AB 26, as amended, Jones-Sawyer. Medical cannabis.
(1) Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election, authorizes the use of marijuana for medical purposes. Existing law, the Medical Marijuana Regulation and Safety Act (MMRSA), enacted by the Legislature, establishes within the Department of Consumer Affairs the Bureau of Medical Marijuana Regulation, and provides for the state licensure and regulation of certain commercial medical marijuana activities by the Department of Consumer Affairs, the Department of Food and Agriculture, or the State Department of Public Health, as specified. MMRSA requires an applicant for state licensure to provide specified information and a statement, signed by the applicant under penalty of perjury, that the information is complete, true, and accurate. MMRSA authorizes a state licensing authority to deny an application if specified conditions are met, and requires a state licensee, among other things, to obtain applicable local licenses prior to commencing commercial cannabis activity and to keep accurate records of commercial cannabis activity.
This bill would require a state licensee to institute and maintain a training program for the licensee’s agents and employees regarding compliance with MMRSA, as specified, and would require that an application for state licensure include a detailed description of the applicant’s program, thereby modifying the crime of perjury and imposing a state-mandated local program. The bill would make the bureau the sole state agency responsible for approving and regulating the programs and would prohibit the bureau from approving a program provided by or through certain apprenticeship programs. The bill would require a state licensing authority to deny the application of an applicant that does not have, or revoke the license of a state licensee that fails to institute or maintain, a program approved by the bureau.
(2) 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 19322 of the Business and Professions
2Code is amended to read:
(a) A person or entity shall not submit an application
4for a state license issued by the department pursuant to this chapter
5unless that person or entity has received a license, permit, or
6authorization by a local jurisdiction. An applicant for any type of
7state license issued pursuant to this chapter shall do all of the
9(1) Electronically submit to the Department of Justice fingerprint
10images and related information required by the Department of
11Justice for the purpose of obtaining information as to the existence
12and content of a record of state or federal convictions and arrests,
13and information as to the existence and content of a record of state
14or federal convictions and arrests for which the Department of
15Justice establishes that the person is free on bail or on his or her
16own recognizance, pending trial or appeal.
P3 1(A) The Department of Justice shall provide a response to the
2licensing authority pursuant to paragraph (1) of subdivision (p) of
3Section 11105 of the Penal Code.
4(B) The licensing authority shall request from the Department
5of Justice subsequent notification service, as provided pursuant to
6Section 11105.2 of the Penal Code, for applicants.
7(C) The Department of Justice shall charge the applicant a fee
8sufficient to cover the reasonable cost of processing the requests
9described in this paragraph.
10(2) Provide documentation issued by the local jurisdiction in
11which the proposed business is operating certifying that the
12applicant is or will be in compliance with all local ordinances and
14(3) Provide evidence of the legal right to occupy and use the
15proposed location. For an applicant seeking a cultivator, distributor,
16manufacturing, or dispensary license, provide a statement from
17the owner of real property or their agent where the cultivation,
18distribution, manufacturing, or dispensing commercial medical
19cannabis activities will occur, as proof to demonstrate the
20landowner has acknowledged and consented to permit cultivation,
21distribution, manufacturing, or dispensary activities to be conducted
22on the property by the tenant applicant.
23(4) If the
application is for a cultivator or a dispensary, provide
24evidence that the proposed location is located beyond at least a
25600-foot radius from a school, as required by Section 11362.768
26of the Health and Safety Code.
27(5) Provide a statement, signed by the applicant under penalty
28of perjury, that the information provided is complete, true, and
30(6) (A) For an applicant with 20 or more employees, provide
31a statement that the applicant will enter into, or demonstrate that
32it has already entered into, and abide by the terms of a labor peace
34(B) For the purposes of this paragraph, “employee” does not
35include a supervisor.
purposes of this paragraph, “supervisor” means an
37individual having authority, in the interest of the licensee, to hire,
38transfer, suspend, lay off, recall, promote, discharge, assign,
39reward, or discipline other employees, or responsibility to direct
40them or to adjust their grievances, or effectively to recommend
P4 1such action, if, in connection with the foregoing, the exercise of
2that authority is not of a merely routine or clerical nature, but
3requires the use of independent judgment.
4(7) Provide the applicant’s seller’s permit number issued
5pursuant to Part 1 (commencing with Section 6001) of Division 2
6of the Revenue and Taxation Code or indicate that the applicant
7is currently applying for a seller’s permit.
8(8) Provide any other information required by the licensing
10(9) For an applicant seeking a cultivation license, provide a
11statement declaring the applicant is an “agricultural employer,” as
12defined in the Alatorre-Zenovich-Dunlap-Berman Agricultural
13Labor Relations Act of 1975 (Part 3.5 (commencing with Section
141140) of Division 2 of the Labor Code), to the extent not prohibited
16(10) For an applicant seeking licensure as a testing laboratory,
17register with the State Department of Public Health and provide
18any information required by the State Department of Public Health.
19(11) Pay all applicable fees required for licensure by the
21(b) For applicants seeking licensure to cultivate, distribute,
22manufacture medical cannabis, the application shall also include
23a detailed description of the applicant’s operating procedures for
24all of the following, as required by the licensing authority:
26(2) Extraction and infusion methods.
