AB 266, as introduced, Cooley. Medical marijuana.
(1) Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 6, 1996, statewide general election, authorizes the use of marijuana for medical purposes. Existing law enacted by the Legislature requires the establishment of a program for the issuance of identification cards to qualified patients so that they may lawfully use marijuana for medical purposes, and requires the establishment of guidelines for the lawful cultivation of marijuana grown for medical use. Existing law provides for the licensure of various professions by the Department of Consumer Affairs. Existing law, the Sherman Food, Drug, and Cosmetic Law, provides for the regulation of food, drugs, devices, and cosmetics, as specified. A violation of that law is a crime.
This bill would establish within the Department of Consumer Affairs a Bureau of Medical Marijuana Regulation, under the supervision and control of the Chief of the Bureau of Medical Marijuana Regulation, and would require the bureau to license and regulate dispensing facilities, cultivation sites, transporters, and manufacturers of medical marijuana and medical marijuana products, subject to local ordinances. The bill would require a background check of applicants for licensure, as defined, to be administered by the Department of Justice, and submission of a statement signed by an applicant, under penalty of perjury, that the information on his or her application is true, thereby creating a crime and imposing a state-mandated local program. Violation of the provisions related to applying for a conditional license would be punishable by a civil fine of up to $35,000 for each individual violation, or as otherwise specified.
The bill would make conditional licenses subject to the restrictions of the local jurisdiction in which the facility operates or proposes to operate. The bill would set forth provisions related to the transportation, testing, and distribution of medical marijuana. The bill would prohibit the distribution of any form of advertising for physician recommendations for medical marijuana, unless the advertisement bears a specified notice and requires that the advertisement meet specified requirements and not be fraudulent, deceitful, or misleading.
The bill would establish a system, including apprenticeship and certification, for cannabis employees. 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 to establish a cannabis curriculum certification committee to establish educational curriculum standards and to oversee educational providers of cannabis curriculum. The bill would require the Division of Occupational Health and Safety to develop industry-specific regulations for facilities issued a conditional license and would specify that those regulations govern agreements between a facility issued a conditional license and labor.
The bill would establish the Medical Marijuana Regulation Fund and would require the deposit of specified fees collected pursuant to this act into the fund. The bill would continuously appropriate moneys from the fund to the bureau for the purposes of administering this act, thereby making an appropriation. The bill would also establish the Special Account for Environmental Enforcement within the Medical Marijuana Fund. This account would contain money from fees assessed against licensed cultivation facilities and would be continuously appropriated for the enforcement of environmental regulations relating to licensed cultivation sites. The bill would require the deposit of penalty moneys collected pursuant to this bill into the General Fund.
The bill would provide that it shall not supersede provisions of Measure D, as approved by the voters of the City of Los Angeles, as specified.
The bill would authorize a city, county, or city and county to administer and enforce these provisions. The bill would require the bureau to establish quality assurance protocols by July 1, 2017, to ensure uniform testing standards of medical marijuana, and would require licensees to comply with these provisions. The bill would further set forth provisions regulating edible medical marijuana products, as specified. By adding these provisions to the Sherman Food, Drug, and Cosmetic Law, a violation of which is a crime, the bill would impose a state-mandated local program.
(2) Existing law establishes the Division of Apprenticeship Standards, which audits and regulates apprenticeship programs for various trades, including electricians.
This bill would require the division to investigate, approve, or reject applications for apprenticeship employees of a licensed cultivation site or a licensed dispensing facility, as defined.
(3) Existing law, the Medical Practice Act, provides for the licensure and regulation of physicians and surgeons by the Medical Board of California. Existing law requires the board to prioritize investigations and prosecutions of physicians and surgeons representing the greatest threat of harm, as specified. Existing law identifies the cases that are to be given priority, which include cases of repeated acts of excessively prescribing, furnishing, or administering controlled substances without a good faith prior examination of the patient. Existing law provides that a violation of the Medical Practice Act is a crime.
This bill would require the board to consult with the Center for Medicinal Cannabis Research on developing and adopting medical guidelines for the appropriate administration and use of marijuana.
The bill would also make it a misdemeanor for a physician and surgeon who recommends marijuana to a patient for a medical purpose to accept, solicit, or offer any remuneration from or to a licensed dispensing facility in which the physician and surgeon or his or her immediate family has a financial interest. By creating a new crime, the bill would impose a state-mandated local program.
The bill would provide that specified acts of recommending marijuana for medical purposes without a good faith examination are among the types of cases that should be given priority for investigation and prosecution by the board, as described above. The bill would further prohibit a physician and surgeon from recommending medical marijuana to a patient unless that person is the patient’s attending physician, as defined. Because a violation of that provision would be a crime, the bill would impose a state-mandated local program.
(4) Existing law authorizes the legislative body of a city or county to impose various taxes, including a transactions and use tax at a rate of 0.25%, or a multiple thereof, if approved by the required vote of the legislative body and the required vote of qualified voters, and limits the combined rate of transactions and use taxes within a city or county to 2%.
This bill would authorize the board of supervisors of a county to impose a tax on the privilege of cultivating, dispensing, producing, processing, preparing, storing, providing, donating, selling, or distributing marijuana or products containing marijuana. The bill would authorize the tax to be imposed for either general or specific governmental purposes. The bill would require a tax imposed pursuant to this authority to be subject to any applicable voter approval requirement.
(5) Existing law exempts qualified patients, persons with valid identification cards, and the designated primary caregivers of qualified patients and persons with identification cards from certain crimes, including possession of concentrated cannabis and marijuana, cultivation of marijuana, and possession of marijuana for sale.
This bill would also exempt from those crimes an employee, officer, or board member of a licensed cultivation site or a licensed dispensing facility, except as specified.
(6) Existing law regulates the labor practices of agricultural employers.
This bill would include licensed cultivation sites and licensed dispensing facilities in the definition of agricultural employer.
(7) This bill would provide that its provisions are severable.
(8) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
(9) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
The Legislature finds and declares all of the
3(a) In 1996, the people of the State of California enacted the
4Compassionate Use Act of 1996, codified in Section 11362.5 of
5the Health and Safety Code. The people of the State of California
6declared that their purpose in enacting the measure was, among
7other things, “to ensure that seriously ill Californians have the
8right to obtain and use marijuana for medical purposes where that
9medical use is deemed appropriate and has been recommended by
10a physician who has determined that the person’s health would
11benefit from the use of marijuana in the treatment of cancer,
12anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis,
13migraine, or any other illness for which marijuana provides relief.”
14(b) The Compassionate Use Act of 1996 called on state
15government to implement a plan for the safe and affordable
16distribution of marijuana to all patients in medical need of
17marijuana, while ensuring that nothing in that act would be
18construed to condone the diversion of marijuana for nonmedical
20(c) In 2003, the Legislature enacted the Medical Marijuana
21Program Act (MMPA), codified in Article 2.5 (commencing with
22Section 11362.7) of Chapter 6 of Division 10 of the Health and
24(d) Greater certainty and minimum statewide standards are
25urgently needed regarding the obligations of medical marijuana
26facilities, and for the imposition and enforcement of regulations
27to prevent unlawful cultivation and the diversion of marijuana to
P6 1(e) Despite the passage of the Compassionate Use Act of 1996
2and the MMPA, because of the lack of an effective statewide
3system for regulating and controlling medical marijuana, cities,
4counties and local law enforcement officials have been confronted
5with uncertainty about the legality of some medical marijuana
6cultivation and distribution activities. The current state of affairs
7makes law enforcement difficult and endangers patient safety
8because of an inability to monitor the supply of medical marijuana
9in the state and the lack of quality control, testing, and labeling
11(f) The California Constitution grants cities and counties the
12authority to make and enforce, within their borders, “all local
13police, sanitary, and other ordinances and regulations not in conflict
14with the general laws.” This inherent local police power includes
15broad authority to determine, for purposes of public health, safety,
16and welfare, the appropriate uses of land within the local
17jurisdiction’s borders. The police power, therefore, allows each
18city and county to determine whether or not a medical marijuana
19dispensary or other facility that makes medical marijuana available
20may operate within its borders. This authority has been upheld by
21City of Riverside v. Inland Empire Patients Health and Wellness
22Center, Inc. (2013) 56 Cal.4th 729 and County of Los Angeles v.
23Hill (2011) 192 Cal.App.4th 861. Nothing in this act shall diminish,
24erode, or modify that authority.
