMA) State of California passed Proposition 64 AUMA on November 9, 2016 with 57% statewide voter approval. The County of Imperial Voted 51% against.

7 Adult Use Of Marijuana Act Prop 64 permits the adult use of marijuana. It gives local jurisdictions the authority to permit or prohibit (ban) the commercial marijuana operations. Further more the local jurisdiction can reasonably regulate private marijuana operations. Commercial Marijuana Options include: Permitting of all commercial marijuana operations Partial permitting of commercial marijuana operations Complete ban of all commercial marijuana operations Private Marijuana Options include: Permit outside cultivation Ban outside cultivation

8 Adult Use Prop 64 allows Recreational Marijuana (Cannabis) use for an adult (21 years old); Private use Possession and, Growing up to 6 plants (indoors)

9 Adult Use: Allowance and Restrictions May possess, process, transport, purchase, obtain, or give away up to; 28.5 grams (1 oz) of marijuana, or 8 grams of concentrated marijuana products For personal use an Adult may cultivate up to 6 plants within their house. The County may reasonably regulate the indoor growing The County may regulate or prohibit the outside growing

Additional Restrictions No smoking in a public place (except where authorized locally) No smoking where smoking tobacco is prohibited No smoking within 1,000 feet of a school, day care center or

10 Additional Restrictions No smoking in a public place (except where authorized locally) No smoking where smoking tobacco is prohibited No smoking within 1,000 feet of a school, day care center or youth center No smoking while driving or riding in a vehicle Cities may prohibit smoking and possession in buildings owned, leased, or occupied by the city Employers may maintain drug-free workplaces

11 AUMA Permits Prop 64 permits a company holding both a State License and local jurisdiction permit the ability to develop and operate recreational and medical marijuana the Commercial; Cultivation Manufacturing/Processing Retail Sales Along with Testing and Transportation

12 State Licensing Prop 64 creates permits the State to issue licensees under five categories: Cultivation: 6-9 types related to growing Indoor, outdoor and size of operation Manufacturing: 2 types, related to processing methods Retail Sales: 3 types related to number and size of operation Transportation: 2 types related to distribution and delivery Testing: 1 type pertaining to the laboratory testing of plants and Marijuana manufactured products.

13 Cultivation The Commercial Cultivation of medical and recreational marijuana. Things to consider; Type of operation, Indoor, outdoor, greenhouse or combination Location of Operation: agricultural or industrial lands Size of Operation: Indoor up to 22,000 s.f., Outdoor up to 1 acre Pesticide management and permitting Security Plans: all types of operations Water and power usage Industrial Hemp

14 Cultivation

Manufacturing The Manufacturing of marijuana and marijuana related projects. Things to consider; Type of manufacturing: edibles, creams, oils, powders, etc. Type of Solvents: Food based (e.g. oil, food grade glycerin, butter) Supercritical Fluid Extraction (e.

15 Manufacturing The Manufacturing of marijuana and marijuana related projects. Things to consider; Type of manufacturing: edibles, creams, oils, powders, etc. Type of Solvents: Food based (e.g. oil, food grade glycerin, butter) Supercritical Fluid Extraction (e.g. carbon dioxide), Uncompressed Liquid Solvents (e.g. ethanol, methanol, acetone, naptha), and Compressed liquid hydrocarbons (e.g. butane ) Location: agricultural or industrial lands Size of Operation

16 Retail Sales Prop 64 permits the operation of Dispensaries / Retail shops for commercial sale of recreation marijuana and marijuana related products. Recent regulations also allow medical marijuana dispensaries to become for profit businesses. Things to consider; Location of Stores: centralized in one location, regional throughout the county, only in rural or urban areas, or based on specific zones such as agricultural or industrial lands Number of permitted/licensed stores in the county Size of stores: less then 2,000 s.f., up to 5,000 or greater s.f. Security Plans: all types of operations Days and Hours of operation

17 Dispensary/Retail Shop

18 Transportation and Testing Prop 64 provides for the Transportation/Distribution of marijuana from cultivation to manufacturer, from manufacturer to testing facility and from testing facility to dispensary/retail shop and in various other combinations. The Testing facilities would be independent third party operations charged with testing every aspect of the marijuana plant, from the unprocessed plants, to the oils, creams, and powders. The testing facilities would also test any of the edible products produced with a component of marijuana. Track and Trace of each plant from planting to consumer is required.

19 Taxation on Marijuana (Prop 64) Adds state excise tax of 15% on the privilege of purchasing marijuana at retail (Section 34011(a)). Effective January 1, 2018 Adds excise tax of $9.25/dry-weight ounce (flowers) and $2.75/dry- weight ounce leaves on the privilege of cultivating marijuana. Effective January 1, 2018 Does not affect local governments authority to impose taxes on medical or non-medical marijuana. Exemptions: Marijuana cultivated for personal use is exempt from cultivation tax. Medical marijuana is exempt from state/local sales tax but NOT other state or local taxes. Effective November 9, 1016

20 Local Taxation of Marijuana Prop. 64: allows the County to impose additional taxes on both Recreational and Medical Marijuana (Calif Rev&TaxCode 3402) The County can add new, increased, or extended local taxes. Taxes require voter approval (2/3 for Special Tax; majority vote for General Tax) The most common local excise tax is a Business License Tax which could be applied to the Cultivation, Manufacturing, Retail and Transportation activities

21 Industrial Hemp Overview Prop 64 included a provision for the CA Industrial Hemp Farming Act of 2013 to become effective on 1/1/17. Industrial hemp is an agricultural commodity used to produce a wide variety of products, including textiles, rope, food, oil, and plastics. Industrial hemp refers to non-psychoactive types of Cannabis sativa. It must contain less than 0.3% of THC, the psychoactive chemical in Marijuana. Industrial hemp is often visually indistinguishable from Medical and Adult-Use forms of Marijuana.

22 Growing Hemp in California Per the CA Food and Agricultural Code: To grow hemp in CA, commercial growers must first register with the County Agricultural Commissioner. These registrations are not yet available f from the State. Per the Code, growers must also: Grow only in densely planted plots of not less than 1/10 acre, with signs that indicate that the planting is Industrial Hemp Use only approved seed varieties Submit samples to be tested by an approved laboratory for THC content. The crop must test at or below 0.3% THC content to harvest. If it tests greater than 0.3% THC, the crop must be destroyed.

23 Trending Topics Child Protection Employee Testing

24 Thoughts

Recreational Marijuana Town of Mammoth Lakes Proposed implementation of Prop 64 April 26, 2017

Recreational Marijuana Town of Mammoth Lakes Proposed implementation of Prop 64 April 26, 2017 Workshop summary Personal Use Taxation State licensing requirements for marijuana sales Current Town regulations