Bill Text: CA AB34 | 2015-2016 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Medical cannabis.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Failed) 2016-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB34 Detail]
Download: California-2015-AB34-Amended.html
Bill Title: Medical cannabis.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Failed) 2016-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB34 Detail]
Download: California-2015-AB34-Amended.html
BILL NUMBER: AB 34 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Member Bonta
DECEMBER 1, 2014
An act to amend Sections 2220.05, 2242, and 2264 of, and to
add Chapter 18 (commencing with Section 26000) to Division 9 of, the
Business and Professions Code, to add Section 23028 to the Government
Code, to amend Section 11362.775 of the Health and Safety Code, and
to amend Section 1155.7 of, and to add Sections 1158.5 and 3094 to,
the Labor Code , relating to medical
cannabis. cannabis, and making an appropriation
therefor .
LEGISLATIVE COUNSEL'S DIGEST
AB 34, as amended, Bonta. Medical cannabis: state
regulation. cannabis regulation and enforcement.
(1) 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, commonly referred to as
the Medical Marijuana Program Act (MMPA), requires the establishment
of a program for the issuance of identification cards to qualified
patients so that they may use marijuana for medical purposes without
arrest or prosecution under specified state law, and requires the
establishment of guidelines for the lawful cultivation of marijuana
grown for medical use.
This bill would enact the Medical Cannabis Regulation and Control
Act and would establish the Division of Medical Cannabis Regulation
and Enforcement within the Department of Alcoholic Beverage Control.
This bill would, 180 days after the division posts a specified
notice on its Internet Web site, make those provisions of the MMPA
that prohibit prosecution of qualified patients, persons with valid
identification cards, and designated primary caregivers who associate
in California, collectively or cooperatively, to cultivate marijuana
for medical purposes, inapplicable to licensees. The bill would,
thereafter, permit a dispensary to provide patients with medical
marijuana and medical marijuana products obtained only from persons
licensed under this bill.
This bill would require the division to license persons to engage
in the various aspects of commercial cannabis activity, as defined.
The bill would designate as peace officers the Director of the
Department of Alcoholic Beverage Control and persons employed by the
division to administer and enforce its provisions. The bill would
prescribe requirements for the issuance, renewal, suspension, and
revocation of a mandatory commercial license and would authorize the
assessment of related fees.
This bill would not preclude a city or county from adopting local
ordinances, consistent with this bill, that regulate the location,
operation, or establishment of a licensee. The bill would require
state agencies to collaborate with local agencies, and would require
local agencies to, within the scope of their jurisdiction, assist
state agencies in the enforcement of this chapter. By imposing these
enforcement duties on local agencies, this bill would impose a
state-mandated local program.
This bill would establish the Medical Marijuana Regulation Fund
with separate accounts for fees and for penalties, and would require
deposit of fees and penalties into their respective accounts within
the fund. The bill would continuously appropriate fees deposited into
the fund to the division for the purposes of administering the
program.
This bill would authorize the division to establish a regulation
and enforcement assistance grant program and would authorize the
Department of Transportation to conduct research, and develop
protocols, regarding determining whether a driver is operating a
vehicle under the influence of marijuana to assist law enforcement
agencies. The bill would make the fines and penalties deposited into
the fund available, upon appropriation by the Legislature, for
funding these programs.
This bill would require the division to, as soon as practicable,
adopt emergency regulations for the issuance of provisional licenses
for persons who within the 12-month period preceding January 1, 2016,
were engaged in medical cannabis activities, as prescribed, and
would require the division to begin accepting applications for
provisional licenses commencing January 1, 2016.
This bill would require the division to adopt regulations
necessary for the implementation and enforcement of this bill in
consultation with prescribed state agencies relating to
environmental, agricultural, consumer protection, worker safety, and
food and product safety requirements. The bill would authorize the
division to enter into interagency agreements to pay, from fees
deposited into the fund, the associated costs incurred by these state
agencies.
This bill would establish a cannabis employee certification,
training, and apprenticeship program. The bill would require the
Division of Labor Standards Enforcement to maintain and enforce
minimum standards of competency and training and to certify cannabis
employees. The bill would require the Division of Labor Standards
Enforcement to establish a cannabis curriculum certification
committee to establish educational curriculum standards and to
oversee educational providers of cannabis curriculum.
This bill would require a licensee to keep various records in
connections with commercial cannabis activities and would prescribe
requirements for making records available to the division and any
state or local agency. The bill would exclude certain patient and
caregiver information from disclosure to the public. With regard to
limitations contained in this bill of the public's right to access
certain patient information, the bill would make findings for the
purposes of Section 3 of Article I of the California Constitution,
regarding the interest to be protected and the need for protecting
that interest.
This bill would declare that it does not apply to, or diminish the
protections granted to, a patient or primary caregiver acting
pursuant to the Compassionate Use Act of 1996 and would exempt these
parties from the application of the act.
This bill would declare that the actions of a licensee or
provisional licensee, its employees, and its agents that are within
the scope of a valid license are not unlawful under state law, as
specified. The bill would provide similar state law immunity for a
property owner who allows his or her property to be used by a
licensee or provisional licensee.
This bill would require the division to work in conjunction with
law enforcement entities throughout the state to implement and
enforce the rules and regulations regarding medical cannabis and to
take appropriate action against businesses and individuals that fail
to comply with the law.
This bill would authorize the director of the division, and
prescribed local entities, to bring an action to enjoin violations.
The bill would require the division to establish a digital database
and to allow on its Internet Web site to permit state and local law
enforcement agencies to verify licenses.
This bill would make certain violations of its provisions a crime,
thereby imposing a state-mandated local program.
(2) Existing law, the Medical Practice Act, establishes the
Medical Board of California and sets forth its powers and duties,
including, but not limited to the licensing and regulation of
physicians and surgeons. Existing law sets forth the conduct that
would constitute unprofessional conduct for a physician and surgeon,
including, but not limited to, prescribing certain drugs without an
appropriate examination or medical indication. Existing law generally
makes a violation of these provisions a misdemeanor.
This bill would specify that recommending marijuana to patients
without a good faith examination and medical reason or recommending
marijuana for nonmedical purposes is unprofessional conduct.
This bill would provide that specified acts of recommending
marijuana without a good faith examination are among the types of
cases that should be given priority for investigation and prosecution
by the Medical Board of California, as described above. The bill
would deem as unprofessional conduct a physician and surgeon being
employed by, or entering into an agreement with, a medical cannabis
licensee to provide recommendations for medical marijuana.
By broadening the definition of a crime, the bill would impose a
state-mandated local program.
(3) Existing law authorizes the board of supervisors of a county
and the governing body of a city to impose various taxes, including a
transactions and use tax at a rate of 0.25%, or a multiple thereof,
if approved by the required vote of the board or governing body and
the required vote of qualified voters, and limits the combined rate
of transactions and use taxes within a city or county to 2%.
This bill would authorize the board of supervisors of a county to
impose, by ordinance, a tax on the privilege of cultivating,
dispensing, producing, processing, preparing, storing, providing,
donating, selling, or distributing cannabis or cannabis products,
including a transactions and use tax at any rate specified by the
board. The bill would authorize the tax to be imposed for either
general or specific governmental purposes. The bill would require a
tax imposed pursuant to this authority to be subject to any
applicable voter approval requirement.
(4) This bill would specify that its provisions are severable.
(5) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that with regard to certain mandates no
reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above.
Existing law, the Compassionate Use Act of 1996, an initiative
measure enacted by the approval of Proposition 215 at the November 6,
1996, statewide general election, authorizes the use of marijuana
for medical purposes. Existing law enacted by the Legislature,
commonly referred to as the Medical Marijuana Program Act, requires
the establishment of a program for the issuance of identification
cards to qualified patients so that they may lawfully use marijuana
for medical purposes, and requires the establishment of guidelines
for the lawful cultivation of marijuana grown for medical use.
This bill would declare the intent of the Legislature to enact
legislation that would establish a comprehensive and uniform state
regulatory structure to govern the cultivation, processing, testing,
and distribution of medical cannabis.
Vote: majority. Appropriation: no yes
. Fiscal committee: no yes .
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all
of the following:
(a) The people of California enacted the Compassionate Use Act of
1996 to ensure that seriously ill Californians have access to
marijuana for medical purposes. The Compassionate Use Act of 1996
urged the state and federal governments to implement a plan to
provide for the safe and affordable distribution of medical marijuana
to all patients in medical need of the drug.
(b) Under federal law, marijuana is a Schedule 1 drug. Its
placement in that schedule is based upon a finding that marijuana has
no currently accepted medical use. That finding, if correct at the
time it was made, is no longer accurate. California, exercising its
traditional power to regulate the practice of medicine, has
determined that marijuana has a significant role to play.
(c) California, acting alone, is powerless to change federal law
and to correct this misunderstanding in federal law about the role
that marijuana can and does play in the practice of medicine.
