Bill Text: CA SB643 | 2015-2016 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Medical marijuana.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2015-10-09 - Chaptered by Secretary of State. Chapter 719, Statutes of 2015. [SB643 Detail]
Download: California-2015-SB643-Amended.html
Bill Title: Medical marijuana.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2015-10-09 - Chaptered by Secretary of State. Chapter 719, Statutes of 2015. [SB643 Detail]
Download: California-2015-SB643-Amended.html
BILL NUMBER: SB 643 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 17, 2015
AMENDED IN SENATE JUNE 3, 2015
AMENDED IN SENATE MAY 6, 2015
AMENDED IN SENATE APRIL 6, 2015
INTRODUCED BY Senator McGuire
FEBRUARY 27, 2015
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
amend Section 11362.775 of, and to add Article 8 (commencing with
Section 111658) to Chapter 6 of Part 5 of Division 104 of, the Health
and Safety Code, relating to medical marijuana.
LEGISLATIVE COUNSEL'S DIGEST
SB 643, as amended, McGuire. Medical marijuana.
(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 establish within the Business, Consumer Services,
and Housing Agency the Office of Medical Marijuana Regulation, under
the supervision and control of the Chief of the Office of Medical
Marijuana Regulation, and, beginning no later than July 1, 2018,
would require the office to license and regulate dispensing
facilities, cultivation sites, transporters, and manufacturers of
medical marijuana and medical marijuana products, subject to local
ordinances. The bill would require a background check of applicants
for licensure, as defined, to be administered by the Department of
Justice, and submission of a statement signed by an applicant, under
penalty of perjury, that the information on his or her application is
true, thereby creating a crime and imposing a state-mandated local
program. Violation of the provisions related to applying for a
conditional license would be punishable by a civil fine of up to
$35,000 for each individual violation, or as otherwise specified.
The bill would make conditional licenses subject to the
restrictions of the local jurisdiction in which the facility operates
or proposes to operate. The bill would authorize a facility or
entity that is operating in conformance with local zoning ordinances
and other state and local requirements on January 1, 2016, to
continue its operations until its application for conditional
licensure is approved or denied. The bill would set forth provisions
related to the transportation, testing, and distribution of medical
marijuana and medical marijuana products . 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.
The bill would establish the Medical Marijuana Regulation Fund and
would require the deposit of specified fees collected pursuant to
this act into the fund. The bill would make moneys from the fund
available upon appropriation to the office for the purposes of
administering this act. The bill would also establish the Special
Account for Environmental Enforcement within the Medical Marijuana
Regulation Fund. This account would contain money from
fees assessed against licensed cultivation sites and would be
available upon appropriation for the enforcement of environmental
regulations relating to licensed cultivation sites. The bill would
require the deposit of penalty moneys collected pursuant to this bill
into the General Fund.
The bill would require, among other things, that all marijuana
grown, produced, distributed, and sold in the state meet the
certified organic standards state, by January
1, 2022, meet standards equivalent to those for
certified organic crops and that the bureau
office establish "appellations of origin" for marijuana
grown in the state.
The bill would provide that it shall not supersede provisions of
Measure D, as approved by the voters of the City of Los Angeles, or
other similar measures, as specified.
The bill would establish enforcement procedures and would
authorize a city, county, or city and county to administer and
enforce these provisions. The bill, by July 1, 2017, would require
the office to report to the Legislature on the feasability
feasibility of developing a program to certify
laboratories for the testing of medical marijuana and related
products and the feasability feasibility
of developing a labeling requirement for edible marijuana
products, as specified. The bill would further set forth provisions
regulating edible medical 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,
the bill would impose a state-mandated local program.
The bill would provide that specified acts of recommending
marijuana for medical purposes 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 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 a city, county, or city and
county, county by ordinance, to impose a tax on
the privilege of cultivating, dispensing, producing, processing,
preparing, storing, providing, donating, selling, or distributing
medical marijuana by an entity issued a conditional
license. 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) Existing law exempts qualified patients, persons with valid
identification cards, and the designated primary caregivers of
qualified patients and persons with identification cards from certain
crimes, including possession of concentrated cannabis and marijuana,
cultivation of marijuana, and possession of marijuana for sale.
This bill, after July 1, 2017, 2018,
would also exempt from those crimes an employee, officer, or board
member of a licensed cultivation site or a licensed dispensing
facility, except as specified.
(5) Existing law imposes sales and use taxes, as specified, to be
collected by the State Board of Equalization.
This bill would require the State Board of Equalization, on or
before July 1, 2016, to compile a report that includes the actual tax
collected on the sale of medical marijuana, using the most current
data available, and the expected tax revenues, under the existing tax
structure, for the years 2016 to 2021, inclusive, and to submit that
report to the Legislature and Governor's Office.
(6) This bill would provide that its provisions are severable.
(7) 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.
(8) 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. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. This act shall be known, and may be cited, as the
Medical Marijuana Public Safety and Environmental Protection Act.
SEC. 2. 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 that act would 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 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 and Wellness
Center, 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 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 and local governments
to license these dispensaries and other facilities for the purpose
of adopting and enforcing protocols for security standards at
dispensaries and in the transportation of medical marijuana, as well
as health and safety standards to ensure patient safety. 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) Greater oversight, uniformity, and enforcement are urgently
needed regarding the obligations and rights of medical marijuana
cultivators, transporters, and distribution facilities.