25(g) If a city or county determines that a dispensary or other
26facility that makes medical marijuana available may operate within
27its borders, then there is a need for the state to license these
28dispensaries and other facilities for the purpose of adopting and
29enforcing protocols for security standards at dispensaries and in
30the transportation of medical marijuana, as well as health and safety
31standards to ensure patient safety. This licensing requirement is
32not intended in any way nor shall it be construed to preempt local
33ordinances, regulations, or enforcement actions regarding the sale
34and use of medical marijuana, including, but not limited to,
35security, signage, lighting, and inspections.
36(h) All of the following are necessary to uphold important state
38(1) Strict provisions to prevent the potential diversion of
39marijuana for recreational use.
P7 1(2) Audits to accurately track the volume of both product
2movement and sales.
3(3) An effective means of restricting nonmedical access to
4medical marijuana by minors.
5(i) Nothing in this act shall be
construed to promote or facilitate
6the nonmedical, recreational possession, sale, or use of marijuana.
7(j) Nothing in this act shall have a diminishing effect on the
8rights and protections granted to a patient or primary caregiver
9pursuant to the Compassionate Use Act of 1996.
Section 2220.05 of the Business and Professions Code
11 is amended to read:
(a) In order to ensure that its resources are maximized
13for the protection of the public, the Medical Board of California
14shall prioritize its investigative and prosecutorial resources to
15ensure that physicians and surgeons representing the greatest threat
16of harm are identified and disciplined expeditiously. Cases
17involving any of the following allegations shall be handled on a
18priority basis, as follows, with the highest priority being given to
19cases in the first paragraph:
20(1) Gross negligence, incompetence, or repeated negligent acts
21that involve death or serious bodily injury to one or more patients,
22such that the physician and surgeon represents a danger to the
24(2) Drug or alcohol abuse by a physician and surgeon involving
25death or serious bodily injury to a patient.
26(3) Repeated acts of clearly excessive prescribing, furnishing,
27or administering of controlled substances, or repeated acts of
28prescribing, dispensing, or furnishing of controlled
begin delete substancesend delete
29 without a good faith prior examination of the patient
31and medical reason therefor. However, in no event shall a physician
32and surgeon prescribing, furnishing, or administering controlled
33substances for intractable pain consistent with lawful prescribing,
34including, but not limited to, Sections 725, 2241.5, and 2241.6 of
35this code and Sections 11159.2 and 124961 of the Health and
36Safety Code, be prosecuted for excessive prescribing and prompt
37review of the applicability of these provisions shall be made in
38any complaint that may implicate these provisions.
39(4) Sexual misconduct with one or more patients during a course
40of treatment or an examination.
P8 1(5) Practicing medicine while under the influence of drugs or
3(b) The board may by regulation prioritize cases involving an
4allegation of conduct that is not described in subdivision (a). Those
5cases prioritized by regulation shall not be assigned a priority equal
6to or higher than the priorities established in subdivision (a).
7(c) The Medical Board of California shall indicate in its annual
8report mandated by Section 2312 the number of temporary
9restraining orders, interim suspension orders, and disciplinary
10actions that are taken in each priority category specified in
11subdivisions (a) and (b).
Article 25 (commencing with Section 2525) is added
13to Chapter 5 of Division 2 of the Business and Professions Code,
(a) It is unlawful for a physician and surgeon who
19recommends marijuana to a patient for a medical purpose to accept,
20solicit, or offer any form of remuneration from or to a facility
21issued a conditional license pursuant to Part 5 (commencing with
22Section 18100) of Division 7, if the physician and surgeon or his
23or her immediate family have a financial interest in that facility.
24(b) For the purposes of this section, “financial interest” shall
25have the same meaning as in Section 650.01.
26(c) A violation of this section shall be a misdemeanor.
The Medical Board of California shall consult with
28the California Marijuana Research Program, known as the Center
29for Medicinal Cannabis Research, authorized pursuant to Section
3011362.9 of the Health and Safety Code, on developing and adopting
31medical guidelines for the appropriate administration and use of
A physician and surgeon shall not recommend medical
34marijuana to a patient, unless that person is the patient’s attending
35physician, as defined by subdivision (a) of Section 11362.7 of the
36Health and Safety Code.
An examination conducted by the physician and
38surgeon involving the use of telehealth as defined in Section 2290.5
39of the Business and Professions Code, shall comply with applicable
40federal and state laws and regulations, including compliance with
P9 1the regulations promulgated pursuant to the Health Insurance
2Portability and Accountability Act of 1996, found at Parts 160 and
3164 of Title 45 of the Code of Federal Regulations.
Part 5 (commencing with Section 18100) is added to
5Division 7 of the Business and Professions Code, to read:
For purposes of this part, the following definitions shall
13(a) “Bureau” means the Bureau of Medical Marijuana Regulation
14in the Department of Consumer Affairs.
15(b) “Certified testing laboratory” means a laboratory that is
16certified by the bureau to perform random sample testing of
17medical marijuana pursuant to the certification standards for these
18facilities promulgated by the bureau.
19(c) “Chief” means the Chief of the Bureau of Medical Marijuana
21(d) “Department” means the Department of Consumer Affairs.
22(e) “Director” means the Director of Consumer Affairs.
23(f) “Dispensary” means a distribution operation that provides
24medical marijuana or medical marijuana derived products to
25patients and caregivers.
26(g) “Fund” means the Medical Marijuana Regulation Fund
27established pursuant to Section 18118.
28(h) “Labor peace agreement” means an agreement between an
29entity and a bona fide labor organization that, at a minimum,
30protects the state’s proprietary interests by prohibiting labor
31organizations and members from engaging in picketing, work
32stoppages, boycotts, and any other economic interference with the
33applicant’s business. The agreement means that the applicant has
34agreed not to disrupt efforts by the bona fide labor organization
35to communicate with, and attempt to organize and represent, the
37(i) “Licensed cultivation site” means a facility that plants, grows,
38cultivates, harvests, dries, or processes medical marijuana and that
39is issued a conditional license pursuant to this part.
P10 1(j) “Licensed dispensing facility” means a dispensary or other
2facility that provides medical marijuana, medical marijuana
3products, or devices for the use of medical marijuana or medical
4marijuana products that is issued a conditional license pursuant to
6(k) “Licensed manufacturer” means a person who extracts,
7prepares, derives, produces, compounds, or repackages medical
8marijuana or medical marijuana products into consumable and
9nonconsumable forms and that is issued a conditional license
10pursuant to this part.
11(l) “Licensed transporter” means an individual or entity issued
12a conditional license by the bureau to transport medical marijuana
13to and from facilities that have been issued conditional licenses
14pursuant to this part.
15(m) “Marijuana” means all parts of the plant Cannabis sativa,
16cannabis indica, or cannabis ruderalis, whether growing or not;
17the seeds thereof; the resin, whether crude or purified, extracted
18from any part of the plant; and every compound, manufacture, salt,
19derivative, mixture, or preparation of the plant, its seeds, or resin.
20“Marijuana” does not include the mature stalks of the plant, fiber
21produced from the stalks, oil or cake made from the seeds of the
22plant, any other compound, manufacture, salt, derivative, mixture,
23or preparation of the mature stalks (except the resin extracted
24therefrom), fiber, oil, or cake, or the sterilized seed of the plant
25which is incapable of germination. “Marijuana” also means
26 marijuana, as defined by Section 11018 of the Health and Safety
(a) There is hereby created in the Department of
29Consumer Affairs the Bureau of Medical Marijuana Regulation,
30under the supervision and control of the Chief of the Bureau of
31Medical Marijuana Regulation.
32(b) Protection of the public shall be the highest priority for the
33bureau in exercising its licensing, regulatory, and disciplinary
34functions. Whenever the protection of the public is inconsistent
35with other interests sought to be promoted, the protection of the
36public shall be paramount.
37(c) The bureau shall have the authority to issue conditional
38licenses for the cultivation, manufacture, transportation, storage,
39distribution, and sale of medical marijuana within the state and to
40collect fees in connection with these actions. The bureau shall have
P11 1the authority to create other licenses in order to protect patient
2health and the public and to facilitate the regulation of medical
4(d) The Governor shall appoint the chief at a salary to be fixed
5and determined by the director with the approval of the Director
6of Finance. The chief shall serve in accordance with the State Civil
7Service Act (Part 2 (commencing with Section 18500) of Division
85 of Title 2 of the Government Code).
9(e) The duty of enforcing and administering this part shall be
10vested in the chief, who is responsible to the director. The chief
11may adopt and enforce those rules and regulations that he or she
12determines are reasonably necessary to carry out the purposes of
13this part and declaring the policy of the bureau, including a system
14for the issuance of citations for violations of this part, as specified
15in Section 18126.
