as amended, Correa. Medical marijuana: regulation of physicians, dispensaries,
begin delete andend delete cultivation begin delete sites.end delete
(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. Existing law provides for the licensure of various professions
begin delete, including locksmiths and professional fiduciaries,end delete by the Department of Consumer Affairs.
This bill would require the Department of Consumer Affairs to license dispensing facilities
begin delete andend delete cultivation sites that provide, process, and grow marijuana for medical use, as specified, including requiring a background check for license applicants begin delete, andend delete 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 begin delete licensed dispensing facilities and licensed cultivation sitesend delete to implement sufficient security measures to both deter and prevent unauthorized entrance into areas containing marijuana and theft of marijuana at begin delete thoseend delete facilities, including establishing limited access areas accessible only to authorized facility personnel, and would require these begin delete facilitiesend delete to notify appropriate law enforcement authorities within 24 hours after discovering specified breaches in security. begin delete Thisend delete bill would prohibit the distribution of any form of advertising for physician recommendations for medical marijuana unless the advertisement bears a specified notice and requires that the advertisement meet specified requirements and not be fraudulent, deceitful, or misleading, as specified. Violation of these provisions would be punishable by a civil fine of up to $35,000 for each individual violation.
(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 require the board to consult with the Center for
begin delete Medicalend delete Cannabis Research on developing and adopting medical guidelines for the appropriate administration and use of marijuana.
The bill would also make it a misdemeanor for a physician and surgeon who recommends marijuana to a patient for a medical purpose to accept, solicit, or offer any remuneration from or to a licensed dispensing facility in which the physician and surgeon or his or her immediate family has a financial interest. By creating a new crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
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
8 The California Constitution grants cities and counties the
9authority to make and enforce, within their borders, “all local
10police, sanitary, and other ordinances and regulations not in conflict
11with the general laws.” This inherent local police power includes
12broad authority to determine, for purposes of public health, safety,
13and welfare, the appropriate uses of land within the local
14jurisdiction’s borders. The police power, therefore, allows each
15city and county to determine whether or not a medical marijuana
16dispensary or other facility that makes medical marijuana available
17may operate within its borders. This authority has been upheld by
18City of Riverside v. Inland Empire Patients Health & Wellness,
19Inc. (2013) 56 Cal.4th 729 and County of Los Angeles v. Hill
20(2011) 192 Cal.App.4th 861.
22 If, pursuant to this authority, a city or county determines
23that a dispensary or other facility that makes medical marijuana
24available may operate within its borders, then there is a need for
25the state to license these dispensaries and other facilities for the
26purpose of adopting and enforcing protocols for training and
27certification of physicians who recommend the use of medical
28marijuana and for agricultural cultivation practices. This licensing
29requirement is not intended in any way nor shall it be construed
30to preempt local ordinances regarding the sale and use of medical
31marijuana, including, but not limited to, security, signage, lighting,
34 All of the following elements are necessary to uphold
35important state goals:
36(1) Strict provisions to prevent the potential diversion of
37marijuana for recreational use.
38(2) Audits to accurately track the volume of both product
39movement and sales.
P6 1(3) An effective means of restricting access to medical marijuana
begin delete persons under 21 years of ageend delete.
4 Nothing in this act shall be construed to promote or facilitate
5the nonmedical, recreational possession, sale, or use of marijuana.
(a) In order to ensure that its resources are maximized
9for the protection of the public, the Medical Board of California
10shall prioritize its investigative and prosecutorial resources to
11ensure that physicians and surgeons representing the greatest threat
12of harm are identified and disciplined expeditiously. Cases
13involving any of the following allegations shall be handled on a
14priority basis, as follows, with the highest priority being given to
15cases in the first paragraph:
16(1) Gross negligence, incompetence, or repeated negligent acts
17that involve death or serious bodily injury to one or more patients,
18such that the physician and surgeon represents a danger to the
20(2) Drug or alcohol abuse by a physician and surgeon involving
21death or serious bodily injury to a patient.
