Bill Text: CA SB1262 | 2013-2014 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Medical marijuana.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2014-08-14 - Set, second hearing. Held under submission. [SB1262 Detail]
Download: California-2013-SB1262-Amended.html
Bill Title: Medical marijuana.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2014-08-14 - Set, second hearing. Held under submission. [SB1262 Detail]
Download: California-2013-SB1262-Amended.html
BILL NUMBER: SB 1262 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JULY 2, 2014
AMENDED IN ASSEMBLY JUNE 15, 2014
AMENDED IN SENATE MAY 27, 2014
AMENDED IN SENATE MAY 7, 2014
AMENDED IN SENATE APRIL 21, 2014
INTRODUCED BY Senator Correa
( Principal coauthor: Assembly Member
Ammiano )
FEBRUARY 21, 2014
An act to amend Section 2220.05 of, to add Article 25 (commencing
with Section 2525) to Chapter 5 of Division 2 of, and to add Part 5
(commencing with Section 18100) to Division 7 of, the Business and
Professions Code, to add Section 23028 to the Government Code,
and to add Article 8 (commencing with Section 111658) to
Chapter 6 of Part 5 of Division 104 of the Health and Safety Code,
and to add Chapter 3.8 (commencing with Section 7295) to
Part 1.7 of Division 2 of the Revenue and Taxation Code,
relating to medical marijuana , and making an appropriation
therefor .
LEGISLATIVE COUNSEL'S DIGEST
SB 1262, as amended, Correa. Medical marijuana: regulation of
physicians, dispensaries, cultivation sites, and processing
facilities.
(1) 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
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. Existing law provides for the licensure of various professions
by the Department of Consumer Affairs. Existing law, the Sherman
Food, Drug, and Cosmetic Law, provides for the regulation of food,
drugs, devices, and cosmetics, as specified. A violation of that law
is a crime.
This bill would require establish within
the Department of Consumer Affairs a Bureau of Medical
Marijuana Regulation to license dispensing facilities,
cultivation sites, and processing facilities that provide, process,
and grow marijuana for medical use, as specified, including
requiring subject to local ordinances. The bill would
require a background check for license
of applicants for licensure to be administered by the
Department of Justice . The bill would make these
licenses subject to the restrictions of the local jurisdiction in
which the facility operates or proposes to operate. The bill would,
among other things, require licensees to implement sufficient
security measures to both deter and prevent unauthorized entrance
into areas containing marijuana and theft of marijuana at their
facilities, including establishing limited access areas accessible
only to authorized facility personnel, and would require these
licensees to notify appropriate law enforcement authorities within 24
hours after discovering specified breaches in security. The bill
would set forth provisions related to the transportation, testing,
and distribution of marijuana. The bill would set forth
provisions for the revocation or suspension of a license for a
violation of these provisions or of local ordinances, and would
require the bureau to make recommendations to the
Legislature pertaining to the establishment of a judicial review
process. The bill would prohibit the distribution of any form
of advertising for physician recommendations for medical marijuana,
unless the advertisement bears a specified notice and requires that
the advertisement meet specified requirements and not be fraudulent,
deceitful, or misleading, as specified. Violation of these provisions
would be punishable by a civil fine of up to $35,000 for each
individual violation , or as otherwise specified .
The bill would establish the Medical Marijuana Regulation Fund and
would require the deposit of fees collected pursuant to this act
into the fund. The bill would continuously appropriate moneys from
the fund to the bureau for the purposes of administering this act,
thereby making an appropriation. The bill would require the deposit
of penalty moneys collected pursuant to this act into the General
Fund.
The bill would provide that it shall not supersede provisions of
Measure D, as approved by the voters of the City of Los Angeles, as
specified.
The bill would require the department
bureau to administer and enforce these provisions. The bill
would require the department bureau to
establish quality assurance protocols by July 1, 2016, to ensure
uniform testing standards of medical marijuana, and would require
licensees to comply with these provisions. The bill would further set
forth provisions regulating edible marijuana products, as specified.
By adding these provisions to the Sherman Food, Drug, and Cosmetic
Law, a violation of which is a crime, the bill would impose a
state-mandated local program.
(2) Existing law, the Medical Practice Act, provides for the
licensure and regulation of physicians and surgeons by the Medical
Board of California. Existing law requires the board to prioritize
investigations and prosecutions of physicians and surgeons
representing the greatest threat of harm, as specified. Existing law
identifies the cases that are to be given priority, which include
cases of repeated acts of excessively prescribing, furnishing, or
administering controlled substances without a good faith prior
examination of the patient. Existing law provides that a violation of
the Medical Practice Act is a crime.
This bill would require the board to consult with the Center for
Medicinal Cannabis Research on developing and adopting medical
guidelines for the appropriate administration and use of marijuana.
The bill would also make it a misdemeanor for a physician and
surgeon who recommends marijuana to a patient for a medical purpose
to accept, solicit, or offer any remuneration from or to a licensed
dispensing facility in which the physician and surgeon or his or her
immediate family has a financial interest. By creating a new crime,
this the bill would impose a
state-mandated local program.
The 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 board, as described above. The bill would further prohibit a
person physician and surgeon from
recommending medical marijuana to a patient unless that person is the
patient's attending physician, as defined. Because a violation of
that provision would be a crime, the bill would impose a
state-mandated local program.
(3) Existing law authorizes the legislative body of a city or
county 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 legislative 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 legislative body
board of supervisors of a county to levy
impose a tax on the privilege of cultivating,
dispensing, producing, processing, preparing, storing, providing,
don ating, selling, or distributing marijuana
or products containing marijuana. 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 provide that its
provisions are severable.
(5) Existing constitutional provisions require that a statute that
limits the right of access to the meetings of public bodies or the
writings of public officials and agencies be adopted with findings
demonstrating the interest protected by the limitation and the need
for protecting that interest.
This bill would make legislative findings to that effect.
The
(6) 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 no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no yes
. Fiscal committee: yes. State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) In 1996, the people of the State of California enacted the
Compassionate Use Act of 1996, codified in Section 11362.5 of the
Health and Safety Code. The people of the State of California
declared that their purpose in enacting the measure was, among other
things, "to ensure that seriously ill Californians have the right to
obtain and use marijuana for medical purposes where that medical use
is deemed appropriate and has been recommended by a physician who has
determined that the person's health would benefit from the use of
marijuana in the treatment of cancer, anorexia, AIDS, chronic pain,
spasticity, glaucoma, arthritis, migraine, or any other illness for
which marijuana provides relief."
