BILL NUMBER: AB 34 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 5, 2015
AMENDED IN ASSEMBLY APRIL 23, 2015
AMENDED IN ASSEMBLY APRIL 20, 2015
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Members Bonta and Jones-Sawyer
DECEMBER 1, 2014
An act to amend Sections 2220.05, 2242, and 2264 of, and to add
Chapter 18 (commencing with Section 26000) to Division 9 of, the
Business and Professions Code, to add Section 23028 to the Government
Code, to amend Section 11362.775 of the Health and Safety Code, and
to add Sections 147.5 and 3094 to the Labor Code, relating to medical
cannabis, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 34, as amended, Bonta. Medical cannabis regulation and
enforcement.
(1) Existing law, the Compassionate Use Act of 1996, an initiative
measure enacted by the approval of Proposition 215 at the November
5, 1996, statewide general election, authorizes the use of marijuana
for medical purposes.
Existing law enacted by the Legislature, commonly referred to as
the Medical Marijuana Program Act (MMPA), requires the establishment
of a program for the issuance of identification cards to qualified
patients so that they may use marijuana for medical purposes without
arrest or prosecution under specified state law, and requires the
establishment of guidelines for the lawful cultivation of marijuana
grown for medical use.
This bill would enact the Medical Cannabis Regulation and Control
Act and would establish the Division of Medical Cannabis Regulation
and Enforcement within the Department of Alcoholic Beverage Control,
the Division of Medical Cannabis Manufacturing and Testing within the
State Department of Public Health, and the Division of Medical
Cannabis Cultivation within the Department of Food and Agriculture
and would set forth the duties of the respective regulatory
authorities.
The bill would, 180 days after the division posts a specified
notice on its Internet Web site, make those provisions of the MMPA
that prohibit prosecution of qualified patients, persons with valid
identification cards, and designated primary caregivers who associate
in California, collectively or cooperatively, to cultivate marijuana
for medical purposes, inapplicable to licensees. The bill would,
thereafter, permit a dispensary to provide patients with medical
marijuana and medical marijuana products obtained only from persons
licensed under this bill.
The bill would require the regulatory authorities to license
persons to engage in the various aspects of commercial cannabis
activity, as defined. The bill would designate as peace officers
specified officers and employees of the regulatory authorities. The
bill would prescribe requirements for the issuance, renewal,
suspension, and revocation of a mandatory commercial license and
would authorize the assessment of related fees.
The bill would not preclude a city or county from adopting a local
ordinance, not consistent with this bill, that regulates the
location, operation, or establishment of a licensee or prohibits
commercial cannabis activity within its jurisdiction. The bill would
require state agencies to collaborate with local agencies, and would
require local agencies to, within the scope of their jurisdiction,
assist state agencies in the enforcement of the bill. By imposing
these enforcement duties on local agencies, the bill would impose a
state-mandated local program.
The bill would establish the Medical Marijuana Regulation
Cannibis Control Fund with separate accounts
for fees and for penalties, and would require deposit of fees and
penalties into their respective accounts within the fund. The bill
would continuously appropriate moneys within the fees account to the
division appropriate regulating authorities
for the purposes of administering the program.
The bill would authorize the regulatory authorities to collaborate
to establish a regulation and enforcement assistance grant program
and would authorize the Department of Transportation to conduct
research and develop protocols regarding determining whether a driver
is operating a vehicle under the influence of marijuana to assist
law enforcement agencies. The bill would make the fines and penalties
deposited into the fund available, upon appropriation by the
Legislature, for funding these programs.
The bill would require the regulatory authorities, as soon as
practicable, to allow qualified applicants for licensure to apply for
and receive a provisional license to engage in commercial cannabis
activity and to adopt emergency regulations for that purpose.
The bill would require the regulatory authorities to adopt
regulations necessary for the implementation and enforcement of this
bill in consultation with prescribed state agencies relating to
environmental, agricultural, consumer protection, worker safety, and
food and product safety requirements. The bill would authorize the
regulatory authorities to enter into interagency agreements to pay,
from fees deposited into the fund, the associated costs incurred by
these state agencies.
The bill would establish a cannabis employee certification,
training, and apprenticeship program for cultivation sites and
dispensaries, as defined. The bill would require the Division of
Labor Standards Enforcement to maintain and enforce minimum standards
for the competency and training of employees and to certify cannabis
employees. The bill would require the Division of Labor
Standards Enforcement, Occupational Safety and Health
by January 1, 2017, to convene an advisory committee to
evaluate whether there is a need to develop industry-specific
regulations related to the activities of licensed facilities. The
bill would require the advisory committee to present to the
Occupational Safety and Health Standards Board its findings and
recommendations for consideration by the board, and would require the
board, by July 1, 2017, to render a decision regarding the adoption
of industry-specific regulations.
The bill would require a licensee to keep various records in
connections with commercial cannabis activities and would prescribe
requirements for making records available to the division and any
state or local agency. The bill would prohibit the disclosure of
certain patient and caregiver information pursuant to the California
Public Records Act.
The bill would declare that it does not apply to, or diminish the
protections granted to, a patient or primary caregiver acting
pursuant to the Compassionate Use Act of 1996 and would exempt these
parties from the application of the act.
The bill would declare that the actions of a licensee or
provisional licensee, its employees, and its agents that are within
the scope of a valid license are not unlawful under state law, as
specified. The bill would provide similar state law immunity for a
property owner who allows his or her property to be used by a
licensee or provisional licensee.
The bill would require the regulatory authorities to work in
conjunction with law enforcement entities throughout the state to
implement and enforce the rules and regulations regarding medical
cannabis and to take appropriate action against businesses and
individuals that fail to comply with the law.
The bill would authorize the director of any regulatory authority,
and prescribed local entities, to bring an action to enjoin
violations. The bill would require the regulatory authority to
establish a digital database and to allow on its Internet
Web site to permit state and local law enforcement agencies
to verify licenses.
(2) Existing law, the Medical Practice Act, establishes the
Medical Board of California and sets forth its powers and duties,
including, but not limited to the licensing and regulation of
physicians and surgeons. Existing law sets forth the conduct that
would constitute unprofessional conduct for a physician and surgeon,
including, but not limited to, prescribing certain drugs without an
appropriate examination or medical indication. Existing law generally
makes a violation of these provisions a misdemeanor.
This bill would specify that recommending marijuana to patients
without an appropriate prior examination and a medical indication is
unprofessional conduct.
The bill would provide that specified acts of recommending
marijuana without a good faith examination are among the types of
cases that should be given priority for investigation and prosecution
by the Medical Board of California, as described above. The bill
would deem as unprofessional conduct a physician and surgeon being
employed by, or entering into an agreement with, a medical cannabis
licensee to provide recommendations for medical marijuana.
By broadening the definition of a crime, the bill would impose a
state-mandated local program.
(3) Existing law authorizes the board of supervisors of a county
and the governing body of a city to impose various taxes, including a
transactions and use tax at a rate of 0.125%, or a multiple thereof,
if approved by the required vote of the board or governing body and
the required vote of qualified voters, and limits the combined rate
of transactions and use taxes within a city or county to 2%.
This bill would authorize the board of supervisors of a county to
impose, by ordinance, a tax on the privilege of cultivating,
dispensing, producing, processing, preparing, storing, providing,
donating, selling, or distributing cannabis or cannabis products,
including a transactions and use tax at any rate specified by the
board. The bill would authorize the tax to be imposed for either
general or specific governmental purposes. The bill would require a
tax imposed pursuant to this authority to be subject to any
applicable voter approval requirement.
(4) This bill would specify that its provisions are severable.
(5) 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.
(6) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that with regard to certain mandates no
reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above.
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) The people of California enacted the Compassionate Use Act of
1996 to ensure that seriously ill Californians have access to
marijuana for medical purposes. The Compassionate Use Act of 1996
urged the state and federal governments to implement a plan to
provide for the safe and affordable distribution of medical marijuana
to all patients in medical need of the drug.
(b) Under federal law, marijuana is a Schedule 1 drug. Its
placement in that schedule is based upon a finding that marijuana has
no currently accepted medical use. That finding, if correct at the
time it was made, is no longer accurate. California, exercising its
traditional power to regulate the practice of medicine, has
determined that marijuana has a significant role to play.
(c) California, acting alone, is powerless to change federal law
and to correct this misunderstanding in federal law about the role
that marijuana can and does play in the practice of medicine.
However, federal enforcement authorities have recognized that in
states that have authorized marijuana use and have enacted strong and
effective regulatory and enforcement systems to control the
cultivation, distribution, sale, and possession of marijuana, conduct
in compliance with those regulatory and enforcement systems is less
likely to threaten federal priorities and, thus, less likely to
require federal enforcement intervention (See: Memorandum For All
United States Attorneys--Guidance Regarding Marijuana Enforcement, by
James M. Cole, Deputy Attorney General, August 29, 2013).
(d) The purpose of this act is to establish for California a
robust medical cannabis regulatory and enforcement system to ensure
that conduct in compliance with California's medical marijuana laws
does not threaten the federal priorities as set forth in the James M.
Cole memorandum, and, therefore, does not require federal
enforcement intervention.
SEC. 2. Section 2220.05 of the Business and Professions Code is
amended to read:
2220.05. (a) In order to ensure that its resources are maximized
for the protection of the public, the Medical Board of California
shall prioritize its investigative and prosecutorial resources to
ensure that physicians and surgeons representing the greatest threat
of harm are identified and disciplined expeditiously. Cases involving
any of the following allegations shall be handled on a priority
basis, as follows, with the highest priority being given to cases in
the first paragraph:
(1) Gross negligence, incompetence, or repeated negligent acts
that involve death or serious bodily injury to one or more patients,
such that the physician and surgeon represents a danger to the
public.
