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HomeMy WebLinkAboutAgenda Report - April 6, 2016 C-11TM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM AGENDA TITLE: Receive Report Regarding Communication Pertaining to Assembly Bill 2614 (Bonta) — Medical Cannabis: Out -of -State Convictions MEETING DATE: April 6, 2016 PREPARED BY: City Clerk RECOMMENDED ACTION: Receive report regarding communication pertaining to Assembly Bill 2614 (Bonta) — Medical Cannabis: Out -of -State Convictions. BACKGROUND INFORMATION: The City received a request for communication from the League of California Cities regarding AB 2614 (Bonta). There was a need to send a letter of opposition immediately in light of a pending hearing. AB 2614 would prohibit the denial of a state license for commercial cannabis activity if the denial is based solely on an out-of-state felony conviction that did not include a period of incarceration, so long as a local jurisdiction is aware of the conviction and is nonetheless willing to issue a local permit or other authorization. Any change to the existing statutory licensing provisions that would restrict the discretion of the relevant state agency in granting a license — particularly in regard to evaluating an applicant's criminal history — represents a dangerous, negative precedent in the form of a legislative attempt to encroach upon and micromanage what has until now been a purely executive function. The attached letter, signed by the Mayor, was sent out on March 17, 2016. A copy of the initial request, along with the text of the bill, is also attached. This report is provided for informational purposes only, pursuant to policy. FISCAL IMPACT: Not applicable. FUNDING AVAILABLE: Not applicable. J'nifer Mi slerraiolo City Clerk APPROVED: ephen Schwab N:\Administration\CLERK\Council\COUNCOM\LeagueReceiveReportMaster.doc ity Manager CITY COUNCIL MARK CHANDLER, Mayor DOUG KUEHNE, Mayor Pro Tempore BOB JOHNSON JOANNE MOUNCE ALAN NAKANISHI CITY OF LODI The Honorable Rob Bonta California State Assembly State Capitol — Room 6005 Sacramento, CA 95814 FAX: (916) 319-2118 CITY HALL, 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209) 333-6702 / FAX (209) 333-6807 [gdi.gov citvclerk@iodi.Qov March 17, 2016 RE: AB 2614 (Bonta) Medical Cannabis: Out -of -State Convictions Notice of OPPOSITION Dear Assembly Member Bonta: STEPHEN SCHWABAUER City Manager JENNIFER M. FERRAIOLO City Clerk JANICE D. MAGDICH City Attorney The City of Lodi regrets to inform you of its strong opposition to AB 2614. AB 2614 would prohibit the denial of a state license for commercial cannabis activity if the denial is based solely on an out-of-state felony conviction that did not include a period of incarceration, so long as a local jurisdiction is aware of the conviction and is nonetheless willing to issue a local permit or other authorization. The suitability provisions for state licensure included in the Medical Marijuana Regulation and Safety Act (MMRSA) ensure that individuals seeking a state license for commercial cannabis activity represent law-abiding citizens whom our communities can trust to operate compliant medical cannabis business operations. The provisions were negotiated in good faith among a number of stakeholders over the course of 2015, culminating in language that protects public safety while acknowledging the legal challenges that cannabis industry operators have faced in the past. In addition to providing a means for an individual with a felony conviction to obtain a license, the language also provides complete discretion to the licensing authority by stating that the licensing authority "may deny the application for licensure" if the applicant has been convicted of a substantially related offense. Any change to the existing statutory licensing provisions that would restrict the discretion of the relevant state agency in granting a license — particularly in regard to evaluating an applicant's criminal history — represents a dangerous, negative precedent in the form of a legislative attempt to encroach upon and micromanage what has until now been a purely executive function. There is no pressing need to change existing law in this area by crafting a weaker standard for state licensing for medical marijuana businesses than is applied to any other applicant for any other category of state licensure. This approach calls the legitimacy of the entire regulatory structure for medical marijuana into question, because it invites unnecessary and entirely avoidable hazards to public safety. Should AB 2614 become law, it is within the realm of plausibility that drug traffickers of far more dangerous controlled substances — who happen to have been convicted only once — could become licensed by the State of California. AB 2614 (Bonta) Medical Cannabis: Out -of -State Convictions — Notice of OPPOSITION Page Two This measure discards the fragile consensus on the issue of disqualifying felonies for state licensure that was achieved only after several weeks of bitter and contentious stakeholder meetings last year. At a minimum, it will damage the credibility of the entire regulatory structure from the viewpoint of cities and law enforcement groups who played a critical role in achieving last year's