(b) The Compassionate Use Act of 1996 called on state government
to implement a plan for the safe and affordable distribution of
marijuana to all patients in medical need of marijuana , while
ensuring that nothing in this act shall be construed to condone the
diversion of marijuana for nonmedical purposes .
(c) In 2003, the Legislature enacted the Medical Marijuana Program
Act (MMPA), codified in Article 2.5 (commencing with Section
11362.7) of Chapter 6 of Division 10 of the Health and Safety Code.
(d) Greater certainty and minimum statewide standards are urgently
needed regarding the obligations of medical marijuana facilities,
and for the imposition and enforcement of regulations to prevent
unlawful cultivation and the diversion of marijuana to nonmedical
use.
(e) Despite the passage of the Compassionate Use Act of 1996 and
the MMPA, because of the lack of an effective statewide system for
regulating and controlling medical marijuana, cities, counties and
local law enforcement officials have been confronted with uncertainty
about the legality of some medical marijuana cultivation and
distribution activities. The current system of collectives
and cooperatives state of affairs makes law
enforcement difficult and endangers patient safety because of an
inability to monitor the supply of medical marijuana in the state and
the lack of quality control, testing, and labeling requirements.
(f) The California Constitution grants cities and counties the
authority to make and enforce, within their borders, "all local
police, sanitary, and other ordinances and regulations not in
conflict with the general laws." This inherent local police power
includes broad authority to determine, for purposes of public health,
safety, and welfare, the appropriate uses of land within the local
jurisdiction's borders. The police power, therefore, allows each city
and county to determine whether or not a medical marijuana
dispensary or other facility that makes medical marijuana available
may operate within its borders. This authority has been upheld by
City of Riverside v. Inland Empire Patients Health & Wellness, Inc.
(2013) 56 Cal.4th 729 and County of Los Angeles v. Hill (2011) 192
Cal.App.4th 861. Nothing in this act shall diminish, erode, or
modify that authority.
(g) If, pursuant to this authority, a city or county determines
that a dispensary or other facility that makes medical marijuana
available may operate within its borders, then there is a need for
the state to license these dispensaries and other facilities for the
purpose of adopting and enforcing protocols for training and
certification of physicians who recommend the use of medical
marijuana and for agricultural cultivation practices. This licensing
requirement is not intended in any way nor shall it be construed to
preempt local ordinances , regulations, or enforcement actions
regarding the sale and use of medical marijuana, including, but
not limited to, security, signage, lighting, and inspections.
(h) All of the following elements are necessary to uphold
important state goals:
(1) Strict provisions to prevent the potential diversion of
marijuana for recreational use.
(2) Audits to accurately track the volume of both product movement
and sales.
(3) An effective means of restricting nonmedical access
to medical marijuana by minors.
(i) Nothing in this act shall be construed to promote or
facilitate the nonmedical, recreational possession, sale, or use of
marijuana.
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, 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. Article 25 (commencing with Section 2525) is added to
Chapter 5 of Division 2 of the Business and Professions Code, to
read:
Article 25. Recommending Medical Marijuana
2525. (a) It is unlawful for a physician and surgeon who
recommends marijuana to a patient for a medical purpose to accept,
solicit, or offer any form of remuneration from or to a facility
licensed pursuant to Part 5 (commencing with Section 18100) of
Division 7, if the physician and surgeon or his or her immediate
family have a financial interest in that facility.
(b) For the purposes of this section, "financial interest" shall
have the same meaning as in Section 650.01.
(c) A violation of this section shall be a misdemeanor.
2525.1. The board shall consult with the California Marijuana
Research Program, known as the Center for Medicinal Cannabis
Research, authorized pursuant to Section 11362.9 of the Health and
Safety Code, on developing and adopting medical guidelines for the
appropriate administration and use of marijuana.
2525.2. No person A physician and surgeon
shall not recommend medical marijuana to
a patient, unless that person is the patient's attending physician,
as defined by subdivision (a) of Section 11362.7 of the Health and
Safety Code.
SEC. 4. Part 5 (commencing with Section 18100) is added to
Division 7 of the Business and Professions Code, to read:
PART 5. Medical Marijuana
18100. For purposes of this part, the following definitions shall
apply:
(a) "Certified testing laboratory" means a laboratory that is
certified by the department to perform random sample testing of
marijuana pursuant to the certification standards for these
facilities promulgated by the department.
(b) "Department" means the Department of Consumer Affairs.
(c) "Dispensary" means a distribution operation that provides
marijuana or marijuana derived products to patients.
(d) "Licensed cultivation site" means a facility that grows
marijuana for medical use and that is licensed pursuant to Section
18101.
(e) "Licensed dispensing facility" means a dispensary or other
facility that provides marijuana for medical use that is licensed
pursuant to Section 18101.
(f) "Licensed processing facility" means a facility where
marijuana or marijuana products are inspected, packaged, labeled, or
otherwise prepared prior to being provided to another facility
licensed pursuant to this section, to a patient with a medical
marijuana recommendation, or otherwise distributed, and that is
licensed pursuant to Section 18101.
(g) "Licensed transporter" means an individual or entity licensed
by the department to transport marijuana to and from facilities
licensed pursuant to this part.
(h) "Marijuana" means marijuana, as defined by Section 11018 of
the Health and Safety Code.
(a) "Bureau" means the Bureau of Medical Marijuana Regulation in
the Department of Consumer Affairs.
(b) "Certified testing laboratory" means a laboratory that is
certified by the bureau to perform random sample testing of marijuana
pursuant to the certification standards for these facilities
promulgated by the bureau.
(c) "Dispensary" means a distribution operation that provides
marijuana or marijuana derived products to patients.
(d) "Fund" means the Medical Marijuana Regulation Fund established
pursuant to Section 18101.4.
(e) "Licensed cultivation site" means a facility that grows
marijuana for medical use and that is licensed pursuant to this part.
(f) "Licensed dispensing facility" means a dispensary or other
facility that provides marijuana for medical use that is licensed
pursuant to this part.
(g) "Licensed processing facility" means a facility where
marijuana or marijuana products are inspected, packaged, labeled, or
otherwise prepared, warehoused, or stored prior to being provided to
another facility licensed pursuant to this part, to a patient with a
medical marijuana recommendation, or otherwise distributed, and that
is licensed pursuant to this part.
(h) "Licensed transporter" means an individual or entity licensed
by the bureau to transport marijuana to and from facilities licensed
pursuant to this part.
(i) "Marijuana" 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. "Marijuana" 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. "Marijuana" also means
marijuana, as defined by Section 11018 of the Health and Safety Code.
