BILL NUMBER: AB 1575 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Members Bonta, Cooley, Jones-Sawyer, Lackey,
and Wood
JANUARY 4, 2016
An act to amend Sections 19300.5, 19316, 19321, 19326, 19332,
19334, 19340, 19342, 19344, and 19350 of, to amend and add Section
19328 of, and to add Sections 19310.5, 19319.5, and 19322.5 to, the
Business and Professions Code, to amend Sections 12025 and 12029 of
the Fish and Game Code, and to amend Sections 11352, 11362.765,
11362.775, and 11379 of the Health and Safety Code, relating to
medical marijuana.
LEGISLATIVE COUNSEL'S DIGEST
AB 1575, as introduced, Bonta. Medical marijuana.
(1) Existing law, the Medical Marijuana Regulation and Safety Act,
establishes the licensing and regulation of medical marijuana. The
act requires the Board of Equalization, in consultation with the
Department of Food and Agriculture, to adopt a system for reporting
the movement of commercial cannabis and cannabis products.
This bill would also require the Board of Equalization to form an
advisory group made up of representatives from financial
institutions, the medical marijuana industry, and state and federal
banking regulators to examine strategies, such as the use of
automated kiosks for accepting cash payments, integrated
point-of-sale systems with state track and trace systems, and other
measures that will improve financial monitoring of medical marijuana
businesses. The bill would require the board, by July 1, 2017, to
submit a report to the Legislature with proposed changes to state law
or regulations that will improve financial monitoring of medical
marijuana businesses and compliance with federal law.
(2) Under the act, a city, county, or city and county is
authorized to adopt an ordinance that establishes standards,
requirements, and regulations for local licenses and permits for
commercial marijuana activity that exceed statewide standards.
The bill would generally prohibit a city, county, or city and
county from adopting an ordinance for packaging safety standards that
exceeds statewide standards and would require the State Department
of Public Health to establish uniform statewide packaging safety
standards.
(3) Under the act, all packaging and sealing of medical marijuana
or medical marijuana products is required to be completed prior to
their being transported or delivered to a licensee, qualified
patient, or caregiver.
This bill would require the Bureau of Medical Marijuana Regulation
to specify the manner in which medical marijuana and medical
marijuana products meant for wholesale purposes are required to be
packaged and sealed prior to transport, testing, quality assurance,
quality control testing, or distribution.
(4) The act generally establishes categories of licenses that may
be issued and limits a licensee to holding a state license in up to 2
separate license categories. The act provides that, upon licensure,
a business shall not be subject to that limitation in a jurisdiction
that adopted a local ordinance, prior to July 1, 2015, allowing or
requiring qualified businesses to cultivate, manufacture, and
dispense medical marijuana or medical marijuana products, with all
commercial marijuana activity being conducted by a single qualified
business. The act repeals these provisions on January 1, 2026.
This bill would instead repeal only the latter provision effective
January 1, 2026.
(5) The act specifically establishes a "nursery license," to be
issued by the Department of Food and Agriculture, for the cultivation
of medical marijuana solely as a nursery, and authorizes a licensee
with a nursery license to transport live plants.
This bill would specify that a licensee with a nursery license may
transport live immature plants, subject to specified tracking,
security, and related requirements.
(6) The act specifically establishes a "dispensary license," to be
issued by the Department of Consumer Affairs, and requires a
licensed dispensary to implement sufficient security measures,
including, at a minimum, certain specified security measures, such as
establishing limited access areas accessible only to authorized
dispensary personnel. The act authorizes a dispensary to deliver in a
city, county, or city and county that does not explicitly prohibit
it by local ordinance.
This bill would also establish a "virtual dispensary license" and
would require dispensaries to implement the additional security
measure of requiring all medical marijuana and medical marijuana
products used for display purposes, samples, or immediate sale to be
stored out of reach of any individual who is not employed by the
dispensary. The bill would require the Bureau of Medical Marijuana
Regulation to establish specified regulations regarding delivery of
medical marijuana and medical marijuana products by a dispensary and
specified requirements for all dispensary employees who deliver
medical marijuana or medical marijuana products.
(7) Under the act, each licensing authority is required to
establish a scale of application, licensing, and renewal fees based
on the cost of enforcing the act.
This bill would specify that these fees shall be in addition to,
and shall not limit, any fees or taxes imposed by any city, county,
or city and county in which the licensee operates.
(8) The act makes a license valid for 12 months from the date of
issuance and requires that a license be renewed annually.
This bill would, notwithstanding that provision, authorize the
Bureau of Medical Marijuana Regulation to issue temporary permits for
business events.
(9) The act requires a licensed testing laboratory to analyze
samples of medical marijuana or medical marijuana products according
to either the most current version of the cannabis inflorescence
monograph published by the American Herbal Pharmacopoeia or a
scientifically valid methodology that, in the opinion of the
accrediting body, is demonstrably equal or superior.
This bill would instead require a licensed testing laboratory to
analyze samples in the final form in which the patient will consume
the medical marijuana or medical marijuana product using a
scientifically valid methodology approved by the accrediting body.
(10) Existing law authorizes the University of California to
create the California Marijuana Research Program, the purpose of
which is to develop and conduct studies intended to ascertain the
general medical safety and efficacy of marijuana, and if found
valuable, to develop medical guidelines for the appropriate
administration and use of marijuana.
This bill would provide that it is not a violation of state law or
any local ordinance or regulation for a business or research
institution engaged in the research of medical marijuana, medical
marijuana products, or devices used for the medical use of marijuana
or marijuana products, to possess, transport, purchase, or otherwise
obtain small amounts of medical marijuana or medical marijuana
products to conduct research and development related to medical
marijuana or medical marijuana products. The bill would require the
Bureau of Medical Marijuana Regulation to issue a medical marijuana
research permit.
(11) Existing law imposes various civil penalties for a violation
of specified provisions of law in connection with the production or
cultivation of a controlled substance, including marijuana, on land
under the management of specified state and federal agencies or
within the ownership of a timberland production zone, as prescribed.
Existing law also imposes various civil penalties for a violation of
those specified provisions of law in connection with the production
or cultivation of a controlled substance, including marijuana, on
land that the person owns, leases, or otherwise uses or occupies with
the consent of the landowner.
The bill would provide that activities that are in compliance with
the Medical Marijuana Regulation and Safety Act are not subject to
the above-described civil penalties.
(12) Under existing law, collectives and cooperatives that
cultivate cannabis are not, solely on that basis, subject to certain
criminal penalties, including unauthorized possession, cultivation,
and transportation of marijuana. This exception for collectives and
cooperatives expires one year after the Bureau of Medical Marijuana
Regulation posts a notice on its Internet Web site that the bureau
has commenced issuing licenses pursuant to the act and existing law
is repealed on the date the bureau issues a license.
This bill would instead provide that the above exception is
repealed one year after the bureau posts its notice on its Internet
Web site. The bill would also specify that a collective or
cooperative subject to this exception may operate on a for-profit
basis, a not-for-profit basis, or any combination thereof. The bill
would also specify that a licensee under the act may operate on a
for-profit basis, a not-for-profit basis, or any combination thereof.
(13) Existing law provides that a qualified patient or a person
with an identification card, a designated primary caregiver, and any
individual who provides assistance to a qualified patient or a person
with an identification card, or his or her designated primary
caregiver, are not, solely on that basis, subject to certain criminal
penalties, including unauthorized possession, cultivation, and
transportation of marijuana. Existing law specifies that this
provision does not authorize any individual or group to cultivate or
distribute marijuana.
This bill would instead specify that this provision does not
authorize any individual or group to cultivate or distribute
marijuana in any manner other than set forth in the Medical Marijuana
Regulation and Safety Act or in the Compassionate Use Act of 1996.
(14) Existing law makes it a crime to transport, import into this
state, sell, furnish, administer, or give away, or offers to
transport, import into this state, sell, furnish, administer, or give
away, or attempt to import into this state or transport, or to
transport for sale between counties of the state any controlled
substance, including marijuana.
This bill would except from these provisions any commercial
marijuana activity by a holder of a state license under the Medical
Marijuana Regulation and Safety Act.
(15) This bill would also make technical, nonsubstantive changes
to the provisions of the act.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 19300.5 of the Business and Professions Code is
amended to read:
19300.5. For purposes of this chapter, the following definitions
shall apply:
(a) "Accrediting body" means a nonprofit organization that
requires conformance to ISO/IEC 17025 requirements and is a signatory
to the International Laboratory Accreditation Cooperation Mutual
Recognition Arrangement for Testing.