(i) Marijuana has widely accepted medical applications that make
it inappropriate to be classified as a Schedule I controlled
substance in the State of California.
(j) For the protection of Californians, the state must act to
regulate and control commercial medical marijuana and not preempt
local government ordinances. Counties should be allowed to impose
local taxes and enact zoning regulations and other restrictions
applicable to the cultivation, transportation, and distribution of
medical marijuana based on local needs.
(k) For the protection of California's environment and its natural
resources, all efforts must be made to prevent and mitigate the
harmful environmental impacts that can be associated with some
marijuana cultivation.
(l) Illegal trespass grows on private and public property pose a
threat to public safety and the environment.
(m) The North Coast Regional Water Quality Control Board is
currently in the process of promulgating regulations that would
create a 3-tiered system for cultivator wastewater discharge permits.
A similar permitting system would assist the state in controlling
damaging wastewater runoff from cultivation sites, while minimizing
the burden on smaller cultivators.
(n) Nothing in this act shall have a diminishing effect on the
rights and protections granted to a patient or primary caregiver
pursuant to the Compassionate Use Act of 1996.
(o) Nothing in this act shall be construed to promote or
facilitate the nonmedical, recreational possession, sale, or use of
marijuana.
SEC. 3. 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. 4. 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
issued a conditional license 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 Medical Board of California 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 medical
marijuana.
2525.2. 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. 5. Part 5 (commencing with Section 18100) is added to
Division 7 of the Business and Professions Code, to read:
PART 5. Medical Marijuana
CHAPTER 1. GENERAL PROVISIONS
18100. For purposes of this part, the following definitions shall
apply:
(a) "Chief" means the Chief of the Office of Medical Marijuana
Regulation.
(b) "Dispensary" means a distribution operation that provides
medical marijuana or medical marijuana derived products to patients
and caregivers.
(c) "Fund" means the Medical Marijuana Regulation Fund established
pursuant to Section 18118.
(d) "Licensed cultivation site" means a facility that plants,
grows, cultivates, harvests, dries, or processes medical marijuana
and that is issued both a conditional license pursuant to
this part and a local license or permit .
(e) "Licensed dispensing facility" means a dispensary or other
facility that provides medical marijuana, medical marijuana products,
or devices for the use of medical marijuana or medical marijuana
products that is issued both a conditional license
pursuant to this part and a local license or permit .
(f) "Licensed manufacturer" means a person who extracts, prepares,
derives, produces, compounds, or repackages medical marijuana or
medical marijuana products into consumable and nonconsumable forms
and that is issued both a conditional license pursuant to
this part and a local licen se or permit .
(g) "Licensed transporter" means an individual or entity issued
both a conditional license by the office and a local
license or permit to transport medical marijuana to and from
facilities that have been issued conditional licenses pursuant to
this part or medical marijuana products above a quantity limit
established by the office.
(h) "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.
(i) "Office" means the Office of Medical Marijuana Regulation in
the Business, Consumer Affairs, and Housing Agency.
18101. (a) There is hereby created in the Business, Consumer
Affairs, and Housing Agency the Office of Medical Marijuana
Regulation, under the supervision and control of the Chief of the
Office of Medical Marijuana Regulation.
(b) Protection of the public shall be the highest priority for the
office in exercising its licensing, regulatory, and disciplinary
functions. Whenever the protection of the public is inconsistent with
other interests sought to be promoted, the protection of the public
shall be paramount.
(c) The office shall have the authority to issue, suspend, or
revoke conditional licenses for the cultivation, manufacture,
transportation, storage, distribution, and sale of medical marijuana
within the state and to collect fees in connection with these
actions. The office shall have the authority to create, issue,
suspend, or revoke other licenses in order to protect patient health
and the public and to facilitate the regulation of medical marijuana.
(d) (1) The Governor shall appoint the chief at a salary to be
fixed and determined by the secretary with the approval of the
Director of Finance. The chief shall serve in accordance
with the State Civil Service Act (Part 2 (commencing with Section
18500) of Division 5 of Title 2 of the Government Code).
(2) Appointment of the chief shall be subject to confirmation by
the Senate Committee on Rules.
(e) The duty of enforcing and administering this part shall be
vested in the chief. The chief may adopt and enforce those rules and
regulations that he or she determines are reasonably necessary to
carry out the purposes of this part and declaring the policy of the
office, including a system for the issuance of citations for
violations of this part, as specified in Section 18127.
(f) The chief, as necessary to carry out the provisions of this
part, and in accordance with the State Civil Service Act (Part 2
(commencing with Section 18500) of Division 5 of Title 2 of the
Government Code), may appoint and fix the compensation of personnel,
including, but not limited to, clerical, inspection, investigation,
and auditing personnel, as well as an assistant chief. These
personnel shall perform their respective duties under the supervision
and the direction of the chief.
(g) Every power granted to, or duty imposed upon, the chief under
this part may be exercised or performed in the name of the chief by a
deputy or assistant chief, subject to conditions and limitations
that the chief prescribes.
(h) The office shall exercise its authority pursuant to this part
consistent with Section 1 of the act that added this section and
consistent with the provisions of this part.
18102. Funds for the establishment and support of the office
shall be advanced as a loan from the General Fund and shall be repaid
by the initial proceeds from fees collected pursuant to this part or
any rule or regulation adopted pursuant to this part.
