Amended in Senate September 6, 2013

Amended in Senate August 13, 2013

Amended in Assembly April 29, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 604


Introduced by Assembly Member Ammiano

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(Principal coauthors: Senators Steinberg and Leno)

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February 20, 2013


begin deleteAn act to add Section 806 to the Evidence Code, and to add Sections 686.3 and 1127i to the Penal Code, relating to criminal investigations. end deletebegin insertAn 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, and to amend Section 11362.7 of, and to amend and repeal Section 11362.775 of, the Health and Safety Code, relating to medical cannabis, and making an appropriation therefor.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 604, as amended, Ammiano. begin deleteCriminal investigations: eyewitness identification. end deletebegin insertMedical cannabis: state regulation and enforcement.end insert

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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, commonly referred to as the Medical Marijuana Program Act, 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.

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The Medical Practice Act provides for the regulation and licensing of physicians and surgeons by the Medical Board of California and requires the board to prioritize investigations and prosecutions of physicians and surgeons representing the greatest threat of harm, as specified. Existing law identifies the cases that are to be given priority, which include cases of repeated acts of excessively prescribing, furnishing, or administering controlled substances without a good faith prior examination of the patient. Existing law makes it unprofessional conduct for a physician and surgeon to prescribe, dispense, or furnish dangerous drugs without an appropriate prior examination and medical indication. Existing law also makes it unprofessional conduct to employ, aid, or abet an unlicensed person in the practice of medicine. Existing law generally makes any person who violates these provisions guilty of a misdemeanor.

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This bill would enact the Medical Cannabis Regulation and Control Act and would create the Division of Medical Cannabis Regulation and Enforcement within the Department of Alcoholic Beverage Control, to be administered by a person exempt from civil service who is appointed by the Director of Alcoholic Beverage Control. The bill would grant the department the exclusive power to register persons for the cultivation, manufacture, testing, transportation, storage, distribution, and sale of medical cannabis within the state subject to specified exemptions for a city or county. The bill would provide that the director and persons employed by the department to administer and enforce its provisions are peace officers. The bill would prescribe requirements for the issuance, renewal, suspension, and revocation of mandatory commercial registrations and fees in relation to these activities. The bill would permit the department to assist statewide taxation authorities in the development of uniform policies for the taxation of mandatory commercial medical cannabis registrants and to assist in the development of regulation in connection with work safety in this industry. The bill would authorize the division to establish a grant program for the purpose of funding medical cannabis regulation and enforcement.

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The bill would establish the Medical Cannabis Regulation Fund and would require deposit of fees into the fund. The bill would continuously appropriate moneys within the fund to the division for the purposes of administering the program. The bill would require the deposit of penalty money into the General Fund.

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The bill would require the department, on or before January 1, 2015, to issue regulations as necessary for the implementation and enforcement of mandatory commercial medical cannabis registration, as specified, and would prescribe requirements for provisional registrations to be operative January 1, 2014. The bill would prohibit approval of a mandatory commercial registration for specified reasons, including if a licensed physician making patient recommendations for medical cannabis is an interested party in the proposed operation, and would prohibit a physician from recommending medical cannabis to a patient while he or she is a mandatory commercial registrant, or associated, as specified, with a mandatory commercial registrant. The bill would provide that certain patient and caregiver information is excluded from disclosure to the public. The bill would provide that the actions of a mandatory commercial registrant or provisional registrant, its employees, and its agents that are permitted pursuant to a valid mandatory commercial registration issued by the division and that are conducted in accordance with the requirements of the act are not unlawful, as specified. The bill would provide a similar immunity for a property owner who allows his or her property to be used by a mandatory commercial registrant or provisional registrant.

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The bill would require the department 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 prohibit, on and after January 1, 2015, a person other than a mandatory commercial registrant from selling cannabis or cannabis products or performing other actions related to cannabis, except as specified. The bill would provide that its provisions do not affect local zoning ordinances or laws of general application. The bill would make certain violations of its provisions a crime, thereby imposing a state-mandated local program. The bill would create a Medical Cannabis Appeals Board to which a person aggrieved by any final decision of the department could appeal. The bill would authorize the department to delegate authority to administrative law judges. The bill would prescribe a procedure for these appeals and for the review of an order of the appeals board by the courts. The bill would establish requirements for the transportation of medical cannabis. The bill would specify that its provisions are severable.

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The bill would specify that recommending marijuana to patients without a good faith examination and medical reason is unprofessional conduct and is a type of case that should be given priority for investigation and prosecution by the Medical Board of California, as described above. The bill would also specify that employment by, or an agreement with, a mandatory medical cannabis registrant to provide recommendations for medical marijuana constitutes unprofessional conduct. By broadening the definition of a crime, the bill would impose a state-mandated local program. The bill would repeal, 90 days after the department posts a specified notice on its Internet Web site, the provisions described above prohibiting 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.

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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.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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Existing law allows opinion testimony from expert witnesses to be admitted at trial upon specified showings.

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This bill would allow expert testimony regarding the reliability of an eyewitness identification to be admitted at trial if the proponent of the evidence establishes relevancy and proper qualifications of the witness.

end delete
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Existing law generally regulates the collection and admissibility of evidence for purposes of criminal prosecutions.

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This bill would authorize any law enforcement agency to adopt regulations for conducting photo and live lineups with eyewitnesses, and provides that specified procedures should be considered when adopting the regulations, including sequentially presenting photos used in an identification procedure and separating all witnesses when viewing an identification procedure.

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Existing law provides that in any criminal case which is being tried before the court with a jury, all requests for instructions on points of law must be made to the court before commencement of argument.

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This bill would require the court in a criminal trial or proceeding in which a witness testifies to an identification made before trial, as specified, and where the local law enforcement agency in that jurisdiction has adopted recommended live and photo eyewitness identification procedures, to give specified instructions to the jury, including an instruction that they may consider evidence that law enforcement officers did or did not follow specified procedures during identification procedures when determining the reliability of the eyewitness identification. The bill would authorize the court to provide the same instructions in a jurisdiction that has not adopted the recommended live and photo eyewitness identification procedures.

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Vote: majority. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

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

P5    1begin insert

begin insertSECTION 1.end insert  

end insert
begin insert

This act shall be known, and may be cited, as the
2Medical Cannabis Regulation and Control Act.

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3begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

(a) The Legislature finds and declares all of the
4following:

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5(1) In 1996, the people of the State of California enacted the
6Compassionate Use Act of 1996, codified in Section 11362.5 of
7the Health and Safety Code. The people of the State of California
8declared that their purpose in enacting the measure was, among
9other things, “to ensure that seriously ill Californians have the
10right to obtain and use marijuana for medical purposes where that
11medical use is deemed appropriate and has been recommended
12by a physician who has determined that the person’s health would
13benefit from the use of marijuana in the treatment of cancer,
14anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis,
15migraine, or any other illness for which marijuana provides relief.”

end insert
begin insert

16(2) The Compassionate Use Act of 1996 called on state
17government to implement a plan for the safe and affordable
18distribution of marijuana to all patients in medical need of
19marijuana.

end insert
begin insert

20(3) In 2003, the Legislature enacted the Medical Marijuana
21Program Act (MMPA), codified in Article 2.5 (commencing with
22Section 11362.7) of Chapter 6 of Division 10 of the Health and
23Safety Code. Under the guidance of the MMPA, approximately 60
24California cities and counties have created medical marijuana
25access ordinances that can act as a guide for the state. However,
26many other cities and counties are calling for more guidance and
27regulation from the state and have passed bans or moratoria on
28medical marijuana cultivation and distribution while awaiting this
29guidance.

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P6    1(4) Greater certainty and uniformity are urgently needed
2regarding the rights and obligations of medical marijuana
3facilities, and for the imposition and enforcement of regulations
4to prevent unlawful cultivation and the diversion of marijuana to
5nonmedical use.

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begin insert

6(5) Despite the passage of the Compassionate Use Act of 1996
7and the MMPA, because of the lack of an effective statewide system
8for regulating and controlling medical marijuana, local law
9enforcement officials have been confronted with uncertainty about
10the legality of some medical marijuana cultivation and distribution
11activities. The current system of collectives and cooperatives makes
12law enforcement difficult and endangers patient safety because of
13an inability to monitor the supply of medical marijuana in the state
14 and the lack of quality control, testing, and labeling requirements.
15As a result, many cities and counties have passed local ordinances
16that in some cases ban the cultivation or distribution of medical
17marijuana.

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begin insert

18(6) For the protection of all Californians, the state must act to
19regulate and control medical marijuana and not preempt local
20government ordinances. Cities and counties should be allowed to
21impose reasonable local taxes and enact reasonable zoning
22regulations and other restrictions applicable to the cultivation and
23distribution of medical marijuana based on local needs. In order
24to provide patients with access to safe medical marijuana products,
25while at the same time preventing diversion of marijuana to
26nonmedical uses and protecting the public, it is necessary to amend
27the MMPA and to establish a comprehensive structure for
28regulating the cultivation, production, and distribution of medical
29marijuana products.