(2) Drug or alcohol abuse by a physician and surgeon involving
death or serious bodily injury to a patient.
(3) Repeated acts of clearly excessive prescribing, furnishing, or
administering of controlled substances, or repeated acts of
prescribing, dispensing, or furnishing of controlled substances, or
recommending marijuana to patients for medical purposes, without a
good faith prior examination of the patient and medical reason
therefor. However, in no event shall a physician and surgeon
prescribing, furnishing, or administering controlled substances for
intractable pain consistent with lawful prescribing, including, but
not limited to, Sections 725, 2241.5, and 2241.6 of this code and
Sections 11159.2 and 124961 of the Health and Safety Code, be
prosecuted for excessive prescribing and prompt review of the
applicability of these provisions shall be made in any complaint that
may implicate these provisions.
(4) Sexual misconduct with one or more patients during a course of
treatment or an examination.
(5) Practicing medicine while under the influence of drugs or
alcohol.
(b) The board may by regulation prioritize cases involving an
allegation of conduct that is not described in subdivision (a). Those
cases prioritized by regulation shall not be assigned a priority
equal to or higher than the priorities established in subdivision
(a).
(c) The Medical Board of California shall indicate in its annual
report mandated by Section 2312 the number of temporary restraining
orders, interim suspension orders, and disciplinary actions that are
taken in each priority category specified in subdivisions (a) and
(b).
SEC. 3. Section 2242 of the Business and Professions Code is
amended to read:
2242. (a) Prescribing, dispensing, or furnishing dangerous drugs
as defined in Section 4022 without an appropriate prior examination
and a medical indication, constitutes unprofessional conduct.
Prescribing or recommending marijuana to a patient for a medical
purpose without an appropriate prior examination and a medical
indication constitutes unprofessional conduct.
(b) No licensee shall be found to have committed unprofessional
conduct within the meaning of this section if, at the time the drugs
were prescribed, dispensed, or furnished, any of the following
applies:
(1) The licensee was a designated physician and surgeon or
podiatrist serving in the absence of the patient's physician and
surgeon or podiatrist, as the case may be, and if the drugs were
prescribed, dispensed, or furnished only as necessary to maintain the
patient until the return of his or her practitioner, but in any case
no longer than 72 hours.
(2) The licensee transmitted the order for the drugs to a
registered nurse or to a licensed vocational nurse in an inpatient
facility, and if both of the following conditions exist:
(A) The practitioner had consulted with the registered nurse or
licensed vocational nurse who had reviewed the patient's records.
(B) The practitioner was designated as the practitioner to serve
in the absence of the patient's physician and surgeon or podiatrist,
as the case may be.
(3) The licensee was a designated practitioner serving in the
absence of the patient's physician and surgeon or podiatrist, as the
case may be, and was in possession of or had utilized the patient's
records and ordered the renewal of a medically indicated prescription
for an amount not exceeding the original prescription in strength or
amount or for more than one refill.
(4) The licensee was acting in accordance with Section 120582 of
the Health and Safety Code.
SEC. 4. Section 2264 of the Business and Professions Code is
amended to read:
2264. The employing, directly or indirectly, the aiding, or the
abetting of any unlicensed person or any suspended, revoked, or
unlicensed practitioner to engage in the practice of medicine or any
other mode of treating the sick or afflicted which requires a license
to practice constitutes unprofessional conduct. Employment by, or
other agreement with, a mandatory commercial licensee acting pursuant
to the Medical Cannabis Regulation and Control Act or a dispensary
to provide recommendations for medical marijuana constitutes
unprofessional conduct.
SEC. 5. Chapter 18 (commencing with Section 26000) is added to
Division 9 of the Business and Professions Code, to read:
CHAPTER 18. MEDICAL CANNABIS REGULATION AND CONTROL
Article 1. General Provisions
26000. (a) This chapter shall be known, and may be cited, as the
Medical Cannabis Regulation and Control Act.
(b) It is the intent of the Legislature in enacting this chapter
to provide for the statewide regulation of the commercial cannabis
activity and the enforcement of laws relating to commercial cannabis
activities without preempting city or county ordinances regulating or
banning these activities. This chapter is an exercise of the police
powers of the state for the protection of the safety, welfare,
health, peace, and morals of the people of the state.
26001. Without limiting the authority of a city or county
pursuant to Section 7 of Article XI of the California Constitution,
or any other provision of law, and subject to that authority, the
state shall have the exclusive primary
right and power to regulate and license persons for the cultivation,
manufacture, transportation, sale, and other related activities
regarding medical cannabis within the state. In the exercise of these
rights and powers, the state and each of its agencies are hereby
deemed not to be engaged in activities requiring licensure under this
chapter.
26002. For the purpose of this chapter:
(a) "Regulatory authority" means the Division of Medical Cannabis
Regulation and Enforcement within the Department of Alcoholic
Beverage Control, the Division of Medical Cannabis Manufacturing and
Testing within the State Department of Public Health, or the Division
of Medical Cannabis Cultivation within the Department of Food and
Agriculture, as appropriate to the context.
(b) "Regulatory director" means the Director of the Department of
Alcoholic Beverage Control, the Director of Consumer
Affairs, the Director of the Department of Public Health,
or the Director of the Department of Food and Agriculture.
(c) "Division" means the Division of Medical Cannabis Regulation
and Enforcement within the Department of Alcoholic Beverage Control,
unless otherwise specified.
(d) "Cannabis" means all parts of the plant Cannabis
sativa, sativa L., cannabis indica,
or cannabis ruderalis, whether growing or not; the seeds thereof; the
resin, whether crude or purified, extracted from any part of the
plant; and every compound, manufacture, salt, derivative, mixture, or
preparation of the plant, its seeds, or resin. It does not include
the mature stalks of the plant, fiber produced from the stalks, oil
or cake made from the seeds of the plant, any other compound,
manufacture, salt, derivative, mixture, or preparation of the mature
stalks (except the resin extracted therefrom), fiber, oil, or cake,
or the sterilized seed of the plant which is incapable of
germination. "Cannabis" also means marijuana as defined by Section
11018 of the Health and Safety Code as enacted by Chapter 1407 of the
Statutes of 1972.
(e) "Commercial cannabis activity" means any cultivation,
possession, manufacture, processing, storing, laboratory testing,
labeling, transporting, distribution, or sale of cannabis or cannabis
product, except as set forth in subdivision (b) of Section 26052.
(f) "Medical cannabis product," "medical marijuana product," or
"cannabis product" means any product containing cannabis, including,
but not limited to, concentrates and extractions intended to be sold
for use by medical marijuana patients in California pursuant to the
Compassionate Use Act of 1996 (Proposition 215).
(g) "Manufactured cannabis" means raw marijuana that has undergone
a process whereby the raw agricultural product has been transformed
into a concentrate, an edible product, or a topical product.
(h) "Cannabis concentrate" means manufactured cannabis that has
undergone a process to concentrate the tetrahydrocannabinol active
ingredient, thereby increasing the product's potency.
(i) "Cannabinoid" means a chemical compound that is unique to and
derived from cannabis, also known as phytocannabinoid.
(j) "Edible cannabis product" means manufactured cannabis that is
intended to be used, in whole or in part, for human consumption,
including, but not limited to, chewing gum.
(k) "Topical cannabis" means manufactured product intended for
external use.
(l) "Identification program" means the universal identification
certificate program for licensees.
(m) "Mandatory commercial license" or "license" means a mandatory
commercial license issued pursuant to Article 3 (commencing with
Section 26040).
(n) "Licensee" means any person licensed under this chapter to
engage in commercial cannabis activity related to medical cannabis or
medical cannabis products as set forth in this chapter.
(o) "Dispensary" means a retail location that distributes cannabis
or medical cannabis products and is owned and operated by a licensee
for these activities pursuant to this chapter.
(p) "Testing and labeling" means a labeling and quality assurance
plan that addresses all of the following:
(1) Potency.
(2) Chemical residue.
(3) Microbiological contaminants.
(4) Handling, care, and storage.
(5) Date and location of cultivation, processing, and
manufacturing.
(q) "Fund" means the Medical Cannabis Control Fund established
pursuant to Section 26028.
(r) "Person" means any individual, firm, partnership, joint
venture, association, corporation, limited liability company, estate,
trust, business trust, receiver, syndicate, or any other group or
combination acting as a unit and includes the plural as well as the
singular number.
(s) "Cultivation site" means a location that grows cannabis or
medical cannabis products and is owned and operated by a licensee for
these activities pursuant to this chapter, including a nursery.
(t) "Nursery" means a licensee that produces only clones, immature
plants, seeds, and other agricultural products used specifically for
the planting, propagation, and cultivation of medical cannabis.
(u) "Cultivation" means any activity involving the planting,
growing, harvesting, drying, processing, or trimming of cannabis.
(v) "Dispensing" means any activity involving the retail sale of
medical cannabis or medical cannabis products.
26010. This chapter does not, nor does Article 2 (commencing with
Section 11357) and Article 2.5 (commencing with Section 11362.7) of
Chapter 6 of Division 10 of the Health and Safety Code, prevent a
city or county from doing any of the following:
(a) Adopting local ordinances inconsistent with this chapter that
do the following:
(1) Regulate the location, operation, or establishment of a
licensee or any person that cultivates, processes, possesses, stores,
manufactures, tests, transports, distributes, or sells medical
cannabis.
(2) Prohibit commercial cannabis activity within their
jurisdiction.
(b) The administrative, civil, or criminal enforcement of the
ordinances described in subdivision (a).
(c) Establishing a fee or tax for the operation of a licensee
within its jurisdiction.
(d) Enacting and enforcing other laws or ordinances pursuant to
the authority granted by Section 7 of Article XI of the California
Constitution.
