BILL NUMBER: AB 266 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 11, 2015
AMENDED IN ASSEMBLY MAY 5, 2015
AMENDED IN ASSEMBLY APRIL 14, 2015
INTRODUCED BY Assembly Member Cooley
(Coauthor: Assembly Member Lackey)
FEBRUARY 10, 2015
An act to amend Section 2220.05 of, to add Article 25 (commencing
with Section 2525) to Chapter 5 of Division 2 of, and to add Part 5
(commencing with Section 18100) to Division 7 of, the Business and
Professions Code, to add Section 23028 to the Government Code, to
amend Section 11362.775 of, and to add Article 8 (commencing with
Section 111658) to Chapter 6 of Part 5 of Division 104 of, the Health
and Safety Code, and to amend Section 1155.7 of, and to add Sections
147.5 and 3094 to, the Labor Code, relating to medical marijuana,
and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 266, as amended, Cooley. Medical marijuana.
(1) Existing law, the Compassionate Use Act of 1996, an initiative
measure enacted by the approval of Proposition 215 at the November
6, 1996, statewide general election, authorizes the use of marijuana
for medical purposes. Existing law enacted by the Legislature
requires the establishment of a program for the issuance of
identification cards to qualified patients so that they may lawfully
use marijuana for medical purposes, and requires the establishment of
guidelines for the lawful cultivation of marijuana grown for medical
use. Existing law provides for the licensure of various professions
by the Department of Consumer Affairs. Existing law, the Sherman
Food, Drug, and Cosmetic Law, provides for the regulation of food,
drugs, devices, and cosmetics, as specified. A violation of that law
is a crime.
This bill would establish within the Department of Consumer
Affairs a Bureau of Medical Marijuana Regulation, under the
supervision and control of the Chief of the Bureau of Medical
Marijuana Regulation, and would require the bureau to license and
regulate dispensing facilities, cultivation sites, transporters, and
manufacturers of medical marijuana and medical marijuana products,
subject to local ordinances. The bill would require a background
check of applicants for licensure, as defined, to be administered by
the Department of Justice, and submission of a statement signed by an
applicant, under penalty of perjury, that the information on his or
her application is true, thereby creating a crime and imposing a
state-mandated local program. Violation of the provisions related to
applying for a conditional license would be punishable by a civil
fine of up to $35,000 for each individual violation, or as otherwise
specified.
The bill would make conditional licenses subject to the
restrictions of the local jurisdiction in which the facility operates
or proposes to operate. The bill would set forth provisions related
to the transportation, testing, and distribution of medical
marijuana. The bill would prohibit the distribution of any form of
advertising for physician recommendations for medical marijuana,
unless the advertisement bears a specified notice and requires that
the advertisement meet specified requirements and not be fraudulent,
deceitful, or misleading.
The bill would require the State Department of Public Health to
promulgate standards for the certification of testing laboratories to
perform random sample testing of all medical marijuana products,
including standards for onsite testing.
The bill would establish a system of certification for cannabis
employees. The bill would require the Division of Labor Standards
Enforcement to maintain and enforce minimum standards of competency
and training and to certify cannabis employees.
The bill would establish the Medical Marijuana Regulation Fund and
would require the deposit of specified fees collected pursuant to
this act into the fund. The bill would continuously appropriate
moneys from the fund to the bureau for the purposes of administering
this act, thereby making an appropriation. The bill would also
establish the Special Account for Environmental Enforcement within
the Medical Marijuana Fund. This account would contain money from
fees assessed against licensed cultivation facilities and would be
continuously appropriated for the enforcement of environmental
regulations relating to licensed cultivation sites. The bill would
require the deposit of penalty moneys collected pursuant to this bill
into the General Fund.
The bill would provide that it shall not supersede provisions of
Measure D, as approved by the voters of the City of Los Angeles, as
specified.
The bill would require the bureau, in consultation with local
governments, to develop an enforcement framework that clarifies the
enforcement roles of state and local governments, as specified, and
would authorize a city, county, or city and county to administer and
enforce these provisions. The bill would require the bureau to
establish quality assurance protocols by July 1, 2017, to ensure
uniform testing standards of medical marijuana, and would require
licensees to comply with these provisions. The bill would further set
forth provisions regulating edible medical marijuana products, as
specified. By adding these provisions to the Sherman Food, Drug, and
Cosmetic Law, a violation of which is a crime, the bill would impose
a state-mandated local program.
(2) Existing law establishes the Division of Apprenticeship
Standards, which audits and regulates apprenticeship programs for
various trades, including electricians.
This bill would require the division to investigate, approve, or
reject applications for apprenticeship employees of a licensed
cultivation site or a licensed dispensing facility, as defined.
(3) Existing law, the Medical Practice Act, provides for the
licensure and regulation of physicians and surgeons by the Medical
Board of California. Existing law requires the board to prioritize
investigations and prosecutions of physicians and surgeons
representing the greatest threat of harm, as specified. Existing law
identifies the cases that are to be given priority, which include
cases of repeated acts of excessively prescribing, furnishing, or
administering controlled substances without a good faith prior
examination of the patient. Existing law provides that a violation of
the Medical Practice Act is a crime.
This bill would require the board to consult with the Center for
Medicinal Cannabis Research on developing and adopting medical
guidelines for the appropriate administration and use of marijuana.
The bill would also make it a misdemeanor for a physician and
surgeon who recommends marijuana to a patient for a medical purpose
to accept, solicit, or offer any remuneration from or to a licensed
dispensing facility in which the physician and surgeon or his or her
immediate family has a financial interest. By creating a new crime,
the bill would impose a state-mandated local program.
The bill would provide that specified acts of recommending
marijuana for medical purposes without a good faith examination are
among the types of cases that should be given priority for
investigation and prosecution by the board, as described above. The
bill would further prohibit a physician and surgeon from recommending
medical marijuana to a patient unless that person is the patient's
attending physician, as defined. Because a violation of that
provision would be a crime, the bill would impose a state-mandated
local program.
(4) Existing law authorizes the legislative body of a city or
county to impose various taxes, including a transactions and use tax
at a rate of 0.25%, or a multiple thereof, if approved by the
required vote of the legislative body and the required vote of
qualified voters, and limits the combined rate of transactions and
use taxes within a city or county to 2%.
This bill would authorize the board of supervisors of a county to
impose a tax on the privilege of cultivating, dispensing, producing,
processing, preparing, storing, providing, donating, selling, or
distributing marijuana or products containing marijuana. The bill
would authorize the tax to be imposed for either general or specific
governmental purposes. The bill would require a tax imposed pursuant
to this authority to be subject to any applicable voter approval
requirement.
(5) Existing law exempts qualified patients, persons with valid
identification cards, and the designated primary caregivers of
qualified patients and persons with identification cards from certain
crimes, including possession of concentrated cannabis and marijuana,
cultivation of marijuana, and possession of marijuana for sale.
This bill, commencing January 1, 2018, would also exempt from
those crimes an employee, officer, or board member of a licensed
cultivation site or a licensed dispensing facility, except as
specified.
(6) Existing law regulates the labor practices of agricultural
employers. Existing law establishes the Occupational Safety and
Health Standards Board within the Department of Industrial Relations
to adopt, amend, and repeal occupational safety and health standards
and establishes the Division of Occupational Safety and Health to
enforce those standards.
This bill would include licensed cultivation sites in the
definition of agricultural employer. The bill would require the
division to convene an advisory committee to evaluate whether there
is a need to develop industry-specific regulations relating to
facilities issued a conditional license.
(7) This bill would provide that its provisions are severable.
(8) Existing constitutional provisions require that a statute that
limits the right of access to the meetings of public bodies or the
writings of public officials and agencies be adopted with findings
demonstrating the interest protected by the limitation and the need
for protecting that interest.
This bill would make legislative findings to that effect.
(9) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) In 1996, the people of the State of California enacted the
Compassionate Use Act of 1996, codified in Section 11362.5 of the
Health and Safety Code. The people of the State of California
declared that their purpose in enacting the measure was, among other
things, "to ensure that seriously ill Californians have the right to
obtain and use marijuana for medical purposes where that medical use
is deemed appropriate and has been recommended by a physician who has
determined that the person's health would benefit from the use of
marijuana in the treatment of cancer, anorexia, AIDS, chronic pain,
spasticity, glaucoma, arthritis, migraine, or any other illness for
which marijuana provides relief."
(b) The Compassionate Use Act of 1996 called on state government
to implement a plan for the safe and affordable distribution of
marijuana to all patients in medical need of marijuana, while
ensuring that nothing in that act would be construed to condone the
diversion of marijuana for nonmedical purposes.
