BILL NUMBER: SB 1262	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 15, 2014
	AMENDED IN SENATE  MAY 27, 2014
	AMENDED IN SENATE  MAY 7, 2014
	AMENDED IN SENATE  APRIL 21, 2014

INTRODUCED BY   Senator Correa

                        FEBRUARY 21, 2014

   An act to  amend Section   2220.05 of, to  add
Article 25 (commencing with Section 2525) to Chapter 5 of Division 2
of, and to add Part 5 (commencing with Section 18100) to Division 7
of, the Business and Professions Code,   to add Article 8
(commencing with Section 111658) to Chapter 6 of Part 5 of Division
104 of the Health and Safety Code, and to add Chapter 3.8 (commencing
with Section 7295) to Part 1.7 of Division 2 of the Revenue and
Taxation Code,   relating to medical marijuana.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1262, as amended, Correa. Medical marijuana: regulation of
physicians, dispensaries,  and  cultivation 
sites.   sites, and processing facilities. 
   (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
 , including locksmiths and professional fiduciaries,
 by the Department of Consumer Affairs.  Existing law,
the   Sherman Food, Drug, and Cosmetic Law, provides for the
  regulation of food, drugs, devices, and cosmetics, as
specified. A violation of that law is a crime. 
   This bill would require the Department of Consumer Affairs to
license dispensing facilities  and   , 
cultivation sites  , and processing facilities  that
provide, process, and grow marijuana for medical use, as specified,
including requiring a background check for license applicants
 , and   . The bill  would make these
licenses subject to the restrictions of the local jurisdiction in
which the facility operates or proposes to operate. The bill would
 , among other things,  require  licensed dispensing
facilities and licensed cultivation sites   licensees
 to implement sufficient security measures to both deter and
prevent unauthorized entrance into areas containing marijuana and
theft of marijuana at  those   their 
facilities, including establishing limited access areas accessible
only to authorized facility personnel, and would require these
 facilities   licensees  to notify
appropriate law enforcement authorities within 24 hours after
discovering specified breaches in security.  This 
 The bill would set forth provisions related to the
transportation, testing, and distribution of marijuana. The 
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. 
   The bill would provide that it shall not supersede provisions of
Measure D, as approved by the voters of the City of Los Angeles, as
specified.  
   The bill would require the department to administer and enforce
these provisions. The bill would require the department to establish
quality assurance protocols by July 1, 2016, to ensure uniform
testing standards of medical marijuana, and would require licensees
to comply with these provisions. The bill would further set forth
provisions regulating edible marijuana products, as specified. By
adding these provisions to the Sherman Food, Drug, and Cosmetic Law,
a violation of which is a crime, the bill would impose a
state-mandated local program. 
   (2) Existing law, the Medical Practice Act, provides for  the
 licensure and regulation of physicians and surgeons by the
Medical Board of California.  Existing law 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 provides that a violation of
the Medical Practice Act is a crime. 
   This bill would require the board to consult with the Center for
 Medical   Medicinal  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 bill would provide that specified acts of recommending
marijuana without a good faith examination are among the types of
cases that should be given priority for investigation and prosecution
by the board, as described above. The bill would further prohibit a
person from recommending medical marijuana to a patient unless that
person is the patient's attending physician, as defined. Because a
violation of that provision would be a crime, the bill would impose a
state-mandated local program.  
   (3) Existing law authorizes the legislative body of a city or
county to impose various taxes, including a transactions and use tax
at a rate of 0.25%, or a multiple thereof, if approved by the
required vote of the legislative body and the required vote of
qualified voters, and limits the combined rate of transactions and
use taxes within a city or county to 2%.  
   This bill would authorize the legislative body of a county to levy
a tax on the privilege of cultivating, dispensing, producing,
processing, preparing, storing, providing, or distributing marijuana
or products containing marijuana. The bill would authorize the tax to
be imposed for either general or specific governmental purposes. The
bill would require a tax imposed pursuant to this authority to be
subject to any applicable voter approval requirement. 
   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:

  SECTION 1.  The Legislature finds and declares all of the
following: 
   (a) In 1996, the people of the State of California enacted the
Compassionate Use Act of 1996, codified in Section 11362.5 of the
Health and Safety Code. The people of the State of California
declared that their purpose in enacting the measure was, among other
things, "to ensure that seriously ill Californians have the right to
obtain and use marijuana for medical purposes where that medical use
is deemed appropriate and has been recommended by a physician who has
determined that the person's health would benefit from the use of
marijuana in the treatment of cancer, anorexia, AIDS, chronic pain,
spasticity, glaucoma, arthritis, migraine, or any other illness for
which marijuana provides relief."  
   (b) The Compassionate Use Act of 1996 called on state government
to implement a plan for the safe and affordable distribution of
marijuana to all patients in medical need of marijuana.  
   (c) In 2003, the Legislature enacted the Medical Marijuana Program
Act (MMPA), codified in Article 2.5 (commencing with Section
11362.7) of Chapter 6 of Division 10 of the Health and Safety Code.
 
   (d) Greater certainty and minimum statewide standards are urgently
needed regarding the obligations of medical marijuana facilities,
and for the imposition and enforcement of regulations to prevent
unlawful cultivation and the diversion of marijuana to nonmedical
use.  
   (e) Despite the passage of the Compassionate Use Act of 1996 and
the MMPA, because of the lack of an effective statewide system for
regulating and controlling medical marijuana, cities, counties and
local law enforcement officials have been confronted with uncertainty
about the legality of some medical marijuana cultivation and
distribution activities. The current system of collectives and
cooperatives makes law enforcement difficult and endangers patient
safety because of an inability to monitor the supply of medical
marijuana in the state and the lack of quality control, testing, and
labeling requirements.  
   (a) 
    (f)  The California Constitution grants cities and
counties the authority to make and enforce, within their borders,
"all local police, sanitary, and other ordinances and regulations not
in conflict with the general laws." This inherent local police power
includes broad authority to determine, for purposes of public
health, safety, and welfare, the appropriate uses of land within the
local jurisdiction's borders. The police power, therefore, allows
each city and county to determine whether or not a medical marijuana
dispensary or other facility that makes medical marijuana available
may operate within its borders. This authority has been upheld by
City of Riverside v. Inland Empire Patients Health & Wellness, Inc.
(2013) 56 Cal.4th 729 and County of Los Angeles v. Hill (2011) 192
Cal.App.4th 861. 
   (b) 
    (g)  If, pursuant to this authority, a city or county
determines that a dispensary or other facility that makes medical
marijuana available may operate within its borders, then there is a
need for the state to license these dispensaries and other facilities
for the purpose of adopting and enforcing protocols for training and
certification of physicians who recommend the use of medical
marijuana and for agricultural cultivation practices. This licensing
requirement is not intended in any way nor shall it be construed to
preempt local ordinances regarding the sale and use of medical
marijuana, including, but not limited to, security, signage,
lighting, and inspections. 
   (c) 
    (h)  All of the following elements are necessary to
uphold important state goals:
   (1) Strict provisions to prevent the potential diversion of
marijuana for recreational use.
   (2) Audits to accurately track the volume of both product movement
and sales.
   (3) An effective means of restricting access to medical marijuana
by  persons under 21 years of age   minors 
. 
   (d) 
    (i)  Nothing in this act shall be construed to promote
or facilitate the nonmedical, recreational possession, sale, or use
of marijuana.
   SEC. 2.    Section 2220.05 of the   Business
and Professions Code   is amended to read: 
   2220.05.  (a) In order to ensure that its resources are maximized
for the protection of the public, the Medical Board of California
shall prioritize its investigative and prosecutorial resources to
ensure that physicians and surgeons representing the greatest threat
of harm are identified and disciplined expeditiously. Cases involving
any of the following allegations shall be handled on a priority
basis, as follows, with the highest priority being given to cases in
the first paragraph:
   (1) Gross negligence, incompetence, or repeated negligent acts
that involve death or serious bodily injury to one or more patients,
such that the physician and surgeon represents a danger to the
public.
   (2) Drug or alcohol abuse by a physician and surgeon involving
death or serious bodily injury to a patient.
   (3) Repeated acts of clearly excessive prescribing, furnishing, or
administering of controlled substances, or repeated acts of
prescribing, dispensing, or furnishing of controlled substances 
, or recommending marijuana to patients for medical pu  
rposes,  without a good faith prior examination of the patient
and medical reason therefor. However, in no event shall a physician
and surgeon prescribing, furnishing, or administering controlled
substances for intractable pain consistent with lawful prescribing,
including, but not limited to, Sections 725, 2241.5, and 2241.6 of
this code and Sections 11159.2 and 124961 of the Health and Safety
Code, be prosecuted for excessive prescribing and prompt review of
the applicability of these provisions shall be made in any complaint
that may implicate these provisions.
   (4) Sexual misconduct with one or more patients during a course of
treatment or an examination.
   (5) Practicing medicine while under the influence of drugs or
alcohol.
   (b) The board may by regulation prioritize cases involving an
allegation of conduct that is not described in subdivision (a). Those
cases prioritized by regulation shall not be assigned a priority
equal to or higher than the priorities established in subdivision
(a).
   (c) The Medical Board of California shall indicate in its annual
report mandated by Section 2312 the number of temporary restraining
orders, interim suspension orders, and disciplinary actions that are
taken in each priority category specified in subdivisions (a) and
(b).
   SEC. 2.   SEC. 3.   Article 25
(commencing with Section 2525) is added to Chapter 5 of Division 2 of
the Business and Professions Code, to read:

      Article 25.  Recommending Medical Marijuana


   2525.  (a) It is unlawful for a physician and surgeon who
recommends marijuana to a patient for a medical purpose to accept,
solicit, or offer any form of remuneration from or to a facility
licensed pursuant to  Article 7 (commencing with Section
111657) of Chapter 6 of Part 5 of Division 104 of the Health and
Safety Code   Part 5 (commencing with Section 18100) of
Division 7,  if the physician and surgeon or his or her
immediate family have a financial interest in that facility.
   (b) For the purposes of this section, "financial interest" shall
have the same meaning as in Section 650.01.
   (c) A violation of this section shall be a misdemeanor.
   2525.1.  The board shall consult with the California Marijuana
Research Program, known as the Center for Medicinal Cannabis
Research, authorized pursuant to Section 11362.9 of the Health and
Safety Code, on developing and adopting medical guidelines for the
appropriate administration and use of marijuana. 
   2525.2.  No person shall recommend medical marijuana to a patient,
unless that person is the patient's attending physician, as defined
by subdivision (a) of Section 11362.7 of the Health and Safety Code.

   SEC. 3.   SEC. 4.   Part 5 (commencing
with Section 18100) is added to Division 7 of the Business and
Professions Code, to read:

      PART 5.  Medical Marijuana


   18100.  For purposes of this  article   part
 , the following definitions shall apply: 
   (a) "Department" means the Department of Consumer Affairs.
 
   (b) "Licensed cultivation site" means a facility that grows or
grows and processes marijuana for medical use and that is licensed
pursuant to Section 18101.  
   (c) "Licensed dispensing facility" means a dispensary, mobile
dispensary, marijuana processing facility, or other facility that
provides marijuana for medical use that is licensed pursuant to
Section 18101.  
   (a) "Certified testing laboratory" means a laboratory that is
certified by the department to perform random sample testing of
marijuana pursuant to the certification standards for these
facilities promulgated by the department.  
   (b) "Department" means the Department of Consumer Affairs. 