22(3) Repeated acts of clearly excessive prescribing, furnishing,
23or administering of controlled substances, or repeated acts of
24prescribing, dispensing, or furnishing of controlled substances without
26a good faith prior examination of the patient and medical reason
27therefor. However, in no event shall a physician and surgeon
28prescribing, furnishing, or administering controlled substances for
29intractable pain consistent with lawful prescribing, including, but
30not limited to, Sections 725, 2241.5, and 2241.6 of this code and
31Sections 11159.2 and 124961 of the Health and Safety Code, be
32prosecuted for excessive prescribing and prompt review of the
33applicability of these provisions shall be made in any complaint
34that may implicate these provisions.
35(4) Sexual misconduct with one or more patients during a course
36of treatment or an examination.
37(5) Practicing medicine while under the influence of drugs or
39(b) The board may by regulation prioritize cases involving an
40allegation of conduct that is not described in subdivision (a). Those
P7 1cases prioritized by regulation shall not be assigned a priority equal
2to or higher than the priorities established in subdivision (a).
3(c) The Medical Board of California shall indicate in its annual
4report mandated by Section 2312 the number of temporary
5restraining orders, interim suspension orders, and disciplinary
6 actions that are taken in each priority category specified in
7subdivisions (a) and (b).
Article 25 (commencing with Section 2525) is added
10to Chapter 5 of Division 2 of the Business and Professions Code,
(a) It is unlawful for a physician and surgeon who
16recommends marijuana to a patient for a medical purpose to accept,
17solicit, or offer any form of remuneration from or to a facility
18licensed pursuant to
begin delete Article 7 (commencing with Section 111657) if
19of Chapter 6 of Part 5 of Division 104 of the Health and Safety
21the physician and surgeon or his or her immediate family have a
22financial interest in that facility.
23(b) For the purposes of this
section, “financial interest” shall
24have the same meaning as in Section 650.01.
25(c) A violation of this section shall be a misdemeanor.
The board shall consult with the California Marijuana
27Research Program, known as the Center for Medicinal Cannabis
28Research, authorized pursuant to Section 11362.9 of the Health
29and Safety Code, on developing and adopting medical guidelines
30for the appropriate administration and use of marijuana.
Part 5 (commencing with Section 18100) is added to
37Division 7 of the Business and Professions Code, to read:
For purposes of this
begin delete articleend delete, the following
4definitions shall apply:
5(a) “Department” means the Department of Consumer Affairs.end delete
6(b) “Licensed cultivation site” means a facility that grows or
7grows and processes marijuana for medical use and that is licensed
8pursuant to Section 18101.
9(c) “Licensed dispensing facility” means a dispensary, mobile
10dispensary, marijuana processing facility, or other facility that
11provides marijuana for medical use that is licensed pursuant to
(a) Except as provided in Section 11362.5 of, and
38Article 2.5 (commencing with Section 11362.7) of Chapter 6 of
39Division 10 of, the Health and Safety Code, a person shall not sell
40or provide marijuana other than at a licensed dispensing facility.
P9 1(b) Except as provided in Section 11362.5 of, and Article 2.5
2(commencing with Section 11362.7) of Chapter 6 of Division 10
3of, the Health and Safety Code, a person shall not grow
begin delete or processend delete
4 marijuana other than at a licensed cultivation site.
16 The department shall require, prior to issuing a license to a
17dispensing facility or a cultivation site, all of
19(1) The name of the owner or owners of the proposed facility.
20(2) The address and telephone number of the proposed facility.
21(3) A description of the scope of business of the proposed
23(4) A certified copy of the local jurisdiction’s approval to operate
24within its borders.
25(5) A completed application, as required by the department.
26(6) Payment of a fee, in an amount to be determined by the
27department not to exceed the amount necessary, but that is
28sufficient to cover, the actual costs of the administration of this
30(7) (A) An applicant’s fingerprint images and related
31 information required by the Department of Justice for the purpose
32of obtaining information as to the existence and content of a record
33of state and federal convictions and arrests, and information as to
34the existence and content of a record of state and federal
35convictions and arrests for which the Department of Justice
36establishes that the person is free on bail, or on his or her own
37recognizance, pending trial or appeal.
