SB 1262, as amended, Correa. Medical marijuana: regulation of physicians, dispensaries, and cultivation sites.
(1) Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 6, 1996, statewide general election, authorizes the use of marijuana for medical purposes. Existing law enacted by the Legislature requires the establishment of a program for the issuance of identification cards to qualified patients so that they may lawfully use marijuana for medical purposes, and requires the establishment of guidelines for the lawful cultivation of marijuana grown for medical use.
This bill would require the State Department of Public Health to license dispensing facilities and cultivation sites that provide, process, and grow marijuana for medical use, as specified, and would make these licenses subject to the restrictions of the local jurisdiction in which the facility operates or proposes to operate. The bill would require the department to establish standards for quality assurance testing of medical marijuana and would prohibit the use of nonorganic pesticides in any marijuana cultivation site. The bill would require licensed dispensing facilities and licensed cultivation sites to implement sufficient security measures to both deter and prevent unauthorized entrance into areas containing marijuana and theft of marijuana at those facilities, including establishing limited access areas accessible only to authorized facility personnel, and would require these facilities to notify appropriate law enforcement authorities within 24 hours after discovering specified breaches in security. The bill would make enforcement of these provisions the responsibility of the county health departments, with oversight by the department. Violation of these provisions would be punishable by a civil fine of up to $35,000 for each individual violation. By expanding the duties of local health officers, this bill would impose a state-mandated local program.
(2) Existing law, the Medical Practice Act, provides for licensure and regulation of physicians and surgeons by the Medical Board of California.
This bill would establish requirements for a physician and surgeon to recommend
medical marijuana, including prescribed procedural and recordkeeping requirements, and would require a recommendation for medical marijuana for a
begin delete minorend delete to include a specific justification for the recommendation and why the benefit of use is more important than the possible neurological damage that could be caused by the begin delete minorend delete using marijuana and to be approved by a board certified pediatrician. begin delete The bill would require a physician and surgeon that recommends medical marijuana to report to the board the number of recommendations issued, with supporting documentation on patient medical need.end delete
This bill would require the board to audit a physician and surgeon who recommends medical marijuana more than 100 times in a year to ensure compliance with existing law and would require the board to establish a certification process for physicians who wish to issue medical marijuana recommendations, including a mandatory training in identifying signs of addiction and ongoing substance abuse.end delete
Violation of these provisions would be punishable by a civil fine not to exceed $5,000.
(3) 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.end delete
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.end delete
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
The Legislature finds and declares all of the
3(a) The California Constitution grants cities and counties the
4authority to make and enforce, within their borders, “all local
5police, sanitary, and other ordinances and regulations not in conflict
P4 1with the general laws.” This inherent local police power includes
2broad authority to determine, for purposes of public health, safety,
3and welfare, the appropriate uses of land within the local
4jurisdiction’s borders. The police power, therefore, allows each
5city and county to determine whether or not a medical marijuana
6dispensary or other facility that makes medical marijuana available
7may operate within its borders. This authority has been upheld by
8City of Riverside v. Inland Empire Patients Health & Wellness,
9Inc. (2013) 56 Cal.4th 729 and County of Los Angeles v. Hill
10(2011) 192 Cal.App.4th 861.
11(b) If, pursuant to this authority, a city or county determines
12that a dispensary or other facility that makes medical marijuana
13available may operate within its borders, then there is a need for
14the state to license these dispensaries and other facilities for the
15purpose of adopting and enforcing protocols for training and
16certification of physicians who recommend the use of medical
17marijuana and for agricultural cultivation practices. This licensing
18requirement is not intended in any way nor shall it be construed
19to preempt local ordinances regarding the sale and use of medical
20marijuana, including, but not limited to, security, signage, lighting,
22(c) Given that the current system of all-cash transactions within
23the medical marijuana industry is unsustainable in the long term,
24there is a need to provide a monetary structure, as an alternative
25to the federal banking system, for the operation, regulation, and
26taxation of medical marijuana dispensaries.
32 27(d)end delete
28 All of the following elements are necessary to uphold
29important state goals:
30(1) Strict provisions to prevent the potential diversion of
31marijuana for recreational use.
32(2) Audits to accurately track the volume of both
33movement and sales.
34(3) An effective means of restricting access to medical marijuana
begin delete minors,end delete begin delete given the medical studies .
