Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 34

Introduced by Assembly Member Bonta

December 1, 2014

An act begin insert to amend Sections 2220.05, 2242, and 2264 of, and to add Chapter 18 (commencing with Section 26000) to Division 9 of, the Business and Professions Code, to add Section 23028 to the Government Code, to amend Section 11362.775 of the Health and Safety Code, and to amend Section 1155.7 of, and to add Sections 1158.5 and 3094 to, the Labor Code end insert begin insert , end insert relating to medical begin delete cannabis. end delete begin insert cannabis, and making an appropriation therefor end insert begin insert . end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 34, as amended, Bonta. Medical begin delete cannabis: state regulation. end delete begin insert cannabis regulation and enforcement. end insert

begin insert

(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.

end insert begin insert

Existing law enacted by the Legislature, commonly referred to as the Medical Marijuana Program Act (MMPA), requires the establishment of a program for the issuance of identification cards to qualified patients so that they may use marijuana for medical purposes without arrest or prosecution under specified state law, and requires the establishment of guidelines for the lawful cultivation of marijuana grown for medical use.

end insert begin insert

This bill would enact the Medical Cannabis Regulation and Control Act and would establish the Division of Medical Cannabis Regulation and Enforcement within the Department of Alcoholic Beverage Control.

end insert begin insert

This bill would, 180 days after the division posts a specified notice on its Internet Web site, make those provisions of the MMPA that prohibit prosecution of qualified patients, persons with valid identification cards, and designated primary caregivers who associate in California, collectively or cooperatively, to cultivate marijuana for medical purposes, inapplicable to licensees. The bill would, thereafter, permit a dispensary to provide patients with medical marijuana and medical marijuana products obtained only from persons licensed under this bill.

end insert begin insert

This bill would require the division to license persons to engage in the various aspects of commercial cannabis activity, as defined. The bill would designate as peace officers the Director of the Department of Alcoholic Beverage Control and persons employed by the division to administer and enforce its provisions. The bill would prescribe requirements for the issuance, renewal, suspension, and revocation of a mandatory commercial license and would authorize the assessment of related fees.

end insert begin insert

This bill would not preclude a city or county from adopting local ordinances, consistent with this bill, that regulate the location, operation, or establishment of a licensee. The bill would require state agencies to collaborate with local agencies, and would require local agencies to, within the scope of their jurisdiction, assist state agencies in the enforcement of this chapter. By imposing these enforcement duties on local agencies, this bill would impose a state-mandated local program.

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This bill would establish the Medical Marijuana Regulation Fund with separate accounts for fees and for penalties, and would require deposit of fees and penalties into their respective accounts within the fund. The bill would continuously appropriate fees deposited into the fund to the division for the purposes of administering the program.

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This bill would authorize the division to establish a regulation and enforcement assistance grant program and would authorize the Department of Transportation to conduct research, and develop protocols, regarding determining whether a driver is operating a vehicle under the influence of marijuana to assist law enforcement agencies. The bill would make the fines and penalties deposited into the fund available, upon appropriation by the Legislature, for funding these programs.

end insert begin insert

This bill would require the division to, as soon as practicable, adopt emergency regulations for the issuance of provisional licenses for persons who within the 12-month period preceding January 1, 2016, were engaged in medical cannabis activities, as prescribed, and would require the division to begin accepting applications for provisional licenses commencing January 1, 2016.

end insert begin insert

This bill would require the division to adopt regulations necessary for the implementation and enforcement of this bill in consultation with prescribed state agencies relating to environmental, agricultural, consumer protection, worker safety, and food and product safety requirements. The bill would authorize the division to enter into interagency agreements to pay, from fees deposited into the fund, the associated costs incurred by these state agencies.

end insert begin insert

This bill would establish a cannabis employee certification, training, and apprenticeship program. The bill would require the Division of Labor Standards Enforcement to maintain and enforce minimum standards of competency and training and to certify cannabis employees. The bill would require the Division of Labor Standards Enforcement to establish a cannabis curriculum certification committee to establish educational curriculum standards and to oversee educational providers of cannabis curriculum.

end insert begin insert

This bill would require a licensee to keep various records in connections with commercial cannabis activities and would prescribe requirements for making records available to the division and any state or local agency. The bill would exclude certain patient and caregiver information from disclosure to the public. With regard to limitations contained in this bill of the public’s right to access certain patient information, the bill would make findings for the purposes of Section 3 of Article I of the California Constitution, regarding the interest to be protected and the need for protecting that interest.

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This bill would declare that it does not apply to, or diminish the protections granted to, a patient or primary caregiver acting pursuant to the Compassionate Use Act of 1996 and would exempt these parties from the application of the act.

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This bill would declare that the actions of a licensee or provisional licensee, its employees, and its agents that are within the scope of a valid license are not unlawful under state law, as specified. The bill would provide similar state law immunity for a property owner who allows his or her property to be used by a licensee or provisional licensee.

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This bill would require the division to work in conjunction with law enforcement entities throughout the state to implement and enforce the rules and regulations regarding medical cannabis and to take appropriate action against businesses and individuals that fail to comply with the law.

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This bill would authorize the director of the division, and prescribed local entities, to bring an action to enjoin violations. The bill would require the division to establish a digital database and to allow on its Internet Web site to permit state and local law enforcement agencies to verify licenses.

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This bill would make certain violations of its provisions a crime, thereby imposing a state-mandated local program.

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(2) Existing law, the Medical Practice Act, establishes the Medical Board of California and sets forth its powers and duties, including, but not limited to the licensing and regulation of physicians and surgeons. Existing law sets forth the conduct that would constitute unprofessional conduct for a physician and surgeon, including, but not limited to, prescribing certain drugs without an appropriate examination or medical indication. Existing law generally makes a violation of these provisions a misdemeanor.

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This bill would specify that recommending marijuana to patients without a good faith examination and medical reason or recommending marijuana for nonmedical purposes is unprofessional conduct.

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This 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 Medical Board of California, as described above. The bill would deem as unprofessional conduct a physician and surgeon being employed by, or entering into an agreement with, a medical cannabis licensee to provide recommendations for medical marijuana.

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By broadening the definition of a crime, the bill would impose a state-mandated local program.

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(3) Existing law authorizes the board of supervisors of a county and the governing body of a city 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 board or governing 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%.

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This bill would authorize the board of supervisors of a county to impose, by ordinance, a tax on the privilege of cultivating, dispensing, producing, processing, preparing, storing, providing, donating, selling, or distributing cannabis or cannabis products, including a transactions and use tax at any rate specified by the board. 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.

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(4) This bill would specify that its provisions are severable.

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(5) 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.

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This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

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With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

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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, commonly referred to as the Medical Marijuana Program Act, 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.

end delete begin delete

This bill would declare the intent of the Legislature to enact legislation that would establish a comprehensive and uniform state regulatory structure to govern the cultivation, processing, testing, and distribution of medical cannabis.

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Vote: majority. Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert The Legislature finds and declares all of the
following: end insert

begin insert

(a) The people of California enacted the Compassionate Use
Act of 1996 to ensure that seriously ill Californians have access
to marijuana for medical purposes. The Compassionate Use Act
of 1996 urged the state and federal governments to implement a
plan to provide for the safe and affordable distribution of medical
marijuana to all patients in medical need of the drug.

end insert begin insert

(b) Under federal law, marijuana is a Schedule 1 drug. Its
placement in that schedule is based upon a finding that marijuana
has no currently accepted medical use. That finding, if correct at
the time it was made, is no longer accurate. California, exercising
its traditional power to regulate the practice of medicine, has
determined that marijuana has a significant role to play.

end insert begin insert

(c) California, acting alone, is powerless to change federal law
and to correct this misunderstanding in federal law about the role
that marijuana can and does play in the practice of medicine.
However, federal enforcement authorities have recognized that in
states that have authorized marijuana use and have enacted strong
and effective regulatory and enforcement systems to control the
cultivation, distribution, sale, and possession of marijuana, conduct
in compliance with those regulatory and enforcement systems is
less likely to threaten federal priorities and, thus, less likely to
require federal enforcement intervention (See: Memorandum For
All United States Attorneys--Guidance Regarding Marijuana
Enforcement, by James M. Cole, Deputy Attorney General, August
29, 2013).

end insert begin insert

(d) The purpose of this act is to establish for California a robust
medical cannabis regulatory and enforcement system to ensure
that conduct in compliance with California’s medical marijuana
laws does not threaten the federal priorities as set forth in the
James M. Cole memorandum, and therefore, does not require
federal enforcement intervention.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 2220.05 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

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 begin delete substances end delete
begin insert substances, or recommending marijuana to patients for medical
purposes, end insert 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).

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 2242 of the end insert begin insert Business and Professions Code end insert begin insert is
amended to read: end insert

2242.  