Article 2. Administration
26020. (a) The Division of Medical Cannabis Regulation and
Enforcement is hereby established within the Department of Alcoholic
Beverage Control. The Division of Medical Cannabis Regulation and
Enforcement shall do all of the following:
(1) Be administered by a person who is appointed by the Director
of the Department of Alcholic Alcoholic
Beverage Control.
(2) Administer this chapter, as it pertains to commercial cannabis
activity relating to dispensaries.
(3) Lead all state and local authorities regarding the tracking of
medical cannabis, medical cannabis products, and licensees pursuant
to this chapter.
(b) The Division of Medical Cannabis Manufacturing and Testing is
hereby established within the Department of Public Health. The
Division of Medical Cannabis Manufacturing and Testing shall do all
the following:
(1) Be administered by a person who is appointed by the State
Health Officer.
(2) Administer this chapter, as it pertains to manufacturing,
testing, and certification of testing laboratories for medical
cannabis. cannabis and medical cannabis
products.
(c) The Division of Medical Cannabis Cultivation is hereby
established within the Department of Food and Agriculture. The
Division of Medical Cannabis Cultivation shall do all of the
following:
(1) Be administered by a person who is appointed by the Secretary
of the Department of Food and Agriculture.
(2) Administer this chapter as it pertains to cultivation of
medical cannabis.
(d) The regulatory authorities shall issue licenses to applicants
to engage in commercial cannabis activity pursuant to this chapter.
No person shall engage in commercial cannabis activity unless the
person obtains permission pursuant to section 26045.
(e) The division shall maintain a registry of all permit holders
and shall maintain a record of all licenses and commercial cannabis
activity of the permit holder throughout the length of licensure and
for a minimum of seven years following the expiration of each
license. The division shall make limited licensee information
available to a licensee so that it may verify whether it is engaging
in commercial cannabis activities with a properly licensed entity.
(f) Each regulatory authority shall adopt regulations as needed to
implement that licensing program as set forth in Article 3
(commencing with Section 26040) within one year following the
establishment of provisional licenses, pursuant to Section 26054. The
regulations shall not limit the authority of a city or a county
pursuant to Section 7 of Article XI of the California Constitution,
Section 26010 or 26060, or any other law. The regulations shall, in
addition, do all of the following:
(1) Establish a scale of application, licensing, and renewal fees,
based upon the cost of enforcing this chapter, as follows:
(A) Each regulatory authority shall charge each applicant for
licensure or renewal an application or renewal fee that shall be
calculated to cover the costs of processing the application or
renewal. This fee may vary depending upon the varying costs
associated with approving the application or renewal related to the
varying activities covered by the license, but shall not exceed
___dollars ($____) for an initial application, and
____dollars ($____) for a renewal application. the
reasonable regulatory costs to the regulatory authority.
(B) Each regulatory authority shall charge each licensee a
licensure fee upon the issuance of a license. The licensure fee shall
be calculated to cover the costs of administering this chapter,
other than the costs of processing applications. The licensure fee
may vary depending upon the varying costs associated with
administering the various regulatory requirements of this chapter as
they relate to the nature and scope of the different licensure
activities, but shall not be less than ____ dollars ($____),
nor more than ____ dollars ($____). exceed the
reasonable regulatory costs to the regulatory authority.
(C) The total fees assessed pursuant to this chapter, including,
but not limited to, provisional license fees set forth in Section
26054, shall be set at an amount that will fairly and proportionately
generate sufficient total revenue to fully cover the total costs of
administering this chapter, including, but not limited to, costs set
forth in Section 26023.
(2) Establish procedures for approval or denial of applications
for licensure for each and every aspect of commercial cannabis
activity, including, but not limited to, cultivation, possession,
manufacture, processing, storing, laboratory testing, labeling,
transporting, distribution, and sale of cannabis.
(3) Establish applicant qualifications.
(4) Establish licensee employee qualifications, including, but not
limited to, training and screening requirements.
(5) Establish licensee security requirements, including, but not
limited to, procedures to limit access to facilities and to prevent
diversion of product to nonmedical use.
(6) Establish procedures and protocols for identifying, managing,
and disposing of contaminated, adulterated, deteriorated, or excess
product.
(7) Establish advertising, marketing, signage, and labeling
requirements and restrictions.
(8) Establish procedures for the suspension, revocation, or
surrender of a license and establishing related fines and penalties
to be assessed against licensees for violations of this chapter.
(9) Establish procedures for the oversight of the fund established
pursuant to Section 26028.
26021. The Division of Medical Cannabis Cultivation shall do all
of the following:
(a) Adopt regulations, in consultation with the
Department of Water Resources, State Water Resources
Control Board, to ensure that commercial cannabis activity
licensed pursuant to this chapter does not threaten the state's clean
water and environment.
(b) Adopt regulations ensuring that the cultivation of cannabis
under this chapter is in compliance with standards equivalent to the
statutory and regulatory requirements applicable to the production of
a food crop, including, but not limited to, all of the following:
(1) Regulations regarding the verification of cannabis stock for
the purposes of cultivation.
(2) Cultivation protocols ensuring the quality, availability, and
safety of the cannabis crop, including both indoor and outdoor
cultivation standards and regulations regarding carbon offsets for
indoor cultivation.
(3) Environmentally sound agricultural practices, including all of
the following:
(A) A requirement that any actual, or potential for, environmental
damage be addressed by the relevant state agency, including, but not
limited to, the State Board of Forestry and Fire Protection, the
Department of Fish and Wildlife, California regional water quality
control boards, the Department of the California Highway Patrol, or
the Department of Justice.
(B) A provision authorizing revocation of a licensee if the state
determines that the conduct of the licensee threatens to inflict or
has inflicted significant damage to the environment.
(C) Standards controlling the application of pesticides. These
standards shall, at a minimum, require that if pesticides are to be
used, the use comply with standards equivalent to Division 6
(commencing with Section 11401) of the Food and Agricultural Code and
its implementing regulations.
(c) Adopt regulations to establish cultivation labeling and
packaging standards and requirements, including, but not limited to,
cultivation labeling requirements requiring labeling to include, at a
minimum, cannabinoid levels, cannabinoid profile, and active
ingredients.
(d) In consultation with the State Department of Public Health,
establish testing standards for medical cannabis.
(e) Ensure cultivation licenses have access to existing
agricultural incentive and support programs.
(f) Establish weighing or measuring standards, including, but not
limited to, the requirement that devices used in connection with the
sale or distribution of cannabis meet standards equivalent to
Division 5 (commencing with Section 12001).
(g) Establish standards controlling the application of pesticides.
These standards shall, at a minimum, require that if pesticides are
to be used, the use comply with standards equivalent to Division 6
(commencing with Section 11401) of the Food and Agricultural Code and
its implementing regulations.
26021.5. (a) State agencies shall collaborate with local
agencies, and local agencies, within the scope of their jurisdiction,
and to the extent that resources are available, shall assist state
agencies in the enforcement of this chapter. This section shall not
limit any other state or local requirements.
(b) No cannabis shall be cultivated on public lands pursuant to
this chapter.
26022. The Division of Medical Cannabis Manufacturing and
Testing, in consultation with the State Department of Public
Health, Testing shall adopt regulations to do
all of the following:
(a) Establish product labeling and packaging standards and
requirements, including, but shall not be limited to, all of the
following:
(1) All manufactured cannabis product labeling and packaging
standards, including, but not limited to, all of the following:
(A) A requirement that the label include the manufacturing date,
the name of the mandatory commercial licensee from which it was
obtained, the active ingredients, net weight, cannabinoid profile,
nutritional facts, dosage in total milligrams of
cannabinoids delivered, and any potential
allergens. allergens, and the amount in milligrams of
cannabinoids per serving, servings per package, and the amount in
milligrams of cannabinoids in the total package.
(B) A requirement that the label include the warnings: "KEEP OUT
OF REACH OF CHILDREN AND ANIMALS," and "FOR MEDICAL USE ONLY."
(C) A requirement that packaging contain a clear indication in
bold font that the package contains medical cannabis, and that the
package not be designed in a manner that attracts minors.
(D) Standards for labeling food that clearly distinguish edible
cannabis products from non-cannabis products.
(E) The name of the mandatory commercial licensee that
manufactured the product.
(b) Establish consumer protection, food and product safety
requirements, including, but not limited to, all of the following:
(1) Adverse event reporting and product recall systems that
include batch, lot, or control number tracking, the requirement that
employees who manufacture or otherwise handle edible medical cannabis
products thoroughly wash their hands before commencing production
and before handling finished edible medical cannabis products.
(2) Standards for cannabinoid dosage the
amount, in milligrams, of cannabinoids per serving in edible
products.
(3) Sanitation standards equivalent to the California Retail Food
Code (Part 7 (commencing with Section 113700) of Division 104 of the
Health and Safety Code) for food preparation, storage, handling, and
sale of medical cannabis products. For purposes of this chapter,
edible medical cannabis products are deemed to be
unadulterated food products.
(4) A requirement that edible medical cannabis products be limited
to foods that are not potentially hazardous food as set forth in
Section 114365.5 of the Health and Safety Code.
(5) A requirement that facilities in which edible medical cannabis
products are prepared shall be constructed in accordance with
building standards and health and safety standards applicable to a
food production facility, including the requirement that edible
products distributed or sold by dispensaries not be produced or
stored in private homes.
(6) Weighing or measuring standards, including, but not limited
to, the requirement that devices used in connection with the sale or
distribution of cannabis meet standards equivalent to Division 5
(commencing with Section 12001) of the Business and Professions Code.
(7)
(5) Standards controlling the application of
pesticides. These standards shall, at a minimum, require that if
pesticides are to be used, the use comply with standards equivalent
to Division 6 (commencing with Section 11401) of the Food and
Agricultural Code and its implementing regulations.