18101. (a) Except as provided in Section 11362.5 of, and Article
2.5 (commencing with Section 11362.7) of Chapter 6 of Division 10 of,
the Health and Safety Code, a person shall not sell or provide
marijuana other than at a licensed dispensing facility.
(b) Except as provided in Section 11362.5 of, and Article 2.5
(commencing with Section 11362.7) of Chapter 6 of Division 10 of, the
Health and Safety Code, a person shall not grow marijuana other than
at a licensed cultivation site.
(c) Except as provided in Section 11362.5 of, and Article 2.5
(commencing with Section 11362.7) of Chapter 6 of Division 10 of, the
Health and Safety Code, a person shall not process marijuana other
than at a licensed processing facility.
(d) A person shall not transport marijuana from one facility
licensed pursuant to this part to another, other than a licensed
transporter.
(e) To meet the requirement of Sections 111658 to 111663,
inclusive, of the Health and Safety Code, marijuana and marijuana
products shall be tested by a certified testing laboratory.
(f) The department shall require, prior to issuing a license to a
dispensing facility or a cultivation site pursuant to this part, all
of the following:
(1) The name of the owner or owners of the proposed facility.
(2) The address and telephone number of the proposed facility.
(3) A description of the scope of business of the proposed
facility.
(4) A certified copy of the local jurisdiction's approval to
operate within its borders.
(5) A completed application, as required by the department.
(6) Payment of a fee, in an amount to be determined by the
department not to exceed the amount necessary, but that is sufficient
to cover, the actual costs of the administration of this part.
(7) (A) An applicant's fingerprint images and related information
required by the Department of Justice for the purpose of obtaining
information as to the existence and content of a record of state and
federal convictions and arrests, and information as to the existence
and content of a record of state and federal convictions and arrests
for which the Department of Justice establishes that the person is
free on bail, or on his or her own recognizance, pending trial or
appeal.
(B) The Department of Justice shall forward the fingerprint images
and related information received pursuant to subparagraph (A) to the
Federal Bureau of Investigation and request a federal summary of
criminal information. The Department of Justice shall review the
information returned from the Federal Bureau of Investigation and
compile and disseminate a response to the department.
(C) The Department of Justice shall charge a fee sufficient to
cover the reasonable cost of processing the requests described in
this paragraph.
(D) The department may deny a license based on a past criminal
conviction if the crime is substantially related to the
qualifications, functions, or duties of the business for which the
license will be issued.
(8) In the case of a cultivation site, the GPS coordinates of the
site.
(9) Any other information as required by the department.
(g) The department shall deny a license if the application fails
to state with sufficient specificity the jurisdiction in which the
applicant proposes to establish operations.
(h) Each application for a license approved by the department
pursuant to this part is separate and distinct. A licensee shall not
hold a license in more than one class of specified medical marijuana
activities. A licensee shall not be an officer, director, member,
owner, or shareholder in another entity licensed pursuant to this
part. The officers, directors, owners, members, or shareholders of a
licensee in one class may not hold a license in another class, and
may not be an officer, director, member, owner, or shareholder of an
entity licensed pursuant to this part.
18101. (a) (1) There is hereby created in the Department of
Consumer Affairs the Bureau of Medical Marijuana Regulation. The
bureau shall be administered by an executive officer who shall be a
civil servant appointed pursuant to civil service rules by the
Governor, and who shall be known as the Executive Officer of the
Bureau of Medical Marijuana Regulation.
(2) Funds for the establishment and support of the bureau shall be
advanced as a loan by the Department of Consumer Affairs and shall
be repaid by the initial proceeds from fees collected pursuant to
subdivision (b) of Section 18101.1, paragraph (9) of subdivision (f)
of Section 18101.2, and subdivision (b) of Section 18101.3.
(b) (1) The bureau shall have the power to license persons for the
cultivation, manufacture, transportation, storage, distribution, and
sale of medical marijuana within the state and to collect licensing
fees in connection with these actions.
(2) The bureau shall exercise its authority pursuant to paragraph
(1) consistent with subdivision (f) of Section 1 of the act that
added this section and consistent with the provisions of this part.
18101.1. The bureau shall have the authority, subject to local
ordinances, to license persons for the cultivation, manufacture,
transportation, storage, and sale of medical marijuana within the
state, and to levy appropriate related licensing fees not to exceed
the reasonable costs of enforcement and administration of this part.
The bureau shall not issue a license if the applicant has not met all
requirements pursuant to this part. A license, once issued, shall be
suspended within 10 days of notification to the bureau by a local
agency that a licensee is no longer in compliance with any local
ordinance or regulation. The bureau shall have the power necessary
for the administration of this part, including, but not limited to,
the following:
(a) Establishing statewide minimum standards for the cultivation,
manufacturing, transportation, storage, distribution, provision,
donation, and sale of medical marijuana and medical marijuana
products, and procedures for the issuance, renewal, suspension, and
revocation of licenses.
(b) Establishing a scale of application, license, and renewal
fees, to be imposed by the state, for licenses for the cultivation,
manufacturing, transportation, distribution, and sale of medical
marijuana and medical marijuana products. The bureau may charge
separate fees for each license application for cultivation,
manufacturing, transportation, distribution, and sale. The total fees
imposed pursuant to this part shall be based on the actual costs of
administering and enforcing this part.
(c) Making and proscribing any rule that may be necessary or
proper to carry out the purposes and intent of this part and to
enable it to exercise the powers and perform the duties conferred
upon it by this part and in accordance with Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code. For the performance of its duties, the bureau has
the powers as set forth in Article 2 (commencing with Section 11180)
of Chapter 2 of Part 1 of Division 3 of Title 2 of the Government
Code.
(d) Approving or denying applications, subject to local
ordinances, for cultivation, manufacturing, labeling, transportation,
distribution, provision, donation, and sale of medical marijuana
pursuant to this part.
(e) The bureau shall, with input from local agencies, deny,
suspend, or revoke any license issued pursuant to this part, or fine
any licensee, if the bureau determines that the granting or
continuance of the license would be contrary to public welfare or
morals or that a person holding or seeking a license has violated any
law prohibiting conduct involving moral turpitude or an applicable
local ordinance.
(f) Imposing any penalty authorized by this part or any rule or
regulation adopted pursuant to this part.
(g) Taking any action with respect to a license application in
accordance with procedures established pursuant to this part.
(h) The bureau 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 bureau.
(i) Developing any forms, identification certificates, and
applications that are necessary or convenient in the discretion of
the bureau for the administration of this part or any of the rules or
regulations adopted pursuant to this part.