(a) Prescribing, dispensing, or furnishing dangerous
drugs as defined in Section 4022 without an appropriate prior
examination and a medical indication, constitutes unprofessional
conduct. begin insert Prescribing or recommending marijuana to a patient for
a medical purpose without an appropriate in-person prior
examination and a medical indication, or recommending marijuana
for a nonmedical purpose, constitutes unprofessional conduct. end insert

(b) No licensee shall be found to have committed unprofessional
conduct within the meaning of this section if, at the time the drugs
were prescribed, dispensed, or furnished, any of the following
applies:

(1) The licensee was a designated physician and surgeon or
podiatrist serving in the absence of the patient’s physician and
surgeon or podiatrist, as the case may be, and if the drugs were
prescribed, dispensed, or furnished only as necessary to maintain
the patient until the return of his or her practitioner, but in any case
no longer than 72 hours.

(2) The licensee transmitted the order for the drugs to a
registered nurse or to a licensed vocational nurse in an inpatient
facility, and if both of the following conditions exist:

(A) The practitioner had consulted with the registered nurse or
licensed vocational nurse who had reviewed the patient’s records.

(B) The practitioner was designated as the practitioner to serve
in the absence of the patient’s physician and surgeon or podiatrist,
as the case may be.

(3) The licensee was a designated practitioner serving in the
absence of the patient’s physician and surgeon or podiatrist, as the
case may be, and was in possession of or had utilized the patient’s
records and ordered the renewal of a medically indicated
prescription for an amount not exceeding the original prescription
in strength or amount or for more than one refill.

(4) The licensee was acting in accordance with Section 120582
of the Health and Safety Code.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 2264 of the end insert begin insert Business and Professions Code end insert begin insert is
amended to read: end insert

2264.  

The employing, directly or indirectly, the aiding, or the
abetting of any unlicensed person or any suspended, revoked, or
unlicensed practitioner to engage in the practice of medicine or
any other mode of treating the sick or afflicted which requires a
license to practice constitutes unprofessional conduct. begin insert Employment
by, or other agreement with, a mandatory commercial licensee
acting pursuant to the Medical Cannabis Regulation and Control
Act or a dispensary to provide recommendations for medical
marijuana constitutes unprofessional conduct. end insert

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Chapter 18 (commencing with Section 26000) is added
to Division 9 of the end insert begin insert Business and Professions Code end insert begin insert , to read: end insert

begin insert

 

Chapter   begin insert 18. end insert Medical Cannabis Regulation and Control

 

Article begin insert 1. end insert   General Provisions

 

begin insert 26000. end insert   

(a) This chapter shall be known, and may be cited, as
the Medical Cannabis Regulation and Control Act.

(b) It is the intent of the Legislature in enacting this chapter to
provide for the statewide regulation of the commercial cannabis
activity and the enforcement of laws relating to commercial
cannabis activities. This chapter is an exercise of the police powers
of the state for the protection of the safety, welfare, health, peace,
and morals of the people of the state.

begin insert 26001. end insert   

Without limiting the authority of a city or county
pursuant to Section 7 of Article XI of the California Constitution,
or any other provision of law, and subject to that authority, the
state shall have the exclusive right and power to regulate and
license persons for the cultivation, manufacture, transportation,
sale, and other related activities regarding medical cannabis within
the state. In the exercise of these rights and powers, the state and
each of its agencies are hereby deemed not to be engaged in
activities requiring licensure under this chapter.

begin insert 26002. end insert   

For the purpose of this chapter:

(a) “Department” means the Department of Alcoholic Beverage
Control.

(b) “Director” means the Director of the Department of
Alcoholic Beverage Control, unless the context otherwise clearly
indicates.

(c) “Division” means the Division of Medical Cannabis
Regulation and Enforcement within the department.

(d) “Cannabis” means all parts of the plant Cannabis sativa,
cannabis indica, or cannabis ruderalis, whether growing or not;
the seeds thereof; the resin, whether crude or purified, extracted
from any part of the plant; and every compound, manufacture,
salt, derivative, mixture, or preparation of the plant, its seeds, or
resin. It does not include the mature stalks of the plant, fiber
produced from the stalks, oil or cake made from the seeds of the
plant, any other compound, manufacture, salt, derivative, mixture,
or preparation of the mature stalks (except the resin extracted
therefrom), fiber, oil, or cake, or the sterilized seed of the plant
which is incapable of germination. “Cannabis” also means
marijuana as defined by Section 11018 of the Health and Safety
Code as enacted by Chapter 1407 of the Statutes of 1972.

(e) “Commercial cannabis activity” means any cultivation,
possession, manufacture, processing, storing, laboratory testing,
labeling, transporting, distribution, or sale of cannabis or cannabis
product, except as set forth in subdivision (b) of Section 26052.

(f) “Medical cannabis product,” “medical marijuana product”
or “cannabis product” means any product containing cannabis,
including, but not limited to concentrates and extractions intended
to be sold for use by medical marijuana patients in California
pursuant to the Compassionate Use Act of 1996 (Proposition 215).

(g) “Manufactured cannabis” means raw marijuana that has
undergone a process whereby the raw agricultural product has
been transformed into a concentrate, an edible product, or a topical
product.

(h) “Cannabis concentrate” means manufactured cannabis that
has undergone a process to concentrate the THC, active ingredient,
thereby increasing the product’s potency.

(i) “Terahydrocannabinol” or “THC” means a crystalline
compound that is the physiologically active ingredient of cannabis.

(j) “Edible cannabis product” means manufactured cannabis
that is intended to be used, in whole or in part, for human
consumption, including, but not limited to, chewing gum.

(k) “Topical cannabis” means manufactured product intended
for external use.

(l) “Identification program” means the universal identification
certificate program for licensees.

(m) “Mandatory commercial license” or “license” means a
mandatory commercial license issued pursuant to Article 3
(commencing with Section 26040).

(n) “licensee” means any person licensed under this chapter
to engage in commercial cannabis activity related to medical
cannabis as set forth in this chapter.

(o) “Dispensary” means a licensee that dispenses cannabis or
medical cannabis products.

(p) “Testing and labeling” means a labeling and quality
assurance plan that addresses all of the following:

(1) Potency.

(2) Chemical residue.

(3) Microbiological contaminants.

(4) Handling, care, and storage.

(5) Date and location of cultivation, processing, and
manufacturing.

(q) “Fund” means the Medical Cannabis Control Fund
established pursuant to Section 26028.

(r) “Person” means any individual, firm, partnership, joint
venture, association, corporation, limited liability company, estate,
trust, business trust, receiver, syndicate, or any other group or
combination acting as a unit and includes the plural as well as
the singular number.

begin insert 26010. end insert   

This chapter does not, nor does Article 2 (commencing
with Section 11357) and Article 2.5 (commencing with Section
11362.7) of Chapter 6 of Division 10 of the Health and Safety
Code, prevent a city or county from doing any of the following:

(a) Adopting local ordinances consistent with this chapter that
regulate the location, operation, or establishment of a licensee or
any person that cultivates, processes, possesses, stores,
manufactures, tests, transports, distributes, or sells medical
cannabis.

(b) The civil or criminal enforcement of the ordinances
described in subdivision (a).

(c) Establishing a fee or tax for the operation of a licensee within
its jurisdiction.

(d) Enacting and enforcing other laws or ordinances pursuant
to the authority granted by Section 7 of Article XI of the California
Constitution.

 

Article begin insert 2. end insert   Administration

 

begin insert 26020. end insert   

(a) The Division of Medical Cannabis Regulation and
Enforcement is hereby established within the Department of
Alcoholic Beverage Control. The division shall be administered
by a person who is appointed by the director. The division shall
administer this chapter.

(b) No person shall engage in commercial cannabis activity
unless licensed by the division under this chapter. The division
shall issue licenses to applicants to engage in commercial cannabis
activity pursuant to this chapter.

(c) The division shall adopt regulations as needed to implement
that licensing program as set forth in Article 3 (commencing with
Section 26040). The regulations shall, in addition, do all of the
following:

(1) Establish a scale of application, licensing, and renewal fees,
based upon the cost of enforcing this chapter, as follows:

(A) The division shall charge each applicant for licensure or
renewal an application or renewal fee that shall be calculated to
cover the costs of processing the application or renewal. This fee
may vary depending upon the varying costs associated with
approving the application or renewal related to the varying
activities covered by the license, but shall not exceed ___dollars
($____) for a initial application, and ____dollars ($____) for a
renewal application.

(B) Upon the issuance of a license, the division shall charge
each licensee a licensure fee. The licensure fee shall be calculated
to cover the costs of administering this chapter, other than the
costs of processing applications. The licensure fee may vary
depending upon the varying costs associated with administering
the various regulatory requirements of this chapter as they relate
to the nature and scope of the different licensure activities, but
shall not be less than ____ dollars ($____), nor more than ____
dollars ($____).