(8)
(6) A requirement that all edible medical cannabis
products shall be individually wrapped at the original point of
preparation.
(c) Establish testing requirements for all medical cannabis and
medical cannabis products, including edible cannabis products and
those used, or intended for use, via inhalation, including, but not
limited to:
(1) Testing for the active cannabinoid-profile, constituent
elements, and microbiological, bacterial, pathogenic yeast, and mold
counts.
(2) Testing standards by which to test and measure the potency of
medical cannabis and medical cannabis products. The division
Division of Medical Cannabis Manufacturing and
Testing shall also determine maximum standards in the potency
of medical cannabis and medical cannabis products.
(3) Testing standards by which to test and measure the quality of
the medical cannabis and medical cannabis product.
(4) Protocols for medical cannabis and medical cannabis product
safety testing.
(d) Establish procedures for certifying laboratories for the
testing of medical cannabis and medical cannabis products, as defined
in this chapter. 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, including, but not limited to, ISO/IEC 17020
and 17025.
(e) Ensure licensed cannabis cultivation entities have access to
existing agricultural incentive and support programs.
26022.5. The regulations shall not limit the authority of a city
or a county pursuant to Section 7 of Article XI of the California
Constitution, Section 26010 or 26060, or any other law.
26023. The regulations shall set forth the inspection and
enforcement responsibilities of the Department of Alcohol and
Beverage Control, the State Department of Public Health, the Division
of Labor Standards Enforcement, the Department of Water
Resources, State Water Resources Control Board,
the State Department of Public Health, and the Department of Food and
Agriculture associated with this chapter.
26023.5. (a) Without limiting the authority of a city or a county
pursuant to Section 7 of Article XI of the California Constitution
or any other law, the Division of Medical Cannabis Regulation and
Enforcement shall adopt regulations regarding the minimum standards
for the operation of dispensaries. The regulations shall establish
all of the following:
(1) A requirement that dispensaries provide patients with detailed
written information about the contents of the cannabis and medical
cannabis products they obtain.
(2) Requirements for inventory control and reporting that require
all dispensaries to be able to demonstrate the present location,
amounts, and descriptions of all medical cannabis products from the
time of delivery to the dispensary until purchase by a qualified
patient or primary caregiver.
(3) Minimum educational and testing requirements for licensee
staff, including, but not limited to, background checks and a
requirement that every dispensary maintain dedicated, licensed
security staff both inside and outside the dispensary.
as deemed appropriate by the division.
(4) Minimum standards governing signage and advertising for
dispensaries.
(b) Commencing 180 days after the division begins issuing
provisional licenses, a dispensary shall provide patients medical
cannabis and medical cannabis products obtained only from persons
licensed under this chapter.
(c) Out-of-state medical cannabis patients with current, valid
verification that they are allowed to receive medical cannabis
treatment within their home state may receive medical cannabis
treatment, including the ability to purchase medical cannabis from
licensed dispensaries within this state upon verification of the
documents by the dispensary, pursuant to protocols established by the
division.
26024. The regulatory authorities may assist state taxation
authorities in the development of uniform policies for the state
taxation of mandatory commercial licensees.
26028. (a) The Medical Cannabis Control Fund is hereby
established within the State Treasury. Notwithstanding Section
16305.7 of the Government Code, the fund shall include any interest
and dividends earned on the moneys in the fund.
(b) All fees collected pursuant to this chapter shall be deposited
into the fees account, which is hereby established within the fund.
Notwithstanding Section 13340 of the Government Code, all moneys
within the fees account are hereby continuously appropriated, without
regard to fiscal year, to the Division of Medical Cannabis
Regulation and Enforcement appropriate regulatory
authority solely for the purposes of fully funding and
administering this chapter, including, but not limited to, the costs
incurred by the division regulatory authority
for its administrative expenses and costs and the costs of
all regulatory authorization regulation
as set forth in Section 26023.
(c) All moneys collected pursuant to this chapter as a result of
fines or penalties imposed under this chapter shall be deposited
directly into the fines and penalties account, which is hereby
established within the fund, and shall be available, upon
appropriation by the Legislature, for the purposes of funding the
enforcement grant program pursuant to subdivision (d).
(d) The regulatory authorities shall collaboratively establish and
administer a grant program to allocate moneys from the fines and
penalties account to state and local entities for the purpose of
assisting with medical cannabis regulation and the enforcement of
this chapter and other state and local laws applicable to licensees.
The costs of the grant program under this subdivision shall, upon
appropriation by the Legislature, be paid for with moneys in the
fines and penalties account.
(e) The Department of Transportation shall conduct research
regarding determining whether a driver is operating a vehicle under
the influence of cannabis, and shall develop protocols setting forth
best practices to assist law enforcement agencies. The costs of the
Department of Transportation under this subdivision shall, upon
appropriation by the Legislature, be paid for with moneys in the
fines and penalties account.
(f) The total fees charged pursuant to this chapter shall be
sufficient to pay the costs associated with the administrative and
enforcement duties of the division and of the associated state
agencies in administering this chapter.
(g) The regulatory authorities shall enter into an interagency
agreement with the Department of Alcohol and Beverage Control,
the Department of Consumer Affairs, the Division
of Labor Standards Enforcement, the Department of Water Resources,
the State Department of Public Health, and the Department of Food and
Agriculture setting forth the duties of those agencies under this
chapter and providing for reimbursement to the appropriate state and
local authorities of associated costs from revenues deposited into
the fees account of the fund.
26030. (a) The regulatory directors and the persons employed by
the regulatory authorities for the administration and enforcement of
this chapter are peace officers in the enforcement of the penal
provisions of this chapter, the rules of the division adopted under
this chapter, and any other penal provisions of law of this state
prohibiting or regulating the cultivation, processing, storing,
manufacturing, testing, transporting, or selling of medical cannabis,
and these persons are authorized, while acting as peace officers, to
enforce any penal provisions of state law while in the course of
their employment.
(b) The regulatory directors, the persons employed by the
regulatory authorities for the administration and enforcement of this
chapter, peace officers listed in Section 830.1 of the Penal Code,
and those officers listed in Section 830.6 of the Penal Code while
acting in the course and scope of their employment as peace officers
may, in enforcing this chapter, visit and inspect the premises of any
licensee at any time during which the licensee is acting pursuant to
the mandatory commercial license.
(c) Peace officers of the Department of the California Highway
Patrol, members of the University of California and California State
University police departments, and peace officers of the Department
of Parks and Recreation, as defined in subdivisions (a), (b), (c),
and (f) of Section 830.2 of the Penal Code, may, in enforcing this
chapter, visit and inspect the premises of any licensee at any time
during which the licensee is acting pursuant to the license.
26034. (a) Information identifying the names of patients, their
medical conditions, or the names of their primary caregivers received
and contained in records kept by the regulatory 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 or county to perform official duties
pursuant to this chapter, or a local ordinance adopted in accordance
with Section 26010.
(b) Nothing in this section precludes the following:
(1) Employees of any of the regulatory authorities notifying state
or local agencies about information submitted to the
division regulatory authority that the employee
suspects is falsified or fraudulent.
(2) Notifications from any of the regulatory authorities to state
or local agencies about apparent violations of this chapter or any
applicable local ordinance.
(3) Verification of requests by state or local agencies to confirm
licenses and certificates issued by the regulatory authorities or
other state agency.
(4) Provision of information requested pursuant to a court order
or subpoena issued by a court or an administrative agency or local
governing body authorized by law to issue subpoenas.
(c) Information shall not be disclosed by any state or local
agency beyond what is necessary to achieve the goals of a specific
investigation, a notification, or the parameters of a specific court
order or subpoena.
26035. This chapter does not require an employer to permit or
accommodate the use, consumption, possession, transfer, display,
transportation, sale, or growth of cannabis in the workplace or to
affect the ability of employers to have policies restricting the use
of cannabis by employees.
Article 3. Mandatory Commercial License
26040. (a) The regulatory authorities shall adopt regulations
establishing a tiered licensing scheme to accommodate the different
levels and types of activity to be licensed, as follows:
(1) The Division of Medical Cannabis Cultivation shall adopt
regulations for a tiered licensing structure for the cultivation of
medical cannabis.
(2) The Division of Medical Cannabis Manufacturing and Testing
shall adopt regulations, in consultation with the Department
of Consumer Affairs, regulations for the tiered
licensing structure of the following:
(A) Manufacturing of medical cannabis products.
(B) Testing of medical cannabis products.
(C) Certification of medical cannabis testing laboratories.
(3) The Division of Medical Cannabis Regulation and Enforcement
shall adopt regulations for the tiered licensing structure for all
the following:
(A) Wholesale of medical cannabis products, which shall include
large-scale storage and distribution, as defined by the regulatory
authority.
(B) Dispensing of medical cannabis products.
(b) The regulations shall set forth the application and licensure
process, including, but not limited to, all of the following:
(1) A description of the various specific forms of commercial
cannabis activity to be authorized by the various types of licenses.
(2) The establishment of license application, issuance, renewal,
suspension, surrender, and revocation procedures for the various
types of licenses to be issued.
(3) The procedures for the issuance, renewal, suspension, and
revocation of mandatory commercial licenses.
(4) Time periods, not to exceed 90 days, by which the division
shall approve or deny an application for mandatory commercial
licensure. The failure of the division
regulatory authority to act upon an application for licensure
within the time prescribed shall not be deemed approval of the
application.
(5) Qualifications for licensees.
(6) Security requirements, including, but not limited to,
procedures for limiting access to facilities and for the screening of
employees.
(c) Each mandatory commercial license application approved by the
respective licensing authority pursuant to this chapter is separate
and distinct.
(d) A mandatory commercial license application approved by the
respective licensing authority pursuant to this chapter shall be
valid for a period not to exceed one year from the date of approval
unless revoked or suspended earlier than that date pursuant to this
chapter or the rules or regulations adopted pursuant to this
chapter chapter.