16(f) The chief, as necessary to carry out the provisions of this
17part, and in accordance with the State Civil Service Act (Part 2
18(commencing with Section 18500) of Division 5 of Title 2 of the
19Government Code), may appoint and fix the compensation of
20personnel, including, but not limited to, clerical, inspection,
21investigation, and auditing personnel, as well as an assistant chief.
22These personnel shall perform their respective duties under the
23supervision and the direction of the chief.
24(g) Every power granted to, or duty imposed upon, the chief
25under this part may be exercised or performed in the name of the
26chief by a deputy or assistant chief, subject to conditions and
27limitations that the chief prescribes.
28(h) The bureau shall exercise its authority pursuant to this part
29 consistent with Section 1 of the act that added this section and
30consistent with the provisions of this part.
Funds for the establishment and support of the bureau
32shall be advanced as a loan by the department and shall be repaid
33by the initial proceeds from fees collected pursuant to this part or
34any rule or regulation adopted pursuant to this part.
The bureau shall have the authority necessary for the
36implementation of this part, including, but not limited to, all of
38(a) Establishing rules or regulations necessary to carry out the
39purposes and intent of this part and to enable the bureau to exercise
40the powers and perform the duties conferred upon it by this part
P12 1and in accordance with Chapter 3.5 (commencing with Section
211340) of Part 1 of Division 3 of Title 2 of the Government Code.
3For the performance of its duties, the bureau has the powers as set
4forth in Article 2 (commencing with Section 11180) of Chapter 2
5of Part 1 of Division 3 of Title 2 of the Government Code.
6(b) Issuing conditional licenses to persons for the
7manufacture, transportation, storage, distribution, and sale of
8medical marijuana within the state.
9(c) Setting application, licensing, and renewal fees for
10conditional licenses issued pursuant to Section 18117.
11(d) Establishing standards for the cultivation, manufacturing,
12transportation, storage, distribution, provision, donation, and sale
13of medical marijuana and medical marijuana products.
14(e) Establishing procedures for the issuance, renewal,
15suspension, denial, and revocation of conditional licenses.
16(f) Imposing a penalty authorized by this part or any rule or
17regulation adopted pursuant to this part.
18(g) Taking action with respect to an application for a conditional
19 license in accordance with procedures established pursuant to this
21(h) Overseeing the operation of the Medical Marijuana
22Regulation Fund and the Special Account for Environmental
23Enforcement, established pursuant to Section 18118.
24(i) Consulting with other state or local agencies, departments,
25representatives of the medical marijuana community, or public or
26private entities for the purposes of establishing statewide standards
28(j) Certifying laboratories to perform testing of medical
(a) On or before July 1, 2017, the bureau shall
31promulgate regulations for implementation and enforcement of
32this part, including, but not limited to, all of the following:
33(1) Procedures for the issuance, renewal, suspension, denial,
34and revocation of conditional licenses.
35(2) Procedures for appeal of fines and the appeal of denial,
36suspension, or revocation of conditional licenses.
37(3) Application, licensing, and renewal forms and fees.
38(4) A time period in which the bureau shall approve or deny an
39application for a conditional license pursuant to this part.
40(5) Qualifications for licensees.
P13 1(6) Standards for certification of testing laboratories to perform
2random sample testing of all medical marijuana products, including
3standards for onsite testing.
4(A) Certification of testing laboratories shall be consistent with
5general requirements for the competence of testing and calibration
6activities, including sampling, using standard methods established
7by the International Organization for Standardization, specifically
9(B) These requirements shall apply to all entities, including
10third-party laboratories, engaged in the testing of medical marijuana
11pursuant to this part.
12(7) Requirements to ensure conformance with
13analogous to state statutory environmental, agricultural, consumer
14protection, and food and product safety requirements. At a
15minimum, these standards shall do all of the following:
16(A) Prescribe sanitation standards analogous to the California
17Retail Food Code (Part 7 (commencing with Section 113700) of
18Division 104 of the Health and Safety Code) for food preparation,
19storage, handling, and sale of edible medical marijuana products.
20(B) Require that edible medical marijuana products produced,
21distributed, provided, donated, or sold by licensees shall be limited
22to nonpotentially hazardous food, as established by the State
23Department of Public Health pursuant to Section 114365.5.
24(C) Require that facilities in which edible medical marijuana
25products are prepared shall be constructed in accordance with
26 applicable building standards, health and safety standards, and
27other state laws.
28(D) Provide that weighing or measuring devices used in
29connection with the sale or distribution of medical marijuana are
30required to meet standards analogous to Division 5 (commencing
31with Section 12001).
32(E) Require that the application of pesticides or other pest
33control in connection with the indoor or outdoor cultivation of
34medical marijuana shall meet standards analogous to Division 6
35(commencing with Section 11401) of the Food and Agricultural
36Code and its implementing regulations.
37(b) On or before July 1, 2017, the bureau shall also promulgate
38regulations for minimum statewide health and safety standards
39and quality assurance standards associated with the cultivation,
40transport, storage, manufacture, and sale of all medical marijuana
P14 1produced in this state. Consistent with Section 18126, local
2agencies shall have primary responsibility for enforcement of these
3standards in accordance with bureau regulations.
4(c) The bureau shall not issue a conditional license unless the
5applicant has met all of the requirements of this part, including the
6requirements of paragraph (4) of subdivision (d) of Section 18110.
The chief shall keep a complete record of all facilities
8issued a conditional license. This record shall be made available
9on the bureau’s Internet Web site.
The bureau shall establish procedures to provide state
11and local law enforcement, upon their request, with 24-hour access
12to information to verify a conditional license, track transportation
13manifests, and track the inventories of facilities issued a conditional
This part shall in no way supersede the provisions of
16Measure D, approved by the voters of the City of Los Angeles on
17the May 21, 2013, ballot for the city, which granted medical
18marijuana businesses and dispensaries qualified immunity
19consistent with the terms of the measure and local ordinances.
20Notwithstanding the provisions of this part, marijuana businesses
21and dispensaries subject to the provisions of Measure D and its
22qualified immunity shall continue to be subject to the ordinances
23and regulations of the City of Los Angeles.
The following persons are exempt from the requirement
28of licensure under this part:
29(a) A patient who cultivates, possesses, stores, manufactures,
30or transports marijuana exclusively for his or her personal medical
31use and who does not sell, distribute, donate, or provide marijuana
32to any other person or entity.
33(b) A primary caregiver who cultivates, possesses, stores,
34manufactures, transports, or provides marijuana exclusively for
35the personal medical purposes to no more than five specified
36qualified patients for whom he or she is the primary caregiver
37within the meaning of Section 11362.7 of the Health and Safety
38Code and who does not receive remuneration for these activities,
39except for compensation in full compliance with subdivision (c)
40of Section 11362.765 of the Health and Safety Code. Nothing in
P15 1this section shall permit primary caregivers to organize themselves
2as cooperatives or collectives of caregivers.
(a) Except as provided in Section 11362.5 of, and
4Article 2.5 (commencing with Section 11362.7) of Chapter 6 of
5Division 10 of, the Health and Safety Code, a person shall not sell
6or provide medical marijuana to a patient or caregiver other than
7at a licensed dispensing facility or through delivery from a licensed
9(b) Except as provided in Section 11362.5 of, and Article 2.5
10(commencing with Section 11362.7) of Chapter 6 of Division 10
11of, the Health and Safety Code, a person shall not grow medical
12marijuana other than at a licensed cultivation site.
13(c) Except as provided in Section 11362.5 of, and Article 2.5
14(commencing with Section 11362.7) of Chapter 6 of Division 10
15of, the Health and Safety Code, a person shall not manufacture
16medical marijuana or medical marijuana products other than a
18(d) A person shall not transport medical marijuana from one
19facility issued a conditional license to another, other than a licensed
21(e) A licensed manufacturer may obtain medical marijuana from
22a licensed cultivator and may furnish medical marijuana products
23to a licensed dispensary.
24(f) To meet the requirements of Article 8 (commencing with
25Section 111658) of Chapter 6 of Part 5 of Division 104 of the
26Health and Safety Code, medical marijuana and medical marijuana
27products shall be tested by a certified testing laboratory.
(a) Beginning July 1, 2017, the bureau shall provide
29for and shall issue conditional licenses. Conditional licenses shall
30be issued for all activity authorized under this chapter, including,
31but not limited to, cultivation, storage, transport, and dispensing
32of medical marijuana.