(C) The total fees assessed pursuant to this chapter, including,
but not limited to, provisional license fees set forth in Section
26054, shall be set in at an amount that will fairly and
proportionately generate sufficient total revenue to fully cover the
total costs of administering this chapter, including, but not limited
to, costs set forth in Section 26023.

(2) Establish procedures for approval or denial of applications
for licensure for each and every aspect of commercial cannabis
activity, including, but not limited to, cultivation, possession,
manufacture, processing, storing, laboratory testing, labeling,
transporting, distribution, and sale of cannabis.

(3) Establish applicant qualifications.

(4) Establish licensee employee qualifications, including, but
not limited to, training and screening requirements.

(5) Establish licensee security requirements, including, but not
limited to, procedures to limit access to facilities and to prevent
diversion of product to nonmedical use.

(6) Establish procedures and protocols for identifying,
managing, and disposing of contaminated, adulterated,
deteriorated or excess product.

(7) Establish advertising, marketing, signage, and labeling
requirements and restrictions.

(8) Establish procedures for the suspension, revocation, or
surrender of a license and establishing related fines and penalties
to be assessed against licensees for violations of this chapter.

(9) Establish procedures for the oversight of the fund established
pursuant to Section 26028.

begin insert 26021. end insert   

(a) The division, in consultation with the Division of
Labor Standards Enforcement, shall adopt regulations establishing
worker safety standards in cultivation sites, manufacturing
facilities, and retail dispensary sites.

(b) The division, in consultation with the Department of Water
Resources, shall adopt regulations to ensure that commercial
cannabis activity licensed pursuant to this chapter does not
threaten the state’s clean water and environment and is otherwise
in compliance with the California Environmental Quality Act
(CEQA) (Division 13 (commencing with Section 21000)) of the
Public Resources Code).

(c) The division, on consultation with the Department of Food
and Agriculture, shall adopt regulations ensuring that the
cultivation of cannabis under this chapter is in compliance with
all requirements applicable to the production of a food crop,
including, but not limited to, all of the following:

(1) Regulations regarding the verification of cannabis stock for
the purposes of cultivation.

(2) Cultivation protocols ensuring the quality, abundance, and
safety of the cannabis crop, including both indoor and outdoor
cultivation standards and regulations regarding carbon offsets
for indoor cultivation.

(3) Environmentally sound agricultural practices, including all
of the following:

(A) A requirement that any environmental damage be addressed
by the relevant state agency, including but not limited to, the State
Board of Forestry and Fire Protection, the Department of Fish
and Wildlife, Regional Water Quality Control Boards, the
Department of the California Highway Patrol, the Department of
Justice, CalFire.

(B) A provision authorizing revocation of a licensee if the state
determines that the conduct of the licensee has inflicted significant
damage to the environment.

(C) Standards controlling the application of pesticides. These
standards shall, at a minimum, require that if pesticides are to be
used, the use comply with standards analogous to Division 6
(commencing with Section 11401) of the Food and Agricultural
Code and its implementing regulations.

begin insert 26021.5. end insert   

(a) State agencies shall collaborate with local
agencies, and local agencies shall, within the scope of their
jurisdiction, assist state agencies in the enforcement of this chapter.

(b) No marijuana shall be cultivated on public lands pursuant
to this chapter.

begin insert 26022. end insert   

The division, in consultation with the State Department
of Public Health, shall adopt regulations to do all of the following:

(a) Establish labeling and packaging standards and
requirements, including, but shall not be limited to, all of the
following:

(1) Cultivation labeling requirements requiring labeling to
include, at a minimum, THC levels, cannabinoid profile, and active
ingredients.

(2) Edible cannabis product labeling and packaging standards,
including, but not limited to, all of the following:

(A) A requirement that the label include the manufacturing date,
the active ingredients, net weight, cannabinoid profile, nutritional
facts, dosage in total milligrams of THC delivered, and any
potential allergens.

(B) A requirement that the label include the warnings: “KEEP
OUT OF REACH OF CHILDREN,” and “FOR MEDICAL USE
ONLY.”

(C) A requirement that packaging contain a clear indication in
bold font that the package contains medical cannabis, and that
the package not be designed in a manner that attracts minors.

(D) Standards for labeling food that clearly distinguish edible
cannabis products from non-cannabis products.

(b) Establishing consumer protection, food and product safety
requirements, including, but not limited to, all of the following:

(1) Adverse event reporting and product recall systems that
include batch, lot, or control number tracking, the requirement
that employees who manufacture or otherwise handle edible
medical marijuana products thoroughly wash their hands before
commencing production and before handling finished edible
medical marijuana products.

(2) Standards for tetrahydrocannabinol (THC) and Cannabidiol
(CBD) dosage in edible products.

(3) Sanitation standards analogous to the California Retail
Food Code (Part 7 (commencing with Section 113700) of Division
104 of the Health and Safety Code) for food preparation, storage,
handling, and sale of medical cannabis products.

(4) A requirement that edible medical cannabis products be
limited to foods that are nonpotentially hazardous food as set forth
in Section 114365.5 of the Health and Safety Code.

(5) A requirement that facilities in which edible medical
cannabis products are prepared shall be constructed in accordance
with building standards and health and safety standards applicable
to a food production facility, including the requirement that edible
products distributed or sold by dispensaries not be produced or
stored in private homes.

(6) Weighing or measuring standards, including, but not limited
to the requirement that devices used in connection with the sale
or distribution of cannabis meet standards analogous to Division
5 (commencing with Section 12001) of the Business and
Professions Code.

(7) Standards controlling the application of pesticides. These
standards shall, at a minimum, require that if pesticides are to be
used, the use comply with standards analogous to Division 6
(commencing with Section 11401) of the Food and Agricultural
Code and its implementing regulations.

(8) A requirement that all edible medical marijuana products
shall individually wrapped at the original point of preparation.

(c) Establishing testing requirements for all medical cannabis
products, including edible cannabis products and those used, or
intended for use, via inhalation, including, but not limited to:

(1) Testing for the active cannibinoid profile, constituent
elements, and microbiological, bacterial, pathogenic yeast and
mold counts.

(2) Testing standards by which to test and measure the potency
of medical marijuana products. The division shall also determine
maximum standards in the potency of medical marijuana products.

(3) A requirement that local county public health departments
conduct product safety testing annually to ensure the quality of
the cannabis product.

(4) A requirement that quality assurance tests be conducted at
a testing laboratory certified by the State Department of Public
Health.

(5) A requirement for random quality assurance testing by
certified testing laboratories. Testing laboratories are exempt from
licensure under this chapter. A testing laboratory shall not receive
medical cannabis products except through the division or a medical
cannabis licensee. Individual medical patients may deliver samples
for testing with a licensee. The licensee shall verify the patient’s
medical recommendation and may then transfer the sample to a
certified laboratory for testing.

begin insert 26023. end insert   

The regulations shall set forth the inspection and
enforcement responsibilities of the Division of Labor Standards
Enforcement, the Department of Water Resources, the State
Department of Public Health, and the Department of Food and
Agriculture associated with this chapter.

begin insert 26023.5. end insert   

(a) Without limiting the authority of a city or a county
pursuant to Section 7 of Article XI of the California Constitution
or any other law, the division shall adopt regulations regarding
the minimum standards for the operation of dispensaries. The
regulations shall establish all of the following:

(1) Standards for labeling of products, including the name of
the mandatory commercial licensee from which the product was
obtained, and a requirement that dispensaries provide patients
with detailed written information about the contents of the cannabis
and medical cannabis products they obtain.

(2) Requirements for inventory control and reporting that
require all dispensaries to be able to demonstrate the present
location, amounts, and descriptions of all medical cannabis
products from the time of delivery to the dispensary until purchase
by a qualified patient or primary caregiver.

(3) Minimum educational and testing requirements for licensee
staff, including, but not limited to, background checks and a
requirement that every dispensary maintain dedicated, licensed
security staff both inside and outside the dispensary.

(4) Minimum standards governing signage and advertising for
dispensaries.

(b) Commencing 180 days after the division begins issuing
provisional licenses, a dispensary shall provide patients medical
marijuana and medical marijuana products obtained only from
persons licensed under this chapter.

(c) Out-of-state medical cannabis patients with current, valid
verification that they are allowed to receive medical cannabis
treatment within their home state may receive medical cannabis
treatment, including the ability to purchase medical cannabis from
licensed dispensaries within this state upon verification of the
documents by the dispensary, pursuant to protocols established
by the division.

begin insert 26024. end insert   

(a) The division may assist state taxation authorities
in the development of uniform policies for the state taxation of
mandatory commercial licensees.

