BILL ANALYSIS Ó
AB 26
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Date of Hearing: January 12, 2016
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Susan Bonilla, Chair
AB 26
Jones-Sawyer - As Amended January 4, 2016
SUBJECT: Medical cannabis.
SUMMARY: Requires a licensee under the Medical Marijuana
Regulation and Safety Act (MMRSA) to institute and maintain a
training program to educate, inform, and train the licensee's
agents and employees regarding compliance with the MMRSA, and
requires the Bureau of Medical Marijuana Regulation (Bureau) to
approve and regulate the training programs.
EXISTING LAW:
1)Prohibits the possession, possession with intent to sell,
cultivation, sale, transportation, importation, or furnishing
of marijuana, except as otherwise provided by law. (Health
and Safety Code (HSC) Sections 11357, 11358, 11359, and 11360)
2)Prohibits prosecution of a patient or a patient's primary
caregiver, under the Compassionate Use Act of 1996 (CUA), an
initiative measure, for possessing or cultivating marijuana
for personal medical purposes of the patient upon the written
or oral recommendation or approval of a physician. (HSC
Section 11362.5)
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3)Provides that qualified patients, persons with valid
identification cards, and their designated primary caregivers
who associate in order to collectively or cooperatively to
cultivate marijuana, are not subject to criminal liability
solely on that basis, until one year after the Bureau begins
issuing licenses under the MMRSA. (HSC Section 11362.775)
4)Enacts the MMRSA, which provides for the state licensure and
regulation of commercial cannabis activities, including
cultivation, possession, manufacture, processing, storing,
laboratory testing, labeling, transporting, distribution, and
sale of medical cannabis or medical cannabis products.
(Business and Professions Code (BPC) Section 19300 et seq.)
5)Establishes the Bureau within the Department of Consumer
Affairs (DCA), and requires the Bureau, the California
Department of Public Health (CDPH), and the California
Department of Food and Agriculture (CDFA) to administer the
MMRSA and promulgate regulations for implementation of the
act. (BPC Section 19300 et seq.)
6)Vests in the DCA the sole authority to create, issue, renew,
discipline, suspend, or revoke licenses for medical marijuana
activities, including licenses for dispensaries, distributors,
and transporters. Prohibits a licensee from holding more than
one license except as specified. (BPC Sections 19302.1,
19328)
7)Allows the Bureau to convene an advisory committee to advise
the Bureau and licensing authorities on the development of
standards and regulations, including best practices and
guidelines to ensure qualified patients have adequate access
to MM and MM products. (BPC Section 19306)
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8)Provides that the actions of a licensee permitted pursuant to
both a state license and a license or permit issued by the
local jurisdiction following the requirements of the
applicable local ordinances, and conducted in accordance with
the MMRSA are not unlawful under state law. (BPC Section
19317)
9)Prohibits a person from engaging in commercial cannabis
activity without possessing both a state license and a local
permit or other authorization upon the date of implementation
of regulations by the licensing authority. (BPC Section
19320)
10)Requires an applicant for a state license to, among other
things, submit fingerprints to the Department of Justice, and
provide documentation, issued by the local jurisdiction,
certifying that the applicant is in compliance with all local
ordinances and regulations; evidence of the legal right to
occupy the proposed location; for applicants with 20 or more
employees, provide a statement that the applicant will enter
into, or already has entered into, a labor peace agreement; a
seller's permit number; and other specified information. (BPC
Section 19322)
11)Requires applicants seeking licensure to cultivate,
distribute, or manufacture medical cannabis, to include a
detailed description of the applicant's operating procedures
for all of the following as required by the licensing
authority: 1) cultivation; 2) extraction and infusion methods;
3) transportation procedures; 4) inventory procedures; and 5)
quality control procedures. (BPC Section 19322)
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12)Requires the Bureau to deny an application if the applicant
or the premises do not qualify for licensure or fail to comply
with the MMRSA. (BPC Section 19323)
13)Allows licensing authorities to take disciplinary action
against a licensee for any violation of any provision in this
bill, and requires a licensing authority to inform the Bureau
upon suspension or revocation of a license. (BPC Sections
19313, 19313.5)
14)Provides that nothing shall be interpreted to supersede or
limit existing local authority for law enforcement activity,
enforcement of local zoning requirements or local ordinances,
or enforcement of local permit or licensing requirements.