(c) In 2003, the Legislature enacted the Medical Marijuana Program
Act (MMPA), codified in Article 2.5 (commencing with Section
11362.7) of Chapter 6 of Division 10 of the Health and Safety Code.
(d) Greater certainty and minimum statewide standards are urgently
needed regarding the obligations of medical marijuana facilities,
and for the imposition and enforcement of regulations to prevent
unlawful cultivation and the diversion of marijuana to nonmedical
use.
(e) Despite the passage of the Compassionate Use Act of 1996 and
the MMPA, because of the lack of an effective statewide system for
regulating and controlling medical marijuana, cities, counties and
local law enforcement officials have been confronted with uncertainty
about the legality of some medical marijuana cultivation and
distribution activities. The current state of affairs makes law
enforcement difficult and endangers patient safety because of an
inability to monitor the supply of medical marijuana in the state and
the lack of quality control, testing, and labeling requirements.
(f) The California Constitution grants cities and counties the
authority to make and enforce, within their borders, "all local
police, sanitary, and other ordinances and regulations not in
conflict with the general laws." This inherent local police power
includes broad authority to determine, for purposes of public health,
safety, and welfare, the appropriate uses of land within the local
jurisdiction's borders. The police power, therefore, allows each city
and county to determine whether or not a medical marijuana
dispensary or other facility that makes medical marijuana available
may operate within its borders. This authority has been upheld by
City of Riverside v. Inland Empire Patients Health and Wellness
Center, Inc. (2013) 56 Cal.4th 729 and County of Los Angeles v. Hill
(2011) 192 Cal.App.4th 861. Nothing in this act shall diminish,
erode, or modify that authority.
(g) If a city or county determines that a dispensary or other
facility that makes medical marijuana available may operate within
its borders, then there is a need for the state to license these
dispensaries and other facilities for the purpose of adopting and
enforcing protocols for security standards at dispensaries and in the
transportation of medical marijuana, as well as health and safety
standards to ensure patient safety. This licensing requirement is not
intended in any way nor shall it be construed to preempt local
ordinances, regulations, or enforcement actions regarding the sale
and use of medical marijuana, including, but not limited to,
security, signage, lighting, and inspections.
(h) All of the following are necessary to uphold important state
goals:
(1) Strict provisions to prevent the potential diversion of
marijuana for recreational use.
(2) Audits to accurately track the volume of both product movement
and sales.
(3) An effective means of restricting nonmedical access to medical
marijuana by minors.
(i) Nothing in this act shall be construed to promote or
facilitate the nonmedical, recreational possession, sale, or use of
marijuana.
(j) Nothing in this act shall have a diminishing effect on the
rights and protections granted to a patient or primary caregiver
pursuant to the Compassionate Use Act of 1996.
SEC. 2. Section 2220.05 of the Business and Professions Code is
amended to read:
2220.05. (a) In order to ensure that its resources are maximized
for the protection of the public, the Medical Board of California
shall prioritize its investigative and prosecutorial resources to
ensure that physicians and surgeons representing the greatest threat
of harm are identified and disciplined expeditiously. Cases involving
any of the following allegations shall be handled on a priority
basis, as follows, with the highest priority being given to cases in
the first paragraph:
(1) Gross negligence, incompetence, or repeated negligent acts
that involve death or serious bodily injury to one or more patients,
such that the physician and surgeon represents a danger to the
public.
(2) Drug or alcohol abuse by a physician and surgeon involving
death or serious bodily injury to a patient.
(3) Repeated acts of clearly excessive prescribing, furnishing, or
administering of controlled substances, or repeated acts of
prescribing, dispensing, or furnishing of controlled substances, or
recommending marijuana to patients for medical purposes, without a
good faith prior examination of the patient and medical reason
therefor. However, in no event shall a physician and surgeon
prescribing, furnishing, or administering controlled substances for
intractable pain consistent with lawful prescribing, including, but
not limited to, Sections 725, 2241.5, and 2241.6 of this code and
Sections 11159.2 and 124961 of the Health and Safety Code, be
prosecuted for excessive prescribing and prompt review of the
applicability of these provisions shall be made in any complaint that
may implicate these provisions.
(4) Sexual misconduct with one or more patients during a course of
treatment or an examination.
(5) Practicing medicine while under the influence of drugs or
alcohol.
(b) The board may by regulation prioritize cases involving an
allegation of conduct that is not described in subdivision (a). Those
cases prioritized by regulation shall not be assigned a priority
equal to or higher than the priorities established in subdivision
(a).
(c) The Medical Board of California shall indicate in its annual
report mandated by Section 2312 the number of temporary restraining
orders, interim suspension orders, and disciplinary actions that are
taken in each priority category specified in subdivisions (a) and
(b).
SEC. 3. Article 25 (commencing with Section 2525) is added to
Chapter 5 of Division 2 of the Business and Professions Code, to
read:
Article 25. Recommending Medical Marijuana
2525. (a) It is unlawful for a physician and surgeon who
recommends marijuana to a patient for a medical purpose to accept,
solicit, or offer any form of remuneration from or to a facility
issued a conditional license pursuant to Part 5 (commencing with
Section 18100) of Division 7, if the physician and surgeon or his or
her immediate family have a financial interest in that facility.
(b) For the purposes of this section, "financial interest" shall
have the same meaning as in Section 650.01.
(c) A violation of this section shall be a misdemeanor.
2525.1. The Medical Board of California shall consult with the
California Marijuana Research Program, known as the Center for
Medicinal Cannabis Research, authorized pursuant to Section 11362.9
of the Health and Safety Code, on developing and adopting medical
guidelines for the appropriate administration and use of medical
marijuana.
2525.2. A physician and surgeon shall not recommend medical
marijuana to a patient, unless that person is the patient's attending
physician, as defined by subdivision (a) of Section 11362.7 of the
Health and Safety Code.
2525.3. An examination conducted by the physician and surgeon
involving the use of telehealth as defined in Section 2290.5 of the
Business and Professions Code, shall comply with applicable federal
and state laws and regulations, including compliance with the
regulations promulgated pursuant to the Health Insurance Portability
and Accountability Act of 1996, found in Parts 160 and 164 of Title
45 of the Code of Federal Regulations.
SEC. 4. Part 5 (commencing with Section 18100) is added to
Division 7 of the Business and Professions Code, to read:
PART 5. Medical Marijuana
CHAPTER 1. GENERAL PROVISIONS
18100. For purposes of this part, the following definitions shall
apply:
(a) "Bureau" means the Bureau of Medical Marijuana Regulation in
the Department of Consumer Affairs.
(b) "Certified testing laboratory" means a laboratory that is
certified by the bureau State Department of
Public Health to perform random sample testing of medical
marijuana pursuant to the certification standards for these
facilities promulgated by the bureau.
(c) "Chief" means the Chief of the Bureau of Medical Marijuana
Regulation.
(d) "Delivery service" means an individual or entity issued a
conditional license by the bureau pursuant to this part and a local
license or permit, as specified in subdivision (c) of Section 18110,
to deliver medical marijuana or medical marijuana products, up to an
amount determined by the bureau, to patients, testing laboratories,
or to events or locations where it will be used solely for
promotional purposes. A delivery service shall not be required to
obtain a transporter license.
(e) "Department" means the Department of Consumer Affairs.
(f) "Director" means the Director of Consumer Affairs.
(g) "Dispensary" means a distribution operation that provides
medical marijuana or medical marijuana derived products to patients
and caregivers.
(h) "Edible marijuana product" means medical marijuana or medical
marijuana-derived product that is ingested or meant to be ingested
through the mouth and into the digestive system.
(i) "Fund" means the Medical Marijuana Regulation Fund established
pursuant to Section 18118.
(j) "Labor peace agreement" means an agreement between an entity
and a bona fide labor organization that, at a minimum, protects the
state's proprietary interests by prohibiting labor organizations and
members from engaging in picketing, work stoppages, boycotts, and any
other economic interference with the applicant's business. The
agreement means that the applicant has agreed not to disrupt efforts
by the bona fide labor organization to communicate with, and attempt
to organize and represent, the applicant's employees.
(k) "Licensed cultivation site" means a facility that plants,
grows, cultivates, harvests, dries, or processes medical marijuana,
or that does all or any combination of those activities, and that is
issued a conditional license pursuant to this part and a local
license or permit, as required by subdivision (c) of Section 18110.
(l) "Licensed dispensing facility" means a dispensary or other
facility that provides medical marijuana, medical marijuana products,
or devices for the use of medical marijuana or medical marijuana
products, either individually or in any combination, that is issued a
conditional license pursuant to this part and a local license or
permit, as required by subdivision (c) of Section 18110.