(b) The division shall assist the Division of Occupational Safety
and Health in the Department of Industrial Relations in the
development of industry-specific regulations related to commercial
medical cannabis activities.

begin insert 26028. end insert   

(a) The Medical Cannabis Control Fund is hereby
established within the State Treasury. Notwithstanding Section
16305.7 of the Government Code, the fund shall include any
interest and dividends earned on the money in the fund.

(b) All fees collected pursuant to this chapter shall be deposited
into the fees account, which is hereby established within the fund.
Notwithstanding Section 13340 of the Government Code, all
moneys within the fees account are hereby continuously
appropriated, without regard to fiscal year, to the division solely
for the purposes of fully funding and administering this chapter,
including, but not limited to, the costs incurred by the division for
its administrative expenses and costs set forth in Section 26023.

(c) All moneys collected pursuant to this chapter as a result of
fines or penalties imposed under this chapter shall be deposited
directly into the fines and penalties account, which is hereby
established within the fund, and shall be available, upon
appropriation by the Legislature, for the purposes of funding the
enforcement grant program pursuant to subdivision (d).

(d) The division shall establish and administer a grant program
to allocate moneys from the fines and penalties account to state
and local entities for the purpose of assisting with medical cannabis
regulation and the enforcement of this chapter and other state and
local laws applicable to licensees. The costs of the grant program
under this subdivision shall, upon appropriation by the Legislature,
be paid for with moneys in the fines and penalties account.

(e) The Department of Transportation shall conduct research
regarding determining whether a driver is operating a vehicle
under the influence of marijuana, and shall develop protocols
setting forth best practices to assist law enforcement agencies.
The costs of the Department of Transportation under this
subdivision shall, upon appropriation by the Legislature, be paid
for with moneys in the fines and penalties account.

(f) The total fees charged pursuant to this chapter shall be
sufficient to pay the costs associated with the administrative and
enforcement duties of the division and of the associated state
agencies in administering this chapter.

(g) The division shall enter into an interagency agreement with
the Division of Labor Standards Enforcement, the Department of
Water Resources, the State Department of Public Health, and the
Department of Food and Agriculture setting forth the duties of
those agencies under this chapter and providing for reimbursement
of associated costs from revenues deposited into the fees account
of the fund.

begin insert 26030. end insert   

(a) The director and the persons employed by the
division for the administration and enforcement of this chapter
are peace officers in the enforcement of the penal provisions of
this chapter, the rules of the division adopted under this chapter,
and any other penal provisions of law of this state prohibiting or
regulating the cultivation, processing, storing, manufacturing,
testing, transporting, or selling of medical cannabis, and these
persons are authorized, while acting as peace officers, to enforce
any penal provisions of state law while in the course of their
employment.

(b) The director, the persons employed by the division for the
administration and enforcement of this chapter, peace officers
listed in Section 830.1 of the Penal Code, and those officers listed
in Section 830.6 of the Penal Code while acting in the course and
scope of their employment as peace officers may, in enforcing this
chapter, visit and inspect the premises of any licensee at any time
during which the licensee is acting pursuant to the mandatory
commercial license.

(c) Peace officers of the Department of the California Highway
Patrol, members of the University of California and California
State University police departments, and peace officers of the
Department of Parks and Recreation, as defined in subdivisions
(a), (b), (c), and (f) of Section 830.2 of the Penal Code, may, in
enforcing this chapter, visit and inspect the premises of any
licensee at any time during which the licensee is acting pursuant
to the license.

begin insert 26034. end insert   

(a) Information identifying the names of patients, their
medical conditions, or the names of their primary caregivers
received and contained in records kept by the division for the
purposes of administering this chapter are confidential and exempt
from the California Public Records Act (Chapter 3.5 (commencing
with Section 6250) of Division 7 of Title 1 of the Government Code)
and are not subject to disclosure to any individual or private entity,
except as necessary for authorized employees of the State of
California to perform official duties pursuant to this chapter:

(b) Nothing in this section precludes the following:

(1) Division employees notifying state or local agencies about
information submitted to the division that the employee suspects
is falsified or fraudulent.

(2) Notifications from the division to state or local agencies
about apparent violations of this chapter.

(3) Verification of requests by state or local law enforcement
agencies to confirm licenses and certificates issued by the division
or other state agency.

(4) Provision of information requested pursuant to a court order
or subpoena issued by a court or an administrative agency or local
governing body authorized by law to issue subpoenas.

(c) Information shall not be disclosed beyond what is necessary
to achieve the goals of a specific investigation or the parameters
of a specific court order or subpoena.

begin insert 26035. end insert   

Nothing in this chapter is intended to require an
employer to permit or accommodate the use, consumption,
possession, transfer, display, transportation, sale or growth or
cannabis in the workplace or to affect the ability of employers to
have policies restricting the use of cannabis by employees.

 

Article begin insert 3. end insert   Mandatory Commercial License

 

begin insert 26040. end insert   

(a) The division shall adopt regulations establishing
a tiered licensing scheme to accommodate the different levels and
types of activity to be licensed. The regulations shall set forth the
application and licensure process, including, but not limited to,
all of the following:

(1) A description of the various specific forms of commercial
cannabis activity to be authorized by the various types of licenses.

(2) The establishment of license application, issuance, renewal,
suspension, surrender, and revocation procedures for the various
types of licenses to be issued.

(3) The procedures for the issuance, renewal, suspension, and
revocation of mandatory commercial licenses.

(4) Time periods, not to exceed 90 days, by which the division
shall approve or deny an application for mandatory commercial
licensure.

(5) Qualifications for licensees.

(6) Security requirements, including, but not limited to,
procedures for limiting access to facilities and for the screening
of employees.

(b) Each mandatory commercial license application approved
by the division pursuant to this chapter is separate and distinct.

(c)  A mandatory commercial license application approved by
the division pursuant to this chapter shall be valid for a period
not to exceed one year from the date of approval unless revoked
or suspended earlier than that date pursuant to this chapter or the
rules or regulations adopted pursuant to this chapter

begin insert 26041. end insert   

A license application or renewal shall not be approved
if the division determines any of the following:

(a) The applicant fails to meet the requirements of this chapter
or any regulation adopted pursuant to this chapter, or any
applicable city or county ordinance or regulation.

(b) The applicant, or any of its officers, directors, or owners,
is under 21 years of age.

(c) The applicant has knowingly answered a question or request
for information falsely on the application form or failed to provide
information requested.

(d) The applicant, or any of its officers, directors, or owners
has been convicted in the previous five years of a violent felony,
as specified in subdivision (c) of Section 667.5 of the Penal Code,
a serious felony as specified in subdivision (c) of Section 1192.7
of the Penal Code, a felony offense involving fraud or deceit, or
any other felony that, in the division’s estimation, would impair
the applicant’s ability to appropriately operate as a mandatory
commercial licensee.

(e) The applicant, or any of its officers, directors, or owners is
a licensed physician making patient recommendations for medical
cannabis.

(f) The applicant, or any of its officers, directors, or owners has
been sanctioned by the division, a city, or a county for unlicensed
commercial medical cannabis activities or has had a license
revoked under this chapter in the previous three years.

(g) For an applicant that will have more than 20 employees,
the applicant has entered into a labor peace agreement with a
bona fide labor organization that is actively engaged in
representing or attempting to represent the applicant’s employees.

begin insert 26042. end insert   

The division shall establish a scale of application,
licensing, and renewal fees, based upon the cost of enforcing this
chapter, as follows:

(a) The division shall charge each applicant for licensure or
renewal an application or renewal fee that shall be calculated to
cover the costs of processing the application or renewal. This fee
may vary depending upon the varying costs associated with
approving the application or renewal related to the varying
activities covered by the license, but shall not exceed ____ dollars
($____) for a initial application, and ____dollars ($____) for a
renewal application.

(b) Upon the issuance of a license, the division shall charge
each licensee a licensure fee. The licensure fee shall be calculated
to cover the costs of administering this chapter, other than the
costs of processing applications. The licensure fee may vary
depending upon the varying costs associated with administering
the various regulatory requirements of this chapter as they relate
to the nature and scope of the different licensure activities, but
shall not be less than ____ dollars ($____), nor more than ____
dollars ($____).

(c) The division shall establish appropriate fees as part of its
emergency regulations for the issuance of provisional licenses
adopted pursuant to Section 26043.

(d) The total fees assessed pursuant to this chapter, including,
but not limited to, provisional license fees set forth in Section
26054, shall be set in at an amount that will fairly and
proportionately generate sufficient total revenue to fully cover the
total costs of administering this chapter, including, but not limited
to, costs set forth in Section 26023.

begin insert 26043. end insert   

(a) The division shall adopt, as soon as practicable,
emergency regulations consistent with this chapter to allow a
qualified applicant for license to apply for and receive a
provisional licensed to engage in commercial cannabis activity so
as to ensure an adequate supply of medical cannabis upon full
implementation of this chapter as set forth in Section 26054.

begin insert 26045. end insert   

Every mandatory commercial license is renewable
unless the license has been revoked if the renewal application is
submitted and the fee for it is paid. A license that has been
suspended, but not revoked, may be renewed under this section,
however, the act of renewal shall not effect the suspension and the
suspension shall remain in effect upon renewal. All licenses expire
at 12 midnight on the last day of the month posted on the license.
All licenses shall be renewed as follows:

(a) The application to renew the license may be filed before the
license expires upon payment of the annual fee.