   (c) "Dispensary" means a distribution operation that provides
marijuana or marijuana derived products to patients.  
   (d) "Licensed cultivation site" means a facility that grows
marijuana for medical use and that is licensed pursuant to Section
18101.  
   (e) "Licensed dispensing facility" means a dispensary or other
facility that provides marijuana for medical use that is licensed
pursuant to Section 18101.  
   (f) "Licensed processing facility" means a facility where
marijuana or marijuana products are inspected, packaged, labeled, or
otherwise prepared prior to being provided to another facility
licensed pursuant to this section, to a patient with a medical
marijuana recommendation, or otherwise distributed, and that is
licensed pursuant to Section 18101.  
   (g) "Licensed transporter" means an individual or entity licensed
by the department to transport marijuana to and from facilities
licensed pursuant to this part.  
   (h) "Marijuana" means marijuana, as defined by Section 11018 of
the Health and Safety Code. 
   18101.  (a) Except as provided in Section 11362.5 of, and Article
2.5 (commencing with Section 11362.7) of Chapter 6 of Division 10 of,
the Health and Safety Code, a person shall not sell or provide
marijuana other than at a licensed dispensing facility.
   (b) Except as provided in Section 11362.5 of, and Article 2.5
(commencing with Section 11362.7) of Chapter 6 of Division 10 of, the
Health and Safety Code, a person shall not grow  or process
 marijuana other than at a licensed cultivation site. 
   (c) Except as provided in Section 11362.5 of, and Article 2.5
(commencing with Section 11362.7) of Chapter 6 of Division 10 of, the
Health and Safety Code, a person shall not process marijuana other
than at a licensed processing facility.  
   (d) A person shall not transport marijuana from one facility
licensed pursuant to this part to another, other than a licensed
transporter.  
   (e) To meet the requirement of Sections 111658 to 111663,
inclusive, of the Health and Safety Code, marijuana and marijuana
products shall be tested by a certified testing laboratory. 

   (c) 
    (f)    The department shall require, prior to
issuing a license to a dispensing facility or a cultivation site 
pursuant to this part  , all of the following:
   (1) The name of the owner or owners of the proposed facility.
   (2) The address and telephone number of the proposed facility.
   (3) A description of the scope of business of the proposed
facility.
   (4) A certified copy of the local jurisdiction's approval to
operate within its borders.
   (5) A completed application, as required by the department.
   (6) Payment of a fee, in an amount to be determined by the
department not to exceed the amount necessary, but that is sufficient
to cover, the actual costs of the administration of this part.
   (7) (A) An applicant's fingerprint images and related information
required by the Department of Justice for the purpose of obtaining
information as to the existence and content of a record of state and
federal convictions and arrests, and information as to the existence
and content of a record of state and federal convictions and arrests
for which the Department of Justice establishes that the person is
free on bail, or on his or her own recognizance, pending trial or
appeal.
   (B) The Department of Justice shall forward the fingerprint images
and related information received pursuant to subparagraph (A) to the
Federal Bureau of Investigation and request a federal summary of
criminal information. The Department of Justice shall review the
information returned from the Federal Bureau of Investigation and
compile and disseminate a response to the department.
   (C) The Department of Justice shall charge a fee sufficient to
cover the reasonable cost of processing the requests described in
this paragraph.
   (D) The department may deny a license based on a past criminal
conviction if the crime is substantially related to the
qualifications, functions, or duties of the business for which the
license will be issued. 
   (8) In the case of a cultivation site, the GPS coordinates of the
site.  
   (8) 
    (9)  Any other information as required by the
department. 
   (g) The department shall deny a license if the application fails
to state with sufficient specificity the jurisdiction in which the
applicant proposes to establish operations.  
   (h) Each application for a license approved by the department
pursuant to this part is separate and distinct. A licensee shall not
hold a license in more than one class of specified medical marijuana
activities. A licensee shall not be an officer, director, member,
owner, or shareholder in another entity licensed pursuant to this
part. The officers, directors, owners, members, or shareholders of a
licensee in one class may not hold a license in another class, and
may not be an officer, director, member, owner, or shareholder of an
entity licensed pursuant to this part. 
   18102.  (a) A  licensed dispensing  facility 
licensed pursuant to this part  shall not acquire, 
possess,  cultivate,  process, possess, store,
manufacture, test, distribute, sell,  deliver, transfer,
transport, or dispense marijuana for any purpose other than those
authorized by Article 2.5 (commencing with Section 11362.7) of
Chapter 6 of Division 10 of the Health and Safety Code.
   (b) A licensed dispensing facility shall not acquire  ,
cultivate, process, possess, store, manufacture, test, distribute,
sell, deliver, transfer, transport, or dispense  marijuana
plants or  marijuana  products except through  the
cultivation of marijuana by that facility, if the facility is
 a licensed cultivation site  ,  or
 another licensed cultivation site  processing
  facility  . 
   18103.  (a) A licensed transporter shall ship only to facilities
licensed pursuant to this part and only in response to a request for
a specific quantity and variety from those facilities.
   (b) Prior to transporting any medical marijuana product, a
licensed transporter shall do the following:
   (1) Complete a shipping manifest using a form prescribed by the
department.
   (2) Securely transmit a copy of the manifest to the licensee that
will receive the medical marijuana product, and to the department,
prior to transport.
   (c) The licensed transporter making the shipment and the licensee
receiving the shipment shall maintain each shipping manifest and make
it available to local code enforcement officers, any other locally
designated enforcement entity, and the department upon request. 