33(b) The issuance of a conditional license shall not, in and of
34itself, authorize the recipient to begin business operations. The
35conditional license shall certify, at a minimum, that the applicant
36has paid the state conditional licensing fee, successfully passed a
37criminal background check, and met the state residency
39(c) In order to begin business operations pursuant to this chapter,
40an applicant shall, in addition to the conditional license, obtain a
P16 1license or permit from the local jurisdiction in which he or she
2proposes to operate, following the requirements of the applicable
4(d) An applicant for a conditional license shall do all following:
5(1) Pay the fee or fees required by this part for each license
6being applied for.
7(2) Register with the bureau on forms prescribed by the chief.
8The forms shall contain sufficient information to identify the
9licensee, including all of the following:
10(A) Name of the owner or owners of a proposed facility,
11including all persons or entities having an ownership interest other
12than a security interest, lien, or encumbrance on property that will
13be used by the applicant.
14(B) The name, address, and date of birth of each principal officer
15and board member.
16(C) The address and telephone number of the proposed facility.
17(D) In the case of a cultivation site, the GPS coordinates of the
19(3) Describe, in writing, the scope of business of the proposed
21(4) Provide evidence that the applicant and owner have been
22legal full-time residents of the state for not less than 12 months.
23(5) Provide detailed operating procedures, in writing, for the
24proposed facility, which shall include, but not be limited to,
25procedures for facility and operational security, prevention of
26diversion, employee screening, storage of medical marijuana,
27personnel policies, and recordkeeping procedures.
28(6) Provide the applicant’s fingerprint images. For purposes of
29this paragraph, “applicant” means the owner or owners of a
30proposed facility, including all persons or entities having an
31ownership interest other than a security interest, lien, or
32encumbrance on property that will be used by the facility.
33(A) The applicant shall electronically submit to the Department
34of Justice fingerprint images and related information required by
35the Department of Justice for the purpose of obtaining information
36as to the existence and content of a record of state or federal
37convictions and arrests, and information as to the existence and
38content of a record of state or federal convictions and arrests for
39which the Department of Justice establishes that the person is free
40on bail, or on his or her own recognizance, pending trial or appeal.
P17 1(B) The Department of Justice shall provide a response to the
2bureau pursuant to paragraph (1) of subdivision (p) of Section
311105 of the Penal Code.
4(C) The bureau shall request from the Department of Justice
5subsequent notification service, as provided pursuant to Section
611105.2 of the Penal Code, for persons described in subparagraph
8(D) The Department of Justice shall charge the applicant a fee
9sufficient to cover the reasonable cost of processing the requests
10described in this paragraph.
11(7) Provide a statement, signed by the applicant under penalty
12of perjury, that the information provided is true.
13(8) Provide any other information required by the bureau.
14(e) Each location and each discrete use of a single location shall
15require a conditional license. Each application for a conditional
16license is separate and distinct, and the bureau may charge a
17separate fee for each.
18(f) A conditional license issued pursuant to this section shall be
19valid for 12 months after the date of issuance. The bureau shall
20establish procedures for the renewal of a conditional license.
(a) Upon receipt of the application materials and fee
22required in Section 18110, the bureau, provided the applicant has
23not committed an act or crime constituting grounds for the denial
24of licensure under Section 18112, may issue the conditional license
25and send a proof of issuance to the applicant.
26(b) The chief shall, by regulation, prescribe conditions upon
27which a person whose conditional license has previously been
28denied, suspended, or revoked, may be issued a conditional license.
(a) An application for a conditional license shall be
30denied and a conditional license shall be suspended or revoked for
31a past felony conviction for the possession for sale, sale,
32manufacture, transportation, or cultivation of a controlled
33substance, a felony criminal conviction for drug trafficking, a
34felony conviction for embezzlement, a felony conviction involving
35fraud or deceit, or any violent or serious felony conviction pursuant
36to subdivision (c) of Section 667.5 of, or subdivision (c) of Section
371192.7 of, the Penal Code. The bureau, at its discretion, may issue
38a license to an applicant that would be otherwise denied pursuant
39to this subdivision if the applicant has obtained a certificate of
40rehabilitation, pursuant to Section 4852.13 of the Penal Code.
P18 1(b) The chief, upon his or her determination, may deny, suspend,
2or revoke a conditional license when a conditional licensee,
3applicant, or employee, partner, officer, or member of an entity
4conditionally licensed does any of the following:
5(1) Making or authorizing in any manner or by any means a
6written or oral statement that is untrue or misleading and that is
7known, or that by exercise of reasonable care should be known,
8to be untrue or misleading.
9(2) Any other conduct that constitutes fraud.
10(3) Conduct constituting gross negligence.
11(4) Failure to comply with the provisions of this part, Article 8
12(commencing with Section 111658) of Chapter 6 of Part 5 of
13Division 104 of the Health and Safety Code, or any rule or
14regulation adopted pursuant to this part.
15(5) Conduct that constitutes grounds for denial of licensure
16pursuant to Chapter 2 (commencing with Section 480) of Division
(a) Upon denying, suspending, or revoking a
19conditional license, the chief shall notify the applicant or licensee,
20in writing, by personal service or mail addressed to the address of
21the applicant or licensee set forth in the application. The applicant
22or licensee shall be given a hearing within 30 days thereafter if he
23or she files with the bureau a written request for hearing. Otherwise,
24the denial, suspension, or revocation is deemed affirmed.
25(b) All proceedings to deny, suspend, or revoke a conditional
26license shall be conducted pursuant to Chapter 5 (commencing
27with Section 11500) of Part 1 of Division 3 of Title 2 of the
An application for or renewal of a license shall not be
30approved if the bureau determines any of the following:
31(a) The applicant fails to meet the requirements of this part or
32any regulation adopted pursuant to this part or any applicable city,
33county, or city and county ordinance or regulation. If a local
34government adopts an ordinance or resolution authorizing medical
35marijuana to be cultivated, manufactured, stored, distributed, or
36sold within its jurisdiction, it shall submit to the bureau
37documentation detailing their renewal requirements.
38(b) The applicant, or any of its officers, directors, owners,
39members, or shareholders, is a minor.
P19 1(c) The applicant has knowingly answered a question or request
2for information falsely on the application form or failed to provide
4(d) The applicant, or any of its officers, directors, owners,
5members, or shareholders has been sanctioned by the bureau, a
6city, county, or city and county, for medical marijuana activities
7conducted in violation of this part or any applicable local ordinance
8or has had a license revoked in the previous five years.
9(e) The proposed cultivation, processing, possession, storage,
10manufacturing, testing, transporting, distribution, provision, or
11sale of medical marijuana will violate any applicable local law or
13(f) The applicant or the owner is unable to establish that he or
14she has been a resident of the state for not less than 12 months.
In addition to the provisions of this part, a conditional
16license shall be subject to the restrictions of the local jurisdiction
17in which the facility operates or proposes to operate. Even if a
18conditional license has been granted pursuant to this part, a facility
19shall not operate in a local jurisdiction that prohibits the
20establishment of that type of business.
The bureau may adopt regulations to limit the number
22of conditional licenses issued pursuant to this part upon a finding
23that the otherwise unrestricted issuance of conditional licenses is
24dangerous to the public health and safety.
(a) The conditional licensing fee shall be established
29by the bureau at a level sufficient to fund the reasonable costs of
30all of the following:
31(1) Administrative costs incurred by the bureau in overseeing
32the conditional licensing program, establishing health and safety
33standards, and certifying the required testing laboratories.
34(2) Costs incurred by the bureau or the Department of Justice
35for enforcement of the provisions of this part.
36(3) Costs incurred by law enforcement and other public safety
37entities for enforcing the provisions of this part in their jurisdiction.
38(b) In addition to the conditional licensing fee required pursuant
39to subdivision (a), a cultivation facility shall be assessed a fee in
40a sufficient amount to cover the reasonable regulatory costs of
P20 1enforcing the environmental impact provisions relating to those
2cultivation facilities. This fee shall be distributed, as necessary
3and in proportion to its regulatory function, between the following
4agencies responsible for enforcing the regulations relating to the
5environmental impact of licensed cultivation sites:
6(1) The State Water Board.
7(2) The Department of Fish and Wildlife.
8(3) The Department of Forestry and Fire Protection.
9(4) The Department of Pesticide Regulation.
10(5) The Department of Food and Agriculture.
(a) The Medical Marijuana Regulation Fund is hereby
12established within the State Treasury. Notwithstanding Section
1316305.7 of the Government Code, the fund shall include any
14interest and dividends earned on the money in the fund.
15(b) Except as provided in subdivision (c), all fees collected
16pursuant to this part shall be deposited into the Medical Marijuana
17Regulation Fund. Notwithstanding Section 13340 of the
18Government Code, all moneys within the fund are hereby
19continuously appropriated, without regard to fiscal year, to the
20bureau solely for the purposes of fully funding and administering
21this part, including, but not limited to, the costs incurred by the
22bureau for its administrative expenses.