(j) Overseeing the operation of the Medical Marijuana Regulation
Fund established pursuant to Section 18101.4.
(k) Establishing reasonable fees for processing all applications,
licenses, notices, or reports required to be submitted to the bureau.
The amount of the fees shall reflect, but shall not exceed, the
direct and indirect costs of the bureau for the administration of
this part and the rules or regulations adopted pursuant to this part.
(l ) The bureau may consult with other state agencies,
departments, or public or private entities for the purposes of
establishing statewide standards and regulations.
18101.2. (a) Except as provided in Section 11362.5 of, and
Article 2.5 (commencing with Section 11362.7) of Chapter 6 of
Division 10 of, the Health and Safety Code, a person shall not sell
or provide marijuana other than at a licensed dispensing facility.
(b) Except as provided in Section 11362.5 of, and Article 2.5
(commencing with Section 11362.7) of Chapter 6 of Division 10 of, the
Health and Safety Code, a person shall not grow marijuana other than
at a licensed cultivation site.
(c) Except as provided in Section 11362.5 of, and Article 2.5
(commencing with Section 11362.7) of Chapter 6 of Division 10 of, the
Health and Safety Code, a person shall not process marijuana other
than at a licensed processing facility.
(d) A person shall not transport marijuana from one facility
licensed pursuant to this part to another, other than a licensed
transporter.
(e) To meet the requirements of Article 8 (commencing with Section
111658) of Chapter 6 of Part 5 of Division 104 of the Health and
Safety Code, marijuana and marijuana products shall be tested by a
certified testing laboratory.
(f) The bureau shall require, prior to issuing a license pursuant
to this part, all of the following:
(1) The name of the owner or owners of a proposed facility,
including 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.
(2) The name, address, and date of birth of each principal officer
and board member.
(3) The address and telephone number of the proposed facility.
(4) A description of the scope of business of the proposed
facility.
(5) A certified copy of the local jurisdiction's approval to
operate within its borders.
(6) Operating and inventory control procedures to ensure security
and prevent diversion.
(7) 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 marijuana, personnel policies, and recordkeeping
procedures.
(8) A completed application, as required by the bureau.
(9) Payment of a fee, in an amount to be determined by the bureau,
not to exceed the amount necessary, but that is sufficient to cover,
the actual costs of the administration of this part.
(10) (A) An applicant's fingerprint images and related information
required by the Department of Justice for the purpose of obtaining
information as to the existence and content of a record of state and
federal convictions and arrests, and information as to the existence
and content of a record of state and federal convictions and arrests
for which the Department of Justice establishes that the person is
free on bail, or on his or her own recognizance, pending trial or
appeal.
(B) The Department of Justice shall charge a fee sufficient to
cover the reasonable cost of processing the requests described in the
paragraph.
(11) In the case of a cultivation site, the GPS coordinates of the
site.
(12) Any other information as required by the bureau.
(13) The bureau shall deny a license based on a past felony
criminal conviction for drug trafficking, a felony conviction for
embezzlement, a felony conviction involving fraud or deceit, or any
violent or serious felony conviction pursuant to subdivision (c) of
Section 667.5 of, or subdivision (c) of Section 1192.7 of, the Penal
Code. The bureau may also deny a license based on
a past criminal conviction if the crime was
substantially related to the qualifications, functions, or duties of
the business for which the license will be issued.
(g) The bureau shall deny a license if the application fails to
state with sufficient specificity the jurisdiction in which the
applicant proposes to establish operations.
(h) (1) Each application for a license approved by the bureau
pursuant to this part is separate and distinct, and the bureau may
charge a separate fee for each. A licensee shall not hold a license
in more than one class of specified medical marijuana activities,
except that a licensee may have a transporter license in addition to
a license to cultivate, process, or dispense medical marijuana.
(2) A licensee shall not be an officer, director, member, owner,
or shareholder in another entity licensed pursuant to this part. The
officers, directors, owners, members, or shareholders of a licensee
in one class of license may not hold a license in another class, and
may not be an officer, director, member, owner, or shareholder of an
entity licensed pursuant to this part.
18101.3. Beginning January 1, 2015, the bureau shall provide for
provisional licenses, as follows:
(a) The bureau shall request that every city, county, or city and
county provide the bureau with a list of approved entities providing
medical marijuana to qualified patients and caregivers within the
city's, county's, or city and county's jurisdiction, if any, the
location at which the entity is operating, and the names of the
persons who operate the entity.
(1) 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 bureau shall issue a provisional
license to the entity until the time that the entity's application
for a license has been approved or denied under this part, but no
later than 90 days after the bureau begins accepting applications for
licenses.
(2) The bureau shall consult with relevant local agencies in
making a determination on whether a provisional license applicant is
in compliance with any applicable ordinance. The bureau shall issue a
provisional license to an individual or entity once the bureau has
obtained confirmation from the relevant local agency that the six
months prior to January 1, 2015, the applicant was regularly
cultivating or distributing medical marijuana collectively or
cooperatively in full compliance with any applicable local ordinance.
The bureau shall continue to issue provisional licenses until such
time as the licensee's application for a standard license has been
approved or denied under this part, but no later than 90 days after
the bureau begins accepting applications. To qualify for a
provisional license, an applicant shall be required to disclose to
the bureau the following information in writing on or before January
20, 2015, in order to obtain provisional licensure:
(A) The names, addresses, and dates of birth of each principal
officer, owner, or board member.
(B) The common street address and assessor's parcel number of the
property at which the applicant will conduct any activity under the
authority of the license.
(C) The common street address and assessor's parcel number of the
property at which any cultivation activity was or is to be conducted.
(D) For the six months prior to January 1, 2015, the quantity of
medical marijuana cultivated at a location and the quantity expected
to be cultivated from January 1, 2015, to June 30, 2015, inclusive.
The applicant shall make its records of current activity and activity
for the six months prior to January 1, 2015, available to the bureau
upon request.
(b) The bureau shall charge an application fee of eight thousand
dollars ($8,000) for each provisional license.
(c) Notwithstanding any other provision of this section, the
bureau shall not issue a provisional license to any individual or
entity, or for any 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 applicable local ordinance.
18101.35. Beginning July 1, 2016, the bureau shall provide for
standard licenses as follows:
(a) The bureau shall request that every city, county, or city and
county provide the bureau with a list of approved entities providing
medical marijuana to qualified patients and caregivers within the
city's, county's, or city and county's jurisdiction, if any, the
location at which the entity is operating, and the names of the
persons who operate the entity.
