BILL NUMBER: AB 1575 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 18, 2016
INTRODUCED BY Assembly Members Bonta, Cooley, Jones-Sawyer, Lackey,
and Wood
JANUARY 4, 2016
An act to amend Sections 19300, 19300.5, 19302,
19302.1, 19306, 19310, 19316, 19321, 19322, 19326,
19332, 19332.5, 19334, 19335, 19340, 19342,
19344, and 19350 19347, 19350, 19351, and
19360 of, to amend the heading of Article 5 (commencing
with Section 19326) of Chapter 3.5 of Division 8 of, to
amend the heading of Chapter 3.5 (commencing with Section 19300) of
Division 8 of, to amend and add Section 19328 of, and
to add Sections 19310.5, 19319.5, and 19322.5 to, and
to repeal Section 19318 of, 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, 11362.777, and
11379 of the Health and Safety Code, relating to medical
marijuana. cannabis.
LEGISLATIVE COUNSEL'S DIGEST
AB 1575, as amended, Bonta. Medical marijuana.
cannabis.
(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 rename the act as the Medical Cannabis
Regulation and Safety Act. The bill would also require the
Board of Equalization to form an advisory group made up of
representatives from financial institutions, the medical
marijuana cannabis industry, and state and
federal banking regulators to examine strategies, such as
the use of automated kiosks for accepting cash payments,
strategies such as integrated point-of-sale
systems with state track and trace systems,
systems and other measures that will improve financial
monitoring of medical marijuana cannabis
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 cannabis businesses and
compliance with federal law. The bill would require the
Department of Business Oversight to create an enhanced financial
monitoring certification for entities licensed under the act that
further enables them to comply with federal banking regulations and
would authorize the Department of Business Oversight to
charge a fee for this certification, as specified.
(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) Existing law requires a cultivator or manufacturer to
send all medical marijuana and medical marijuana products cultivated
and manufactured to a distributor for quality assurance and
inspection. 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 exempt a cultivator from the requirement of
sending medical cannabis to a distributor for quality assurance and
inspection if the medical cannabis is to be used, sold, or otherwise
provided to a manufacturer for further manufacturing. The
bill also would require the Bureau of Medical
Marijuana Cannabis Regulation to specify the
manner in which medical marijuana cannabis
and medical marijuana cannabis
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 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,
bureau, 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
delivery 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 cannabis and medical
marijuana cannabis 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
bureau to establish specified regulations regarding
delivery of medical marijuana cannabis
and medical marijuana cannabis products
by a dispensary and specified requirements for all dispensary
employees who deliver medical marijuana
cannabis or medical marijuana cannabis
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)
(8) 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 would, instead,
require a licensed testing laboratory to analyze samples in the
final form in which the patient will consume the medical
marijuana cannabis or medical marijuana
cannabis product using a scientifically valid
methodology approved by the accrediting body.
(10)
(9) 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 that has state
authorization to engage in the research of medical
marijuana, cannabis, medical marijuana
cannabis products, or devices used for the
medical use of marijuana cannabis or
marijuana cannabis products, to
possess, transport, purchase, or otherwise obtain small amounts of
medical marijuana cannabis or medical
marijuana cannabis products to conduct
research and development related to medical marijuana
cannabis or medical marijuana
cannabis products. The bill would require the
Bureau of Medical Marijuana Regulation bureau to
issue a medical marijuana research permit.
promulgate regulations to establish minimum qualifications for state
authorization to conduct research on medical cannabis and medical
cannabis products and all related protocols, as specified.
(11)
(10) 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 full
compliance with the Medical Marijuana
Cannabis Regulation and Safety Act are not subject to the
above-described civil penalties.
(12)
(11) 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 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)
(12) 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 cannabis in any manner other than set
forth in the Medical Marijuana Cannabis
Regulation and Safety Act or in the Compassionate Use Act of
1996.
(14)
(13) 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 cannabis activity by a holder
of a state license under who is in full
compliance with the Medical Marijuana
Cannabis Regulation and Safety Act.
Act and all applicable local ordinances.
(15)
(14) This bill would also make technical,
nonsubstantive changes to the provisions of the act.
act, including changing the term marijuana to cannabis
throughout.
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. The heading of Chapter 3.5 (commencing
with Section 19300) of Division 8 of the Business and
Professions Code is amended to read:
CHAPTER 3.5. MEDICAL MARIJUANA
CANNABIS REGULATION AND SAFETY ACT ACT
SEC. 2. Section 19300 of the Business
and Professions Code is amended to read:
19300. This act shall be known and may be cited as the Medical
Marijuana Cannabis Regulation and
Safety Act.
SECTION 1. SEC. 3. 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.
(B) An "owner" means any a person
having an aggregate ownership interest, other than a security
interest, lien, or encumbrance, of 5 percent or more in the licensee
and or who has the power to direct, or
cause to be directed, the management or control of the licensee.