23(c) The Special Account for Environmental Enforcement is
24hereby established as an account within the Medical Marijuana
25Regulation Fund. Notwithstanding Section 16305.7 of the
26Government Code, the account shall include any interest and
27dividends earned on the money in the account. All fees collected
28pursuant to subdivision (b) of Section 18112 shall be deposited in
29this account. Notwithstanding Section 13340 of the Government
30Code, all moneys within the fund are hereby continuously
31appropriated, without regard to fiscal year, to the bureau for
32distribution to the entities listed in subdivision (b) of Section 18117
33to be used to enforce the environmental regulation of licensed
35(d) All moneys collected as a result of penalties imposed under
36this part shall be deposited directly into the General Fund, to be
37available upon appropriation.
38(e) The bureau may establish and administer a grant program
39to allocate moneys from the Medical Marijuana Regulation Fund
40to state and local entities for the purpose of assisting with medical
P21 1marijuana regulation and the enforcement of this part and other
2state and local laws applicable to licensees.
(a) A facility issued a conditional license shall not
4acquire, cultivate, process, possess, store, manufacture, distribute,
5sell, deliver, transfer, transport, or dispense medical marijuana for
6any purpose other than those authorized by Article 2.5
7(commencing with Section 11362.7) of Chapter 6 of Division 10
8of the Health and Safety Code.
9(b) A licensed dispensing facility shall not acquire, cultivate,
10process, possess, store, manufacture, distribute, sell, deliver,
11transfer, transport, or dispense medical marijuana plants or medical
12marijuana products except through a licensed cultivation site or a
(a) A licensed transporter shall ship only to facilities
18issued a conditional license and only in response to a request for
19a specific quantity and variety from those facilities.
20(b) Prior to transporting medical marijuana products, a licensed
21transporter shall do both of the following:
22(1) Complete a shipping manifest using a form prescribed by
24(2) Securely transmit a copy of the manifest to the licensee that
25will receive the medical marijuana product, and to the bureau,
26prior to transport.
27(c) The licensed transporter making the shipment
28licensee receiving the shipment shall maintain each shipping
29manifest and make it available to local code enforcement officers,
30any other locally designated enforcement entity, and the bureau
(a) Transported medical marijuana products shall:
33(1) Be transported only in a locked, safe, and secure storage
34compartment that is securely affixed to the interior of the
36(2) Not be visible from outside the vehicle.
37(b) A vehicle transporting medical marijuana products shall
38travel directly from one licensed facility to another licensed facility
39authorized to receive the shipment.
(a) All transport vehicles shall be staffed with a
2minimum of two employees. At least one transport team member
3shall remain with the vehicle at all times when the vehicle contains
5(b) Each transport team member shall have access to a secure
6form of communication by which each member can communicate
7with personnel at the licensed facility at all times when the vehicle
8contains medical marijuana.
9(c) Each transport team member shall possess documentation
10of licensing and a government-issued identification card at all
11times when transporting or delivering medical marijuana and shall
12produce it to any representative of the bureau or law enforcement
14(d) This part shall not be construed to authorize or permit a
15licensee to transport, or cause to be transported, medical marijuana
16or medical marijuana products outside the state.
A local jurisdiction shall not prevent transportation
18through or to a facility issued a conditional license, by a
19conditionally licensed transporter who acts in compliance with
A state agency is not required by this section to enforce
25a city, county, city and county, or local law, ordinance, rule, or
26regulation regarding the site or operation of a facility issued a
The bureau may assist state taxation authorities in the
29development of uniform policies for the state taxation of licensees.
(a) For facilities issued a conditional license that are
31located within the incorporated area of a city, the city shall have
32full power and authority to enforce this part and Article 8
33(commencing with Section 111658) of Chapter 6 of Part 5 of
34Division 104 of the Health and Safety Code and the rules,
35regulations, and standards promulgated by the bureau. The city
36shall further assume complete responsibility for any regulatory
37function relating to those licensees within the city limits that would
38otherwise be performed by the county or any county officer or
39employee, without liability, cost, or expense to the county.
P23 1(b) For licensed facilities located within the unincorporated area
2of a county, the county shall have full power and authority to
3 enforce this part and Article 8 (commencing with Section 111658)
4of Chapter 6 of Part 5 of Division 104 of the Health and Safety
5Code and the rules, regulations, and standards promulgated by the
(a) A willful violation of Section 18110, including an
8attempt to falsify information on an application or to otherwise
9defraud or mislead a state or local agency in the course of the
10application process, shall be punishable by a civil fine of up to
11thirty-five thousand dollars ($35,000) for each individual violation.
12(b) A technical violation of Section 18110 shall, at the bureau’s
13discretion, be punishable by a civil fine of up to ten thousand
14dollars ($10,000) for each individual violation.
A district attorney, county counsel, city attorney, or
16city prosecutor may bring an action to enjoin a violation or the
17threatened violation of any provision of this part, including, but
18not limited to, a licensee’s failure to correct objectionable
19conditions following notice or as a result of a rule promulgated
20pursuant to this part. The action shall be brought in the county in
21which the violation occurred or is threatened to occur. A proceeding
22brought pursuant to this part shall conform to the requirements of
23Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of
24the Code of Civil Procedure. Nothing in this section shall diminish
25the authority of a local government to take requisite enforcement
26actions pertaining to its own ordinances or regulations.
Nothing in this part shall prevent a city or other local
28governing body from taking action as specified in Section 11362.83
29of the Health and Safety Code.
This part shall not be construed to limit a law
31enforcement agency’s ability to investigate unlawful activity in
32relation to a facility issued a conditional license.
(a) The Division of Labor Standards Enforcement shall
37do all of the following:
38(1) Maintain minimum standards for the competency and
39training of employees of a licensed cultivation site or a licensed
P24 1dispensing facility, as defined in subdivisions (i) and (j) of Section
218100, through a system of testing and certification.
3(2) Maintain an advisory committee and panels as necessary to
4carry out its functions under this section. There shall be employer
5representation on the committee and panels.
6(3) Establish and collect certification fees not to exceed the
7reasonable cost to the division in issuing certifications.
8(4) Adopt regulations necessary to implement this chapter.
9(5) Issue certification cards to employees who have been
10certified pursuant to this chapter.
11(6) Maintain a cannabis certification curriculum committee
12made up of representatives of the State Department of Education,
13the California Community Colleges, and the division. The
14committee shall do all of the following:
15(A) Establish written educational curriculum standards for
16enrollees in training programs. Curriculum shall include appropriate
17standards for the sale, processing, and cultivation of medical
18marijuana including standards for dispensing, growing, harvesting,
19packaging, labeling, preparing, transporting, delivering, testing,
20storage, and preventing diversion of medical marijuana and related
21products, including edible medical marijuana products.
22(B) If an educational provider’s curriculum meets the written
23educational curriculum standards established in accordance with
24subparagraph (A), designate that curriculum as an approved
25curriculum of classroom instruction.
26(C) At the committee’s discretion, review the approved
27curriculum of classroom instruction of any designated educational
28provider. The committee may withdraw its approval of the
29curriculum if the educational provider does not continue to meet
30the established written educational curriculum standards.
31(D) Require each designated educational provider to submit an
32annual notice to the committee stating whether the educational
33provider is continuing to offer the approved curriculum of
34classroom instruction and whether material changes have been
35made to the curriculum since its approval.
36(b) There shall be no discrimination in favor of, or against, a
37person based on membership or nonmembership in a union.
38(c) For purposes of this chapter, the following definitions apply:
P25 1(1) “Cannabis employee” means an employee of a licensed
2cultivation site or a licensed dispensing facility, as defined in
3subdivisions (i) and (j) of Section 18100.
4(2) “Committee” means the cannabis curriculum certification
5committee established pursuant to paragraph (6) of subdivision
7(3) “Division” means the Division of Labor Standards and
(a) Except as provided in subdivision (c), persons who
10perform work as cannabis employees shall be certified by the
12(b) Individuals desiring to be certified shall submit an
13application for certification and examination that includes an
14employment history report from the Social Security Administration.
15The individual may redact his or her social security number from
16the employment history report before it is submitted.
17(c) (1) Certification is not required for registered apprentices
18working as cannabis employees as part of an apprenticeship
19program approved under a federal Office of Apprenticeship
20program or a state apprenticeship program authorized by the federal
21Office of Apprenticeship. An apprentice who is within one year
22of completion of his or her term of apprenticeship shall be
23permitted to take the certification examination and, upon passing
24the examination, shall be certified immediately upon completion
25of the term of apprenticeship.