(b) For 60 days after the license expires, the license may be
renewed upon payment of the annual renewal fee plus a penalty
fee that shall be equal to 50 percent of the annual fee.

(c) Unless otherwise terminated, or unless renewed pursuant
to subdivision (a) or (b), a license that is in effect on the month
posted on the license continues in effect through 12 midnight of
the 60th day following the month posted on the license, at which
time it is automatically canceled.

(d) A license that has been canceled pursuant to subdivision (c)
may be reinstated during the 30 days immediately following
cancellation upon payment by cashier’s check or money order of
the annual renewal fee, plus a penalty fee that shall be equal to
100 percent of the annual fee. A license that has been canceled
pursuant to subdivision (c) and that has not been reinstated within
30 days pursuant to this subdivision is automatically revoked on
the 31st day after the license has been canceled.

(e) A renewal application shall not be deemed filed within the
meaning of this section unless the document itself has been actually
delivered to, and the required renewal fee has been paid at, any
office of the division during office hours, or unless both the
document and fee have been filed and remitted pursuant to Section
11003 of the Government Code.

begin insert 26046. end insert   

(a) An application for a license shall include, but shall
not be limited to, all of the following:

(1) The legal name and proposed physical addresses of the
mandatory commercial licensee.

(2) The name, address, and date of birth of each principal officer
and board member.

(3) Operating and inventory control procedures to ensure
security and prevent diversion.

(4) Detailed operating procedures for the proposed facility,
which shall include, but not be limited to, provisions for facility
and operational security, prevention of diversion, employee
screening, storage of medical cannabis, personnel policies, and
recordkeeping procedures.

(5) A list of all persons or entities having an ownership interest
other than a security interest, lien, or encumbrance on any property
that will be used by the applicant.

(6) Evidence of the legal right to occupy and use an established
location, or an immunity from prosecution for that occupancy or
use pursuant to a local ordinance or ordinances, including, but
not limited to, Measure D, approved by the voters of the City of
Los Angeles at the May 21, 2013, general election.

(7) Documentation that the applicant will be in compliance with
all local ordinances and regulations, including, but not limited to,
an entity granted immunity under Measure D, approved by the
voters of the City of Los Angeles at the May 21, 2013, general
election.

(8) Evidence that a minimum of 75 percent of the officers and
owners of the applicant organization are residents of the State of
California for at least three years.

(9) A statement signed by the applicant under penalty of perjury
that the information provided in the application is true.

(b) For applicants seeking a license to cultivate and process,
the application shall also include a detailed description of the
operating procedures for all of the following:

(1) Cultivation.

(2) Extraction and infusion methods.

(3) The transportation process.

(4) Inventory procedures.

(5) Quality control procedures.

begin insert 26047. end insert   

(a) Upon receipt of an application for a licensure and
the applicable fee, the division shall make a thorough investigation
to determine whether the applicant and the premises for which a
license is applied qualify for the license and whether this chapter
has been complied with, and shall investigate all matters connected
therewith that may affect the public welfare and morals.

(b) The division shall deny an application if either the applicant
or the premises for which a license is applied do not qualify for a
licensure under this chapter.

(c) The division may, at its discretion, issue a license to an
applicant who has obtained a certificate of rehabilitation pursuant
to Section 4852.13 of the Penal Code.

(d) The division may place reasonable conditions upon licensure
if grounds exist for denial of the license, and the division finds
those grounds may be removed by the imposition of those
conditions. However, the limitations set forth in paragraph (6) of
subdivision (b) of Section 26040 shall not been waived.

(e) The division shall deny the application for licensure or
renewal if any of the following conditions apply:

(1) Granting or continuation of a license would be contrary to
the public welfare or morals.

(2) The applicant holding or seeking a license has violated any
law prohibiting conduct involving moral turpitude.

(3) The applicant for has been previously convicted for drug
trafficking, a felony conviction for embezzlement, a felony
conviction involving fraud or deceit, or any violent or serious
felony conviction.

(4) Local agencies have notified the division and provided
evidence that a licensee or applicant within its jurisdiction is in
violation of local ordinances relating to marijuana activities.

(5) The application has failed to state with sufficient specificity
the jurisdiction in which the applicant proposes to establish
operations.

(6) Applicants shall be notified of a denied application in writing
via personal service or mail addressed to the address of the
applicant or licensee set forth in the application. The denial letter
shall contain the detailed reasons for which the application has
been denied. The applicant shall have the right to appeal the denial
and be given a hearing within 30 days of the appeal. On appeal,
the decision shall be upheld unless the applicant demonstrates
that the applicant is in fact eligible for licensure and the
application is in compliance with this chapter.

begin insert 26048. end insert   

(a) The division shall electronically submit to the
Department of Justice fingerprint images and related information
for all applicants for cultivation, dispensing, manufacturing, and
transportation licenses for the purpose of obtaining information
as to the existence and content of a record of state or federal
convictions and arrests, and information regarding whether the
person is free on bail, or on his or her own recognizance, pending
trial or appeal.

(b) The Department of Justice shall provide a response to the
division pursuant to paragraph (1) of subdivision (p) of Section
11105 of the Penal Code.

(c) The division shall request from the Department of Justice
subsequent notification service, as provided pursuant to Section
11105.2 of the Penal Code, for persons described in this section.

(d) The Department of Justice shall charge a fee sufficient to
cover the reasonable cost of processing the requests described in
this section.

begin insert 26049. end insert   

(a) The actions of a mandatory commercial licensee
or provisional licensee, its employees, and its agents, permitted
pursuant to a mandatory commercial license or provisional license
issued by the division or otherwise permitted by this chapter, that
are within the scope of the license issued pursuant to this chapter
and the regulations adopted pursuant to the authority granted by
this chapter, are not unlawful under state law or local ordinance
generally prohibiting marijuana related activity and shall not be
an offense subject to arrest, prosecution, or other sanction under
state law or local ordinance, or be subject to a civil fine or be a
basis for seizure or forfeiture of assets under law.

(b) The actions of a person who, in good faith and upon
investigation, allows his or her property to be used by a mandatory
commercial licensee or provisional licensee, its employees, and
its agents, as permitted pursuant to a mandatory commercial
license or provisional license issued by the division or otherwise
permitted by this chapter, are not unlawful under state law and
shall not be an offense subject to arrest, prosecution, or other
sanction under state law, or be subject to a civil fine or be a basis
for seizure or forfeiture of assets under state law.

(c) Conduct that is within the scope of a license issued pursuant
to this chapter but not fully in compliance with this chapter shall
be subject to the enforcement provisions of this chapter and shall
not be subject to the penal provisions generally prohibiting
marijuana related activity, unless and until the license is revoked.

(d) This section shall not be deemed to limit the authority or
remedies of a city or county under any provision of law, including,
without limitation, Section 26010 or 26060 of this code or Section
7 of Article XI of the California Constitution.

begin insert 26050. end insert   

(a) A licensee shall keep, at the licensed premises,
accurate records of the specific commercial cannabis activity
conducted by the licensee. The records shall include, at a minimum,
all of the following for each batch of product:

(1) The name and address of the supplier.

(2) The dates in which the product was received.

(3) The amounts, form, and batch and lot number.

(4) The location of the cultivation site.

(5) The name of the employee who received the product.

(6) Records demonstrating compliance by the licensee with state
and federal rules and regulations regarding reporting and taxation
of income received.

(b) The records shall be kept for a minimum of seven years.

(c) The division may make any examination of the books and
records of any licensee and may visit and inspect the premises of
any licensee that the division may deem necessary to perform its
duties under this chapter.

(d) If the licensee or any employee of the licensee refuses,
impedes, obstructs, or interferes with an inspection pursuant to
this chapter or local ordinance, or if the licensee fails to maintain
or provide the books and records required by this section, the
license may be summarily suspended and the division shall directly
commence proceedings for the revocation of the license in
accordance with this chapter.

(e) All cultivation, dispensing, and retail sales licensees shall
be subject to an annual audit by the State Auditor in order to
ensure proper documentation is kept at each site or facility.

begin insert 26052. end insert   

(a) This chapter 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 cannabis exclusively for his or her personal medical
use but who does not sell or distribute cannabis to any other person
is not, thereby, engaged in commercial cannabis activity and is,
therefore, exempt from the licensure requirements of this chapter.