(b) "Applicant," for purposes of Article 4 (commencing with
Section 19319), means the following:
(1) (A) Owner or owners of a proposed
facility, including all persons or entities having ownership
interest other than a security interest, lien, or encumbrance on
property that will be used by the facility. facility.
(2) If the owner is an entity, "owner" includes within the entity
each person participating in the direction, control, or management
of, or having a financial interest in, the proposed facility.
(B) An "owner" means any person having an aggregate ownership
interest, other than a security interest, lien, or encumbrance, of 5
percent or more in the licensee and who has the power to direct, or
cause to be directed, the management or control of the licensee.
(3)
(2) If the applicant is a publicly traded
company, "owner" means the chief executive officer , any member
of the board of directors, or any person or entity with an
aggregate ownership interest of 5 percent or more. If the
applicant is a nonprofit entity, "owner" means both the chief
executive officer and any member of the board of directors.
(c) "Batch" means a specific quantity of medical cannabis
marijuana or medical cannabis
marijuana products that is intended to have
uniform character and quality, within specified limits, and is
produced according to a single manufacturing order during the same
cycle of manufacture.
(d) "Bureau" means the Bureau of Medical Marijuana Regulation
within the Department of Consumer Affairs.
(e) "Cannabinoid" or "phytocannabinoid" means a chemical compound
that is unique to and derived from cannabis.
(f) "Cannabis" or "marijuana" means all parts of the
plant Cannabis sativa Linnaeus, 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. "Cannabis" or
"marijuana" also means the separated resin, whether crude or
purified, obtained from marijuana. "Cannabis" or "marijuana
" also means marijuana as defined by Section 11018
of the Health and Safety Code as enacted by Chapter 1407 of the
Statutes of 1972. "Cannabis" or "marijuana "
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. For the purpose of this chapter, "cannabis" or
"marijuana " does not mean "industrial hemp" as
defined by Section 81000 of the Food and Agricultural Code or Section
11018.5 of the Health and Safety Code.
(g) "Cannabis concentrate" or "marijuana concentrate
" means manufactured cannabis
marijuana that has undergone a process to concentrate the
cannabinoid active ingredient, thereby increasing the product's
potency. An edible medical cannabis marijuana
product is not considered food, as defined by Section 109935
of the Health and Safety Code, or a drug, as defined by Section
109925 of the Health and Safety Code.
(h) "Caregiver" or "primary caregiver" has the same meaning as
that term is defined in Section 11362.7 of the Health and Safety
Code.
(i) "Certificate of accreditation" means a certificate issued by
an accrediting body to a licensed testing laboratory, entity, or site
to be registered in the state.
(j) "Chief" means Chief of the Bureau of Medical Marijuana
Regulation within the Department of Consumer Affairs.
(k) "Commercial cannabis marijuana
activity" includes cultivation, possession, manufacture, processing,
storing, laboratory testing, labeling, transporting, distribution, or
sale of medical cannabis marijuana or
a medical cannabis marijuana product,
except as set forth in Section 19319, related to qualifying patients
and primary caregivers.
(l) "Cultivation" means any activity involving the planting,
growing, harvesting, drying, curing, grading, or trimming of
cannabis. marijuana.
(m) "Delivery" means the commercial transfer of medical
cannabis marijuana or medical cannabis
marijuana products from a dispensary, up to an
amount determined by the bureau to a primary caregiver or qualified
patient as defined in Section 11362.7 of the Health and Safety Code,
or a testing laboratory. "Delivery" also includes the use by a
dispensary of any technology platform owned and controlled by the
dispensary, or independently licensed under this chapter, that
enables qualified patients or primary caregivers to arrange for or
facilitate the commercial transfer by a licensed dispensary of
medical cannabis marijuana or medical
cannabis marijuana products.
(n) "Dispensary" means a facility where medical cannabis,
marijuana, medical cannabis
marijuana products, or devices for the use of medical
cannabis marijuana or medical
cannabis marijuana products are offered, either
individually or in any combination, for retail sale, including an
establishment that delivers, pursuant to express authorization by
local ordinance, medical cannabis marijuana
and medical cannabis marijuana
products as part of a retail sale. "Dispensary" includes a
virtual dispensary for purposes of regulation.
(o) "Dispensing" means any activity involving the retail sale of
medical cannabis marijuana or medical
cannabis marijuana products from a
dispensary.
(p) "Distribution" means the procurement, sale, and transport of
medical cannabis marijuana and medical
cannabis marijuana products between
entities licensed pursuant to this chapter.
(q) "Distributor" means a person licensed under this chapter to
engage in the business of purchasing medical cannabis
marijuana from a licensed cultivator, or medical
cannabis marijuana products from a
licensed manufacturer, for sale to a licensed dispensary.
(r) "Dried flower" means all dead medical cannabis
marijuana that has been harvested, dried, cured,
or otherwise processed, excluding leaves and stems.
(s) "Edible cannabis marijuana
product" means manufactured cannabis
marijuana that is intended to be used, in whole or in part, for
human consumption, including, but not limited to, chewing gum. An
edible medical cannabis marijuana
product is not considered food as defined by Section 109935 of the
Health and Safety Code or a drug as defined by Section 109925 of the
Health and Safety Code.
(t) "Fund" means the Medical Marijuana Regulation and Safety Act
Fund established pursuant to Section 19351.
(u) "Identification program" means the universal identification
certificate program for commercial medical cannabis
marijuana activity authorized by this chapter.
(v) "Labor peace agreement" means an agreement between a licensee
and a bona fide labor organization that, at a minimum, protects the
state's proprietary interests by prohibiting labor organizations and
members from engaging in picketing, work stoppages, boycotts, and any
other economic interference with the applicant's business. This
agreement means that the applicant has agreed not to disrupt efforts
by the bona fide labor organization to communicate with, and attempt
to organize and represent, the applicant's employees. The agreement
shall provide a bona fide labor organization access at reasonable
times to areas in which the applicant's employees work, for the
purpose of meeting with employees to discuss their right to
representation, employment rights under state law, and terms and
conditions of employment. This type of agreement shall not mandate a
particular method of election or certification of the bona fide labor
organization.
(w) "Licensing authority" means the state agency responsible for
the issuance, renewal, or reinstatement of the license, or the state
agency authorized to take disciplinary action against the license.
(x) "Cultivation site" means a facility where medical
cannabis marijuana is planted, grown, harvested,
dried, cured, graded, or trimmed, or that does all or any
combination of those activities, that holds a valid state license
pursuant to this chapter, and that holds a valid local license or
permit.
(y) "Manufacturer" means a person that conducts the production,
preparation, propagation, or compounding of manufactured medical
cannabis, marijuana, as described in
subdivision (ae), or medical cannabis
marijuana products either directly or indirectly or by
extraction methods, or independently by means of chemical synthesis
or by a combination of extraction and chemical synthesis at a fixed
location that packages or repackages medical cannabis
marijuana or medical cannabis
marijuana products or labels or relabels its container,
that holds a valid state license pursuant to this chapter, and that
holds a valid local license or permit.
(z) "Testing laboratory" means a facility, entity, or site in the
state that offers or performs tests of medical cannabis
marijuana or medical cannabis
marijuana products and that is both of the following:
(1) Accredited by an accrediting body that is independent from all
other persons involved in the medical cannabis
marijuana industry in the state.
(2) Registered with the State Department of Public Health.
(aa) "Transporter" means a person issued a state license by the
bureau to transport medical cannabis
marijuana or medical cannabis marijuana
products in an amount above a threshold determined by the
bureau between facilities that have been issued a state license
pursuant to this chapter.
(ab) "Licensee" means a person issued a state license under this
chapter to engage in commercial cannabis
marijuana activity.
(ac) "Live plants" means living medical cannabis
marijuana flowers and plants, including seeds,
immature plants, and vegetative stage plants.
(ad) "Lot" means a batch, or a specifically identified portion of
a batch, having uniform character and quality within specified
limits. In the case of medical cannabis
marijuana or a medical cannabis
marijuana product produced by a continuous process, "lot" means
a specifically identified amount produced in a unit of time or a
quantity in a manner that ensures its having uniform character and
quality within specified limits.