18103. The office shall have the authority necessary for the
implementation of this part, including, but not limited to, all of
the following:
(a) Establishing rules or regulations necessary to carry out the
purposes and intent of this part and to enable the office 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. These rules
and regulations shall not limit any authority of a city, county, or
city and county provided by law. For the performance of its duties,
the office 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.
(b) Issuing conditional licenses to persons for the cultivation,
manufacture, transportation, storage, distribution, and sale of
medical marijuana within the state.
(c) Setting application, licensing, and renewal fees for
conditional licenses issued pursuant to Section 18117.
(d) Establishing standards for the cultivation, manufacturing,
transportation, storage, distribution, provision, testing,
donation, and sale of medical marijuana and medical marijuana
products.
(e) Establishing procedures for the issuance, renewal, suspension,
denial, and revocation of conditional licenses.
(f) Enforcing the licensing and regulatory requirement of this
part, subject to the requirements of Section 18126.
(g) Imposing a penalty authorized by this part or any rule or
regulation adopted pursuant to this part.
(h) Taking action with respect to an application for a conditional
license in accordance with procedures established pursuant to this
part.
(i) Overseeing the operation of the Medical Marijuana Regulation
Fund and the Special Account for Environmental Enforcement,
established pursuant to Section 18118.
(j) Consulting with other state or local agencies, departments,
representatives of the medical marijuana community, or public or
private entities for the purposes of establishing statewide standards
and regulations.
18104. (a) On or before January 1, 2018, the office shall
promulgate regulations for implementation and enforcement of this
part, including, but not limited to, all of the following:
(1) Procedures for the issuance, renewal, suspension, denial, and
revocation of conditional licenses.
(2) Procedures for appeal of fines and the appeal of denial,
suspension, or revocation of conditional licenses.
(3) Application, licensing, and renewal forms and fees.
(4) A time period in which the office shall approve or deny an
application for a conditional license pursuant to this part.
(5) Qualifications for licensees.
(b) The office, in consultation with the Division of Labor
Standards Enforcement, shall adopt regulations establishing worker
safety standards for entities licensed pursuant to this part.
(c) The office shall not issue a conditional license unless the
applicant has met all of the requirements of this part, including the
requirements of subdivision (d) of Section 18110, and has
demonstrated compliance with all applicable agricultural
requirements, consumer protection requirements, food and product
safety requirements, and environmental requirements, including, but
not limited to, applicable water quality standards.
18104.5. (a) On or before April 1, 2016, the office shall convene
an advisory committee to advise the office on the development of
standards and regulations pursuant to this chapter. The advisory
committee shall recommend to the office the appropriate roles of each
state entity as it pertains to this chapter, and shall recommend
guidelines on communication and information sharing between state
entities, and with local agencies, for implementation of this
chapter.
(b) The advisory committee shall be comprised of gubernatorial and
legislative appointees, including, but not limited to,
representatives of the medical marijuana industry, appropriate local
and state agencies, appropriate local and state law enforcement,
physicians, environmental and public health experts, and medical
marijuana patient advocates.
(c) (1) The advisory committee shall submit a report on these
standards, determinations, and guidelines for implementation of this
chapter to the Legislature and state entities affected by this
chapter by August 1, 2016.
(2) The report submitted to the Legislature shall be submitted in
compliance with Section 9795 of the Government Code.
(3) The requirement for submitting a report imposed pursuant to
this subdivision is inoperative on January 1, 2020, pursuant to
Section 10231.5 of the Government Code.
18105. (a) The chief shall keep a complete record of all
facilities issued a conditional license.
(b) This record shall be made available on the office's Internet
Web site.
(c) The office shall not disclose information that the office
determines is sensitive and should not be publicly disclosed,
including, but not limited to, the address or location of cultivation
sites.
(d) Upon request, the office shall provide summary information on
all licensed, lice nsees,
including, but not limited to, the name of the licensee, the date the
license was issued, the status of the license, and the licensee's
mailing address.
18106. The office shall establish procedures to provide state and
local law enforcement, enforcement and state
and local agencies, upon their request, with 24-hour access to
information to verify a conditional license, track transportation
manifests, and track the inventories of facilities issued a
conditional license.
18107. 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, or any similar measure in other
jurisdictions, which grants medical 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 or other similar qualified immunity shall
continue to be subject to the ordinances and regulations of the
relevant local jurisdiction. Immunity granted by
Measure D shall be sufficient to comply with the requirement of local
approval for licensure pursuant to Section 18110.
CHAPTER 2. CONDITIONAL LICENSES
18108. The following persons are exempt from the requirement of
licensure under this part:
(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 or entity.
(b) A primary caregiver who cultivates, possesses, stores,
manufactures, transports, or provides marijuana exclusively for the
personal medical purposes to no more than five specified qualified
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. Nothing in this section
shall permit primary caregivers to organize themselves as
cooperatives or collectives of caregivers.
18109. (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
medical marijuana to a patient or caregiver other than at a licensed
dispensing facility or through delivery from 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 medical 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 manufacture medical
marijuana or medical marijuana products other than a licensed
manufacturer.
(d) A person other than a licensed transporter shall not transport
medical marijuana from one facility issued a conditional license to
another.
(e) A licensed manufacturer may obtain medical marijuana from a
licensed cultivator and may furnish medical marijuana products to a
licensed dispensary.