(m) "Licensed manufacturer" means a person who extracts, prepares,
derives, produces, compounds, or repackages medical marijuana or
medical marijuana products into consumable and nonconsumable forms,
or that does all or any combination of those activities, and that is
issued a conditional license pursuant to this part and a local
license or permit, as required by subdivision (c) of Section 18110.
(n) "Licensed transporter" means an individual or entity issued a
conditional license by the bureau to transport medical marijuana or
medical marijuana products above a limit determined by the bureau to
and from facilities that have been issued conditional licenses
pursuant to this part.
(o) "Marijuana" means all parts of the plant Cannabis sativa,
cannabis indica, or cannabis ruderalis, whether growing or not; the
seeds thereof; the resin, whether crude or purified, extracted from
any part of the plant; and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds, or
resin. "Marijuana" does not include the mature stalks of the plant,
fiber produced from the stalks, oil or cake made from the seeds of
the plant, any other compound, manufacture, salt, derivative,
mixture, or preparation of the mature stalks (except the resin
extracted therefrom), fiber, oil, or cake, or the sterilized seed of
the plant which is incapable of germination. "Marijuana" also means
marijuana, as defined by Section 11018 of the Health and Safety Code.
18101. (a) There is hereby created in the Department of Consumer
Affairs the Bureau of Medical Marijuana Regulation, under the
supervision and control of the Chief of the Bureau of Medical
Marijuana Regulation.
(b) Protection of the public shall be the highest priority for the
bureau in exercising its licensing, regulatory, and disciplinary
functions. Whenever the protection of the public is inconsistent with
other interests sought to be promoted, the protection of the public
shall be paramount.
(c) The bureau shall have the authority to issue conditional
licenses for the cultivation, manufacture, transportation, storage,
distribution, and sale of medical marijuana within the state and to
collect fees in connection with these actions. The bureau shall have
the authority to create other licenses in order to protect patient
health and the public and to facilitate the regulation of medical
marijuana.
(d) The Governor shall appoint the chief at a salary to be fixed
and determined by the director with the approval of the Director of
Finance. The chief shall serve in accordance with the State Civil
Service Act (Part 2 (commencing with Section 18500) of Division 5 of
Title 2 of the Government Code).
(e) The duty of enforcing and administering this part shall be
vested in the chief, who is responsible to the director. The chief
may adopt and enforce those rules and regulations that he or she
determines are reasonably necessary to carry out the purposes of this
part and declaring the policy of the bureau, including a system for
the issuance of citations for violations of this part, as specified
in Section 18127.
(f) The chief, as necessary to carry out the provisions of this
part, and in accordance with the State Civil Service Act (Part 2
(commencing with Section 18500) of Division 5 of Title 2 of the
Government Code), may appoint and fix the compensation of personnel,
including, but not limited to, clerical, inspection, investigation,
and auditing personnel, as well as an assistant chief. These
personnel shall perform their respective duties under the supervision
and the direction of the chief.
(g) Every power granted to, or duty imposed upon, the chief under
this part may be exercised or performed in the name of the chief by a
deputy or assistant chief, subject to conditions and limitations
that the chief prescribes.
(h) The bureau shall exercise its authority pursuant to this part
consistent with Section 1 of the act that added this section and
consistent with the provisions of this part.
18102. Funds for the establishment and support of the bureau
shall be advanced as a loan by the department and shall be repaid by
the initial proceeds from fees collected pursuant to this part or any
rule or regulation adopted pursuant to this part.
18103. The bureau shall have the authority necessary for the
implementation of this part, including, but not limited to, all of
the following:
(a) Establishing rules or regulations necessary to carry out the
purposes and intent of this part and to enable the bureau to exercise
the powers and perform the duties conferred upon it by this part and
in accordance with Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code. These rules
and regulations shall not limit the authority of a city, county, or
city and county specified in Section 18128, or specified in Section 7
of Article XI of the California Constitution, or any other law. For
the performance of its duties, the bureau has the powers as set forth
in Article 2 (commencing with Section 11180) of Chapter 2 of Part 1
of Division 3 of Title 2 of the Government Code.
(b) Issuing conditional licenses to persons for the cultivation,
manufacture, transportation, storage, distribution, and sale of
medical marijuana within the state.
(c) Setting application, licensing, and renewal fees for
conditional licenses issued pursuant to Section 18117.
(d) Establishing standards for the cultivation, manufacturing,
transportation, storage, testing, distribution, provision, donation,
and sale of medical marijuana and medical marijuana products.
(e) Establishing procedures for the issuance, renewal, suspension,
denial, and revocation of conditional licenses.
(f) Imposing a penalty authorized by this part or any rule or
regulation adopted pursuant to this part.
(g) Taking action with respect to an application for a conditional
license in accordance with procedures established pursuant to this
part.
(h) Overseeing the operation of the Medical Marijuana Regulation
Fund and the Special Account for Environmental Enforcement,
established pursuant to Section 18118.
(i) Consulting with other state or local agencies, departments,
representatives of the medical marijuana community, or public or
private entities for the purposes of establishing statewide standards
and regulations. The bureau shall, at a minimum, consult with the
State Department of Public Health and the Department of Food and
Agriculture when developing these standards.
18104. (a) On or before July 1, 2017, the bureau shall promulgate
regulations for implementation and enforcement of this part,
including, but not limited to, all of the following:
(1) Procedures for the issuance, renewal, suspension, denial, and
revocation of conditional licenses.
(2) Procedures for appeal of fines and the appeal of denial,
suspension, or revocation of conditional licenses.
(3) Application, licensing, and renewal forms and fees.
(4) A time period in which the bureau shall approve or deny an
application for a conditional license pursuant to this part.
(5) Qualifications for licensees.
(6) Requirements to ensure that all licensees and certified
testing laboratories conform with standards equivalent to state
statutory environmental, agricultural, consumer protection, and food
and product safety requirements. These standards shall be in addition
to, and not limited to, any other state and local requirements. At a
minimum, these standards shall do all of the following:
(A) Prescribe sanitation standards analogous to the California
Retail Food Code (Part 7 (commencing with Section 113700) of Division
104 of the Health and Safety Code) for food preparation, storage,
handling, and sale of edible medical marijuana products.
(B) Require that edible medical marijuana products produced,
distributed, provided, donated, or sold by licensees shall be limited
to nonpotentially hazardous food, as established by the State
Department of Public Health pursuant to Section 114365.5.
(C) Require that facilities in which edible medical marijuana
products are prepared shall be constructed in accordance with
applicable building standards, health and safety standards, and other
state laws.
(D) Provide that weighing or measuring devices used in connection
with the sale or distribution of medical marijuana are required to
meet standards analogous to Division 5 (commencing with Section
12001).
(E) Require that the application of pesticides or other pest
control in connection with the indoor or outdoor cultivation of
medical marijuana shall meet standards analogous to Division 6
(commencing with Section 11401) of the Food and Agricultural Code and
its implementing regulations.
(F) Require that indoor and outdoor marijuana cultivation by
licensees is conducted in accordance with state and local laws and
best practices related to land conversion, grading, electricity
usage, water usage, agricultural discharges, and similar matters.
(7) Develop procedures to ensure that testing of marijuana occurs
prior to delivery to dispensaries or any other business, and specify
that the cost of testing shall be borne by the licensed cultivators,
how often licensees shall test marijuana, and requiring destruction
of harvested batches whose testing samples indicate noncompliance
with health and safety standards promulgated by the bureau, unless
remedial measures can bring the marijuana into compliance with
quality assurance standards as promulgated by the bureau.
(8) Establish minimum standards for quality assurance protocols
implemented by each licensed facility pursuant to Section 18138.
(b) On or before July 1, 2017, the bureau shall also promulgate
regulations for minimum statewide health and safety standards and
quality assurance standards associated with the cultivation,
transport, storage, manufacture, and sale of all medical marijuana
produced in this state. Consistent with Section 18126, local agencies
shall have primary responsibility for enforcement of these standards
in accordance with bureau regulations.
(c) The bureau shall not issue a conditional license unless the
applicant has met all of the requirements of this part, including the
requirements of subdivision (d) of Section 18110.
18104.5. (a) The State Department of Public Health shall
promulgate standards for certification of testing laboratories to
perform random sample testing of all medical marijuana products,
including standards for onsite testing.
(b) Certification of testing laboratories shall be consistent with
general requirements for the competence of testing and calibration
activities, including sampling, using standard methods established by
the International Organization for Standardization, specifically
ISO/IEC 17020 and ISO/IEC 17025.
(c) These requirements shall apply to all entities, including
third-party laboratories, engaged in the testing of medical marijuana
pursuant to this part.