consensus. To re -open this issue now invites a resumption of last year's conflict, as it may well result in calls for even stricter criteria for licensing than that which exists in the MMRSA today. Finally, this bill runs the very substantial risk of provoking a negative reaction from federal law enforcement authorities, by weakening the criteria for state licensure in a way that makes it more difficult to ferret out potential bad actors. It invites more intense federal scrutiny, and may well pave the way to future federal enforcement efforts, which no one wants. For these reasons the City of Lodi must respectfully, but firmly, oppose AB 2614. Sincerely, /U1141 adi.41:64.7 Mark Chandler Mayor, City of Lodi MCljmf cc: Senator Cathleen Galgiani, Fax: (916) 651-4905 Assemblymember Jim Cooper, Fax: (916) 319-2109 Le Ondra Clark Harvey, Chief Consultant, Assembly Business and Professions Committee, Fax: (916) 319-3306 Stephen Qualls, Regional Public Affairs Manager, squallsCa)cacities.ora Meg Desmond, League of California Cities, mdesmond a[�,cacities.orff Jennifer Ferraiolo From: Stephen R. Qualls <squalls@cacities.org> Sent: Tuesday, March 15, 2016 6:43 PM Subject: URGENT: LETTERS NEEDED Attachments: AB 2614_Talking Points.pdf; Sample Oppose Letter.docx; Action Alert.docx After months of negotiations last year, the League and the California Police Chiefs Association were able to reach an agreement that prohibited those with prior drug related convictions from obtaining licenses from the Department of Consumers Affairs to sell Medical Marijuana. Even if those convictions were from outside the state and no time was served. AB 2614 would set a precedent by allowing such people to obtain a license by prohibiting the Department of Consumers Affairs from denying a license if their prior conviction was the only reason for doing so. Under California law, similar rules have NEVER been applied to licensing before. This means that the dispensaries in your city could be operated by convicted drug trafficers or abusers. Please be sure to send the attached letter to the author, your legislators and those requested in the letter. As usual, please contact me with any questions. Thank you, Stephen Qualls Central Valley Regional Public Affairs Manager League of California Cities 209-614-0118 Fax 209-883-0653 squalls@cacities.org<mailto: squalls@cacities.org> [Description: Description: LCC_Logo_SM] [https://mail.cacities.org/owa/attachment.ashx?id=RgAAAACy8fHTR2LKSbH7v1WA%2bKroBwCJ I F8QxE1YR5pVkCgOVZ7 pAAAGc5DHAACi1U1kD4vzS51QTLjAf8aNAAAyvLINAAAJ&attcnt=1&attid0=BAABAAAA&attcid0=image002.png%4001CF9 F55.154BCF00] Strengthening California Cities through Advocacy and Education To expand and protect local control for cities through education and advocacy in order to enhance the quality of life for all Californians. <https://mail.cacities.org/owa/redir.aspx?C=9balcebeda914a8d8b298c0154b06ac0&URL=http%3a%2f%2fwww.cacities .org%2fAC> 1 AB 2614 (Bonta) Medical Marijuana: Felony Convictions Talking Points • This bill disregards the consensus language on disqualifying felonies for state licensure that the Police Chiefs Association and the League agreed to in last year's legislation — solely for the benefit of a tiny handful of wealthy individuals who have grown rich selling marijuana. • AB 2614 seeks to take away the discretion of the Department of Consumer Affairs on the decision of whether applicants with out- of-state felony convictions can be licensed to operate a marijuana business in California. • This bill would prohibit the Department from denying a license to a person with an out-of-state felony conviction. Such a rule has never applied to any other category of state licensing. • There is no compelling public policy or public safety argument justifying this attempt to weaken the rules on state licensing. • This measure should be rejected as imposing an unnecessary and unacceptable danger to public safety. • AB 2614 places California at greater risk of intense scrutiny by federal law enforcement officials, making it more likely that we will see more, not less, federal enforcement action in the future. ACTION ALERT!! AB 2614 (Bonta) Medical cannabis: state licenses: out-of-state convictions. OPPOSE Background for AB 2614 (Bonta): AB 2614 would prevent the Department of Consumer Affairs from denying a state license to a person with an out-of-state conviction. It provides that such a conviction cannot be the sole basis for denial of a license, if it did not include a period of incarceration, and if a local jurisdiction is aware of the conviction and is nonetheless willing to issue a local permit or other authorization. This bill blatantly disregards consensus language on disqualifying felonies for state licensure that the League and the Police Chiefs agreed to in last year's legislation, re -opening one of the most controversial issues in the Medical Marijuana and Safety Act to ensure that a small number of current business operators can obtain a state license. Under current law, the Department has discretion to approve or deny a license based on an out-of-state conviction. This is the standard rule for state licensing entities. AB 2614 seeks to change that, by infringing on a state licensing entity's discretion for the benefit