Bill Text: CA SB94 | 2017-2018 | Regular Session | Amended
Bill Title: Cannabis: medicinal and adult use.
Spectrum: Committee Bill
Status: (Passed) 2017-06-27 - Chaptered by Secretary of State. Chapter 27, Statutes of 2017. [SB94 Detail]
Download: California-2017-SB94-Amended.html
Amended
IN
Assembly
June 09, 2017 |
Senate Bill | No. 94 |
Introduced by Committee on Budget and Fiscal Review |
January 11, 2017 |
LEGISLATIVE COUNSEL'S DIGEST
This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2017.
Digest Key
Vote:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
The Legislature finds and declares as follows:SEC. 2.
Chapter 3.5 (commencing with Section 19300) of Division 8 of the Business and Professions Code is repealed.SEC. 3.
The heading of Division 10 (commencing with Section 26000) of the Business and Professions Code is amended to read:DIVISION 10. MARIJUANA Cannabis
SEC. 4.
Section 26000 of the Business and Professions Code is amended to read:26000.
(a) This division shall be known, and may be cited, as the Medicinal and Adult-Use Cannabis Regulation and Safety Act.(a)
(b)
(c)
SEC. 5.
Section 26001 of the Business and Professions Code is amended to read:26001.
For purposes of this division, the following definitions shall apply:(1)The owner or owners of a proposed licensee. “Owner”
(2)If
(b)“Bureau” means
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
(m)
(n)
(o)
(p)
(q)
(r)
(s)“Marijuana” has the same meaning as in Section 11018 of the Health and Safety Code, except that it does not include marijuana that is cultivated, processed, transported, distributed, or sold for medical purposes under Chapter 3.5 (commencing with Section 19300) of Division 8.
(t)“Marijuana accessories” has the same meaning as in Section 11018.2 of the Health and Safety Code.
(u)“Marijuana products” has
(v)
(w)
(x)
(y)
(z)
(aa)
(bb)
(cc)
(dd)“Unreasonably impracticable” means that the measures necessary to comply with the regulations require such a high investment of risk, money, time, or any other resource or asset, that the operation of a marijuana establishment is not worthy of being carried out in practice by a reasonably prudent business person.
(ee)
SEC. 6.
Section 26010 of the Business and Professions Code is repealed.(a)The Bureau of Medical Marijuana Regulation established in Section 19302 is hereby renamed the Bureau of Marijuana Control. The director shall administer and enforce the provisions of this division in addition to the provisions of Chapter 3.5 (commencing with Section 19300) of Division 8. The director shall have the same power and authority as provided by subdivisions (b) and (c) of Section 19302.1 for purposes of this division.
(b)The bureau and the director shall succeed to and are vested with all the duties, powers, purposes, responsibilities, and jurisdiction vested in the Bureau of Medical Marijuana Regulation under Chapter 3.5 (commencing with Section 19300) of Division 8.
(c)In addition to the powers, duties, purposes, responsibilities, and jurisdiction referenced in subdivision (b), the bureau shall heretofore have the power, duty, purpose, responsibility, and jurisdiction to regulate commercial marijuana activity as provided in this division.
(d)Upon the effective date of this section, whenever “Bureau of Medical Marijuana Regulation” appears in any statute, regulation, or contract, or in any other code, it shall be construed to refer to the bureau.
SEC. 7.
Section 26010 is added to the Business and Professions Code, to read:26010.
There is in the Department of Consumer Affairs the Bureau of Cannabis Control, under the supervision and control of the director. The director shall administer and enforce the provisions of this division related to the bureau.SEC. 8.
Section 26010.5 is added to the Business and Professions Code, to read:26010.5.
(a) The Governor shall appoint a chief of the bureau, subject to confirmation by the Senate, at a salary to be fixed and determined by the Director of Consumer Affairs with the approval of the Director of Finance. The chief shall serve under the direction and supervision of the Director of Consumer Affairs and at the pleasure of the Governor.SEC. 9.
Section 26011 of the Business and Professions Code is amended to read:26011.
Neither the chief of the bureau nor any member of theSEC. 10.
Section 26011.5 is added to the Business and Professions Code, to read:26011.5.
The protection of the public shall be the highest priority for all licensing authorities in exercising licensing, regulatory, and disciplinary functions under this division. Whenever the protection of the public is inconsistent with other interests sought to be promoted, the protection of the public shall be paramount.SEC. 11.
Section 26012 of the Business and Professions Code is amended to read:26012.
(a) It being a matter of statewide concern, except as otherwise authorized in this division:(c)
SEC. 12.
Section 26013 of the Business and Professions Code is amended to read:26013.
(a) Licensing authorities shall make and prescribe reasonable rules and regulations as may be necessary to implement, administer and enforce their respective duties under this division in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.(b)Licensing authorities may prescribe, adopt, and enforce any
SEC. 13.
Section 26013.5 is added to the Business and Professions Code, to read:26013.5.
Notice of any action of a licensing authority required by this division to be given may be signed and given by the director of the licensing authority or an authorized employee of the licensing authority and may be made personally or in the manner prescribed by Section 1013 of the Code of Civil Procedure, or in the manner prescribed by Section 124 of this code.SEC. 14.
Section 26014 of the Business and Professions Code is amended to read:26014.
(a) The bureau shall convene an advisory committee to advise theSEC. 15.
Section 26030 of the Business and Professions Code is amended to read:26030.
Grounds for disciplinary actionSEC. 16.
Section 26031 of the Business and Professions Code is amended to read:26031.
(a) Each licensing authority maySEC. 17.
Section 26032 of the Business and Professions Code is repealed.Each licensing authority may take disciplinary action against a licensee for any violation of this division when the violation was committed by the licensee’s agent or employee while acting on behalf of the licensee or engaged in commercial marijuana activity.
SEC. 18.
Section 26032 is added to the Business and Professions Code, to read:26032.
(a) The actions of a licensee, its employees, and its agents are not unlawful under state law and shall not be an offense subject to arrest, prosecution, or other sanction under state law, or be subject to a civil fine or be a basis for seizure or forfeiture of assets under state law if they are all of the following:SEC. 19.
Section 26033 of the Business and Professions Code is repealed.Upon suspension or revocation of a license, the licensing authority shall inform the bureau. The bureau shall then inform all other licensing authorities.
SEC. 20.
Section 26033 is added to the Business and Professions Code, to read:26033.
(a) A qualified patient, as defined in Section 11362.7 of the Health and Safety Code, who cultivates, possesses, stores, manufactures, or transports cannabis exclusively for his or her personal medical use but who does not provide, donate, sell, or distribute cannabis to any other person is not thereby engaged in commercial cannabis activity and is therefore exempt from the licensure requirements of this division.SEC. 21.
Section 26034 of the Business and Professions Code is repealed.Accusations against licensees under this division shall be filed within the same time limits as specified in Section 19314 or as otherwise provided by law.
SEC. 22.
Section 26034 is added to the Business and Professions Code, to read:26034.
All accusations against licensees shall be filed by the licensing authority within five years after the performance of the act or omission alleged as the ground for disciplinary action; provided, however, that the foregoing provision shall not constitute a defense to an accusation alleging fraud or misrepresentation as a ground for disciplinary action. The cause for disciplinary action in that case shall not be deemed to have accrued until discovery, by the licensing authority, of the facts constituting the fraud or misrepresentation, and, in that case, the accusation shall be filed within five years after that discovery.SEC. 23.
Section 26038 of the Business and Professions Code is amended to read:26038.
(a) A person engaging in commercialSEC. 24.
Section 26040 of the Business and Professions Code is amended to read:26040.
(a) (1) There is established in state government a Cannabis Control Appeals Panel which shall consist of the following members:(a)There is established in state government a Marijuana Control Appeals Panel which shall consist of three members appointed by the Governor and subject to confirmation by a majority vote of all of the members elected to the Senate. Each
SEC. 25.
Section 26043 of the Business and Professions Code is amended to read:26043.
(a) After proceedings pursuant to Section 26031 or 26058 or Chapter 2 (commencing with Section 480) or Chapter 3 (commencing with Section 490) of Division 1.5, any person aggrieved by the decision of a licensing authority denying the person’s application for any license, denying the person’s renewal of any license, placing any license on probation, imposing any condition on any license, imposing any fine on any license, assessing any penalty on any license, or canceling, suspending, revoking, or otherwise disciplining any license as provided for under this division, may appeal the licensing authority’s written decision to the panel.(a)When any person aggrieved thereby appeals from a decision of the bureau or any licensing authority ordering any penalty assessment, issuing, denying, transferring, conditioning, suspending or revoking any license provided for under this division, the
(b)
SEC. 26.
Section 26044 of the Business and Professions Code is amended to read:26044.
(a) In appeals where the panel finds that there is relevant evidence which, in the exercise of reasonable diligence, could not have been produced or which was improperly excluded at the hearing before theSEC. 27.
Section 26045 of the Business and Professions Code is repealed.Orders of the panel shall be subject to judicial review under Section 1094.5 of the Code of Civil Procedure upon petition by the bureau or licensing authority or any party aggrieved by such order.
SEC. 28.
Section 26045 is added to the Business and Professions Code, to read:26045.