18110. (a) Beginning no later than July 1, 2018, the office shall
provide for and shall issue conditional licenses. Conditional
licenses shall be required for all activity authorized under this
chapter, including, but not limited to, cultivation, processing,
storage, transport, transportation, and
dispensing of medical marijuana.
(b) The issuance of a conditional license shall not, in and of
itself, authorize the recipient to begin business operations. The
conditional license shall certify, at a minimum, that the applicant
has paid the state conditional licensing fee, successfully passed a
criminal background check, and met the state residency requirements.
(c) A conditionally licensed facility shall not commence activity
under the authority of a conditional license until the applicant has
also obtained a license or permit from the local jurisdiction in
which he or she proposes to operate, following the requirements of
local ordinances.
(d) An applicant for a conditional license shall do all of
the following:
(1) Pay the fee or fees required by this part for each license
being applied for.
(2) Register with the office on forms prescribed by the chief. The
forms shall contain sufficient information to identify the licensee,
including all of the following:
(A) 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 property that will be used
by the applicant.
(B) The name, address, and date of birth of each principal officer
and board member.
(C) The address and telephone number of the proposed facility.
(D) In the case of a cultivation site, the GPS coordinates of the
site.
(3) Describe, in writing, the scope of business of the proposed
facility.
(4) Provide evidence that the applicant and owner have been legal
full-time residents of the state for not less than 12 months.
(5) Provide detailed operating procedures, in writing, for the
proposed facility, which shall include, but not be limited to,
procedures for facility and operational security, prevention of
diversion, employee screening, storage of medical marijuana,
personnel policies, and recordkeeping procedures.
(6) Provide evidence that the applicant has received all required
environmental permits, including compliance with the California
Environmental Quality Act, and wastewater discharge permits.
(7) Provide the applicant's fingerprint images. For purposes of
this paragraph, "applicant" means 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
property that will be used by the facility.
(A) The applicant shall electronically submit to the Department of
Justice 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 or federal convictions and arrests, and
information as to the existence and content of a record of state or
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 provide a response to the
office pursuant to paragraph (1) of subdivision (p) of Section 11105
of the Penal Code.
(C) The office 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 subparagraph (A).
(D) The Department of Justice shall charge the applicant a fee
sufficient to cover the reasonable cost of processing the requests
described in this paragraph.
(8) Provide a statement, signed by the applicant under penalty of
perjury, that the information provided is true.
(9) Provide any other information required by the office.
(e) Each location and each discrete use of a single location shall
require a conditional license. Each application for a conditional
license is separate and distinct, and the office may charge a
separate fee for each.
(f) A conditional license issued pursuant to this section shall be
valid for 12 months after the date of issuance. After the initial
12-month period, a conditional license may be renewed for a period of
36 24 months. The office shall
establish procedures for the renewal of a conditional license.
(g) Notwithstanding any other law, the office shall not issue a
conditional license to an individual or entity, or for a premise,
against whom there is a pending state or local administrative or
judicial proceeding, against whom there is an action initiated by a
city, county, or city and county under a local ordinance, or who has
been determined to have violated an applicable local ordinance.
(h) A facility or entity that is operating in conformance
compliance with local zoning ordinances and
other state and local requirements on January 1, 2016, may continue
its operations until its application for conditional licensure is
approved or denied pursuant to this part.
18111. (a) Upon receipt of the application materials and fee
required in Section 18110, the office, provided the applicant has not
committed an act or crime constituting grounds for the denial of
licensure under Section 18112, may issue the conditional license and
send a proof of issuance to the applicant.
(b) The chief shall, by regulation, prescribe conditions upon
which a person whose conditional license has previously been denied,
suspended, or revoked, may be issued a conditional license.
18112. (a) An application for a conditional license shall be
denied and a conditional license shall be suspended or revoked for a
past felony conviction for the possession for sale, sale,
manufacture, transportation, or cultivation of a controlled
substance, a 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. A conditional license shall not be
denied solely on the basis of a prior conviction for a felony that
was committed after the enactment of the Compassionate Use
Act, Act of 1996, but which would not be a
felony after the enactment of the measure that added this part. The
office, at its discretion, may issue a license to an applicant that
would be otherwise denied pursuant to this subdivision
subdivision, with the exception of the requirement of
having been issued a conditional license, if the applicant has
obtained a certificate of rehabilitation, pursuant to Section 4852.13
of the Penal Code.
(b) The chief, upon his or her determination, may deny, suspend,
or revoke a conditional license when a conditional licensee,
applicant, or employee, partner, officer, or member of an entity
conditionally licensed does any of the following:
(1) Making or authorizing in any manner or by any means a written
or oral statement that is untrue or misleading and that is known, or
that by exercise of reasonable care should be known, to be untrue or
misleading.
(2) Any other conduct that constitutes fraud.
(3) Conduct constituting gross negligence.
(4) Failure to comply with the provisions of this part, Article 8
(commencing with Section 111658) of Chapter 6 of Part 5 of Division
104 of the Health and Safety Code, or any rule or regulation adopted
pursuant to this part.
(5) Conduct that constitutes grounds for denial of licensure
pursuant to Chapter 2 (commencing with Section 480) of Division 1.5.