(e) Each regulatory authority may adopt regulations for additional
licenses for any cannabis activity within its statutory jurisdiction
pursuant to this chapter, as deemed necessary.
(f) Each mandatory commercial license application approved by the
respective regulatory authority shall be reported to the Division of
Medical Cannabis Regulation and Enforcement within 24 hours of its
approval.
26041. Regulations adopted by the regulatory authorities shall
require, at a minimum, all of the following, as applicable:
(a) The Division of Medical Cannabis Cultivation shall adopt
regulations on the for
cultivation of medical cannabis shall that
do all of the following:
(1) Require that the cultivation licensee comply with all
regulations of the Department of Food and Agriculture pursuant to
this chapter regarding the cultivation of medical cannabis.
(2) Require that the cultivation licensee comply with any other
applicable requirement of the division pursuant to
this chapter.
(3) Establish criteria for different tiers of cultivation
licenses, including, but not limited to small, mid-sized, and large
commercial cultivation licenses, based on the area, in square feet,
in cannabis cultivation.
(4) Authorize commercial cultivation licensees to transport and
deliver medical cannabis for commercial purposes to only another
licensee of commercial cannabis activity pursuant to this chapter.
Cultivation licensees, without a separate dispensary license, who
deliver directly to any entity not licensed pursuant to this chapter
shall be fined and be under review for the revocation of licensure by
the Division of Medical Cannabis Cultivation.
(5) Require licensees to track all cannabis products and report to
the division, as specified by this chapter and any regulations
promulgated pursuant to this chapter.
(6) Require a cultivation licensee to obtain a seller's permit
from the Board of Equalization to validate the authority of the
licensee to sell commercial cannabis products to another licensee of
commercial cannabis activity.
(7) Require a cultivation licensee to obtain a resale certificate
upon the sale of cannabis to another licensee of commercial cannabis
activity, to track the quantities exchanged.
(8) Require all medical cannabis to be tested by a laboratory that
has been certified and licensed pursuant to this chapter, prior to
commercial exchange with a dispensary. If the licensee has a separate
dispensary license, all medical cannabis and medical cannabis
products must be tested by a laboratory that has been certified and
licensed pursuant to this chapter, prior to retail directly to
consumers.
(9) Ensure licensed cannabis cultivation entities
cultivation licensees have access to existing
agricultural incentive and support programs.
(b) The Division of Medical Cannabis Manufacturing and
Testing shall adopt regulations on the
for testing of medical cannabis shall
that do all of the following:
(1) Prohibit a testing licensee from receiving medical cannabis
products except through a regulatory authority or a medical cannabis
licensee.
(2) Prohibit a testing licensee from being licensed for any other
activity authorized under this article, and from holding an ownership
interest in any real property, personal property, or other assets
associated or used in any other license category.
(3) Require the licensee to follow any other applicable
requirement of the division pursuant to this chapter.
(c) Regulations on the manufacturing of medical cannabis shall do
all of the following:
(1) Require the manufacturing licensee comply with all regulations
of the State Department of Public Health pursuant to this chapter
regarding the cultivation manufacturing and
testing of medical cannabis.
(2) Require the manufacturing licensee comply with any other
applicable requirement of the Division of Medical Cannabis
Regulation and Enforcement pursuant to this chapter.
(3) Establish criteria for different tiers of manufacturing
licenses, including, but not limited to small, mid-sized, and large
commercial manufacturing licenses.
(4) Authorize commercial manufacturing licensees to transport and
deliver medical cannabis for commercial purposes to only another
licensee of commercial cannabis activity pursuant to this chapter.
Manufacturing licensees, without a separate dispensary license, who
deliver directly to any entity not licensed pursuant to this chapter
shall be fined and be under review for the revocation of licensure by
the Division of Medical Cannabis Manufacturing and Testing.
(5) Require licensees to track all cannabis products and report to
the Division of Medical Cannabis Regulation and Enforcement, as
specified by this chapter and any regulations promulgated pursuant to
this chapter.
(6) Require a manufacturing licensee to obtain a seller's permit
from the Board of Equalization to validate the authority of the
licensee to sell commercial manufactured cannabis products to another
licensee of commercial cannabis activity.
(7) Require a manufacturing licensee to obtain a resale
certificate upon the sale of manufactured medical cannabis products
to another licensee of commercial cannabis activity, to track the
quantities exchanged.
(8) Require all manufactured medical cannabis and medical cannabis
products to be tested by a laboratory that has been certified and
licensed pursuant to this chapter, prior to commercial exchange with
a dispensary. If the licensee has a separate dispensary license, all
manufactured cannabis and medical cannabis products shall be tested
by a laboratory that has been certified and licensed pursuant to this
chapter, prior to retail sale directly to consumers.
(d) Regulations The division shall adopt
regulations for the dispensing of medical cannabis
shall that do all of the following:
(1) Require the dispensary licensee comply with all regulations of
the division pursuant to this chapter regarding the dispensing of
medical cannabis
(2) Require the dispensary licensee comply with any other
applicable requirements of the division pursuant
to this chapter.
(3) Allow dispensary licensees to store limited quantities of
medical cannabis and medical cannabis products for commercial
purposes pursuant to this chapter, in a manner deemed safe and secure
by the regulatory authority.
(4) Allow all non-mobile, non-vehicular, and non-Internet-based
dispensaries to be licensed to transport medical cannabis and medical
cannabis products directly to consumers.
(5) Require all mobile, vehicular and Internet-based dispensaries
to maintain a business contract with a non-vehicular and non-mobile
dispensary, and report all records of commercial activity to said
entity.
(6) Require licensees to track all medical cannabis and medical
cannabis products and report to the division, as specified by this
chapter and any regulations promulgated pursuant to this chapter.
(7) Require all dispensary licensees to obtain a seller's permit
from the Board of Equalization to validate the authority of the
licensee to sell medical cannabis and medical cannabis products, and
to maintain receipts of all sales transactions.
(8) Require that, upon receipt of medical cannabis, manufactured
medical cannabis, and medical cannabis products, the dispensary
licensee shall request and record evidence that the product has been
tested by a laboratory that has been certified and licensed pursuant
to this chapter.
(e) Regulations for the wholesale of medical cannabis or
medical cannabis products shall do all of the following:
(1) Require all wholesale licensees to comply with all regulations
of the division pursuant to this chapter regarding the wholesale
storage and distribution of medical cannabis.
(2) Require the dispensary wholesale
licensee comply with any other applicable requirements of the
division pursuant to this chapter.
(3) Establish criteria for the qualifications of a wholesale
licensee, including maximum quantities of medical cannabis that each
licensee may store at one time.
(4) Authorize all wholesale licensees to do commercial business
with only other licensees of commercial cannabis activity. All other
licensees under this chapter shall not be required to work only with
a wholesale licensee directly.
(5) Require that all medical cannabis and medical cannabis
products be tested by the wholesale licensee prior to
commercial exchange with a dispensary. a laboratory
that has been certified and licensed pursuant to this chapter prior
to commercial exchange with a dispensary. If the licensee has a
separate dispensary license, all medical cannabis and medical
cannabis products must be tested by a laboratory that has been
certified and licensed pursuant to this chapter, prior to retail
directly to consumers.
(6) Require licensees to track all medical cannabis and medical
cannabis products and report to the Division on Medical Cannabis
Regulation and Enforcement, as specified by this chapter and any
regulations promulgated pursuant to this chapter.
(f) All regulations related to transportation of cannabis shall
require a medical cannabis licensee to do all of the following:
(1) Maintain intrastate operating authority.
(2) Maintain interstate operating authority, for the commercial
purposes of the licensee, and only to the extent permitted by federal
law.
(3) Be allowed by local jurisdictions to transport medical
cannabis, if the licensee is in compliance with this chapter.
26042. Each regulatory authority shall establish a scale of
application, licensing, and renewal fees, based upon the cost of
enforcing this chapter, as follows:
(a) Each regulatory authority shall charge each applicant for
licensure or renewal an application or renewal fee that shall be
calculated to cover the costs of processing the application or
renewal. This fee may vary depending upon the varying costs
associated with approving the application or renewal related to the
varying activities covered by the license, but shall not exceed ____
dollars ($____) for an initial application, and ____dollars ($____)
for a renewal application.
(b) Upon the issuance of a license, the respective regulatory
authority shall charge each licensee a licensure fee. The licensure
fee shall be calculated to cover the costs of administering this
chapter, other than the costs of processing applications. The
licensure fee may vary depending upon the varying costs associated
with administering the various regulatory requirements of this
chapter as they relate to the nature and scope of the different
licensure activities, but shall not be less than ____ dollars
($____), nor more than ____ dollars ($____).
(c) Each regulatory authority shall establish appropriate fees as
part of its emergency regulations for the issuance of provisional
licenses adopted pursuant to Section 26043.
(d) The total fees assessed pursuant to this chapter, including,
but not limited to, provisional license fees set forth in Section
26054, shall be set at an amount that will fairly and proportionately
generate sufficient total revenue to fully cover the total costs of
administering this chapter, including, but not limited to, costs set
forth in Section 26023.
26042. Each regulatory authority shall establish appropriate fees
as part of its emergency regulations for the issuance of provisional
licenses adopted pursuant to Section 26043.
26043. Each regulatory authority shall adopt, as soon as
practicable, emergency regulations consistent with this chapter to
allow a qualified applicant for licensure to apply for and receive a
provisional license to engage in commercial cannabis activity so as
to ensure an adequate supply of medical cannabis upon full
implementation of this chapter as set forth in Section 26054.
