BILL NUMBER: AB 473	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 19, 2013

INTRODUCED BY   Assembly Member Ammiano

                        FEBRUARY 19, 2013

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


	LEGISLATIVE COUNSEL'S DIGEST


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

   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. 
   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.
 
   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. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Chapter 18 (commencing with Section
26000) is added to Division 9 of the   Business and
Professions Code   , to read:  
      CHAPTER 18.  MEDICAL CANNABIS REGULATION



      Article 1.  General Provisions


   26000.  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.
   26002.  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 2.  Administration


   26020.  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.
   26022.  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.
   26024.  The division shall assist in the development of uniform
policies for the taxation of medical cannabis businesses.
   26026.  The division shall identify successful regulatory
structures for the purpose of supporting cities and counties in
appropriately governing activities related to medical cannabis.

      Article 3.  Licensing


   26040.  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.
   26042.  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 4.  Enforcement


   26060.  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.  
  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.