Budget Trailer Bill Unveiled

(Sacramento) Early Tuesday evening the Brown Administration unveiled the long awaited budget trailer bill. This legislation proposes one regulatory framework with parallel tracks for medical and adult use. 

The budget trailer bill can be found by clicking here

Our policy committee convened an informational call this evening to discuss the trailer bill and issued this statement: 

"Bridging the gap between the Medical Cannabis Regulatory and Safety Act (MCRSA) and the Adult Use of Marijuana Act (AUMA) is a challenging process of importance to stakeholders from many different perspectives. With this draft trailer bill the governor’s administration demonstrates a solid understanding of several key issues and has provided a more streamlined path forward for many businesses and local governments. This legislation will come as much needed relief for many who have been working hard to implement MCRSA and AUMA. 

The proposal balances several perspectives and considerations while honoring the decision made by the voters in 2016 with the passage of the AUMA. There are still several unanswered questions and we expect this legislation to continue to evolve in the coming weeks and months. We look forward to working with the administration, the legislature and stakeholders to improve and finalize this proposal before its passage this summer."


  • Environmental protections: Consistent with SB 837 from last year, this trailer bill puts the environment first. We are pleased to see the provisions from the 2016 budget process included in the consolidated regulatory framework.
  • Cultivation limits: The proposal keeps the limitations established by MCRSA with unlimited specialty and small cultivation licenses (Type 1 and 2) and limits for medium licenses (Type 3)  
  • State/ Local Licensing: The changes to the dual track licensure framework will provide opportunity for more applicants, especially in rural communities. The proposal establishes a streamlined CEQA process to encourage local governments to pass ordinances. 
  • Appellations: Appellations are mandatory (AUMA) and will be implemented by the CDFA (MCRSA). The trailer bill puts a timeline on this and ensures the program will be implemented by 2020. 
  • Testing standards: the trailer bill reduces the specificity on the micro biological contaminants and relies on the bureau to develop scientific standards rather than the overly prescriptive and problematic language in current law. 


  • Non Storefront language: Unfortunately, the trailer bill does not include language re: non storefront dispensaries.


  • Distribution: The proposal allows for any licensee (except testing labs, which must be independently owned) to hold a distribution license. 

Priority next steps:

  • Seek the inclusion of language related to non storefront dispensary licenses
  • Continue analysis and review on our Policy Committee Call on April 11 

If you have questions or comments please email: policy@cagrowers.org.