(b) 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 bureau shall issue a license to
the entity if it meets the licensing requirements of this part.
(c) The bureau shall consult with relevant local agencies in
making a determination as to whether a standard license applicant is
in compliance with local ordinances. The bureau shall issue a
standard license only after it has obtained confirmation from the
relevant local agency that the applicant has satisfied all local
permitting requirements for cultivating or distributing medical
marijuana in compliance with local ordinances, and fulfilled all
other requirements under this part.
(d) The bureau shall charge an application fee of eight thousand
dollars ($8,000) for each standard license.
18101.4. (a) The Medical Marijuana Regulation 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 part shall be deposited
into the Medical Marijuana Regulation Fund. Notwithstanding Section
13340 of the Government Code, all moneys within the fund are hereby
continuously appropriated, without regard to fiscal year, to the
bureau solely for the purposes of fully funding and administering
this part, including, but not limited to, the costs incurred by the
bureau for its administrative expenses.
(c) All moneys collected pursuant to this part as a result of
penalties imposed under this part shall be deposited directly into
the General Fund, to be available upon appropriation.
(d) The bureau may establish and administer a grant program to
allocate moneys from the Medical Marijuana Regulation Fund to state
and local entities for the purpose of assisting with medical
marijuana regulation and the enforcement of this part and other state
and local laws applicable to licensees.
18102. (a) A facility licensed pursuant to this part shall not
acquire, cultivate, process, possess, store, manufacture,
test, distribute, sell, deliver, transfer, transport, or
dispense marijuana for any purpose other than those authorized by
Article 2.5 (commencing with Section 11362.7) of Chapter 6 of
Division 10 of the Health and Safety Code.
(b) A licensed dispensing facility shall not acquire, cultivate,
process, possess, store, manufacture, test,
distribute, sell, deliver, transfer, transport, or dispense marijuana
plants or marijuana products except through a licensed cultivation
site or processing facility.
18103. (a) A licensed transporter shall ship only to facilities
licensed pursuant to this part and only in response to a request for
a specific quantity and variety from those facilities.
(b) Prior to transporting any medical marijuana product, a
licensed transporter shall do the following:
(1) Complete a shipping manifest using a form prescribed by the
department. bureau.
(2) Securely transmit a copy of the manifest to the licensee that
will receive the medical marijuana product, and to the
department, bureau, prior to transport.
(c) The licensed transporter making the shipment and the licensee
receiving the shipment shall maintain each shipping manifest and make
it available to local code enforcement officers, any other locally
designated enforcement entity, and the department
bureau upon request.
18104. (a) Transported medical marijuana products shall:
(1) Be transported only in a locked, safe and secure storage
compartment that is securely affixed to the interior of the
transporting vehicle.
(2) Not be visible from outside the vehicle.
(b) Any vehicle transporting medical marijuana products shall
travel directly from one licensed facility to another licensed
facility authorized to receive the shipment.
18105. (a) All transport vehicles shall be staffed with a minimum
of two employees. At least one transport team member shall remain
with the vehicle at all times that the vehicle contains medical
marijuana.
(b) Each transport team member shall have access to a secure form
of communication by which each member can communicate with personnel
at the licensed facility at all times that the vehicle contains
medical marijuana.
(c) 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 to any representative of the department or law enforcement
official upon request.
(d) This part shall not be construed to authorize or permit any
licensee to transport, or cause to be transported, marijuana or
marijuana products outside the state.
18105.5. A local jurisdiction shall not prevent transportation
through or to a licensed entity by a licensed transporter who acts in
compliance with this part.
18106. (a) The department shall have the authority, subject to
local ordinances, to license persons for the cultivation,
manufacture, testing, transportation, storage, and sale of medical
marijuana within the state, and to levy appropriate related licensing
fees not to exceed the reasonable costs of enforcement and
administration of this part. The department shall not issue a license
if the applicant has not met all requirements pursuant to Section
18101. A license, once issued, shall be suspended within five days of
notification to the department by a local agency that a licensee is
no longer in compliance with local ordinances or regulation.
(b)
18106. (a) The department
bureau shall promulgate, by July 1, 2016,
regulations for implementation and enforcement of this part,
including all of the following:
(1) Procedures for the issuance, renewal, suspension, and
revocation of licenses.
(2) Application, licensing, and renewal forms and fees.
(3) A time period in which the department
bureau shall approve or deny an application for a license to
operate a facility or dispensary.
(4) Qualifications for licensees.
(5) Standards for certification of testing laboratories to perform
random sample testing of all marijuana products intended for sale,
to identify and eliminate chemical residue, microbiological
contaminants, and mold.
(6) Requirements to ensure conformance with standards analogous to
state statutory environmental, agricultural, consumer protection,
and food and product safety requirements. At a minimum, these
standards shall do all of the following:
(A) Prescribe 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,
and handling and sale of edible marijuana products.
(B) Require that edible marijuana products produced, distributed,
provided, donated, or sold by licensees shall be limited to
nonpotentially hazardous food as established by the State Department
of Public Health pursuant to Section 114365.5 of Health and Safety
Code.
(C) Provide standards for labeling edible marijuana products to
ensure that the products cannot be mistaken as food not containing
marijuana.
(D) Require that facilities in which edible marijuana products are
prepared shall be constructed in accordance with applicable building
standards, health and safety standards, and other state laws.
(E) Provide that any weighing or measuring devices used in
connection with the sale or distribution of marijuana are required to
meet standards analogous to Division 5 (commencing with Section
12001).
(F) Require that any application of pesticides or other pest
control in connection with the indoor or outdoor cultivation of
marijuana shall meet standards analogous to Division 6 (commencing
with Section 11401) of the Food and Agricultural Code and its
implementing regulations.
(c)
(b) The department bureau
shall promulgate, by July 1, 2016, regulations for minimum statewide
health and safety standards and quality assurance standards pursuant
to Section 111658 of the Health and Safety Code associated with the
cultivation, transport, storage, and sale of all medical marijuana
produced in this state. Local agencies shall have primary
responsibility for enforcement of these standards in accordance with
department bureau regulations.
(d)
(c) An application for or renewal of a license shall
not be approved if the department bureau
determines any of the following:
(1) The applicant fails to meet the requirements of this part or
any regulation adopted pursuant to this part or any applicable
city or city county , or city and
county ordinance or regulation.
(2) The applicant, or any of its officers, directors, owners,
members, or shareholders is a minor.
(3) The applicant has knowingly answered a question or request for
information falsely on the application form, or failed to provide
information requested.
