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
begin delete stateend delete licensee to implement, as specified, begin delete aend delete training program for the licensee’s begin delete agents andend delete employees regarding compliance with MMRSA, as specified. The bill would require an applicant with 20 or more employees to begin delete include in anend delete application begin delete for state licensure a detailed description of the training programend delete the applicant begin delete has implemented orend delete will begin delete implement,end delete thereby modifying the crime of perjury and imposing a state-mandated local program. The bill would begin delete make theend delete licensing authority begin delete responsible for approving and regulating the programs instituted and maintained by licensees and 3rd-party
providers of theend delete programs. The bill would prohibit the licensing authority from approving a program provided by or through certain apprenticeship programs. The bill would authorize the licensing authority to approve a workplace training organization, as defined, as a 3rd-party provider. begin delete The bill would require a state licensing authority to deny the application of an applicant that does not implement, or revoke the license of a state licensee that fails to implement within one year of obtaining a license, a program approved by the licensing authority or provided by an approved 3rd-party provider.end delete The bill would require each begin delete stateend delete licensing authority to charge begin delete each training program instituted and maintained by a licensee a fee, as specified, to cover the costs for approving the training program. The bill would require each state licensing authority to charge each 3rd-party provider ofend delete training begin delete programs a fee, as
specified, to cover the costs for approving the 3rd-party provider.end delete The bill would require that the fees collected be deposited in the appropriate account within the Medical Marijuana Regulation and Safety Act Fund. The bill would authorize each licensing authority to adjust fees as needed once a year to cover the costs of training program begin delete and 3rd-party providerend delete approval.
(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.
17(A) The Department of Justice shall provide a response to the
18licensing authority pursuant to paragraph (1) of subdivision (p) of
19Section 11105 of the Penal Code.
20(B) The licensing authority shall request from the Department
21of Justice subsequent notification service, as provided pursuant to
22Section 11105.2 of the Penal Code, for applicants.
23(C) The Department of Justice shall charge the applicant a fee
24sufficient to cover the reasonable cost of processing the requests
25described in this paragraph.
documentation issued by the local jurisdiction in
27which the proposed business is operating certifying that the
P4 1applicant is or will be in compliance with all local ordinances and
3(3) Provide evidence of the legal right to occupy and use the
4proposed location. For an applicant seeking a cultivator, distributor,
5manufacturing, or dispensary license, provide a statement from
6the owner of real property or their agent where the cultivation,
7distribution, manufacturing, or dispensing commercial medical
8cannabis activities will occur, as proof to demonstrate the
9landowner has acknowledged and consented to permit cultivation,
10distribution, manufacturing, or dispensary activities to be conducted
11on the property by the tenant applicant.
12(4) If the application is for a
cultivator or a dispensary, provide
13evidence that the proposed location is located beyond at least a
14600-foot radius from a school, as required by Section 11362.768
15of the Health and Safety Code.
16(5) Provide a statement, signed by the applicant under penalty
17of perjury, that the information provided is complete, true, and
19(6) (A) For an applicant with 20 or more employees, provide
20a statement that the applicant will enter into, or demonstrate that
21it has already entered into, and abide by the terms of a labor peace
23(B) For the purposes of this paragraph, “employee” does not
24include a supervisor.
25(C) For purposes
of this paragraph, “supervisor” means an
26individual having authority, in the interest of the licensee, to hire,
27transfer, suspend, lay off, recall, promote, discharge, assign,
28reward, or discipline other employees, or responsibility to direct
29them or to adjust their grievances, or effectively to recommend
30such action, if, in connection with the foregoing, the exercise of
31that authority is not of a merely routine or clerical nature, but
32requires the use of independent judgment.
33(7) Provide the applicant’s seller’s permit number issued
34pursuant to Part 1 (commencing with Section 6001) of Division 2
35of the Revenue and Taxation Code or indicate that the applicant
36is currently applying for a seller’s permit.