(2) A primary caregiver who cultivates, possesses, stores,
manufactures, transports, donates or provides cannabis 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 but 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, thereby, engaged
in commercial cannabis activity and is, therefore, exempt from the
licensure requirements of this chapter.

begin insert 26054. end insert   

(a) The division shall, as soon as practicable following
January 1, 2016, allow a qualified applicant for license to apply
for and receive a provisional licensed to engage in commercial
cannabis activity so as to ensure an adequate supply of medical
cannabis upon full implementation of this chapter.

(b) The division shall establish appropriate fees not to exceed
____ dollars ($____) for the issuance of a provisional license
pursuant to this chapter.

(c) The division shall accept applications for provisional
commercial licenses for medical cannabis activity as follows:

(1) The division shall request that every city or county provide
the division with a list of approved entities providing medical
cannabis to qualified patients and caregivers within the city or
county’s jurisdiction, if any, the location at which the entity is
operating, and the names of the persons who operate the entity. If
the jurisdiction represents that the entity has been operating in
compliance with local laws and regulations, or has limited
immunity under local laws, including, but not limited to, Measure
D, approved by the voters of the City of Los Angeles at the May
21, 2013, general election, the division shall issue a provisional
license to the entity until the time that the entity’s application for
mandatory commercial license has been approved or denied under
this chapter, but no later than 90 days after the division begins
accepting applications for mandatory commercial licensure.

(2) The division shall issue a provisional license to individuals
and entities that the division determines were, during the 12 months
prior to January 1, 2016, regularly cultivating, processing,
manufacturing, transporting, or distributing medical cannabis
collectively or cooperatively in full compliance with paragraphs
A and B of Section IV of the Guidelines for Security and
Non-Diversion of Marijuana Grown for Medical Use, issued by
the Department of Justice in August 2008, and any applicable
local ordinance, to continue to do so until the licensee’s application
for mandatory commercial licensure has been approved or denied
under this chapter, but no later than 90 days after the division
begins accepting applications for regular mandatory commercial
licenses. The division may consult with relevant local agencies in
making a determination on whether a provisional license applicant
is in compliance with any applicable ordinance.

(d) To qualify for a provisional mandatory commercial license,
applicants shall disclose to the division all of the following
information in writing:

(1) The names, addresses, and dates of birth of each principal
officer, owner, or board member.

(2) The common street address and assessor’s parcel number
of the property at which the licensee conducts any activity under
the authority of the licensee.

(3) The common street address and assessor’s parcel number
of the property at which any cultivation activity was or is to be
conducted.

(4) For the 12 months prior to January 1, 2016, the quantity of
cannabis cultivated, processed, manufactured, tested, transported,
or sold at a location and the quantity expected to be cultivated,
processed, manufactured, tested, transported, or sold from January
1, 2016, to July 1, 2016, inclusive. The licensee shall make its
records of current activity and activity for the 12 months prior to
January 1, 2016, available to the division upon request.

(e) Upon receipt of the application materials and fee, the
division may issue a provisional license and send a proof of
issuance to the applicant, if the applicant has not committed any
act or crime constituting grounds for the denial of licensure.

(f) Notwithstanding any other provision of this section, the
division shall not issue a provisional license to any an individual
or entity, or for any a premises, against whom there are pending
state or local administrative or judicial proceedings or actions
initiated by a city, county, or city and county under any applicable
local ordinance or who has been determined through those
proceedings to have violated any local ordinance related to
marijuana activity, or that knowingly provides false or fraudulent
information on an application for licensure.

(g) Entities that are provided immunity under Measure D,
approved by the voters of the City of Los Angeles at the May 21,
2013, general election, shall be considered the equivalent of
entities that are registered, permitted, or licensed as a medical
marijuana business, dispensary, or other entity involved in
providing medical marijuana to patients under a local ordinance
and shall be considered in compliance with a local ordinance for
the purposes of the implementation of this section.

(h) Provisional licensees shall comply with all standards and
requirements applicable to a licensee under this chapter, including,
but not limited to, the production, recordkeeping, security, and
transportation requirements and standards.

begin insert 26055. end insert   

(a) The division may adopt regulations to permit the
transfer of a license from a licensee to another person who
demonstrates to the division that he or she is eligible for licensure
under this chapter, if all of the following requirements are met:

(b) The division has determined that granting an additional
license of the type in question in the geographic region in question
may lead to the availability of product in excess of the amounts
needed to meet the medical need.

(c) The prospective recipient of the license complies with all of
the requirements of this chapter relating to a new application for
licensure, including, but not limited to, payment to the division of
a reasonable license transfer fee.

begin insert 26057. end insert   

The division shall make recommendations to the
Legislature pertaining to the establishment of an appeals and
judicial review process for persons aggrieved by a final decision
of the division.

 

Article begin insert 4. end insert   Enforcement

 

begin insert 26060. end insert   

(a) The division shall work in conjunction with law
enforcement agencies for the purposes of implementing,
administering, and enforcing this chapter and the division’s
regulations and taking appropriate action against licensees and
others who fail to comply with this chapter or the regulations
adopted pursuant to this chapter.

(b) Nothing in this chapter or in Article 2 (commencing with
Section 11357) or Article 2.5 (commencing with Section 11362.7)
of Chapter 6 of Division 10 of the Health and Safety Code, shall
prevent a city, county, or city and county from adopting or
enforcing a zoning ordinance or other law, ordinance, or
regulation that regulates the location, operation, or establishment
of a licensee or other person that engages in commercial cannabis
activity.

begin insert 26062. end insert   

Except for a person identified in Section 26052, a
person shall not exercise the privilege or perform any act that a
licensee may exercise or perform under the authority of a license
unless the person is acting pursuant to a license, including, but
not limited to, a provisional license, issued pursuant to this chapter.

begin insert 26063. end insert   

(a) Any product containing cannabis that is distributed,
or offered for sale by a licensee shall comply with the testing,
labeling, and food safety requirements established pursuant to this
chapter.

(b) No person shall steal or fraudulently use a licensee’s
identification certificate, or license or other licensee’s
identification card or license issued by the division to acquire,
cultivate, process, manufacture, test, transport, produce, possess
for sale, sell, or distribute cannabis.

(c) No person shall counterfeit, tamper with, or fraudulently
produce an identification card or license status.

(d) Any person who violates this section, or Section 26062, is
guilty of a misdemeanor and shall be subject to the following
penalties:

(1) For the first offense, imprisonment in a county jail for no
more than ____months or a fine not to exceed ____dollars ($____),
or both.

(2) For a second or subsequent offense, imprisonment in a
county jail for no more than ____ or a fine not to exceed ____
dollars ($____), or both.

(e) Any person who is charged, prosecuted, or subjected to a
civil penalty under this chapter shall not also be charged or
prosecuted pursuant to the Health and Safety Code for conduct
arising from the same set of facts.

begin insert 26064. end insert   

Any person operating an unlicensed facility, building,
structure, or location where cannabis is being commercially
cultivated, processed, manufactured, tested, or possessed for sale
in violation of this chapter shall be subject to civil penalties of up
to ____ dollars ($____) for each violation, and the division may
order the destruction of any cannabis associated with that
violation. All civil fines collected pursuant to this section shall be
deposited into the fines and penalties account established pursuant
to Section 26028.

begin insert 26066. end insert   

(a) The director or any district attorney, county
counsel, city attorney, or city prosecutor may bring an action in
the name of the people of the State of California to enjoin a
violation or the threatened violation of any provision of this
chapter, including, but not limited to, a licensee’s failure to correct
objectionable conditions following notice or as a result of any rule
promulgated pursuant to this chapter. The action shall be brought
in the county in which the violation occurred or is threatened to
occur. Any proceeding brought pursuant to this chapter shall
conform to the requirements of Chapter 3 (commencing with
Section 525) of Title 7 of Part 2 of the Code of Civil Procedure.

(b) A state or local law enforcement agency shall immediately
notify the division of any arrests made for violations over which
the division has jurisdiction which involve a licensee or licensed
premises. Notice shall be given within 10 days of the arrest. The
division shall promptly cause an investigation to be made as to
whether grounds exist for suspension or revocation of the license.

(c) This chapter shall not be construed to limit a law
enforcement agency’s ability to investigate unlawful activity in
relation to a mandatory commercial licensee.

(d) The division shall keep a complete record of all entities
licensed pursuant to this chapter. This record shall be made
available on the division’s Internet Web site so as to permit state
and local law enforcement to verify a mandatory commercial
license.

(e) The department shall authorize the city, county, or city and
county, to impose a “temporary local suspension” of the license
of a commercial licensee for up to 30 days for violations of this
chapter. The department shall promptly cause an investigation to
be made as to whether grounds exist for continued suspension or
revocation of the license.