(a) No court of this state, except the Supreme Court and the courts of appeal to the extent specified in this chapter, shall have jurisdiction to review, affirm, reverse, correct, or annul any order, rule, or decision of a licensing authority or to suspend, stay, or delay the operation or execution thereof, or to restrain, enjoin, or interfere with a licensing authority in the performance of its duties, but a writ of mandate shall lie from the Supreme Court or the courts of appeal in any proper case.SEC. 29.
Section 26046 is added to the Business and Professions Code, to read:26046.
(a) The review by the court shall not extend further than to determine, based on the whole record of the licensing authority as certified by the panel, whether:SEC. 30.
Section 26047 is added to the Business and Professions Code, to read:26047.
The findings and conclusions of the licensing authority on questions of fact are conclusive and final and are not subject to review. Those questions of fact shall include ultimate facts and the findings and conclusions of the licensing authority. The panel, the licensing authority, and each party to the action or proceeding before the panel shall have the right to appear in the review proceeding. Following the hearing, the court shall enter judgment either affirming or reversing the decision of the licensing authority, or the court may remand the case for further proceedings before or reconsideration by the licensing authority.SEC. 31.
Section 26050 of the Business and Professions Code is amended to read:26050.
(a) The license classification pursuant to this division shall, at a minimum, be as follows:(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(e)Notwithstanding subdivision (c), a licensing authority may issue a temporary license for a period of less than 12 months. This subdivision shall cease to be operative on January 1, 2019.
SEC. 32.
Section 26050.1 is added to the Business and Professions Code, to read:26050.1.
(a) Notwithstanding subdivision (c) of Section 26050, until January 1, 2019, a licensing authority may, in its sole discretion, issue a temporary license if the applicant submits all of the following:SEC. 33.
Section 26051 of the Business and Professions Code is repealed.(a)In determining whether to grant, deny, or renew a license authorized under this division, a licensing authority shall consider factors reasonably related to the determination, including, but not limited to, whether it is reasonably foreseeable that issuance, denial, or renewal of the license could:
(1)Allow unreasonable restraints on competition by creation or maintenance of unlawful monopoly power;
(2)Perpetuate the presence of an illegal market for marijuana or marijuana products in the state or out of the state;
(3)Encourage underage use or adult abuse of marijuana or marijuana products, or illegal
diversion of marijuana or marijuana products out of the state;
(4)Result in an excessive concentration of licensees in a given city, county, or both;
(5)Present an unreasonable risk of minors being exposed to marijuana or marijuana products; or
(6)Result in violations of any environmental protection laws.
(b)A licensing authority may deny a license or renewal of a license based upon the considerations in subdivision (a).
(c)For purposes of this section, “excessive concentration” means when the premises for a retail license, microbusiness license, or a license issued under Section 26070.5 is located in an area where either of the following conditions exist:
(1)The ratio of a licensee to population in the census tract or census division in which the applicant premises are located exceeds the ratio of licensees to population in the county in which the applicant premises are located, unless denial of the application would unduly limit the development of the legal market so as to perpetuate the illegal market for marijuana or marijuana products.
(2)The ratio of retail licenses, microbusiness licenses, or licenses under Section 26070.5 to population in the census tract, division or jurisdiction exceeds that allowable by local ordinance adopted under Section 26200.
SEC. 34.
Section 26051 is added to the Business and Professions Code, to read:26051.
(a) The Cartwright Act, the Unfair Practices Act, the Unfair Competition Law, and the other provisions of Part 2 (commencing with Section 16600) of Division 7 apply to all licensees regulated under this division.SEC. 35.
Section 26051.5 is added to the Business and Professions Code, to read:26051.5.
(a) An applicant for any type of state license issued pursuant to this division shall do all of the following:SEC. 36.
Section 26052 of the Business and Professions Code is amended to read:26052.
(a)(c)A licensing authority may enforce this section by appropriate regulation.
(d)
SEC. 37.
Section 26053 of the Business and Professions Code is amended to read:26053.
(a)SEC. 38.
Section 26054 of the Business and Professions Code is amended to read:26054.
(a) A licensee shall notSEC. 39.
Section 26054.1 of the Business and Professions Code is repealed.(a)No licensing authority shall issue or renew a license to any person that cannot demonstrate continuous California residency from or before January 1, 2015. In the case of an applicant or licensee that is an entity, the entity shall not be considered a resident if any person controlling the entity cannot demonstrate continuous California residency from and before January 1, 2015.
(b)Subdivision (a) shall cease to be operative on December 31, 2019, unless reenacted prior thereto by the Legislature.
SEC. 40.
Section 26054.2 of the Business and Professions Code is amended to read:26054.2.
(a) A licensing authority shall give priority in issuing licenses under this division to applicants that can demonstrate to the authority’s satisfaction that the applicant operated in compliance with the Compassionate Use Act of 1996 (Section 11362.5 of the Health and Safety Code) and its implementing laws before September 1,SEC. 41.
Section 26055 of the Business and Professions Code is amended to read:26055.
(a) Licensing authorities may issue state licenses only to qualified applicants.(c)Separate licenses shall be issued for each of the premises of any licensee having more than one location, except as otherwise authorized by law or regulation.
(d)
(e)
SEC. 42.
Section 26056 of the Business and Professions Code is repealed.An applicant for any type of state license issued pursuant to this division shall comply with the same requirements as set forth in Section 19322 unless otherwise provided by law, including electronic submission of fingerprint images, and any other requirements imposed by law or a licensing authority, except as follows:
(a)Notwithstanding paragraph (2) of subdivision (a) of Section 19322, an applicant need not provide documentation that the applicant has obtained a license, permit or other authorization to operate from the local jurisdiction in which the applicant seeks to operate;
(b)An application for a license under this division shall include evidence that the proposed location meets the
restriction in subdivision (b) of Section 26054; and
(c)For applicants seeking licensure to cultivate, distribute, or manufacture nonmedical marijuana or marijuana products, the application shall also include a detailed description of the applicant’s operating procedures for all of the following, as required by the licensing authority:
(1)Cultivation.
(2)Extraction and infusion methods.
(3)The transportation process.
(4)The inventory process.
(5)Quality control procedures.
(6)The source or sources of water the applicant will use for the licensed
activities, including a certification that the applicant may use that water legally under state law.
(d)The applicant shall provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy including aggregate square footage and individual square footage of separate cultivation areas, if any.
SEC. 43.
Section 26056.5 of the Business and Professions Code is repealed.The bureau shall devise protocols that each licensing authority shall implement to ensure compliance with state laws and regulations related to environmental impacts, natural resource protection, water quality, water supply, hazardous materials, and pesticide use in accordance with regulations, including but not limited to, the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code), lake or streambed alteration agreements (Chapter 6 (commencing with Section 1600) of Division 2 of the Fish and Game Code), the Clean Water Act (33 U.S.C. Sec. 1251 et seq.), the Porter-Cologne Water Quality Control Act (Division 7 (commencing with Section 13000) of the
Water Code), timber production zones, wastewater discharge requirements, and any permit or right necessary to divert water.
SEC. 44.
Section 26056 is added to the Business and Professions Code, to read:26056.
The requirements of Sections 13143.9, 13145, and 13146 of the Health and Safety Code shall apply to all licensees.SEC. 45.
Section 26057 of the Business and Professions Code is amended to read:26057.
(a) The licensing authority shall deny an application if either the applicant, or the premises for which a state license is applied, do not qualify for licensure under this division.SEC. 46.
Section 26058 of the Business and Professions Code is amended to read:26058.
Upon the denial of any application for a license, the licensing authority shall notify the applicant in writing. Within 30 days of service of the notice, the applicant may file a written petition for a license with the licensing authority. Upon receipt of a timely filed petition, the licensing authority shall set the petition for hearing. The hearing shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director of each licensing authority shall have all the powers granted therein. Any appeal from a final decision of the licensing authority shall be conducted in accordance with Chapter 4 (commencing with Section 26040).SEC. 47.
Section 26060 of the Business and Professions Code is amended to read:26060.
(a) Regulations issued by the Department of Food and Agriculture governing the licensing of indoor, outdoor, nursery, special cottage, and mixed-light cultivation sites shall apply to licensed cultivators under this division. The Department of Food and Agriculture shall have the authority necessary for the implementation of the regulations it adopts pursuant to this division, including regulations governing the licensing of indoor, outdoor, mixed-light cultivation site, nursery, and special cottage cultivation.(b)Standards developed by
(d)
(e)
SEC. 48.
Section 26060.1 is added to the Business and Professions Code, to read:26060.1.
(a) An application for a license for cultivation issued by the Department of Food and Agriculture shall identify the source of water supply as follows:SEC. 49.
Section 26061 of the Business and Professions Code is amended to read:26061.
(a) The state cultivator license types to be issued by the Department of Food and Agriculture under this division shall include(b)Except as otherwise provided by law,
(c)
(d)
(e)
SEC. 50.
Section 26062 of the Business and Professions Code is repealed.The Department of Food and Agriculture, in conjunction with the bureau, shall establish a certified organic designation and organic certification program for marijuana and marijuana products in the same manner as provided in Section 19332.5.
SEC. 51.
Section 26062 is added to the Business and Professions Code, to read:26062.