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30(7) A state entity shall be created to regulate and control the
31mandatory registration of all entities involved in the commercial
32cultivation, processing, manufacturing, testing, transportation,
33distribution, and sale of medical marijuana in this state. Patients
34and their primary caregivers shall continue to be allowed to
35cultivate medical marijuana for the personal medical purposes of
36the individual patient, but only medical marijuana produced in
37compliance with this act may be sold or commercially distributed.

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38(8) This act is not intended to prevent cities and counties from
39imposing reasonable local taxes and enacting reasonable zoning
40regulations and other restrictions applicable to the commercial
P7    1cultivation and distribution of medical marijuana based on local
2needs.

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3(9) It is the intent of the Legislature that the state entity created
4to regulate and control medical marijuana solicit input from cities
5and counties that have local ordinances or regulations allowing
6for the registering, permitting, or licensing of medical marijuana
7businesses, dispensaries, or other entities involved in providing
8medical marijuana to patients in the process of promulgating
9standards and regulations pursuant to this act.

end insert
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10(10) The provisions of this act are enacted pursuant to the
11powers reserved to the State of California and its people under
12the Tenth Amendment to the United States Constitution.

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13(11) Nothing in this act is intended to require any individual or
14entity to engage in any conduct that violates federal law or to
15exempt anyone from any requirement of federal law or to pose any
16obstacle to federal enforcement of federal law.

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17(b) It is therefore the intent of the Legislature, in enacting this
18act, to accomplish all of the following:

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19(1) To establish a statewide system for regulating and
20controlling commercial medical cannabis activities by creating a
21state entity to enact and enforce regulations governing the
22cultivation, processing, manufacturing, testing, transportation,
23distribution, and sale of commercial medical cannabis.

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24(2) To allow cities and counties to enact reasonable zoning
25regulations or other restrictions applicable to the cultivation,
26processing, manufacturing, testing, and distribution of commercial
27medical cannabis based on local needs.

end insert
begin insert

28(3) To establish the Division of Medical Cannabis Regulation
29and Enforcement to be located within the Department of Alcoholic
30Beverage Control to provide a governmental agency that will
31ensure the strict, honest, impartial, and uniform administration
32and enforcement of the medical cannabis laws throughout the
33state.

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34(4) To fulfill the promise of the Compassionate Use Act of 1996
35to “implement a plan for the safe and affordable distribution of
36marijuana to all patients in medical need of marijuana.”

end insert
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37(5) To establish a statewide registration process for commercial
38medical cannabis activities to identify for law enforcement which
39entities are exempt from state criminal penalties.

end insert
begin insert

P8    1(6) To reduce the cost of commercial medical cannabis
2enforcement by controlling commercial medical cannabis
3production and distribution through comprehensive statewide
4regulation and providing law enforcement guidelines to more
5easily determine whether or not a person is acting in conformance
6with the state’s medical cannabis laws.

end insert
7begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 2220.05 of the end insertbegin insertBusiness and Professions Codeend insert
8begin insert is amended to read:end insert

9

2220.05.  

(a) In order to ensure that its resources are maximized
10for the protection of the public, the Medical Board of California
11shall prioritize its investigative and prosecutorial resources to
12ensure that physicians and surgeons representing the greatest threat
13of harm are identified and disciplined expeditiously. Cases
14involving any of the following allegations shall be handled on a
15priority basis, as follows, with the highest priority being given to
16cases in the first paragraph:

17(1) Gross negligence, incompetence, or repeated negligent acts
18that involve death or serious bodily injury to one or more patients,
19such that the physician and surgeon represents a danger to the
20public.

21(2) Drug or alcohol abuse by a physician and surgeon involving
22death or serious bodily injury to a patient.

23(3) Repeated acts of clearly excessive prescribing, furnishing,
24or administering of controlled substances, or repeated acts of
25prescribing, dispensing, or furnishing of controlledbegin delete substancesend delete
26begin insert substances, or recommending marijuana to patients for medical
27purposes,end insert
without a good faith prior examination of the patient
28and medical reason therefor. However, in no event shall a physician
29and surgeon prescribing, furnishing, or administering controlled
30substances for intractable pain consistent with lawful prescribing,
31including, but not limited to, Sections 725, 2241.5, and 2241.6 of
32this code and Sections 11159.2 and 124961 of the Health and
33Safety Code, be prosecuted for excessive prescribing and prompt
34review of the applicability of these provisions shall be made in
35any complaint that may implicate these provisions.

36(4) Sexual misconduct with one or more patients during a course
37of treatment or an examination.

38(5) Practicing medicine while under the influence of drugs or
39alcohol.

P9    1(b) The board may by regulation prioritize cases involving an
2allegation of conduct that is not described in subdivision (a). Those
3cases prioritized by regulation shall not be assigned a priority equal
4to or higher than the priorities established in subdivision (a).

5(c) The Medical Board of California shall indicate in its annual
6report mandated by Section 2312 the number of temporary
7restraining orders, interim suspension orders, and disciplinary
8actions that are taken in each priority category specified in
9subdivisions (a) and (b).

10begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 2242 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert is
11amended to read:end insert

12

2242.  

(a) Prescribing, dispensing, or furnishing dangerous
13drugs as defined in Sectionbegin delete 4022end deletebegin insert 4022, or recommending
14marijuana to a patient for medical purposes,end insert
without an appropriate
15prior examination and a medical indication,begin insert including an in-person
16examination when recommending marijuana,end insert
constitutes
17unprofessional conduct.

18(b) No licensee shall be found to have committed unprofessional
19conduct within the meaning of this section if, at the time the drugs
20were prescribed, dispensed, or furnished, any of the following
21applies:

22(1) The licensee was a designated physician and surgeon or
23podiatrist serving in the absence of the patient’s physician and
24surgeon or podiatrist, as the case may be, and if the drugs were
25prescribed, dispensed, or furnished only as necessary to maintain
26the patient until the return of his or her practitioner, but in any case
27no longer than 72 hours.

28(2) The licensee transmitted the order for the drugs to a
29registered nurse or to a licensed vocational nurse in an inpatient
30facility, and if both of the following conditions exist:

31(A) The practitioner had consulted with the registered nurse or
32licensed vocational nurse who had reviewed the patient’s records.

33(B) The practitioner was designated as the practitioner to serve
34in the absence of the patient’s physician and surgeon or podiatrist,
35as the case may be.

36(3) The licensee was a designated practitioner serving in the
37absence of the patient’s physician and surgeon or podiatrist, as the
38case may be, and was in possession of or had utilized the patient’s
39records and ordered the renewal of a medically indicated
P10   1prescription for an amount not exceeding the original prescription
2in strength or amount or for more than one refill.

3(4) The licensee was acting in accordance with Section 120582
4of the Health and Safety Code.

5begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 2264 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert is
6amended to read:end insert

7

2264.  

The employing, directly or indirectly, the aiding, or the
8abetting of any unlicensed person or any suspended, revoked, or
9unlicensed practitioner to engage in the practice ofbegin delete medicineend delete
10begin insert medicine, including employment by,end insert orbegin insert other agreement with, a
11mandatory commercial registrant acting pursuant to the Medical
12Cannabis Regulation and Control Act or a dispensary to provide
13recommendations for medical marijuana, orend insert
any other mode of
14treating the sick or afflicted which requires a license to practice
15constitutes unprofessional conduct.

16begin insert

begin insertSEC. 6.end insert  

end insert

begin insertChapter 18 (commencing with Section 26000) is added
17to Division 9 of the end insert
begin insertBusiness and Professions Codeend insertbegin insert, to read:end insert

begin insert

18 

19Chapter  begin insert18.end insert Medical Cannabis Regulation
20

 

21Article begin insert1.end insert  General Provisions
22

 

23

begin insert26000.end insert  

(a) It is the intent of the Legislature in enacting this
24chapter to provide for the comprehensive regulation of the
25commercial cultivation, manufacturing, testing, transportation,
26distribution, and sale of medical cannabis and the enforcement of
27laws relating to commercial medical cannabis activities.

28(b) This chapter is an exercise of the police powers of the state
29for the protection of the safety, welfare, health, peace, and morals
30of the people of the state.

31

begin insert26001.end insert  

Subject to the authority of a city or county pursuant to
32Section 26010, the state shall have the exclusive right and power
33to regulate and register persons for the cultivation, manufacture,
34testing, transportation, storage, distribution, sale, purchase, and
35possession of medical cannabis within the state. In the exercise of
36these rights and powers, the Legislature shall not constitute the
37state or any of its agencies as a cultivator, manufacturer,
38transporter, tester, or seller of medical cannabis.