26044. Every mandatory commercial license is renewable unless the
license has been revoked if the renewal application is submitted and
the fee for it is paid. A license that has been suspended, but not
revoked, may be renewed under this section, however, the act of
renewal shall not affect the suspension and the suspension shall
remain in effect upon renewal. All licenses expire at 12 midnight on
the last day of the month posted on the license. All licenses shall
be renewed as follows:
(a) The application to renew the license may be filed before the
license expires upon payment of the annual fee.
(b) For 60 days after the license expires, the license may be
renewed upon payment of the annual renewal fee plus a penalty fee
that shall be equal to 50
percent of the annual fee.
(c) Unless otherwise terminated, or unless renewed pursuant to
subdivision (a) or (b), a license that is in effect on the month
posted on the license continues in effect through 12 midnight of the
60th day following the month posted on the license, at which time it
is automatically canceled.
(d) A license that has been canceled pursuant to subdivision (c)
may be reinstated during the 30 days immediately following
cancellation upon payment by cashier's check or money order of the
annual renewal fee, plus a penalty fee that shall be equal to 100
percent of the annual fee. A license that has been canceled pursuant
to subdivision (c) and that has not been reinstated within 30 days
pursuant to this subdivision is automatically revoked on the 31st day
after the license has been canceled.
(e) A renewal application shall not be deemed filed within the
meaning of this section unless the document itself has been actually
delivered to, and the required renewal fee has been paid at, any
office of the division during office hours, or unless both the
document and fee have been filed and remitted pursuant to Section
11003 of the Government Code.
26045. A person shall may engage in
commercial cannabis activity only if the person has complied with
all of the following conditions:
(a) The person has obtained permission from local authorities
approving the proposed commercial cannabis activity. This requirement
shall not apply to a person who holds a valid business license,
conditional use permit, or other locally issued permit for commercial
cannabis activity. For the purposes of this subdivision, the
document granting the permission shall be issued by the local
authority and include, at a minimum, all of the following:
(1) The legal name, address and date of birth of the applicant.
(2) The type of license the applicant is requesting a permit for.
(3) Documentation that the applicant has been in compliance with
local ordinances and regulations, including, but not limited to, an
entity granted immunity under Measure D, approved by the voters of
the City of Los Angeles at the May 21, 2013, general election.
(4) A statement of whether or not the applicant has previously
committed a felony, as described in paragraph (8) of subdivision (e)
of Section 26047.
(5) A statement signed by the applicant under penalty of perjury
that the information provided in the application is true.
(b) The person submits a copy of the permission, or equivalent
qualifying documents, to the division for recordation. Upon receipt
of an approved permission, the division shall provide the applicant
with a certificate of approval for licensure, to be presented to the
relevant regulatory authority under which the person seeks licensure.
No regulatory authority shall grant approval of an application
without a certificate of approval for application of commercial
cannabis licensure for the applicant.
(c) The person applies for licensure for commercial cannabis
activity from a regulatory authority and receives approval for that
licensure.
(d) The person abides by all local and state ordinances and
regulations pursuant to this chapter.
26046. (a) An application for a license shall include, but shall
not be limited to, all of the following:
(1) A certificate of approval for licensure by the Division of
Medical Cannabis Regulation and Enforcement.
(2) The legal name and proposed physical addresses of the
mandatory commercial licensee.
(3) The name, address, and date of birth of each principal officer
and board member.
(4) Operating and inventory control procedures to ensure security
and prevent diversion.
(5) Detailed operating procedures for the proposed facility, which
shall include, but not be limited to, provisions for facility and
operational security, prevention of diversion, employee screening,
storage of medical cannabis, personnel policies, and recordkeeping
procedures.
(6) A list of all persons or entities having an ownership interest
other than a security interest, lien, or encumbrance on any property
that will be used by the applicant.
(7) Evidence of the legal right to occupy and use an established
location, including that if the proposed facility is a
cultivator or a dispensary, that the proposed facility is located
beyond at least a 600-foot radius from a school, or an immunity
from prosecution for that occupancy or use pursuant to a local
ordinance or ordinances, including, but not limited to, Measure D,
approved by the voters of the City of Los Angeles at the May 21,
2013, general election.
(8) Documentation that the applicant will be in compliance with
all local ordinances and regulations, including, but not limited to,
an entity granted immunity under Measure D, approved by the voters of
the City of Los Angeles at the May 21, 2013, general election.
(9) Evidence that all of the officers and owners of the applicant
organization have been residents of the State of California for at
least three years.
(10) For an applicant with 20 employees or more, 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 by the division in consultation with the Division of Labor
Standards Enforcement.
(11) For an applicant seeking a license to cultivate, a statement
declaring the applicant is an "agricultural employer," as defined in
the Alatorre-Zenovich-Dunlap-Berman Agricultural Labor Relations Act
of 1975 (Part 3.5 (commencing with Section 1140) of Division 2 of the
Labor Code), to the extent not prohibited by law.
(12) A statement signed by the applicant under penalty of perjury
that the information provided in the application is true.
(b) For applicants seeking a license to cultivate and
process, manufacture, the application shall also
include a detailed description of the operating procedures for all
of the following:
(1) Cultivation.
(2) Extraction and infusion methods.
(3) The transportation process.
(4) Inventory procedures.
(5) Quality control procedures.
26047. (a) Upon receipt of an application for licensure and the
applicable fee, the respective regulatory authority shall make a
thorough investigation to determine whether the applicant and the
premises for which a license is applied qualify for the license and
whether this chapter has been complied with, and shall investigate
all matters connected therewith that may affect the public welfare
and morals.
(b) The respective regulatory authority shall deny an application
if either the applicant or the premises for which a license is
applied do not qualify for licensure under this chapter.
(c) The respective regulatory authority may, at its discretion,
issue a license to an applicant who has obtained a certificate of
rehabilitation pursuant to Section 4852.13 of the Penal Code.
(d)
(c) The respective regulatory authority may place
reasonable conditions upon licensure if grounds exist for denial of
the license, and the division finds those grounds may be removed by
the imposition of those conditions. However, the limitations set
forth in paragraph (6) of subdivision (b) of Section 26040
(10) of subdivision (d) shall not be waived.
(e)
(d) The respective regulatory authority shall deny the
application for licensure or renewal renewal,
or suspend or revoke a license, if any of the following
conditions apply:
(1) Granting or continuation of a license would be contrary to the
public welfare or morals.
(2) The applicant holding or seeking a license has violated any
law prohibiting conduct involving moral turpitude.
(3) Local agencies have notified the division and provided
evidence that a licensee or applicant within its jurisdiction is in
violation of local ordinances relating to cannabis activities.
(4) The application has failed to state with sufficient
specificity the jurisdiction in which the applicant proposes to
establish operations.
(5) The applicant fails to meet the requirements of this chapter
or any regulation adopted pursuant to this chapter, or any applicable
city or county ordinance or regulation.
(6) The applicant, or any of its officers, directors, or owners,
is under 21 years of age.
(7) The applicant has knowingly answered a question or request for
information falsely on the application form or failed to provide
information requested.
(8) The applicant, or any of its officers, directors, or owners
has been convicted of a felony criminal conviction for drug
trafficking, a violent felony, as specified in subdivision (c) of
Section 667.5 of the Penal Code, a serious felony as specified in
subdivision (c) of Section 1192.7 of the Penal Code, a felony offense
involving fraud or deceit, or any other felony that, in the division'
s determination, would impair the applicant's ability to
appropriately operate as a mandatory commercial licensee. The
respective regulatory authority may, at its discretion, issue a
license to an applicant that has obtained a certificate of
rehabilitation pursuant to Section 4852.13 of the Penal Code.
(9) The applicant, or any of its officers, directors, or owners is
a licensed physician making patient recommendations for medical
cannabis.
(10) The applicant, or any of its officers, directors, or owners
has been sanctioned by the division, a
regulatory authority, a city, or a county for unlicensed
commercial medical cannabis activities or has had a license revoked
under this chapter in the previous three years.
(11) Applicants shall be notified of a denied application in
writing via personal service or mail addressed to the address of the
applicant or licensee set forth in the application. The denial letter
shall contain the detailed reasons for which the application has
been denied. The applicant shall have the right to appeal the denial
and be given a hearing within 30 days of the appeal. On appeal, the
decision shall be upheld unless the applicant demonstrates that the
applicant is in fact eligible for licensure and the application is in
compliance with this chapter.
26048. (a) The respective regulatory authority shall
electronically submit to the Department of Justice fingerprint images
and related information for all applicants for cultivation,
dispensing, manufacturing, and transportation licenses for the
purpose of obtaining information as to the existence and content of a
record of state or federal convictions and arrests, and information
regarding whether the person is free on bail, or on his or her own
recognizance, pending trial or appeal.
(b) The Department of Justice shall provide a response to the
division pursuant to paragraph (1) of subdivision (p) of Section
11105 of the Penal Code.
(c) The division shall request from the Department of Justice
subsequent notification service, as provided pursuant to Section
11105.2 of the Penal Code, for persons described in this section.
(d) The Department of Justice shall charge a fee sufficient to
cover the reasonable cost of processing the requests described in
this section.
26049. (a) The actions of a mandatory commercial licensee or
provisional licensee, its employees, and its agents, permitted
pursuant to a mandatory commercial license or provisional license
issued by the division or otherwise permitted by this chapter, that
are within the scope of the license issued pursuant to this chapter
and the regulations adopted pursuant to the authority granted by this
chapter, are not unlawful under state law 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 law.
(b) The actions of a person who, in good faith and upon
investigation, allows his or her property to be used by a mandatory
commercial licensee or provisional licensee, its employees, and its
agents, as permitted pursuant to a mandatory commercial license or
provisional license issued by the division or otherwise permitted by
this chapter, are not unlawful under state law and shall not be an
offense subject to arrest, prosecution, or other sanction under state
law, or be subject to a civil fine or be a basis for seizure or
forfeiture of assets under state law.