(4) The applicant, or any of its officers, directors, owners,
members, or shareholders has been sanctioned by the
department, bureau, a city, county, or city and
county, for marijuana activities conducted in violation of this part
or any applicable local ordinance or has had a license revoked in the
previous five years.
(5) The proposed cultivation, processing, possession, storage,
manufacturing, testing, transporting, distribution, provision, or
sale of medical marijuana will violate any applicable local law or
ordinance.
(6) (A) The bureau shall deny an application for a license if
issuance of that license would tend to create a law enforcement
problem, or if issuance would result in or add to an undue
concentration of licenses.
(B) For purposes of this paragraph, the following definitions
shall apply:
(i) "Population within the census tract or census division" means
the population as determined by the most recent United States
decennial or special census. The population determination shall not
operate to prevent an applicant from establishing that an increase of
resident population has occurred within the census tract or census
division.
(ii) "Reported crimes" means the most recent yearly compilation by
the local law enforcement agency of reported offenses of criminal
homicide, forcible rape, robbery, aggravated assault, burglary,
larceny, theft, and motor vehicle theft, combined with all arrests
for other crimes, both felonies and misdemeanors, except traffic
citations.
(iii) "Reporting districts" means geographical areas within the
boundaries of a single governmental entity (city or the
unincorporated area of a county) that are identified by the local law
enforcement agency in the compilation and maintenance of statistical
information on reported crimes and arrests.
(iv) "Undue concentration" means:
(I) The applicant premises are located in a crime reporting
district that has a 20 percent greater number of reported crimes than
the average number of reported crimes as determined from all crime
reporting districts within the jurisdiction of the local law
enforcement agency.
(II) The ratio of licenses to population within the census tract
or census division in which the applicant premises are located
exceeds the ratio of licenses to population in the county in which
the applicant premises are located.
(e)
(d) The department bureau
may consult with other state agencies, state departments, public
entities, or private entities for the purposes of establishing
statewide standards and regulations.
(f)
(e) The department bureau
may assist state taxation authorities in the development of uniform
policies for the state taxation of licensees.
(g)
(f) The department bureau
may assist the Division of Occupational Safety and Health in the
Department of Industrial Relations in the development of
industry-specific regulations related to the activities of licensees.
18107. (a) A person shall not distribute any form of advertising
for physician recommendations for medical marijuana in California
unless the advertisement bears the following notice to consumers:
NOTICE TO CONSUMERS: The Compassionate Use Act of 1996 ensures
that seriously ill Californians have the right to obtain and use
marijuana for medical purposes where medical use is deemed
appropriate and has been recommended by a physician who has
determined that the person's health would benefit from the use of
marijuana. Physicians are licensed and regulated by the Medical Board
of California and arrive at the decision to make this recommendation
in accordance with accepted standards of medical responsibility.
(b) Advertising for physician recommendations for medical
marijuana shall meet all requirements of Section 651. Price
advertising shall not be fraudulent, deceitful, or misleading,
including statements or advertisements of bait, discounts, premiums,
gifts, or statements of a similar nature.
18108. (a) A facility licensed pursuant to this part shall
implement sufficient security measures to both deter and prevent
unauthorized entrance into areas containing marijuana and theft of
marijuana at those facilities. These security measures shall include,
but not be limited to, all of the following:
(1) Allow only qualifying patients, the patient's primary
caregiver, and facility agents access to the facility.
(2) Prevent individuals from remaining on the premises of the
facility if they are not engaging in activity expressly related to
the operations of the facility.
(3) Establish limited access areas accessible only to authorized
facility personnel.
(4) Store all finished marijuana in a secure, locked safe
or vault secured and locked room, safe, or
vault, and in a manner as to prevent diversion, theft, and
loss.
(b) A facility licensed pursuant to this part shall notify
appropriate law enforcement authorities within 24 hours after
discovering any of the following:
(1) Discrepancies identified during inventory.
(2) Diversion, theft, loss, or any criminal activity involving the
facility or a facility agent.
(3) The loss or unauthorized alteration of records related to
marijuana, registered qualifying patients, personal caregivers, or
facility agents.
(4) Any other breach of security.
(c) A licensed cultivation site shall weigh, inventory, and
account for on video, all medical marijuana to be transported prior
to its leaving its origination location. Within eight hours after
arrival at the destination, the licensed dispensing facility shall
reweigh, reinventory, and account for on video, all transported
marijuana.
18108.5. (a) The department bureau
shall require an annual audit of all licensees licensed pursuant to
this part or otherwise licensed by the department
bureau to cultivate, manufacture, process, test,
transport, store, or sell marijuana to be paid for by each
licensed vendor and dispensary.
(b) Completed audit reports shall also be submitted by the
licensee to local code enforcement offices, or the appropriate
locally designated enforcement entity, within 30 days of the
completion of the audit.
(c) It is the responsibility of each licensee licensed pursuant to
this part or otherwise licensed by the department
bureau to cultivate, manufacture, process, test,
transport, store, or sell marijuana to develop a robust
quality assurance protocol that includes all of the provisions of
this part.
18108.6. (a) A laboratory certified by the bureau to perform
random sample testing of marijuana products pursuant to paragraph (5)
of subdivision (a) of Section 18106 shall not acquire, cultivate,
process, possess, store, manufacture, distribute, sell, deliver,
transfer, transport, or dispense marijuana for any purpose other than
those authorized by Article 2.5 (commencing with Section 11362.7) of
Chapter 6 of Division 10 of the Health and Safety Code.
(b) A laboratory certified by the bureau to perform random sample
testing of marijuana products pursuant to paragraph (5) of
subdivision (a) of Section 18106 shall not acquire, cultivate,
process, possess, store, manufacture, distribute, sell, deliver,
transfer, transport, or dispense marijuana plants or marijuana
products except through a licensed cultivation site, or processing
facility.
18109. In addition to the provisions of this part, a license
granted pursuant to this part shall be subject to the restrictions of
the local jurisdiction in which the facility operates or proposes to
operate. Even if a license has been granted pursuant to this part, a
facility shall not operate in a local jurisdiction that prohibits
the establishment of that type of business.
18110. Violation of this part shall be punishable by a civil fine
of up to thirty-five thousand dollars ($35,000) for each individual
violation.
18110. (a) A willful violation of Section 18101.2, including any
attempt to falsify information on an application as required by
Section 18101.2, or to otherwise defraud or mislead a state or local
agency in the course of the application process, shall be punishable
by a civil fine of up to thirty-five thousand dollars ($35,000) for
each individual violation. This subdivision shall apply to both the
provisional and permanent licensing application processes under this
part.