38(B) The Department of Justice shall forward the fingerprint
39images and related information received pursuant to subparagraph
40(A) to the Federal Bureau of Investigation and request a federal
P10 1summary of criminal information. The Department of Justice shall
2review the information returned from the Federal Bureau of
3Investigation and compile and disseminate a response to the
5(C) The Department of Justice shall charge a fee sufficient to
6cover the reasonable cost of processing the requests described in
8(D) The department may deny a license based on a past criminal
9conviction if the crime is substantially related to the qualifications,
10functions, or duties of the business for which the license will be
15 Any other information as required by the department.
begin delete licensed dispensingend delete facility shall not acquire, begin delete possess,end delete cultivate, deliver, transfer, transport,
31or dispense marijuana for any purpose other than those authorized
32by Article 2.5 (commencing with Section 11362.7) of Chapter 6
33of Division 10 of the Health and Safety Code.
34(b) A licensed dispensing facility shall not acquire marijuana plants or
37 products except through
begin delete the cultivation of marijuana by that a licensed cultivation site
38facility, if the facility isend delete
begin delete,end delete or begin delete another .
39licensed cultivation siteend delete
(a) A person shall not distribute any form of advertising
24for physician recommendations for medical marijuana in California
25unless the advertisement bears the following notice to consumers:
27NOTICE TO CONSUMERS: The Compassionate Use Act of
281996 ensures that seriously ill Californians have the right to obtain
29and use marijuana for medical purposes where medical use is
30deemed appropriate and has been recommended by a physician
31who has determined that the person’s health would benefit from
32the use of marijuana. Physicians are licensed and regulated by the
33Medical Board of California and arrive at the decision to make
34this recommendation in accordance with accepted standards of
37(b) Advertising for physician recommendations for medical
38marijuana shall meet all requirements of Section 651. Price
39advertising shall not be fraudulent, deceitful, or misleading,
P14 1including statements or advertisements of bait, discounts,
2premiums, gifts, or statements of a similar nature.
(a) A facility licensed pursuant to this part shall
5implement sufficient security measures to both deter and prevent
6unauthorized entrance into areas containing marijuana and theft
7of marijuana at those facilities. These security measures shall
8include, but not be limited to, all of the following:
9(1) Allow only qualifying patients, the patient’s primary
10caregiver, and facility agents access to the facility.
11(2) Prevent individuals
from remaining on the premises of the
12facility if they are not engaging in activity expressly related to the
13operations of the facility.
14(3) Establish limited access areas accessible only to authorized
16(4) Store all finished marijuana in a secure, locked safe or vault
17and in a manner as to prevent diversion, theft, and loss.
18(b) A facility licensed pursuant to this part shall notify
19appropriate law enforcement authorities within 24 hours after
20discovering any of the following:
21(1) Discrepancies identified during inventory.
22(2) Diversion, theft, loss, or any criminal activity
23facility or a facility agent.
24(3) The loss or unauthorized alteration of records related to
25marijuana, registered qualifying patients, personal caregivers, or
27(4) Any other breach of security.
28(c) A licensed cultivation site shall weigh, inventory, and
29account for on video, all medical marijuana to be transported prior
30to its leaving its origination location. Within eight hours after
31arrival at the destination, the licensed dispensing facility shall
32reweigh, reinventory, and account for on video, all transported
In addition to the provisions of this part, a license
10granted pursuant to this part shall be subject to the restrictions of
11the local jurisdiction in which the facility operates or proposes to
12operate. Even if a license has been granted pursuant to this part, a
13facility shall not operate in a local jurisdiction that prohibits the
14establishment of that type of business.
Violation of this part shall be punishable by a civil fine
17of up to thirty-five thousand dollars ($35,000) for each individual
Nothing in this part shall prevent a city or other local
21governing body from taking action as specified in Section 11362.83
22of the Health and Safety Code.
No reimbursement is required by this act pursuant to
5Section 6 of Article XIII B of the California Constitution because
6the only costs that may be incurred by a local agency or school
7district will be incurred because this act creates a new crime or
8infraction, eliminates a crime or infraction, or changes the penalty
9for a crime or infraction, within the meaning of Section 17556 of
10the Government Code, or changes the definition of a crime within
11the meaning of Section 6 of Article XIII B of the California