39

begin insert26002.end insert  

For the purpose of this chapter:

P11   1(a) “Cannabis” means all parts of the plant Cannabis sativa
2L., whether growing or not; the seeds thereof; the resin extracted
3from any part of the plant; and every compound, manufacture,
4salt, derivative, mixture, or preparation of the plant, its seeds or
5resin. It does not include the mature stalks of the plant, fiber
6produced from the stalks, oil or cake made from the seeds of the
7plant, any other compound, manufacture, salt, derivative, mixture,
8or preparation of the mature stalks (except the resin extracted
9therefrom), fiber, oil, or cake, or the sterilized seed of the plant
10which is incapable of germination. “Cannabis” also means the
11separated resin, whether crude or purified, obtained from
12marijuana.

13(b) “Department” means the Department of Alcoholic Beverage
14Control.

15(c) “Dispensary” means a mandatory commercial registrant
16that dispenses cannabis or medical cannabis products through a
17retail storefront.

18(d) “Division” means the Division of Medical Cannabis
19Regulation and Enforcement.

20(e) “Fund” means the Medical Cannabis Regulation Fund
21established pursuant to Section 26028.

22(f) “Identification program” means the universal identification
23certificate program for mandatory commercial registrants.

24(g) “Mandatory commercial registrant” or “registrant” means
25any individual, partnership, joint venture, association, limited
26 liability company, corporation, estate, trust, receiver, syndicate,
27or any other group or combination thereof acting as a unit to
28commercially cultivate, process, possess, store, manufacture, test,
29transport, distribute, or sell medical cannabis in compliance with
30this chapter, other than a patient or a patient’s primary caregiver,
31as defined by the Compassionate Use Act of 1996, growing,
32possessing, storing, manufacturing, transporting, or providing
33medical cannabis exclusively for the personal medical purposes
34of individual patients as defined in subdivision (b) of Section
3526050.

36(h) “Medical cannabis product” means any cannabis product,
37including concentrates and extractions, that is cultivated,
38processed, packaged, and distributed in full compliance with the
39requirements of this chapter and with any regulations adopted by
40the department pursuant to its rulemaking authority. “Medical
P12   1cannabis product” includes medically infused products that contain
2medical cannabis and are intended for oral or topical consumption
3by a qualified patient.

4(i) “Person” includes any individual, firm, copartnership, joint
5adventure, association, corporation, estate, trust, business trust,
6receiver, syndicate, or any other group or combination acting as
7a unit and includes the plural as well as the singular number.

8(j) “Testing and labeling” means mandatory labeling and a
9quality assurance plan in place that addresses all of the following:

10(1) Potency.

11(2) Chemical residue.

12(3) Microbiological contaminants.

13(4) Random sample testing of medical cannabis and medical
14cannabis products.

15(5) Handling, care, and storage.

16(6) Date and location of production and manufacturing.

17

begin insert26010.end insert  

This chapter does not prevent a city or county from
18doing any of the following:

19(a) Adopting local ordinances that ban or regulate the location,
20operation, or establishment of a cannabis dispensary.

21(b) The civil or criminal enforcement of the ordinances
22described in subdivision (a).

23(c) Establishing a reasonable fee for the operation of a
24mandatory commercial registrant within its jurisdiction.

25(d) Enacting other laws consistent with this chapter.

26 

27Article begin insert2.end insert  Administration
28

 

29

begin insert26020.end insert  

(a) There is hereby created in the Department of
30Alcoholic Beverage Control the Division of Medical Cannabis
31Regulation and Enforcement. The division shall be administered
32by a person exempt from the civil service who is appointed by the
33director.

34(b) The department shall have the exclusive power, consistent
35with the provisions of this chapter, to register persons for the
36cultivation, manufacture, testing, transportation, storage,
37distribution, and sale of medical cannabis within the state and to
38collect registration fees in connection with these actions.

P13   1

begin insert26022.end insert  

The department shall have all power necessary for
2administration of this chapter, including, but not limited to, the
3following:

4(a) Establishing statewide standards for the commercial
5cultivation, manufacturing, testing, transportation, storage,
6distribution, and sale of medical cannabis and medical cannabis
7products and procedures for the issuance, renewal, suspension,
8and revocation of registrations of mandatory commercial
9registrants.

10(b) Establishing a scale of application, registration, and renewal
11fees, to be imposed by the state, for mandatory commercial
12registrants for the cultivation, manufacturing, testing,
13transportation, distribution, and sale of medical cannabis and
14medical cannabis products. The department may charge separate
15fees for each mandatory commercial registration application for
16cultivation, manufacturing, transportation, distribution, and sale.
17The total fees imposed pursuant to this chapter shall be reasonable
18and based on the actual costs of administering and enforcing this
19chapter.

20(c) The department shall make and prescribe those reasonable
21rules as may be necessary or proper to carry out the purposes and
22intent of this chapter and to enable it to exercise the powers and
23perform the duties conferred upon it by this chapter and in
24accordance with Chapter 3.5 (commencing with Section 11340)
25of Part 1 of Division 3 of Title 2 of the Government Code. For the
26performance of its duties, the department has the powers as set
27forth in Article 2 (commencing with Section 11180) of Chapter 2
28of Part 1 of Division 3 of Title 2 of the Government Code.

29(d) Approving or denying mandatory commercial registration
30applications for cultivation, manufacturing, testing and labeling,
31transportation, distribution, and sale of medical cannabis pursuant
32to this chapter.

33(e) The department shall have the power, in its discretion, to
34deny, suspend, revoke, or fine any registration issued pursuant to
35this chapter if the department determines, for good cause, that the
36granting or continuance of the registration would be contrary to
37public welfare or morals or that a person holding or seeking a
38registration has violated any law prohibiting conduct involving
39moral turpitude.

P14   1(f) Imposing any penalty authorized by this chapter or any rule
2or regulation adopted pursuant to this chapter.

3(g) Taking any reasonable action with respect to a mandatory
4commercial registration application in accordance with procedures
5established pursuant to this chapter.

6(h) Upon the denial of any application for a registration, the
7department shall notify the applicant in writing. After service of
8the notice and within the time prescribed by the department, the
9applicant may present his or her written petition for a registration
10to the department. Upon receipt by the department of a petition
11for a registration in proper form, the petition shall be set for
12hearing.

13(i) (1) For any hearing held pursuant to this chapter, the
14department may delegate the power to hear and decide to an
15administrative law judge appointed by the director. Any hearing
16before an administrative law judge shall be pursuant to the
17procedures, rules, and limitations prescribed in Chapter 5
18(commencing with Section 11500) of Part 1 of Division 3 of Title
192 of the Government Code.

20(2) Prior to suspending, revoking, or fining any registration,
21the department shall file an accusation as provided for in Section
2211503 of the Government Code, and the registrant may request a
23hearing.

24(j) Developing any forms, identification certificates, and
25applications that are necessary or convenient in the reasonable
26discretion of the department for the administration of this chapter
27or any of the rules or regulations adopted pursuant to this chapter.

28(k) Overseeing the operation of the Medical Cannabis
29Regulation Fund established pursuant to Section 26028.

30(l) Establishing reasonable fees for processing all applications,
31registrations, notices, or reports required to be submitted to the
32department. The amount of the fees shall reflect, but shall not
33exceed, the direct and indirect costs of the department for the
34administration of this chapter and the rules or regulations adopted
35pursuant to this chapter.

36(m) The department may consult with other state agencies,
37departments, or public or private entities for the purposes of
38establishing statewide standards and regulations.

P15   1

begin insert26024.end insert  

(a) The department may assist state taxation authorities
2in the development of uniform policies for the taxation of
3mandatory commercial registrants.

4(b) The department shall assist the Division of Occupational
5Safety and Health in the Department of Industrial Relations in the
6development of industry-specific regulations related to commercial
7medical cannabis activities.

8

begin insert26028.end insert  

(a) The Medical Cannabis Regulation Fund is hereby
9established within the State Treasury. Notwithstanding Section
1016305.7 of the Government Code, the fund shall include any
11interest and dividends earned on the money in the fund.

12(b) All fees collected pursuant to this chapter shall be deposited
13into the Medical Cannabis Regulation Fund. Notwithstanding
14Section 13340 of the Government Code, all moneys within the fund
15are hereby continuously appropriated, without regard to fiscal
16year, to the department solely for the purposes of fully funding
17and administering this chapter, including, but not limited to, the
18costs incurred by the department for its administrative expenses.

19(c) All moneys collected pursuant to this chapter as a result of
20penalties imposed under this division shall be deposited directly
21into the General Fund, to be available upon appropriation.

22(d) The department may establish and administer a grant
23program to allocate moneys from the Medical Cannabis Regulation
24Fund to state and local entities for the purpose of assisting with
25commercial medical cannabis regulation and the enforcement of
26this chapter.

27

begin insert26030.end insert  

(a) The director and the persons employed by the
28department for the administration and enforcement of this chapter
29are peace officers in the enforcement of the penal provisions of
30this chapter, the rules of the department adopted under the
31provisions of this chapter, and any other penal provisions of law
32of this state prohibiting or regulating the cultivation, processing,
33storing, manufacturing, testing, transporting, or selling of medical
34cannabis, and these persons are authorized, while acting as peace
35officers, to enforce any penal provisions of law while in the course
36of their employment.