(b) A technical violation of Section 18101.2 shall, at the bureau'
s discretion, be punishable by a civil fine of up to ten thousand
dollars ($10,000) for each individual violation. This subdivision
shall apply to both the provisional and permanent licensing
application processes under this part.
18110.1. The executive officer or any district attorney, county
counsel, city attorney, or city prosecutor may bring an action to
enjoin a violation or the threatened violation of any provision of
this part, 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 part. The action shall be
brought in the county in which the violation occurred or is
threatened to occur. Any proceeding brought pursuant to this part
shall conform to the requirements of Chapter 3 (commencing with
Section 525) of Title 7 of Part 2 of the Code of Civil Procedure.
Nothing in this section shall diminish the authority of local
government to take requisite enforcement actions pertaining to its
own ordinances or regulations.
18111. Nothing in this part shall prevent a city or other local
governing body from taking action as specified in Section 11362.83 of
the Health and Safety Code.
18112. This part shall in no way supersede the provisions of
Measure D, approved by the voters of the City of Los Angeles on the
May 21, 2013, ballot for the city, which granted marijuana businesses
and dispensaries qualified immunity consistent with the terms of the
measure and local ordinances. Notwithstanding the provisions of this
part, marijuana businesses and dispensaries subject to the
provisions of Measure D and its qualified immunity shall continue to
be subject to the ordinances and regulations of the City of Los
Angeles.
18113. (a) This part 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)
18113. (a) A patient who
cultivates, possesses, stores, manufactures, or transports marijuana
exclusively for his or her personal medical use and who does not
sell, distribute, donate, or provide marijuana to any other person is
not considered a licensee under this part and is exempt from
licensure under this part.
(2)
(b) A primary caregiver who cultivates, possesses,
stores, manufactures, transports, or provides marijuana exclusively
for the personal medical purposes of a no
more than five specified qualified patient
patients for whom he or she is the primary caregiver
within the meaning of Section 11362.7 of the Health and Safety Code
and 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 considered a licensee
under this part and is exempt from licensure under this part.
18114. (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 bureau for the purposes of
administering this part 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 part:
(b) (1) Nothing in this section shall preclude any of the
following:
(A) Bureau employees notifying state or local agencies about
information submitted to the bureau that the employee suspects is
falsified or fraudulent.
(B) Notifications from the bureau to state or local agencies of
apparent violations of this part or any applicable local ordinance.
(C) Verification of requests by state or local agencies to confirm
licenses and certificates issued by the bureau or other state
agency.
(D) 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.
(2) Information shall not be disclosed beyond what is necessary to
achieve the goals of a specific investigation or notification or the
parameters of a specific court order or subpoena.
18115. (a) The actions of a licensee or provisional licensee, its
employees, and its agents, permitted pursuant to a license or
provisional license issued by the bureau or otherwise permitted by
this part, that are conducted in accordance to the requirements of
this part and regulations adopted pursuant to the authority granted
by this part, are not unlawful under state law and shall not be an
offense subject to arrest or prosecution.
(b) The actions of a person who, in good faith and upon
investigation, allows his or her property to be used by a licensee or
provisional licensee, its employees, and its agents, as permitted
pursuant to a license or provisional license issued by the bureau or
otherwise permitted by this part, are not unlawful under state law
and shall not be an offense subject to arrest or prosecution.
(c) This section shall not be deemed to limit the authority or
remedies of a city, county, or city and county under any provision of
law, including, without limitation, Section 7 of Article XI of the
California Constitution.
18116. (a) A licensee shall not cultivate, process, store,
manufacture, transport, or sell medical marijuana in the state unless
accurate records are kept at the licensed premises of the growing,
processing, storing, manufacturing, transporting, or selling by the
licensee in the state. These records shall include the name and
address of the supplier of any marijuana received or possessed by the
licensee, the location at which the marijuana was cultivated, the
amount of marijuana received, the form in which it is received, the
name of the employee receiving it, and the date of receipt. These
records shall also include receipts for all expenditures incurred by
the licensee and banking records, if any, for all funds obtained or
expended in the performance of any activity under the authority of
the license, provided that a licensee licensed to act at more than
one premises may keep all records at one of the licensed premises.
Required records shall be kept for a period of seven years from the
date of the transaction.
(b) The bureau and any state or local agency may make any
examination of the books and records of any licensee and may visit
and inspect the premises of any licensee that the bureau may deem
necessary to perform its duties under this part.
(c) Any books or records requested by the bureau or any state or
local agency shall be provided by the licensee no later than at the
end of the next business day after the request is made.
(d) The bureau or any state or local agency may enter and inspect
the premises of any facility operated by a licensee between the hours
of 8 a.m. and 8 p.m. on any day that the facility is open, or at any
reasonable time, to ensure compliance and enforcement of the
provisions of this part or any local ordinance.
(e) If a licensee or any employee of a licensee refuses, impedes,
obstructs, or interferes with an inspection pursuant to this part or
local ordinance, or if the licensee fails to maintain or provide the
books and records required by this section, the licensee may be
summarily suspended pursuant to this part and the bureau shall
directly commence proceedings for the revocation of the license in
accordance with this part.
SEC. 5. 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 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 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 18100 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.
SEC. 5. SEC. 6. Article 8
(commencing with Section 111658) is added to Chapter 6 of Part 5 of
Division 104 of the Health and Safety Code, to read:
Article 8. Medical Marijuana
111658. For purpose of this article, the following definitions
shall apply:
(a) "Bureau" means the Bureau of Medical Marijuana Regulations in
the Department of Consumer Affairs.
(a)
(b) "Certified testing laboratories" means a laboratory
that is certified by the department bureau
to perform random sample testing of marijuana pursuant to the
certification standards for those facilities promulgated by the
department. bureau.
(b) "Department" means the Department of Consumer Affairs.
(c) "Edible marijuana product" means marijuana or a
marijuana-derived product that is ingested or meant to be ingested
through the mouth and into the digestive system.
(d) "Marijuana" means marijuana, as defined by Section 11018.
(d) "Marijuana" means all parts of the plant Cannabis sativa L.
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. "Marijuana" 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. "Marijuana" also
means marijuana, as defined by Section 11018.
(e) "Representative samples" means samples taken from each batch
or shipment of marijuana received from a licensed cultivation site or
any other source if intended for sale.
111659. The department, bureau, by
July 1, 2016, shall accomplish the following:
(a) Establish quality assurance protocols to ensure uniform
testing standards for all marijuana sold via dispensaries or other
facilities, or cultivated by any facilities, that are licensed
pursuant to Part 5 (commencing with Section 18100) of Division 7 of
the Business and Professions Code.