(ae) "Manufactured cannabis" or "manufactured marijuana
" means raw cannabis marijuana
that has undergone a process whereby the raw agricultural
product has been transformed into a concentrate, an edible product,
or a topical product.
(af) "Manufacturing site" means a location that produces,
prepares, propagates, or compounds manufactured medical
cannabis marijuana or medical cannabis
marijuana products, directly or indirectly, by
extraction methods, independently by means of chemical synthesis, or
by a combination of extraction and chemical synthesis, and is owned
and operated by a licensee for these activities.
(ag) "Medical cannabis," "medical cannabis product," or
"cannabis product" product,"
"medical marijuana," "medical marijuana product," or "marijuana
product " means a product containing
cannabis, marijuana, including, but not limited
to, concentrates and extractions, intended to be sold for use by
medical cannabis marijuana patients in
California pursuant to the Compassionate Use Act of 1996 (Proposition
215), found at Section 11362.5 of the Health and Safety Code. For
the purposes of this chapter, "medical cannabis" or "medical
marijuana " does not include "industrial hemp" as
defined by Section 81000 of the Food and Agricultural Code or Section
11018.5 of the Health and Safety Code.
(ah) "Nursery" means a licensee that produces only clones,
immature plants, seeds, and other agricultural products used
specifically for the planting, propagation, and cultivation of
medical cannabis. marijuana.
(ai) "Permit," "local license," or "local permit" means an
official document granted by a local jurisdiction that specifically
authorizes a person to conduct commercial cannabis
marijuana activity in the local jurisdiction.
(aj) "Person" means an 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.
(ak) "State license," "license," or "registration" means a state
license issued pursuant to this chapter.
(al) "Topical cannabis" or "topical marijuana "
means a product intended for external use. A topical
cannabis marijuana product is not considered a
drug as defined by Section 109925 of the Health and Safety Code.
(am) "Transport" means the transfer of medical cannabis
marijuana or medical cannabis
marijuana products from the permitted business location
of one licensee to the permitted business location of another
licensee, for the purposes of conducting commercial cannabis
marijuana activity authorized pursuant to this
chapter.
SEC. 2. Section 19310.5 is added to the Business and Professions
Code, to read:
19310.5. (a) It is the intent of the Legislature to enact a
statute that improves the medical marijuana industry's ability to
comply with federal law and regulations that would allow improved
access to financial services.
(b) (1) The State Board of Equalization shall form an advisory
group made up of representatives from financial institutions, the
medical marijuana industry, and state and federal banking regulators.
By July 1, 2017, the board shall submit a report to the Legislature
with proposed changes to state law or regulations that will improve
financial monitoring of medical marijuana businesses and improve
compliance with federal law.
(2) A report submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government Code. The
requirment for submitting a report imposed in paragraph (1) is
inoperative on July 1, 2021, pursuant to Section 10231.5 of the
Government Code.
(c) The advisory group shall examine strategies, such as the use
of automated kiosks for accepting cash payments, integrated
point-of-sale systems with state track and trace systems, and other
measures that will improve financial monitoring of medical marijuana
businesses.
SEC. 3. Section 19316 of the Business and Professions Code is
amended to read:
19316. (a) Pursuant (1)
Except as described in paragraph (2), and pursuant to
Section 7 of Article XI of the California Constitution, a city,
county, or city and county may adopt ordinances that establish
additional standards, requirements, and regulations for local
licenses and permits for commercial cannabis
marijuana activity. Any standards, requirements, and
regulations regarding health and safety, testing, security, and
worker protections established by the state shall be the minimum
standards for all licensees statewide.
(2) Packaging safety standards shall be uniform across the state
and shall be established by the State Department of Public Health.
(3) For purposes of this subdivision, packaging safety standards
do not include packaging requirements related to appellations of
origin or other branding or marketing materials.
(b) For facilities issued a state license that are located within
the incorporated area of a city, the city shall have full power and
authority to enforce this chapter and the regulations promulgated by
the bureau or any licensing authority, if delegated by the state.
Notwithstanding Sections 101375, 101400, and 101405 of the Health and
Safety Code or any contract entered into pursuant thereto, or any
other law, the city shall further assume complete responsibility for
any regulatory function relating to those licensees within the city
limits that would otherwise be performed by the county or any county
officer or employee, including a county health officer, without
liability, cost, or expense to the county.
(c) Nothing in this chapter, or any regulations promulgated
thereunder, shall be deemed to limit the authority or remedies of a
city, county, or city and county under any provision of law,
including, but not limited to, Section 7 of Article XI of the
California Constitution.
SEC. 4. Section 19319.5 is added to the Business and Professions
Code, to read:
19319.5. (a) (1) It shall not be a violation of this chapter or
any other state law, and it shall not be a violation of any local
ordinance or regulation for a business or research institution
engaged in the research of medical marijuana, medical marijuana
products, or devices used for the medical use of marijuana or
marijuana products, to possess, transport, purchase, or otherwise
obtain small amounts of medical marijuana or medical marijuana
products, as determined by the bureau but not to exceed eight ounces
per month, as necessary to conduct research and development related
to medical marijuana or medical marijuana products.
(2) Medical marijuana or medical marijuana products subject to
this section shall be obtained only from a person or entity licensed
pursuant to this chapter, who is permitted to provide or deliver the
medical marijuana or medical marijuana product. The business or
research institution shall obtain a medical marijuana research permit
pursuant to subdivision (b).
(b) The bureau shall issue a medical marijuana research permit to
allow for permitholders to pursue the research described in
subdivision (a). It is the intent of the Legislature to establish
minimum requirements for the medical marijuana research permit,
including the following:
(1) The requirement for all medical marijuana and medical
marijuana products used under a medical marijuana research permit to
be subject to all requirements of the state's track and trace program
established pursuant to this chapter.
(2) The requirement that all applicants for a medical marijuana
research permit obtain permission to operate from the local
jurisdiction in which the applicant intends to conduct the research.
(3) The maximum amount of medical marijuana and medical marijuana
products that may be obtained per month for research purposes. In no
case shall a permitholder obtain more than eight ounces per month for
research purposes.
SEC. 5. Section 19321 of the Business and Professions Code is
amended to read:
19321. (a) The Department of Consumer Affairs, the Department of
Food and Agriculture, and the State Department of Public Health shall
promulgate regulations for implementation of their respective
responsibilities in the administration of this chapter.
(b) A Except as described in subdivision
(e), a license issued pursuant to this section shall be valid
for 12 months from the date of issuance. The license shall be renewed
annually. Each licensing authority shall establish procedures for
the renewal of a license.
(c) Notwithstanding subdivision (a) of Section 19320, a facility
or entity that is operating in compliance with local zoning
ordinances and other state and local requirements on or before
January 1, 2018, may continue its operations until its application
for licensure is approved or denied pursuant to this chapter. In
issuing licenses, the licensing authority shall prioritize any
facility or entity that can demonstrate to the authority's
satisfaction that it was in operation and in good standing with the
local jurisdiction by January 1, 2016.
(d) Issuance of a state license or a determination of compliance
with local law by the licensing authority shall in no way limit the
ability of the City of Los Angeles to prosecute any person or entity
for a violation of, or otherwise enforce, Proposition D, approved by
the voters of the City of Los Angeles on the May 21, 2013, ballot for
the city, or the city's zoning laws. Nor may issuance of a license
or determination of compliance with local law by the licensing
authority be deemed to establish, or be relied upon, in determining
satisfaction with the immunity requirements of Proposition D or local
zoning law, in court or in any other context or forum.
(e) The bureau may issue temporary permits for business events. It
is the intent of the Legislature to establish minimum standards and
requirements for temporary permits for medical marijuana and medical
marijuana products.
SEC. 6. Section 19322.5 is added to the Business and Professions
Code, to read:
19322.5. A licencee may operate as a for-profit business, as a
not-for-profit entity, or as a combination of both.
SEC. 7. Section 19326 of the Business and Professions Code is
amended to read:
19326. (a) A person other than a licensed transporter shall not
transport medical cannabis marijuana or
medical cannabis marijuana products
from one licensee to another licensee, unless otherwise specified in
this chapter.