36documenting marijuana’s harmful and permanent effects on the
37brain development of youthend delete
38(4) Stricter provisions relating to physicians and their
39recommendation procedures in order to address widespread
40problems of questionable medical marijuana recommendations by
P5 1physicians without a bona-fide doctor-patient relationship with
2the person to whom they are issuing the recommendation.
9 3(e)end delete
4 Nothing in this act shall be construed to promote or facilitate
5the nonmedical, recreational possession, sale, or use of marijuana.
Article 25 (commencing with Section 2525) is added
7to Chapter 5 of Division 2 of the Business and Professions Code,
(a) Prior to recommending marijuana to a patient
13pursuant to Article 2.5 (commencing with Section 11362.7) of
14Chapter 6 of Division 10 of the Health and Safety Code, a
15physician and surgeon shall meet all of the following requirements:
16(1) Have a
begin delete bona fideend delete doctor-patient begin delete relationship, with medical .
17marijuana recommendations to be made by a patient’s primary
18care physician or by a physician and surgeon to whom the patient
19is referred by their primary care physicianend delete
20(2) Conduct an
begin delete in-personend delete examination to establish begin delete the patient’s need for medical marijuanaend delete.
23(3) Consult with the patient as necessary and periodically review
24the treatment’s efficacy.
25(b) A physician and surgeon that recommends medical marijuana
26shall do all of the following:
begin deleteAddress, in the recommendation, the quantity of use and a discussion of side effects.
28method of delivery, including end delete
begin delete If the recommended method of delivery is smoking, the
30recommendation shall state the reasons for selecting this method
31of delivery in the context of health issues created by smoking.end delete
32(2) Address, in the recommendation, what kind of marijuana to
33obtain, including high tetrahydrocannabinol (THC) levels, low
34THC levels, high cannabidiol (CBD) levels, low CBD levels, and
35explain the reason for recommending the particular strain. Under
36no circumstances shall a physician and surgeon recommend butane
38(3) Maintain a system of recordkeeping that supports the
39decision to recommend the use of medical marijuana for individual
P6 1(c) A recommendation for medical marijuana provided to a
begin delete minorend delete shall begin delete include a specific be approved by a board certified pediatrician. A
3justification for the recommendation and why the benefit of use
4is more important than the possible neurological damage that could
5be caused by the minor using marijuana. A recommendation for
6a minor shallend delete
7recommendation for a
begin delete minorend delete shall
8be for high CBD marijuana and all recommendations for
begin delete minors be for nonsmoking
(a) A physician and surgeon who recommends medical
12marijuana shall report to the California Medical Board the number
13of recommendations issued, with supporting documentation on
14patient medical need. The board shall forward these reports to the
15State Department of Public Health.
16(b) A physician and surgeon who makes more than 100
17recommendations in a calendar year shall be audited by the
18California Medical Board to determine compliance with Article
192.5 (commencing with Section 11362.7) of Chapter 6 of Division
2010 of the Health and Safety Code.
The California Medical Board shall establish a
22certification process for physicians who wish to issue medical
23marijuana recommendations, including a mandatory training in
24identifying signs of addiction and ongoing substance abuse.
In addition to all other remedies available pursuant
2to this chapter, violation of any provision of this article shall be
3punishable by a civil fine of up to five thousand dollars ($5,000).
Article 7 (commencing with Section 111657) is added
10to Chapter 6 of Part 5 of Division 104 of the Health and Safety
11Code, to read:
For purposes of this article, the following definitions
17(a) “Department” means the State Department of Public Health.
18(b) “Licensed cultivation site” means a facility that grows or
19grows and processes marijuana for medical use and that is licensed
20pursuant to Section 111657.1.
21(c) “Licensed dispensing facility” means a dispensary, mobile
22dispensary, marijuana processing facility, or other facility that
23provides marijuana for medical use that is licensed pursuant to
(a) Except as provided in Section 11362.5 of, and
26Article 2.5 (commencing with Section 11362.7) of Chapter 6 of
27Division 10 of, the Health and Safety Code, a person shall not sell
28or provide marijuana other than at a licensed dispensing facility.