37(b) The director, the persons employed by the department for
38the administration and enforcement of this chapter, peace officers
39listed in Section 830.1 of the Penal Code, and those officers listed
40in Section 830.6 of the Penal Code while acting in the course and
P16   1scope of their employment as peace officers may, in enforcing the
2provisions of this chapter, visit and inspect the premises of any
3mandatory commercial registrant at any time during which the
4registrant is acting pursuant to the registration.

5(c) Peace officers of the Department of the California Highway
6Patrol, members of the University of California and California
7State University police departments, and peace officers of the
8Department of Parks and Recreation, as defined in subdivisions
9(a), (b), (c), and (f) of Section 830.2 of the Penal Code, may, in
10enforcing this chapter, visit and inspect the premises of any
11mandatory commercial registrant located on state property at any
12time during which the registrant is acting pursuant to the
13registration.

14

begin insert26034.end insert  

(a) Information identifying the names of patients, their
15medical conditions, or the names of their primary caregivers
16received and contained in records kept by the department for the
17purposes of administering this chapter are confidential and exempt
18from the California Public Records Act (Chapter 3.5 (commencing
19with Section 6250) of Division 7 of Title 1 of the Government Code)
20and or not subject to disclosure to any individual or private entity,
21except as necessary for authorized employees of the State of
22California to perform official duties pursuant to this chapter:

23(b) (1) Nothing in this section precludes the following:

24(A) Division employees notifying state or local law enforcement
25about information submitted to the division that the employee
26suspects is falsified or fraudulent.

27(B) Notifications from the division to state or local law
28enforcement about apparent criminal violation of this chapter.

29(C) Verification of requests by state or local law enforcement
30to confirm registrants and certificates issued by the division or
31other state agency.

32(D) Provision of information requested pursuant to a court
33order or subpoena issued by a court.

34(2) Information shall not be disclosed beyond what is necessary
35to achieve the limited goals of a specific investigation or the
36parameters of a specific court order or subpoena.

 

P17   1Article begin insert3.end insert  Mandatory Commercial Registration
2

 

3

begin insert26040.end insert  

(a) On or before January 1, 2015, the department shall
4promulgate regulations necessary for the implementation and
5enforcement of this chapter. These regulations shall be reasonable
6and shall include:

7(1) Procedures for the issuance, renewal, suspension, and
8revocation of mandatory commercial registrations.

9(2) Application, registration, and renewal forms and fees
10consistent with this act.

11(3) Time periods, not to exceed 90 days, by which the department
12shall approve or deny an application for medical cannabis
13registration.

14(4) Qualifications for registrants.

15(5) Security requirements, including, but not limited to,
16procedures for limiting access to facilities and for the screening
17of employees. The department shall require all registrants to
18maintain an accurate roster of any employee’s name, date of birth,
19and relevant personally identifying information, which shall be
20available for inspection by the department or state or local law
21enforcement upon demand.

22(6) Testing and labeling requirements, including, but not limited
23to, disclosure of the active cannabinoid profile, constituent
24elements, active ingredients, and results of testing for
25contaminants.

26(7) Health and safety requirements, including, but not limited
27to, prohibitions on shipping or distribution of products containing
28microbiological, bacterial, pathogenic yeast or mold counts, or
29any adulterant or contaminant, that exceed levels to be determined
30by the department.

31(8) Inspection and tracking requirements, including, but not
32limited to, an electronic production and inventory tracking system
33that will allow the department to monitor inventory data at every
34level of the cultivation, processing, and distribution system through
35a secure, Internet Web site-based portal.

36(9) Storage, packaging, and transportation procedures and
37protocols.

38(10) Advertising restrictions and requirements.

39(11) Requirements to ensure conformance with applicable state
40statutory environmental, agricultural, and food and product safety
P18   1requirements. The department may consult with the California
2Environmental Protection Agency to determine whether additional
3 regulations should be issued in order to protect the state’s clean
4water and environment, including, but not limited to, protections
5related to land conversion, grading, water diversion and pond
6development, and agricultural discharges.

7(12) Requirements to prevent the diversion of cannabis to
8nonmedical use, including procedures and protocols for disposal
9of excess, contaminated, adulterated, or deteriorated products.

10(13) Civil penalties for the failure to comply with regulations
11adopted pursuant to this chapter.

12(b) A mandatory commercial registration application or renewal
13shall not be approved if the department determines any of the
14following:

15(1) The applicant fails to meet the requirements of this chapter
16or any regulation adopted pursuant to this chapter, including any
17applicable city or county ordinance or regulation.

18(2) The applicant, or any of its officers or directors, is under
1921 years of age.

20(3) The applicant has knowingly answered a question or request
21for information falsely on the application form or failed to provide
22information requested.

23(4) The applicant, or any of its officers or directors, has been
24convicted in the previous five years of a violent felony, as specified
25in subdivision (c) of Section 667.5 of the Penal Code, a serious
26felony as specified in subdivision (c) of Section 1192.7 of the Penal
27Code, a felony offense involving fraud or deceit, or any other felony
28that, in the department’s estimation, would impair the applicant’s
29ability to appropriately operate as a mandatory commercial
30registrant.

31(5) The applicant, or any of its officers or directors, is a licensed
32physician making patient recommendations for medical cannabis.

33(6) The applicant, or any of its officers or directors, has been
34sanctioned by the department, a city, or a county for unregistered
35commercial medical cannabis activities or has had a mandatory
36commercial registration revoked in the previous three years.

37(7) A sufficient number of mandatory commercial registrants
38already exists in the state, a city, or a county to provide a sufficient
39amount of medical cannabis to satisfy patients’ medical use in that
40jurisdiction.

P19   1(c) (1) In order to protect the public safety and provide patients
2with prompt, safe access to medical cannabis during
3implementation of this chapter, within 180 days of January 1,
42014, the department shall issue emergency regulations consistent
5with this chapter that allow a qualified applicant for mandatory
6commercial registration to apply, be reviewed, and be registered
7to cultivate, process, manufacture, store, and transport medical
8cannabis so as to ensure an adequate supply of medical cannabis
9upon full implementation of this chapter.

10(2) The department shall establish appropriate fees as part of
11its emergency regulations adopted pursuant to this chapter.

12

begin insert26042.end insert  

For the purpose of regulating the commercial
13cultivation, manufacturing, testing, transportation, distribution,
14and sale of medical cannabis, the department, in its reasonable
15discretion, may establish various classes or types of registration
16for specific commercial medical cannabis-related activities, as set
17forth in this chapter.

18

begin insert26043.end insert  

(a) Each mandatory commercial registration
19application approved by the department pursuant to this chapter
20is separate and distinct. An applicant may apply for mandatory
21commercial registration in more than one class of specified medical
22cannabis activities.

23(b) A mandatory commercial registration application approved
24by the department pursuant to this chapter shall be valid for a
25period not to exceed one year from the date of approval unless
26revoked or suspended pursuant to this chapter or the rules or
27regulations adopted pursuant to this chapter.

28

begin insert26044.end insert  

(a) The department shall limit the number of
29registrations statewide for the cultivation, processing, extraction,
30packaging, and transportation of medical cannabis to a number
31no greater than what is necessary to meet statewide need. In
32determining the appropriate number of registrations, the
33department may take into account information obtained from
34sources that include, but need not be limited to, municipalities,
35patients, and registrants.

36(b) The department shall ensure that the number of registrations
37that it approves does not exceed the ability of the department to
38enforce the provisions of this chapter, particularly with respect to
39ensuring patient safety and preventing illegal diversion of
40cannabis.

P20   1(c) In establishing limits pursuant to this section, the department
2shall consider the following:

3(1) The purposes and intent of the Compassionate Use Act of
41996 to ensure an adequate supply of medical cannabis while
5endeavoring to prevent an oversupply of cannabis that may result
6in diversion.

7(2) The number of applicants for mandatory commercial
8registrations whose application demonstrates that they will be
9able to produce consistent products with strict quality controls,
10in full compliance with this chapter and with all applicable state
11and local regulations, and the amount of medical cannabis those
12applicants will be able to provide.

13

begin insert26045.end insert  

Every mandatory commercial registration is renewable
14unless the registration has been revoked if the renewal registration
15is made and the fee for it is paid. All registrations expire at 12
16midnight on the last day of the month posted on the registration.
17All registrations issued shall be renewed as follows:

18(a) On or before the first of the month preceding the month
19posted on the registration, the department shall mail to each
20registrant at his or her registered premises, or at any other mailing
21address that the registrant has designated, an application to renew
22the registration.

23(b) The application to renew the registration may be filed before
24the registration expires upon payment of the annual fee.

25(c) For 60 days after the registration expires, the registration
26may be renewed upon payment of the annual renewal fee plus a
27penalty fee that shall be equal to 50 percent of the annual fee.

28(d) Unless otherwise terminated, or unless renewed pursuant
29to subdivision (b) or (c), a registration that is in effect on the month
30posted on the registration continues in effect through 12 midnight
31of the 60th day following the month posted on the registration, at
32which time it is automatically canceled.

