Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 473

Introduced by Assembly Member Ammiano

February 19, 2013

An act begin insert to add Chapter 18 (commencing with Section 26000) to Division 9 of the Business and Professions Code, end insert relating to medical cannabis.

LEGISLATIVE COUNSEL’S DIGEST

AB 473, as amended, Ammiano. Medical cannabis: state begin delete regulatory structure. end delete begin insert regulation and enforcement. end insert

Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 6, 1996, statewide general election, authorizes the use of marijuana for medical purposes. Existing law enacted by the Legislature requires the establishment of a program for the issuance of identification cards to qualified patients so that they may lawfully use marijuana for medical purposes, and requires the establishment of guidelines for the lawful cultivation of marijuana grown for medical use.

begin delete

This bill would state the intent of the Legislature to enact legislation that would, pursuant to the Compassionate Use Act of 1996, provide a comprehensive state regulatory structure for medical cannabis cultivation, processing, testing, and distribution.

end delete begin insert

This bill would create the Division of Medical Cannabis Regulation and Enforcement within the Department of Alcoholic Beverage Control. The bill would grant the division all power necessary to, among other things, establish statewide standards for the cultivation, manufacturing, testing, transportation, distribution, and sales of medical cannabis and medical cannabis products and a statewide fee scale in relation to these activities. The bill would require the division to assist in the development of uniform policies for the taxation of medical cannabis businesses and establish a licensing structure, as specified, which would include an identification card program. The bill would require the division 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 who fail to comply with the law.

end insert

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Chapter 18 (commencing with Section 26000) is
added to Division 9 of the end insert begin insert Business and Professions Code end insert begin insert , to read: end insert

begin insert

 

Chapter   begin insert 18. end insert Medical Cannabis Regulation

 

Article begin insert 1. end insert   General Provisions

 

begin insert 26000. end insert   

It is the intent of the Legislature in enacting this chapter
to provide for the comprehensive regulation of the cultivation,
manufacturing, testing, transportation, distribution, and sale of
medical cannabis and the enforcement of laws relating to these
activities.

begin insert 26002. end insert   

For the purpose of this chapter:

(a) “Division” means the Division of Medical Cannabis
Regulation and Enforcement.

(b) “Identification program” means the universal identification
card program for qualified patients and persons engaged in
business operations related to medical cannabis.

 

Article begin insert 2. end insert   Administration

 

begin insert 26020. end insert   

There is hereby created in the Department of Alcoholic
Beverage Control the Division of Medical Cannabis Regulation
and Enforcement. The division shall be administered by a chief
executive to be appointed by the director.

begin insert 26022. end insert   

The division shall have all power necessary for
administration of this chapter, including, but not limited to, the
following:

(a) Establishing statewide standards for the cultivation,
manufacturing, testing, transportation, distribution, and sales of
medical cannabis and medical cannabis products.

(b) Establishing a scale of fees, to be imposed by the state, for
the cultivation, manufacturing, testing, transportation, distribution,
and sale of medical cannabis and medical cannabis products.

(c) Adopting, amending, and rescinding reasonable regulations,
special rulings, and findings as necessary for the regulation and
control of the cultivation, manufacturing, testing, transportation,
distribution, and sale of medical cannabis and to govern the
procedures of the division to exercise the powers and perform the
duties conferred upon it by this chapter, in accordance with the
provisions of Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code.

begin insert 26024. end insert   

The division shall assist in the development of uniform
policies for the taxation of medical cannabis businesses.

begin insert 26026. end insert   

The division shall identify successful regulatory
structures for the purpose of supporting cities and counties in
appropriately governing activities related to medical cannabis.

 

Article begin insert 3. end insert   Licensing

 

begin insert 26040. end insert   

The division shall establish a licensing program and a
fee structure for cultivation, manufacturing, testing, transportation,
distribution, and sale of medical cannabis and medical cannabis
products.

begin insert 26042. end insert   

The licensing program described in Section 24040 shall
include an identification card program that respects the protections
of the Confidentiality of Medical Information Act (Part 2.6
(commencing with Section 56) of Division 1 of the Civil Code) and
the federal Health Insurance Portability and Accountability Act
of 1996 (42 U.S.C. Sec. 1320d et seq.).

 

Article begin insert 4. end insert   Enforcement

 

begin insert 26060. end insert   

The division shall work in conjunction with law
enforcement entities throughout the state for the purpose of
implementing and enforcing the rules and regulations regarding
medical cannabis and taking appropriate action against businesses
and individuals who fail to comply with the law.

end insert

begin delete

SECTION 1.  

It is the intent of the Legislature to enact
legislation that would, pursuant to the Compassionate Use Act of
1996, provide a comprehensive state regulatory structure for
medical cannabis cultivation, processing, testing, and distribution.

end delete