   18104.  (a) Transported medical marijuana products shall:
   (1) Be transported only in a locked, safe and secure storage
compartment that is securely affixed to the interior of the
transporting vehicle.
   (2) Not be visible from outside the vehicle.
   (b) Any vehicle transporting medical marijuana products shall
travel directly from one licensed facility to another licensed
facility authorized to receive the shipment.  
   18105.  (a) All transport vehicles shall be staffed with a minimum
of two employees. At least one transport team member shall remain
with the vehicle at all times that the vehicle contains medical
marijuana.
   (b) Each transport team member shall have access to a secure form
of communication by which each member can communicate with personnel
at the licensed facility at all times that the vehicle contains
medical marijuana.
   (c) Each transport team member shall possess documentation of
licensing and a government-issued identification card at all times
when transporting or delivering medical marijuana and shall produce
it to any representative of the department or law enforcement
official upon request.
   (d) This part shall not be construed to authorize or permit any
licensee to transport, or cause to be transported, marijuana or
marijuana products outside the state.  
   18106.  (a) The department shall have the authority, subject to
local ordinances, to license persons for the cultivation,
manufacture, testing, transportation, storage, and sale of medical
marijuana within the state, and to levy appropriate related licensing
fees not to exceed the reasonable costs of enforcement and
administration of this part. The department shall not issue a license
if the applicant has not met all requirements pursuant to Section
18101. A license, once issued, shall be suspended within five days of
notification to the department by a local agency that a licensee is
no longer in compliance with local ordinances or regulation.
   (b) The department shall promulgate, by July 1, 2016, regulations
for implementation and enforcement of this part, including all of the
following:
   (1) Procedures for the issuance, renewal, suspension, and
revocation of licenses.
   (2) Application, licensing, and renewal forms and fees.
   (3) A time period in which the department shall approve or deny an
application for a license to operate a facility or dispensary.
   (4) Qualifications for licensees.
   (5) Standards for certification of testing laboratories to perform
random sample testing of all marijuana products intended for sale,
to identify and eliminate chemical residue, microbiological
contaminants, and mold.
   (c) The department shall promulgate, by July 1, 2016, regulations
for minimum statewide health and safety standards and quality
assurance standards pursuant to Section 111658 of the Health and
Safety Code associated with the cultivation, transport, storage, and
sale of all medical marijuana produced in this state. Local agencies
shall have primary responsibility for enforcement of these standards
in accordance with department regulations.
   (d) An application for or renewal of a license shall not be
approved if the department determines any of the following:
   (1) The applicant fails to meet the requirements of this part or
any regulation adopted pursuant to this part or any applicable city
or county ordinance or regulation.
   (2) The applicant, or any of its officers, directors, owners,
members, or shareholders is a minor.
   (3) The applicant has knowingly answered a question or request for
information falsely on the application form, or failed to provide
information requested.
   (4) The applicant, or any of its officers, directors, owners,
members, or shareholders has been sanctioned by the department, a
city, county, or city and county, for marijuana activities conducted
in violation of this part or any applicable local ordinance or has
had a license revoked in the previous five years.
   (5) The proposed cultivation, processing, possession, storage,
manufacturing, testing, transporting, distribution, provision, or
sale of medical marijuana will violate any applicable local law or
ordinance.
   (e) The department may consult with other state agencies, state
departments, public entities, or private entities for the purposes of
establishing statewide standards and regulations.
   (f) The department may assist state taxation authorities in the
development of uniform policies for the state taxation of licensees.
   (g) The department may assist the Division of Occupational Safety
and Health in the Department of Industrial Relations in the
development of industry-specific regulations related to the
activities of licensees. 
    18103.   18107.   (a) A person shall
not distribute any form of advertising for physician recommendations
for medical marijuana in California unless the advertisement bears
the following notice to consumers:

   NOTICE TO CONSUMERS: The Compassionate Use Act of 1996 ensures
that seriously ill Californians have the right to obtain and use
marijuana for medical purposes where medical use is deemed
appropriate and has been recommended by a physician who has
determined that the person's health would benefit from the use of
marijuana. Physicians are licensed and regulated by the Medical Board
of California and arrive at the decision to make this recommendation
in accordance with accepted standards of medical responsibility.

   (b) Advertising for physician recommendations for medical
marijuana shall meet all requirements of Section 651. Price
advertising shall not be fraudulent, deceitful, or misleading,
including statements or advertisements of bait, discounts, premiums,
gifts, or statements of a similar nature.
    18104.   18108.   (a) A facility
licensed pursuant to this part shall implement sufficient security
measures to both deter and prevent unauthorized entrance into areas
containing marijuana and theft of marijuana at those facilities.
These security measures shall include, but not be limited to, all of
the following:
   (1) Allow only qualifying patients, the patient's primary
caregiver, and facility agents access to the facility.
   (2) Prevent individuals from remaining on the premises of the
facility if they are not engaging in activity expressly related to
the operations of the facility.
   (3) Establish limited access areas accessible only to authorized
facility personnel.
   (4) Store all finished marijuana in a secure, locked safe or vault
and in a manner as to prevent diversion, theft, and loss.
   (b) A facility licensed pursuant to this part shall notify
appropriate law enforcement authorities within 24 hours after
discovering any of the following:
   (1) Discrepancies identified during inventory.
   (2) Diversion, theft, loss, or any criminal activity involving the
facility or a facility agent.
   (3) The loss or unauthorized alteration of records related to
marijuana, registered qualifying patients, personal caregivers, or
facility agents.
   (4) Any other breach of security.
   (c) A licensed cultivation site shall weigh, inventory, and
account for on video, all medical marijuana to be transported prior
to its leaving its origination location. Within eight hours after
arrival at the destination, the licensed dispensing facility shall
reweigh, reinventory, and account for on video, all transported
marijuana. 
   18108.5.  (a) The department shall require an annual audit of all
licensees licensed pursuant to this part or otherwise licensed by the
department to cultivate, manufacture, process, test, transport,
store, or sell marijuana to be paid for by each licensed vendor and
dispensary.
   (b) Completed audit reports shall also be submitted by the
licensee to local code enforcement offices, or the appropriate
locally designated enforcement entity, within 30 days of the
completion of the audit.
   (c) It is the responsibility of each licensee licensed pursuant to
this part or otherwise licensed by the department to cultivate,
manufacture, process, test, transport, store, or sell marijuana to
develop a robust quality assurance protocol that includes all of the
provisions of this part. 
    18105.   18109.   In addition to the
provisions of this part, a license granted pursuant to this part
shall be subject to the restrictions of the local jurisdiction in
which the facility operates or proposes to operate. Even if a license
has been granted pursuant to this part, a facility shall not operate
in a local jurisdiction that prohibits the establishment of that
type of business.
    18106.   18110.   Violation of this
part shall be punishable by a civil fine of up to thirty-five
thousand dollars ($35,000) for each individual violation.
    18107.   18111.   Nothing in this part
shall prevent a city or other local governing body from taking action
as specified in Section 11362.83 of the Health and Safety Code. 