(b) In consultation with outside entities at its discretion,
develop a list of certified testing laboratories that can perform
uniform testing in compliance with this article, and post that list
on its Internet Web site.
111660. (a) Licensees licensed pursuant to Part 5 (commencing
with Section 18100) of Division 7 of the Business and Professions
Code shall bear the responsibility for contracting with certified
testing laboratories for regular, systematic testing of
representative samples of all marijuana cultivated or intended for
sale or distribution, and shall bear the cost of that testing.
(b) Licensees licensed pursuant to Part 5 (commencing with Section
18100) of Division 7 of the Business and Professions Code shall
provide results of test reports to local code enforcement officers,
any other locally designated enforcement entity, and the
department bureau both on a quarterly basis and
upon request.
111661. Quality assurance protocols shall be required between all
licensed cultivation sites or licensed processing facilities and
licensed dispensing facilities to guarantee safe and reliable
medicinal marijuana delivery to all patients. These quality assurance
protocols shall include:
(a) Providing of supplier information to dispensaries in order for
recall procedures to be implemented, if and when necessary.
(b) Safety testing of all marijuana prior to packaging for sale
and patient exposure to identify and eliminate microbiological
contaminants and chemical residue.
(c) Labeling of all marijuana and marijuana products that shall,
at a minimum, include the following:
(1) Clear dosage in total milligrams delivered for all products.
(2) Clear indication, in bold font, that the product contains
marijuana.
(3) Tetrahydrocannabinol (THC) and cannabidiol (CBD) content.
111662. For purposes of this article, edible marijuana products
are deemed to be unadulterated food products. In addition to the
quality assurance standards provided in Section 111661, all edible
marijuana products shall comply with the following requirements:
(a) Baked edible marijuana products (such as brownies, bars,
cookies, and cakes), tinctures, and other edible marijuana products
that do not require refrigeration or hot holding may be manufactured,
sold, or otherwise distributed at facilities licensed pursuant to
Part 5 (commencing with Section 18100) of Division 7 of the Business
and Professions Code.
(b) Licensed marijuana facilities shall have an owner or employee
who has successfully passed an approved and accredited food safety
certification examination as specified in Sections 113947.1,
113947.2, and 113947.3 of the Health and Safety Code prior to
selling, manufacturing, or distributing edible marijuana products
requiring refrigeration or hot holding.
(c) Individuals' manufacturing or selling edible marijuana
products shall thoroughly wash their hands before commencing
production and before handling finished edible marijuana products.
(d) All edible marijuana products shall be individually wrapped at
the original point of preparation. All edible marijuana products
shall be packaged in a fashion that does not exceed a single
individual serving size.
(e) Products containing tetrahydrocannabinol (THC) shall be
prepared in compliance with maximum potency standards for THC and THC
concentrates set forth in the department's
bureau's regulations.
(f) Prior to sale or distribution at a licensed dispensing
facility, edible marijuana products shall be labeled and in an opaque
and tamper evident package. Labels and packages of edible marijuana
products shall meet the following requirements:
(1) Edible marijuana packages and labels shall not be made to be
attractive to children.
(2) All edible marijuana product labels shall include the
following information, prominently displayed and in a clear and
legible font:
(A) Manufacture date.
(B) The statement "KEEP OUT OF REACH OF CHILDREN."
(C) The statement "FOR MEDICAL USE ONLY."
(D) Net weight of marijuana in package.
(E) A warning, if nuts or other known allergens are used, and
shall include the total weight, in ounces or grams, of marijuana in
the package.
(F) Tetrahydrocannabinol (THC) and cannabidiol (CBD) content.
(g) Photos or images of food are not allowed on edible marijuana
product packages or labels.
(h) Only generic food names may be used to describe edible
marijuana products. For example, "snickerdoodle" may not be used to
describe a cinnamon cookie.
SEC. 6. Chapter 3.8 (commencing with Section
7295) is added to Part 1.7 of Division 2 of the Revenue and Taxation
Code, to read:
CHAPTER 3.8. MEDICAL MARIJUANA
7295. (a) In addition to any authority otherwise provided by law,
the legislative body of any county may levy a tax on the privilege
of cultivating, dispensing, producing, processing, preparing,
storing, providing, or distributing marijuana or products containing
marijuana.
(b) The tax may be levied for general governmental purposes or for
specific purposes specified by the legislative body.
(c) The legislative body shall specify the activities subject to
the tax, the applicable rate or rates, the method of apportionment,
and manner of collection of the tax. A tax imposed pursuant to this
section is a tax and not a fee or special assessment, and there is no
requirement that the tax be apportioned on the basis of benefit to
any property or be applied uniformly to all taxpayers or all real
property. The tax imposed pursuant to this section may be based on
any reasonable basis as determined by the legislative body.
(d) In addition to any other method of collection authorized by
law, the legislative body may provide for 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.
(e) The tax may be imposed upon any or all of the activities set
forth in subdivision (a), regardless of whether the activity is
undertaken individually, collectively, or cooperatively, and
regardless of whether the activity is undertaken for compensation or
without compensation or profit, as determined by the legislative
body.
(f) Any tax levied pursuant to this section shall be subject to
any applicable voter approval requirement imposed by any other
provision of law.
(g) The tax, when levied by the legislative body of a county,
shall apply throughout the entire county or within the unincorporated
area of the county, as specified by the legislative body.
(h) For purposes of this section, "marijuana" means marijuana, as
defined by Section 11018 of the Health and Safety Code.
(i) This section is declaratory of existing law, and 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 provided by other
provisions of law.
SEC. 7. 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. 8. The Legislature finds and declares that
Section 4 of this act imposes a limitation on the public's right of
access to the meetings of public bodies or the writings of public
officials and agencies within the meaning of Section 3 of Article I
of the California Constitution. Pursuant to that constitutional
provision, the Legislature makes the following findings to
demonstrate the interest protected by this limitation and the need
for protecting that interest:
The limitation imposed under this act is necessary for purposes of
compliance with the federal Health Insurance Portability and
Accountability Act (42 U.S.C. Sec. 1320d et seq.), the
Confidentiality of Medical Information Act (Part 2.6 (commencing with
Section 56) of Division 1 of the Civil Code), and the Insurance
Information Privacy Protection Act (Article 6.6 (commencing with
Section 79) of Chapter 1 of Part 2 of Division 1 of the Insurance
Code).
SEC. 7. SEC. 9. No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because the only costs that may be incurred
by a local agency or school district will be incurred because 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.