(b) All licensees holding cultivation or manufacturing licenses
shall send all medical cannabis marijuana
and medical cannabis marijuana
products cultivated or manufactured to a distributor, as defined in
Section 19300.5, for quality assurance and inspection by the Type 11
licensee and for a batch testing by a Type 8 licensee prior to
distribution to a dispensary. Those licensees holding a Type 10A
license in addition to a cultivation license or a manufacturing
license shall send all medical cannabis
marijuana and medical cannabis
marijuana products to a Type 11 licensee for presale inspection
and for a batch testing by a Type 8 licensee prior to dispensing any
product. The licensing authority shall fine a licensee who violates
this subdivision in an amount determined by the licensing authority
to be reasonable.
(c) (1) Upon receipt of medical cannabis
marijuana or medical cannabis marijuana
products by a holder of a cultivation or manufacturing
license, the Type 11 licensee shall first inspect the product to
ensure the identity and quantity of the product and then ensure a
random sample of the medical cannabis
marijuana or medical cannabis marijuana
product is tested by a Type 8 licensee prior to distributing
the batch of medical cannabis or medical cannabis products.
batch.
(2) Upon issuance of a certificate of analysis by the Type 8
licensee that the product is fit for manufacturing or retail, all
medical cannabis marijuana and medical
cannabis marijuana products shall
undergo a quality assurance review by the Type 11 licensee prior to
distribution to ensure the quantity and content of the medical
cannabis marijuana or medical
cannabis marijuana product, and for tracking and
taxation purposes by the state. Licensed cultivators and
manufacturers shall package or seal all medical cannabis
marijuana and medical cannabis
marijuana products in tamper-evident packaging
and use a unique identifier, as prescribed by the Department of Food
and Agriculture, for the purpose of identifying and tracking medical
cannabis marijuana or medical
cannabis marijuana products. Medical
cannabis marijuana and medical cannabis
marijuana products shall be labeled as required
by Section 19347 , except as otherwise specified in this
chapter . All packaging and sealing shall be completed prior to
medical cannabis marijuana or medical
cannabis marijuana products being
transported or delivered to a licensee, qualified patient, or
caregiver. caregiver, except as otherwise
specified in this chapter. The bureau shall specify the manner in
which medical marijuana and medical marijuana products meant for
wholesale purposes shall be packaged and sealed prior to transport,
testing, quality assurance, quality control testing, or distribution.
(3) This section does not limit the ability of licensed
cultivators, manufacturers, and dispensaries to directly enter into
contracts with one another indicating the price and quantity of
medical cannabis marijuana or medical
cannabis marijuana products to be
distributed. However, a Type 11 licensee responsible for executing
the contract is authorized to collect a fee for the services
rendered, including, but not limited to, costs incurred by a Type 8
licensee, as well as applicable state or local taxes and fees.
(d) Medical cannabis marijuana and
medical cannabis marijuana products
shall be tested by a registered testing laboratory, prior to retail
sale or dispensing, as follows:
(1) Medical cannabis marijuana from
dried flower shall, at a minimum, be tested for concentration,
pesticides, mold, and other contaminants.
(2) Medical cannabis marijuana
extracts shall, at a minimum, be tested for concentration and purity
of the product.
(3) This chapter shall not prohibit a licensee from performing
on-site testing for the purposes of quality assurance of the product
in conjunction with reasonable business operations. On-site testing
by the licensee shall not be certified by the State Department of
Public Health.
(e) All commercial cannabis marijuana
activity shall be conducted between licensees, when these are
available.
SEC. 8. Section 19328 of the Business and Professions Code is
amended to read:
19328. (a) A Except as specified in
paragraph (9), a licensee may only hold a state license in up
to two separate license categories, as follows:
(1) Type 1, 1A, 1B, 2, 2A, or 2B licensees may also hold either a
Type 6 or 7 state license.
(2) Type 6 or 7 licensees, or a combination thereof, may also hold
either a Type 1, 1A, 1B, 2, 2A, or 2B state license.
(3) Type 6
or 7 licensees, or a combination thereof, may also hold a Type 10A
state license.
(4) Type 10A licensees may also hold either a Type 6 or 7 state
license, or a combination thereof.
(5) Type 1, 1A, 1B, 2, 2A, or 2B licensees, or a combination
thereof, may also hold a Type 10A state license.
(6) Type 10A licensees may apply for Type 1, 1A, 1B, 2, 2A, or 2B
state license, or a combination thereof.
(7) Type 11 licensees shall apply for a Type 12 state license, but
shall not apply for any other type of state license.
(8) Type 12 licensees may apply for a Type 11 state license.
(9) A Type 10A licensee may apply for a Type 6 or 7 state license
and hold a 1, 1A, 1B, 2, 2A, 2B, 3, 3A, 3B, 4 or combination thereof
if, under the 1, 1A, 1B, 2, 2A, 2B, 3, 3A, 3B, 4 or combination of
licenses thereof, no more than four acres of total canopy size of
cultivation by the licensee is occurring throughout the state during
the period that the respective licenses are valid. All cultivation
pursuant to this section shall comply with local ordinances.
This paragraph shall become inoperative on January 1, 2026.
By January 1, 2025, the bureau shall review the
appropriateness of continuing licensure under this paragraph and
shall reports its recommendation for elimination or extension of
these provisions to the Legislature.
(b) Except as provided in subdivision (a), a person or entity that
holds a state license is prohibited from licensure for any other
activity authorized under this chapter, and is prohibited from
holding an ownership interest in real property, personal property, or
other assets associated with or used in any other license category.
(c) (1) In a jurisdiction that adopted a local ordinance, prior to
July 1, 2015, allowing or requiring qualified businesses to
cultivate, manufacture, and dispense medical cannabis
marijuana or medical cannabis
marijuana products, with all commercial cannabis
marijuana activity being conducted by a single
qualified business, upon licensure that business shall not be subject
to subdivision (a) if it meets all of the following conditions:
(A) The business was cultivating, manufacturing, and dispensing
medical cannabis marijuana or medical
cannabis marijuana products on July 1,
2015, and has continuously done so since that date.
(B) The business has been in full compliance with all applicable
local ordinances at all times prior to licensure.
(C) The business is registered with the State Board of
Equalization.
(2) A business licensed pursuant to paragraph (1) is not required
to conduct all cultivation or manufacturing within the bounds of a
local jurisdiction, but all cultivation and manufacturing shall have
commenced prior to July 1, 2015, and have been in full compliance
with applicable local ordinances.
(d) This section shall remain in effect only until January 1,
2026, and as of that date is repealed.
SEC. 9. Section 19328 is added to the Business and Professions
Code, to read:
19328. (a) A licensee may only hold a state license in up to two
separate license categories, as follows:
(1) Type 1, 1A, 1B, 2, 2A, or 2B licensees may also hold either a
Type 6 or 7 state license.
(2) Type 6 or 7 licensees, or a combination thereof, may also hold
either a Type 1, 1A, 1B, 2, 2A, or 2B state license.
(3) Type 6 or 7 licensees, or a combination thereof, may also hold
a Type 10A state license.
(4) Type 10A licensees may also hold either a Type 6 or 7 state
license, or a combination thereof.
(5) Type 1, 1A, 1B, 2, 2A, or 2B licensees, or a combination
thereof, may also hold a Type 10A state license.
(6) Type 10A licensees may apply for Type 1, 1A, 1B, 2, 2A, or 2B
state license, or a combination thereof.
(7) Type 11 licensees shall apply for a Type 12 state license, but
shall not apply for any other type of state license.
(8) Type 12 licensees may apply for a Type 11 state license.
(9) A Type 10A licensee may apply for a Type 6 or 7 state license
and hold a 1, 1A, 1B, 2, 2A, 2B, 3, 3A, 3B, 4 or combination thereof
if, under the 1, 1A, 1B, 2, 2A, 2B, 3, 3A, 3B, 4 or combination of
licenses thereof, no more than four acres of total canopy size of
cultivation by the licensee is occurring throughout the state during
the period that the respective licenses are valid. All cultivation
pursuant to this section shall comply with local ordinances.
(b) Except as provided in subdivision (a), a person or entity that
holds a state license is prohibited from licensure for any other
activity authorized under this chapter, and is prohibited from
holding an ownership interest in real property, personal property, or
other assets associated with or used in any other license category.
(c) This section shall become operative on January 1, 2026.
SEC. 10. Section 19332 of the Business and Professions Code is
amended to read:
19332. (a) The Department of Food and Agriculture shall
promulgate regulations governing the licensing of indoor and outdoor
cultivation sites.