However, federal enforcement authorities have recognized that in
states that have authorized marijuana use and have enacted strong and
effective regulatory and enforcement systems to control the
cultivation, distribution, sale, and possession of marijuana, conduct
in compliance with those regulatory and enforcement systems is less
likely to threaten federal priorities and, thus, less likely to
require federal enforcement intervention (See: Memorandum For All
United States Attorneys--Guidance Regarding Marijuana Enforcement, by
James M. Cole, Deputy Attorney General, August 29, 2013).
(d) The purpose of this act is to establish for California a
robust medical cannabis regulatory and enforcement system to ensure
that conduct in compliance with California's medical marijuana laws
does not threaten the federal priorities as set forth in the James M.
Cole memorandum, and therefore, does not require federal enforcement
intervention.
SEC. 2. Section 2220.05 of the Business
and Professions Code is amended to read:
2220.05. (a) In order to ensure that its resources are maximized
for the protection of the public, the Medical Board of California
shall prioritize its investigative and prosecutorial resources to
ensure that physicians and surgeons representing the greatest threat
of harm are identified and disciplined expeditiously. Cases involving
any of the following allegations shall be handled on a priority
basis, as follows, with the highest priority being given to cases in
the first paragraph:
(1) Gross negligence, incompetence, or repeated negligent acts
that involve death or serious bodily injury to one or more patients,
such that the physician and surgeon represents a danger to the
public.
(2) Drug or alcohol abuse by a physician and surgeon involving
death or serious bodily injury to a patient.
(3) Repeated acts of clearly excessive prescribing, furnishing, or
administering of controlled substances, or repeated acts of
prescribing, dispensing, or furnishing of controlled
substances substances, or recommending marijuana to
patients for medical purposes, without a good faith prior
examination of the patient and medical reason therefor. However, in
no event shall a physician and surgeon prescribing, furnishing, or
administering controlled substances for intractable pain consistent
with lawful prescribing, including, but not limited to, Sections 725,
2241.5, and 2241.6 of this code and Sections 11159.2 and 124961 of
the Health and Safety Code, be prosecuted for excessive prescribing
and prompt review of the applicability of these provisions shall be
made in any complaint that may implicate these provisions.
(4) Sexual misconduct with one or more patients during a course of
treatment or an examination.
(5) Practicing medicine while under the influence of drugs or
alcohol.
(b) The board may by regulation prioritize cases involving an
allegation of conduct that is not described in subdivision (a). Those
cases prioritized by regulation shall not be assigned a priority
equal to or higher than the priorities established in subdivision
(a).
(c) The Medical Board of California shall indicate in its annual
report mandated by Section 2312 the number of temporary restraining
orders, interim suspension orders, and disciplinary actions that are
taken in each priority category specified in subdivisions (a) and
(b).
SEC. 3. Section 2242 of the Business
and Professions Code is amended to read:
2242. (a) Prescribing, dispensing, or furnishing dangerous drugs
as defined in Section 4022 without an appropriate prior examination
and a medical indication, constitutes unprofessional conduct.
Prescribing or recommending marijuana to a patient for a medical
purpose without an appropriate in-person prior examination and a
medical indication, or recommending marijuana for a nonmedical
purpose, constitutes unprofessional conduct.
(b) No licensee shall be found to have committed unprofessional
conduct within the meaning of this section if, at the time the drugs
were prescribed, dispensed, or furnished, any of the following
applies:
(1) The licensee was a designated physician and surgeon or
podiatrist serving in the absence of the patient's physician and
surgeon or podiatrist, as the case may be, and if the drugs were
prescribed, dispensed, or furnished only as necessary to maintain the
patient until the return of his or her practitioner, but in any case
no longer than 72 hours.
(2) The licensee transmitted the order for the drugs to a
registered nurse or to a licensed vocational nurse in an inpatient
facility, and if both of the following conditions exist:
(A) The practitioner had consulted with the registered nurse or
licensed vocational nurse who had reviewed the patient's records.
(B) The practitioner was designated as the practitioner to serve
in the absence of the patient's physician and surgeon or podiatrist,
as the case may be.
(3) The licensee was a designated practitioner serving in the
absence of the patient's physician and surgeon or podiatrist, as the
case may be, and was in possession of or had utilized the patient's
records and ordered the renewal of a medically indicated prescription
for an amount not exceeding the original prescription in strength or
amount or for more than one refill.
(4) The licensee was acting in accordance with Section 120582 of
the Health and Safety Code.
SEC. 4. Section 2264 of the Business
and Professions Code is amended to read:
2264. The employing, directly or indirectly, the aiding, or the
abetting of any unlicensed person or any suspended, revoked, or
unlicensed practitioner to engage in the practice of medicine or any
other mode of treating the sick or afflicted which requires a license
to practice constitutes unprofessional conduct. Employment by,
or other agreement with, a mandatory commercial licensee acting
pursuant to the Medical Cannabis Regulation and Control Act or a
dispensary to provide recommendations for medical marijuana
constitutes unprofessional conduct.
SEC. 5. Chapter 18 (commencing with Section 26000)
is added to Division 9 of the Business and Professions
Code , to read:
CHAPTER 18. MEDICAL CANNABIS REGULATION AND CONTROL
Article 1. General Provisions
26000. (a) This chapter shall be known, and may be cited, as the
Medical Cannabis Regulation and Control Act.
(b) It is the intent of the Legislature in enacting this chapter
to provide for the statewide regulation of the commercial cannabis
activity and the enforcement of laws relating to commercial cannabis
activities. This chapter is an exercise of the police powers of the
state for the protection of the safety, welfare, health, peace, and
morals of the people of the state.
26001. Without limiting the authority of a city or county
pursuant to Section 7 of Article XI of the California Constitution,
or any other provision of law, and subject to that authority, the
state shall have the exclusive right and power to regulate and
license persons for the cultivation, manufacture, transportation,
sale, and other related activities regarding medical cannabis within
the state. In the exercise of these rights and powers, the state and
each of its agencies are hereby deemed not to be engaged in
activities requiring licensure under this chapter.
26002. For the purpose of this chapter:
(a) "Department" means the Department of Alcoholic Beverage
Control.
(b) "Director" means the Director of the Department of Alcoholic
Beverage Control, unless the context otherwise clearly indicates.
(c) "Division" means the Division of Medical Cannabis Regulation
and Enforcement within the department.
(d) "Cannabis" means all parts of the plant Cannabis sativa,
cannabis indica, or cannabis ruderalis, whether growing or not; the
seeds thereof; the resin, whether crude or purified, extracted from
any part of the plant; and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds, or
resin. It does not include the mature stalks of the plant, fiber
produced from the stalks, oil or cake made from the seeds of the
plant, any other compound, manufacture, salt, derivative, mixture, or
preparation of the mature stalks (except the resin extracted
therefrom), fiber, oil, or cake, or the sterilized seed of the plant
which is incapable of germination. "Cannabis" also means marijuana as
defined by Section 11018 of the Health and Safety Code as enacted by
Chapter 1407 of the Statutes of 1972.
(e) "Commercial cannabis activity" means any cultivation,
possession, manufacture, processing, storing, laboratory testing,
labeling, transporting, distribution, or sale of cannabis or cannabis
product, except as set forth in subdivision (b) of Section 26052.
(f) "Medical cannabis product," "medical marijuana product" or
"cannabis product" means any product containing cannabis, including,
but not limited to concentrates and extractions intended to be sold
for use by medical marijuana patients in California pursuant to the
Compassionate Use Act of 1996 (Proposition 215).
(g) "Manufactured cannabis" means raw marijuana that has undergone
a process whereby the raw agricultural product has been transformed
into a concentrate, an edible product, or a topical product.
(h) "Cannabis concentrate" means manufactured cannabis that has
undergone a process to concentrate the THC, active ingredient,
thereby increasing the product's potency.
(i) "Terahydrocannabinol" or "THC" means a crystalline compound
that is the physiologically active ingredient of cannabis.
(j) "Edible cannabis product" means manufactured cannabis that is
intended to be used, in whole or in part, for human consumption,
including, but not limited to, chewing gum.
(k) "Topical cannabis" means manufactured product intended for
external use.
(l) "Identification program" means the universal identification
certificate program for licensees.
(m) "Mandatory commercial license" or "license" means a mandatory
commercial license issued pursuant to Article 3 (commencing with
Section 26040).
(n) "licensee" means any person licensed under this chapter to
engage in commercial cannabis activity related to medical cannabis as
set forth in this chapter.
(o) "Dispensary" means a licensee that dispenses cannabis or
medical cannabis products.
(p) "Testing and labeling" means a labeling and quality assurance
plan that addresses all of the following:
(1) Potency.
(2) Chemical residue.
(3) Microbiological contaminants.
(4) Handling, care, and storage.
(5) Date and location of cultivation, processing, and
manufacturing.
(q) "Fund" means the Medical Cannabis Control Fund established
pursuant to Section 26028.
(r) "Person" means any individual, firm, partnership, joint
venture, association, corporation, limited liability company, estate,
trust, business trust, receiver, syndicate, or any other group or
combination acting as a unit and includes the plural as well as the
singular number.