(BPC Section 19315)
15)Requires the CDPH to administer the provisions of the Act
related to the manufacturing and testing of medical cannabis
and to promulgate regulations governing the licensing of
manufacturers and testing laboratories. Requires the CDPH to
develop standards for the production and labeling of all
edible medical cannabis products. (BPC Sections 19332, 19341)
16)Requires all licensed cultivators and manufacturers to
package all medical cannabis and medical cannabis products in
tamper-evident packaging and to use a unique identifier to
identify and track the product, and requires the product to be
labeled as specified. (BPC Section 19326)
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17)Requires all licensees holding cultivation or manufacturing
licensees to send all medical cannabis and medical cannabis
products to a distributor for quality assurance and inspection
by the distribution licensee and for batch testing by a
testing licensee prior to distribution to a dispensary. (BPC
Section 19326)
18)Requires the CDFA to administer the provisions of the MMRSA
related to the cultivation of medical cannabis; to create,
issue, and suspend or revoke cultivation licenses for
violations of the Act; and to promulgate regulations governing
the licensing of indoor and outdoor cultivation sites. (BPC
Sections 19302.1, 19332)
19)Requires the CDFA, in consultation with the Bureau, to
establish a track and trace program for reporting the movement
of medical marijuana items throughout the distribution chain
that use a unique identifier and secure packaging, and is
capable of providing specified information, including the
licensee receiving the product, the transaction date, and the
cultivator from which the product originates. (BPC Section
19335)
20)Requires the CDFA to create an electronic database containing
the electronic shipping manifests which shall include the
quantity, or weight, and variety of products shipped and
received; estimated and actual times of departure and arrival;
and license number and unique identifiers issued by the
licensing authority for all licensees involved in the shipping
process. (BPC Section 19335)
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21)Requires the Bureau to establish minimum security
requirements for the commercial transportation and delivery of
medical cannabis and products. (BPC Section 19334)
22)Authorizes a county to impose a tax on the privilege of
cultivating, dispensing, producing, processing, preparing,
storing, providing, donating, selling, or distributing medical
cannabis or medical cannabis products by a licensee operating
pursuant to the MMRSA, as specified. (BPC Section 19348)
23)Provides for a General Fund or special fund loan, including
up to $10 million from the General Fund, to the Bureau to
support the initial regulatory activities authorized by MMRSA.
(BPC Section 19351)
24)Requires the Bureau to establish a grant program to fund
activities by state and local law enforcement to remedy the
environmental effects of cannabis cultivation, payable from
fines and penalties charged pursuant to the MMRSA after all
outstanding loans for the program are repaid. (BPC Section
19351)
25)Directs the State Board of Equalization (BOE) to adopt a
system, in consultation with the CDFA, to report the movement
of commercial cannabis and cannabis products throughout the
distribution chain, which must not duplicate CDFA's track and
trace program. (Revenue and Taxation Code Section 31020)
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26)Requires, beginning March 1, 2023, and on or before March 1
of each following year, each licensing authority to prepare
and submit to the Legislature an annual report on the
authority's activities and post it on its Internet Web site,
as specified. (BPC Section 19353)
27)By January 1, 2017, requires the Division of Occupational
Safety and Health to convene an advisory committee to evaluate
whether there is a need to develop industry-specific
regulations related to the activities of licensed facilities.
(Labor Code Section 147.5)
THIS BILL:
1)Requires a licensee to institute and maintain a training
program to educate, inform, and train the licensee's agents
and employees regarding compliance with the MMRSA.
2)Requires the Bureau to adopt standards for the approval of
training programs and to be the sole state agency responsible
for approving and regulating the training programs.
3)Prohibits the Bureau from approving a training program
provided or proposed to be provided by or through an
apprenticeship program approved by the Chief of the Division
of Apprenticeship Standards.
4)Requires an application for state licensure to include a
detailed description of the applicant's training program.
5)Requires a state licensing authority to deny the application
of an applicant that does not have or revoke the license of a
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state licensee that fails to institute or maintain a program
approved by the Bureau.
FISCAL EFFECT: Unknown. This bill is keyed fiscal by the
Legislative Counsel.
COMMENTS:
Purpose. This bill is sponsored by the United Food and
Commercial Workers Union, Western States Council (UFCW) .
According to the author, "It is essential that everyone
working in the medical marijuana industry be trained. Whether
they are working with patients in a dispensary, cultivating at
farms or assisting in the manufacture and processing of
products for consumption, they must be given training. These
workers, patients and the public need to know that those in
the medical marijuana industry are educated in the health,
safety and security standards set by the state."