   18112.  This part shall in no way supersede the provisions of
Measure D, approved by the voters of the City of Los Angeles on the
May 21, 2013, ballot for the city, which granted marijuana businesses
and dispensaries qualified immunity consistent with the terms of the
measure and local ordinances. Notwithstanding the provisions of this
part, marijuana businesses and dispensaries subject to the
provisions of Measure D and its qualified immunity shall continue to
be subject to the
ordinances and regulations of the City of Los Angeles.  
   18113.  (a) This part shall not apply to, and shall have no
diminishing effect on, the rights and protections granted to a
patient or a primary caregiver pursuant to the Compassionate Use Act
of 1996.
   (b) (1) A patient who cultivates, possesses, stores, manufactures,
or transports marijuana exclusively for his or her personal medical
use and who does not sell, distribute, donate, or provide marijuana
to any other person is not considered a licensee under this part and
is exempt from licensure under this part.
   (2) A primary caregiver who cultivates, possesses, stores,
manufactures, transports, or provides marijuana exclusively for the
personal medical purposes of a specified qualified patient for whom
he or she is the primary caregiver within the meaning of Section
11362.7 of the Health and Safety Code and who does not receive
remuneration for these activities except for compensation in full
compliance with subdivision (c) of Section 11362.765 of the Health
and Safety Code is not considered a licensee under this part and is
exempt from licensure under this part. 
   SEC. 5.    Article 8 (commencing with Section 111658)
is added to Chapter 6 of Part 5 of Division 104 of the  
Health and Safety Code   , to read:  

      Article 8.  Medical Marijuana


   111658.  For purpose of this article, the following definitions
shall apply:
   (a) "Certified testing laboratories" means a laboratory that is
certified by the department to perform random sample testing of
marijuana pursuant to the certification standards for those
facilities promulgated by the department.
   (b) "Department" means the Department of Consumer Affairs.
   (c) "Edible marijuana product" means marijuana or a
marijuana-derived product that is ingested or meant to be ingested
through the mouth and into the digestive system.
   (d) "Marijuana" means marijuana, as defined by Section 11018.
   (e) "Representative samples" means samples taken from each batch
or shipment of marijuana received from a licensed cultivation site or
any other source if intended for sale.
   111659.  The department, by July 1, 2016, shall accomplish the
following:
   (a) Establish quality assurance protocols to ensure uniform
testing standards for all marijuana sold via dispensaries or other
facilities, or cultivated by any facilities, that are licensed
pursuant to Part 5 (commencing with Section 18100) of Division 7 of
the Business and Professions Code.
   (b) In consultation with outside entities at its discretion,
develop a list of certified testing laboratories that can perform
uniform testing in compliance with this article, and post that list
on its Internet Web site.
   111660.  (a) Licensees licensed pursuant to Part 5 (commencing
with Section 18100) of Division 7 of the Business and Professions
Code shall bear the responsibility for contracting with certified
testing laboratories for regular, systematic testing of
representative samples of all marijuana cultivated or intended for
sale or distribution, and shall bear the cost of that testing.
   (b) Licensees licensed pursuant to Part 5 (commencing with Section
18100) of Division 7 of the Business and Professions Code shall
provide results of test reports to local code enforcement officers,
any other locally designated enforcement entity, and the department
both on a quarterly basis and upon request.
   111661.  Quality assurance protocols shall be required between all
licensed cultivation sites or licensed processing facilities and
licensed dispensing facilities to guarantee safe and reliable
medicinal marijuana delivery to all patients. These quality assurance
protocols shall include:
   (a) Providing of supplier information to dispensaries in order for
recall procedures to be implemented, if and when necessary.
   (b) Safety testing of all marijuana prior to packaging for sale
and patient exposure to identify and eliminate microbiological
contaminants and chemical residue.
   (c) Labeling of all marijuana and marijuana products that shall,
at a minimum, include the following:
   (1) Clear dosage in total milligrams delivered for all products.
   (2) Clear indication, in bold font, that the product contains
marijuana.
   (3) Tetrahydrocannabinol (THC) and cannabidiol (CBD) content.
   111662.  For purposes of this article, edible marijuana products
are deemed to be unadulterated food products. In addition to the
quality assurance standards provided in Section 111661, all edible
marijuana products shall comply with the following requirements:
   (a) Baked edible marijuana products (such as brownies, bars,
cookies, and cakes), tinctures, and other edible marijuana products
that do not require refrigeration or hot-holding may be manufactured,
sold, or otherwise distributed at facilities licensed pursuant to
Part 5 (commencing with Section 18100) of Division 7 of the Business
and Professions Code.
   (b) Licensed marijuana facilities shall have an owner or employee
who has successfully passed an approved and accredited food safety
certification examination as specified in Sections 113947.1,
113947.2, and 113947.3 of the Health and Safety Code prior to
selling, manufacturing, or distributing edible marijuana products
requiring refrigeration or hot-holding.
   (c) Individuals' manufacturing or selling edible marijuana
products shall thoroughly wash their hands before commencing
production and before handling finished edible marijuana products.
   (d) All edible marijuana products shall be individually wrapped at
the original point of preparation. All edible marijuana products
shall be packaged in a fashion that does not exceed a single
individual serving size.
   (e) Products containing tetrahydrocannabinol (THC) shall be
prepared in compliance with maximum potency standards for THC and THC
concentrates set forth in the department's regulations.
   (f) Prior to sale or distribution at a licensed dispensing
facility, edible marijuana products shall be labeled and in an opaque
and tamper evident package. Labels and packages of edible marijuana
products shall meet the following requirements:
   (1) Edible marijuana packages and labels shall not be made to be
attractive to children.
   (2) All edible marijuana product labels shall include the
following information, prominently displayed and in a clear and
legible font:
   (A) Manufacture date.
   (B) The statement "KEEP OUT OF REACH OF CHILDREN."
   (C) The statement "FOR MEDICAL USE ONLY."
   (D) Net weight of marijuana in package.
   (E) A warning, if nuts or other known allergens are used, and
shall include the total weight, in ounces or grams, of marijuana in
the package.
   (F) Tetrahydrocannabinol (THC) and cannabidiol (CBD) content.
   (g) Photos or images of food are not allowed on edible marijuana
product packages or labels.
   (h) Only generic food names may be used to describe edible
marijuana products. For example, "snickerdoodle" may not be used to
describe a cinnamon cookie. 
   SEC. 6.    Chapter 3.8 (commencing with Section 7295)
is added to Part 1.7 of Division 2 of the   Revenue and
Taxation Code   , to read:  
      CHAPTER 3.8.  MEDICAL MARIJUANA