(b) The Department of Pesticide Regulation, in consultation with
the Department of Food and Agriculture, shall develop standards for
the use of pesticides in cultivation, and maximum tolerances for
pesticides and other foreign object residue in harvested
cannabis. marijuana.
(c) The State Department of Public Health shall develop standards
for the production and labeling of all edible medical
cannabis marijuana products.
(d) The Department of Food and Agriculture, in consultation with
the Department of Fish and Wildlife and the State Water Resources
Control Board, shall ensure that individual and cumulative effects of
water diversion and discharge associated with cultivation do not
affect the instream flows needed for fish spawning, migration, and
rearing, and the flows needed to maintain natural flow variability.
(e) The Department of Food and Agriculture shall have the
authority necessary for the implementation of the regulations it
adopts pursuant to this chapter. The regulations shall do all of the
following:
(1) Provide that weighing or measuring devices used in connection
with the sale or distribution of medical cannabis
marijuana are required to meet standards equivalent to
Division 5 (commencing with Section 12001).
(2) Require that cannabis marijuana
cultivation by licensees is conducted in accordance with state and
local laws related to land conversion, grading, electricity usage,
water usage, agricultural discharges, and similar matters. Nothing in
this chapter, and no regulation adopted by the department, shall be
construed to supersede or limit the authority of the State Water
Resources Control Board, regional water quality control boards, or
the Department of Fish and Wildlife to implement and enforce their
statutory obligations or to adopt regulations to protect water
quality, water supply, and natural resources.
(3) Establish procedures for the issuance and revocation of unique
identifiers for activities associated with a cannabis
marijuana cultivation license, pursuant to
Article 8 (commencing with Section 19337). All cannabis
marijuana shall be labeled with the unique
identifier issued by the Department of Food and Agriculture.
(4) Prescribe standards, in consultation with the bureau, for the
reporting of information as necessary related to unique identifiers,
pursuant to Article 8 (commencing with Section 19337).
(f) The Department of Pesticide Regulation, in consultation with
the State Water Resources Control Board, shall promulgate regulations
that require that the application of pesticides or other pest
control in connection with the indoor or outdoor cultivation of
medical cannabis marijuana meets
standards equivalent to Division 6 (commencing with Section 11401) of
the Food and Agricultural Code and its implementing regulations.
(g) State cultivator license types issued by the Department of
Food and Agriculture include:
(1) Type 1, or "specialty outdoor," for outdoor cultivation using
no artificial lighting of less than or equal to 5,000 square feet of
total canopy size on one premises, or up to 50 mature plants on
noncontiguous plots.
(2) Type 1A, or "specialty indoor," for indoor cultivation using
exclusively artificial lighting of less than or equal to 5,000 square
feet of total canopy size on one premises.
(3) Type 1B, or "specialty mixed-light," for cultivation using a
combination of natural and supplemental artificial lighting at a
maximum threshold to be determined by the licensing authority, of
less than or equal to 5,000 square feet of total canopy size on one
premises.
(4) Type 2, or "small outdoor," for outdoor cultivation using no
artificial lighting between 5,001 and 10,000 square feet, inclusive,
of total canopy size on one premises.
(5) Type 2A, or "small indoor," for indoor cultivation using
exclusively artificial lighting between 5,001 and 10,000 square feet,
inclusive, of total canopy size on one premises.
(6) Type 2B, or "small mixed-light," for cultivation using a
combination of natural and supplemental artificial lighting at a
maximum threshold to be determined by the licensing authority,
between 5,001 and 10,000 square feet, inclusive, of total canopy size
on one premises.
(7) Type 3, or "outdoor," for outdoor cultivation using no
artificial lighting from 10,001 square feet to one acre, inclusive,
of total canopy size on one premises. The Department of Food and
Agriculture shall limit the number of licenses allowed of this type.
(8) Type 3A, or "indoor," for indoor cultivation using exclusively
artificial lighting between 10,001 and 22,000 square feet,
inclusive, of total canopy size on one premises. The Department of
Food and Agriculture shall limit the number of licenses allowed of
this type.
(9) Type 3B, or "mixed-light," for cultivation using a combination
of natural and supplemental artificial lighting at a maximum
threshold to be determined by the licensing authority, between 10,001
and 22,000 square feet, inclusive, of total canopy size on one
premises. The Department of Food and Agriculture shall limit the
number of licenses allowed of this type.
(10) Type 4, or "nursery," for cultivation of medical
cannabis marijuana solely as a nursery. Type 4
licensees may transport live plants. immature
plants, subject to the tracking, security, and related requirements
of Sections 19334 to 19338, inclusive.
SEC. 11. Section 19334 of the Business and Professions Code is
amended to read:
19334. (a) State licenses to be issued by the Department of
Consumer Affairs are as follows:
(1) (A) "Dispensary," as defined in this
chapter. This license shall allow for delivery pursuant to Section
19340.
(B) "Virtual Dispensary" for a license to permit the retail sale
of medical marijuana and medical marijuana products without the
requirement of operating a storefront. All virtual dispensaries shall
maintain a commercial facility at which all licensed activities are
performed under the license, with the exception of direct delivery to
a qualified patient or primary caregiver. Virtual dispensaries shall
be subject to all of the provisions of this chapter that relate to
dispensaries unless specifically excluded.
(2) "Distributor," for the distribution of medical
cannabis marijuana and medical cannabis
marijuana products from manufacturer to
dispensary. A Type 11 licensee shall hold a Type 12, or transporter,
license and register each location where product is stored for the
purposes of distribution. A Type 11 licensee shall not hold a license
in a cultivation, manufacturing, dispensing, or testing license
category and shall not own, or have an ownership interest in, a
facility licensed in those categories other than a security interest,
lien, or encumbrance on property that is used by a licensee. A Type
11 licensee shall be bonded and insured at a minimum level
established by the licensing authority.
(3) "Transport," for transporters of medical cannabis
marijuana or medical cannabis
marijuana products between licensees. A Type 12 licensee
shall be bonded and insured at a minimum level established by the
licensing authority.
(4) "Special dispensary status" for dispensers who have no more
than three licensed dispensary facilities. This license shall allow
for delivery where expressly authorized by local ordinance.
(b) The bureau shall establish minimum security requirements for
the commercial transportation and delivery of medical
cannabis marijuana and medical marijuana
products.
(c) A licensed dispensary shall implement sufficient security
measures to both deter and prevent unauthorized entrance into areas
containing medical cannabis marijuana
or medical cannabis marijuana products
and theft of medical cannabis marijuana
or medical cannabis marijuana products
at the dispensary. These security measures shall include, but not be
limited to, all of the following:
(1) Preventing individuals from remaining on the premises of the
dispensary if they are not engaging in activity expressly related to
the operations of the dispensary.
(2) Establishing limited access areas accessible only to
authorized dispensary personnel.
(3) Storing all finished medical cannabis
marijuana and medical cannabis
marijuana products in a secured and locked room, safe, or
vault, and in a manner as to prevent diversion, theft, and loss,
except for limited amounts of cannabis
marijuana used for display purposes, samples, or immediate
sale.
(4) Requiring all medical marijuana and medical marijuana products
used for display purposes, samples, or immediate sale to be stored
out of reach of any individual who is not employed by the dispensary.
(d) A dispensary shall notify the licensing authority and the
appropriate law enforcement authorities within 24 hours after
discovering any of the following:
(1) Significant discrepancies identified during inventory. The
level of significance shall be determined by the bureau.
(2) Diversion, theft, loss, or any criminal activity involving the
dispensary or any agent or employee of the dispensary.
(3) The loss or unauthorized alteration of records related to
cannabis, marijuana, registered
qualifying patients, primary caregivers, or dispensary employees or
agents.
(4) Any other breach of security.
SEC. 12. Section 19340 of the Business and Professions Code is
amended to read:
19340. (a) Deliveries, as defined in this chapter, can only be
made by a dispensary and in a city, county, or city and county that
does not explicitly prohibit it by local ordinance.
(b) Upon approval of the licensing authority, a licensed
dispensary that delivers medical cannabis
marijuana or medical cannabis marijuana
products shall comply with both of the following:
(1) The city, county, or city and county in which the licensed
dispensary is located, and in which each delivery is made, do not
explicitly by ordinance prohibit delivery, as defined in
Section 19300.5. delivery.