26010. This chapter does not, nor does Article 2 (commencing with
Section 11357) and Article 2.5 (commencing with Section 11362.7) of
Chapter 6 of Division 10 of the Health and Safety Code, prevent a
city or county from doing any of the following:
(a) Adopting local ordinances consistent with this chapter that
regulate the location, operation, or establishment of a licensee or
any person that cultivates, processes, possesses, stores,
manufactures, tests, transports, distributes, or sells medical
cannabis.
(b) The civil or criminal enforcement of the ordinances described
in subdivision (a).
(c) Establishing a fee or tax for the operation of a licensee
within its jurisdiction.
(d) Enacting and enforcing other laws or ordinances pursuant to
the authority granted by Section 7 of Article XI of the California
Constitution.
Article 2. Administration
26020. (a) The Division of Medical Cannabis Regulation and
Enforcement is hereby established within the Department of Alcoholic
Beverage Control. The division shall be administered by a person who
is appointed by the director. The division shall administer this
chapter.
(b) No person shall engage in commercial cannabis activity unless
licensed by the division under this chapter. The division shall issue
licenses to applicants to engage in commercial cannabis activity
pursuant to this chapter.
(c) The division shall adopt regulations as needed to implement
that licensing program as set forth in Article 3 (commencing with
Section 26040). The regulations shall, in addition, do all of the
following:
(1) Establish a scale of application, licensing, and renewal fees,
based upon the cost of enforcing this chapter, as follows:
(A) The division shall charge each applicant for licensure or
renewal an application or renewal fee that shall be calculated to
cover the costs of processing the application or renewal. This fee
may vary depending upon the varying costs associated with approving
the application or renewal related to the varying activities covered
by the license, but shall not exceed ___dollars ($____) for a initial
application, and ____dollars ($____) for a renewal application.
(B) Upon the issuance of a license, the division shall charge each
licensee a licensure fee. The licensure fee shall be calculated to
cover the costs of administering this chapter, other than the costs
of processing applications. The licensure fee may vary depending upon
the varying costs associated with administering the various
regulatory requirements of this chapter as they relate to the nature
and scope of the different licensure activities, but shall not be
less than ____ dollars ($____), nor more than ____ dollars ($____).
(C) The total fees assessed pursuant to this chapter, including,
but not limited to, provisional license fees set forth in Section
26054, shall be set in at an amount that will fairly and
proportionately generate sufficient total revenue to fully cover the
total costs of administering this chapter, including, but not limited
to, costs set forth in Section 26023.
(2) Establish procedures for approval or denial of applications
for licensure for each and every aspect of commercial cannabis
activity, including, but not limited to, cultivation, possession,
manufacture, processing, storing, laboratory testing, labeling,
transporting, distribution, and sale of cannabis.
(3) Establish applicant qualifications.
(4) Establish licensee employee qualifications, including, but not
limited to, training and screening requirements.
(5) Establish licensee security requirements, including, but not
limited to, procedures to limit access to facilities and to prevent
diversion of product to nonmedical use.
(6) Establish procedures and protocols for identifying, managing,
and disposing of contaminated, adulterated, deteriorated or excess
product.
(7) Establish advertising, marketing, signage, and labeling
requirements and restrictions.
(8) Establish procedures for the suspension, revocation, or
surrender of a license and establishing related fines and penalties
to be assessed against licensees for violations of this chapter.
(9) Establish procedures for the oversight of the fund established
pursuant to Section 26028.
26021. (a) The division, in consultation with the Division of
Labor Standards Enforcement, shall adopt regulations establishing
worker safety standards in cultivation sites, manufacturing
facilities, and retail dispensary sites.
(b) The division, in consultation with the Department of Water
Resources, shall adopt regulations to ensure that commercial cannabis
activity licensed pursuant to this chapter does not threaten the
state's clean water and environment and is otherwise in compliance
with the California Environmental Quality Act (CEQA) (Division 13
(commencing with Section 21000)) of the Public Resources Code).
(c) The division, on consultation with the Department of Food and
Agriculture, shall adopt regulations ensuring that the cultivation of
cannabis under this chapter is in compliance with all requirements
applicable to the production of a food crop, including, but not
limited to, all of the following:
(1) Regulations regarding the verification of cannabis stock for
the purposes of cultivation.
(2) Cultivation protocols ensuring the quality, abundance, and
safety of the cannabis crop, including both indoor and outdoor
cultivation standards and regulations regarding carbon offsets for
indoor cultivation.
(3) Environmentally sound agricultural practices, including all of
the following:
(A) A requirement that any environmental damage be addressed by
the relevant state agency, including but not limited to, the State
Board of Forestry and Fire Protection, the Department of Fish and
Wildlife, Regional Water Quality Control Boards, the Department of
the California Highway Patrol, the Department of Justice, CalFire.
(B) A provision authorizing revocation of a licensee if the state
determines that the conduct of the licensee has inflicted significant
damage to the environment.
(C) Standards controlling the application of pesticides. These
standards shall, at a minimum, require that if pesticides are to be
used, the use comply with standards analogous to Division 6
(commencing with Section 11401) of the Food and Agricultural Code and
its implementing regulations.
26021.5. (a) State agencies shall collaborate with local
agencies, and local agencies shall, within the scope of their
jurisdiction, assist state agencies in the enforcement of this
chapter.
(b) No marijuana shall be cultivated on public lands pursuant to
this chapter.
26022. The division, in consultation with the State Department of
Public Health, shall adopt regulations to do all of the following:
(a) Establish labeling and packaging standards and requirements,
including, but shall not be limited to, all of the following:
(1) Cultivation labeling requirements requiring labeling to
include, at a minimum, THC levels, cannabinoid profile, and active
ingredients.
(2) Edible cannabis product labeling and packaging standards,
including, but not limited to, all of the following:
(A) A requirement that the label include the manufacturing date,
the active ingredients, net weight, cannabinoid profile, nutritional
facts, dosage in total milligrams of THC delivered, and any potential
allergens.
(B) A requirement that the label include the warnings: "KEEP OUT
OF REACH OF CHILDREN," and "FOR MEDICAL USE ONLY."
(C) A requirement that packaging contain a clear indication in
bold font that the package contains medical cannabis, and that the
package not be designed in a manner that attracts minors.
(D) Standards for labeling food that clearly distinguish edible
cannabis products from non-cannabis products.
(b) Establishing consumer protection, food and product safety
requirements, including, but not limited to, all of the following:
(1) Adverse event reporting and product recall systems that
include batch, lot, or control number tracking, the requirement that
employees who manufacture or otherwise handle edible medical
marijuana products thoroughly wash their hands before commencing
production and before handling finished edible medical marijuana
products.
(2) Standards for tetrahydrocannabinol (THC) and Cannabidiol (CBD)
dosage in edible products.
(3) Sanitation standards analogous to the California Retail Food
Code (Part 7 (commencing with Section 113700) of Division 104 of the
Health and Safety Code) for food preparation, storage, handling, and
sale of medical cannabis products.
(4) A requirement that edible medical cannabis products be limited
to foods that are nonpotentially hazardous food as set forth in
Section 114365.5 of the Health and Safety Code.
(5) A requirement that facilities in which edible medical cannabis
products are prepared shall be constructed in accordance with
building standards and health and safety standards applicable to a
food production facility, including the requirement that edible
products distributed or sold by dispensaries not be produced or
stored in private homes.
(6) Weighing or measuring standards, including, but not limited to
the requirement that devices used in connection with the sale or
distribution of cannabis meet standards analogous to Division 5
(commencing with Section 12001) of the Business and Professions Code.
(7) Standards controlling the application of pesticides. These
standards shall, at a minimum, require that if pesticides are to be
used, the use comply with standards analogous to Division 6
(commencing with Section 11401) of the Food and Agricultural Code and
its implementing regulations.
(8) A requirement that all edible medical marijuana products shall
individually wrapped at the original point of preparation.
(c) Establishing testing requirements for all medical cannabis
products, including edible cannabis products and those used, or
intended for use, via inhalation, including, but not limited to:
(1) Testing for the active cannibinoid profile, constituent
elements, and microbiological, bacterial, pathogenic yeast and mold
counts.
(2) Testing standards by which to test and measure the potency of
medical marijuana products. The division shall also determine maximum
standards in the potency of medical marijuana products.
(3) A requirement that local county public health departments
conduct product safety testing annually to ensure the quality of the
cannabis product.
(4) A requirement that quality assurance tests be conducted at a
testing laboratory certified by the State Department of Public
Health.
(5) A requirement for random quality assurance testing by
certified testing laboratories. Testing laboratories are exempt from
licensure under this chapter. A testing laboratory shall not receive
medical cannabis products except through the division or a medical
cannabis licensee. Individual medical patients may deliver samples
for testing with a licensee. The licensee shall verify the patient's
medical recommendation and may then transfer the sample to a
certified laboratory for testing.
26023. The regulations shall set forth the inspection and
enforcement responsibilities of the Division of Labor Standards
Enforcement, the Department of Water Resources, the State Department
of Public Health, and the Department of Food and Agriculture
associated with this chapter.