 

Article begin insert 5. end insert   Transportation of Medical Cannabis

 

begin insert 26100. end insert   

A licensed transporter shall transport medical cannabis
and medical cannabis products only between licensed facilities.

begin insert 26102. end insert   

(a) Prior to transporting medical cannabis products,
a licensed transporter shall do both of the following:

(1) Complete an electronic shipping manifest as prescribed by
the division.

(2) Securely transmit the manifest to the division and the licensee
that will receive the medical cannabis product.

(b) During transportation, the licensed transporter shall
maintain a physical copy of the shipping manifest and make it
available upon request to agents of the division, local law
enforcement officers, or any other designate enforcement agency.

(c) The licensee receiving the shipment shall maintain each
electronic shipping manifest and shall make it available upon
request to agents of the division, local law enforcement officers,
or any other designate enforcement agency.

(d) Upon receipt of the shipment, a licensed facility shall submit
to the division a record verifying receipt of the shipment and the
details of the shipment.

begin insert 26104. end insert   

(a) Transported medical cannabis products shall be
transported only in a storage compartment that is securely affixed
to the interior of the transporting vehicle, and shall not be visible
from outside the vehicle.

(b) A vehicle transporting medical cannabis products shall
travel only directly between licensed facilities.

(c) All transport vehicles shall be staffed with a minimum of
two employees. At least one transport member shall remain with
the vehicle at all times when the vehicle contains medical cannabis.

(d) 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 upon the request of agents of the division or any law
enforcement officials.

begin insert 26105. end insert   

(a) The division shall develop a database containing
the electronic shipping manifests, which shall include, but are not
limited to, the following information:

(1) The quantity, or weight, and variety of products shipped.

(2) The estimated times of departure and arrival.

(3) The quantity or weight, and variety of products received.

(4) The actual time of arrival.

(5) A categorization of the product.

(b) The database shall be designed to flag irregularities for the
division to investigate. The division may, at any time, inspect
shipments and request documentation for current inventory.

begin insert 26107. end insert   

(a) This chapter shall not be construed to authorize
or permit any licensee to transport, or cause to be transported,
cannabis or cannabis products outside the state, unless authorized
by federal law.

(b) A local jurisdiction shall not prevent transportation of
medical cannabis by a licensed transporter who acts in compliance
with this chapter.

 

Article begin insert 6. end insert   Cannabis Employee Certification and Apprenticeship
Program

 

begin insert 26140. end insert   

(a) The Division of Labor Standards Enforcement shall
do all of the following:

(1) Maintain minimum standards for the competency and
training of employees of a licensed cultivation site or a licensed
dispensing facility, licensed pursuant to this chapter.

(2) Maintain an advisory committee and panels as necessary
to carry out its functions under this section. There shall be
employer representation on the committee and panels.

(3) Establish and collect certification fees not to exceed the
reasonable cost to the Division of Labor Standards Enforcement
in issuing certifications.

(4) Adopt regulations necessary to implement this article.

(5) Issue certification cards to employees who have been
certified pursuant to this article.

(6) Maintain a cannabis certification curriculum committee
made up of representatives of the State Department of Education,
the California Community Colleges, and the Division of Labor
Standards Enforcement. The committee shall do all of the
following:

(A) Establish written educational curriculum standards for
enrollees in training programs. Curriculum shall include
appropriate standards for the sale, processing, and cultivation of
medical marijuana including standards for dispensing, growing,
harvesting, packaging, labeling, preparing, transporting,
delivering, testing, storage, and preventing diversion of medical
marijuana and related products, including edible medical
marijuana products.

(B) If an educational provider’s curriculum meets the written
educational curriculum standards established in accordance with
subparagraph (A), designate that curriculum as an approved
curriculum of classroom instruction.

(C) At the committee’s discretion, review the approved
curriculum of classroom instruction of any designated educational
provider. The committee may withdraw its approval of the
curriculum if the educational provider does not continue to meet
the established written educational curriculum standards.

(D) Require each designated educational provider to submit an
annual notice to the committee stating whether the educational
provider is continuing to offer the approved curriculum of
classroom instruction and whether material changes have been
made to the curriculum since its approval.

(b) There shall be no discrimination in favor of, or against, a
person based on membership or nonmembership in a union.

(c) For purposes of this article, the following definitions apply:

(1) “Cannabis employee” means an employee of a licensee
working at a licensed facility under this chapter.

(2) “Committee” means the cannabis curriculum certification
committee established pursuant to this article.

begin insert 26141. end insert   

(a) Except as provided in subdivision (c), persons who
perform work as cannabis employees shall be certified by the
Division of Labor Standards Enforcement.

(b) Individuals desiring to be certified shall submit an
application for certification and examination that includes an
employment history report from the Social Security Administration.
The individual may redact his or her social security number from
the employment history report before it is submitted.

(c) (1) Certification is not required for registered apprentices
working as cannabis employees as part of an apprenticeship
program approved under a federal Office of Apprenticeship
program or a state apprenticeship program authorized by the
federal Office of Apprenticeship. An apprentice who is within one
year of completion of his or her term of apprenticeship shall be
permitted to take the certification examination and, upon passing
the examination, shall be certified immediately upon completion
of the term of apprenticeship.

(2) Certification is not required for any person employed
pursuant to Section 26143.

(d) The following shall constitute additional grounds for
disciplinary proceedings, including suspension or revocation of
the conditional license issued pursuant to this chapter:

(1) The licensed cultivation site or licensed dispensing facility
willfully employs one or more uncertified persons to perform work
as cannabis employees in violation of this section or Section 26143.

(2) The licensed cultivation site or licensed dispensing facility
willfully fails to provide adequate supervision of uncertified
workers required by paragraph (3) of subdivision (a) of Section
26143.

(3) The licensed cultivation site or licensed dispensing facility
willfully fails to provide adequate supervision of apprentices
performing work pursuant to subdivision (c).

(e) The Labor Commissioner shall maintain a process for
referring cases to the Division of Medical Cannabis Regulation
and Enforcement when it has been determined that a violation of
this section has likely occurred. The Labor Commissioner shall
have a memorandum of understanding with the Division of Medical
Cannabis Regulation and Enforcement in furtherance of this
section.

(f) Upon receipt of a referral by the Labor Commissioner
alleging a violation under this section, the Division of Medical
Cannabis Regulation and Enforcement shall open an investigation.
Disciplinary action against the licensee shall be initiated within
60 days of the receipt of the referral. The Division of Medical
Cannabis Regulation and Enforcement may initiate disciplinary
action against a licensee upon his or her own investigation, the
filing of a complaint, or a finding that results from a referral from
the Labor Commissioner alleging a violation under this section.
Failure of the employer or employee to provide evidence of
certification or apprentice status shall create a rebuttable
presumption of violation of this provision.

begin insert 26142. end insert   

The Division of Labor Standards Enforcement shall do
all of the following:

(a) Make information about cannabis employee certification
available in languages other than English to the extent the Division
of Labor Standards Enforcement finds appropriate.

(b) Provide for the administration of certification tests in
Spanish and, to the extent practicable, other languages spoken by
a substantial number of applicants, except when the ability to
understand warning signs, instructions, and certain other
information in English is necessary for safety, cultivation, and
dispensing.

(c) Ensure, in conjunction with the California Apprenticeship
Council, that all cannabis apprenticeship programs that impose
minimum formal education requirements as a condition of entry
provide for reasonable alternative means of satisfying those
requirements.

(d) Ensure, in conjunction with the California Apprenticeship
Council, that all cannabis apprenticeship programs have adopted
reasonable procedures for granting credit toward a term of
apprenticeship for other vocational training and on-the-job
training experience.

begin insert 26143. end insert   

(a) An uncertified person may perform work for which
certification is otherwise required in order to acquire the necessary
on-the-job experience for certification if all of the following
requirements are met:

(1) The person is registered with the Division of Labor
Standards Enforcement. A list of current registrants shall be
maintained by the Division of Labor Standards Enforcement and
made available to the public upon request.

(2) The person either has completed or is enrolled in an
approved curriculum of classroom instruction.

(3) The employer attests that the person shall be under the direct
supervision of a cannabis employee certified pursuant to Section
26140 who is responsible for supervising no more than one
uncertified person. An employer who is found by the Division of
Labor Standards Enforcement to have failed to provide adequate
supervision may be barred from employing uncertified individuals
in the future.

(b) For purposes of this section, “an approved curriculum of
classroom instruction” means a curriculum of classroom
instruction approved by the committee and provided under the
jurisdiction of the State Department of Education, the Board of
Governors of the California Community Colleges, or the Bureau
for Private Postsecondary and Vocational Education.

(c) The committee may grant approval to an educational
provider that presently offers only a partial curriculum if the
educational provider intends in the future to offer, or to cooperate
with other educational providers to offer, a complete curriculum
for the type of certification involved. The committee may require
an educational provider receiving approval for a partial
curriculum to periodically renew its approval with the committee
until a complete curriculum is offered and approved.