18105. The chief shall keep a complete record of all facilities
issued a conditional license. The bureau shall, upon request, provide
summary information on licensees consisting of the name of the
licensee, the date the license was issued, the status of the license,
and the licensees's mailing address.
18106. The bureau shall establish procedures to provide state and
local law enforcement, upon their request, with 24-hour access to
information to verify a conditional license, track transportation
manifests, and track the inventories of facilities issued a
conditional license.
18107. This part shall in no way supersede the provisions of
Measure D, approved by the voters of the City of Los Angeles on the
May 21, 2013, ballot for the city, which granted medical marijuana
businesses and dispensaries qualified immunity consistent with the
terms of the measure and local ordinances. Notwithstanding the
provisions of this part, marijuana businesses and dispensaries
subject to the provisions of Measure D and its qualified immunity
shall continue to be subject to the ordinances and regulations of the
City of Los Angeles.
CHAPTER 2. CONDITIONAL LICENSES
18108. The following persons are exempt from the requirement of
licensure under this part:
(a) A patient who cultivates, possesses, stores, manufactures, or
transports marijuana exclusively for his or her personal medical use
and who does not sell, distribute, donate, or provide marijuana to
any other person or entity.
(b) A primary caregiver who cultivates, possesses, stores,
manufactures, transports, or provides marijuana exclusively for the
personal medical purposes to no more than five specified qualified
patients for whom he or she is the primary caregiver within the
meaning of Section 11362.7 of the Health and Safety Code and who does
not receive remuneration for these activities, except for
compensation in full compliance with subdivision (c) of Section
11362.765 of the Health and Safety Code. Nothing in this section
shall permit primary caregivers to organize themselves as
cooperatives or collectives of caregivers.
18109. (a) Except as provided in Section 11362.5 of, and Article
2.5 (commencing with Section 11362.7) of Chapter 6 of Division 10 of,
the Health and Safety Code, a person shall not sell or provide
medical marijuana to a patient or caregiver other than at a licensed
dispensing facility or through delivery from a licensed dispensing
facility.
(b) Except as provided in Section 11362.5 of, and Article 2.5
(commencing with Section 11362.7) of Chapter 6 of Division 10 of, the
Health and Safety Code, a person shall not grow medical marijuana
other than at a licensed cultivation site.
(c) Except as provided in Section 11362.5 of, and Article 2.5
(commencing with Section 11362.7) of Chapter 6 of Division 10 of, the
Health and Safety Code, a person shall not manufacture medical
marijuana or medical marijuana products other than a licensed
manufacturer.
(d) A person shall not transport medical marijuana from one
facility issued a conditional license to another, other than a
licensed transporter.
(e) A licensed manufacturer may obtain medical marijuana from a
licensed cultivator and may furnish medical marijuana products to a
licensed dispensary.
(f) To meet the requirements of Article 8 (commencing with Section
111658) of Chapter 6 of Part 5 of Division 104 of the Health and
Safety Code, medical marijuana and medical marijuana products shall
be tested by a certified testing laboratory.
(g) This section shall become operative on July 1, 2017.
18110. (a) Beginning July 1, 2017, the bureau shall provide for
and shall issue conditional licenses. Conditional licenses shall be
required for all activity authorized under this chapter, including,
but not limited to, cultivation, storage, transport, and dispensing
of medical marijuana. A license issued pursuant to this chapter is
subject to compliance with all local ordinances and regulations
determined to be applicable by the local government of the
jurisdiction in which the licensee operates.
(b) The issuance of a conditional license shall not, in and of
itself, authorize the recipient to begin business operations. The
conditional license shall certify, at a minimum, that the applicant
has paid the state conditional licensing fee, successfully passed a
criminal background check, and met the state residency requirements.
(c) A facility shall not commence activity under the authority of
a conditional license until the applicant has obtained, in addition
to the conditional license, a license or permit from the local
jurisdiction in which he or she proposes to operate, following the
requirements of the applicable local ordinances.
(d) An applicant for a conditional license shall do all following:
(1) Pay the fee or fees required by this part for each license
being applied for.
(2) Register with the bureau on forms prescribed by the chief. The
forms shall contain sufficient information to identify the licensee,
including all of the following:
(A) Name of the owner or owners of a proposed facility, including
all persons or entities having an ownership interest other than a
security interest, lien, or encumbrance on property that will be used
by the applicant.
(B) The name, address, and date of birth of each principal officer
and board member.
(C) The address and telephone number of the proposed facility.
(D) In the case of a cultivation site, the GPS coordinates of the
site.
(E) In the case of a dispensary, the name and address of each
licensed cultivation site and licensed manufacturer from which the
dispensary will acquire or obtain medical marijuana or medical
marijuana products.
(3) Describe, in writing, the scope of business of the proposed
facility.
(4) Provide evidence that the applicant and owner have been legal
full-time residents of the state for not less than 12 months.
(5) Provide detailed operating procedures, in writing, for the
proposed facility, which shall include, but not be limited to,
procedures for facility and operational security, prevention of
diversion, employee screening, storage of medical marijuana,
personnel policies, and recordkeeping procedures.
(6) Provide the applicant's fingerprint images. For purposes of
this paragraph, "applicant" means the owner or owners of a proposed
facility, including all persons or entities having an ownership
interest other than a security interest, lien, or encumbrance on
property that will be used by the facility. If the owner is an
entity, fingerprints shall be submitted for each person participating
in the direction, control, or management of, or having a financial
interest in, the proposed facility.
(A) The applicant shall electronically submit to the Department of
Justice fingerprint images and related information required by the
Department of Justice for the purpose of obtaining information as to
the existence and content of a record of state or federal convictions
and arrests, and information as to the existence and content of a
record of state or federal convictions and arrests for which the
Department of Justice establishes that the person is free on bail, or
on his or her own recognizance, pending trial or appeal.
(B) The Department of Justice shall provide a response to the
bureau pursuant to paragraph (1) of subdivision (p) of Section 11105
of the Penal Code.
(C) The bureau shall request from the Department of Justice
subsequent notification service, as provided pursuant to Section
11105.2 of the Penal Code, for persons described in subparagraph (A).
(D) The Department of Justice shall charge the applicant a fee
sufficient to cover the reasonable cost of processing the requests
described in this paragraph.
(7) Identify all local ordinances applicable to the operation of
the proposed facility, and provide evidence that the proposed
facility is a permitted use at the proposed location under local
zoning and other ordinances.
(8) Provide a statement, signed by the applicant under penalty of
perjury, that the information provided is true.
(9) For an applicant with 20 or more employees, provide a
statement that the applicant will enter into, or demonstrate that it
has already entered into, and abide by the terms of a labor peace
agreement, as defined in Section 18100. The bureau may consult with
the Division of Labor Standards and Enforcement to ensure that the
labor peace agreement meets the requirements of Section 18100.
(10) Provide any other information required by the bureau.
(e) Each location and each discrete use of a single location shall
require a conditional license. Each application for a conditional
license is separate and distinct, and the bureau may charge a
separate fee for each.
(f) A conditional license issued pursuant to this section shall be
valid for 12 months after the date of issuance. The bureau shall
establish procedures for the renewal of a conditional license.
(g) A conditional license issued pursuant to this section shall be
restricted as follows:
(1) A single licensee shall not hold both a license for the
cultivation of marijuana and a license for the dispensing of
marijuana unless the cultivation site is restricted to 1,000 square
feet in area.
(2) The holder of a license for transport of marijuana may not
hold any other category of license.
(3) The holder of a certification for a testing laboratory may not
combine that certificate with any category of license.
(4) Persons or entities that own testing laboratories are
prohibited from licensure for any activity authorized under this
chapter, and are prohibited from holding an ownership interest in any
real property, personal property, or other assets associated or used
in any license category.
18111. (a) Upon receipt of the application materials and fee
required in Section 18110, the bureau, provided the applicant has not
committed an act or crime constituting grounds for the denial of
licensure under Section 18112, may issue the conditional license and
send a proof of issuance to the applicant.
(b) The chief shall, by regulation, prescribe conditions upon
which a person whose conditional license has previously been denied,
suspended, or revoked, may be issued a conditional license.
18112. (a) An application for a conditional license shall be
denied and a conditional license shall be suspended or revoked for a
past felony conviction for the possession for sale, sale,
manufacture, transportation, or cultivation of a controlled
substance, a felony criminal conviction for drug trafficking, a
felony conviction for embezzlement, a felony conviction involving
fraud or deceit, or any violent or serious felony conviction pursuant
to subdivision (c) of Section 667.5 of, or subdivision (c) of
Section 1192.7 of, the Penal Code. The bureau, at its discretion, may
issue a license to an applicant that would be otherwise denied
pursuant to this subdivision if the applicant has obtained a
certificate of rehabilitation, pursuant to Section 4852.13 of the
Penal Code.