   7295.  (a) In addition to any authority otherwise provided by law,
the legislative body of any county may levy a tax on the privilege
of cultivating, dispensing, producing, processing, preparing,
storing, providing, or distributing marijuana or products containing
marijuana.
   (b) The tax may be levied for general governmental purposes or for
specific purposes specified by the legislative body.
   (c) The legislative body shall specify the activities subject to
the tax, the applicable rate or rates, the method of apportionment,
and manner of collection of the tax. A tax imposed pursuant to this
section is a tax and not a fee or special assessment, and there is no
requirement that the tax be apportioned on the basis of benefit to
any property or be applied uniformly to all taxpayers or all real
property. The tax imposed pursuant to this section may be based on
any reasonable basis as determined by the legislative body.
   (d) In addition to any other method of collection authorized by
law, the legislative body may provide for collection of the tax
imposed pursuant to this section in the same manner, and subject to
the same penalties and priority of lien as, other charges and taxes
fixed and collected by the county.
   (e) The tax may be imposed upon any or all of the activities set
forth in subdivision (a), regardless of whether the activity is
undertaken individually, collectively, or cooperatively, and
regardless of whether the activity is undertaken for compensation or
without compensation or profit, as determined by the legislative
body.
   (f) Any tax levied pursuant to this section shall be subject to
any applicable voter approval requirement imposed by any other
provision of law.
   (g) The tax, when levied by the legislative body of a county,
shall apply throughout the entire county or within the unincorporated
area of the county, as specified by the legislative body.
   (h) For purposes of this section, "marijuana" means marijuana, as
defined by Section 11018 of the Health and Safety Code.
   (i) This section is declaratory of existing law, and does not
limit or prohibit the levy or collection or any other fee, charge, or
tax, or any license or service fee or charge upon, or related to,
the activities set forth in subdivision (a) as provided by other
provisions of law. 
   SEC. 4.   SEC. 7.   No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because the only costs that may be incurred
by a local agency or school district will be incurred because this
act creates a new crime or infraction, eliminates a crime or
infraction, or changes the penalty for a crime or infraction, within
the meaning of Section 17556 of the Government Code, or changes the
definition of a crime within the meaning of Section 6 of Article XIII
B of the California Constitution.