26023.5. (a) Without limiting the authority of a city or a county
pursuant to Section 7 of Article XI of the California Constitution
or any other law, the division shall adopt regulations regarding the
minimum standards for the operation of dispensaries. The regulations
shall establish all of the following:
(1) Standards for labeling of products, including the name of
the mandatory commercial licensee from which the product was
obtained, and a requirement that dispensaries provide patients with
detailed written information about the contents of the cannabis and
medical cannabis products they obtain.
(2) Requirements for inventory control and reporting that require
all dispensaries to be able to demonstrate the present location,
amounts, and descriptions of all medical cannabis products from the
time of delivery to the dispensary until purchase by a qualified
patient or primary caregiver.
(3) Minimum educational and testing requirements for licensee
staff, including, but not limited to, background checks and a
requirement that every dispensary maintain dedicated, licensed
security staff both inside and outside the dispensary.
(4) Minimum standards governing signage and advertising for
dispensaries.
(b) Commencing 180 days after the division begins issuing
provisional licenses, a dispensary shall provide patients medical
marijuana and medical marijuana products obtained only from persons
licensed under this chapter.
(c) Out-of-state medical cannabis patients with current, valid
verification that they are allowed to receive medical cannabis
treatment within their home state may receive medical cannabis
treatment, including the ability to purchase medical cannabis from
licensed dispensaries within this state upon verification of the
documents by the dispensary, pursuant to protocols established by the
division.
26024. (a) The division may assist state taxation authorities in
the development of uniform policies for the state taxation of
mandatory commercial licensees.
(b) The division shall assist the Division of Occupational Safety
and Health in the Department of Industrial Relations in the
development of industry-specific regulations related to commercial
medical cannabis activities.
26028. (a) The Medical Cannabis Control Fund is hereby
established within the State Treasury. Notwithstanding Section
16305.7 of the Government Code, the fund shall include any interest
and dividends earned on the money in the fund.
(b) All fees collected pursuant to this chapter shall be deposited
into the fees account, which is hereby established within the fund.
Notwithstanding Section 13340 of the Government Code, all moneys
within the fees account are hereby continuously appropriated, without
regard to fiscal year, to the division solely for the purposes of
fully funding and administering this chapter, including, but not
limited to, the costs incurred by the division for its administrative
expenses and costs set forth in Section 26023.
(c) All moneys collected pursuant to this chapter as a result of
fines or penalties imposed under this chapter shall be deposited
directly into the fines and penalties account, which is hereby
established within the fund, and shall be available, upon
appropriation by the Legislature, for the purposes of funding the
enforcement grant program pursuant to subdivision (d).
(d) The division shall establish and administer a grant program to
allocate moneys from the fines and penalties account to state and
local entities for the purpose of assisting with medical cannabis
regulation and the enforcement of this chapter and other state and
local laws applicable to licensees. The costs of the grant program
under this subdivision shall, upon appropriation by the Legislature,
be paid for with moneys in the fines and penalties account.
(e) The Department of Transportation shall conduct research
regarding determining whether a driver is operating a vehicle under
the influence of marijuana, and shall develop protocols setting forth
best practices to assist law enforcement agencies. The costs of the
Department of Transportation under this subdivision shall, upon
appropriation by the Legislature, be paid for with moneys in the
fines and penalties account.
(f) The total fees charged pursuant to this chapter shall be
sufficient to pay the costs associated with the administrative and
enforcement duties of the division and of the associated state
agencies in administering this chapter.
(g) The division shall enter into an interagency agreement with
the Division of Labor Standards Enforcement, the Department of Water
Resources, the State Department of Public Health, and the Department
of Food and Agriculture setting forth the duties of those agencies
under this chapter and providing for reimbursement of associated
costs from revenues deposited into the fees account of the fund.
26030. (a) The director and the persons employed by the division
for the administration and enforcement of this chapter are peace
officers in the enforcement of the penal provisions of this chapter,
the rules of the division adopted under this chapter, and any other
penal provisions of law of this state prohibiting or regulating the
cultivation, processing, storing, manufacturing, testing,
transporting, or selling of medical cannabis, and these persons are
authorized, while acting as peace officers, to enforce any penal
provisions of state law while in the course of their employment.
(b) The director, the persons employed by the division for the
administration and enforcement of this chapter, peace officers listed
in Section 830.1 of the Penal Code, and those officers listed in
Section 830.6 of the Penal Code while acting in the course and scope
of their employment as peace officers may, in enforcing this chapter,
visit and inspect the premises of any licensee at any time during
which the licensee is acting pursuant to the mandatory commercial
license.
(c) Peace officers of the Department of the California Highway
Patrol, members of the University of California and California State
University police departments, and peace officers of the Department
of Parks and Recreation, as defined in subdivisions (a), (b), (c),
and (f) of Section 830.2 of the Penal Code, may, in enforcing this
chapter, visit and inspect the premises of any licensee at any time
during which the licensee is acting pursuant to the license.
26034. (a) Information identifying the names of patients, their
medical conditions, or the names of their primary caregivers received
and contained in records kept by the division for the purposes of
administering this chapter are confidential and exempt from the
California Public Records Act (Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code) and are not
subject to disclosure to any individual or private entity, except as
necessary for authorized employees of the State of California to
perform official duties pursuant to this chapter:
(b) Nothing in this section precludes the following:
(1) Division employees notifying state or local agencies about
information submitted to the division that the employee suspects is
falsified or fraudulent.
(2) Notifications from the division to state or local agencies
about apparent violations of this chapter.
(3) Verification of requests by state or local law enforcement
agencies to confirm licenses and certificates issued by the division
or other state agency.
(4) Provision of information requested pursuant to a court order
or subpoena issued by a court or an administrative agency or local
governing body authorized by law to issue subpoenas.
(c) Information shall not be disclosed beyond what is necessary to
achieve the goals of a specific investigation or the parameters of a
specific court order or subpoena.
26035. Nothing in this chapter is intended to require an employer
to permit or accommodate the use, consumption, possession, transfer,
display, transportation, sale or growth or cannabis in the workplace
or to affect the ability of employers to have policies restricting
the use of cannabis by employees.
Article 3. Mandatory Commercial License
26040. (a) The division shall adopt regulations establishing a
tiered licensing scheme to accommodate the different levels and types
of activity to be licensed. The regulations shall set forth the
application and licensure process, including, but not limited to, all
of the following:
(1) A description of the various specific forms of commercial
cannabis activity to be authorized by the various types of licenses.
(2) The establishment of license application, issuance, renewal,
suspension, surrender, and revocation procedures for the various
types of licenses to be issued.
(3) The procedures for the issuance, renewal, suspension, and
revocation of mandatory commercial licenses.
(4) Time periods, not to exceed 90 days, by which the division
shall approve or deny an application for mandatory commercial
licensure.
(5) Qualifications for licensees.
(6) Security requirements, including, but not limited to,
procedures for limiting access to facilities and for the screening of
employees.
(b) Each mandatory commercial license application approved by the
division pursuant to this chapter is separate and distinct.
(c) A mandatory commercial license application approved by the
division pursuant to this chapter shall be valid for a period not to
exceed one year from the date of approval unless revoked or suspended
earlier than that date pursuant to this chapter or the rules or
regulations adopted pursuant to this chapter
26041. A license application or renewal shall not be approved if
the division determines any of the following:
(a) The applicant fails to meet the requirements of this chapter
or any regulation adopted pursuant to this chapter, or any applicable
city or county ordinance or regulation.
(b) The applicant, or any of its officers, directors, or owners,
is under 21 years of age.
(c) The applicant has knowingly answered a question or request for
information falsely on the application form or failed to provide
information requested.
(d) The applicant, or any of its officers, directors, or owners
has been convicted in the previous five years of a violent felony, as
specified in subdivision (c) of Section 667.5 of the Penal Code, a
serious felony as specified in subdivision (c) of Section 1192.7 of
the Penal Code, a felony offense involving fraud or deceit, or any
other felony that, in the division's estimation, would impair the
applicant's ability to appropriately operate as a mandatory
commercial licensee.
(e) The applicant, or any of its officers, directors, or owners is
a licensed physician making patient recommendations for medical
cannabis.
(f) The applicant, or any of its officers, directors, or owners
has been sanctioned by the division, a city, or a county for
unlicensed commercial medical cannabis activities or has had a
license revoked under this chapter in the previous three years.
(g) For an applicant that will have more than 20 employees, the
applicant has entered into a labor peace agreement with a bona fide
labor organization that is actively engaged in representing or
attempting to represent the applicant's employees.
26042. The division shall establish a scale of application,
licensing, and renewal fees, based upon the cost of enforcing this
chapter, as follows:
(a) The division shall charge each applicant for licensure or
renewal an application or renewal fee that shall be calculated to
cover the costs of processing the application or renewal. This fee
may vary depending upon the varying costs associated with approving
the application or renewal related to the varying activities covered
by the license, but shall not exceed ____ dollars ($____) for a
initial application, and ____dollars ($____) for a renewal
application.