The MMRSA. The MMRSA consisted of three separate bills which
were enacted together on Sept 11, 2015, to bring licensure and
regulation to the medical marijuana industry nearly 20 years
after the passage of Proposition 215 in 1996, which legalized
the use of medical marijuana. The bills created a
comprehensive state licensing system for the commercial
cultivation, manufacture, retail sale, transport,
distribution, delivery, and testing of medical cannabis. In
addition, the bills affirm local control and require licensure
by both a local government and the state in order for a
licensee to operate. The MMRSA went into effect on January 1,
2016, although licensure requirements will not go into effect
until the regulatory entities responsible for implementing the
act pass necessary regulations.
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Among other things, the MMRSA establishes the new Bureau under
the DCA, which is responsible for licensing and regulating
dispensaries, transporters, and distributors. In addition,
the CDPH is responsible for regulating manufacturers, testing
laboratories, and the production and labeling of edible
medical marijuana products. The CDFA is responsible for
regulating cultivation, and other state agencies, such as the
Department of Pesticide Regulation and the State Water
Resources Control Board, are responsible for developing
environmental standards.
Under the MMRSA, applicants seeking licensure to cultivate,
distribute, or manufacture medical cannabis are required to
include a detailed description of the applicant's operating
procedures for cultivation, extraction and infusion methods,
transportation process, inventory procedures, and quality
control procedures. This bill would additionally require all
applicants, including dispensaries and testing laboratories,
to include a detailed description of a training program for
its agents and employees, to be approved by the Bureau, as a
condition of licensure. Under the bill, the licensee would
institute and maintain the training program for its agents and
employees on compliance with the MMRSA. The training program
must also include training on legal requirements, best
industry practices, occupational health and safety standards,
and company policies. The Bureau would be required to adopt
standards to approve these training programs, and to regulate
these training programs.
Medical Marijuana Training and Education. Currently, there is a
small offering of voluntary education and training for persons
in the medical marijuana industry, ranging from schools that
provide a complete curriculum and certification program on
cannabis, to individual seminars and courses about the
industry. However, because this industry has not previously
been regulated, there are no statewide standards for what this
type of training should include.
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While this bill would impose mandatory training for a licensee's
employees and agents, at least one state, Colorado, has
adopted a similar albeit voluntary approach to training.
Under Colorado's Responsible Vendor Training Program, a
licensee may receive a responsible vendor designation if all
of its employees who sell or handle medical marijuana,
managers, and resident owners complete a medical marijuana
training program offered by a state approved provider. While
the program is voluntary, the benefit of such designation is
that if a local or state licensing authority initiates an
administrative action against a designated licensee, the
licensing authority may consider the designation as a
mitigating factor when imposing sanctions or penalties on the
licensee. The training programs are required to be at least
two hours long, and must have a core curriculum of relevant
statutory and regulatory requirements, including information
on proper identification of patients, age requirements, record
maintenance, liability, and enforcement. The training is also
required to include information about marijuana's effects on
the human body based on type of marijuana product, the amount
of time to feel impairment, and health and safety standards.
Currently, Colorado has approved four state approved
responsible vendor training programs, with training programs
costing roughly $150 per person per course.
Current Related Legislation. AB 567 (Gipson) of the current
legislative session would prohibit mobile, vehicular, or
technology platforms that enable qualified patients or primary
caregivers to arrange for any delivery with a third party;
would provide that a dispensary that employs or uses the
services of any person under 21 years of age for the sale or
delivery of medical cannabis or medical cannabis products is
subject to suspension or revocation of certain state or local
licenses; and would require tax penalty amnesty programs, for
medical cannabis-related businesses, as provided.
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AB 1548 (Wood) of the current legislative session would impose a
tax in specified amounts on the distribution in this state by
a cultivator of marijuana to a licensed distributor, as
specified; require the licensed distributor to collect the tax
from the cultivator and remit it to the BOE; and require all
moneys, less refunds and costs of administration, to be
deposited into the Marijuana Production and Environment
Mitigation Fund, as specified.