26(2) Certification is not required for any person employed
27pursuant to Section 18134.
28(d) The following shall constitute additional grounds for
29disciplinary proceedings, including suspension or revocation of
30the conditional license issued pursuant to this part:
31(1) The licensed cultivation site or licensed dispensing facility
32willfully employs one or more uncertified persons to perform work
33as cannabis employees in violation of this section or Section 18134.
34(2) The licensed cultivation site or licensed dispensing facility
35willfully fails to provide adequate supervision of uncertified
36workers required by paragraph (3) of subdivision (a) of Section
38(3) The licensed cultivation site or licensed dispensing facility
39willfully fails to provide adequate supervision of apprentices
40performing work pursuant to subdivision (c).
P26 1(e) The Labor Commissioner shall maintain a process for
2referring cases to the bureau when it has been determined that a
3violation of this section has likely occurred. The Labor
4Commissioner shall have a memorandum of understanding with
5the bureau in furtherance of this section.
6(f) Upon receipt of a referral by the Labor Commissioner
7alleging a violation under this section, the bureau shall open an
8investigation. Disciplinary action against the licensee shall be
9initiated within 60 days of the receipt of the referral. The bureau
10may initiate disciplinary action against a licensee upon his or her
11own investigation, the filing of a complaint, or a finding that results
12from a referral from the Labor Commissioner alleging a violation
13under this section. Failure of the employer or employee to provide
14evidence of certification or apprentice status shall create a
15rebuttable presumption of violation of this provision.
The division shall do all of the following:
17(a) Make information about cannabis employee certification
18available in languages other than English to the extent the division
19finds it appropriate.
20(b) Provide for the administration of certification tests in Spanish
21and, to the extent practicable, other languages spoken by a
22substantial number of applicants, except when the ability to
23understand warning signs, instructions, and certain other
24information in English is necessary for safety, cultivation, and
26(c) Ensure, in conjunction with the California Apprenticeship
27Council, that all cannabis apprenticeship programs that impose
28 minimum formal education requirements as a condition of entry
29provide for reasonable alternative means of satisfying those
31(d) Ensure, in conjunction with the California Apprenticeship
32Council, that all cannabis apprenticeship programs have adopted
33reasonable procedures for granting credit toward a term of
34apprenticeship for other vocational training and on-the-job training
(a) An uncertified person may perform work for which
37certification is otherwise required in order to acquire the necessary
38on-the-job experience for certification if all of the following
39requirements are met:
P27 1(1) The person is registered with the division. A list of current
2registrants shall be maintained by the division and made available
3to the public upon request.
4(2) The person either has completed or is enrolled in an approved
5curriculum of classroom instruction.
6(3) The employer attests that the person shall be under the direct
7supervision of a cannabis employee certified pursuant to Section
818131 who is responsible for supervising no more than one
9uncertified person. An employer who is found by the division to
10have failed to provide adequate supervision may be barred by the
11division from employing uncertified individuals in the future.
12(b) For purposes of this section, “an approved curriculum of
13classroom instruction” means a curriculum of classroom instruction
14approved by the committee and provided under the jurisdiction of
15the State Department of Education, the Board of Governors of the
16California Community Colleges, or the Bureau for Private
17Postsecondary and Vocational Education.
18(c) The committee may grant approval to an educational provider
19that presently offers only a partial curriculum if the educational
20provider intends in the future to offer, or to cooperate with other
21educational providers to offer, a complete curriculum for the type
22of certification involved. The committee may require an
23educational provider receiving approval for a partial curriculum
24to periodically renew its approval with the committee until a
25complete curriculum is offered and approved.
26(d) An educational provider that receives approval for a partial
27curriculum shall disclose in all communications to students and
28to the public that the educational provider has only received
29approval for a partial curriculum and shall not make any
30representations that the provider offers a complete approved
31curriculum of classroom instruction.
32(e) For purposes of this section, a person is enrolled in an
33approved curriculum of classroom instruction if the person is
34attending classes on a full-time or part-time basis toward the
35completion of an approved curriculum.
36(f) Registration under this section shall be renewed annually
37 and the registrant shall provide to the division certification of the
38classwork completed and on-the-job experience acquired since the
P28 1(g) For purposes of verifying the information provided by a
2person registered with the division, an educational provider shall
3provide an approved curriculum of classroom instruction, and
4shall, upon the division’s request, provide the division with
5information regarding the enrollment status and instruction
6completed by an individual registered. By registering with the
7division in accordance with this section, the individual consents
8to the release of this information.
9(h) The division shall establish registration fees in an amount
10reasonably necessary to implement this section, not to exceed
11twenty-five dollars ($25) for the initial registration. There shall be
12no fee for annual renewal of registration. Fees shall be placed in
13 the Cannabis Certification Fund, established pursuant to Section
15(i) Notwithstanding any other law, an uncertified person who
16has completed an approved curriculum of classroom instruction
17and is currently registered with the division may take the
18certification examination. The person shall be certified upon
19passing the examination and satisfactorily completing the requisite
20number of on-the-job hours required for certification. A person
21who passes the examination prior to completing the requisite hours
22of on-the-job experience shall continue to comply with subdivision
The Cannabis Certification Fund is established as a
25special account in the State Treasury. Proceeds of the fund may
26be expended by the division, upon appropriation by the Legislature,
27for the costs of validating and certifying cannabis employees, as
28provided by this chapter, and shall not be used for any other
(a) A person shall not distribute any form of advertising
34for physician recommendations for medical marijuana in California
35unless the advertisement bears the following notice to consumers:
37NOTICE TO CONSUMERS: The Compassionate Use Act of
381996 ensures that seriously ill Californians have the right to obtain
39and use marijuana for medical purposes where medical use is
40deemed appropriate and has been recommended by a physician
P29 1who has determined that the person’s health would benefit from
2the use of medical marijuana. Physicians are licensed and regulated
3by the Medical Board of California and arrive at the decision to
4make this recommendation in accordance with accepted standards
5of medical responsibility.
7(b) Advertising for physician recommendations for medical
8marijuana shall meet all requirements of Section 651. Price
9advertising shall not be fraudulent, deceitful, or misleading,
10including statements or advertisements of bait, discounts,
11premiums, gifts, or statements of a similar nature.
(a) A facility issued a conditional license shall
13implement sufficient security measures to both deter and prevent
14unauthorized entrance into areas containing marijuana and theft
15of marijuana at those facilities. These security measures shall
16include, but not be limited to, all of the following:
17(1) Preventing individuals from remaining on the premises of
18the facility if they are not engaging in activity expressly related to
19the operations of the facility.
20(2) Establishing limited access areas accessible only to
21authorized facility personnel.
22(3) Storing all finished marijuana in a secured and locked room,
23safe, or vault, and in a manner as to prevent diversion, theft, and
25(b) A facility issued a conditional license shall notify appropriate
26law enforcement authorities within 24 hours after discovering any
27of the following:
28(1) Discrepancies identified during inventory.
29(2) Diversion, theft, loss, or any criminal activity involving the
30facility or a facility agent.
31(3) The loss or unauthorized alteration of records related to
32marijuana, registered qualifying patients, personal caregivers, or
34(4) Any other breach of security.
35(c) A licensed cultivation site shall weigh, inventory, and
36account for on video, all medical marijuana to be transported prior
37to its leaving its origination location. Within eight hours after
38arrival at the destination, the licensed dispensing facility shall
39reweigh, reinventory, and account for on video, all transported
(a) The bureau shall require an annual audit of all
2facilities issued a conditional license to cultivate, manufacture,
3process, transport, store, or sell medical marijuana. The reasonable
4costs of the audit shall be paid for by the licensee.
5(b) Completed audit reports shall also be submitted by the
6licensee to local code enforcement offices, or the appropriate
7locally designated enforcement entity, within 30 days of the
8completion of the audit.
9(c) It is the responsibility of each facility issued a conditional
10license to develop a robust quality assurance protocol that includes
11all of the provisions of this part.
(a) A laboratory certified by the bureau to perform
13random sample testing of medical marijuana products shall not
14acquire, process, possess, store, transfer, transport, or dispense
15medical marijuana for any purpose other than those authorized by
16Article 2.5 (commencing with Section 11362.7) of Chapter 6 of
17Division 10 of the Health and Safety Code. All transfer or
18transportation shall be performed pursuant to a specified chain of
20(b) A laboratory certified by the bureau to perform random
21sample testing of medical marijuana products shall not acquire,
22process, possess, store, transfer, transport, or dispense medical
23marijuana plants or medical marijuana products except through a
24patient, primary caregiver, or a facility issued a conditional license.