(b) Upon the issuance of a license, the division shall charge each
licensee a licensure fee. The licensure fee shall be calculated to
cover the costs of administering this chapter, other than the costs
of processing applications. The licensure fee may vary depending upon
the varying costs associated with administering the various
regulatory requirements of this chapter as they relate to the nature
and scope of the different licensure activities, but shall not be
less than ____ dollars ($____), nor more than ____ dollars ($____).
(c) The division shall establish appropriate fees as part of its
emergency regulations for the issuance of provisional licenses
adopted pursuant to Section 26043.
(d) The total fees assessed pursuant to this chapter, including,
but not limited to, provisional license fees set forth in Section
26054, shall be set in at an amount that will fairly and
proportionately generate sufficient total revenue to fully cover the
total costs of administering this chapter, including, but not limited
to, costs set forth in Section 26023.
26043. (a) The division shall adopt, as soon as practicable,
emergency regulations consistent with this chapter to allow a
qualified applicant for license to apply for and receive a
provisional licensed to engage in commercial cannabis activity so as
to ensure an adequate supply of medical cannabis upon full
implementation of this chapter as set forth in Section 26054.
26045. Every mandatory commercial license is renewable unless the
license has been revoked if the renewal application is submitted and
the fee for it is paid. A license that has been suspended, but not
revoked, may be renewed under this section, however, the act of
renewal shall not effect the suspension and the suspension shall
remain in effect upon renewal. All licenses expire at 12 midnight on
the last day of the month posted on the license. All licenses shall
be renewed as follows:
(a) The application to renew the license may be filed before the
license expires upon payment of the annual fee.
(b) For 60 days after the license expires, the license may be
renewed upon payment of the annual renewal fee plus a penalty fee
that shall be equal to 50 percent of the annual fee.
(c) Unless otherwise terminated, or unless renewed pursuant to
subdivision (a) or (b), a license that is in effect on the month
posted on the license continues in effect through 12 midnight of the
60th day following the month posted on the license, at which time it
is automatically canceled.
(d) A license that has been canceled pursuant to subdivision (c)
may be reinstated during the 30 days immediately following
cancellation upon payment by cashier's check or money order of the
annual renewal fee, plus a penalty fee that shall be equal to 100
percent of the annual fee. A license that has been canceled pursuant
to subdivision (c) and that has not been reinstated within 30 days
pursuant to this subdivision is automatically revoked on the 31st day
after the license has been canceled.
(e) A renewal application shall not be deemed filed within the
meaning of this section unless the document itself has been actually
delivered to, and the required renewal fee has been paid at, any
office of the division during office hours, or unless both the
document and fee have been filed and remitted pursuant to Section
11003 of the Government Code.
26046. (a) An application for a license shall include, but shall
not be limited to, all of the following:
(1) The legal name and proposed physical addresses of the
mandatory commercial licensee.
(2) The name, address, and date of birth of each principal officer
and board member.
(3) Operating and inventory control procedures to ensure security
and prevent diversion.
(4) Detailed operating procedures for the proposed facility, which
shall include, but not be limited to, provisions for facility and
operational security, prevention of diversion, employee screening,
storage of medical cannabis, personnel policies, and recordkeeping
procedures.
(5) A list of all persons or entities having an ownership interest
other than a security interest, lien, or encumbrance on any property
that will be used by the applicant.
(6) Evidence of the legal right to occupy and use an established
location, or an immunity from prosecution for that occupancy or use
pursuant to a local ordinance or ordinances, including, but not
limited to, Measure D, approved by the voters of the City of Los
Angeles at the May 21, 2013, general election.
(7) Documentation that the applicant will be in compliance with
all local ordinances and regulations, including, but not limited to,
an entity granted immunity under Measure D, approved by the voters of
the City of Los Angeles at the May 21, 2013, general election.
(8) Evidence that a minimum of 75 percent of the officers and
owners of the applicant organization are residents of the State of
California for at least three years.
(9) A statement signed by the applicant under penalty of perjury
that the information provided in the application is true.
(b) For applicants seeking a license to cultivate and process, the
application shall also include a detailed description of the
operating procedures for all of the following:
(1) Cultivation.
(2) Extraction and infusion methods.
(3) The transportation process.
(4) Inventory procedures.
(5) Quality control procedures.
26047. (a) Upon receipt of an application for a licensure and the
applicable fee, the division shall make a thorough investigation to
determine whether the applicant and the premises for which a license
is applied qualify for the license and whether this chapter has been
complied with, and shall investigate all matters connected therewith
that may affect the public welfare and morals.
(b) The division shall deny an application if either the applicant
or the premises for which a license is applied do not qualify for a
licensure under this chapter.
(c) The division may, at its discretion, issue a license to an
applicant who has obtained a certificate of rehabilitation pursuant
to Section 4852.13 of the Penal Code.
(d) The division may place reasonable conditions upon licensure if
grounds exist for denial of the license, and the division finds
those grounds may be removed by the imposition of those conditions.
However, the limitations set forth in paragraph (6) of subdivision
(b) of Section 26040 shall not been waived.
(e) The division shall deny the application for licensure or
renewal if any of the following conditions apply:
(1) Granting or continuation of a license would be contrary to the
public welfare or morals.
(2) The applicant holding or seeking a license has violated any
law prohibiting conduct involving moral turpitude.
(3) The applicant for has been previously convicted for drug
trafficking, a felony conviction for embezzlement, a felony
conviction involving fraud or deceit, or any violent or serious
felony conviction.
(4) Local agencies have notified the division and provided
evidence that a licensee or applicant within its jurisdiction is in
violation of local ordinances relating to marijuana activities.
(5) The application has failed to state with sufficient
specificity the jurisdiction in which the applicant proposes to
establish operations.
(6) Applicants shall be notified of a denied application in
writing via personal service or mail addressed to the address of the
applicant or licensee set forth in the application. The denial letter
shall contain the detailed reasons for which the application has
been denied. The applicant shall have the right to appeal the denial
and be given a hearing within 30 days of the appeal. On appeal, the
decision shall be upheld unless the applicant demonstrates that the
applicant is in fact eligible for licensure and the application is in
compliance with this chapter.
26048. (a) The division shall electronically submit to the
Department of Justice fingerprint images and related information for
all applicants for cultivation, dispensing, manufacturing, and
transportation licenses for the purpose of obtaining information as
to the existence and content of a record of state or federal
convictions and arrests, and information regarding whether the person
is free on bail, or on his or her own recognizance, pending trial or
appeal.
(b) The Department of Justice shall provide a response to the
division pursuant to paragraph (1) of subdivision (p) of Section
11105 of the Penal Code.
(c) The division shall request from the Department of Justice
subsequent notification service, as provided pursuant to Section
11105.2 of the Penal Code, for persons described in this section.
(d) The Department of Justice shall charge a fee sufficient to
cover the reasonable cost of processing the requests described in
this section.
26049. (a) The actions of a mandatory commercial licensee or
provisional licensee, its employees, and its agents, permitted
pursuant to a mandatory commercial license or provisional license
issued by the division or otherwise permitted by this chapter, that
are within the scope of the license issued pursuant to this chapter
and the regulations adopted pursuant to the authority granted by this
chapter, are not unlawful under state law or local ordinance
generally prohibiting marijuana related activity and shall not be an
offense subject to arrest, prosecution, or other sanction under state
law or local ordinance, or be subject to a civil fine or be a basis
for seizure or forfeiture of assets under law.
(b) The actions of a person who, in good faith and upon
investigation, allows his or her property to be used by a mandatory
commercial licensee or provisional licensee, its employees, and its
agents, as permitted pursuant to a mandatory commercial license or
provisional license issued by the division or otherwise permitted by
this chapter, are not unlawful under state law and shall not be an
offense subject to arrest, prosecution, or other sanction under state
law, or be subject to a civil fine or be a basis for seizure or
forfeiture of assets under state law.
(c) Conduct that is within the scope of a license issued pursuant
to this chapter but not fully in compliance with this chapter shall
be subject to the enforcement provisions of this chapter and shall
not be subject to the penal provisions generally prohibiting
marijuana related activity, unless and until the license is revoked.
(d) This section shall not be deemed to limit the authority or
remedies of a city or county under any provision of law, including,
without limitation, Section 26010 or 26060 of this code or Section 7
of Article XI of the California Constitution.
26050. (a) A licensee shall keep, at the licensed premises,
accurate records of the specific commercial cannabis activity
conducted by the licensee. The records shall include, at a minimum,
all of the following for each batch of product:
(1) The name and address of the supplier.
(2) The dates in which the product was received.
(3) The amounts, form, and batch and lot number.
(4) The location of the cultivation site.
(5) The name of the employee who received the product.
(6) Records demonstrating compliance by the licensee with state
and federal rules and regulations regarding reporting and taxation of
income received.
(b) The records shall be kept for a minimum of seven years.
(c) The division may make any examination of the books and records
of any licensee and may visit and inspect the premises of any
licensee that the division may deem necessary to perform its duties
under this chapter.