(c) Conduct that is within the scope of a license issued pursuant
to this chapter but not fully in compliance with this chapter shall
be subject to the enforcement provisions of this chapter and shall
not be subject to the penal provisions generally prohibiting
cannabis-related activity, unless and until the license is revoked.
(d) This section shall not be deemed to limit the authority or
remedies of a city or county under any provision of law, including,
without limitation, Section 7 of Article XI of the California
Constitution or Section 26010 or 26060.
26050. (a) A licensee shall keep, at the licensed premises,
accurate records of the specific commercial cannabis activity
conducted by the licensee. The records shall include, at a minimum,
all of the following for each batch of product:
(1) The name and address of the supplier.
(2) The dates on which the product was received.
(3) The amounts, form, and batch and lot number.
(4) The location of the cultivation site.
(5) The name of the employee who received the product.
(6) Records demonstrating compliance by the licensee with state
and federal rules and regulations regarding reporting and taxation of
income received.
(b) The records shall be kept for a minimum of seven years.
(c) The division may make any examination of the books and records
of any licensee and may visit and inspect the premises of any
licensee that the division may deem necessary to perform its duties
under this chapter.
(d) If the licensee or any employee of the licensee refuses,
impedes, obstructs, or interferes with an inspection pursuant to this
chapter or local ordinance, or if the licensee fails to maintain or
provide the books and records required by this section, the license
may be summarily suspended and the division shall directly commence
proceedings for the revocation of the license in accordance with this
chapter.
(e) All cultivation, dispensing, and retail sales licensees shall
be subject to an annual audit by the State Auditor
audit, as specified by the regulatory authority, in order
to ensure proper documentation is kept at each site or facility.
The reasonable costs of the audit shall be paid for by the
licensee.
26052. (a) This chapter shall not apply to, and shall have no
diminishing effect on, the rights and protections granted to a
patient or a primary caregiver pursuant to the Compassionate Use Act
of 1996.
(b) (1) A patient who cultivates, possesses, stores, manufactures,
or transports cannabis exclusively for his or her personal medical
use but who does not sell or distribute cannabis to any other person
is not, thereby, engaged in commercial cannabis activity and is,
therefore, exempt from the licensure requirements of this chapter.
(2) A primary caregiver who cultivates, possesses, stores,
manufactures, transports, donates, or provides cannabis exclusively
for the personal medical purposes of a specified qualified patient
for whom he or she is the primary caregiver within the meaning of
Section 11362.7 of the Health and Safety Code but who does not
receive remuneration for these activities except for compensation in
full compliance with subdivision (c) of Section 11362.765 of the
Health and Safety Code is not, thereby, engaged in commercial
cannabis activity and is, therefore, exempt from the licensure
requirements of this chapter.
26054. (a) Each regulatory authority shall, as soon as
practicable following January 1, 2016, allow a qualified applicant
for licensure to apply for and receive a provisional license to
engage in commercial cannabis activity so as to ensure an adequate
supply of medical cannabis upon full implementation of this chapter.
(b) Each regulatory authority shall establish appropriate fees not
to exceed ____ dollars ($____) the
reasonable regulatory costs to the regulatory authority for the
issuance of a provisional license under its jurisdiction pursuant to
this chapter.
(c) Each regulatory authority shall shall,
if the applicant meets all the requirements in this section,
issue a provisional license to individuals and entities that the
regulatory authority determines were, during the 3 months prior to
January 1, 2016, regularly cultivating, processing, manufacturing,
transporting, or distributing medical cannabis collectively or
cooperatively in full compliance with any applicable local ordinance,
to continue to do so until the licensee's application for mandatory
commercial licensure has been approved or denied under this chapter,
but no later than 90 days after the regulatory authority begins
accepting applications for regular mandatory commercial licenses. The
regulatory authority may consult with relevant local agencies in
making a determination on whether a provisional license applicant is
in compliance with any applicable ordinance.
(d) To qualify for a provisional mandatory commercial license,
applicants shall disclose to the appropriate regulatory authority all
of the following information in writing:
(1) The names, addresses, and dates of birth of each principal
officer, owner, or board member.
(2) The common street address and assessor's parcel number of the
property at which the licensee conducts any activity under the
authority of the licensee.
(3) The common street address and assessor's parcel number of the
property at which any cultivation activity was or is to be conducted.
(4) For the 3 months prior to January 1, 2016, the quantity of
cannabis cultivated, processed, manufactured, tested, transported, or
sold at a location and the quantity expected to be cultivated,
processed, manufactured, tested, transported, or sold from January 1,
2016, to July 1, 2016, inclusive. The licensee shall make its
records of current activity and activity for the 3 months prior to
January 1, 2016, available to the division upon request.
(e) Upon receipt of the application materials and fee, the
division may shall issue a provisional
license and send a proof of issuance to the applicant,
applicant that meets all the requirements of this
section, if the applicant has not committed any act or crime
constituting grounds for the denial of licensure.
(f) Notwithstanding any other provision of this section, the
division shall not issue a provisional license to an individual or
entity, or for a premises, against whom there are pending state or
local administrative or judicial proceedings or actions initiated by
a city, county, or city and county under any applicable local
ordinance or who has been determined through those proceedings to
have violated any local ordinance related to cannabis activity, or
that knowingly provides false or fraudulent information on an
application for licensure.
(g) Entities that are provided immunity under Measure D, approved
by the voters of the City of Los Angeles at the May 21, 2013, general
election, shall be considered the equivalent of entities that are
registered, permitted, or licensed as a medical marijuana business,
dispensary, or other entity involved in providing medical marijuana
to patients under a local ordinance and shall be considered in
compliance with a local ordinance for the purposes of the
implementation of this section.
(h) Provisional licensees shall comply with all standards and
requirements applicable to a licensee under this chapter, including,
but not limited to, the production, recordkeeping, security, and
transportation requirements and standards.
(i) Beginning July 1, 2017, all commercial cannabis activity shall
be conducted between licensees of commercial cannabis activity,
pursuant to this chapter. If the regulatory authorities have not
promulgated their respective regulations by that date, the regulatory
authorities shall provide an extension for all provisional licenses
for applicants abiding by the provisions of this chapter.
26055. The regulatory authority may adopt regulations to permit
the transfer of a license from a licensee to another person who
demonstrates to the regulatory authority that he or she is eligible
for licensure under this chapter, if the
prospective recipient of the license complies with all of the
requirements of this chapter relating to a new application for
licensure, including, but not limited to, payment to the regulatory
authority of a reasonable license transfer fee.
26057. Each regulatory authority shall make recommendations to
the Legislature pertaining to the establishment of an appeals and
judicial review process for persons aggrieved by a final decision of
the regulatory authority.
Article 4. Enforcement
26060. (a) Each regulatory authority shall work in conjunction
with law enforcement agencies for the purposes of implementing,
administering, and enforcing this chapter and the division's
any regulations ad opted
pursuant to this chapter and taking appropriate action against
licensees and others who fail to comply with this chapter or the
regulations adopted pursuant to this chapter.
(b) Nothing in this chapter or in Article 2 (commencing with
Section 11357) or Article 2.5 (commencing with Section 11362.7) of
Chapter 6 of Division 10 of the Health and Safety Code, shall prevent
a city, county, or city and county from adopting or enforcing a
zoning ordinance or other law, ordinance, or regulation that
regulates the location, operation, or establishment of a licensee or
other person that engages in commercial cannabis activity.
26062. Except for a person identified in Section 26052, a person
shall not exercise the privilege or perform any act that a licensee
may exercise or perform under the authority of a license unless the
person is acting pursuant to a license, including, but not limited
to, a provisional license issued pursuant to this chapter.
26064. Any person engaging in commercial cannabis activity and
operating an unlicensed facility, building, structure, vehicle,
mobile unit, or location in violation of this chapter shall be
subject to civil penalties of up to ____ dollars ($____)
twice the amount of the license fee for each
violation, and the division or court may order the destruction of any
cannabis associated with that violation. All civil fines collected
pursuant to this section shall be deposited into the fines and
penalties account established pursuant to Section 26028. If an action
for civil penalties is brought by the Attorney General, the penalty
collected shall be deposited into the General Fund pursuant to
Section 26028. If the action is brought by a district attorney or
county counsel, the penalty collected shall be paid to the treasurer
of the county in which the judgment was entered. If the action is
brought by a city attorney or city prosecutor, the penalty collected
shall be paid to the treasurer of the city in which the judgment was
entered.
26066. (a) Any regulatory director or any district attorney,
county counsel, city attorney, or city prosecutor may bring an action
in the name of the people of the State of California to enjoin a
violation or the threatened violation of any provision of this
chapter, including, but not limited to, a licensee's failure to
correct objectionable conditions following notice or as a result of
any rule promulgated pursuant to this chapter, and to assess and
recover civil penalties in accordance with this chapter. The action
shall be brought in the county in which the violation occurred or is
threatened to occur. Any proceeding for injunctive relief brought
pursuant to this chapter shall conform to the requirements of Chapter
3 (commencing with Section 525) of Title 7 of Part 2 of the Code of
Civil Procedure.
(b) A state or local agency shall immediately notify the division
and the appropriate regulatory authority of any violations
or arrests made for violations over which the division or
regulatory authority has jurisdiction which involve a licensee
or licensed premises. Notice shall be given within 10 days of the
violation or arrest. The division or regulatory authority
shall promptly cause an investigation to be made as to whether
grounds exist for suspension or revocation of the license.
(c) This chapter shall not be construed to limit a law enforcement
agency's ability to investigate unlawful activity in relation to a
mandatory commercial licensee.
(d) The division shall keep a complete record of all entities
licensed pursuant to this chapter. This record shall be made
available on the division's Internet Web site so as to
permit to state and local law enforcement to
verify a mandatory commercial license.