(b) The chief, upon his or her determination, may deny, suspend,
or revoke a conditional license when a conditional licensee,
applicant, or employee, partner, officer, or member of an entity
conditionally licensed does any of the following:
(1) Making or authorizing in any manner or by any means a written
or oral statement that is untrue or misleading and that is known, or
that by exercise of reasonable care should be known, to be untrue or
misleading.
(2) Any other conduct that constitutes fraud.
(3) Conduct constituting gross negligence.
(4) Failure to comply with the provisions of this part, Article 8
(commencing with Section 111658) of Chapter 6 of Part 5 of Division
104 of the Health and Safety Code, or any rule or regulation adopted
pursuant to this part.
(5) Conduct that constitutes grounds for denial of licensure
pursuant to Chapter 2 (commencing with Section 480) of Division 1.5.
(6) Violation of any applicable local ordinance.
18113. (a) Upon denying, suspending, or revoking a conditional
license, the chief shall notify the applicant or licensee, in
writing, by personal service or mail addressed to the address of the
applicant or licensee set forth in the application. The applicant or
licensee shall be given a hearing within 30 days thereafter if he or
she files with the bureau a written request for hearing. Otherwise,
the denial, suspension, or revocation is deemed affirmed.
(b) All proceedings to deny, suspend, or revoke a conditional
license shall be conducted pursuant to Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the Government
Code.
18114. An application for or renewal of a license shall not be
approved if the bureau determines any of the following:
(a) The applicant fails to meet the requirements of this part or
any regulation adopted pursuant to this part or any applicable city,
county, or city and county ordinance or regulation. If a local
government adopts an ordinance or resolution authorizing medical
marijuana to be cultivated, manufactured, stored, distributed, or
sold within its jurisdiction, it shall submit to the bureau
documentation detailing their renewal requirements.
(b) The applicant, or any of its officers, directors, owners,
members, or shareholders, is a minor.
(c) The applicant has knowingly answered a question or request for
information falsely on the application form or failed to provide
information requested.
(d) The applicant, or any of its officers, directors, owners,
members, or shareholders has been sanctioned by the bureau, a city,
county, or city and county, for medical marijuana activities
conducted in violation of this part or any applicable local ordinance
or has had a conditional license or local license or permit revoked
in the previous five years.
(e) The proposed cultivation, processing, possession, storage,
manufacturing, testing, transporting, distribution, provision, or
sale of medical marijuana will violate any applicable local law or
ordinance.
(f) The applicant or the owner is unable to establish that he or
she has been a resident of the state for not less than 12 months.
18115. In addition to the provisions of this part, a conditional
license shall be subject to the restrictions of the local
jurisdiction in which the facility operates or proposes to operate.
Even if a conditional license has been granted pursuant to this part,
a facility shall not operate in a local jurisdiction that prohibits
the establishment of that type of business.
18116. The bureau may adopt regulations to limit the number of
conditional licenses issued pursuant to this part upon a finding that
the otherwise unrestricted issuance of conditional licenses is
dangerous to the public health and safety.
CHAPTER 3. FEES
18117. (a) The conditional licensing fee shall be established by
the bureau at a level sufficient to fund the reasonable costs of all
of the following:
(1) Administrative costs incurred by the bureau in overseeing the
conditional licensing program, establishing health and safety
standards, and certifying the required testing laboratories.
(2) Costs incurred by the bureau or the Department of Justice for
enforcement of the provisions of this part.
(3) Costs incurred by law enforcement and other public safety
entities for enforcing the provisions of this part in their
jurisdiction.
(b) In addition to the conditional licensing fee required pursuant
to subdivision (a), a licensed cultivation site shall be assessed a
fee in a sufficient amount to cover the reasonable regulatory costs
to the state of enforcing the environmental impact provisions
relating to those cultivation facilities. This fee shall be paid in
addition to any other fees charged by the bureau or any local agency.
This fee shall be distributed, as necessary and in proportion to its
regulatory function, between the following agencies responsible for
enforcing the regulations relating to the environmental impact of
licensed cultivation sites:
(1) The State Water Resources Control Board.
(2) The Department of Fish and Wildlife.
(3) The Department of Forestry and Fire Protection.
(4) The Department of Pesticide Regulation.
(5) The Department of Food and Agriculture.
(c) The bureau may establish a separate schedule of licensing fees
for application to nonprofit entities if the entity's nonprofit
status is verified by an independent audit or by confirmation of the
entity's 501(c)(3) status under the federal Internal Revenue Code.
18118. (a) The Medical Marijuana Regulation Fund is hereby
established within the State Treasury. Notwithstanding Section
16305.7 of the Government Code, the fund shall include any interest
and dividends earned on the money in the fund.
(b) Except as provided in subdivision (c), all fees collected
pursuant to this part shall be deposited into the Medical Marijuana
Regulation Fund. Notwithstanding Section 13340 of the Government
Code, all moneys within the fund are hereby continuously
appropriated, without regard to fiscal year, to the bureau solely for
the purposes of fully funding and administering this part,
including, but not limited to, the costs incurred by the bureau for
its administrative expenses.
(c) The Special Account for Environmental Enforcement is hereby
established as an account within the Medical Marijuana Regulation
Fund. Notwithstanding Section 16305.7 of the Government Code, the
account shall include any interest and dividends earned on the money
in the account. All fees collected pursuant to subdivision (b) of
Section 18117 shall be deposited in this account. Notwithstanding
Section 13340 of the Government Code, all moneys within the fund are
hereby continuously appropriated, without regard to fiscal year, to
the bureau for distribution to the entities listed in subdivision (b)
of Section 18117 to be used to enforce the environmental regulation
of licensed cultivation sites.
(d) All moneys collected as a result of penalties imposed under
this part shall be deposited directly into the General Fund, to be
available upon appropriation.
(e) The bureau may establish and administer a grant program to
allocate moneys from the Medical Marijuana Regulation Fund to state
and local entities for the purpose of assisting with medical
marijuana regulation and the enforcement of this part and other state
and local laws applicable to licensees.
18119. (a) A facility issued a conditional license shall not
acquire, cultivate, process, possess, store, manufacture, distribute,
sell, deliver, transfer, transport, or dispense medical marijuana
for any purpose other than those authorized by Article 2.5
(commencing with Section 11362.7) of Chapter 6 of Division 10 of the
Health and Safety Code.
(b) A licensed dispensing facility shall not acquire, cultivate,
process, possess, store, manufacture, distribute, sell, deliver,
transfer, transport, or dispense medical marijuana plants or medical
marijuana products except through a licensed cultivation site or a
licensed manufacturer.
CHAPTER 4. TRANSPORTATION OF MEDICAL MARIJUANA
18120. (a) A licensed transporter shall ship medical marijuana
only to facilities issued a conditional license and only in response
to a request for a specific quantity and variety from those
facilities.
(b) Prior to transporting medical marijuana products, a licensed
transporter shall do both of the following:
(1) Complete a shipping manifest using a form prescribed by the
bureau.
(2) Securely transmit a copy of the manifest to the licensee that
will receive the medical marijuana product, and to the bureau, prior
to transport.
(c) The licensed transporter making the shipment and the licensee
receiving the shipment shall maintain each shipping manifest and make
it available to local code enforcement officers, any other locally
designated enforcement entity, and the bureau upon request.
18121. (a) Transported medical marijuana products shall:
(1) Be transported only in a locked, safe, and secure storage
compartment that is securely affixed to the interior of the
transporting vehicle.
(2) Not be visible from outside the vehicle.
(b) A vehicle transporting medical marijuana products shall travel
directly from one licensed facility to another licensed facility
authorized to receive the shipment.
18122. (a) All transport vehicles shall be staffed with a minimum
of two employees. At least one transport team member shall remain
with the vehicle at all times when the vehicle contains medical
marijuana.
(b) Each transport team member shall have access to a secure form
of communication by which each member can communicate with personnel
at the licensed facility at all times when the vehicle contains
medical marijuana.
(c) Each transport team member shall possess documentation of
licensing and a government-issued identification card at all times
when transporting or delivering medical marijuana and shall produce
it to any representative of the bureau or law enforcement upon
request.
(d) This part shall not be construed to authorize or permit a
licensee to transport, or cause to be transported, medical marijuana
or medical marijuana products outside the state.
(e) This section shall only apply to a licensed transporter.
18123. A local jurisdiction shall not prevent transportation
through or to a facility issued a conditional license, by a
conditionally licensed transporter who acts in compliance with this
part.