33(e) On or before the 10th day preceding the cancellation of a
34registration, the department shall mail a notice of cancellation to
35each registrant that has not either filed an application to renew
36its registration or notified the department of its intent not to do
37so. Failure to mail the renewal application in accordance with
38subdivision (a) or to mail the notice provided in this subdivision
39shall not continue the right to a registration.

P21   1(f) A registration that has been canceled pursuant to subdivision
2(d) may be reinstated during the 30 days immediately following
3cancellation upon payment by cashier’s check or money order of
4the annual renewal fee, plus a penalty fee that shall be equal to
5100 percent of the annual fee. A registration that has been canceled
6pursuant to subdivision (d) and that has not been reinstated within
730 days pursuant to this subdivision is automatically revoked on
8the 31st day after the registration has been canceled.

9(g) A renewal application shall not be deemed filed within the
10meaning of this section unless the document itself has been actually
11delivered to, and the required renewal fee has been paid at, any
12office of the department during office hours, or unless both the
13document and fee have been filed and remitted pursuant to Section
1411003 of the Government Code.

15

begin insert26046.end insert  

An application for mandatory commercial registration
16shall include, but shall not be limited to, all of the following:

17(a) For all applicants:

18(1) The legal name and proposed physical addresses of the
19mandatory commercial registrant.

20(2) The name, address, and date of birth of each principal officer
21and board member.

22(3) Operating and inventory control procedures to ensure
23security and prevent diversion.

24(4) Detailed operating procedures for the proposed facility,
25which shall include, but not be limited to, provisions for facility
26and operational security, prevention of diversion, employee
27screening, storage of medical cannabis, personnel policies, and
28recordkeeping procedures.

29(5) A list of all persons or entities having an ownership interest
30other than a security interest, lien, or encumbrance on any property
31that will be used by the applicant.

32(6) Evidence of the legal right to occupy and use an established
33location for the activities to be conducted if the desired registration
34is granted consistent with the provisions of this chapter and the
35regulations developed by the department.

36(7) Documentation that the applicant will be in compliance with
37all local ordinances and regulations.

38(8) Evidence that officers and owners of the applicant
39organization are citizens of the United States and residents of the
40State of California.

P22   1(b) In addition to the requirements of subdivision (a), for
2cultivation and processing applicants, detailed operating
3procedures for cultivation, extraction and infusion methods,
4transportation of products, inventory procedures, procedures for
5quality control, and onsite testing of product for potential
6contaminants.

7

begin insert26047.end insert  

Upon receipt of an application for a registration and
8the applicable fee, the department shall make a thorough
9investigation to determine whether the applicant and the premises
10for which a registration is applied qualify for the registration and
11whether the provisions of this chapter have been complied with,
12and shall investigate all matters connected therewith which may
13affect the public welfare and morals. The department shall deny
14an application for a registration if either the applicant or the
15premises for which a registration is applied do not qualify for a
16registration under this chapter. The department further shall deny
17an application for a registration if issuance of that registration
18would tend to create a law enforcement problem. The department
19may place reasonable conditions upon registrations if grounds
20exist for denial of the registration, and the department finds those
21grounds may be removed by the imposition of those conditions.

22

begin insert26048.end insert  

A physician shall not recommend medical cannabis to
23a patient while the physician is a mandatory commercial registrant,
24or an officer, director, employee, or financial beneficiary of a
25mandatory commercial registrant.

26

begin insert26049.end insert  

(a) The actions of a mandatory commercial registrant
27or provisional registrant, its employees, and its agents, permitted
28pursuant to a mandatory commercial registration or provisional
29registration issued by the department or otherwise permitted by
30this chapter, that are conducted in accordance to the requirements
31of this chapter and regulations adopted pursuant to the authority
32granted by this chapter, are not unlawful and shall not be an
33offense subject to arrest, prosecution, or other sanction under state
34or local law, or be subject to a civil fine or be a basis for seizure
35or forfeiture of assets under state or local law.

36(b) The actions of a person who, in good faith and upon
37appropriate investigation, allows his or her property to be used
38by a mandatory commercial registrant or provisional registrant,
39its employees, and its agents, as permitted pursuant to a mandatory
40commercial registration or provisional registration issued by the
P23   1department or otherwise permitted by this chapter, are not unlawful
2and shall not be an offense subject to arrest, prosecution, or other
3sanction under state or local law, or be subject to a civil fine or
4be a basis for seizure or forfeiture of assets under state or local
5law.

6

begin insert26050.end insert  

(a) A registrant shall not cultivate, process, store,
7manufacture, test, transport, or sell medical cannabis in the state
8unless accurate records are kept at the registered premises of the
9growing, processing, storing, manufacturing, testing, transporting,
10or selling by the registrant in the state. These records shall include
11all expenditures incurred by the registrant, provided that a
12registrant registered to act at more than one premises may keep
13all records at one of the registered premises. Required records
14shall be kept for a period of three years from the date of the
15transaction.

16(b) The department may make any examination of the books
17and records of any registrant and may visit and inspect the
18premises of any registrant that the department may deem necessary
19to perform its duties under this chapter.

20

begin insert26052.end insert  

(a) This chapter shall not apply to, and shall have no
21diminishing effect on, the rights and protections granted to a
22patient or a primary caregiver pursuant to the Compassionate Use
23Act of 1996.

24(b) (1) A patient who cultivates, possesses, stores, manufactures,
25or transports cannabis exclusively for his or her personal medical
26use and who does not sell or distribute cannabis is not considered
27a commercial registrant and is exempt from mandatory commercial
28registration.

29(2) A primary caregiver who cultivates, possesses, stores,
30manufactures, transports, or provides cannabis exclusively for the
31personal medical purposes of a specified qualified patient for
32 whom he or she is the primary caregiver within the meaning of
33Section 11362.7 of the Health and Safety Code and who does not
34sell or distribute cannabis except for compensation in full
35compliance with subdivision (c) of Section 11362.765 of the Health
36and Safety Code is not considered a commercial registrant and is
37exempt from mandatory commercial registration.

38

begin insert26054.end insert  

Beginning January 1, 2014, the department shall
39provide for provisional registrations as follows:

P24   1(a) The department shall request that every city or county,
2provide the department with a list of approved entities providing
3medical cannabis to qualified patients and caregivers within the
4city or county’s jurisdiction, the location at which the entity is
5operating, and the names of the persons who operate the entity. If
6the jurisdiction represents that the entity has been operating in
7compliance with local laws and regulations, the department shall
8issue a provisional registration to the entity until the time that the
9entity’s application for mandatory commercial registration has
10been approved or denied under this chapter, but no later than 90
11days after the department begins accepting applications for
12mandatory commercial registration.

13(b) The department shall issue a provisional registration to
14individuals and entities that the department determines were,
15during the six months prior to January 1, 2014, regularly
16cultivating or distributing medical cannabis collectively or
17cooperatively in full compliance with paragraphs A and B of
18Section IV of the Guidelines for Security and Non-Diversion of
19Marijuana Grown for Medical Use, issued by the Department of
20Justice in August 2008, to continue to do so until such time as the
21registrant’s application for mandatory commercial registration
22has been approved or denied under this chapter, but no later than
2390 days after the department begins accepting applications for
24mandatory commercial registration. In determining compliance,
25the department shall consider any complaints or actions made or
26brought by a city or county against the individual or entity. To
27 qualify, provisional registrants shall be required to disclose to the
28department the following information in writing on or before
29January 20, 2014, in order to obtain provisional registration:

30(1) The names, addresses, and dates of birth of each principal
31officer, owner, or board member.

32(2) The common street address and assessor’s parcel number
33of the property at which any cultivation activity was or is to be
34conducted.

35(3) For the six months prior to January 1, 2014, the quantity of
36cannabis cultivated at a location and the quantity expected to be
37cultivated from January 1, 2014, to June 30, 2014, inclusive. The
38registrant shall make its records of current activity and activity
39for the six months prior to January 1, 2014, available to the
40department upon request.

P25   1(c) The department shall charge an application fee of five
2thousand dollars ($5,000) for each provisional registration.

3

begin insert26056.end insert  

In addition to other regulations adopted by the
4department pertaining to mandatory commercial registrants and
5without limiting the authority of a city or a county pursuant to
6Section 26010 or subdivision (b) of Section 26060, the department
7shall adopt regulations regarding the minimum standards for the
8operation of dispensaries that establish all of the following:

9(a) Standards for labeling of products, including the name of
10the mandatory commercial registrant from which the product was
11obtained, and a requirement that dispensaries provide patients
12with detailed written information about the contents of the cannabis
13and medical cannabis products they obtain.

14(b) Requirements for inventory control and reporting that
15require all dispensaries to be able to demonstrate the present
16location, amounts, and descriptions of all medical cannabis
17products from the time of delivery to the dispensary until purchase
18by a qualified patient or primary caregiver.

19(c) The maximum number of dispensaries that may operate in
20a city or county or the unincorporated areas of a county based on
21population, taking into consideration the distances that patients
22in rural areas may need to travel in order to reach a dispensary
23and the availability of public transportation in both rural and
24urban areas.