29(b) Except as provided in Section 11362.5 of, and Article 2.5
30(commencing with Section 11362.7) of Chapter 6 of Division 10
31of, the Health and Safety Code, a person shall not grow or process
32marijuana other than at a licensed cultivation site.
33(c) The department shall require, prior to issuing a license to a
34dispensing facility or a cultivation site, all of the following:
35(1) The name of the owner or owners of the proposed facility.
36(2) The address and telephone number of the proposed facility.
37(3) A description of the scope of business of the proposed
39(4) A certified copy of the local jurisdiction’s approval to operate
40within its borders.
P8 1(5) A completed application, as required by the department.
2(6) Payment of a fee, in an amount to be determined by the
3department not to exceed the amount necessary, but that is
4sufficient to cover, the actual costs of the administration of this
6(7) Any other information as required by the department.
The department shall, after consulting with outside
8entities as needed, establish standards for quality assurance testing
9of medical marijuana, to ensure protection against microbiological
10contaminants. Nonorganic pesticides shall not be used in any
11marijuana cultivation site, irrespective of size or location.
(a) A licensed dispensing facility shall not acquire,
13possess, cultivate, deliver, transfer, transport, or dispense marijuana
14for any purpose other than those authorized by Article 2.5
15(commencing with Section 11362.7) of Chapter 6 of Division 10.
16(b) A licensed dispensing facility shall not acquire marijuana
17plants or products except through the cultivation of marijuana by
18that facility, if the facility is a licensed cultivation site, or another
19licensed cultivation site.
(a) A facility licensed pursuant to this article shall
9implement sufficient security measures to both deter and prevent
10unauthorized entrance into areas containing marijuana and theft
11of marijuana at those facilities. These security measures shall
12include, but not be limited to, all of the following:
13(1) Allow only registered qualifying patients, personal
14caregivers, and facility agents access to the facility.
15(2) Prevent individuals
from remaining on the premises of the
16facility if they are not engaging in activity expressly related to the
17operations of the facility.
18(3) Establish limited access areas accessible only to authorized
20(4) Store all finished marijuana in a secure, locked safe or vault
21and in a manner as to prevent diversion, theft, and loss.
22(b) A facility licensed pursuant to this article shall notify
23appropriate law enforcement authorities within 24 hours after
24discovering any of the following:
25(1) Discrepancies identified during inventory.
26(2) Diversion, theft, loss, or any criminal activity
27facility or a facility agent.
28(3) The loss or unauthorized alteration of records related to
29marijuana, registered qualifying patients, personal caregivers, or
31(4) Any other breach of security.
32(c) A licensed cultivation site shall weigh, inventory, and
33account for on video, all medical marijuana to be transported prior
34to its leaving its origination location. Within eight hours after
35arrival at the destination, the licensed dispensing facility shall
36re-weigh, re-inventory, and account for on video, all transported
(a) Enforcement of this article shall be the
3responsibility of the county health departments, with oversight by
5(b) An enforcement officer may enter a facility licensed pursuant
6to this article during the facility’s hours of operation and other
7reasonable times to do either of the following:
8(1) Conduct inspections, issue citations, and secure samples,
9photographs, or other evidence from the facility, or a facility
10suspected of being a dispensing facility or cultivation site.
11(2) Secure as evidence documents, or copies of documents,
12including inventories required pursuant to subdivision (c) of
begin delete 111657.4end delete, or any record, file, paper, process,
14invoice, video, or receipt for the purpose of determining
15compliance with this chapter.
16(c) A written report shall be made and a copy shall be supplied
17or mailed to the owner of the facility at the completion of an
18inspection or investigation.
19(d) Upon request by the department, local governments shall
20provide the department with reports on the number and types of
21facilities operating within their jurisdiction.
In addition to the provisions of this article, a license
24granted pursuant to this article shall be subject to the restrictions
25of the local jurisdiction in which the facility operates or proposes
26to operate. Even if a license has been granted pursuant to this
27article, a facility shall not operate in a local jurisdiction that
28prohibits the establishment of that type of business.
Violation of this provision shall be punishable by a
31civil fine of up to thirty-five thousand dollars ($35,000) for each
If the Commission on State Mandates determines that
2this act contains costs mandated by the state, reimbursement to
3local agencies and school districts for those costs shall be made
4pursuant to Part 7 (commencing with Section 17500) of Division
54 of Title 2 of the Government Code.