(a) No later than January 1, 2021, the Department of Food and Agriculture shall establish a program for cannabis that is comparable to the National Organic Program (Section 6517 of the federal Organic Foods Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.)), and the California Organic Food and Farming Act (Chapter 10 (commencing with Section 46000) of Division 17 of the Food and Agricultural Code) and Article 7 (commencing with Section 110810) of Chapter 5 of Part 5 of Division 104 of the Health and Safety Code. The Department of Food and Agriculture shall be the sole determiner of designation and certification.SEC. 52.
Section 26062.5 is added to the Business and Professions Code, to read:26062.5.
A person shall not represent, sell, or offer for sale any cannabis or cannabis product as organic except in accordance with the National Organic Program (Section 6517 of the federal Organic Foods Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.)), if applicable. A person shall not represent, sell, or offer for sale any cannabis or cannabis product with the designation or certification established by the Department of Food and Agriculture pursuant to subdivision (a) of Section 26062 except in accordance with that subdivision.SEC. 53.
Section 26063 of the Business and Professions Code is amended to read:26063.
(a)(b)Marijuana
(c)
SEC. 54.
Section 26064 of the Business and Professions Code is repealed.Each licensed cultivator shall ensure that the licensed premises do not pose an unreasonable risk of fire or combustion. Each cultivator shall ensure that all lighting, wiring, electrical and mechanical devices, or other relevant property is carefully maintained to avoid unreasonable or dangerous risk to the property or others.
SEC. 55.
Section 26065 of the Business and Professions Code is amended to read:26065.
An employee engaged in the cultivation ofSEC. 56.
Section 26066 of the Business and Professions Code is amended to read:26066.
Indoor and outdoorSEC. 57.
Section 26067 of the Business and Professions Code is repealed.(a)The Department of Food and Agriculture shall establish a Marijuana Cultivation Program to be administered by the Secretary of Food and Agriculture. The secretary shall administer this section as it pertains to the cultivation of marijuana. For purposes of this division, marijuana is an agricultural product.
(b)A person or entity shall not cultivate marijuana without first obtaining a state license issued by the department pursuant to this section.
(c)(1)The department, in consultation with, but not limited to, the bureau, the State Water Resources Control Board, and the Department of Fish and Wildlife, shall implement a unique identification program
for marijuana. In implementing the program, the department shall consider issues including, but not limited to, water use and environmental impacts. In implementing the program, the department shall ensure that:
(A)Individual and cumulative effects of water diversion and discharge associated with cultivation do not affect the instream flows needed for fish spawning, migration, and rearing, and the flows needed to maintain natural flow variability. If a watershed cannot support additional cultivation, no new plant identifiers will be issued for that watershed.
(B)Cultivation will not negatively impact springs, riparian wetlands and aquatic habitats.
(2)The department shall establish a program for the identification of permitted marijuana plants at a cultivation site during the cultivation period. A unique
identifier shall be issued for each marijuana plant. The department shall ensure that unique identifiers are issued as quickly as possible to ensure the implementation of this division. The unique identifier shall be attached at the base of each plant or as otherwise required by law or regulation.
(A)Unique identifiers will only be issued to those persons appropriately licensed by this section.
(B)Information associated with the assigned unique identifier and licensee shall be included in the trace and track program specified in Section 26170.
(C)The department may charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each marijuana plant.
(D)The department may promulgate regulations to
implement this section.
(3)The department shall take adequate steps to establish protections against fraudulent unique identifiers and limit illegal diversion of unique identifiers to unlicensed persons.
(d)Unique identifiers and associated identifying information administered by local jurisdictions shall adhere to the requirements set by the department and be the equivalent to those administered by the department.
(e)(1) This section does not apply to the cultivation of marijuana in accordance with Section 11362.1 of the Health and Safety Code or the Compassionate Use Act.
(2)Subdivision (b) does not apply to persons or entities licensed under either paragraph (3) of subdivision (a) of Section 26070 or subdivision (b) of Section 26070.5.
(f)“Department” for purposes of this section means the Department of Food and Agriculture.
SEC. 58.
Chapter 6.5 (commencing with Section 26067) is added to Division 10 of the Business and Professions Code, to read:CHAPTER 6.5. Unique Identifiers and Track and Trace
26067.
(a) The department, in consultation with the bureau, shall establish a track and trace program for reporting the movement of cannabis and cannabis products throughout the distribution chain that utilizes a unique identifier pursuant to Section 26069, secure packaging, and is capable of providing information that captures, at a minimum, all of the following:26068.
(a) The department, in consultation with the bureau and the State Board of Equalization, shall ensure that the track and trace program can also track and trace the amount of the cultivation tax due pursuant to Part 14.5 (commencing with Section 34010) of Division 2 of the Revenue and Taxation Code. The track and trace program shall include an electronic seed to sale software tracking system with data points for the different stages of commercial activity, including, but not limited to, cultivation, harvest, processing, distribution, inventory, and sale.26069.
(a) The department shall establish a Cannabis Cultivation Program to be administered by the secretary. The secretary shall administer this section as it pertains to the cultivation of cannabis. For purposes of this division, cannabis is an agricultural product.26069.1.
The secretary may enter into a cooperative agreement with a county agricultural commissioner or other state or local agency to assist the department in implementing the provisions of this division related to administration, investigation, inspection, fee collection, document management, education and outreach, distribution of individual licenses approved by the secretary, and technical assistance pertaining to the cultivation of cannabis. The department shall pay compensation under a cooperative agreement from fees collected and deposited pursuant to this division and shall provide reimbursement to a county agricultural commissioner, state, or local agency for associated costs. The secretary shall not delegate through a cooperative agreement, or otherwise, its authority to issue cultivation licenses to a county agricultural commissioner, local agency, or another state agency. The secretary shall provide notice of any cooperative agreement entered into pursuant to this section to other relevant state agencies involved in the regulation of cannabis cultivation. No cooperative agreement under this section shall relieve the department of its obligations under paragraph (2) of subdivision (a) of Section 26012 to administer the provisions of this division related to, and associated with, the cultivation of cannabis.26069.9.
For purposes of this chapter:SEC. 59.
Section 26070 of the Business and Professions Code is amended to read:26070.
Retailers and Distributors.(c)
SEC. 60.
Section 26070.1 is added to the Business and Professions Code, to read:26070.1.
Cannabis or cannabis products purchased by a customer shall not leave a licensed retail premises unless they are placed in an opaque package.SEC. 61.
Section 26070.5 of the Business and Professions Code is amended to read:26070.5.
(a) The bureau shall, by January 1,SEC. 62.
Section 26080 of the Business and Professions Code is amended to read:26080.
(a) This division shall not be construed to authorize or permit a licensee to transport or distribute, or cause to be transported or distributed,SEC. 63.
Section 26090 of the Business and Professions Code is amended to read:26090.
(a) Deliveries, as defined in this division, may only be made by a licensed retailer or microbusiness, or a licensed nonprofit under Section 26070.5.(b)
(c)
SEC. 64.
The heading of Chapter 10 (commencing with Section 26100) of Division 10 of the Business and Professions Code is amended to read:
CHAPTER
10. Manufacturers and Testing Laboratories
SEC. 65.
Section 26100 of the Business and Professions Code is repealed.The State Department of Public Health shall promulgate regulations governing the licensing of marijuana manufacturers and testing laboratories. Licenses to be issued are as follows:
(a)“Manufacturing Level 1,” for sites that manufacture marijuana products using nonvolatile solvents, or no solvents.
(b)“Manufacturing Level 2,” for sites that manufacture marijuana products using volatile solvents.
(c)“Testing,” for testing of marijuana and marijuana products. Testing licensees shall have their facilities or devices licensed according to regulations set forth by the department. A testing licensee shall not hold a license in another
license category of this division and shall not own or have ownership interest in a non-testing facility licensed pursuant to this division.
(d)For purposes of this section, “volatile solvents” shall have the same meaning as in subdivision (d) of Section 11362.3 of the Health and Safety Code unless otherwise provided by law or regulation.
SEC. 66.
Section 26101 of the Business and Professions Code is amended and renumbered to read:26101.26100.
(a) Except as otherwise provided by law,(b)
(c)
(d)
SEC. 67.
Section 26102 of the Business and Professions Code is repealed.A licensed testing service shall not handle, test, or analyze marijuana or marijuana products unless the licensed testing laboratory meets the requirements of Section 19343 or unless otherwise provided by law.
SEC. 68.
Section 26102 is added to the Business and Professions Code, to read:26102.
A testing laboratory shall not be licensed by the bureau unless the laboratory meets all of the following:SEC. 69.
Section 26103 of the Business and Professions Code is repealed.A licensed testing service shall issue a certificate of analysis for each lot, with supporting data, to report the same information required in Section 19344 or unless otherwise provided by law.
SEC. 70.
Section 26104 of the Business and Professions Code is amended to read:26104.
(a) A licensed testingSEC. 71.
Section 26106 of the Business and Professions Code is amended to read:26106.
Standards for theSEC. 72.
Section 26110 of the Business and Professions Code is repealed.(a)All marijuana and marijuana products shall be subject to quality assurance, inspection, and testing.
(b)All marijuana and marijuana products shall undergo quality assurance, inspection, and testing in the same manner as provided in Section 19326, except as otherwise provided in this division or by law.
SEC. 73.
Section 26110 is added to the Business and Professions Code, to read:26110.