18113. (a) Upon denying, suspending, or revoking a conditional
license, the chief shall notify the applicant or licensee, in
writing, by personal service or mail addressed to the address of the
applicant or licensee set forth in the application. The applicant or
licensee shall be given a hearing within 30 days thereafter if he or
she files with the office a written request for hearing. Otherwise,
the denial, suspension, or revocation is deemed affirmed.
(b) All proceedings to deny, suspend, or revoke a conditional
license shall be conducted pursuant to Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the Government
Code.
18114. An application for or renewal of a conditional license
shall not be approved if the office determines any of the following:
(a) The applicant fails to meet the requirements of this part or
has had an applicable permit or license revoked or denied by an
applicable city, county, or city and county agency. If a local
government adopts an ordinance or resolution authorizing medical
marijuana to be cultivated, manufactured, stored, distributed, or
sold within its jurisdiction, it shall submit to the office
documentation detailing their renewal requirements.
(b) The applicant, or any of its officers, directors, owners,
members, or shareholders, is a minor.
(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, owners,
members, or shareholders has been sanctioned by the office, a city,
county, or city and county, for medical marijuana activities
conducted in violation of this part or any applicable local ordinance
or has had a license revoked in the previous five years.
(e) The proposed cultivation, processing, possession, storage,
manufacturing, testing, transporting, distribution, provision, or
sale of medical marijuana will violate any applicable local law or
ordinance.
(f) The applicant or the owner is unable to establish that he or
she has been a resident of the state for not less than 12 months.
18115. (a) In addition to the provisions of this part, a
conditional license shall be subject to the restrictions of the local
jurisdiction in which the facility operates or proposes to operate.
Even if a conditional 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.
(b) In addition to the provisions of this part, local
jurisdictions retain the power to assess fees and taxes, as
applicable, on facilities that are conditionally licensed pursuant to
this part and the business activities of those licensees.
18116. The office may adopt regulations to limit the number of
conditional licenses issued pursuant to this part upon a finding that
the otherwise unrestricted issuance of conditional licenses is
dangerous to the public health and safety.
CHAPTER 3. FEES
18117. (a) The conditional licensing fee shall be established by
the office at a level sufficient to fund the reasonable costs of all
of the following:
(1) Administrative costs incurred by the office in overseeing the
conditional licensing program, program and
establishing health and safety standards, and
certifying the required testing laboratories.
standards.
(2) Costs incurred by the office or the Department of Justice for
enforcement of the provisions of this part.
(3) Costs incurred by law enforcement and other public safety
entities for enforcing the provisions of this part in their
jurisdiction.
(b) In addition to the conditional licensing fee required pursuant
to subdivision (a), a cultivation facility shall be assessed a fee
in a sufficient amount to cover the reasonable regulatory costs of
enforcing the environmental impact provisions relating to those
cultivation facilities. This fee shall be distributed, as necessary
and in proportion to its regulatory function, between the following
agencies responsible for enforcing the regulations relating to the
environmental impact of licensed cultivation sites:
(1) The State Water Resources Control Board.
(2) The Department of Fish and Wildlife.
(3) The Department of Forestry and Fire Protection.
(4) The Department of Pesticide Regulation.
(5) The Department of Food and Agriculture.
(6) Local law enforcement.
18118. (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) Except as provided in subdivision (c), all fees collected
pursuant to this part shall be deposited into the Medical Marijuana
Regulation Fund. All moneys within the fund are available, upon
appropriation by the Legislature, to the office solely for the
purposes of fully funding and administering this part, including, but
not limited to, the costs incurred by the office for its
administrative expenses.
(c) The Special Account for Environmental Enforcement is hereby
established as an account within the Medical Marijuana Regulation
Fund. Notwithstanding Section 16305.7 of the Government Code, the
account shall include any interest and dividends earned on the money
in the account. All fees collected pursuant to subdivision (b) of
Section 18117 shall be deposited in this account. All moneys within
the fund are available, upon appropriation by the Legislature, to the
office for distribution to the entities listed in subdivision (b) of
Section 18117 to be used to enforce the environmental regulation of
licensed cultivation sites.
(d) All moneys collected as a result of penalties imposed under
this part shall be deposited directly into the General Fund, to be
available upon appropriation.
(e) The office 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.
18119. (a) A facility issued a conditional license shall not
acquire, cultivate, process, possess, store, manufacture, distribute,
sell, deliver, transfer, transport, or dispense medical 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, distribute, sell, deliver,
transfer, transport, or dispense medical marijuana plants or medical
marijuana products except through a licensed cultivation site or a
licensed manufacturer.
CHAPTER 4. TRANSPORTATION OF MEDICAL MARIJUANA
18120. (a) A licensed transporter shall ship only to facilities
issued a conditional license and only in response to a request for a
specific quantity and variety from those facilities.
(b) Prior to transporting medical marijuana or medical
marijuana products, a licensed transporter shall do both of the
following:
(1) Complete a shipping manifest using a form prescribed by the
office.
(2) Securely transmit a copy of the manifest to the licensee that
will receive the medical marijuana or medical marijuana
product, and to the office, 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 office upon request.
18121. (a) Transported medical marijuana and 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) A vehicle transporting medical marijuana or medical
marijuana products shall not have external markings or other
indications that it is transporting medical marijuana.
(c) A vehicle transporting medical marijuana products shall travel
directly from one licensed facility to another licensed facility
authorized to receive the shipment.
(d) The provisions of this section only apply to a licensed
transporter.