37(8) Provide any other information required by the licensing
39(9) For an applicant seeking a cultivation license, provide a
40statement declaring the applicant is an “agricultural employer,” as
P5 1defined in the Alatorre-Zenovich-Dunlap-Berman Agricultural
2Labor Relations Act of 1975 (Part 3.5 (commencing with Section
31140) of Division 2 of the Labor Code), to the extent not prohibited
5(10) For an applicant seeking licensure as a testing laboratory,
6register with the State Department of Public Health and provide
7any information required by the State Department of Public Health.
8(11) Pay all applicable fees required for licensure by the
10(b) For applicants seeking licensure to cultivate,
11manufacture medical cannabis, the application shall also include
12a detailed description of the applicant’s operating procedures for
13all of the following, as required by the licensing authority:
15(2) Extraction and infusion methods.
16(3) The transportation process.
17(4) Inventory procedures.
18(5) Quality control procedures.
begin deleteFor applicants end deletewith
2020 or more
begin delete employees, the applicationend delete shall begin delete also include
21a detailed description of the agent and employee training program
22that the applicant has implemented, or will implement, pursuant
23to Section 19326.5. A licensing authority shall not approve an
24application unless the applicant’s training program or the
25third-party provider of the applicant’s training program is approved
26by the licensing authority. The licensing authority shall not approve
27a training program provided, or proposed to be provided, by or
28through an apprenticeship program approved by the Chief of the
29Division of Apprenticeship Standards.end delete
Section 19323 of the Business and Professions Code
34 is amended to read:
(a) The licensing authority shall deny an application
36if either the applicant or the premises for which a state license is
37applied does not qualify for licensure under this chapter.
38(b) The licensing authority may deny the application for
39licensure or renewal of a state license if any of the following
P6 1(1) Failure to comply with the provisions of this chapter or any
2rule or regulation adopted pursuant to this chapter, including, but
3not limited to, any requirement imposed to protect natural
4resources, instream flow, and water quality pursuant to subdivision
5(a) of Section 19332.
6(2) Conduct that constitutes grounds for denial of licensure
7pursuant to Chapter 2 (commencing with Section 480) of Division
9(3) A local agency has notified the licensing authority that a
10licensee or applicant within its jurisdiction is in violation of state
11rules and regulation relating to commercial cannabis activities,
12and the licensing authority, through an investigation, has
13determined that the violation is grounds for termination or
14revocation of the license. The licensing authority shall have the
15authority to collect reasonable costs, as determined by the licensing
16 authority, for investigation from the licensee or applicant.
17(4) The applicant has failed to provide information required by
18the licensing authority.
19(5) The applicant or licensee has been convicted of an offense
20that is substantially related to the qualifications, functions, or duties
21of the business or profession for which the application is made,
22except that if the licensing authority determines that the applicant
23or licensee is otherwise suitable to be issued a license and granting
24the license would not compromise public safety, the licensing
25authority shall conduct a thorough review of the nature of the
26crime, conviction, circumstances, and evidence of rehabilitation
27of the applicant, and shall evaluate the suitability of the applicant
28or licensee to be issued a license based on the evidence found
29through the review. In determining which offenses are substantially
30related to the qualifications, functions, or duties of the business or
31profession for which the application is made, the licensing authority
32shall include, but not be limited to, the following:
33(A) A felony conviction for the illegal possession for sale, sale,
34manufacture, transportation, or cultivation of a controlled
36(B) A violent felony conviction, as specified in subdivision (c)
37of Section 667.5 of the Penal Code.
38(C) A serious felony conviction, as specified in subdivision (c)
39of Section 1192.7 of the Penal Code.
P7 1(D) A felony conviction involving fraud, deceit, or
3(6) The applicant, or any of its officers, directors, or owners, is
4a licensed physician making patient recommendations for medical
5cannabis pursuant to Section 11362.7 of the Health and Safety
7(7) The applicant or any of its officers, directors, or owners has
8been subject to fines or penalties for cultivation or production of
9a controlled substance on public or private lands pursuant to
10Section 12025 or 12025.1 of the Fish and Game Code.