(a) Cannabis batches are subject to quality assurance and testing prior to sale at a retailer, microbusiness, or nonprofit licensed under Section 26070.5, except for immature cannabis plants and seeds, as provided for in this division.SEC. 74.
Section 26120 of the Business and Professions Code is amended to read:26120.
(a) Prior to delivery or sale at a retailer,(1)Manufacture date and source.
(2)
(3)
(4)
(5)
(6)
(7)For marijuana products, a list of all ingredients and disclosure of nutritional information in the same manner as the federal nutritional labeling requirements in Section 101.9 of Title 21 of the Code of Federal Regulations.
(8)A list of any solvents, nonorganic pesticides, herbicides, and fertilizers that were used in the cultivation, production, and manufacture of such marijuana or marijuana product.
(9)
(10)
(11)
SEC. 75.
Section 26121 is added to the Business and Professions Code, to read:26121.
(a) A cannabis product is misbranded if it is any of the following:SEC. 76.
The heading of Chapter 13 (commencing with Section 26130) of Division 10 of the Business and Professions Code is amended to read:
CHAPTER
13. Marijuana Manufacturers and Cannabis Products
SEC. 77.
Section 26130 of the Business and Professions Code is amended to read:26130.
(a)(b)Marijuana,
SEC. 78.
Section 26131 is added to the Business and Professions Code, to read:26131.
(a) A cannabis product is adulterated if it is any of the following:SEC. 79.
Section 26132 is added to the Business and Professions Code, to read:26132.
(a) When the State Department of Public Health has evidence that a cannabis product is adulterated or misbranded, the department shall notify the manufacturer.SEC. 80.
Section 26133 is added to the Business and Professions Code, to read:26133.
(a) If the State Department of Public Health finds or has probable cause to believe that a cannabis product is adulterated or misbranded within the meaning of this division or the sale of the cannabis product would be in violation of this division, the department shall affix to the cannabis product, or component thereof, a tag or other appropriate marking. The State Department of Public Health shall give notice that the cannabis product is, or is suspected of being, adulterated or misbranded, or the sale of the cannabis would be in violation of this division and has been embargoed and that no person shall remove or dispose of the cannabis product by sale or otherwise until permission for removal or disposal is given by the State Department of Public Health or a court.SEC. 81.
Section 26134 is added to the Business and Professions Code, to read:26134.
(a) The State Department of Public Health may issue a citation, which may contain an order of abatement and an order to pay an administrative fine assessed by the department if the licensee is in violation of this division or any regulation adopted pursuant to it.SEC. 82.
Section 26135 is added to the Business and Professions Code, to read:26135.
A peace officer, including a peace officer within the State Department of Public Health or the bureau, may seize cannabis and cannabis products in any of the following circumstances:SEC. 83.
Section 26140 of the Business and Professions Code is amended to read:26140.
(a)SEC. 84.
Section 26150 of the Business and Professions Code is amended to read:26150.
For purposes of this chapter:SEC. 85.
Section 26151 of the Business and Professions Code is amended to read:26151.
(a) (1) All advertisements and marketing shall accurately and legibly identify the licensee responsible for itsSEC. 86.
Section 26152 of the Business and Professions Code is amended to read:26152.
SEC. 87.
Section 26153 of the Business and Professions Code is amended to read:26153.
SEC. 88.
Section 26154 of the Business and Professions Code is amended to read:26154.
SEC. 89.
Section 26155 of the Business and Professions Code is amended to read:26155.
(a) The provisions of subdivision (g) of Section 26152 shall not apply to the placement of advertising signs inside a licensed premises and which are not visible by normal unaided vision from a public place, provided that such advertising signs do not advertiseSEC. 90.
Section 26156 is added to the Business and Professions Code, to read:26156.
The requirements of Section 5272 apply to this division.SEC. 91.
Section 26160 of the Business and Professions Code is amended to read:26160.
(a) A licensee shall keep accurate records of commercialSEC. 92.
Section 26161 of the Business and Professions Code is amended to read:26161.
(a) Every sale or transport ofSEC. 93.
Section 26162 is added to the Business and Professions Code, to read:26162.
(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 or licensing authorities for the purposes of administering this chapter are confidential and shall not be disclosed pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), except as necessary for authorized employees of the State of California or any city, county, or city and county to perform official duties pursuant to this chapter, or a local ordinance.SEC. 94.
Section 26162.5 is added to the Business and Professions Code, to read:26162.5.
Information contained in a physician’s recommendation issued in accordance with Article 25 (commencing with Section 2525) of Chapter 5 of Division 2 and received by a licensee, including, but not limited to, the name, address, or social security number of the patient, the patient’s medical condition, or the name of the patient’s primary caregiver is hereby deemed “medical information” within the meaning of the Confidentiality of Medical Information Act (Part 2.6 (commencing with Section 56) of Division 1 of the Civil Code) and shall not be disclosed by a licensee except as necessary for authorized employees of the State of California or any city, county, or city and county to perform official duties pursuant to this chapter, or a local ordinance.SEC. 95.
Chapter 17 (commencing with Section 26170) of Division 10 of the Business and Professions Code is repealed.SEC. 96.
Section 26180 of the Business and Professions Code is amended to read:26180.
Each licensing authority shall establish a scale of application, licensing, and renewal fees, based upon the cost of enforcing this division, as follows:SEC. 97.
Section 26180.5 is added to the Business and Professions Code, to read:26180.5.
No later than January 1, 2018, the Secretary of Business, Consumer Services, and Housing or his or her designee shall initiate work with the Legislature, the Department of Consumer Affairs, the Department of Food and Agriculture, the State Department of Public Health, and any other related departments to ensure that there is a safe and viable way to collect cash payments for taxes and fees related to the regulation of cannabis activity throughout the state.SEC. 98.
Section 26181 of the Business and Professions Code is amended to read:26181.
The State Water Resources Control Board, the Department of Fish and Wildlife, and other agencies may establish fees to cover the costs of theirSEC. 99.
Section 26190 of the Business and Professions Code is amended to read:26190.
Beginning on March 1,SEC. 100.
Section 26190.5 is added to the Business and Professions Code, to read:26190.5.
The bureau shall contract with the California Cannabis Research Program, known as the Center for Medicinal Cannabis Research, and formerly known as the California Marijuana Research Program, authorized pursuant to Section 11362.9 of the Health and Safety Code, to develop a study that identifies the impact that cannabis has on motor skills.SEC. 101.
Section 26191 of the Business and Professions Code is amended to read:26191.
(a) Commencing January 1, 2019, and by January 1SEC. 102.
Section 26200 of the Business and Professions Code is amended to read:26200.
(a)(d)
SEC. 103.
Section 26202 of the Business and Professions Code is amended to read:26202.
(a) A local jurisdiction may enforce this division and the regulations promulgated bySEC. 104.
Section 26210 of the Business and Professions Code is amended to read:26210.
(a) The Marijuana Control Fund, formerly known as the Medical Cannabis Regulation and Safety Act FundSEC. 105.
Section 26210.5 is added to the Business and Professions Code, to read:26210.5.
By July 1, 2018, the bureau, in coordination with the Department of General Services, shall establish an office to collect fees and taxes in the County of Humboldt, County of Trinity, or County of Mendocino in order to ensure the safe payment and collection of cash in those counties.SEC. 106.
Section 26211 of the Business and Professions Code is amended to read:26211.
(a) Funds for the initial establishment and support of the regulatory activities under this division, including the public information program described in subdivision (c), and for the activities of the State Board of Equalization under Part 14.5 (commencing with Section 34010) of Division 2 of the Revenue and Taxation Code until July 1, 2017, or until the 2017 Budget Act is enacted, whichever occurs later, shall be advanced from the General Fund and shall be repaid by the initial proceeds from fees collected pursuant to this division, any rule or regulation adopted pursuant to this division, or revenues collected from the tax imposed by Sections 34011 and 34012 of the Revenue and Taxation Code, by January 1, 2025.SEC. 107.
Chapter 22 (commencing with Section 26220) is added to Division 10 of the Business and Professions Code, to read:CHAPTER 22. Cannabis Cooperative Associations
Article 1. Definitions
26220.
Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.26220.1.
“Association” means any cannabis cooperative that is organized pursuant to this chapter. An association shall be deemed incorporated pursuant to this chapter, or organized pursuant to this chapter and shall be deemed a cultivator of a cannabis product within the meaning of this chapter, if it is functioning under, or is subject to, the provisions of this chapter, irrespective of whether it was originally incorporated pursuant to those provisions or was incorporated under other provisions.26220.2.
“Member” includes members of associations without capital stock and holders of common stock in associations that are organized with shares of stock.26220.3.
“Cannabis product” includes any cannabis associated with a licensed cultivator.Article 2. General Provisions
26222.
The purpose of this chapter is to do all of the following:26222.1.
An exemption under law that applies to a cannabis product in the possession, or under the control, of the individual cultivator, shall apply similarly and completely to the cannabis product that is delivered by its cultivator members that are in the possession, or under the control, of the association.26222.2.
A person, firm, corporation, or association, that is hereafter organized or doing business in this state, may not use the word “cannabis cooperative” as part of its corporate name or other business name or title for producers’ cooperative marketing activities, unless it has complied with this chapter.26222.3.