CHAPTER 5. ENFORCEMENT
18124. (a) The bureau shall, in consultation with local
governments, develop an enforcement framework that clarifies the
enforcement roles of the state and local governments, designating
local governments with primary enforcement responsibility, maximizes
the capabilities and resources of local enforcement agencies, and
ensures that there is communication and collaboration between the
bureau, relevant state agencies, and local governments to enhance and
streamline enforcement efforts.
(b) A state agency is not required by this section to enforce a
city, county, city and county, or local law, ordinance, rule, or
regulation regarding the site or operation of a facility or
transporter issued a conditional license.
18125. The bureau may assist state taxation authorities in the
development of uniform policies for the state taxation of licensees.
18126. (a) For facilities issued a conditional license that are
located within the incorporated area of a city, the city shall have
full power and authority to enforce this part and Article 8
(commencing with Section 111658) of Chapter 6 of Part 5 of Division
104 of the Health and Safety Code and the rules, regulations, and
standards promulgated by the bureau. The city shall further assume
complete responsibility for any regulatory function relating to those
licensees within the city limits that would otherwise be performed
by the county or any county officer or employee, without liability,
cost, or expense to the county.
(b) For licensed facilities located within the unincorporated area
of a county, the county shall have full power and authority to
enforce this part and Article 8 (commencing with Section 111658) of
Chapter 6 of Part 5 of Division 104 of the Health and Safety Code and
the rules, regulations, and standards promulgated by the bureau.
18127. (a) A willful violation of Section 18110, including an
attempt to falsify information on an application or to otherwise
defraud or mislead a state or local agency in the course of the
application process, shall be punishable by a civil fine of up to
thirty-five thousand dollars ($35,000) for each individual violation.
(b) A technical violation of Section 18110 shall, at the bureau's
discretion, be punishable by a civil fine of up to ten thousand
dollars ($10,000) for each individual violation.
18128. A district attorney, county counsel, city attorney, or
city prosecutor may bring an action to enjoin a violation or the
threatened violation of any provision of this part, including, but
not limited to, a licensee's failure to correct objectionable
conditions following notice or as a result of a rule promulgated
pursuant to this part. The action shall be brought in the county in
which the violation occurred or is threatened to occur. A proceeding
brought pursuant to this part shall conform to the requirements of
Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the
Code of Civil Procedure. Nothing in this section shall diminish the
authority of a local government to take requisite enforcement actions
pertaining to its own ordinances or regulations.
18129. Nothing in this part shall prevent a city or other local
governing body from taking action as specified in Section 11362.83 of
the Health and Safety Code.
18130. This part shall not be construed to limit a law
enforcement agency's ability to investigate unlawful activity in
relation to a facility issued a conditional license.
CHAPTER 6. CANNABIS EMPLOYEES
18131. The Division of Labor Standards Enforcement shall do all
of the following:
(a) Maintain minimum standards for the competency and training of
employees of a licensed cultivation site or a licensed dispensing
facility, as defined in subdivisions (i) and (j) of
Section 18100, through a system of testing and
certification.
(b) Maintain an advisory committee and panels as necessary to
carry out its functions under this section. There shall be employer
representation on the committee and panels.
(c) Establish and collect certification fees not to exceed the
reasonable cost to the division in issuing certifications.
(d) Adopt regulations necessary to implement this chapter.
(e) Issue certification cards to employees who have been certified
pursuant to this chapter.
(f) The division shall establish registration fees in an amount
reasonably necessary to implement this section, not to exceed
twenty-five dollars ($25) for the initial registration. There shall
not be a fee for the annual renewal of registration. Fees shall be
placed in the Cannabis Certification Fund, established pursuant to
Section 18135.
18132. (a) Except as provided in subdivision (c), persons who
perform work as cannabis employees shall be certified by the
division.
(b) Individuals desiring to be certified shall submit an
application for certification and examination that includes an
employment history report from the Social Security Administration.
The individual may redact his or her social security number from the
employment history report before it is submitted.
(c) (1) Certification is not required for registered apprentices
working as cannabis employees as part of an apprenticeship program
approved under an approved apprenticeship program. An apprentice who
is within one year of completion of his or her term of apprenticeship
shall be permitted to take the certification examination and, upon
passing the examination, shall be certified immediately upon
completion of the term of apprenticeship.
(2) An uncertified person may perform work for which certification
is otherwise required in order to acquire the necessary on-the-job
experience for certification, if the person is under the direct
supervision of a cannabis employee certified pursuant to Section
18131 who is responsible for supervising no more than one uncertified
person. The Division of Labor Standards Enforcement may develop
additional criteria governing this paragraph.
(d) The following shall constitute additional grounds for
disciplinary proceedings, including suspension or revocation of the
conditional license issued pursuant to Chapter 2 (commencing with
Section 18108):
(1) The licensed cultivation site or licensed dispensing facility
willfully employs one or more uncertified persons to perform work as
cannabis employees in violation of this section.
(2) The licensed cultivation site or licensed dispensing facility
willfully fails to provide adequate supervision of uncertified
workers.
(3) The licensed cultivation site or licensed dispensing facility
willfully fails to provide adequate supervision of apprentices
performing work pursuant to paragraph (1) of subdivision (c).
(e) The Labor Commissioner shall maintain a process for referring
cases to the bureau when it has been determined that a violation of
this section has likely occurred. The Labor Commissioner shall have a
memorandum of understanding with the bureau in furtherance of this
section.
(f) Upon receipt of a referral by the Labor Commissioner alleging
a violation under this section, the bureau shall open an
investigation. Disciplinary action against the licensee shall be
initiated within 60 days of the receipt of the referral. The bureau
may initiate disciplinary action against a licensee upon his or her
own investigation, the filing of a complaint, or a finding that
results from a referral from the Labor Commissioner alleging a
violation under this section. Failure of the employer or employee to
provide evidence of certification or apprentice status shall create a
rebuttable presumption of violation of this provision.
18135. The Cannabis Certification Fund is established as a
special account in the State Treasury. Proceeds of the fund may be
expended by the division, upon appropriation by the Legislature, for
the costs of validating and certifying cannabis employees, as
provided by this chapter, and shall not be used for any other
purpose.
CHAPTER 7. REGULATION OF MEDICAL MARIJUANA
18136. (a) A person shall not distribute any form of advertising
for physician recommendations for medical marijuana in California
unless the advertisement bears the following notice to consumers:
NOTICE TO CONSUMERS: The Compassionate Use Act of 1996 ensures
that seriously ill Californians have the right to obtain and use
marijuana for medical purposes where medical use is deemed
appropriate and has been recommended by a physician who has
determined that the person's health would benefit from the use of
medical marijuana. Physicians are licensed and regulated by the
Medical Board of California and arrive at the decision to make this
recommendation in accordance with accepted standards of medical
responsibility.
(b) Advertising for physician recommendations for medical
marijuana shall meet all requirements of Section 651. Price
advertising shall not be fraudulent, deceitful, or misleading,
including statements or advertisements of bait, discounts, premiums,
gifts, or statements of a similar nature.
18137. (a) A conditionally licensed facility shall implement
sufficient security measures to both deter and prevent unauthorized
entrance into areas containing medical marijuana or medical
marijuana products and theft of
medical marijuana at those licensed facilities. These security
measures shall, in addition to any requirements imposed by local
ordinance, include, but not be limited to, all of the following:
(1) Preventing individuals from remaining on the premises of the
facility if they are not engaging in activity expressly related to
the operations of the facility.
(2) Establishing limited access areas accessible only to
authorized facility personnel, in compliance with all local building
and fire codes.
(3) Storing all finished medical marijuana in a secured and locked
room, safe, or vault, and in a manner as to prevent diversion,
theft, and loss.
(b) A conditionally licensed facility shall notify appropriate law
enforcement authorities within 24 hours after discovering any of the
following:
(1) Discrepancies identified during inventory.
(2) Diversion, theft, loss, or any criminal activity involving the
facility or a facility agent.
(3) The loss or unauthorized alteration of records related to
marijuana, registered qualifying patients, personal caregivers, or
facility agents.
(4) Any other breach of security.
(c) A licensed cultivation site shall weigh, inventory, and
account for on video, each shipment of medical marijuana that exceeds
a threshold amount set by the bureau that is to be transported to an
individual licensed dispensing facility prior to its leaving its
origination location. Within eight hours after arrival at the
destination, the licensed dispensing facility shall reweigh,
reinventory, and account for on video, all transported medical
marijuana that was subject to these provisions at the licensed
cultivation site.
18138. (a) The bureau shall require an annual audit , in a
form specified by the bureau, of all conditionally licensed
facilities. The reasonable costs of the audit shall be paid for by
the licensee.
(b) Completed audit reports shall also be submitted by the
licensee to local code enforcement offices, or the appropriate
locally designated enforcement entity, within 30 days of the
completion of the audit.