(e) A city, county, or city and county may impose a temporary
local suspension of the license of a commercial licensee for up to 30
days for violations of this chapter. chapter
or a local ordinance. The regulatory authority shall promptly
cause an investigation to be made as to whether grounds exist for
continued suspension or revocation of the license. A
If the regulatory authority has not completed its
investigation or disciplinary action within 30 days, a city,
county, or city and county may impose a subsequent temporary local
suspension of the license of a commercial licensee for the same
violation until the regulatory authority's investigation and
all appeals are complete. investigation, the
suspension or revocation, and all appeals to that suspension or
revocation are complete. This subdivision shall not limit a city's,
county's, or city and county's authority to enforce laws or
ordinances pursuant to the authority granted by Section 7 of Article
XI of the California Constitution.
Article 5. Transportation of Medical Cannabis
26100. A licensee authorized to transport medical cannabis and
medical cannabis products shall do so only as set forth in this
chapter.
26102. (a) Prior to transporting medical cannabis or medical
cannabis products, a licensee authorized to transport medical
cannabis or medical cannabis products shall do both of the following:
(1) Complete an electronic shipping manifest as prescribed by the
division.
(2) Securely transmit the manifest to the
division and the licensee that will receive the medical cannabis
product.
(b) During transportation, the licensed transporter shall maintain
a physical copy of the shipping manifest and make it available upon
request to agents of the division, local law enforcement officers, or
any other designated enforcement agency.
(c) The licensee receiving the shipment shall maintain each
electronic shipping manifest and shall make it available upon request
to agents of the division, local law enforcement officers, or any
other designated enforcement agency.
(d) Upon receipt of the shipment, a licensed facility shall submit
to the division a record verifying receipt of the shipment and the
details of the shipment.
26104. (a) Transported medical cannabis or medical cannabis
products shall be transported only in a storage compartment that is
securely affixed to the interior of the transporting vehicle, and
shall not be visible from outside the vehicle. This requirement shall
only apply to licensees transporting medical cannabis or medical
cannabis products with a total retail value of over five hundred
dollars ($500).
(b) A vehicle transporting medical cannabis products shall travel
only directly between licensed facilities.
facilities, unless otherwise authorized under its license.
(c) All transport vehicles shall be staffed with a minimum of two
employees. At least one transport member shall remain with the
vehicle at all times when the vehicle contains medical cannabis. This
requirement shall only apply to licensees transporting medical
cannabis or medical cannabis products with a total retail value of
over five thousand dollars ($5,000).
(d) Each transport team member shall possess documentation of
licensing and a government-issued identification card at all times
when transporting or delivering medical cannabis and shall produce it
upon the request of agents of any regulatory authority or any law
enforcement officials.
26105. (a) The division shall develop a database containing the
electronic shipping manifests, which shall include, but are not
limited to, the following information:
(1) The quantity, or weight, and variety of products shipped.
(2) The estimated times of departure and arrival.
(3) The quantity or weight, and variety of products received.
(4) The actual time of arrival.
(5) A categorization of the product.
(b) The database shall be designed to flag irregularities for any
regulatory authority to investigate. Any regulatory authority may, at
any time, inspect shipments and request documentation for current
inventory.
Article 6. Cannabis Employee Certification and Apprenticeship
Program for Cultivation Sites and Dispensaries
26140. This article applies only to cultivation sites and
dispensaries.
26140.5. 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 cultivator or dispensary through a system of
testing and certification.
(b) Maintain an advisory committee and panels as necessary to
carry out its functions under this article. There shall be employer
representation on the committee and panels.
(c) Adopt regulations as determined to be necessary to implement
this article.
(d) Issue certification cards to employees certified pursuant to
this article.
(e) Establish registration fees in an amount reasonably necessary
to implement this article, not to exceed twenty-five dollars ($25)
for the initial registration. There shall be no fee for annual
renewal of registration. Fees shall be placed in the fund.
26141. (a) By January 1, 2017, the Division of Labor Standards
Enforcement shall develop a certification program for cannabis
employees. Commencing January 1, 2019, except as provided in
subdivision (c), certification shall be required of all persons who
perform work as cannabis employees.
(b) Individuals desiring to be certified shall submit an
application for certification and examination.
(c) (1) Certification is not required for registered apprentices
working as cannabis employees as part of a state-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) Commencing January 1, 2019, an uncertified person may perform
work for which certification is otherwise required in order to
acquire the necessary on-the-job experience for certification
provided that the person shall be under the direct supervision of a
cannabis employee certified pursuant to Section 26141 who is
responsible for supervising no more than one uncertified person.
(3) The Division of Labor Standards Enforcement may develop
additional criteria governing this subdivision.
26141.5. (a) The following shall constitute additional grounds
for disciplinary proceedings, including suspension or revocation of
the license issued pursuant to this chapter:
(1) The licensee willfully employs one or more uncertified persons
to perform work as cannabis employees in violation of this section.
(2) The licensee willfully fails to provide adequate supervision
of uncertified workers.
(3) The licensee willfully fails to provide adequate supervision
of apprentices performing work pursuant to paragraph (1) of
subdivision (c) of Section 26141.
(b) The Labor Commissioner shall maintain a process for referring
cases to the appropriate regulatory authority 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
regulatory authorities in furtherance of this section.
(c) Upon receipt of a referral by the Labor Commissioner alleging
a violation under this section, the appropriate regulatory authority
shall open an investigation. Disciplinary action against the licensee
shall be initiated within 60 days of the receipt of the referral.
The regulatory authority 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.
(d) This section shall become operative on January 1, 2019.
SEC. 6. Section 23028 is added to the Government Code, to read:
23028. (a) (1) In addition to any authority otherwise provided by
law, the board of supervisors of any county may impose, by
ordinance, a tax on the privilege of cultivating, dispensing,
producing, processing, preparing, storing, providing, donating,
selling, or distributing cannabis by a licensee operating pursuant to
the Medical Cannabis Regulation and Control Act (Chapter 18
(commencing with Section 26000) of Division 9 of the Business and
Professions Code). The tax may be imposed for general governmental
purposes or for purposes specified in the ordinance by the board of
supervisors.
(2) The board of supervisors shall specify in the ordinance
proposing the tax the activities subject to the tax, the applicable
rate or rates, the method of apportionment, and the manner of
collection of the tax. A tax imposed pursuant to this section is a
tax and not a fee or special assessment, and the tax is not required
to be apportioned on the basis of benefit to any person or property
or be applied uniformly to all taxpayers or all real property.
(3) A tax imposed by a county pursuant to this section by a county
may include a transactions and use tax imposed solely for cannabis
or cannabis 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" or "cannabis" shall
have the meanings set forth in Section 26002 of the Business and
Professions Code.
(e) This section does not limit or prohibit the levy or collection
or any other fee, charge, or tax, or any license or service fee or
charge upon, or related to, the activities set forth in subdivision
(a) as otherwise provided by law. This section shall not be construed
as a limitation upon the taxing authority of any county as provided
by other law.
(f) The total taxation of state and local authorities shall not be
in excess of 25 percent of retail prices.
SEC. 7. Section 11362.775 of the Health and Safety Code is amended
to read:
11362.775. (a) Qualified patients,
Subject to subdivision (b), qualified persons with valid
identification cards, and the designated primary caregivers of
qualified patients and persons with identification cards, who
associate within the State of California in order collectively or
cooperatively to cultivate marijuana for medical purposes, shall not
solely on the basis of that fact be subject to state criminal
sanctions under Section 11357, 11358, 11359, 11360, 11366, 11366.5,
or 11570.
(b) Commencing 180 days following the issuance of provisional
licenses pursuant to the Medical Cannabis Regulation and Control Act
(Chapter 18 (commencing with Section 26000) of Division 9 of the
Business and Professions Code), subdivision (a) shall not apply to
licensees under that act. act or to any
persons who collectively or cooperative cultivate marijuana for
medical purposes. Each regulatory authority shall post a notice
on its Internet Web site indicating when it has commenced issuing
provisional licenses and when the 180-day period has been exhausted.
SEC. 8. Section 147.5 is added to the Labor Code, to read:
147.5. (a) By January 1, 2017, the division
Division of Occupational Safety and Health 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 license pursuant to Chapter 18 (commencing with Section
26000) of Division 9 of the Business and Professions Code.
(b) By July 1, 2017, the advisory committee shall present to the
board its findings and recommendations for consideration by the
board. By July 1, 2017, the board shall render a decision regarding
the adoption of industry-specific regulations pursuant to this
section.
SEC. 9. Section 3094 is added to the Labor Code, to read:
3094. The Division of Apprenticeship Standards shall investigate,
approve, or reject applications for apprenticeship programs for
employees of a licensee subject to Article 6 (commencing with Section
26140) of Chapter 18 of Division 9 of the Business and Professions
Code. The Division of Apprenticeship Standards shall adopt
regulations necessary to implement and regulate the establishment of
the apprenticeship programs described in this section.
SEC. 10. The provisions of this act are severable. If any
provision of this act or its application is held invalid, that
invalidity shall not affect other provisions or applications that can
be given effect without the invalid provision or application.
SEC. 11. The Legislature finds and declares that Section 5 of this
act, which adds Chapter 18 (commencing with Section 26000) to
Division 9 of the Business and Professions Code, 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:
It is necessary to maintain the confidentiality of patient and
physician information provided to the regulatory authorities in order
to protect the private medical information of patients who use
medical cannabis and to preserve the essential confidentiality of the
physician and patient relationship.
SEC. 12. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution for
certain costs that may be incurred by a local agency or school
district because, in that regard, this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
However, if the Commission on State Mandates determines that this
act contains other costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division 4 of
Title 2 of the Government Code.