of a tiny handful of individuals who have grown rich selling marijuana. This is unprecedented in California law. Such a rule has never applied to any other category of state licensing. This bill is an attempt by the Legislature to encroach upon licensing decisions in a most sensitive area — criminal background — a function that until now has been purely a function of the executive branch of government. There is no compelling public policy or public safety argument justifying this attempt to weaken the rules on state licensing. Finally, this bill runs the very substantial risk of provoking a negative reaction from federal law enforcement authorities, by weakening the criteria for state licensure. AB 2614 invites more intense federal scrutiny, and may well pave the way to future federal enforcement efforts. ACTION: AB 2614, although not yet calendared, is expected to be heard in the Assembly Business and Professions Committee in the next few weeks. Please send a letter of CITY OPPOSITION to your Assembly Member. Sample letter is attached or you may use the League's Action Center to submit a letter online. ASSEMBLY BUSINESS AND PROFESSIONS Member District Party Room Phone Fax Baker, Catharine 16 R 4153 916 319 2016 916 319 2116 Bloom, Richard 50 D 2003 916 319 2050 916 319 2150 Brough, William (Vice -Chair) 73 R 2174 916 319 2073 916 319 2173 Campos, Nora 27 I D I 4016 916 319 2027 I 916 319 2127 Chavez, Rocky 76 R 2170 916 319 2076 916 319 2176 Dahle, Brian 1 R 2158 916 319 2001 916 319 2101 Dodd, Bill 4 D 2137 916 319 2004 916 319 2104 EQgman, Susan 13 D 3173 916 319 2013 916 319 2113 Gatto, Mike 43 D 5136 916 319 2043 916 319 2143 Gomez, Jimmy 51 D I 2114 I 916 319 2051 916 319 2151 Holden, Chris 41 D 3152 916 319 2041 916 319 2141 Jones, Brian 71 R 3141 916 319 2071 r 916 319 2171 Mullin, Kevin 22 D I 3160 r 916 319 2022 r-916 319 2122 Salas, Rudy (Chair) 32 D 2188 916 319 2032 916 319 2132 Ting, Philip 19 D 6026 916 319 2019 916 319 2119 Wood, Jim 2 I D I 3120 916 319 2002 916 319 2102 Talking Points: • This bill disregards the consensus language on disqualifying felonies for state licensure that the Police Chiefs Association and the League agreed to in last year's legislation — solely for the benefit of a tiny handful of wealthy individuals who have grown rich selling marijuana. • AB 2614 seeks to take away the discretion of the Department of Consumer Affairs on the decision of whether applicants with out-of-state felony convictions can be licensed to operate a marijuana business in California. • This bill would prohibit the Department from denying a license to a person with an out-of-state felony conviction. Such a rule has never applied to any other category of state licensing. • There is no compelling public policy or public safety argument justifying this attempt to weaken the rules on state licensing. • This measure should be rejected as imposing an unnecessary and unacceptable danger to public safety. • AB 2614 places California at greater risk of intense scrutiny by federal law enforcement officials, making it more likely that we will see more, not less, federal enforcement action in the future. CALIFORNIA LEGISLATURE -2015-16 REGULAR SESSION ASSEMBLY BILL No. 2614 Introduced by Assembly Member Bonta February 19, 2016 An act to amend Section 19325 of the Business and Professions Code, relating to medical cannabis. LEGISLATIVE COUNSEL'S DIGEST AB 2614, as introduced, Bonta. Medical cannabis: state licenses: out-of-state convictions. The Medical Marijuana Regulation and Safety Act provides for the licensure of persons engaged in specified activities relating to medical cannabis and authorizes licensing authorities to only issue state licenses to qualified applicants. Existing law prohibits a person from engaging in commercial cannabis activity without possessing both a state license and a local permit, license, or other authorization. This bill would prohibit the denial of a state license to an applicant if the denial is based solely on a conviction outside of the state of California where the sentencing did not include a period of incarceration, but only if a local government with knowledge of that prior conviction issues a permit, license, or other authorization permitting the applicant to engage in commercial cannabis activity. Vote: majority. Appropriation: no. Fiscal committee: yes. State -mandated local program: no. The people of the State of California do enact as follows: 1 SECTION 1. Section 19325 of the Business and Professions 2 Code is amended to read: 99 AB2614 —2- 1 19325. An applicant shall not be denied a state license if the 2 denial is based solely on any of the following: 3 (a) A conviction or act that is substantially related to the 4 qualifications, functions, or duties of the business or profession 5 for which the application is made for which the applicant or 6 licensee has obtained a certificate of rehabilitation pursuant to 7 Chapter 3.5 (commencing with Section 4852.01) of Title 6 of Part 8 3 of the Penal Code. 9 (b) A conviction that was subsequently dismissed pursuant to 10 Section 1203.4, 1203.4a, or 1203.41 of the Penal Code. 11 (c) A conviction outside of the state of California where the 12 sentencing did not include a period of incarceration, but only if a 13 local government with knowledge of that prior conviction issues 14 a permit, license, or other authorization permitting the applicant 15 to engage in commercial cannabis activity. 