27(3) The transportation process.
28(4) Inventory procedures.
29(5) Quality control procedures.
30(c) For all applicants, the application shall also include a detailed
31description of the agent and employee training program that the
32applicant has instituted, or will institute, pursuant to Section
33 19326.5. A licensing authority shall not approve an application
34unless the applicant’s training program is approved by the bureau.
35The bureau shall not approve a training program provided, or
36proposed to be provided, by or through an apprenticeship program
37approved by the Chief of the Division of Apprenticeship Standards.
Section 19323 of the Business and Professions Code
39 is amended to read:
(a) The licensing authority shall deny an application
2if either the applicant or the premises for which a state license is
3applied do not qualify for licensure under this chapter.
4(b) The licensing authority may deny the application for
5licensure or renewal of a state license if any of the following
7(1) Failure to comply with the provisions of this chapter or any
8rule or regulation adopted pursuant to this chapter, including but
9not limited to, any requirement imposed to protect natural
10resources, instream flow, and water quality pursuant to subdivision
11(a) of Section 19332.
12(2) Conduct that constitutes grounds for denial of licensure
13pursuant to Chapter 2 (commencing with Section 480) of Division
15(3) A local agency has notified the licensing authority that a
16licensee or applicant within its jurisdiction is in violation of state
17rules and regulation relating to commercial cannabis activities,
18and the licensing authority, through an investigation, has
19determined that the violation is grounds for termination or
20revocation of the license. The licensing authority shall have the
21authority to collect reasonable costs, as determined by the licensing
22authority, for investigation from the licensee or applicant.
23(4) The applicant has failed to provide information required by
24the licensing authority.
25(5) The applicant or licensee has been convicted of an offense
26that is substantially related to the qualifications, functions, or duties
27of the business or profession for which the application is made,
28except that if the licensing authority determines that the applicant
29or licensee is otherwise suitable to be issued a license and granting
30the license would not compromise public safety, the licensing
31authority shall conduct a thorough review of the nature of the
32crime, conviction, circumstances, and evidence of rehabilitation
33of the applicant, and shall evaluate the suitability of the applicant
34or licensee to be issued a license based on the evidence found
35through the review. In determining which offenses are substantially
36related to the qualifications, functions, or duties of the business or
37profession for which the application is made, the licensing authority
38shall include, but not be limited to, the following:
P6 1(A) A felony conviction for the illegal possession for sale, sale,
2manufacture, transportation, or cultivation of a controlled
4(B) A violent felony conviction, as specified in subdivision (c)
5of Section 667.5 of the Penal Code.
6(C) A serious felony conviction, as specified in subdivision (c)
7of Section 1192.7 of the Penal Code.
8(D) A felony conviction involving fraud, deceit, or
10(6) The applicant, or any of its officers, directors, or owners, is
11a licensed physician making patient recommendations for medical
12cannabis pursuant to Section 11362.7 of the Health and Safety
14(7) The applicant or any of its officers, directors, or owners has
15been subject to fines or penalties for cultivation or production of
16a controlled substance on public or private lands pursuant to
17Section 12025 or 12025.1 of the Fish and Game Code.
18(8) The applicant, or any of its officers, directors, or owners,
19has been sanctioned by a licensing authority or a city, county, or
20city and county for unlicensed commercial medical cannabis
21activities or has had a license revoked under this chapter in the
22three years immediately preceding the date the application is filed
23with the licensing authority.
24(9) Failure to obtain and maintain a valid seller’s permit required
25pursuant to Part 1 (commencing with Section 6001) of Division 2
26of the Revenue and Taxation Code.
27(c) The licensing authority shall deny an application unless the
28 applicant’s agent and employee training program is approved by
29the bureau pursuant to subdivision (c) of Section 19322.
Section 19326.5 is added to the Business and
31Professions Code, to read:
(a) A licensee shall institute and maintain a training
33program to educate, inform, and train the licensee’s agents and
34employees on compliance with this chapter. The training program
begin delete mustend delete be approved by the bureau and begin delete mustend delete include, but
36is not limited to, training on applicable substantive legal
37requirements, industry best practices, occupational health and
38safety standards, and individual organizational or company policies.
P7 1(b) (1) The bureau shall adopt standards for the approval of
2training programs and shall be the sole state agency responsible
3for approving and regulating the training programs.
4(2) The bureau shall not approve a training program provided,
5or proposed to be provided, by or through an apprenticeship
6program approved by the Chief of the Division of Apprenticeship
8(c) A state licensing authority shall revoke the license of any
9licensee that fails to institute or maintain a training program
10approved by the bureau pursuant to this section.
No reimbursement is required by this act pursuant to
12Section 6 of Article XIII B of the California Constitution because
13the only costs that may be incurred by a local agency or school
14district will be incurred because this act creates a new crime or
15infraction, eliminates a crime or infraction, or changes the penalty
16for a crime or infraction, within the meaning of Section 17556 of
17the Government Code, or changes the definition of a crime within
18the meaning of Section 6 of Article XIII B of the California