(2) All employees of a dispensary delivering medical
cannabis marijuana or medical cannabis
marijuana products shall carry a copy of the
dispensary's current license authorizing those services with them
during deliveries and the employee's government-issued
identification, and shall present that license and identification
upon request to state and local law enforcement, employees of
regulatory authorities, and other state and local agencies enforcing
this chapter.
(c) A county shall have the authority to impose a tax, pursuant to
Article 11 (commencing with Section 19348), on each delivery
transaction completed by a licensee.
(d) During delivery, the licensee shall maintain a physical copy
of the delivery request and shall make it available upon request of
the licensing authority and law enforcement officers. The delivery
request documentation shall comply with state and federal law
regarding the protection of confidential medical information.
(e) The qualified patient or primary caregiver requesting the
delivery shall maintain a copy of the delivery request and shall make
it available, upon request, to the licensing authority and law
enforcement officers.
(f) A local jurisdiction shall not prevent carriage of medical
cannabis marijuana or medical
cannabis marijuana products on public roads by a
licensee acting in compliance with this chapter.
(g) The bureau shall establish the following regulations regarding
the delivery of medical marijuana and medical marijuana products:
(1) Employee training standards that ensure qualified patients and
primary caregivers have adequate information regarding the medical
marijuana or medical marijuana products that a dispensary delivers,
and to provide employees with information regarding state and federal
laws and regulations.
(2) Protocols to provide qualified patients and primary caregivers
with information regarding laws, regulations, and policies relevant
to providing medical marijuana or medical marijuana products to
qualified patients and primary caregivers in the local jurisdiction
in which the dispensary is located and the area in which the medical
marijuana or medical marijuana products are being delivered.
(3) A system for registering and maintaining the status of all
delivery personnel of dispensaries, including protocols for
suspending the registrations of individuals who move out of this
state, who discontinue employment at a dispensary, or who are under
suspension or inspection by a dispensary or local or state law
enforcement. This system shall be made available to local and state
law enforcement, qualified patients, primary caregivers, and any
other entity deemed appropriate by the bureau. Any fees associated
with registration of delivery personnel shall be set by the bureau
and shall not exceed the reasonable amount necessary to cover the
costs to regulate the delivery personnel and maintain the system.
(4) The operating hours for delivery.
(5) A requirement that each dispensary employee who delivers
medical marijuana or medical marijuana products contract with only
one dispensary at time.
(6) Minimum requirements for patient information that is stored by
each delivery operation, including, but not limited to, the contact
information for the patient and, if applicable, his or her primary
caregiver, the physician's recommendation, and the condition for
which the medical marijuana or medical marijuana product is being
recommended. All identifying information obtained about a qualified
patient or primary caregiver shall be obtained and stored in
compliance with the privacy and security rules of the Health
Insurance Portability and Accountability Act (HIPAA).
(h) The bureau shall establish requirements for all dispensary
employees who deliver medical marijuana or medical marijuana
products, including, but not limited to, the following:
(1) Possession of a valid driver's license issued by the
Department of Motor Vehicles.
(2) Provide the bureau with a current address.
(3) Provide the bureau with necessary automobile and insurance
information.
(4) Registration with the bureau.
SEC. 13. Section 19342 of the Business and Professions Code is
amended to read:
19342. (a) For the purposes of testing medical cannabis
marijuana or medical cannabis
marijuana products, licensees shall use a licensed
testing laboratory that has adopted a standard operating procedure
using methods consistent with general requirements for the competence
of testing and calibration activities, including sampling, using
standard methods established by the International Organization for
Standardization, specifically ISO/IEC 17020 and ISO/IEC 17025 to test
medical cannabis marijuana and medical
cannabis marijuana products that are
approved by an accrediting body that is a signatory to the
International Laboratory Accreditation Cooperation Mutual Recognition
Arrangement.
(b) An agent of a licensed testing laboratory shall obtain samples
according to a statistically valid sampling method for each lot.
(c) A licensed testing laboratory shall analyze samples according
to either of the following:
(1) The most current version of the cannabis inflorescence
monograph published by the American Herbal Pharmacopoeia.
(2) Scientifically valid methodology that is demonstrably equal or
superior to paragraph (1), in the opinion of the accrediting body.
(1) In the final form which the patient will consume the medical
marijuana or medical marijuana product, including moisture content
and other attributes.
(2) A scientifically valid methodology approved by the accrediting
body.
(d) If a test result falls outside the specifications authorized
by law or regulation, the licensed testing laboratory shall follow a
standard operating procedure to confirm or refute the original
result.
(e) A licensed testing laboratory shall destroy the remains of the
sample of medical cannabis marijuana
or medical cannabis marijuana product
upon completion of the analysis.
SEC. 14. Section 19344 of the Business and Professions Code is
amended to read:
19344. (a) A licensed testing laboratory shall issue a
certificate of analysis for each lot, with supporting data, to report
both of the following:
(1) Whether the chemical profile of the lot conforms to the
specifications of the lot for compounds, including, but not limited
to, all of the following:
(A) Tetrahydrocannabinol (THC).
(B) Tetrahydrocannabinolic Acid (THCA).
(C) Cannabidiol (CBD).
(D) Cannabidiolic Acid (CBDA).
(E) The terpenes described in the most current version of the
cannabis inflorescence monograph published by the American Herbal
Pharmacopoeia.
(F) Cannabigerol (CBG).
(G) Cannabinol (CBN).
(H) Any other compounds required by the State Department of Public
Health.
(2) That the presence of contaminants does not exceed the levels
that are the lesser of either the most current version of the
American Herbal Pharmacopoeia monograph or the State Department of
Public Health. For purposes of this paragraph, contaminants includes,
but is not limited to, all of the following:
(A) Residual solvent or processing chemicals.
(B) Foreign material, including, but not limited to, hair,
insects, or similar or related adulterant.
(C) Microbiological impurity, including total aerobic microbial
count, total yeast mold count, P. aeruginosa, aspergillus spp., s.
aureus, aflatoxin B1, B2, G1, or G2, or ochratoxin A.
(D) Whether the batch is within specification for odor and
appearance.
(b) Residual levels of volatile organic compounds shall be below
the lesser of either the specifications set by the United
States Pharmacopeia (U.S.P. Chapter 467) or those set by
the State Department of Public Health.
SEC. 15. Section 19350 of the Business and Professions Code is
amended to read:
19350. Each licensing authority shall establish a scale of
application, licensing, and renewal fees, based upon the cost of
enforcing this chapter, as follows:
(a) Each licensing authority shall charge each licensee a
licensure and renewal fee, as applicable. The licensure and renewal
fee shall be calculated to cover the costs of administering this
chapter. 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, including, but not limited to, the track and
trace program required pursuant to Section 19335, but shall not
exceed the reasonable regulatory costs to the licensing authority.
(b) The total fees assessed pursuant to this chapter shall be set
at an amount that will fairly and proportionately generate sufficient
total revenue to fully cover the total costs of administering this
chapter.
(c) All state license fees shall be set on a scaled
basis by the licensing authority, dependent on the size of the
business.
(d) The licensing authority shall deposit all fees collected
pursuant to this chapter in a fee account specific to that
licensing authority, to be established in the Medical Marijuana
Regulation and Safety Act Fund. Moneys in the licensing authority fee
accounts shall be used, upon appropriation of the Legislature, by
the designated licensing authority for the administration of this
chapter.
(e) The fees established by licensing authorities pursuant to this
chapter shall be in addition to, and shall not limit, any fees or
taxes imposed by a city, county, or city and county in which the
licensee operates.
SEC. 16. Section 12025 of the Fish and Game Code is amended to
read:
12025. (a) In addition to any penalties imposed by any other law,
a person found to have violated the code sections described in
paragraphs (1) to (11), inclusive, in connection with the production
or cultivation of a controlled substance on land under the management
of the Department of Parks and Recreation, the Department of Fish
and Wildlife, the Department of Forestry and Fire Protection, the
State Lands Commission, a regional park district, the United States
Forest Service, or the United States Bureau of Land Management, or
within the respective ownership of a timberland production zone, as
defined in Chapter 6.7 (commencing with Section 51100) of Part 1 of
Division 1 of Title 5 of the Government Code, of more than 50,000
acres, or while trespassing on other public or private land in
connection with the production or cultivation of a controlled
substance, shall be liable for a civil penalty as follows:
(1) A person who violates Section 1602 in connection with the
production or cultivation of a controlled substance is subject to a
civil penalty of not more than ten thousand dollars ($10,000) for
each violation.