0 99 FACSIMILE COVER SHEET CITY CLERK'S OFFICE 221 WEST PINE STREET - P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 PHONE (209) 333-6702 FAX (209) 333-6807 citycirk@lodi.gov or ufa�risc,ladi.goy DATE: March 17, 2016 FROM: Pamela M. Farris Deputy City Clerk TO: Assemblymember Rob Bonta, 916-319-2118 Senator Cathleen Galgiani, 916-651-4905 Assemblymember Jim Cooper, 916-319-2109 Le Ondra Clark Harvey, Chief Consultant, 916-319-3306 COMMENTS: Attached please find the Notice of Opposition for AB 2614 (Bonta) — Medical Cannabis: Out -of -State Convictions THIS TRANSMITTAL CONTAINS 3 PAGE(S), INCLUDING THIS COVER SHEET. forms\aafaxjen.doc CITY COUNCIL MARK CHANDLER, Mayor DOUG KUEHNE, Mayor Pro Tempore BOB JOHNSON JOANNE MOUNCE ALAN NAKANISHI CITY OF LODI CITY HALL, 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209) 333-6702 / FAX (209) 333-6807 www.lodi.gov citvclerk@Iodr.gov March 17, 2016 The Honorable Rob Bonta California State Assembly State Capitol — Room 6005 Sacramento, CA 95814 FAX: (916) 319-2118 RE: AB 2614 (Banta) Medical Cannabis: Out -of -State Convictions Notice of OPPOSITION STEPHEN SCHWABAUER City Manager JENNIFER M. FERRAIOLO City Clerk JANICE D. MAGDICH City Attorney Dear Assembly Member Bonta: The City of Lodi regrets to inform you of its strong opposition to AB 2614. AB 2614 would prohibit the denial of a state license for commercial cannabis activity if the denial is based solely on an out-of-state felony conviction that did not include a period of incarceration, so long as a local jurisdiction is aware of the conviction and is nonetheless willing to issue a local permit or other authorization. The suitability provisions for state licensure included in the Medical Marijuana Regulation and Safety Act (MMRSA) ensure that individuals seeking a state license for commercial cannabis activity represent law-abiding citizens whom our communities can trust to operate compliant medical cannabis business operations. The provisions were negotiated in good faith among a number of stakeholders over the course of 2015, culminating in language that protects public safety while acknowledging the legal challenges that cannabis industry operators have faced in the past. In addition to providing a means for an individual with a felony conviction to obtain a license, the language also provides complete discretion to the licensing authority by stating that the licensing authority may deny the application for licensure" if the applicant has been convicted of a substantially related offense. Any change to the existing statutory licensing provisions that would restrict the discretion of the relevant state agency in granting a license — particularly in regard to evaluating an applicant's criminal history — represents a dangerous, negative precedent in the form of a legislative attempt to encroach upon and micromanage what has until now been a purely executive function. There is no pressing need to change existing law in this area by crafting a weaker standard for state licensing for medical marijuana businesses than is applied to any other applicant for any other category of state licensure. This approach calls the legitimacy of the entire regulatory structure for medical marijuana into question, because it invites unnecessary and entirely avoidable hazards to public safety. Should AB 2614 become law, it is within the realm of plausibility that drug traffickers of far more dangerous controlled substances — who happen to have been convicted only once — could become licensed by the State of California. AB 2614 (Bonta) Medical Cannabis: Out -of -State Convictions — Notice of OPPOSITION Page Two This measure discards the fragile consensus on the issue of disqualifying felonies for state licensure that was achieved only after several weeks of bitter and contentious stakeholder meetings last year. At a minimum, it will damage the credibility of the entire regulatory structure from the viewpoint of cities and law enforcement groups who played a critical role in achieving last year's consensus. To re -open this issue now invites a resumption of last year's conflict, as it may well result in calls for even stricter criteria for licensing than that which exists in the MMRSA today. Finally, this bill runs the very substantial risk of provoking a negative reaction from federal law enforcement authorities, by weakening the criteria for state licensure in a way that makes it more difficult to ferret out potential bad actors. It invites more intense federal scrutiny, and may well pave the way to future federal enforcement efforts, which no one wants. For these reasons the City of Lodi must respectfully, but firmly, oppose AB 2614. Sincerely, „,4 Mark Chandler Mayor, City of Lodi MC/jmf cc: Senator Cathleen Galgiani, Fax: (916) 651-4905 Assemblymember Jim Cooper, Fax: (916) 319-2109 Le Ondra Clark Harvey, Chief Consultant, Assembly Business and Professions Committee, Fax: (916) 319-3306 Stephen Qualls, Regional Public Affairs Manager, sauallsaallcacities.org Meg Desmond, League of California Cities, mdesmond@cacities.orq