25All transfer or transportation shall be performed pursuant to a
26specified chain of custody protocol.
(a) Information identifying the names of patients, their
28medical conditions, or the names of their primary caregivers
29received and contained in records kept by the bureau for the
30purposes of administering this part are confidential and exempt
31from the California Public Records Act (Chapter 3.5 (commencing
32with Section 6250) of Division 7 of Title 1 of the Government
33Code) and are not subject to disclosure to an individual or private
34entity, except as necessary for authorized employees of the state
35to perform official duties pursuant to this part.
36(b) (1) Nothing in this section shall preclude any of the
38(A) Bureau employees notifying state or
local agencies about
39information submitted to the bureau that the employee suspects is
40falsified or fraudulent.
P31 1(B) Notifications from the bureau to state or local agencies of
2apparent violations of this part or an applicable local ordinance.
3(C) Verification of requests by state or local agencies to confirm
4licenses and certificates issued by the bureau or other state agency.
5(D) Providing information requested pursuant to a court order
6or subpoena issued by a court, an administrative agency, or local
7governing body authorized by law to issue subpoenas.
8(2) Information shall not be disclosed beyond what is necessary
9to achieve the goals of a specific investigation or notification or
10the parameters of a specific court order or subpoena.
(a) The actions of a licensee, its employees, and its
12agents, that are permitted pursuant to a conditional license and that
13are conducted in accordance with the requirements of this part and
14regulations adopted pursuant to this part, are not unlawful under
15state law and shall not be an offense subject to arrest or
17(b) The actions of a person who, in good faith and upon
18investigation, allows his or her property to be used by a licensee,
19its employees, and its agents, as permitted pursuant to a conditional
20license, are not unlawful under state law and shall not be an offense
21subject to arrest or prosecution.
22(c) This section shall not be deemed to limit the authority
23remedies of a city, county, or city and county under any provision
24of law, including, without limitation, Section 7 of Article XI of
25the California Constitution.
(a) A licensee shall not cultivate, process, store,
27manufacture, transport, or sell medical marijuana in the state unless
28accurate records are kept at the licensed premises of the growing,
29processing, storing, manufacturing, transporting, or selling by the
30licensee in the state. These records shall include the name and
31address of the supplier of marijuana received or possessed by the
32licensee, the location at which the marijuana was cultivated, the
33amount of marijuana received, the form in which it is received,
34the name of the employee receiving it, and the date of receipt.
35These records shall also include receipts for all expenditures
36incurred by the licensee and banking records, if any, for all funds
37obtained or expended in the performance of any activity under the
38authority of the conditional license. A licensee who has a
39conditional license for more than one premises may keep all records
40at one of the conditionally licensed premises. Required records
P32 1shall be kept for a period of seven years from the date of the
3(b) The bureau and an appropriate state or local agency may
4examine the books and records of a conditional licensee and may
5visit and inspect the premises of a conditional licensee, as the
6bureau or state or local agency deems necessary to perform its
7duties under this part.
8(c) Books or records requested by the bureau or an appropriate
9state or local agency shall be provided by the conditional licensee
10no later than five business days after the request is made.
11(d) The bureau or a state or local agency may enter and inspect
12the premises of a facility issued a conditional license between the
13 hours of 8 a.m. and 8 p.m. on any day that the facility is open, or
14at any reasonable time, to ensure compliance and enforcement of
15the provisions of this part or a local ordinance.
16(e) If a licensee or an employee of a licensee refuses, impedes,
17obstructs, or interferes with an inspection pursuant to subdivision
18(d), the conditional license may be summarily suspended and the
19bureau shall directly commence proceedings for the revocation of
20the conditional license.
21(f) If a licensee or an employee of a licensee fails to maintain
22or provide the books and records required pursuant to this section,
23the licensee shall be subject to a civil fine of fifteen thousand
24dollars ($15,000) per individual violation.
Section 23028 is added to the Government Code, to
(a) (1) In addition to any authority otherwise provided
28by law, the board of supervisors of any county may impose, by
29ordinance, a tax on the privilege of cultivating, dispensing,
30producing, processing, preparing, storing, providing, donating,
31selling, or distributing marijuana by a licensee operating pursuant
32to Chapter 18 (commencing with Section 26000) of Division 9 of
33the Business and Professions Code. The tax may be imposed for
34general governmental purposes or for purposes specified in the
35ordinance by the board of supervisors.
36(2) The board of supervisors shall specify in the ordinance
37proposing the tax the activities subject to the tax, the applicable
38rate or rates, the method of apportionment, and the manner of
39 collection of the tax. A tax imposed pursuant to this section is a
40tax and not a fee or special assessment, and the tax is not required
P33 1to be apportioned on the basis of benefit to any person or property
2or be applied uniformly to all taxpayers or all real property.
3(3) A tax imposed by a county pursuant to this section by a
4county may include a transactions and use tax imposed solely for
5marijuana or marijuana products, which shall otherwise conform
6to Part 1.6 (commencing with Section 7251) of Division 2 of the
7Revenue and Taxation Code. Notwithstanding Section 7251.1 of
8the Revenue and Taxation Code, the tax may be imposed at any
9rate specified by the board of supervisors, and the tax rate
10authorized by this section shall not be considered for purposes of
11the combined tax rate limitation established by that section.
12(4) The tax authorized by this section may be imposed upon
13any or all of the activities set forth in paragraph (1), regardless of
14whether the activity is undertaken individually, collectively, or
15cooperatively, and regardless of whether the activity is for
16compensation or gratuitously, as determined by the board of
18(5) The board of supervisors shall specify whether the tax applies
19throughout the entire county or within the unincorporated area of
21(b) In addition to any other method of collection authorized by
22law, the board of supervisors may provide for the collection of the
23tax imposed pursuant to this section in the same manner, and
24subject to the same penalties and priority of lien, as other charges
25and taxes fixed and collected by the county.
26(c) Any tax imposed pursuant to this section shall be subject to
27applicable voter approval requirements imposed by any other law.
28(d) For purposes of this section, “marijuana” shall have the
29meanings set forth in Section 18100 of the Business and
31(e) This section does not limit or prohibit the levy or collection
32or any other fee, charge, or tax, or any license or service fee or
33charge upon, or related to, the activities set forth in subdivision
34(a) as otherwise provided by law. This section shall not be
35construed as a limitation upon the taxing authority of any county
36as provided by other law.
Section 11362.775 of the Health and Safety Code is
38amended to read:
Qualified patients, persons with valid
40identification cards, and the designated primary caregivers of
P34 1qualified patients and persons with identification cards, who
begin delete associate within the State of California in order collectively or cultivate marijuana for medical purposes, shall
3cooperatively toend delete
4not solely on the basis of that fact be subject to state criminal
5sanctions under Section 11357, 11358, 11359, 11360, 11366,
611366.5, or 11570.
Article 8 (commencing with Section 111658) is added
28to Chapter 6 of Part 5 of Division 104 of the Health and Safety
29Code, to read:
For purpose of this article, the following definitions
35(a) “Bureau” means the Bureau of Medical Marijuana
36Regulations in the Department of Consumer Affairs.
37(b) “Certified testing laboratories” means a laboratory that is
38certified by the bureau to perform random sample testing of
39medical marijuana for patients, primary caregivers, and facilities
40issued conditional licenses pursuant to Part 5 (commencing with
P35 1Section 18100) of Division 7 of the Business and Professions Code,
2pursuant to the certification standards for those facilities
3promulgated by the bureau.
4(c) “Edible medical marijuana product” means medical
5marijuana or a medical marijuana-derived product that is ingested
6or meant to be ingested through the mouth and into the digestive
8(d) “Marijuana” means all parts of the plant Cannabis sativa L.
9sativa, cannabis indica, or cannabis ruderalis, whether growing or
10not; the seeds thereof; the resin, whether crude or purified,
11extracted from any part of the plant; and every compound,
12manufacture, salt, derivative, mixture, or preparation of the plant,
13its seeds, or resin. “Marijuana” does not include the mature stalks
14of the plant, fiber produced from the stalks, oil or cake made from
15the seeds of the plant, any other compound, manufacture, salt,
16derivative, mixture, or preparation of the mature stalks (except the
17resin extracted therefrom), fiber, oil, or cake, or the sterilized seed
18of the plant which is incapable of germination. “Marijuana” also
19means marijuana, as defined by Section 11018.