(2)
A person who violates Section 5650 in connection with the production
or cultivation of a controlled substance is subject to a civil
penalty of not more than forty thousand dollars ($40,000) for each
violation.
(3) A person who violates Section 5652 in connection with the
production or cultivation of a controlled substance is subject to a
civil penalty of not more than forty thousand dollars ($40,000) for
each violation.
(4) A person who violates subdivision (a) of Section 374.3 of the
Penal Code in connection with the production or cultivation of a
controlled substance is subject to a civil penalty of not more than
forty thousand dollars ($40,000) for each violation.
(5) A person who violates paragraph (1) of subdivision (h) of
Section 374.3 of the Penal Code in connection with the production or
cultivation of a controlled substance is subject to a civil penalty
of not more than forty thousand dollars ($40,000) for each violation.
(6) A person who violates subdivision (b) of Section 374.8 of the
Penal Code in connection with the production or cultivation of a
controlled substance is subject to a civil penalty of not more than
forty thousand dollars ($40,000) for each violation.
(7) A person who violates Section 384a of the Penal Code in
connection with the production or cultivation of a controlled
substance is subject to a civil penalty of not more than ten thousand
dollars ($10,000) for each violation.
(8) A person who violates subdivision (a) of Section 4571 of the
Public Resources Code in connection with the production or
cultivation of a controlled substance is subject to a civil penalty
of not more than ten thousand dollars ($10,000) for each violation.
(9) A person who violates Section 4581 of the Public Resources
Code in connection with the production or cultivation of a controlled
substance is subject to a civil penalty of not more than ten
thousand dollars ($10,000) for each violation.
(10) A person who violates Section 2000 in connection with the
production or cultivation of a controlled substance is subject to a
civil penalty of not more than ten thousand dollars ($10,000) for
each violation.
(11) A person who violates Section 2002 in connection with the
production or cultivation of a controlled substance is subject to a
civil penalty of not more than ten thousand dollars ($10,000) for
each violation.
(b) (1) In addition to any penalties imposed by any other law, a
person found to have violated the code sections described in this
subdivision in connection with the production or cultivation of a
controlled substance on land that the person owns, leases, or
otherwise uses or occupies with the consent of the landowner shall be
liable for a civil penalty as follows:
(A) A person who violates Section 1602 in connection with the
production or cultivation of a controlled substance is subject to a
civil penalty of not more than eight thousand dollars ($8,000) for
each violation.
(B) A person who violates Section 5650 in connection with the
production or cultivation of a controlled substance is subject to a
civil penalty of not more than twenty thousand dollars ($20,000) for
each violation.
(C) A person who violates Section 5652 in connection with the
production or cultivation of a controlled substance is subject to a
civil penalty of not more than twenty thousand dollars ($20,000) for
each violation.
(D) A person who violates subdivision (a) of Section 374.3 of the
Penal Code in connection with the production or cultivation of a
controlled substance is subject to a civil penalty of not more than
twenty thousand dollars ($20,000) for each violation.
(E) A person who violates paragraph (1) of subdivision (h) of
Section 374.3 of the Penal Code in connection with the production or
cultivation of a controlled substance is subject to a civil penalty
of not more than twenty thousand dollars ($20,000) for each
violation.
(F) A person who violates subdivision (b) of Section 374.8 of the
Penal Code in connection with the production or cultivation of a
controlled substance is subject to a civil penalty of not more than
twenty thousand dollars ($20,000) for each violation.
(G) A person who violates Section 384a of the Penal Code in
connection with the production or cultivation of a controlled
substance is subject to a civil penalty of not more than ten thousand
dollars ($10,000) for each violation.
(H) A person who violates subdivision (a) of Section 4571 of the
Public Resources Code in connection with the production or
cultivation of a controlled substance is subject to a civil penalty
of not more than eight thousand dollars ($8,000) for each violation.
(I) A person who violates Section 4581 of the Public Resources
Code in connection with the production or cultivation of a controlled
substance is subject to a civil penalty of not more than eight
thousand dollars ($8,000) for each violation.
(J) A person who violates Section 2000 in connection with the
production or cultivation of a controlled substance is subject to a
civil penalty of not more than eight thousand dollars ($8,000) for
each violation.
(K) A person who violates Section 2002 in connection with the
production or cultivation of a controlled substance is subject to a
civil penalty of not more than eight thousand dollars ($8,000) for
each violation.
(2) Each day that a violation of a code section described in this
subdivision occurs or continues to occur shall constitute a separate
violation.
(c) The civil penalty imposed for each separate violation pursuant
to this section is in addition to any other civil penalty imposed
for another violation of this section, or any violation of any other
law.
(d) All civil penalties imposed or collected by a court for a
separate violation pursuant to this section shall not be considered
to be fines or forfeitures, as described in Section 13003, and shall
be apportioned in the following manner:
(1) Thirty percent shall be distributed to the county in which the
violation was committed pursuant to Section 13003. The county board
of supervisors shall first use any revenues from those penalties to
reimburse the costs incurred by the district attorney or city
attorney in investigating and prosecuting the violation.
(2) (A) Thirty percent shall be distributed to the investigating
agency to be used to reimburse the cost of any investigation directly
related to the violations described in this section.
(B) If the department receives reimbursement pursuant to this
paragraph for activities funded pursuant to subdivision (f) of
Section 4629.6 of the Public Resources Code, the reimbursement funds
shall be deposited into the Timber Regulation and Forest Restoration
Fund, created by Section 4629.3 of the Public Resources Code, if
there is an unpaid balance for a loan authorized by subdivision (f)
of Section 4629.6 of the Public Resources Code.
(3) Forty percent shall be deposited into the Timber Regulation
and Forest Restoration Fund, created by Section 4629.3 of the Public
Resources Code, and used for grants authorized pursuant to Section
4629.6 of the Public Resources Code that improve forest health by
remediating former marijuana growing operations.
(e) Civil penalties authorized pursuant to this section may be
imposed administratively by the department if all of the following
occur:
(1) The chief deputy director or law enforcement division
assistant chief in charge of marijuana-related enforcement issues a
complaint to any person or entity on which an administrative civil
penalty may be imposed pursuant to this section. The complaint shall
allege the act or failure to act that constitutes a violation, any
facts related to natural resources impacts, the provision of law
authorizing the civil penalty to be imposed, and the proposed penalty
amount.
(2) The complaint and order is served by personal notice or
certified mail and informs the party served that the party may
request a hearing not later than 20 days from the date of service. If
a hearing is requested, it shall be scheduled before the director or
his or her designee, which designee shall not be the chief deputy or
assistant chief issuing the complaint and order. A request for a
hearing shall contain a brief statement of the material facts the
party claims support his or her contention that no administrative
penalty should be imposed or that an administrative penalty of a
lesser amount is warranted. A party served with a complaint pursuant
to this subdivision waives his or her right to a hearing if a hearing
is not requested within 20 days of service of the complaint, in
which case the order imposing the administrative penalty shall become
final.
(3) The director, or his or her designee, shall control the nature
and order of hearing proceedings. Hearings shall be informal in
nature, and need not be conducted according to the technical rules
relating to evidence. The director or his or her designee shall issue
a final order within 45 days of the close of the hearing. A copy of
the final order shall be served by certified mail upon the party
served with the complaint.
(4) A party may obtain review of the final order by filing a
petition for a writ of mandate with the superior court within 30 days
of the date of service of the final order. The administrative
penalty shall be due and payable to the department within 60 days
after the time to seek judicial review has expired, or, where the
party did not request a hearing of the order, within 20 days after
the order imposing an administrative penalty becomes final.
(5) The department may adopt regulations to implement this
subdivision.
(f) All administrative penalties imposed or collected by the
department for a separate violation pursuant to this section shall
not be considered to be fines or forfeitures, as described in Section
13003, and shall be deposited into the Timber Regulation and Forest
Restoration Fund, created by Section 4629.3 of the Public Resources
Code, to repay any unpaid balance of a loan authorized by subdivision
(f) of Section 4629.6 of the Public Resources Code. Any remaining
funds from administrative penalties collected pursuant to this
section shall be apportioned in the following manner:
(1) Fifty percent shall be deposited into the Timber Regulation
and Forest Restoration Fund for grants authorized pursuant to
subdivision (h) of Section 4629.6 of the Public Resources Code, with
priority given to grants that improve forest health by remediating
former marijuana growing operations.