18122. (a) All transport vehicles carrying medical marijuana with
a retail value greater than ten thousand dollars ($10,000) shall be
staffed with a minimum of two employees. At least one transport team
member shall remain with the vehicle at all times when 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 when 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 office or law enforcement upon
request.
(d) This part shall not be construed to authorize or permit a
licensee to transport, or cause to be transported, medical marijuana
or medical marijuana products outside the state.
(e) The requirements of this section shall only apply to a
licensed transporter.
18123. A local jurisdiction shall not prevent transportation
through or to a facility issued a conditional license, by a
conditionally licensed transporter who acts in compliance with this
part.
CHAPTER 5. ENFORCEMENT
18124. A state agency is not required by this section to enforce
a city, county, city and county, or local law, ordinance, rule, or
regulation regarding the site or operation of a facility issued a
conditional license.
18125. The office may assist state taxation authorities in the
development of uniform policies for the state taxation of licensees.
18126. (a) The office may enforce all of the requirements of this
part, including any regulations adopted pursuant to this part.
(b) The office shall delegate the authority to enforce the
requirements of this part, including any regulations, to a city,
county, or city and county, upon request of that entity.
(c) Nothing in this part shall be interpreted to supersede or
limit existing local authority for law enforcement activity,
enforcement of local zoning requirements, or enforcement of local
licensing requirements.
(d) Nothing in this part shall be interpreted to require the
office to undertake local law enforcement responsibilities, enforce
local zoning requirements, or enforce local licensing requirements.
18127. (a) A willful violation of Section 18110, including an
attempt to falsify information on an application 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.
(b) A technical violation of Section 18110 shall, at the office's
discretion, be punishable by a civil fine of up to ten thousand
dollars ($10,000) for each individual violation.
18128. A district attorney, county counsel, city attorney,
or city prosecutor
prosecutor, the Attorney General, or the office 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 a rule promulgated pursuant to this part. The action shall
be brought in the county in which the violation occurred or is
threatened to occur. A 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 a local government to
take requisite enforcement actions pertaining to its own ordinances
or regulations.
18129. 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.
18130. This part shall not be construed to limit a law
enforcement agency's ability to investigate unlawful activity in
relation to a facility issued a conditional license.
CHAPTER 6. CULTIVATION SITES
18132. (a) The office shall notify local law enforcement of all
conditional licenses issues for cultivation sites in that
jurisdiction.
(b) A licensed cultivation site shall display the state license in
a manner so as to be available and easily read at the location.
18133. (a) No later than January 1, 2022, all medical marijuana
grown, produced, distributed, and sold in the state shall meet
the certified organic standards. standards
equivalent to those for certified organic crops. Certification shall
be by the office or an independent third party that contracts with
the office for the purpose of certifying medical marijuana as
organic.
(b) The office shall establish appellations of origin for
marijuana grown in California.
18134. The office shall work with county agricultural
commissioners, offices commissioners to provide
all the information and forms required for conditional licensure as a
cultivation site in a single location, including state licensure,
local requirements in that jurisdiction, and environmental
requirements.
CHAPTER 7. REGULATION OF MEDICAL MARIJUANA
18136. (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
medical 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. Marijuana is a Schedule I drug according to the
federal Controlled Substances Act. Activity related to marijuana use
is subject to federal prosecution, without protections provided by
state law.
(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.
18137. (a) A facility issued a conditional license shall
implement sufficient security measures to both deter and prevent
unauthorized entrance into areas containing medical
marijuana or medical marijuana products and theft of
medical marijuana or medical marijuana products at
those facilities. These security measures shall include, but not be
limited to, all of the following:
(1) Preventing individuals from remaining on the premises of the
facility if they are not engaging in activity expressly related to
the operations of the facility.
(2) Establishing limited access areas accessible only to
authorized facility personnel.
(3) Storing all finished medical marijuana and
medical marijuana products in a secured and locked room, safe,
or vault, and in a manner as to prevent diversion, theft, and loss,
except for limited amounts of marijuana used for display purposes,
samples, or immediate sale.
(b) A facility issued a conditional license shall notify
appropriate law enforcement authorities within 24 hours after
discovering any of the following:
(1) Significant discrepancies identified during inventory. The
level of significance shall be determined by the office.
(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.
18138. (a) A licensed cultivation site or licensed dispensing
facility shall display the conditional license in a manner so as to
be available and easily read at the location.
(b) The office shall notify local law enforcement of all
conditional licenses issued for cultivation sites, manufacturers, and
dispensaries in that jurisdiction.
18140. (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 office 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 an individual or private entity, except as
necessary for authorized employees of the state to perform official
duties pursuant to this part. shall be maintained in
accordance with Chapter 1 (commencing with Section 123100) of Part 1
of Division 106 of the Health and Safety Code, Part 2.6 (commencing
with Section 56) of Division 1 of the Civil Code, and other state and
federal laws relating to confidential patient information.
(b) (1) Nothing in this section shall preclude any of the
following:
(A) Office employees notifying state or local agencies about
information submitted to the office that the employee suspects is
falsified or fraudulent.
(B) Notifications from the office to state or local agencies of
apparent violations of this part or an applicable local ordinance.
(C) Verification of requests by state or local agencies to confirm
licenses and certificates issued by the office or other state
agency.
(D) Providing information requested pursuant to a court order or
subpoena issued by a court, 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.