An association that is organized pursuant to this chapter shall not conspire in restraint of trade, or serve as an illegal monopoly, attempt to lessen competition, or to fix prices in violation of law of this state.26222.4.
The marketing contracts and agreements between an association that is organized pursuant to this chapter and its members and any agreements authorized in this chapter shall not result in restraint of trade, or violation of law of this state.26222.5.
The General Corporation Law (Division 1 (commencing with Section 100) of Title 1 of the Corporations Code) applies to each association that is organized pursuant to this chapter, except where those provisions are in conflict with or inconsistent with the express provisions of this chapter. For the purpose of associations organized without shares of stock, the members shall be deemed to be “shareholders” as the term is used in the General Corporation Law.26222.6.
(a) Except as provided in subdivision (c), Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure does not apply to a proprietary interest in an association organized in accordance with this chapter. A proprietary interest that would otherwise escheat to the state pursuant to Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure shall instead become the property of the association.Article 3. Purposes
26223.
(a) Three or more natural persons, who are engaged in the cultivation of any cannabis product, may form an association pursuant to this chapter for the purpose of engaging in any activity in connection with any of the following:Article 4. Articles of Incorporation
26224.
The articles of incorporation of an association shall show that the signers of the articles of incorporation are engaged in the cultivation of cannabis products, and that they propose to incorporate an association pursuant to this chapter, and shall state all of the following:26224.1.
Articles of incorporation shall be signed, acknowledged, and filed in the manner that is prescribed by the general laws of this state for domestic corporations.26224.2.
The articles of incorporation of any association may be amended in the manner and for the purposes which are authorized by the General Corporation Law, Division 1 (commencing with Section 100) of Title 1 of the Corporations Code.Article 5. Bylaws
26225.
Each association shall, within 30 days after its incorporation, adopt for its government and management, a code of bylaws, consistent with this chapter. The vote or written assent of shareholders or members that hold at least a majority of the voting power is necessary to adopt the bylaws and is effectual to repeal or amend a bylaw, or to adopt an additional bylaw. The power to repeal and amend the bylaws, and adopt new bylaws, may, by a similar vote, or similar written assent, be delegated to the board of directors, which authority may, by a similar vote, or similar written assent, be revoked.26225.1.
The bylaws may prescribe the time, place, and manner of calling and conducting its meetings. Meetings of members or stockholders shall be held at the place as provided in the bylaws, or, if no provision is made, in the city, county, or city and county where the principal place of business is located at a place designated by the board of directors. Meetings of the board of directors may be held at any place within or without the state that is fixed by a quorum of the board of directors unless otherwise provided in the articles of incorporation or bylaws.26225.2.
The bylaws may prescribe the number of stockholders, directors, or members that constitutes a quorum.26225.3.
The bylaws may prescribe the following:26225.4.
(a) The bylaws may prescribe the qualifications, compensation, duties, and term of office of directors and officers and the time of their election.26225.5.
The bylaws may prescribe penalties for violations of the bylaws.26225.6.
The bylaws may prescribe the amount of entrance, organization, and membership fees, if any, the manner and method of collection of the fees, and the purposes for which they may be used.26225.7.
The bylaws may prescribe the amount that each member or stockholder shall be required to pay annually, or from time to time, if at all, to carry on the business of the association, the charge, if any, to be paid by each member or stockholder for services that are rendered by the association to him, the time of payment and the manner of collection, and the marketing contract between the association and its members or stockholders that every member or stockholder may be required to sign.26225.8.
The bylaws may prescribe the amount of dividends, if any, that may be declared on the stock or membership capital. To the extent that dividends are payable out of the excess of association income over association expenses attributable to business transacted with or for members, dividends shall not exceed 8 percent per annum.26225.9.
The bylaws may prescribe any of the following:26225.95.
(a) The bylaws may prescribe any of the following:Article 6. Directors and Management
26226.
The affairs of the association shall be managed by a board of not less than three directors who are elected by the members or stockholders.26226.1.
The bylaws may provide that the territory in which the association has members shall be divided into districts and that directors shall be elected from the several districts. If the bylaws divides the territory into districts for the election of directors, the bylaws shall specify the number of directors to be elected by each district and the manner and method of reapportioning the directors and of redistricting the territory covered by the association.26226.2.
The bylaws may provide that primary elections shall be held to nominate directors. If the bylaws provide that the territory in which the association has members shall be divided into districts, the bylaws may also provide that the results of the primary elections in the various districts shall be final and shall be ratified at the annual meeting of the association.26226.3.
The bylaws may provide that the territory in which the association has members shall be divided into districts, and that the directors shall be elected by representatives or advisers, who themselves have been elected by the members or stockholders from the several territorial districts. If the bylaws divide the territory into districts for the election of representatives or advisers who elect the directors, the bylaws shall specify the number of representatives or advisers to be elected by each district and the manner and method of reapportioning the representatives or advisers and of redistricting the territory that is covered by the association.26226.4.
The bylaws may provide that one or more directors may be chosen by a public official or commission or by the other directors selected by the members. The director shall represent primarily the interest of the general public in the association. The director shall have the same powers and rights as other directors. These directors shall not number more than one-fifth of the entire number of directors.26226.5.
The bylaws may provide for an executive committee and may allot to the committee all the functions and powers of the board of directors, subject to the general direction and control of the board.26226.6.
An association may provide a fair remuneration for the time that is actually spent by its officers and directors in its service and for the service of the members of its executive committee.26226.7.
If a vacancy on the board of directors occurs, except by expiration of term, the remaining members of the board, by a majority vote, shall fill the vacancy, unless the bylaws provide for an election of directors by districts. If the bylaws provide for an election of directors by districts, the vacancy shall be filled either by the election of a director from the district in which the vacancy occurs or by the board of directors calling a special meeting of the members or stockholders in that district to fill the vacancy.26226.8.
(a) The directors shall elect a president, one or more vice presidents, a secretary, a treasurer, and such other officers as may be prescribed by the bylaws. Any two or more offices, except those of president and secretary, may be held by the same person.26226.9.
(a) A member may bring charges against an officer or director by filing them in writing with the secretary of the association, together with a petition that is signed by 5 percent of the members, which requests the removal of the officer or director in question. The removal shall be voted upon at the next regular or special meeting of the association and, by a vote of a majority of the members, the association may remove the officer or director and fill the vacancy. The director or officer, against whom the charges have been brought, shall be informed in writing of the charges previous to the meeting and shall have an opportunity at the meeting to be heard in person or by counsel and to present witnesses. The person bringing the charges against him or her shall have the same opportunity.Article 7. Powers
26227.
An association may engage in any activity in connection with the growing, harvesting, curing, drying, trimming, packing, grading, storing, or handling of any cannabis product that is produced or delivered to it by its members; or any activity in connection with the purchase, hiring, or use by its members of supplies, machinery, or equipment, or in the financing of any such activities; or in any one or more of the activities that are specified in this section with a valid license.26227.1.
An association may borrow without limitation as to the amount of corporate indebtedness or liability and may make advances to members.26227.2.
An association may act as the agent or representative of any member or members in any of the activities specified in Section 26226.2 or 26226.3.26227.3.
An association may purchase or otherwise acquire, hold, own, and exercise all rights of ownership in, sell, transfer, pledge, or guarantee the payment of dividends or interest on, or the retirement or redemption of, shares of the capital stock or bonds of an association that is engaged in any related activity or in the growing, harvesting, curing, drying, trimming, packing, grading, storing, or handling of a cannabis product that is handled by the association.26227.4.
An association may establish reserves and invest the funds of the reserves in bonds or in other property as may be provided in the bylaws.26227.5.
An association may buy, hold, and exercise all privileges of ownership over such real or personal property as may be necessary or convenient for the conduct and operation of, or incidental to, the business of the association.26227.6.
An association may levy assessments in the manner and in the amount as may be provided in its bylaws.26227.7.
An association may do any of the following anywhere:26227.75.
An association may use or employ any of its facilities for any purpose, provided the proceeds that arise from such use and employment shall go to reduce the cost of operation for its members. The cannabis products that are handled for, or the services, machinery, equipment, or supplies or facilities that are furnished to, nonmembers shall not, however, exceed in value the cannabis products that are handled for, or the services, merchandise, or facilities that are supplied to, members during the same period.26227.8.
(a) An association may organize, form, operate, own, control, have an interest in, own stock of, or be a member of any other association, with or without capital stock, that is engaged in growing, harvesting, curing, drying, trimming, packing, grading, storing, or handling of any cannabis product that is handled by the association, or the byproducts of the cannabis product.26227.9.
(a) Any association may, upon resolution adopted by its board of directors, enter into all necessary and proper contracts and agreements and make all necessary and proper stipulations and arrangements with another cannabis cooperative or association that is formed in this or in any other state for the cannabis cooperative and more economical carrying on of its business or any part of its business.Article 8. Financial Provisions
26228.
An association is not subject in any manner to the terms of the Corporate Securities Law (Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code), and any association may issue its membership certificates or stock or other securities as provided in this chapter without the necessity of any qualification under that law.26228.1.
If an association issues nonpar value stock, the issuance of the stock shall be governed by the terms of all general laws that cover the issuance of nonpar value stock in domestic corporations.26228.2.