(d) If the licensee or any employee of the licensee refuses,
impedes, obstructs, or interferes with an inspection pursuant to this
chapter or local ordinance, or if the licensee fails to maintain or
provide the books and records required by this section, the license
may be summarily suspended and the division shall directly commence
proceedings for the revocation of the license in accordance with this
chapter.
(e) All cultivation, dispensing, and retail sales licensees shall
be subject to an annual audit by the State Auditor in order to ensure
proper documentation is kept at each site or facility.
26052. (a) This chapter shall not apply to, and shall have no
diminishing effect on, the rights and protections granted to a
patient or a primary caregiver pursuant to the Compassionate Use Act
of 1996.
(b) (1) A patient who cultivates, possesses, stores, manufactures,
or transports cannabis exclusively for his or her personal medical
use but who does not sell or distribute cannabis to any other person
is not, thereby, engaged in commercial cannabis activity and is,
therefore, exempt from the licensure requirements of this chapter.
(2) A primary caregiver who cultivates, possesses, stores,
manufactures, transports, donates or provides cannabis exclusively
for the personal medical purposes of a specified qualified patient
for whom he or she is the primary caregiver within the meaning of
Section 11362.7 of the Health and Safety Code but who does not
receive remuneration for these activities except for compensation in
full compliance with subdivision (c) of Section 11362.765 of the
Health and Safety Code is not, thereby, engaged in commercial
cannabis activity and is, therefore, exempt from the licensure
requirements of this chapter.
26054. (a) The division shall, as soon as practicable following
January 1, 2016, allow a qualified applicant for license to apply for
and receive a provisional licensed to engage in commercial cannabis
activity so as to ensure an adequate supply of medical cannabis upon
full implementation of this chapter.
(b) The division shall establish appropriate fees not to exceed
____ dollars ($____) for the issuance of a provisional license
pursuant to this chapter.
(c) The division shall accept applications for provisional
commercial licenses for medical cannabis activity as follows:
(1) The division shall request that every city or county provide
the division with a list of approved entities providing medical
cannabis to qualified patients and caregivers within the city or
county's jurisdiction, if any, the location at which the entity is
operating, and the names of the persons who operate the entity. If
the jurisdiction represents that the entity has been operating in
compliance with local laws and regulations, or has limited immunity
under local laws, including, but not limited to, Measure D, approved
by the voters of the City of Los Angeles at the May 21, 2013, general
election, the division shall issue a provisional license to the
entity until the time that the entity's application for mandatory
commercial license has been approved or denied under this chapter,
but no later than 90 days after the division begins accepting
applications for mandatory commercial licensure.
(2) The division shall issue a provisional license to individuals
and entities that the division determines were, during the 12 months
prior to January 1, 2016, regularly cultivating, processing,
manufacturing, transporting, or distributing medical cannabis
collectively or cooperatively in full compliance with paragraphs A
and B of Section IV of the Guidelines for Security and Non-Diversion
of Marijuana Grown for Medical Use, issued by the Department of
Justice in August 2008, and any applicable local ordinance, to
continue to do so until the licensee's application for mandatory
commercial licensure has been approved or denied under this chapter,
but no later than 90 days after the division begins accepting
applications for regular mandatory commercial licenses. The division
may consult with relevant local agencies in making a determination on
whether a provisional license applicant is in compliance with any
applicable ordinance.
(d) To qualify for a provisional mandatory commercial license,
applicants shall disclose to the division all of the following
information in writing:
(1) The names, addresses, and dates of birth of each principal
officer, owner, or board member.
(2) The common street address and assessor's parcel number of the
property at which the licensee conducts any activity under the
authority of the licensee.
(3) The common street address and assessor's parcel number of the
property at which any cultivation activity was or is to be conducted.
(4) For the 12 months prior to January 1, 2016, the quantity of
cannabis cultivated, processed, manufactured, tested, transported, or
sold at a location and the quantity expected to be cultivated,
processed, manufactured, tested, transported, or sold from January 1,
2016, to July 1, 2016, inclusive. The licensee shall make its
records of current activity and activity for the 12 months prior to
January 1, 2016, available to the division upon request.
(e) Upon receipt of the application materials and fee, the
division may issue a provisional license and send a proof of issuance
to the applicant, if the applicant has not committed any act or
crime constituting grounds for the denial of licensure.
(f) Notwithstanding any other provision of this section, the
division shall not issue a provisional license to any an individual
or entity, or for any a premises, against whom there are pending
state or local administrative or judicial proceedings or actions
initiated by a city, county, or city and county under any applicable
local ordinance or who has been determined through those proceedings
to have violated any local ordinance related to marijuana activity,
or that knowingly provides false or fraudulent information on an
application for licensure.
(g) Entities that are provided immunity under Measure D, approved
by the voters of the City of Los Angeles at the May 21, 2013, general
election, shall be considered the equivalent of entities that are
registered, permitted, or licensed as a medical marijuana business,
dispensary, or other entity involved in providing medical marijuana
to patients under a local ordinance and shall be considered in
compliance with a local ordinance for the purposes of the
implementation of this section.
(h) Provisional licensees shall comply with all standards and
requirements applicable to a licensee under this chapter, including,
but not limited to, the production, recordkeeping, security, and
transportation requirements and standards.
26055. (a) The division may adopt regulations to permit the
transfer of a license from a licensee to another person who
demonstrates to the division that he or she is eligible for licensure
under this chapter, if all of the following requirements are met:
(b) The division has determined that granting an additional
license of the type in question in the geographic region in question
may lead to the availability of product in excess of the amounts
needed to meet the medical need.
(c) The prospective recipient of the license complies with all of
the requirements of this chapter relating to a new application for
licensure, including, but not limited to, payment to the division of
a reasonable license transfer fee.
26057. The division shall make recommendations to the Legislature
pertaining to the establishment of an appeals and judicial review
process for persons aggrieved by a final decision of the division.
Article 4. Enforcement
26060. (a) The division shall work in conjunction with law
enforcement agencies for the purposes of implementing, administering,
and enforcing this chapter and the division's regulations and taking
appropriate action against licensees and others who fail to comply
with this chapter or the regulations adopted pursuant to this
chapter.
(b) Nothing in this chapter or in Article 2 (commencing with
Section 11357) or Article 2.5 (commencing with Section 11362.7) of
Chapter 6 of Division 10 of the Health and Safety Code, shall prevent
a city, county, or city and county from adopting or enforcing a
zoning ordinance or other law, ordinance, or regulation that
regulates the location, operation, or establishment of a licensee or
other person that engages in commercial cannabis activity.
26062. Except for a person identified in Section 26052, a person
shall not exercise the privilege or perform any act that a licensee
may exercise or perform under the authority of a license unless the
person is acting pursuant to a license, including, but not limited
to, a provisional license, issued pursuant to this chapter.
26063. (a) Any product containing cannabis that is distributed,
or offered for sale by a licensee shall comply with the testing,
labeling, and food safety requirements established pursuant to this
chapter.
(b) No person shall steal or fraudulently use a licensee's
identification certificate, or license or other licensee's
identification card or license issued by the division to acquire,
cultivate, process, manufacture, test, transport, produce, possess
for sale, sell, or distribute cannabis.
(c) No person shall counterfeit, tamper with, or fraudulently
produce an identification card or license status.
(d) Any person who violates this section, or Section 26062, is
guilty of a misdemeanor and shall be subject to the following
penalties:
(1) For the first offense, imprisonment in a county jail for no
more than ____months or a fine not to exceed ____dollars ($____), or
both.
(2) For a second or subsequent offense, imprisonment in a county
jail for no more than ____ or a fine not to exceed ____ dollars
($____), or both.
(e) Any person who is charged, prosecuted, or subjected to a civil
penalty under this chapter shall not also be charged or prosecuted
pursuant to the Health and Safety Code for conduct arising from the
same set of facts.
26064. Any person operating an unlicensed facility, building,
structure, or location where cannabis is being commercially
cultivated, processed, manufactured, tested, or possessed for sale in
violation of this chapter shall be subject to civil penalties of up
to ____ dollars ($____) for each violation, and the division may
order the destruction of any cannabis associated with that violation.
All civil fines collected pursuant to this section shall be
deposited into the fines and penalties account established pursuant
to Section 26028.
26066. (a) The director or any district attorney, county counsel,
city attorney, or city prosecutor may bring an action in the name of
the people of the State of California to enjoin a violation or the
threatened violation of any provision of this chapter, including, but
not limited to, a licensee's failure to correct objectionable
conditions following notice or as a result of any rule promulgated
pursuant to this chapter. The action shall be brought in the county
in which the violation occurred or is threatened to occur. Any
proceeding brought pursuant to this chapter shall conform to the
requirements of Chapter 3 (commencing with Section 525) of Title 7 of
Part 2 of the Code of Civil Procedure.
(b) A state or local law enforcement agency shall immediately
notify the division of any arrests made for violations over which the
division has jurisdiction which involve a licensee or licensed
premises. Notice shall be given within 10 days of the arrest. The
division shall promptly cause an investigation to be made as to
whether grounds exist for suspension or revocation of the license.