25(d) Minimum educational and testing requirements for
26dispensary staff, including background checks, and a requirement
27that every dispensary maintain dedicated security staff both inside
28and outside the dispensary.

29(e) Maximum hours of operation for every dispensary.

30(f) Minimum standards governing signage and advertising for
31dispensaries.

32 

33Article begin insert4.end insert  Enforcement
34

 

35

begin insert26060.end insert  

(a) The department shall work in conjunction with law
36enforcement entities throughout the state for the purpose of
37implementing and enforcing the rules and regulations regarding
38commercial medical cannabis and taking appropriate action
39against businesses and individuals who fail to comply with the
40law.

P26   1(b) Nothing in this chapter shall prevent a city, county, or city
2and county from enforcing a zoning ordinance or law of general
3application.

4

begin insert26062.end insert  

Except for a person identified in Section 26052, a
5person shall not exercise the privilege or perform any act that a
6registrant may exercise or perform under the authority of a
7registration unless the person is acting pursuant to a registration,
8including a provisional registration, issued pursuant to this
9chapter.

10

begin insert26063.end insert  

(a) Commencing January 1, 2015, any product
11containing cannabis that is distributed, except in the case of a
12primary caregiver distributing to a qualified patient, or offered
13for sale shall comply with the testing and labeling requirements
14established through regulation by the department.

15(b) No person shall steal or fraudulently use a mandatory
16commercial registrant identification certificate or registration or
17other registrant’s identification card or registration issued by the
18department to acquire, cultivate, transport, produce, possess for
19sale, sell, or distribute cannabis.

20(c) No person shall counterfeit, tamper with, or fraudulently
21produce an identification card or registration status.

22(d) Any person who violates this section, or Section 26062, is
23guilty of a misdemeanor and shall be subject to the following
24penalties:

25(1) For the first offense, imprisonment in a county jail for no
26more than six months or a fine not to exceed one thousand dollars
27($1,000), or both.

28(2) For a second or subsequent offense, imprisonment in a
29county jail for no more than one year or a fine not to exceed one
30thousand dollars ($1,000), or both.

31(e) Any person who is charged, prosecuted, or subjected to a
32civil penalty under this chapter shall not also be charged or
33prosecuted pursuant to the Health and Safety Code for conduct
34arising from the same set of facts.

35

begin insert26064.end insert  

Any person operating an unregistered facility, building,
36structure, or location where cannabis is being commercially
37cultivated, manufactured, or possessed for sale in violation of this
38chapter may be subject to civil penalties of up to twenty-five
39thousand dollars ($25,000) for each violation, and the department
40may order the destruction of any cannabis associated with that
P27   1violation. Any civil fines collected pursuant to this section shall
2be deposited into the General Fund pursuant to Section 26028.

3

begin insert26066.end insert  

The director may bring an action to enjoin a violation
4or the threatened violation of any provision of this chapter,
5including, but not limited to, a registrant’s failure to correct
6objectionable conditions following notice or as a result of any rule
7promulgated pursuant to this chapter. The action shall be brought
8in the county in which the violation occurred or is threatened to
9occur. Any proceeding brought pursuant to this chapter shall
10conform to the requirements of Chapter 3 (commencing with
11Section 525) of Title 7 of Part 2 of the Code of Civil Procedure.

12

begin insert26068.end insert  

(a) A state or local law enforcement agency shall
13immediately notify the department of any arrests made for
14violations over which the department has jurisdiction which involve
15a registrant or registered premises. Notice shall be given within
1610 days of the arrest. The department shall promptly cause an
17investigation to be made as to whether grounds exist for suspension
18or revocation of a registration of the registrant.

19(b) The department shall not open or add an entry to a file or
20initiate an investigation of a registrant or suspend or revoke a
21registration in either of the following circumstances:

22(1) Solely because the registrant or an agent acting on behalf
23of the registrant has reported to a state or local law enforcement
24agency that suspected controlled substance violations have taken
25place on the registered premises.

26(2) Solely based on activities constituting violations described
27in a report made under paragraph (1), unless the violations
28reported occurred with the actual knowledge and willful consent
29of the registrant.

30

begin insert26070.end insert  

Nothing in this chapter shall be construed to limit a
31law enforcement agency’s ability to investigate unlawful activity
32in relation to a mandatory commercial registrant.

33

begin insert26072.end insert  

The department shall create and maintain a searchable
34database that will allow state and local law enforcement to verify
35a mandatory commercial registration.

36 

37Article begin insert5.end insert  Appeals and Judicial Review
38

 

39

begin insert26080.end insert  

There is in the state government, in the Business,
40Consumer Services, and Housing Agency, a Medical Cannabis
P28   1Appeals Board. The Medical Cannabis Appeals Board, also
2referred to as the board in this chapter, shall exercise the powers
3as are vested in it by this chapter and may adopt such rules
4pertaining to appeals and other matters within its jurisdiction as
5may be required. The board and its duly authorized representatives
6in the performance of its duties under this chapter shall have the
7powers of a head of a department as set forth in Article 2
8(commencing with Section 11180) of Chapter 2 of Part 1 of
9Division 3 of Title 2 of the Government Code.

10

begin insert26081.end insert  

(a) Any person aggrieved by a final decision of the
11department issuing, denying, suspending, revoking, or ordering
12any penalty assessment against a registration for the cultivation,
13manufacture, testing, transportation, storage, distribution, sale,
14purchase, or possession of medical cannabis may appeal to the
15board, which shall review the decision subject to the limitations
16that may be imposed by the Legislature.

17(b) No decision of the department shall become effective during
18the period in which an appeal may be filed, and the filing of an
19appeal shall stay the effect of the decision until such time as a final
20order is made by the board.

21

begin insert26083.end insert  

The review by the board of a decision of the department
22shall be limited to whether:

23(a) The department has proceeded without, or in excess of, its
24jurisdiction.

25(b) The department has proceeded in the manner required by
26law.

27(c) The decision is supported by the findings.

28(d) The findings are supported by substantial evidence in the
29light of the whole record.

30(e) There is relevant evidence that, in the exercise of reasonable
31diligence, could not have been produced or which was improperly
32excluded at the hearing before the department.

33

begin insert26085.end insert  

(a) The board shall determine the appeal upon the
34record of the department and upon any briefs that may be filed by
35the parties. If any party to the appeal requests to appear before
36the board, the board may fix a time and place for argument. The
37board shall not receive any evidence other than that contained in
38the record of the proceedings of the department.

P29   1(b) Chapter 4.5 (commencing with Section 11400) of Part 1 of
2Division 3 of Title 2 of the Government Code does not apply to
3the determination.

4

begin insert26087.end insert  

(a) Except as provided in subdivision (b), the board
5shall enter an order either affirming or reversing the decision of
6the department.

7(b) If the board finds that there is relevant evidence that in the
8exercise of reasonable diligence could not have been produced or
9which was improperly excluded at the hearing before the
10department, the board may enter an order remanding the matter
11to the department for reconsideration in light of the relevant
12evidence.

13(c) When the board reverses a decision of the department, the
14board may direct reconsideration in light of its order and may
15direct the department to take further action as is specifically
16enjoined upon it by law, but shall not limit or control in any way
17the discretion vested by law in the department.

18

begin insert26088.end insert  

Each order of the board on appeal from a decision of
19the department shall be in writing and shall be filed by delivering
20copies to the parties personally or in the manner prescribed by
21Section 1013 of the Code of Civil Procedure. Each order shall
22become final upon being filed as provided in this section, and there
23shall be no reconsideration or rehearing by the board.

24

begin insert26090.end insert  

(a) Any person affected by a final order of the board,
25including the department, may apply to the Supreme Court or to
26the court of appeal for the appellate district in which the
27proceeding arose, for a writ of review of the final order. The
28application for writ of review shall be made within 30 days after
29filing of the final order of the board.

30(b) No court of this state, except the Supreme Court and the
31courts of appeal to the extent specified in this article, shall have
32jurisdiction to review, affirm, reverse, correct, or annul any order,
33rule, or decision of the department or to suspend, stay, or delay
34the operation or execution of it, or to restrain, enjoin, or interfere
35with the department in the performance of its duties, but a writ of
36mandate shall lie from the Supreme Court or the courts of appeal
37in any proper case.

38(c) No decision of the department which has been appealed to
39the board and no final order of the board shall become effective
P30   1during the period in which application may be made for a writ of
2review, as provided within this section.

3(d) The filing of a petition for, or the pendency of, a writ of
4review shall not of itself stay or suspend the operation of any order,
5rule, or decision of the department, but the court before which the
6petition is filed may stay or suspend, in whole or in part, the
7operation of the order, rule, or decision of the department subject
8to review, upon the terms and conditions which it by order directs.

9

begin insert26091.end insert  

The writ of review shall be made returnable at a time
10and place then or thereafter specified by court order and shall
11direct the board to certify the whole record of the department in
12the case to the court within the time specified. No new or additional
13evidence shall be introduced in the court, but the cause shall be
14heard on the whole record of the department as certified to by the
15board.