(c) It is the responsibility of each conditionally licensed
facility to develop a robust quality assurance protocol in accordance
with the regulations issued by the bureau that, at a minimum,
includes all of the provisions of this part.
18139. (a) A laboratory certified by the bureau to perform random
sample testing of medical marijuana products shall not acquire,
process, possess, store, transfer, transport, or dispense medical
marijuana for any purpose other than those authorized by Article 2.5
(commencing with Section 11362.7) of Chapter 6 of Division 10 of the
Health and Safety Code. All transfer or transportation shall be
performed pursuant to a specified chain of custody protocol.
(b) A laboratory certified by the bureau to perform random sample
testing of medical marijuana products shall not acquire, process,
possess, store, transfer, transport, or dispense medical marijuana
plants or medical marijuana products except through a patient,
primary caregiver, or a facility issued a conditional license. All
transfer or transportation shall be performed pursuant to a specified
chain of custody protocol.
18140. (a) Information identifying the names of patients, their
medical conditions, or the names of their primary caregivers received
and contained in records kept by the bureau for the purposes of
administering this part are confidential and exempt from the
California Public Records Act (Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code) and are not
subject to disclosure to an individual or private entity, except as
necessary for authorized employees of the state to perform official
duties pursuant to this part.
(b) (1) Nothing in this section shall preclude any of the
following:
(A) Bureau employees notifying state or local agencies about
information submitted to the bureau that the employee suspects is
falsified or fraudulent.
(B) Notifications from the bureau to state or local agencies of
apparent violations of this part or an applicable local ordinance.
(C) Verification of requests by state or local agencies to confirm
licenses and certificates issued by the bureau or other state
agency.
(D) Providing information requested pursuant to a court order or
subpoena issued by a court, an administrative agency, or local
governing body authorized by law to issue subpoenas.
(2) Information shall not be disclosed beyond what is necessary to
achieve the goals of a specific investigation or notification or the
parameters of a specific court order or subpoena.
18141. (a) The actions of a licensee, its employees, and its
agents, that are permitted pursuant to both a conditional license and
a license or permit issued by the local jurisdiction following the
requirements of the applicable local ordinances, and that are
conducted in accordance with the requirements of this part and
regulations adopted pursuant to this part, are not unlawful under
state law and shall not be an offense subject to arrest or
prosecution under state law.
(b) The actions of a person who, in good faith and upon
investigation, allows his or her property to be used by a licensee,
its employees, and its agents, as permitted pursuant to both a
conditional license and a license or permit issued by the local
jurisdiction following the requirements of the applicable local
ordinances, are not unlawful under state law and shall not be an
offense subject to arrest or prosecution under state law.
(c) This section shall not be deemed to limit the authority or
remedies of a city, county, or city and county under any provision of
law, including, without limitation, Section 7 of Article XI of the
California Constitution.
18142. (a) A licensee shall not cultivate, process, store,
manufacture, transport, or sell medical marijuana in the state unless
accurate records are kept at the licensed premises of the growing,
processing, storing, manufacturing, transporting, or selling by the
licensee in the state. These records shall include the name and
address of the supplier of marijuana received or possessed by the
licensee, the location at which the marijuana was cultivated, the
amount of marijuana received, the form in which it is received, the
name of the employee receiving it, and the date of receipt. These
records shall also include receipts for all expenditures incurred by
the licensee and banking records, if any, for all funds obtained or
expended in the performance of any activity under the authority of
the conditional license. A licensee who has a conditional license for
more than one premises may keep all records at one of the
conditionally licensed premises. Required records shall be kept for a
period of seven years from the date of the transaction.
(b) The bureau and an appropriate state or local agency may
examine the books and records of a conditional licensee and may visit
and inspect the premises of a conditional licensee, as the bureau or
state or local agency deems necessary to perform its duties under
this part.
(c) Books or records requested by the bureau or an appropriate
state or local agency shall be provided by the conditional licensee
no later than five business days after the request is made.
(d) The bureau or a state or local agency may enter and inspect
the premises of a facility issued a conditional license between the
hours of 8 a.m. and 8 p.m. on any day that the facility is open, or
at any reasonable time, to ensure compliance and enforcement of the
provisions of this part or a local ordinance.
(e) If a licensee or an employee of a licensee refuses, impedes,
obstructs, or interferes with an inspection pursuant to subdivision
(d), the conditional license may be summarily suspended and the
bureau shall directly commence proceedings for the revocation of the
conditional license.
(f) If a licensee or an employee of a licensee fails to maintain
or provide the books and records required pursuant to this section,
the licensee shall be subject to a civil fine of fifteen thousand
dollars ($15,000) per individual violation.
SEC. 5. Section 23028 is added to the Government Code, to read:
23028. (a) (1) In addition to any authority otherwise provided by
law, the board of supervisors of any county may impose, by
ordinance, a tax on the privilege of cultivating, dispensing,
producing, processing, preparing, storing, providing, donating,
selling, or distributing marijuana by a licensee operating pursuant
to Chapter 18 (commencing with Section 26000) of Division 9 of the
Business and Professions Code. The tax may be imposed for general
governmental purposes or for purposes specified in the ordinance by
the board of supervisors.
(2) The board of supervisors shall specify in the ordinance
proposing the tax the activities subject to the tax, the applicable
rate or rates, the method of apportionment, and the manner of
collection of the tax. A tax imposed pursuant to this section is a
tax and not a fee or special assessment, and the tax is not required
to be apportioned on the basis of benefit to any person or property
or be applied uniformly to all taxpayers or all real property.
(3) A tax imposed by a county pursuant to this section by a county
may include a transactions and use tax imposed solely for marijuana
or marijuana products, which shall otherwise conform to Part 1.6
(commencing with Section 7251) of Division 2 of the Revenue and
Taxation Code. Notwithstanding Section 7251.1 of the Revenue and
Taxation Code, the tax may be imposed at any rate specified by the
board of supervisors, and the tax rate authorized by this section
shall not be considered for purposes of the combined tax rate
limitation established by that section.
(4) The tax authorized by this section may be imposed upon any or
all of the activities set forth in paragraph (1), regardless of
whether the activity is undertaken individually, collectively, or
cooperatively, and regardless of whether the activity is for
compensation or gratuitously, as determined by the board of
supervisors.
(5) The board of supervisors shall specify whether the tax applies
throughout the entire county or within the unincorporated area of
the county.
(b) In addition to any other method of collection authorized by
law, the board of supervisors may provide for the collection of the
tax imposed pursuant to this section in the same manner, and subject
to the same penalties and priority of lien, as other charges and
taxes fixed and collected by the county.
(c) Any tax imposed pursuant to this section shall be subject to
applicable voter approval requirements imposed by any other law.
(d) For purposes of this section, "marijuana" shall have the same
meanings set forth in Section 18100 of the Business and Professions
Code.
(e) This section does not limit or prohibit the levy or collection
or any other fee, charge, or tax, or any license or service fee or
charge upon, or related to, the activities set forth in subdivision
(a) as otherwise provided by law. This section shall not be construed
as a limitation upon the taxing authority of any county as provided
by other law.
SEC. 6. Section 11362.775 of the Health and Safety Code is amended
to read:
11362.775. (a) Qualified patients, persons with valid
identification cards, and the designated primary caregivers of
qualified patients and persons with identification cards, who
cultivate marijuana for medical purposes, shall not solely on the
basis of that fact be subject to state criminal sanctions under
Section 11357, 11358, 11359, 11360, 11366, 11366.5, or 11570.
(b) An individual employee, officer, or board member of a facility
issued a conditional license pursuant to Part 5 (commencing with
Section 18100) of Division 7 of the Business and Professions Code
shall not be subject to state criminal sanctions under Section 11357,
11358, 11359, 11360, 11366, 11366.5, or 11570 and any successor
statutes, based solely on holding a conditional license, for the
possession, cultivation, processing, packaging, storage,
transportation, sale, or distribution of medical marijuana to a
facility holding a conditional license pursuant to Part 5 (commencing
with Section 18100) of Division 7 of the Business and Professions
Code or directly to a qualified patient, a person with a valid
identification card, or the designated primary caregiver of a
qualified patient or person with a valid identification card, within
the state, unless the information contained on the licensing
paperwork is false or falsified, the license has been obtained by
means of fraud, or the person is otherwise in violation of Part 5
(commencing with Section 18100) of Division 7 of the Business and
Professions Code.
(c) This section shall not diminish the protections of Section
18141 of the Business and Professions Code.
(d) This section shall become operative on January 1, 2018.