11(8) The applicant, or any of its officers, directors, or owners,
12has been sanctioned by a licensing authority or a city, county, or
13city and county for unlicensed commercial medical cannabis
14activities or has had a license revoked under this chapter in the
15three years immediately preceding the date the application is filed
16with the licensing authority.
17(9) Failure to obtain and maintain a valid seller’s permit required
18pursuant to Part 1 (commencing with Section 6001) of Division 2
19of the Revenue and Taxation Code.
begin deleteThe end deletelicensing authority shall
21deny an application
22 unless the
begin delete agent and employee training program that the applicant
23implements is approved by the licensing authority or provided by
24an approved third-party provider pursuant to subdivision (c) of
25Section 19322.end delete
Section 19326.5 is added to the Business and
30Professions Code, to read:
(a) A licensee shall implement
begin delete aend delete training
32program to educate, inform, and train the licensee’s
begin delete agents andend delete
33 employees on compliance with this chapter. A licensee
begin delete shall a
34implement a training program by either instituting and maintaining
35a training program or hiringend delete
36 third-party provider
begin delete approved by the state
licensing authorityend delete
begin delete aend delete training program. begin delete Aend delete training
begin delete instituted and maintained by a licensee shall be approved shall include, but is not limited
39by the state licensing authority andend delete
40to, training on applicable statutory requirements, industry best
P8 1practices, occupational health and safety standards, and workplace
3(b) (1) Each
begin delete stateend delete licensing authority shall adopt standards for
4the approval of training
begin delete programs instituted and
5maintained by a licensee and standards for the approval of
6third-party providers of training programs. Each state licensing
7authority shall be responsible for approving and regulating training
8programs and third-party providers of training programs relevant
9to their licensees.end delete
13(2) A state licensing authority shall not approve a training
14program provided, or proposed to be provided, by or through an
15apprenticeship program approved by the Chief of the Division of
17(3) A stateend delete
licensing authority may approve a workplace training
19organization as a third-party
begin delete provider.end delete For purposes of this paragraph, a “workplace
21training organization” is a labor union organization
begin delete in good representing wage earners or salaried employees for
23mutual aid and protection and for dealing collectively with cannabis
begin delete stateend delete licensing authority shall revoke the license of any
26licensee that fails to implement
begin delete aend delete training program as required by this section within one
begin delete the licensee’s obtaining a license.end delete
begin delete(1)end delete begin delete end delete begin deleteEach state end deletelicensing authority shall charge begin delete each
30training program instituted and maintained by a licensee a fee to
31cover costs incurred for approving the training program pursuant
32to this section. Each state licensing authority shall charge each
33third-party provider of training programs a fee to cover costs
34incurred for approving the third-party provider pursuant to this
36 Revenues collected pursuant to this subdivision shall be deposited
37in the appropriate fee account within the Medical Marijuana
38Regulation and Safety Act Fund established pursuant to Section
3919350. Total fees assessed shall not exceed the reasonable
begin delete costs for training program or third-party provider Each licensing authority may adjust fees as needed,
P9 1approval.end delete
2but no more than once per year, to generate sufficient revenue to
3cover the costs of training program
begin delete and third-party approval.
5(2) By July 1, 2018, revenue collected pursuant to this
6subdivision shall be projected to fairly and proportionately generate
7sufficient revenue to fully cover the costs of training program and
8third-party provider approval.
No reimbursement is required by this act pursuant to
11Section 6 of Article XIII B of the California Constitution because
12the only costs that may be incurred by a local agency or school
13district will be incurred because this act creates a new crime or
14infraction, eliminates a crime or infraction, or changes the penalty
15for a crime or infraction, within the meaning of Section 17556 of
16the Government Code, or changes the definition of a crime within
17the meaning of Section 6 of Article XIII B of the California