(2) If the applicant is a publicly traded company, "owner" means
the chief executive officer, any a
member of the board of directors, or any a
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
marijuana cannabis or medical marijuana
products cannabis product 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
Cannabis 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
that is incapable of germination. For the
purpose purposes 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 marijuana cannabis that
has undergone a process to concentrate the cannabinoid active
ingredient, thereby increasing the product's potency. An edible
medical marijuana cannabis 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 Cannabis Regulation within the
Department of Consumer Affairs.
(k) "Commercial marijuana cannabis
activity" or "commercial marijuana activity "
includes cultivation, possession, manufacture, processing, storing,
laboratory testing, labeling, transporting, distribution, or sale of
medical marijuana cannabis or a medical
marijuana cannabis 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
marijuana. cannabis.
(m) "Cultivation site" means a facility where medical cannabis is
planted, grown, harvested, dried, cured, graded, or trimmed, or that
does all or any combination of those activities, that is owned and
operated by a person who holds a valid state license and a valid
local license, permit, or other authorization.
(n) "Cultivator" means a person that conducts the planting,
growing, harvesting, drying, curing, grading, or trimming of medical
cannabis and that holds both a valid state license and a valid local
license, permit, or other authorization.
(m)
(o) "Delivery" means the commercial transfer of medical
marijuana cannabis or medical
marijuana cannabis products from a dispensary,
up to an amount determined by the bureau
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
marijuana cannabis or medical marijuana
cannabis products.
(n)
(p) "Dispensary" means a commercial facility
with a fixed location, whether or not there is direct access by
customers, where medical marijuana, medical marijuana
products, or devices for the use of medical marijuana or medical
marijuana products cannabis or medical cannabis
products are offered, either individually or in any
combination, for retail sale, including an establishment that
delivers, pursuant to express authorization
unless expressly prohibite d by local ordinance,
medical marijuana cannabis and medical
marijuana cannabis products as part of
a retail sale. "Dispensary" includes a virtual dispensary
for purposes of regulation.
(o)
(q) "Dispensing" means any activity involving the
retail sale of medical marijuana cannabis
or medical marijuana cannabis
products from a dispensary.
(p)
(r) "Distribution" means the procurement, sale, and
transport of medical marijuana cannabis
and medical marijuana cannabis
products between entities licensed pursuant to this chapter.
(q)
(s) "Distributor" means a person licensed
under this chapter to engage engaged in the
business of purchasing medical marijuana
cannabis from a licensed cultivator, or medical
marijuana cannabis products from a licensed
manufacturer, for sale to a licensed dispensary.
dispensary and who holds a valid state license pursuant to this
chapter and a valid local license, permit, or other authorization.
(r)
(t) "Dried flower" means all dead medical
marijuana cannabis that has been harvested,
dried, cured, or otherwise processed, excluding leaves and stems.
(s)
(u) "Edible marijuana cannabis
product" or "edible marijuana product "
means manufactured marijuana cannabis
that is intended to be used, in whole or in part, for human
consumption, including, but not limited to, chewing gum. An edible
medical marijuana cannabis 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)
(v) "Fund" means the Medical Marijuana
Cannabis Regulation and Safety Act Fund
established pursuant to Section 19351.
(u)
(w) "Identification program" means the universal
identification certificate program for commercial medical
marijuana cannabis activity authorized by this
chapter.
(v)
(x) "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.
(y) "Licensee" means a person issued a state license under this
chapter to engage in commercial cannabis activity.
(w)
(z) "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. licensee.
(x) "Cultivation site" means a facility where medical 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.
(aa) "Live plants" means living medical cannabis flowers and
plants, including seeds, immature plants, and vegetative stage
plants.
(ab) "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 or a medical cannabis 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.
(ac) "Manufactured cannabis" or "manufactured marijuana" means raw
cannabis that has undergone a process whereby the raw agricultural
product has been transformed into a concentrate, an edible cannabis
product, or a topical product.
(y)
(ad) "Manufacturer" means a person that conducts the
production, preparation, propagation, or compounding of manufactured
medical marijuana, cannabis, as
described in subdivision (ae), (ac), or
medical marijuana cannabis 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 marijuana cannabis
or medical marijuana cannabis
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. license, permit, or other
authorization.
(z) "Testing laboratory" means a facility, entity, or site in the
state that offers or performs tests of medical marijuana or medical
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 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 marijuana or medical 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 marijuana activity.
(ac) "Live plants" means living medical 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 marijuana or a medical 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
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)
(ae) "Manufacturing site" means a location that
produces, prepares, propagates, or compounds manufactured medical
marijuana cannabis or medical
marijuana cannabis 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. person that holds a valid state license
pursuant to this chapter and a valid local license, permit, or other
authorization.