(c) This chapter shall not be construed to limit a law enforcement
agency's ability to investigate unlawful activity in relation to a
mandatory commercial licensee.
(d) The division shall keep a complete record of all entities
licensed pursuant to this chapter. This record shall be made
available on the division's Internet Web site so as to permit state
and local law enforcement to verify a mandatory commercial license.
(e) The department shall authorize the city, county, or city and
county, to impose a "temporary local suspension" of the license of a
commercial licensee for up to 30 days for violations of this chapter.
The department shall promptly cause an investigation to be made as
to whether grounds exist for continued suspension or revocation of
the license.
Article 5. Transportation of Medical Cannabis
26100. A licensed transporter shall transport medical cannabis
and medical cannabis products only between licensed facilities.
26102. (a) Prior to transporting medical cannabis products, a
licensed transporter shall do both of the following:
(1) Complete an electronic shipping manifest as prescribed by the
division.
(2) Securely transmit the manifest to the division and the
licensee that will receive the medical cannabis product.
(b) During transportation, the licensed transporter shall maintain
a physical copy of the shipping manifest and make it available upon
request to agents of the division, local law enforcement officers, or
any other designate enforcement agency.
(c) The licensee receiving the shipment shall maintain each
electronic shipping manifest and shall make it available upon request
to agents of the division, local law enforcement officers, or any
other designate enforcement agency.
(d) Upon receipt of the shipment, a licensed facility shall submit
to the division a record verifying receipt of the shipment and the
details of the shipment.
26104. (a) Transported medical cannabis products shall be
transported only in a storage compartment that is securely affixed to
the interior of the transporting vehicle, and shall not be visible
from outside the vehicle.
(b) A vehicle transporting medical cannabis products shall travel
only directly between licensed facilities.
(c) All transport vehicles shall be staffed with a minimum of two
employees. At least one transport member shall remain with the
vehicle at all times when the vehicle contains medical cannabis.
(d) Each transport team member shall possess documentation of
licensing and a government-issued identification card at all times
when transporting or delivering medical marijuana and shall produce
it upon the request of agents of the division or any law enforcement
officials.
26105. (a) The division shall develop a database containing the
electronic shipping manifests, which shall include, but are not
limited to, the following information:
(1) The quantity, or weight, and variety of products shipped.
(2) The estimated times of departure and arrival.
(3) The quantity or weight, and variety of products received.
(4) The actual time of arrival.
(5) A categorization of the product.
(b) The database shall be designed to flag irregularities for the
division to investigate. The division may, at any time, inspect
shipments and request documentation for current inventory.
26107. (a) This chapter shall not be construed to authorize or
permit any licensee to transport, or cause to be transported,
cannabis or cannabis products outside the state, unless authorized by
federal law.
(b) A local jurisdiction shall not prevent transportation of
medical cannabis by a licensed transporter who acts in compliance
with this chapter.
Article 6. Cannabis Employee Certification and Apprenticeship
Program
26140. (a) The Division of Labor Standards Enforcement shall do
all of the following:
(1) Maintain minimum standards for the competency and training of
employees of a licensed cultivation site or a licensed dispensing
facility, licensed pursuant to this chapter.
(2) Maintain an advisory committee and panels as necessary to
carry out its functions under this section. There shall be employer
representation on the committee and panels.
(3) Establish and collect certification fees not to exceed the
reasonable cost to the Division of Labor Standards Enforcement in
issuing certifications.
(4) Adopt regulations necessary to implement this article.
(5) Issue certification cards to employees who have been certified
pursuant to this article.
(6) Maintain a cannabis certification curriculum committee made up
of representatives of the State Department of Education, the
California Community Colleges, and the Division of Labor Standards
Enforcement. The committee shall do all of the following:
(A) Establish written educational curriculum standards for
enrollees in training programs. Curriculum shall include appropriate
standards for the sale, processing, and cultivation of medical
marijuana including standards for dispensing, growing, harvesting,
packaging, labeling, preparing, transporting, delivering, testing,
storage, and preventing diversion of medical marijuana and related
products, including edible medical marijuana products.
(B) If an educational provider's curriculum meets the written
educational curriculum standards established in accordance with
subparagraph (A), designate that curriculum as an approved curriculum
of classroom instruction.
(C) At the committee's discretion, review the approved curriculum
of classroom instruction of any designated educational provider. The
committee may withdraw its approval of the curriculum if the
educational provider does not continue to meet the established
written educational curriculum standards.
(D) Require each designated educational provider to submit an
annual notice to the committee stating whether the educational
provider is continuing to offer the approved curriculum of classroom
instruction and whether material changes have been made to the
curriculum since its approval.
(b) There shall be no discrimination in favor of, or against, a
person based on membership or nonmembership in a union.
(c) For purposes of this article, the following definitions apply:
(1) "Cannabis employee" means an employee of a licensee working at
a licensed facility under this chapter.
(2) "Committee" means the cannabis curriculum certification
committee established pursuant to this article.
26141. (a) Except as provided in subdivision (c), persons who
perform work as cannabis employees shall be certified by the Division
of Labor Standards Enforcement.
(b) Individuals desiring to be certified shall submit an
application for certification and examination that includes an
employment history report from the Social Security Administration.
The individual may redact his or her social security number from the
employment history report before it is submitted.
(c) (1) Certification is not required for registered apprentices
working as cannabis employees as part of an apprenticeship program
approved under a federal Office of Apprenticeship program or a state
apprenticeship program authorized by the federal Office of
Apprenticeship. An apprentice who is within one year of completion of
his or her term of apprenticeship shall be permitted to take the
certification examination and, upon passing the examination, shall be
certified immediately upon completion of the term of apprenticeship.
(2) Certification is not required for any person employed pursuant
to Section 26143.
(d) The following shall constitute additional grounds for
disciplinary proceedings, including suspension or revocation of the
conditional license issued pursuant to this chapter:
(1) The licensed cultivation site or licensed dispensing facility
willfully employs one or more uncertified persons to perform work as
cannabis employees in violation of this section or Section 26143.
(2) The licensed cultivation site or licensed dispensing facility
willfully fails to provide adequate supervision of uncertified
workers required by paragraph (3) of subdivision (a) of Section
26143.
(3) The licensed cultivation site or licensed dispensing facility
willfully fails to provide adequate supervision of apprentices
performing work pursuant to subdivision (c).
(e) The Labor Commissioner shall maintain a process for referring
cases to the Division of Medical Cannabis Regulation and Enforcement
when it has been determined that a violation of this section has
likely occurred. The Labor Commissioner shall have a memorandum of
understanding with the Division of Medical Cannabis Regulation and
Enforcement in furtherance of this section.
(f) Upon receipt of a referral by the Labor Commissioner alleging
a violation under this section, the Division of Medical Cannabis
Regulation and Enforcement shall open an investigation. Disciplinary
action against the licensee shall be initiated within 60 days of the
receipt of the referral. The Division of Medical Cannabis Regulation
and Enforcement may initiate disciplinary action against a licensee
upon his or her own investigation, the filing of a complaint, or a
finding that results from a referral from the Labor Commissioner
alleging a violation under this section. Failure of the employer or
employee to provide evidence of certification or apprentice status
shall create a rebuttable presumption of violation of this provision.
26142. The Division of Labor Standards Enforcement shall do all
of the following:
(a) Make information about cannabis employee certification
available in languages other than English to the extent the Division
of Labor Standards Enforcement finds appropriate.
(b) Provide for the administration of certification tests in
Spanish and, to the extent practicable, other languages spoken by a
substantial number of applicants, except when the ability to
understand warning signs, instructions, and certain other information
in English is necessary for safety, cultivation, and dispensing.
(c) Ensure, in conjunction with the California Apprenticeship
Council, that all cannabis apprenticeship programs that impose
minimum formal education requirements as a condition of entry provide
for reasonable alternative means of satisfying those requirements.
(d) Ensure, in conjunction with the California Apprenticeship
Council, that all cannabis apprenticeship programs have adopted
reasonable procedures for granting credit toward a term of
apprenticeship for other vocational training and on-the-job training
experience.
26143. (a) An uncertified person may perform work for which
certification is otherwise required in order to acquire the necessary
on-the-job experience for certification if all of the following
requirements are met:
(1) The person is registered with the Division of Labor Standards
Enforcement. A list of current registrants shall be maintained by the
Division of Labor Standards Enforcement and made available to the
public upon request.
(2) The person either has completed or is enrolled in an approved
curriculum of classroom instruction.
(3) The employer attests that the person shall be under the direct
supervision of a cannabis employee certified pursuant to Section
26140 who is responsible for supervising no more than
one uncertified person. An employer who is
found by the Division of Labor Standards Enforcement to have failed
to provide adequate supervision may be barred from employing
uncertified individuals in the future.
(b) For purposes of this section, "an approved curriculum of
classroom instruction" means a curriculum of classroom instruction
approved by the committee and provided under the jurisdiction of the
State Department of Education, the Board of Governors of the
California Community Colleges, or the Bureau for Private
Postsecondary and Vocational Education.