(d) An educational provider that receives approval for a partial
curriculum shall disclose in all communications to students and
to the public that the educational provider has only received
approval for a partial curriculum and shall not make any
representations that the provider offers a complete approved
curriculum of classroom instruction.

(e) For purposes of this section, a person is enrolled in an
approved curriculum of classroom instruction if the person is
attending classes on a full-time or part-time basis toward the
completion of an approved curriculum.

(f) Registration under this section shall be renewed annually
and the registrant shall provide to the Division of Labor Standards
Enforcement certification of the classwork completed and
on-the-job experience acquired since the prior registration.

(g) For purposes of verifying the information provided by a
person registered with the Division of Labor Standards
Enforcement, an educational provider shall provide an approved
curriculum of classroom instruction, and shall, upon the Division
of Labor Standards Enforcement’s request, provide the Division
of Labor Standards Enforcement with information regarding the
enrollment status and instruction completed by an individual
registered. By registering with the Division of Labor Standards
Enforcement in accordance with this section, the individual
consents to the release of this information.

(h) The Division of Labor Standards Enforcement shall establish
registration fees in an amount reasonably necessary to implement
this section, not to exceed twenty-five dollars ($25) for the initial
registration. There shall be no fee for annual renewal of
registration. Fees shall be deposited into the Medical Cannabis
Control Fund established pursuant to Section 26028 for
reimbursement of the costs of the Division of Labor Standards
Enforcement in administering this article.

(i) Notwithstanding any other law, an uncertified person who
has completed an approved curriculum of classroom instruction
and is currently registered with the Division of Labor Standards
Enforcement may take the certification examination. The person
shall be certified upon passing the examination and satisfactorily
completing the requisite number of on-the-job hours required for
certification. A person who passes the examination prior to
completing the requisite hours of on-the-job experience shall
continue to comply with subdivision (f).

end insert

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 23028 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 23028. end insert   

(a) (1) In addition to any authority otherwise provided
by law, the board of supervisors of any county may impose, by
ordinance, a tax on the privilege of cultivating, dispensing,
producing, processing, preparing, storing, providing, donating,
selling, or distributing marijuana by a licensee operating pursuant
to the Medical Cannabis Regulation and Control Act (Chapter 18
(commencing with Section 26000) of Division 9 of the Business
and Professions Code). The tax may be imposed for general
governmental purposes or for purposes specified in the ordinance
by the board of supervisors.

(2) The board of supervisors shall specify in the ordinance
proposing the tax the activities subject to the tax, the applicable
rate or rates, the method of apportionment, and the manner of
collection of the tax. A tax imposed pursuant to this section is a
tax and not a fee or special assessment, and the tax is not required
to be apportioned on the basis of benefit to any person or property
or be applied uniformly to all taxpayers or all real property.

(3) A tax imposed by a county pursuant to this section by a
county may include a transactions and use tax imposed solely for
marijuana or marijuana products, which shall otherwise conform
to Part 1.6 (commencing with Section 7251) of Division 2 of the
Revenue and Taxation Code. Notwithstanding Section 7251.1 of
the Revenue and Taxation Code, the tax may be imposed at any
rate specified by the board of supervisors, and the tax rate
authorized by this section shall not be considered for purposes of
the combined tax rate limitation established by that section.

(4) The tax authorized by this section may be imposed upon any
or all of the activities set forth in paragraph (1), regardless of
whether the activity is undertaken individually, collectively, or
cooperatively, and regardless of whether the activity is for
compensation or gratuitously, as determined by the board of
supervisors.

(5) The board of supervisors shall specify whether the tax
applies throughout the entire county or within the unincorporated
area of the county.

(b) In addition to any other method of collection authorized by
law, the board of supervisors may provide for the 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.

(c) Any tax imposed pursuant to this section shall be subject to
applicable voter approval requirements imposed by any other law.

(d) For purposes of this section, “marijuana” shall have the
meanings set forth in Section 26002 of the Business and Professions
Code.

(e) This section 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 otherwise provided by law. This section shall not be
construed as a limitation upon the taxing authority of any county
as provided by other law.

(f) The total taxation of state and local authorities shall not be
in excess of 25 percent of retail prices.

end insert

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 11362.775 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

11362.775.  

begin insert (a) end insert begin insert   end insert Qualified patients, persons with valid
identification cards, and the designated primary caregivers of
qualified patients and persons with identification cards, who
associate within the State of California in order collectively or
cooperatively to cultivate marijuana for medical purposes, shall
not solely on the basis of that fact be subject to state criminal
sanctions under Section 11357, 11358, 11359, 11360, 11366,
11366.5, or 11570.

begin insert

(b) Commencing 180 days following the issuance of provisional
licenses pursuant to the Medical Cannabis Regulation and Control
Act (Chapter 18 (commencing with Section 26000) of Division 9
of the Business and Professions Code), subdivision (a) shall not
apply to licensees under that act. The Division of Medical Cannabis
Regulation and Enforcement shall post a notice on its Internet
Web site indicating when it has commenced issuing provisional
licenses and when the 180 day period has been exhausted.

end insert

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 1155.7 of the end insert begin insert Labor Code end insert begin insert is amended to read: end insert

1155.7.  

begin insert (a) end insert begin insert   end insert Nothing in this chapter shall be construed to apply
or be applicable to begin delete any end delete begin insert a end insert labor organization in its representation
of workers who are not agricultural employees. Any such labor
organization shall continue to be governed in its intrastate activities
for nonagricultural workers by Section 923 and applicable judicial
precedents.

begin insert

(b) To the extent not prohibited by law and for purposes of this
chapter, “agricultural employer” includes a medical cannabis
cultivation site licensed pursuant to the Medical Cannabis
Regulation and Control Act (Chapter 18 (commencing with Section
26000) of Division 9 of the Business and Professions Code).

end insert

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 1158.5 is added to the end insert begin insert Labor Code end insert begin insert , to read: end insert

begin insert

begin insert 1158.5. end insert   

(a) The Division of Occupational Safety and Health
in the Department of Industrial Relations shall develop
industry-specific regulations related to the activities of facilities
issued a medical cannabis license pursuant to Medical Cannabis
Regulation and Control Act (Chapter 18 (commencing with Section
26000) of Division 9 of the Business and Professions Code),
including provisions for the establishment of labor peace
agreements and an apprenticeship program to ensure professional
standards among industry employees.

(b) The regulations shall govern agreements between a facility
issued a conditional license and a bona fide labor organization
prohibiting labor organizations and members from engaging in
picketing, work stoppages, boycotts, and other economic
interference with the licensee’s business. The regulations shall
also govern agreements whereby the licensee has agreed not to
disrupt efforts by the bona fide labor organization to communicate
with, and attempt to organize and represent, the licensee’s
employees.

end insert

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 3094 is added to the end insert begin insert Labor Code end insert begin insert , to read: end insert

begin insert

begin insert 3094. end insert   

The Division of Apprenticeship Standards shall
investigate, approve, or reject applications for apprenticeship
programs for employees of a licensee pursuant to the Medical
Cannabis Regulation and Control Act (Chapter 18 (commencing
with Section 26000) of Division 9 of the Business and Professions
Code). The Division of Apprenticeship Standards shall adopt
regulations necessary to implement and regulate the establishment
of the apprenticeship programs described in this section.

end insert

begin insert

begin insert SEC. 11. end insert   

end insert begin insert

The provisions of this act are severable. If any
provision of this act or its application is held invalid, that invalidity
shall not affect other provisions or applications that can be given
effect without the invalid provision or application.

end insert

begin insert

begin insert SEC. 12. end insert   

end insert begin insert

The Legislature finds and declares that Section 5 of
this act imposes a limitation on the public’s right of access to
documents in the possession of a public agency within the meaning
of Section 3 of Article I of the California Constitution. Pursuant
to that constitutional provision, the Legislature makes the following
finding to demonstrate the interest protected by this limitation and
the need for protecting that interest:

end insert begin insert

It is necessary to maintain the confidentiality of patient and
physician information provided to the Division of Medical
Cannabis Regulation and Enforcement in order to protect the
private medical information of patients who use medical cannabis
and to preserve the essential confidentiality of the physician and
patient relationship.

end insert

begin insert

begin insert SEC. 13 end insert begin insert . end insert   

end insert begin insert

No reimbursement is required by this act pursuant
to Section 6 of Article XIII B of the California Constitution for
certain costs that may be incurred by a local agency or school
district because, in that regard, 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.

end insert begin insert

However, if the Commission on State Mandates determines that
this act contains other costs mandated by the state, reimbursement
to local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.

end insert

begin delete

SECTION 1.  

It is the intent of the Legislature to enact
legislation that would establish a comprehensive and uniform state
regulatory structure to govern the cultivation, processing, testing,
and distribution of medical cannabis.

end delete