SEC. 7. Article 8 (commencing with Section 111658) is added to
Chapter 6 of Part 5 of Division 104 of the Health and Safety Code, to
read:
Article 8. Medical Marijuana
111658. For purposes of this article, the following definitions
shall apply:
(a) "Bureau" means the Bureau of Medical Marijuana Regulations in
the Department of Consumer Affairs.
(b) "Certified testing laboratory" means a laboratory that is
certified by the bureau to perform random sample testing of medical
marijuana for patients, primary caregivers, and facilities issued
conditional licenses pursuant to Part 5 (commencing with Section
18100) of Division 7 of the Business and Professions Code, pursuant
to the certification standards for those facilities promulgated by
the department.
(c) "Edible medical marijuana product" means medical marijuana or
a medical marijuana-derived product that is ingested or meant to be
ingested through the mouth and into the digestive system.
(d) "Marijuana" means all parts of the plant Cannabis sativa L.
sativa, cannabis indica, or cannabis ruderalis, whether growing or
not; the seeds thereof; the resin, whether crude or purified,
extracted from any part of the plant; and every compound,
manufacture, salt, derivative, mixture, or preparation of the plant,
its seeds, or resin. "Marijuana" does not include the mature stalks
of the plant, fiber produced from the stalks, oil or cake made from
the seeds of the plant, any other compound, manufacture, salt,
derivative, mixture, or preparation of the mature stalks (except the
resin extracted therefrom), fiber, oil, or cake, or the sterilized
seed of the plant which is incapable of germination. "Marijuana" also
means marijuana, as defined by Section 11018.
(e) "Representative samples" means samples taken from each batch
or shipment of medical marijuana received from a licensed cultivation
site or any other source if intended for sale.
111659. The bureau, by July 1, 2017, shall accomplish both of the
following:
(a) Establish quality assurance protocols to ensure uniform
testing standards for all medical marijuana sold via dispensaries or
other facilities, or cultivated or manufactured by facilities, that
are issued a conditional license pursuant to Part 5 (commencing with
Section 18100) of Division 7 of the Business and Professions Code.
(b) In consultation with outside entities at its discretion,
develop a list of certified testing laboratories that can perform
uniform testing in compliance with this article, and post that list
on its Internet Web site.
111660. (a) A facility issued a conditional license pursuant to
Part 5 (commencing with Section 18100) of Division 7 of the Business
and Professions Code shall bear the responsibility for contracting
with certified testing laboratories for regular, random sample
testing of representative samples of all medical marijuana cultivated
or intended for sale or distribution, and shall bear the cost of
that testing.
(b) A facility issued a conditional license pursuant to Part 5
(commencing with Section 18100) of Division 7 of the Business and
Professions Code shall maintain records of testing reports for seven
years, either on site in a digital format or at a secure off-site
location in either digital or paper format. These facilities shall
provide results of test reports to local code enforcement officers,
any other locally designated enforcement entity, and the bureau upon
request.
111661. Quality assurance protocols shall be required between all
licensed cultivation sites, licensed manufacturers, and licensed
dispensing facilities to guarantee safe and reliable medicinal
marijuana delivery to all patients. These quality assurance protocols
shall include both of the following:
(a) Providing supplier information to dispensaries in order for
recall procedures to be implemented, if and when necessary.
(b) Safety testing of all medical marijuana prior to packaging for
sale and patient exposure to identify and eliminate microbiological
contaminants and chemical residue.
111662. For purposes of this article, edible medical marijuana
products are deemed to be unadulterated food products. In addition to
the quality assurance standards provided in Section 111661, all
edible medical marijuana products shall comply with the following
requirements:
(a) Baked edible medical marijuana products, including, but not
limited to, brownies, bars, cookies, and cakes, tinctures, and other
edible medical marijuana products that do not require refrigeration
or hot holding may be manufactured, sold, or otherwise distributed at
facilities issued a conditional license pursuant to Part 5
(commencing with Section 18100) of Division 7 of the Business and
Professions Code.
(b) A facility issued a conditional license pursuant to Part 5
(commencing with Section 18100) of Division 7 of the Business and
Professions Code shall have an owner or employee who has successfully
passed an approved and accredited food safety certification
examination as specified in Sections 113947.1, 113947.2, and 113947.3
prior to selling, manufacturing, or distributing edible medical
marijuana products requiring refrigeration or hot holding.
(c) Individuals manufacturing or selling edible medical marijuana
products shall thoroughly wash their hands before commencing
production and before handling finished edible medical marijuana
products.
(d) All edible medical marijuana products sold for direct
consumption and infused with marijuana concentrate shall be
individually wrapped at the original point of preparation.
(e) Products containing tetrahydrocannabinol (THC) shall be
prepared in compliance with maximum potency standards for THC and THC
concentrates set forth in the bureau's regulations.
(f) Prior to sale or distribution at a licensed dispensing
facility, edible medical marijuana products shall be labeled and in a
tamper evident package. Labels and packages of edible medical
marijuana products shall meet the following requirements:
(1) Edible medical marijuana packages and labels shall not be made
to be attractive to children.
(2) All edible medical marijuana product labels shall include the
following information, prominently displayed and in a clear and
legible font:
(A) Manufacture date and source.
(B) The statement "KEEP OUT OF REACH OF CHILDREN AND ANIMALS" in
bold print.
(C) The statement "FOR MEDICAL USE ONLY."
(D) The statement "THE INTOXICATING EFFECTS OF THIS PRODUCT MAY BE
DELAYED BY UP TO TWO HOURS."
(E) Net weight of medical marijuana in package.
(F) A warning if nuts or other known allergens are used and the
total weight, in ounces or grams, of medical marijuana in the
package.
(G) List of pharmacologically active ingredients, including, but
not limited to, tetrahydrocannabinol (THC) and cannabidiol (CBD)
content, the THC amount in milligrams per serving, servings per
package, and the THC amount in milligrams for the package total.
(H) Clear indication, in bold type, that the product contains
medical marijuana.
(I) Identification of the source and date of cultivation and
manufacture.
(J) The name and location of the licensed dispensary providing the
product.
(K) The date of sale.
(L) Any other requirement set by the bureau.
(g) Only generic food names may be used to describe edible medical
marijuana products.
SEC. 8. Section 147.5 is added to the Labor Code, to read:
147.5. (a) By January 1, 2017, the Division of Occupational
Safety and Health in the Department of Industrial Relations shall
convene an advisory committee to evaluate whether there is a need to
develop industry-specific regulations related to the activities of
facilities issued a conditional license pursuant to Part 5
(commencing with Section 18100) of Division 7 of the Business and
Professions Code.
(b) By July 1, 2017, the advisory committee shall present its
findings and recommendations for consideration to the board. No later
than July 1, 2017, the board shall render a decision regarding the
adoption of industry-specific regulations.
SEC. 9. Section 1155.7 of the Labor Code is amended to read:
1155.7. (a) Nothing in this chapter shall be construed to apply
or be applicable to a labor organization in its representation of
workers who are not agricultural employees. Any such labor
organization shall continue to be governed in its intrastate
activities for nonagricultural workers by Section 923 and applicable
judicial precedents.
(b) To the extent not prohibited by law and for purposes of this
chapter, "agricultural employer" includes a licensed cultivation
site, as defined in Section 18100 of the Business and Professions
Code.
SEC. 10. Section 3094 is added to the Labor Code, to read:
3094. The Division of Apprenticeship Standards shall investigate,
approve, or reject applications for apprenticeship programs for
employees of a licensed cultivation site or a licensed dispensing
facility, as defined in subdivisions (i) and (j) of Section 18100 of
the Business and Professions Code. The Division of Apprenticeship
Standards shall have the authority to issue rules necessary to
implement and regulate the establishment of the apprenticeship
programs described in this section.
SEC. 11. The provisions of this act are severable. If any
provision of this act or its application is held invalid, that
invalidity shall not affect other provisions or applications that can
be given effect without the invalid provision or application.
SEC. 12. The Legislature finds and declares that Section 4 of this
act imposes a limitation on the public's right of access to the
meetings of public bodies or the writings of public officials and
agencies within the meaning of Section 3 of Article I of the
California Constitution. Pursuant to that constitutional provision,
the Legislature makes the following findings to demonstrate the
interest protected by this limitation and the need for protecting
that interest:
The limitation imposed under this act is necessary for purposes of
compliance with the federal Health Insurance Portability and
Accountability Act of 1996 (42 U.S.C. Sec. 1320d et seq.), the
Confidentiality of Medical Information Act (Part 2.6 (commencing with
Section 56) of Division 1 of the Civil Code), and the Insurance
Information and Privacy Protection Act (Article 6.6 (commencing with
Section 791) of Part 2 of Division 1 of the Insurance Code).
SEC. 13. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.