If an association with preferred shares of stock purchases the stock or any property, or any interest in any property of any person, it may discharge the obligations that are so incurred, wholly or in part, by exchanging for the acquired interest, shares of its preferred stock to an amount that at par value would equal the fair market value of the stock or interest so purchased, as determined by the board of directors. In that case, the transfer to the association of the stock or interest that is purchased is equivalent to payment in cash for the shares of stock that are issued.26228.3.
The board of directors of every association shall cause to be sent to the members of the association not later than 120 days after the close of the fiscal or calendar year an annual report of the operations of the association, unless the report is expressly dispensed with in the bylaws. If required by the bylaws, interim reports of the operations of the association for the three-month, six-month, or nine-month periods of the current fiscal year of the association shall be furnished to the members of the association. Such annual report and any such interim reports shall include a balance sheet as of such closing date. Such financial statement shall be prepared from, and be in accordance with, the books. It shall be prepared in a form that is sanctioned by sound accounting practice for the association or approved by a duly certified public accountant or a public accountant.Article 9. Members
26229.
Under the terms and conditions that are prescribed in the bylaws adopted by it, an association may admit as members or issue common stock only to persons engaged in the cultivation of a cannabis product that is to be handled by or through the association.26229.1.
If a member of a nonstock association is other than a natural person, the member may be represented by any individual, associate, officer, or manager or member of it, who is duly authorized in writing.26229.2.
Any association may become a member or stockholder of any other association.26229.3.
If a member of an association that is established without shares of stock has paid his membership fee in full, he or she shall receive a certificate of membership.26229.4.
An association shall not issue a certificate for stock to a member until it has been fully paid for. The promissory notes of the members may be accepted by the association as full or partial payment. The association shall hold the stock as security for the payment of the note, but the retention as security does not affect the member’s right to vote.26229.5.
An association, in its bylaws, may limit the amount of common stock that any member may own.26229.6.
The bylaws shall prohibit the transfer of the common stock or membership certificates of the associations to a person that is not qualified to be a shareholder or member as specified in this chapter. These restrictions shall be printed upon every certificate of stock or membership that is subject to them.26229.7.
The association may, at any time, as specified in the bylaws, except when the debts of the association exceed 50 percent of its assets, buy in or purchase its common stock at the book value of the common stock, as conclusively determined by the board of directors, and pay for it in cash within one year thereafter.26229.8.
A member or stockholder is not liable for the debts of the association to an amount that exceeds the sum that remains unpaid on his membership fee or his subscription to the capital stock, including any unpaid balance on any promissory note that is given in payment of the membership fee or the subscription to the capital stock.Article 10. Marketing Contracts
26230.
The association and its members may make and execute marketing contracts that require the members to sell, for any period of time, but not over 15 years, all or a specified part of a cannabis product exclusively to or through the association, or a facility that is created by the association. If the members contract a sale to the association, title to the cannabis product passes absolutely and unreservedly, except for recorded liens, to the association upon delivery or at another specified time that is expressly and definitely agreed in the contract.26230.1.
Notwithstanding any provisions of the Civil Code, a contract that is entered into by a member or stockholder of an association that provides for the delivery to the association of a cannabis product that is produced or acquired by the member or stockholder may be specifically enforced by the association to secure the delivery to it of the cannabis product.26230.2.
The bylaws or a marketing contract may fix, as liquidated damages, specific sums to be paid by the member or stockholder to the association upon the breach by him or her of any provision of the marketing contract regarding the sale or delivery or withholding of a cannabis product and may provide that the member will pay all costs, premiums for bonds, expenses, and fees, if any action is brought upon the contract by the association. These provisions are valid and enforceable in the courts of this state. The clauses that provide for liquidated damages are enforceable as such and shall not be regarded as penalties.26230.3.
If there is a breach or threatened breach of a marketing contract by a member, the association shall be entitled to an injunction to prevent the further breach of the contract and to a decree of specific performance of the contract. Pending the adjudication of the action and upon filing a verified complaint that shows the breach or threatened breach, and upon filing a sufficient bond, the association shall be entitled to a temporary restraining order and preliminary injunction against the member.Article 11. Reorganization of Corporations Organized Pursuant to Other Laws
26231.
A corporation that is organized or existing pursuant to any law except Title 23 (commencing with Section 653aa) of Part 4 of Division 1 of the Civil Code may be brought under the provisions of this chapter by amending its articles of incorporation, in the manner that is prescribed by the general corporation laws, to conform to this chapter. If a corporation amends its articles of incorporation to conform to this chapter, it shall be deemed to be organized and existing pursuant to, and entitled to the benefit of, and subject to this chapter for all purposes and as fully as though it had been originally organized pursuant to this chapter.26231.1.
Articles of incorporation shall be deemed to conform to this chapter within the meaning of Section 26231 if it clearly appears from the articles of incorporation that the corporation desires to be subject to, and to be organized, exist, and function pursuant to this chapter.26231.2.
If the amended articles conform, as provided in Section 26231.1, provisions in the articles of incorporation that appeared in the original articles or some previous amended articles, are ineffective if, and to the extent that, they are inapplicable to, or inconsistent with, this chapter.SEC. 108.
Section 1602 of the Fish and Game Code is amended to read:1602.
(a) An entity shall not substantially divert or obstruct the natural flow of, or substantially change or use any material from the bed, channel, or bank of, any river, stream, or lake, or deposit or dispose of debris, waste, or other material containing crumbled, flaked, or ground pavement where it may pass into any river, stream, or lake, unless all of the following occur:SEC. 109.
Section 1617 of the Fish and Game Code is amended to read:1617.
(a) The department may adopt(f)
SEC. 110.
Section 37104 of the Food and Agricultural Code is amended to read:37104.
Notwithstanding SectionSEC. 111.
Section 54036 of the Food and Agricultural Code is amended to read:54036.
A person, firm, corporation, or association, that is hereafter organized or doing business in this state, may not use the word “cooperative” as part of its corporate name or other business name or title for producers’ cooperative marketing activities, unless it has complied with thisSEC. 112.
Section 81010 of the Food and Agricultural Code is amended to read:Operation of Division.
81010.
(b)The possession, use, purchase, sale, production, manufacture, packaging, labeling, transporting, storage, distribution, use, and transfer of industrial hemp shall be regulated in accordance with this division. The Bureau of Marijuana Control has authority to regulate and control plants and products that fit within the definition of industrial hemp but that are produced, processed, manufactured, tested, delivered, or otherwise handled pursuant to a license issued under Division 10 (commencing with Section 26000) of the Business and Professions Code.
SEC. 113.
Section 11006.5 of the Health and Safety Code is amended to read:11006.5.
“Concentrated cannabis” means the separated resin, whether crude or purified, obtained fromSEC. 114.
Section 11014.5 of the Health and Safety Code is amended to read:11014.5.
(a) “Drug paraphernalia” means all equipment, products and materials of any kind which are designed for use or marketed for use, in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, containing, concealing, injecting, ingesting, inhaling, or otherwise introducing into the human body a controlled substance in violation of this division. It includes, but is not limited to:SEC. 115.
Section 11018 of the Health and Safety Code is amended to read:Marijuana.
11018.
SEC. 116.
Section 11018.1 of the Health and Safety Code is amended to read:Marijuana Products.
11018.1.
SEC. 117.
Section 11018.2 of the Health and Safety Code is amended to read:Marijuana Accessories.
11018.2.
SEC. 118.
Section 11018.5 of the Health and Safety Code is amended to read:Industrial Hemp.
11018.5.
(a) “Industrial hemp” means a fiber or oilseed crop, or both, that is limited to types of the plant Cannabis sativa L. having no more than three-tenths of 1 percent tetrahydrocannabinol (THC) contained in the dried flowering tops, whether growing or not; the seeds of the plant; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin produced therefrom.SEC. 119.
Section 11032 of the Health and Safety Code is amended to read:11032.
SEC. 120.
Section 11054 of the Health and Safety Code is amended to read:11054.
(a) The controlled substances listed in this section are included in Schedule I.SEC. 121.
The heading of Article 2 (commencing with Section 11357) of Chapter 6 of Division 10 of the Health and Safety Code is amended to read:
Article
2. Marijuana Cannabis
SEC. 122.
Section 11357 of the Health and Safety Code is amended to read:Possession.
11357.
(a) Except as authorized by law, possession of not more than 28.5 grams ofSEC. 123.
Section 11358 of the Health and Safety Code is amended to read:Planting, Harvesting, or Processing.
11358.
SEC. 124.
Section 11359 of the Health and Safety Code is amended to read:Possession for Sale.
11359.
Every person who possesses for sale anySEC. 125.
Section 11360 of the Health and Safety Code is amended to read:Unlawful Transportation, Importation, Sale, or Gift.
11360.
(a) Except as otherwise provided by this section or as authorized by law, every person who transports, imports into this state, sells, furnishes, administers, or gives away, or offers to transport, import into this state, sell, furnish, administer, or give away, or attempts to import into this state or transport anySEC. 126.
Section 11361 of the Health and Safety Code is amended to read:11361.
(a)SEC. 127.
Section 11361.1 of the Health and Safety Code is amended to read:11361.1.
(a) The drug education and counseling requirements under Sections 11357, 11358, 11359, and 11360 shall be:SEC. 128.