18141. (a) The actions of a licensee, its employees, and its
agents, that are permitted pursuant to a conditional license and that
are conducted in accordance with the requirements of this part and
regulations adopted pursuant to 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,
its employees, and its agents, as permitted pursuant to a conditional
license, 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 law,
including, without limitation, Section 7 of Article XI of the
California Constitution.
18142. (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 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 conditional license. A licensee who has a conditional license for
more than one premises may keep all records at one of the
conditionally licensed premises. Required records shall be kept for a
period of seven years from the date of the transaction.
(b) The office or a local agency delegated the authority to
enforce the licensing requirements of this part may examine the books
and records of a conditional licensee and may visit and inspect the
premises of a conditional licensee, as the office or local agency
deems necessary to perform its duties under this part.
(c) Books or records requested by the office or a local agency
delegated the authority to enforce licensing requirements of this
part shall be provided by the conditional licensee no later than five
business days after the request is made.
(d) The office or a local agency delegated the authority to
enforce the licensing requirements of this part may enter and inspect
the premises of a facility issued a conditional license 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 a local
ordinance.
(e) If a licensee or an employee of a licensee refuses, impedes,
obstructs, or interferes with an inspection pursuant to subdivision
(d), the conditional license may be summarily suspended and the
office shall directly commence proceedings for the revocation of the
conditional license.
(f) If a licensee fails to maintain or provide the books and
records required pursuant to this section, the licensee shall be
subject to a civil fine of fifteen thousand dollars ($15,000) per
individual violation.
(g) The office or a local agency delegated the authority to
enforce the licensing requirement of this part may, at its
discretion, require a licensee to contract for an independent audit
of the records required under this section. The licensee shall be
liable for all costs associated with such an audit.
SEC. 6. Section 23028 is added to the Government Code, to read:
23028. (a) (1) A city, county, or city and county,
county may impose a tax on the privilege of
cultivating, dispensing, producing, processing, preparing, storing,
providing, donating, selling, or distributing medical
marijuana or medical marijuana products by a licensee
operating pursuant to Part 5 (commencing with Section 18100) of
Division 7 of the Business and Professions Code.
(2) The board of supervisors or city council
shall specify in the ordinance proposing the tax the activities
subject to the tax, the applicable rate or rates, the method of
apportionment, if necessary, and the manner of collection of the tax.
The tax may be imposed for general governmental purposes or for
purposes specified in the ordinance by the board of
supervisors or city council. supervisors.
(3) 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. A tax imposed pursuant to
this section is a tax and not a fee or special assessment. The board
of supervisors shall specify whether the tax applies throughout the
entire county or within the unincorporated area of the county.
(3)
(4) The tax authorized by this section may be imposed
upon any or all of the activities set forth in paragraph (1)
specified in the ordinance, 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 or city
council.
(b) A tax imposed pursuant to this section shall be subject to
applicable voter approval requirements imposed by law.
(c) For purposes of this section, "marijuana" has the same meaning
as the term "marijuana product" set forth in Section 111658 of the
Health and Safety Code.
(d) This section is declaratory of existing law and
does not limit or prohibit the levy or collection or
of any other fee, charge, or tax, or a license
or service fee or charge upon, or related to, the activities set
forth in subdivision (a) as otherwise provided by law,
including Section 37100.5. law. This section
shall not be construed as a limitation upon the taxing authority of a
city, county, or city and county as provided by
law.
(e) A tax imposed pursuant to this section is not a sales and use
tax subject to Part 1.5 (commencing with Section 7200) of Division 2
of the Revenue and Taxation Code or a transactions and use tax
subject to Chapter 2 (commencing with Section 7285) of Part 1.7 of
Division 2 of the Revenue and Taxation Code. This subdivision shall
not preclude imposition of any other tax authorized under this
section upon the privilege of selling, storing, using, or consuming
medical marijuana.
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
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) An individual employee, officer, or board member of a facility
issued a conditional license pursuant to Part 5 (commencing with
Section 18100) of Division 7 of the Business and Professions Code
shall not be subject to state criminal sanctions under Section 11357,
11358, 11359, 11360, 11366, 11366.5, or 11570 and any successor
statutes, based solely on holding a conditional license, for the
possession, cultivation, processing, packaging, storage,
transportation, sale, or distribution of medical marijuana to a
facility holding a conditional license pursuant to Part 5 (commencing
with Section 18100) of Division 7 of the Business and Professions
Code or directly to a qualified patient, a person with a valid
identification card, or the designated primary caregiver of a
qualified patient or person with a valid identification card, within
the state, unless the information contained on the licensing
paperwork is false or falsified, the license has been obtained by
means of fraud, or the person is otherwise in violation of Part 5
(commencing with Section 18100) of Division 7 of the Business and
Professions Code.
(c) This section shall not diminish the protections of Section
18141 of the Business and Professions Code.
SEC. 8. 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 purposes of
this article, the following definitions shall apply:
(a) "Edible medical marijuana product" means medical marijuana or
a medical marijuana-derived product that is ingested or meant to be
ingested through the mouth and into the digestive system.
(b) "Labor peace agreement" means an agreement between an entity
and a bona fide labor organization that, at a minimum, protects the
state's proprietary interests by prohibiting labor organizations and
members from engaging in picketing, work stoppages, boycotts, and any
other economic interference with the applicant's business. This
agreement means that the applicant has agreed not to disrupt efforts
by the bona fide labor organization to communicate with, and attempt
to organize and represent, the applicant's employees.