20(e) “Labor peace agreement” means an agreement between an
21entity and a bona fide labor organization that, at a minimum,
22protects the state’s proprietary interests by prohibiting labor
23organizations and members from engaging in picketing, work
24stoppages, boycotts, and any other economic interference with the
25applicant’s business. This agreement means that the applicant has
26agreed not to disrupt efforts by the bona fide labor organization
27to communicate with, and attempt to organize and represent, the
29(f) “Representative samples” means samples taken from each
30batch or shipment of medical marijuana received from a licensed
31cultivation site or any other source if intended for sale.
The bureau, by July 1, 2017, shall accomplish both
33of the following:
34(a) Establish quality assurance protocols to ensure uniform
35testing standards for all medical marijuana sold via dispensaries
36or other facilities, or cultivated or manufactured by facilities, that
37are issued a conditional license pursuant to Part 5 (commencing
38with Section 18100) of Division 7 of the Business and Professions
P36 1(b) In consultation with outside entities at its discretion, develop
2a list of certified testing laboratories that can perform uniform
3testing in compliance with this article, and post that list on its
4Internet Web site.
(a) A facility issued a conditional license pursuant to
6Part 5 (commencing with Section 18100) of Division 7 of the
7Business and Professions Code shall bear the responsibility for
8contracting with certified testing laboratories for regular, systematic
9testing of representative samples of all medical marijuana cultivated
10or intended for sale or distribution, and shall bear the cost of that
12(b) A facility issued a conditional license pursuant to Part 5
13(commencing with Section 18100) of Division 7 of the Business
14and Professions Code shall maintain records of testing reports for
15seven years, either on site in a digital format or at a secure off-site
16location in either digital or paper format. These facilities shall
17provide results of test reports to local code enforcement officers,
18any other locally designated enforcement entity, and the bureau
Quality assurance protocols shall be required between
21all licensed cultivation sites, licensed manufacturers, and licensed
22dispensing facilities to guarantee safe and reliable medicinal
23marijuana delivery to all patients. These quality assurance protocols
25(a) Providing supplier information to dispensaries in order for
26recall procedures to be implemented, if and when necessary.
27(b) Safety testing of all medical marijuana prior to packaging
28for sale and patient exposure to identify and eliminate
29microbiological contaminants and chemical residue.
30(c) Labeling of all medical marijuana and medical marijuana
31products that shall, at a minimum, include the following:
32(1) List of pharmacologically active ingredients, including, but
33not limited to, tetrahydrocannabinol (THC) and cannabidiol (CBD)
34content, clear recommended dosage, and the size or volume of the
36(2) Clear indication, in bold font, that the product contains
38(3) The statement “FOR MEDICAL USE ONLY. KEEP OUT
39OF REACH OF CHILDREN AND ANIMALS” in bold print.
P37 1(4) Identification of the source and date of cultivation and
3(5) The name and location of the dispensary providing the
5(6) The date of sale.
6(7) Any other requirements set by the bureau.
For purposes of this article, edible medical marijuana
8products are deemed to be unadulterated food products. In addition
9to the quality assurance standards provided in Section 111661, all
10edible medical marijuana products shall comply with the following
12(a) Baked edible medical marijuana products, including, but not
13limited to, brownies, bars, cookies, and cakes, tinctures, and other
14edible medical marijuana products that do not require refrigeration
15or hot holding may be manufactured, sold, or otherwise distributed
16at facilities issued a conditional license pursuant to Part 5
17(commencing with Section 18100) of Division 7 of the Business
18and Professions Code.
19(b) A facility issued a
conditional license pursuant to Part 5
20(commencing with Section 18100) of Division 7 of the Business
21and Professions Code shall have an owner or employee who has
22successfully passed an approved and accredited food safety
23certification examination as specified in Sections 113947.1,
24113947.2, and 113947.3 prior to selling, manufacturing, or
25distributing edible medical marijuana products requiring
26refrigeration or hot holding.
27(c) Individuals manufacturing or selling edible medical
28marijuana products shall thoroughly wash their hands before
29commencing production and before handling finished edible
30medical marijuana products.
31(d) All edible medical marijuana products sold for direct
32consumption and infused with marijuana concentrate shall be
33individually wrapped at the original point of preparation. The
34products shall be packaged in a fashion that does not exceed a
35single dosage for one individual.
36(e) Products containing tetrahydrocannabinol (THC) shall be
37prepared in compliance with maximum potency standards for THC
38and THC concentrates set forth in the bureau’s regulations.
39(f) Prior to sale or distribution at a licensed dispensing facility,
40edible medical marijuana products shall be labeled and in an
P38 1opaque and tamper evident package. Labels and packages of edible
2medical marijuana products shall meet the following requirements:
3(1) Edible medical marijuana packages and labels shall not be
4made to be attractive to children.
5(2) All edible medical marijuana product labels shall include
6the following information, prominently displayed and in a clear
7and legible font:
8(A) Manufacture date and source.
9(B) The statement “KEEP OUT OF REACH OF CHILDREN
10AND ANIMALS” in bold print.
11(C) The statement “FOR MEDICAL USE ONLY.”
12(D) Net weight of medical marijuana in package.
13(E) A warning if nuts or other known allergens are used and
14shall include the total weight, in ounces or grams, of medical
15marijuana in the package.
16(F) List of pharmacologically active ingredients, including, but
17not limited to, tetrahydrocannabinol (THC) and cannabidiol (CBD)
18content, clear recommended dosage, and the size or volume of
20(G) Any other requirement set by the bureau.
21(g) Photos or images of food are not allowed on edible medical
22marijuana product packages or labels.
23(h) Only generic food names may be used to describe edible
24medical marijuana products.
Section 1155.7 of the Labor Code is amended to read:
Nothing in this chapter shall be construed to apply
27or be applicable to
begin delete anyend delete labor organization in its representation
28of workers who are not agricultural employees. Any such labor
29organization shall continue to be governed in its intrastate activities
30for nonagricultural workers by Section 923 and applicable judicial
Section 1158.5 is added to the Labor Code, to read:
(a) The Division of Occupational Safety and Health
38in the Department of Industrial Relations shall develop
39industry-specific regulations related to the activities of facilities
40issued a conditional license pursuant to Part 5 (commencing with
P39 1Section 18100) of Division 7 of the Business and Professions Code,
2including provisions for the establishment of labor peace
3agreements and an apprenticeship program to ensure professional
4standards among industry employees.
5(b) The regulations shall govern agreements between a facility
6issued a conditional license and a bona fide labor organization
7prohibiting labor organizations and members from engaging in
8picketing, work stoppages, boycotts, and other economic
9interference with the licensee’s business. The regulations shall
10also govern agreements whereby the licensee has agreed not to
11disrupt efforts by the bona fide labor organization to communicate
12with, and attempt to organize and represent, the licensee’s
Section 3094 is added to the Labor Code, to read:
The Division of Apprenticeship Standards shall
16investigate, approve, or reject applications for apprenticeship
17programs for employees of a licensed cultivation site or a licensed
18dispensing facility, as defined in subdivisions (i) and (j) of Section
1918100 of the Business and Professions Code. The Division of
20Apprenticeship Standards shall have the authority to issue rules
21necessary to implement and regulate the establishment of the
22apprenticeship programs described in this section.
The provisions of this act are severable. If any
24provision of this act or its application is held invalid, that invalidity
25shall not affect other provisions or applications that can be given
26effect without the invalid provision or application.
The Legislature finds and declares that Section 4 of
28this act imposes a limitation on the public’s right of access to the
29meetings of public bodies or the writings of public officials and
30agencies within the meaning of Section 3 of Article I of the
31California Constitution. Pursuant to that constitutional provision,
32the Legislature makes the following findings to demonstrate the
33interest protected by this limitation and the need for protecting
35The limitation imposed under this act is necessary for purposes
36of compliance with the federal Health Insurance Portability and
37Accountability Act of 1996 (42 U.S.C. Sec. 1320d et seq.), the
38Confidentiality of Medical Information Act (Part 2.6 (commencing
39with Section 56) of Division 1 of the Civil Code), and the Insurance
P40 1Information and Privacy Protection Act (Article 6.6 (commencing
2with Section 791) of Part 2 of Division 1 of the Insurance Code).
No reimbursement is required by this act pursuant to
4Section 6 of Article XIII B of the California Constitution because
5the only costs that may be incurred by a local agency or school
6district will be incurred because this act creates a new crime or
7infraction, eliminates a crime or infraction, or changes the penalty
8for a crime or infraction, within the meaning of Section 17556 of
9the Government Code, or changes the definition of a crime within
10the meaning of Section 6 of Article XIII B of the California