Section 11361.5 of the Health and Safety Code is amended to read:Destruction of Arrest and Conviction Records; Procedure; Exceptions.
11361.5.
(a) Records of any court of this state, any public or private agency that provides services upon referral under Section 1000.2 of the Penal Code, or of any state agency pertaining to the arrest or conviction of any person for a violation of Section 11357 or subdivision (b) of Section 11360, or pertaining to the arrest or conviction of any person under the age of 18 for a violation of any provision of this article except Section 11357.5, shall not be kept beyond two years from the date of the conviction, or from the date of the arrest if there was no conviction, except with respect to a violation of subdivision (d) of Section 11357, or any other violation by a person under the age of 18 occurring upon the grounds of, or within, any school providing instruction in kindergarten or any of grades 1SEC. 129.
Section 11362.1 of the Health and Safety Code is amended to read:11362.1.
(a) Subject to Sections 11362.2, 11362.3, 11362.4, and 11362.45, but notwithstanding any other provision of law, it shall be lawful under state and local law, and shall not be a violation of state or local law, for persons 21 years of age or older to:SEC. 130.
Section 11362.2 of the Health and Safety Code is amended to read:11362.2.
(a) Personal cultivation ofSEC. 131.
Section 11362.3 of the Health and Safety Code is amended to read:11362.3.
(a)(b)
(c)
(d)
(e)For purposes of this section, “youth
(f)
SEC. 132.
Section 11362.4 of the Health and Safety Code is amended to read:11362.4.
(a) A person who engages in the conduct described in paragraph (1) of subdivision (a) of Section 11362.3 is guilty of an infraction punishable by no more than aSEC. 133.
Section 11362.45 of the Health and Safety Code is amended to read:11362.45.
SEC. 134.
Section 11362.7 of the Health and Safety Code is amended to read:11362.7.
For purposes of this article, the following definitions shall apply:SEC. 135.
Section 11362.71 of the Health and Safety Code is amended to read:11362.71.
(a) (1) The department shall establish and maintain a voluntary program for the issuance of identification cards to qualified patients who satisfy the requirements of this article and voluntarily apply to the identification card program.SEC. 136.
Section 11362.715 of the Health and Safety Code is amended to read:11362.715.
(a) A person who seeks an identification card shall pay the fee, as provided in Section 11362.755, and provide all of the following to the county health department or the county’s designee on a form developed and provided by the department:SEC. 137.
Section 11362.765 of the Health and Safety Code is amended to read:11362.765.
(a) Subject to the requirements of this article, the individuals specified in subdivision (b) shall not be subject, on that sole basis, to criminal liability under Section 11357, 11358, 11359, 11360, 11366, 11366.5, or 11570.SEC. 138.
Section 11362.768 of the Health and Safety Code is amended to read:11362.768.
(a) This section shall apply to individuals specified in subdivision (b) of Section 11362.765.SEC. 139.
Section 11362.77 of the Health and Safety Code is amended to read:11362.77.
(a) A qualified patient or primary caregiver may possess no more than eight ounces of dried(e)The Attorney General may recommend modifications to the possession or cultivation limits set forth in this section. These recommendations, if any, shall be made to the Legislature no later than December 1, 2005, and may be made only after public comment and consultation with interested organizations, including, but not limited to, patients, health care professionals, researchers, law enforcement, and local governments. Any recommended modification shall be consistent with the intent of this article and shall be based on currently available scientific research.
(f)
SEC. 140.
Section 11362.775 of the Health and Safety Code is amended to read:11362.775.
(a) Subject to subdivision (d), qualified patients, persons with valid identification cards, and the designated primary caregivers of qualified patients and persons with identification cards, who associate within the State of California in order collectively or cooperatively to cultivate cannabis forSEC. 141.
Section 11362.777 of the Health and Safety Code is repealed.(a)The Department of Food and Agriculture shall establish a Medical Cannabis Cultivation Program to be administered by the secretary and, except as specified in subdivision (c), shall administer this section as it pertains to the commercial cultivation of medical cannabis. For purposes of this section and Chapter 3.5 (commencing with Section 19300) of Division 8 of the Business and Professions Code, medical cannabis is an agricultural product.
(b)(1)A person or entity shall not cultivate medical cannabis without first obtaining both of the following:
(A)A license, permit, or other entitlement, specifically permitting cultivation
pursuant to these provisions, from the city, county, or city and county in which the cultivation will occur.
(B)A state license issued by the department pursuant to this section.
(2)A person or entity shall not submit an application for a state license pursuant to this section unless that person or entity has received a license, permit, or other entitlement, specifically permitting cultivation pursuant to these provisions, from the city, county, or city and county in which the cultivation will occur.
(3)A person or entity shall not submit an application for a state license pursuant to this section if the proposed cultivation of cannabis will violate the provisions of any local ordinance or regulation, or if medical cannabis is prohibited by the city, county, or city and county in which the cultivation is proposed
to occur, either expressly or otherwise under principles of permissive zoning.
(c)(1)Except as otherwise specified in this subdivision, and without limiting any other local regulation, a city, county, or city and county, through its current or future land use regulations or ordinance, may issue or deny a permit to cultivate medical cannabis pursuant to this section. A city, county, or city and county may inspect the intended cultivation site for suitability before issuing a permit. After the city, county, or city and county has approved a permit, the applicant shall apply for a state medical cannabis cultivation license from the department. A locally issued cultivation permit shall only become active upon licensing by the department and receiving final local approval. A person shall not cultivate medical cannabis before obtaining both a permit from the city, county, or city and county and a state medical cannabis
cultivation license from the department.
(2)A city, county, or city and county that issues or denies conditional licenses to cultivate medical cannabis pursuant to this section shall notify the department in a manner prescribed by the secretary.
(3)A city, county, or city and county’s locally issued conditional permit requirements must be at least as stringent as the department’s state licensing requirements.
(d)(1)The secretary may prescribe, adopt, and enforce regulations relating to the implementation, administration, and enforcement of this part, including, but not limited to, applicant requirements, collections, reporting, refunds, and appeals.
(2)The secretary may prescribe, adopt, and enforce any emergency regulations
as necessary to implement this part. Any emergency regulation prescribed, adopted, or enforced pursuant to this section shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and, for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of the regulation is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, and general welfare.
(3)The secretary may enter into a cooperative agreement with a county agricultural commissioner to carry out the provisions of this chapter, including, but not limited to, administration, investigations, inspections, licensing and assistance pertaining to the cultivation of medical cannabis. Compensation under the cooperative agreement shall be paid from assessments and fees collected and deposited
pursuant to this chapter and shall provide reimbursement to the county agricultural commissioner for associated costs.
(e)(1)The department, in consultation with, but not limited to, the Bureau of Medical Cannabis Regulation, the State Water Resources Control Board, and the Department of Fish and Wildlife, shall implement a unique identification program for medical cannabis. In implementing the program, the department shall consider issues, including, but not limited to, water use and environmental impacts. In implementing the program, the department shall ensure compliance with Section 19332.2 of the Business and Professions Code.
(2)The department shall establish a program for the identification of permitted medical cannabis plants at a cultivation site during the cultivation period. The unique identifier shall be attached at the base of each plant. A
unique identifier, such as, but not limited to, a zip tie, shall be issued for each medical cannabis plant.
(A)Unique identifiers will only be issued to those persons appropriately licensed by this section.
(B)Information associated with the assigned unique identifier and licensee shall be included in the trace and track program specified in Section 19335 of the Business and Professions Code.
(C)The department may charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each medical cannabis plant.
(D)The department may promulgate regulations to implement this section.
(3)The department shall take adequate steps to establish
protections against fraudulent unique identifiers and limit illegal diversion of unique identifiers to unlicensed persons.
(f)(1)A city, county, or city and county that issues or denies licenses, permits, or other entitlements to cultivate medical cannabis pursuant to this section shall notify the department in a manner prescribed by the secretary.
(2)Unique identifiers and associated identifying information administered by a city, county, or city and county shall adhere to the requirements set by the department and be the equivalent to those administered by the department.
(g)This section does not apply to a qualified patient cultivating cannabis pursuant to Section 11362.5 if the area he or she uses to cultivate cannabis does not exceed 100 square feet and he or she cultivates cannabis for
his or her personal medical use and does not sell, distribute, donate, or provide cannabis to any other person or entity. This section does not apply to a primary caregiver cultivating cannabis pursuant to Section 11362.5 if the area he or she uses to cultivate cannabis does not exceed 500 square feet and he or she cultivates cannabis exclusively for the personal medical use of no more than five specified qualified patients for whom he or she is the primary caregiver within the meaning of Section 11362.7 and does not receive remuneration for these activities, except for compensation provided in full compliance with subdivision (c) of Section 11362.765. For purposes of this section, the area used to cultivate cannabis shall be measured by the aggregate area of vegetative growth of live cannabis plants on the premises. Exemption from the requirements of this section does not limit or prevent a city, county, or city and county from exercising its police authority under Section 7 of Article XI of the California
Constitution.
SEC. 142.
Section 11362.78 of the Health and Safety Code is amended to read:11362.78.
A state or local law enforcement agency or officer shall not refuse to accept an identification card issuedSEC. 143.
Section 11362.785 of the Health and Safety Code is amended to read:11362.785.