16

begin insert26092.end insert  

(a) The review by the court shall not extend further
17than to determine, based on the whole record of the department
18as certified by the board, whether:

19(1) The department has proceeded without or in excess of its
20jurisdiction.

21(2) The department has proceeded in the manner required by
22law.

23(3) The decision of the department is supported by the findings.

24(4) The findings in the department’s decision are supported by
25substantial evidence in the light of the whole record.

26(5) There is relevant evidence which, in the exercise of
27reasonable diligence, could not have been produced or which was
28improperly excluded at the hearing before the department.

29(b) Nothing in this article shall permit the court to hold a trial
30de novo, to take evidence, or to exercise its independent judgment
31on the evidence.

32

begin insert26094.end insert  

The findings and conclusions of the department on
33questions of fact are conclusive and final and are not subject to
34review. The questions of fact shall include ultimate facts and the
35findings and conclusions of the department. The board, the
36department, and each party to the action or proceeding before the
37board shall have the right to appear in the review proceeding.
38Following the hearing, the court shall enter judgment either
39affirming or reversing the decision of the department or the court
P31   1may remand the case for further proceedings before or
2reconsideration by the department.

3

begin insert26096.end insert  

The provisions of the Code of Civil Procedure relating
4to writs of review shall, insofar as applicable, apply to proceedings
5in the courts as provided by this article. A copy of every pleading
6filed pursuant to this article shall be served on the board, the
7department, and on each party who entered an appearance before
8the board.

9

begin insert26097.end insert  

Whenever any matter is pending before the board or a
10court of record involving a dispute between the department and a
11registrant, and the parties to the dispute agree upon a settlement
12or adjustment of it, the tribunal shall, upon the stipulation by the
13parties that an agreement has been reached, remand the matter
14to the department.

15 

16Article begin insert6.end insert  Transportation of Medical Cannabis
17

 

18

begin insert26100.end insert  

To claim the protections of this chapter and to maintain
19a valid mandatory commercial registration, a registrant shall ship
20medical cannabis products only in response to a request for a
21specific quantity and variety from a registered dispensary or
22mandatory commercial registrant.

23

begin insert26102.end insert  

(a) Prior to transporting any medical cannabis product,
24a mandatory commercial registrant shall do the following:

25(1) Complete a shipping manifest using a form prescribed by
26the department.

27(2) Securely transmit a copy of the manifest to the mandatory
28commercial registrant that will receive the medical cannabis
29product and to the department prior to transport.

30(b) The mandatory commercial registrant shipping and the
31registrant receiving shall maintain each shipping manifest and
32make it available to the department upon request.

33

begin insert26104.end insert  

(a) Transported medical cannabis products shall:

34(1) Be transported only in a locked, safe and secure storage
35compartment that is securely affixed to the interior of the
36transporting vehicle.

37(2) Not be visible from outside the vehicle.

38(b) Any vehicle transporting medical cannabis products shall
39travel directly from the facilities of mandatory commercial
40registrant to the registrant authorized to receive the shipment.

P32   1

begin insert26106.end insert  

(a) A mandatory commercial registrant shall staff all
2transport vehicles with a minimum of two employees. At least one
3delivery team member shall remain with the vehicle at all times
4that the vehicle contains medical cannabis.

5(b) Each delivery team member shall have access to a secure
6form of communication by which each member can communicate
7with personnel at the mandatory commercial registrant facility at
8all times that the vehicle contains medical cannabis.

9(c) Each delivery team member shall possess documentation of
10mandatory commercial registration and a government-issued
11identification card at all times when transporting or delivering
12medical cannabis and shall produce it to any representative of the
13department or law enforcement official upon request.

end insert
14begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 11362.7 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
15amended to read:end insert

16

11362.7.  

For purposes of this article, the following definitions
17shall apply:

18(a) “Attending physician” means an individual who possesses
19a license in good standing to practice medicine or osteopathy issued
20by the Medical Board of California or the Osteopathic Medical
21Board of California and who has taken responsibility for an aspect
22of the medical care, treatment, diagnosis, counseling, or referral
23of a patient and who hasbegin delete conducted a medical examination ofend delete
24begin insert performed an appropriate prior examination, foundend insert thatbegin delete patient
25before recording inend delete
thebegin delete patient’s medical record the physician’s
26assessment of whether theend delete
patient has abegin delete serious medical condition
27and whether theend delete
begin insert medical indication, and recommends marijuana
28forend insert
medicalbegin delete use of marijuana is appropriate.end deletebegin insert purposes to treat a
29serious medical condition.end insert

30(b) “Department” means the State Department ofbegin delete Health
31Services.end delete
begin insert Public Health.end insert

32(c) “Person with an identification card” means an individual
33who is a qualified patient who has applied for and received a valid
34identification card pursuant to this article.

35(d) “Primary caregiver” means the individual, designated by a
36qualified patient or by a person with an identification card, who
37has consistently assumed responsibility for the housing, health, or
38safety of that patient or person, and may include any of the
39following:

P33   1(1) In any case in which a qualified patient or person with an
2identification card receives medical care or supportive services,
3or both, from a clinic licensed pursuant to Chapter 1 (commencing
4with Section 1200) of Division 2, a health care facility licensed
5pursuant to Chapter 2 (commencing with Section 1250) of Division
62, a residential care facility for persons with chronic life-threatening
7illness licensed pursuant to Chapter 3.01 (commencing with Section
81568.01) of Division 2, a residential care facility for the elderly
9licensed pursuant to Chapter 3.2 (commencing with Section 1569)
10of Division 2, a hospice, or a home health agency licensed pursuant
11to Chapter 8 (commencing with Section 1725) of Division 2, the
12owner or operator, or no more than three employees who are
13designated by the owner or operator, of the clinic, facility, hospice,
14or home health agency, if designated as a primary caregiver by
15that qualified patient or person with an identification card.

16(2) An individual who has been designated as a primary
17caregiver by more than one qualified patient or person with an
18identification card, if every qualified patient or person with an
19identification card who has designated that individual as a primary
20caregiver resides in the same city or county as the primary
21caregiver.

22(3) An individual who has been designated as a primary
23caregiver by a qualified patient or person with an identification
24card who resides in a city or county other than that of the primary
25caregiver, if the individual has not been designated as a primary
26caregiver by any other qualified patient or person with an
27identification card.

28(e) A primary caregiver shall be at least 18 years of age, unless
29the primary caregiver is the parent of a minor child who is a
30qualified patient or a person with an identification card or the
31primary caregiver is a person otherwise entitled to make medical
32decisions under state law pursuant to Sections 6922, 7002, 7050,
33or 7120 of the Family Code.

34(f) “Qualified patient” means a person who is entitled to the
35protections of Section 11362.5, but who does not have an
36identification card issued pursuant to this article.

37(g) “Identification card” means a document issued by the State
38Department ofbegin insert Publicend insert Healthbegin delete Servicesend delete that document identifies a
39person authorized to engage in the medical use of marijuana and
40the person’s designated primary caregiver, if any.

P34   1(h) “Serious medical condition” means all of the following
2medical conditions:

3(1) Acquired immune deficiency syndrome (AIDS).

4(2) Anorexia.

5(3) Arthritis.

6(4) Cachexia.

7(5) Cancer.

8(6) Chronic pain.

9(7) Glaucoma.

10(8) Migraine.

11(9) Persistent muscle spasms, including, but not limited to,
12spasms associated with multiple sclerosis.

13(10) Seizures, including, but not limited to, seizures associated
14with epilepsy.

15(11) Severe nausea.

16(12) Any other chronic or persistent medical symptom that
17either:

18(A) Substantially limits the ability of the person to conduct one
19or more major life activities as defined in the Americans with
20Disabilities Act of 1990 (Public Law 101-336).

21(B) If not alleviated, may cause serious harm to the patient’s
22safety or physical or mental health.

23(i) “Written documentation” means accurate reproductions of
24those portions of a patient’s medical records that have been created
25by the attending physician, that contain the information required
26by paragraph (2) of subdivision (a) of Section 11362.715, and that
27the patient may submit to a county health department or the
28county’s designee as part of an application for an identification
29card.

30begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 11362.775 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
31amended to read:end insert

32

11362.775.  

begin insert(a)end insertbegin insertend insert Qualified patients, persons with valid
33identification cards, and the designated primary caregivers of
34qualified patients and persons with identification cards, who
35associate within the State of California in order collectively or
36cooperatively to cultivate marijuana for medical purposes, shall
37not solely on the basis of that fact be subject to state criminal
38sanctions under Section 11357, 11358, 11359, 11360, 11366,
3911366.5, or 11570.

begin insert

P35   1(b) This section shall remain in effect only until 90 days after
2the Department of Alcoholic Beverage Control posts a notice on
3its Internet Web site that it began accepting applications for
4mandatory commercial registration pursuant to Article 3
5(commencing with Section 26040) of Chapter 18 of Division 9 of
6the Business and Professions Code, and as of that date is repealed.

end insert
7begin insert

begin insertSEC. 9.end insert  

end insert
begin insert

The provisions of this act are severable. If any
8provision of this act or its application is held invalid, that invalidity
9shall not affect other provisions or applications that can be given
10effect without the invalid provision or application.

end insert
11begin insert

begin insertSEC. 10.end insert  

end insert
begin insert

The Legislature finds and declares that Section 3 of
12this act imposes a limitation on the public’s right of access to
13documents in the possession of a public agency within the meaning
14of Section 3 of Article I of the California Constitution. Pursuant
15to that constitutional provision, the Legislature makes the following
16finding to demonstrate the interest protected by this limitation and
17the need for protecting that interest:

end insert
begin insert

18It is necessary to maintain the confidentiality of patient and
19physician information provided to the Division of Medical
20Cannabis Regulation and Enforcement in order to protect the
21private medical information of patients who use medical cannabis
22and to preserve the essential confidentiality of the physician and
23patient relationship.

end insert
24begin insert

begin insertSEC. 11.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant
25to Section 6 of Article XIII B of the California Constitution because
26the only costs that may be incurred by a local agency or school
27district will be incurred because this act creates a new crime or
28infraction, eliminates a crime or infraction, or changes the penalty
29for a crime or infraction, within the meaning of Section 17556 of
30the Government Code, or changes the definition of a crime within
31the meaning of Section 6 of Article XIII B of the California
32Constitution.

end insert
begin delete
33

SECTION 1.  

The Legislature finds and declares the following:

34(a) The goal of a law enforcement criminal investigation is to
35find and apprehend the person or persons responsible for
36committing a crime.

37(b) Eyewitness identification procedure studies indicate that the
38criminal justice system can significantly decrease the rate of
39erroneous eyewitness identifications by implementing changes to
40identification procedures.

P36   1(c) A decrease in the number of erroneous eyewitness
2identifications will increase public trust in the criminal justice
3system, which, in turn, will increase the ability of law enforcement
4and prosecutors to convict the guilty and protect our communities.

5(d) New policies and procedures, such as those recommended
6by the National Institute of Justice, are readily available and have
7proven effective in other jurisdictions. States, including New Jersey
8and Oregon, have recognized and adopted the importance of tested
9eyewitness identification procedures that are shown to increase
10reliability. Several local jurisdictions in California have also
11adopted tested eyewitness identification procedures with great
12success and significant cost savings.

13

SEC. 2.  

Section 806 is added to the Evidence Code, to read:

14

806.  

Expert testimony may be admitted regarding factors that
15affect the reliability of eyewitness identification, including the
16identification procedure, if the proponent of the evidence
17establishes relevancy and proper qualifications of the witness.

18

SEC. 3.  

Section 686.3 is added to the Penal Code, to read:

19

686.3.  

(a) Any local law enforcement agency, including, but
20not limited to, police departments, sheriffs, and prosecutors, may
21adopt regulations for conducting photo and live lineups with
22eyewitnesses. In adopting the regulations, those agencies are
23encouraged to consider all of the following procedures:

24(1) Prior to conducting the identification procedure, and as close
25in time to the incident as possible, have the eyewitness complete
26a standardized form describing the perpetrator of the offense.

27(2) If practicable, have the investigator conducting the
28identification procedure be a person who is not aware of which
29person in the identification procedure is suspected as the perpetrator
30of the offense.

31(3) Present photos used in an identification procedure
32sequentially, and not simultaneously.

33(4) Prior to any identification procedure, instruct an eyewitness
34of all the following:

35(A) The perpetrator may not be among the persons in the
36identification procedure.

37(B) The eyewitness should not feel compelled to make an
38identification.

39(C) An identification or failure to make an identification will
40not end the investigation.

P37   1(5) If the identification procedure is being done sequentially,
2instruct an eyewitness of all of the following prior to the
3identification procedure:

4(A) Each photograph or person shall be viewed one at a time.

5(B) The photographs or persons shall be displayed in random
6order.

7(C) The eyewitness should take as much time as needed in
8making a decision about each photograph or person before moving
9to the next one.

10(D) All photographs or persons will be shown to the eyewitness,
11even if an identification is made before all photographs or persons
12have been viewed.

13(6) Compose an identification procedure so that the fillers
14generally fit the description of the person suspected as the
15perpetrator, and in the case of a photo lineup, the photograph of
16the person suspected as the perpetrator resemble his or her
17appearance at the time of the offense and does not unduly stand
18out.

19(7) If the eyewitness has previously viewed an identification
20procedure in connection with the identification of another person
21suspected of involvement in the offense, have the fillers in the
22lineup in which the person suspected as the perpetrator participates
23be different from the fillers used in any prior lineups.

24(8) In a live lineup, have any identification actions, such as
25speaking or making gestures or other movements, be performed
26by all lineup participants.

27(9) All live lineup participants shall be out of the view of the
28eyewitness prior to the beginning of the identification procedure.

29(10) Have only one suspected perpetrator included in any
30identification procedure.

31(11) Have all witnesses separated when viewing an identification
32procedure.

33(12) If the eyewitness identifies a person he or she believes to
34be the perpetrator, then have all of the following apply:

35(A) The investigator shall immediately inquire as to the
36eyewitness’s confidence level in the accuracy of the identification.

37(B) No information concerning the identified person shall be
38given to the eyewitness prior to obtaining the eyewitness’s
39statement of confidence level.

P38   1(13) Have a written record of the identification procedure be
2made that includes, at a minimum, all of the following:

3(A) All identification and nonidentification results obtained
4during the identification procedure and signed by the eyewitness.

5(B) A statement of the eyewitness’ own words regarding how
6certain he or she is regarding the accuracy of his or her
7identification and signed by him or her.

8(C) The names of all persons present at the identification
9procedure.

10(D) The date, time, and location of the identification procedure.

11(E) If the identification procedure was conducted sequentially,
12the order in which the photographs or persons were displayed to
13the eyewitness.

14(F) Color copies of all photographs used in a photo lineup.

15(G) Identification information and the sources of all photographs
16used in a photo lineup.

17(H) Identification information for all individuals used in a live
18lineup and a video recording of the lineup.

19(b) For purposes of this section, the following terms have the
20following meanings:

21(1) “Eyewitness” means a person whose identification of another
22person may be relevant in a criminal investigation.

23(2) “Filler” means either a person or a photograph of a person
24who is not suspected of an offense and is included in an
25identification procedure.

26(3) “Identification procedure” means either a photo lineup or a
27live lineup.

28(4) “Investigator” means the person conducting the live or photo
29lineup.

30(5) “Live lineup” means a procedure in which a group of
31persons, including the person suspected as the perpetrator of an
32offense and other persons not suspected of the offense, is displayed
33to an eyewitness for the purpose of determining whether the
34eyewitness is able to identify the suspect as the perpetrator.

35(6) “Photo lineup” means a procedure in which an array of
36photographs, including a photograph of the person suspected as
37the perpetrator of an offense and additional photographs of other
38persons not suspected of the offense, is displayed to an eyewitness
39for the purpose of determining whether the eyewitness is able to
40identify the suspect as the perpetrator.

P39   1

SEC. 4.  

Section 1127i is added to the Penal Code, to read:

2

1127i.  

(a) In any criminal trial or proceeding in which a
3witness testifies to an identification made before trial, either by
4viewing photographs or in-person lineups, and where the local law
5enforcement agency in that jurisdiction has adopted the
6recommended live and photo eyewitness identification procedures
7listed in Section 686.3, the court shall instruct the jury as follows
8or admonish the jury with a substantially similar instruction:

9(1) The procedures listed in Section 686.3 are designed to
10decrease the likelihood of misidentification when the police
11conduct an identification procedure, such as a lineup. As jurors,
12you may consider evidence that police officers did or did not follow
13those procedures when you decide whether a witness in this case
14was correct or mistaken in identifying the defendant as the
15perpetrator of the crime.

16(2) Use of these procedures alone does not mean that the witness
17is correct or is credible, but only that police followed procedures
18that are designed to decrease the likelihood that the witness will
19make a mistake during the lineup or other identification procedure.

20(3) If police officers did not follow the procedures recommended
21in Section 686.3, consider the eyewitness identification with
22caution and close scrutiny. This does not mean that you may
23arbitrarily disregard his or her testimony, but you should give it
24the weight you think it deserves in the light of all the evidence in
25the case.

26(b) In any criminal proceeding or trial in which a witness
27testifies to an identification made before trial in a jurisdiction that
28has not adopted the recommended live and photo eyewitness
29identification procedures listed in Section 686.3, the court may,
30but is not required to, provide the jury with the instruction in
31subdivision (a) or admonish the jury with a substantially similar
32instruction.

33(c) In addition to the jury instruction required under subdivision
34(a) and authorized under subdivision (b), the court may, but is not
35required to, provide the jury with any additional instructions the
36court may deem necessary.

end delete


O

    96