(2) Fifty percent shall be deposited into the Fish and Game
Preservation Fund.
(g) Any civil penalty imposed pursuant to this section for the
violation of an offense described in paragraph (4), (5), or (6) of
subdivision (a) or subparagraph (D), (E), or (F) of paragraph (1) of
subdivision (b) for which the person was convicted shall be offset by
the amount of any restitution ordered by a criminal court.
(h) For purposes of this section, "controlled substance" has the
same meaning as defined in Section 11007 of the Health and Safety
Code.
(i) This section does not apply to any activity in compliance with
the Medical Marijuana Regulation and Safety Act (Chapter 3.5
(commencing with Section 19300) of Division 8 of the Business and
Professions Code).
SEC. 17. Section 12029 of the Fish and Game Code is amended to
read:
12029. (a) The Legislature finds and declares all of the
following:
(1) The environmental impacts associated with marijuana
cultivation have increased, and unlawful water diversions for
marijuana irrigation have a detrimental effect on fish and wildlife
and their habitat, which are held in trust by the state for the
benefit of the people of the state.
(2) The remediation of existing marijuana cultivation sites is
often complex and the permitting of these sites requires greater
department staff time and personnel expenditures. The potential for
marijuana cultivation sites to significantly impact the state's fish
and wildlife resources requires immediate action on the part of the
department's lake and streambed alteration permitting staff.
(b) In order to address unlawful water diversions and other
violations of the Fish and Game Code associated with marijuana
cultivation, the department shall establish the watershed enforcement
program to facilitate the investigation, enforcement, and
prosecution of these offenses.
(c) The department, in coordination with the State Water Resources
Control Board, shall establish a permanent multiagency task force to
address the environmental impacts of marijuana cultivation. The
multiagency task force, to the extent feasible and subject to
available Resources, shall expand its enforcement efforts on a
statewide level to ensure the reduction of adverse impacts of
marijuana cultivation on fish and wildlife and their habitats
throughout the state.
(d) In order to facilitate the remediation and permitting of
marijuana cultivation sites, the department shall adopt regulations
to enhance the fees on any entity
medical-cannabis-cultivation- related activities
subject to Section 1602 for marijuana cultivation sites that require
remediation. The fee schedule established pursuant to this
subdivision shall not exceed the fee limits in Section 1609.
SEC. 18. Section 11352 of the Health and Safety Code is amended to
read:
11352. (a) Except as otherwise provided in this division, every
person who transports, imports into this state, sells, furnishes,
administers, or gives away, or offers to transport, import into this
state, sell, furnish, administer, or give away, or attempts to import
into this state or transport (1) any controlled substance specified
in subdivision (b), (c), or (e), or paragraph (1) of subdivision (f)
of Section 11054, specified in paragraph (14), (15), or (20) of
subdivision (d) of Section 11054, or specified in subdivision (b) or
(c) of Section 11055, or specified in subdivision (h) of Section
11056, or (2) any controlled substance classified in Schedule III,
IV, or V which is a narcotic drug, unless upon the written
prescription of a physician, dentist, podiatrist, or veterinarian
licensed to practice in this state, shall be punished by imprisonment
pursuant to subdivision (h) of Section 1170 of the Penal Code for
three, four, or five years.
(b) Notwithstanding the penalty provisions of subdivision (a), any
person who transports any a controlled
substances specified in subdivision (a) within this state from one
county to another noncontiguous county shall be punished by
imprisonment pursuant to subdivision (h) of Section 1170 of the Penal
Code for three, six, or nine years.
(c) For purposes of this section, "transports" means to transport
for sale.
(d) This section does not preclude or limit the prosecution of an
individual for aiding and abetting the commission of, or conspiring
to commit, or acting as an accessory to, any act prohibited by this
section.
(e) This section does not apply to commercial marijuana activity
engaged in by a person or entity licensed pursuant to the Medical
Marijuana Regulation and Safety Act (Chapter 3.5 (commencing with
Section 19300) of Division 8 of the Business and Professions Code).
SEC. 19. Section 11362.765 of the Health and Safety Code is
amended to read:
11362.765. (a) Subject to the requirements of this article, the
individuals specified in subdivision (b) shall not be subject, on
that sole basis, to criminal liability under Section 11357, 11358,
11359, 11360, 11366, 11366.5, or 11570. However, nothing in this
section shall authorize the individual to smoke or otherwise consume
marijuana unless otherwise authorized by this article, nor shall
anything in this section authorize any individual or group to
cultivate or distribute marijuana for profit.
in any manner other than as set forth in the Medical Marijuana
Regulation and Safety Act (Chapter 3.5 (commencing with Section
19300) of Division 8 of the Business and Professions Code)
or as described in the Compassionate Use Act of 1996.
(b) Subdivision (a) shall apply to all of the following:
(1) A qualified patient or a person with an identification card
who transports or processes marijuana for his or her own personal
medical use.
(2) A designated primary caregiver who transports, processes,
administers, delivers, or gives away marijuana for medical purposes,
in amounts not exceeding those established in subdivision (a) of
Section 11362.77, only to the qualified patient of the primary
caregiver, or to the person with an identification card who has
designated the individual as a primary caregiver.
(3) Any individual who provides assistance to a qualified patient
or a person with an identification card, or his or her designated
primary caregiver, in administering medical marijuana to the
qualified patient or person or acquiring the skills necessary to
cultivate or administer marijuana for medical purposes to the
qualified patient or person.
(c) A primary caregiver who receives compensation for actual
expenses, including reasonable compensation incurred for services
provided to an eligible qualified patient or person with an
identification card to enable that person to use marijuana under this
article, or for payment for out-of-pocket expenses incurred in
providing those services, or both, shall not, on the sole basis of
that fact, be subject to prosecution or punishment under Section
11359 or 11360.
SEC. 20. Section 11362.775 of the Health and Safety Code is
amended to read:
11362.775. (a) Subject to subdivision (b), 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 cannabis
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.
A collective or cooperative that operates pursuant to this
section may operate for profit, not for profit, or any
combination thereof.
(b) This section shall remain in effect only until one year after
the Bureau of Medical Marijuana Regulation posts a notice on its
Internet Web site that the licensing authorities have commenced
issuing licenses pursuant to the Medical Marijuana Regulation and
Safety Act (Chapter 3.5 (commencing with Section 19300) of Division 8
of the Business and Professions Code), and is repealed upon
issuance of licenses. that date.
SEC. 21. Section 11379 of the Health and Safety Code is amended to
read:
11379. (a) Except as otherwise provided in subdivision (b) and in
Article 7 (commencing with Section 4211)
4110) of Chapter 9 of Division 2 of the Business and
Professions Code, every person who transports, imports into this
state, sells, furnishes, administers, or gives away, or offers to
transport, import into this state, sell, furnish, administer, or give
away, or attempts to import into this state or transport any
controlled substance which is (1) classified in Schedule III, IV, or
V and which is not a narcotic drug, except subdivision (g) of Section
11056, (2) specified in subdivision (d) of Section 11054, except
paragraphs (13), (14), (15), (20), (21), (22), and (23) of
subdivision (d), (3) specified in paragraph (11) of subdivision (c)
of Section 11056, (4) specified in paragraph (2) or (3) of
subdivision (f) of Section 11054, or (5) specified in subdivision (d)
or (e), except paragraph (3) of subdivision (e), or specified in
subparagraph (A) of paragraph (1) of subdivision (f), of Section
11055, unless upon the prescription of a physician, dentist,
podiatrist, or veterinarian, licensed to practice in this state,
shall be punished by imprisonment pursuant to subdivision (h) of
Section 1170 of the Penal Code for a period of two, three, or four
years.
(b) Notwithstanding the penalty provisions of subdivision (a), any
person who transports any controlled substances specified in
subdivision (a) within this state from one county to another
noncontiguous county shall be punished by imprisonment pursuant to
subdivision (h) of Section 1170 of the Penal Code for three, six, or
nine years.
(c) For purposes of this section, "transports" means to transport
for sale.
(d) Nothing in this section is intended to preclude or limit
prosecution under an aiding and abetting theory, accessory theory, or
a conspiracy theory.
(e) This section does not apply to commercial marijuana activity
engaged in by a person or entity licensed pursuant to the Medical
Marijuana Regulation and Safety Act (Chapter 3.5 (commencing with
Section 19300) of Division 8 of the Business and Professions Code).