Prior Related Legislation. AB 266 (Bonta, Cooley, Jones-Sawyer,
Lackey, and Wood), Chapter 689, Statutes of 2015, enacted the
MMRSA for the licensure and regulation of medical marijuana
and established the Bureau within the DCA, under the
supervision and control of the Director of the DCA, and
required the Director to administer and enforce the provisions
of the Act. AB 266 also required the CDFA to administer the
provisions of the act related to cultivation, and required the
CDPH to administer the provisions of the Act related to
manufacturing and testing of medical cannabis. The bill also
required the BOE, in consultation with the CDFA, to adopt a
system for reporting the movement of commercial cannabis and
cannabis products.
AB 243 (Wood), Chapter 688, Statutes of 2015, required the CDFA,
the DPR, the CDPH, the DFW, and the SWRCB to promulgate
regulations or standards relating to medical marijuana and its
cultivation, as specified, required various state agencies to
take specified actions to mitigate the impact that marijuana
cultivation has on the environment, and established the MMRSA
Fund.
SB 643 (McGuire), Chapter 719, Statutes of 2015, set forth
standards for a physician and surgeon prescribing medical
cannabis, required the Medical Board of California to
prioritize its investigative and prosecutorial resources to
identify and discipline physicians and surgeons that have
repeatedly recommended excessive cannabis to patients for
medical purposes or repeatedly recommended cannabis to
patients for medical purposes without a good faith
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examination, as specified, authorized counties to impose a tax
upon specified cannabis-related activity, and set forth
standards for the licensed cultivation of medical cannabis.
ARGUMENTS IN SUPPORT:
The United Food and Commercial Workers Union, Western States
Council (UFCW) writes in support, "With the passage of the
Medical Marijuana Regulation and Safety Act, UFCW strongly
supports the creation of a robust program to train cannabis
workers in the industry at the [DCA]. Professional licensing
and safety standards are widely accepted norms throughout the
State of California for a variety of occupations and we should
do the same for workers employed in the cannabis industry.
Cannabis workers need vital knowledge of their product and how
best to serve the needs of people suffering from serious
diseases. UFCW Western States Council is committed to support
a regulatory framework that will protect and enhance cannabis
workers and consumers?.Moreover, a "Cannabis Worker Training
Certification Program" will ensure the rights of workers are
protected, health and safety standards are maintained and
ongoing product knowledge and skills development are sustained
with consistency throughout the cannabis industry similar to
pharmacy laboratory technicians, nurse assistants, dental
hygienists, physical therapists and cosmetologists."
POLICY ISSUES FOR CONSIDERATION: California has only recently
enacted the MMRSA, which goes into effect January 1, 2016.
Because there were previously no requirements for the population
to be licensed under the Act, no statewide standards have been
developed regarding compliance with the MMRSA, or best practices
for various parts of the industry. While this bill would
require licensees to develop and have training programs for
their employees, it is unclear exactly what that training would
consist of, or how each licensee would be able to determine what
type of training would meet this requirement. And, while the
Bureau would be required to develop standards to approve these
training programs, this approval process may be onerous for the
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Bureau.
As a result, the author may wish to consider specifying that the
Bureau work to develop minimum standards for training programs,
taking into account various license types. For example,
dispensary licensees and employees may benefit from information
regarding the various types and amounts of active ingredients in
medical marijuana and how those ingredients affect patients,
while manufacturers may benefit from specialized information on
health and safety standards relating to production of edible
products. The author may also wish to consider requiring the
Bureau to approve training course providers, as state regulatory
entities typically do for trainings and required courses in
other licensed categories, and authorizing licensees to
incorporate the use of training providers so that licensees do
not have to develop or provide their own training and
curriculum, and can instead rely on a third party to provide
such training. In addition, while the bill currently requires
the Bureau to approve all training programs, the author may wish
to clarify that the Bureau or the appropriate licensing
authority, e.g., the CDFA or the CDPH, may also adopt standards
for and approve training programs in order to take advantage of
a licensing authority's expertise with regards to licensees and
standards under their jurisdiction. Lastly, the author may wish
to specify which types of employees and agents are required to
complete this training, and include a timeframe for new hires to
complete this training.
AMENDMENTS:
The author has agreed to the following technical amendments:
On page 10, line 4, strike "must" and insert "shall".
AB 26
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On page 10, line 4, after "and" strike "must" and insert
"shall".
Add a coauthor.
REGISTERED SUPPORT:
United Food and Commercial Workers Union, Western States Council
(sponsor)
REGISTERED OPPOSITION:
None on file.
Analysis Prepared by:Eunie Linden / B. & P. / (916) 319-3301