(a) Nothing in this article shall require any accommodation ofSEC. 144.
Section 11362.79 of the Health and Safety Code is amended to read:11362.79.
SEC. 145.
Section 11362.795 of the Health and Safety Code is amended to read:11362.795.
(a) (1) Any criminal defendant who is eligible to useSEC. 146.
Section 11362.8 of the Health and Safety Code is amended to read:11362.8.
SEC. 147.
Section 11362.81 of the Health and Safety Code is amended to read:11362.81.
(a) A person specified in subdivision (b) shall be subject to the following penalties:SEC. 148.
Section 11362.83 of the Health and Safety Code is amended to read:11362.83.
Nothing in this article shall prevent a city or other local governing body from adopting and enforcing any of the following:SEC. 149.
Section 11362.85 of the Health and Safety Code is amended to read:11362.85.
Upon a determination by the California Attorney General that the federal schedule of controlled substances has been amended to reclassify or declassifySEC. 150.
Section 11362.9 of the Health and Safety Code is amended to read:11362.9.
(a) (1) It is the intent of the Legislature that the state commission objective scientific research by the premier research institute of the world, the University of California, regarding the efficacy and safety of administeringSEC. 151.
Section 11364.5 of the Health and Safety Code is amended to read:11364.5.
(a) Except as authorized by law, no person shall maintain or operate any place of business in which drug paraphernalia is kept, displayed or offered in any manner, sold, furnished, transferred or given away unless such drug paraphernalia is completely and wholly kept, displayed or offered within a separate room or enclosure to which persons under the age of 18 years not accompanied by a parent or legal guardian are excluded. Each entrance to such a room or enclosure shall be signposted in reasonably visible and legible words to the effect that drug paraphernalia is kept, displayed or offered in such room or enclosure and that minors, unless accompanied by a parent or legal guardian, are excluded.SEC. 152.
Section 11470 of the Health and Safety Code is amended to read:11470.
The following are subject to forfeiture:SEC. 153.
Section 11478 of the Health and Safety Code is amended to read:11478.
SEC. 154.
Section 11479 of the Health and Safety Code is amended to read:11479.
Notwithstanding Sections 11473 and 11473.5, at any time after seizure by a law enforcement agency of a suspected controlled substance, except in the case of growing or harvestedSEC. 155.
Section 11479.2 of the Health and Safety Code is amended to read:11479.2.
Notwithstanding the provisions of Sections 11473, 11473.5, 11474, 11479, and 11479.1, at any time after seizure by a law enforcement agency of a suspected controlled substance, exceptSEC. 156.
Section 11480 of the Health and Safety Code is amended to read:11480.
(a) The Legislature finds that there is a need to encourage further research into the nature and effects ofSEC. 157.
Section 11485 of the Health and Safety Code is amended to read:11485.
Any peace officer of this state who, incident to a search under a search warrant issued for a violation of Section 11358 with respect to which no prosecution of a defendant results, seizes personal property suspected of being used in the planting, cultivation, harvesting, drying, processing, or transporting ofSEC. 158.
Section 11532 of the Health and Safety Code is amended to read:11532.
(a) It is unlawful for any person to loiter in any public place in a manner and under circumstances manifesting the purpose and with the intent to commit an offense specified in Chapter 6 (commencing with Section 11350) and Chapter 6.5 (commencing with Section 11400).SEC. 159.
Section 11553 of the Health and Safety Code is amended to read:11553.
The fact that a person is or has been, or is suspected of being, a user ofSEC. 160.
Section 109925 of the Health and Safety Code is amended to read:109925.
(a) “Drug” means any of the following:(a)Any
(b)Any
(c)Any
(d)Any
The
Any
SEC. 161.
The heading of Part 14.5 (commencing with Section 34010) of Division 2 of the Revenue and Taxation Code is amended to read:PART 14.5. MARIJUANA TAX Cannabis Tax
SEC. 162.
Section 34010 of the Revenue and Taxation Code is amended to read:34010.
For purposes of this part:(a)
(b)
(c)
(d)“Marijuana”
(e)“Marijuana
(f)“Marijuana
(g)“Marijuana
(h)“Gross receipts”
(i)“Retail sale”
(j)“Person”
(k)
(l)
SEC. 163.
Section 34011 of the Revenue and Taxation Code is amended to read:34011.
(a) Effective January 1, 2018, a(b)Except as otherwise provided by regulation, the tax levied under this section shall apply to the full price, if nonitemized, of any transaction involving both marijuana or marijuana products and any other otherwise distinct and identifiable goods or services, and the price of
any goods or services, if a reduction in the price of marijuana or marijuana products is contingent on purchase of those goods or services.
(c)A dispensary or other person required to be licensed pursuant to Chapter 3.5 (commencing with Section 19300) of Division 8 of the Business and Professions Code or a retailer, microbusiness, nonprofit, or other person required to be licensed pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code
(d)
(e)
(f)No marijuana or marijuana
(g)
SEC. 164.
Section 34012 of the Revenue and Taxation Code is amended to read:34012.
(a) Effective January 1, 2018, there is hereby imposed a cultivation tax on all harvestedSEC. 165.
Section 34012.5 is added to the Revenue and Taxation Code, to read:34012.5.
(a) The cultivation tax and cannabis excise tax required to be collected by the distributor, or required to be collected by the manufacturer pursuant to paragraph (2) of subdivision (h) of Section 34012, and any amount unreturned to the cultivator or cannabis retailer that is not tax but was collected from the cultivator or cannabis retailer under the representation by the distributor or the manufacturer that it was tax constitute debts owed by the distributor or the manufacturer to this state.SEC. 166.
Section 34013 of the Revenue and Taxation Code is amended to read:34013.
(a) The board shall administer and collect the taxes imposed by this part pursuant to the Fee Collection Procedures Law (Part 30 (commencing with SectionSEC. 167.
Section 34014 of the Revenue and Taxation Code is amended to read:34014.
(a) AllSEC. 168.
Section 34015 of the Revenue and Taxation Code is amended to read:34015.
(a)SEC. 169.
Section 34016 of the Revenue and Taxation Code is amended to read:34016.
(a) Any peace officer or board employee granted limited peace officer status pursuant to paragraph (6) of subdivision (a) of Section 830.11 of the Penal Code, upon presenting appropriate credentials, is authorized to enter any place as described in paragraph (3) and to conduct inspections in accordance with the following paragraphs, inclusive.SEC. 170.
Section 34018 of the Revenue and Taxation Code is amended to read:34018.
(a) The CaliforniaSEC. 171.
Section 34019 of the Revenue and Taxation Code is amended to read:34019.
(a) Beginning with the 2017–18 fiscalSEC. 172.
Section 34021.5 of the Revenue and Taxation Code is amended to read:34021.5.
(a) (1) A county may impose a tax on the privilege of cultivating, manufacturing, producing, processing, preparing, storing, providing, donating, selling, or distributingSEC. 173.
Section 2429.7 is added to the Vehicle Code, to read:2429.7.
(a) The commissioner shall appoint an impaired driving task force to develop recommendations for best practices, protocols, proposed legislation, and other policies that will address the issue of impaired driving, including driving under the influence of cannabis and controlled substances. The task force shall also examine the use of technology, including field testing technologies and validated field sobriety tests, to identify drivers under the influence of prescription drugs, cannabis, and controlled substances. The task force shall include, but is not limited to, the commissioner, who shall serve as chairperson, and at least one member from each of the following:SEC. 174.
Section 23222 of the Vehicle Code is amended to read:23222.
(a) No person shall have in his or her possession on his or her person, while driving a motor vehicle upon a highway or on lands, as described in subdivision (b) of Section 23220, any bottle, can, or other receptacle, containing any alcoholic beverage which has been opened, or a seal broken, or the contents of which have been partially removed.(b)Except as authorized by law, every person who possesses, while driving a motor vehicle upon a highway or on lands, as described in subdivision (b) of Section 23220, not more than one avoirdupois ounce of marijuana, other than concentrated cannabis as defined by Section 11006.5 of the Health and Safety Code, is guilty of an infraction
punishable by a fine of not more than one hundred dollars ($100).
SEC. 175.
Section 1831 of the Water Code is amended to read:1831.
(a) When the board determines that any person is violating, or threatening to violate, any requirement described in subdivision (d), the board may issue an order to that person to cease and desist from that violation.SEC. 176.
Section 1847 of the Water Code is amended to read:1847.
(a) A person or entity may be liable for a violation of any of the requirements of subdivision (b) in an amount not to exceed the sum of the following:SEC. 177.
Section 13276 of the Water Code is amended to read:13276.
(a) The multiagency task force, the Department of Fish and Wildlife andSEC. 178.
The amount of three million dollars ($3,000,000) is hereby appropriated from the Cannabis Control Fund to the Department of the California Highway Patrol to be used to for training drug recognition experts. Program costs may include, but are not limited to, training, overtime, and backfill of state and local law enforcement officers to attend training.SEC. 179.
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. 180.
The Legislature finds and declares that Sections 58 and 93 of this act, which add Sections 26067 and 26162 to the Business and Professions Code, impose 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:SEC. 181.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.SEC. 182.
The Legislature finds and declares that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act by accomplishing all of the following:SEC. 183.
This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2017.