(c)
(b) "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.
(d)
(c) "Office" means the Office of Medical Marijuana
Regulation in the Business, Consumer Affairs, and Housing Agency.
(e) "Representative samples" means samples taken from each batch
or shipment of medical marijuana received from a licensed cultivation
site or any other source if intended for sale.
111659. On or before July 1, 2017, the office shall report to the
Legislature on the feasability feasibility
of developing a program to certify laboratories for the testing
of medical marijuana and related products and the
feasability feasibility of developing a labeling
requirement for edible marijuana products that incorporates
information on the cannabinoid content.
111660. (a) A facility
issued a conditional license pursuant to Part 5 (commencing with
Section 18100) of Division 7 of the Business and Professions Code
shall bear the responsibility for both of the following:
(1)
(a) Maintaining supplier information in order for
recall procedures to be implemented, if and when necessary.
(2)
(b) Labeling of all medical marijuana and medical
marijuana products that shall, at a minimum, include the following:
(A)
(1) List of pharmacologically active ingredients,
including, but not limited to, tetrahydrocannabinol (THC) and
cannabidiol (CBD) content, clear recommended dosage, and the
size or volume of the recommended dose. the quantity
of active ingredients per serving, and the total amount within the
package. For purposes of this paragraph, the office shall determine
the appropriate size of one serving.
(B)
(2) Clear indication, in bold font, that the product
contains medical marijuana.
(C)
(3) The statement "FOR MEDICAL USE ONLY. KEEP OUT OF
REACH OF CHILDREN AND ANIMALS" in bold print.
(D)
(4) Identification of the source and date of
cultivation and manufacture.
(E)
(5) The name and location of the dispensary providing
the product.
(F)
(6) The date of sale.
(G)
(7) Any other requirements set by the office.
111662. For purposes of this article, edible medical marijuana
products are deemed to be unadulterated food products. In addition to
the quality assurance standards provided in Section 111661, all
edible medical marijuana products shall comply with the following
requirements:
(a) Baked edible medical marijuana products, including, but not
limited to, brownies, bars, cookies, and cakes, tinctures, and other
edible medical marijuana products that do not require refrigeration
or hot holding may be manufactured, sold, or otherwise distributed at
facilities issued a conditional license pursuant to Part 5
(commencing with Section 18100) of Division 7 of the Business and
Professions Code.
(b) A facility issued a conditional license pursuant to Part 5
(commencing with Section 18100) of Division 7 of the Business and
Professions Code 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
prior to selling, manufacturing, or distributing edible medical
marijuana products requiring refrigeration or hot holding.
(c) Individuals manufacturing or selling edible medical marijuana
products shall thoroughly wash their hands before commencing
production and before handling finished edible medical marijuana
products.
(d) All edible medical marijuana products sold for direct
consumption and infused with marijuana concentrate shall be
individually wrapped at the original point of preparation.
(e) Products containing tetrahydrocannabinol (THC) shall be
prepared in compliance with maximum potency standards for THC and THC
concentrates set forth in the bureau's
office's regulations.
(f) Prior to sale or distribution at a licensed dispensing
facility, edible medical marijuana products shall be labeled and in
an opaque and a tamper evident package.
Labels and packages of edible medical marijuana products shall meet
the following requirements:
(1) Edible medical marijuana packages and labels shall not be made
to be attractive to children.
(2) All In addition to the labeling
requirements set forth in Section 111660, edible medical
marijuana product labels shall include the following information,
prominently displayed and in a clear and legible font:
(A) Manufacture date and source.
(B) The statement "KEEP OUT OF REACH OF CHILDREN AND ANIMALS" in
bold print.
(C) The statement "FOR MEDICAL USE ONLY."
(D)
(B) Net weight of medical marijuana in package.
(E)
(C) A warning if nuts or other known allergens are used
and shall include the total weight, in ounces or grams, of medical
marijuana in the package.
(F) List of pharmacologically active ingredients, including, but
not limited to, tetrahydrocannabinol (THC) and cannabidiol (CBD)
content, clear recommended dosage, and the size or volume of
recommended dose.
(G)
(D) Any other requirement set by the office.
(g) Photos or images of food are not allowed on edible medical
marijuana product packages or labels.
(h) Only generic food names may be used to describe edible medical
marijuana products.
111663. All facilities issued a conditional license pursuant to
Part 5 (commencing with Section 18100) of Division 7 of the Business
and Professions Code that conduct business related to food or
food-based products shall be subject to requirements equivalent to
those of the California Retail Food Code and other applicable laws,
as determined by the office.
SEC. 9. On or before July 1, 2016, the State Board of Equalization
shall compile a report on the estimated tax collected on the sale of
medical marijuana, using the most current data available. The report
should also include expected tax revenues, under the existing tax
structure, for the years 2016 to 2021, inclusive. This report shall
be submitted to the Legislature and the Governor's office pursuant to
Section 9795 of the Government Code.
SEC. 10. 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. 11. The Legislature finds and declares that Section 5 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 of 1996 (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 and Privacy Protection Act (Article 6.6 (commencing with
Section 791) of Part 2 of Division 1 of the Insurance Code).
SEC. 12. 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.
SEC. 13. The amendments made to Section 11362.775 of the Health
and Safety Code by this act shall become operative on July 1,
2017. 2018.