(c) The committee may grant approval to an educational provider
that presently offers only a partial curriculum if the educational
provider intends in the future to offer, or to cooperate with other
educational providers to offer, a complete curriculum for the type of
certification involved. The committee may require an educational
provider receiving approval for a partial curriculum to periodically
renew its approval with the committee until a complete curriculum is
offered and approved.
(d) An educational provider that receives approval for a partial
curriculum shall disclose in all communications to students and to
the public that the educational provider has only received approval
for a partial curriculum and shall not make any representations that
the provider offers a complete approved curriculum of classroom
instruction.
(e) For purposes of this section, a person is enrolled in an
approved curriculum of classroom instruction if the person is
attending classes on a full-time or part-time basis toward the
completion of an approved curriculum.
(f) Registration under this section shall be renewed annually and
the registrant shall provide to the Division of Labor Standards
Enforcement certification of the classwork completed and on-the-job
experience acquired since the prior registration.
(g) For purposes of verifying the information provided by a person
registered with the Division of Labor Standards Enforcement, an
educational provider shall provide an approved curriculum of
classroom instruction, and shall, upon the Division of Labor
Standards Enforcement's request, provide the Division of Labor
Standards Enforcement with information regarding the enrollment
status and instruction completed by an individual registered. By
registering with the Division of Labor Standards Enforcement in
accordance with this section, the individual consents to the release
of this information.
(h) The Division of Labor Standards Enforcement shall establish
registration fees in an amount reasonably necessary to implement this
section, not to exceed twenty-five dollars ($25) for the initial
registration. There shall be no fee for annual renewal of
registration. Fees shall be deposited into the Medical Cannabis
Control Fund established pursuant to Section 26028 for reimbursement
of the costs of the Division of Labor Standards Enforcement in
administering this article.
(i) Notwithstanding any other law, an uncertified person who has
completed an approved curriculum of classroom instruction and is
currently registered with the Division of Labor Standards Enforcement
may take the certification examination. The person shall be
certified upon passing the examination and satisfactorily completing
the requisite number of on-the-job hours required for certification.
A person who passes the examination prior to completing the requisite
hours of on-the-job experience shall continue to comply with
subdivision (f).
SEC. 6. Section 23028 is added to the
Government Code , to read:
23028. (a) (1) In addition to any authority otherwise provided by
law, the board of supervisors of any county may impose, by
ordinance, a tax on the privilege of cultivating, dispensing,
producing, processing, preparing, storing, providing, donating,
selling, or distributing marijuana by a licensee operating pursuant
to the Medical Cannabis Regulation and Control Act (Chapter 18
(commencing with Section 26000) of Division 9 of the Business and
Professions Code). The tax may be imposed for general governmental
purposes or for purposes specified in the ordinance by the board of
supervisors.
(2) The board of supervisors shall specify in the ordinance
proposing the tax the activities subject to the tax, the applicable
rate or rates, the method of apportionment, and the manner of
collection of the tax. A tax imposed pursuant to this section is a
tax and not a fee or special assessment, and the tax is not required
to be apportioned on the basis of benefit to any person or property
or be applied uniformly to all taxpayers or all real property.
(3) A tax imposed by a county pursuant to this section by a county
may include a transactions and use tax imposed solely for marijuana
or marijuana products, which shall otherwise conform to Part 1.6
(commencing with Section 7251) of Division 2 of the Revenue and
Taxation Code. Notwithstanding Section 7251.1 of the Revenue and
Taxation Code, the tax may be imposed at any rate specified by the
board of supervisors, and the tax rate authorized by this section
shall not be considered for purposes of the combined tax rate
limitation established by that section.
(4) The tax authorized by this section may be imposed upon any or
all of the activities set forth in paragraph (1), regardless of
whether the activity is undertaken individually, collectively, or
cooperatively, and regardless of whether the activity is for
compensation or gratuitously, as determined by the board of
supervisors.
(5) The board of supervisors shall specify whether the tax applies
throughout the entire county or within the unincorporated area of
the county.
(b) In addition to any other method of collection authorized by
law, the board of supervisors may provide for the collection of the
tax imposed pursuant to this section in the same manner, and subject
to the same penalties and priority of lien, as other charges and
taxes fixed and collected by the county.
(c) Any tax imposed pursuant to this section shall be subject to
applicable voter approval requirements imposed by any other law.
(d) For purposes of this section, "marijuana" shall have the
meanings set forth in Section 26002 of the Business and Professions
Code.
(e) This section does not limit or prohibit the levy or collection
or any other fee, charge, or tax, or any license or service fee or
charge upon, or related to, the activities set forth in subdivision
(a) as otherwise provided by law. This section shall not be construed
as a limitation upon the taxing authority of any county as provided
by other law.
(f) The total taxation of state and local authorities shall not be
in excess of 25 percent of retail prices.
SEC. 7. Section 11362.775 of the Health
and Safety Code is amended to read:
11362.775. (a) Qualified patients, persons
with valid identification cards, and the designated primary
caregivers of qualified patients and persons with identification
cards, who associate within the State of California in order
collectively or cooperatively to cultivate marijuana for medical
purposes, shall not solely on the basis of that fact be subject to
state criminal sanctions under Section 11357, 11358, 11359, 11360,
11366, 11366.5, or 11570.
(b) Commencing 180 days following the issuance of provisional
licenses pursuant to the Medical Cannabis Regulation and Control Act
(Chapter 18 (commencing with Section 26000) of Division 9 of the
Business and Professions Code), subdivision (a) shall not apply to
licensees under that act. The Division of Medical Cannabis Regulation
and Enforcement shall post a notice on its Internet Web site
indicating when it has commenced issuing provisional licenses and
when the 180 day period has been exhausted.
SEC. 8. Section 1155.7 of the Labor
Code is amended to read:
1155.7. (a) Nothing in this chapter shall
be construed to apply or be applicable to any
a labor organization in its representation of workers who are
not agricultural employees. Any such labor organization shall
continue to be governed in its intrastate activities for
nonagricultural workers by Section 923 and applicable judicial
precedents.
(b) To the extent not prohibited by law and for purposes of this
chapter, "agricultural employer" includes a medical cannabis
cultivation site licensed pursuant to the Medical Cannabis Regulation
and Control Act (Chapter 18 (commencing with Section 26000) of
Division 9 of the Business and Professions Code).
SEC. 9. Section 1158.5 is added to the
Labor Code , to read:
1158.5. (a) The Division of Occupational Safety and Health in the
Department of Industrial Relations shall develop industry-specific
regulations related to the activities of facilities issued a medical
cannabis license pursuant to Medical Cannabis Regulation and Control
Act (Chapter 18 (commencing with Section 26000) of Division 9 of the
Business and Professions Code), including provisions for the
establishment of labor peace agreements and an apprenticeship program
to ensure professional standards among industry employees.
(b) The regulations shall govern agreements between a facility
issued a conditional license and a bona fide labor organization
prohibiting labor organizations and members from engaging in
picketing, work stoppages, boycotts, and other economic interference
with the licensee's business. The regulations shall also govern
agreements whereby the licensee has agreed not to disrupt efforts by
the bona fide labor organization to communicate with, and attempt to
organize and represent, the licensee's employees.
SEC. 10. Section 3094 is added to the
Labor Code , to read:
3094. The Division of Apprenticeship Standards shall investigate,
approve, or reject applications for apprenticeship programs for
employees of a licensee pursuant to the Medical Cannabis Regulation
and Control Act (Chapter 18 (commencing with Section 26000) of
Division 9 of the Business and Professions Code). The Division of
Apprenticeship Standards shall adopt regulations necessary to
implement and regulate the establishment of the apprenticeship
programs described in this section.
SEC. 11. The provisions of this act are severable.
If any provision of this act or its application is held invalid,
that invalidity shall not affect other provisions or applications
that can be given effect without the invalid provision or
application.
SEC. 12. The Legislature finds and declares that
Section 5 of this act imposes a limitation on the public's right of
access to documents in the possession of a public agency within the
meaning of Section 3 of Article I of the California Constitution.
Pursuant to that constitutional provision, the Legislature makes the
following finding to demonstrate the interest protected by this
limitation and the need for protecting that interest:
It is necessary to maintain the confidentiality of patient and
physician information provided to the Division of Medical Cannabis
Regulation and Enforcement in order to protect the private medical
information of patients who use medical cannabis and to preserve the
essential confidentiality of the physician and patient relationship.
SEC. 13 . No reimbursement is required
by this act pursuant to Section 6 of Article XIII B of the California
Constitution for certain costs that may be incurred by a local
agency or school district because, in that regard, this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
However, if the Commission on State Mandates determines that this
act contains other costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division 4 of
Title 2 of the Government Code.
SECTION 1. It is the intent of the Legislature
to enact legislation that would establish a comprehensive and uniform
state regulatory structure to govern the cultivation, processing,
testing, and distribution of medical cannabis.