(ag)
(af) "Medical cannabis," "medical cannabis product,"
"cannabis product," "medical marijuana," "medical marijuana product,"
or "marijuana product" means a product containing
marijuana, cannabis, including, but not limited
to, concentrates and extractions, intended to be sold for use by
medical marijuana cannabis 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)
(ag) "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 marijuana. cannabis.
(ai)
(ah) "Permit," "local license," or "local permit" means
an official document granted by a local jurisdiction that
specifically authorizes a person to conduct commercial
marijuana cannabis activity in the local
jurisdiction.
(aj)
(ai) "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)
(aj) "State license," "license," or
"registration" license" or "license "
means a state license issued pursuant to this chapter.
(al)
(ak) "Topical cannabis" or "topical marijuana"
product " means a product
intended for external use. manufactured such that its
final stage is in the form of a topical drug, as defined by the
Center for Drug Evaluation and Research under the federal Food and
Drug Administration. A topical marijuana
product is not considered a drug as defined by Section 109925 of the
Health and Safety Code.
(al) "Testing laboratory" means a facility, entity, or site in the
state that offers or performs tests of medical cannabis or medical
cannabis 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 industry in the
state.
(2) Registered with the State Department of Public Health.
(am) "Transport" means the transfer of medical marijuana
cannabis or medical marijuana
cannabis products from the permitted business location of
one licensee to the permitted business location of another licensee,
for the purposes of conducting commercial marijuana
cannabis activity authorized pursuant to this
chapter.
(an) "Transporter" means a person issued a state license by the
bureau to transport medical cannabis or medical cannabis products in
an amount above a threshold determined by the bureau between
facilities that have been issued a state license pursuant to this
chapter.
SEC. 4. Sectio n 19302 of the
Business and Professions Code is amended to read:
19302. There is in the Department of Consumer Affairs the Bureau
of Medical Marijuana Cannabis
Regulation, under the supervision and control of the director. The
director shall administer and enforce the provisions of this chapter.
SEC. 5. Section 19302.1 of the Business
and Professions Code is amended to read:
19302.1. (a) The Governor shall appoint a chief of the bureau,
subject to confirmation by the Senate, at a salary to be fixed and
determined by the director Director of
Consumer Affairs with the approval of the Director of Finance.
The chief shall serve under the direction and supervision of the
director Director of Consumer Affairs
and at the pleasure of the Governor.
(b) Every power granted to or duty imposed upon the director under
this chapter may be exercised or performed in the name of the
director by a deputy or assistant director or by the chief, subject
to conditions and limitations that the director may prescribe. In
addition to every power granted or duty imposed with this chapter,
the director shall have all other powers and duties generally
applicable in relation to bureaus that are part of the Department of
Consumer Affairs.
(c) The director may employ and appoint all employees necessary to
properly administer the work of the bureau, in accordance with civil
service laws and regulations.
(d) The Department of Consumer Affairs shall have the sole
authority to create, issue, renew, discipline, suspend, or revoke
licenses for the transportation, storage unrelated to manufacturing
activities, distribution, and sale of medical marijuana
cannabis within the state and to collect fees in
connection with activities the bureau regulates. The bureau may
create licenses in addition to those identified in this chapter that
the bureau deems necessary to effectuate its duties under this
chapter.
(e) The Department of Food and Agriculture shall administer the
provisions of this chapter related to and associated with the
cultivation of medical cannabis. The Department of Food and
Agriculture shall have the authority to may
create, issue, and suspend or revoke cultivation licenses for
violations of this chapter. The
(f) The State Department of Public
Health shall administer the provisions of this chapter related to
and associated with the manufacturing and testing of medical
cannabis. The State Department of Public Health may create,
issue, and suspend or revoke manufacturing and testing licenses for a
violation of this chapter.
SEC. 6. Section 19306 of the Business
and Professions Code is amended to read:
19306. (a) The bureau may convene an advisory committee to advise
the bureau and licensing authorities on the development of standards
and regulations pursuant to this chapter, including best practices
and guidelines to ensure qualified patients have adequate access to
medical cannabis and medical cannabis products. The advisory
committee members shall be determined by the chief.
(b) The advisory committee members may include, but are
not be limited to, representatives of the medical
marijuana cannabis industry,
representatives of medical marijuana cannabis
cultivators, appropriate local and state agencies, appropriate
local and state law enforcement, physicians, environmental and
public health experts, and medical marijuana
cannabis patient advocates.
SEC. 7. Section 19310 of the Business
and Professions Code is amended to read:
19310. The department may licensing
authority may, on its own motion at any time before a penalty
assessment is placed into effect and without any further proceedings,
review the penalty, but such that
review shall be limited to its reduction.
SEC. 2. SEC. 8. 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
cannabis industry's ability to comply with federal law and
regulations that would allow improved access to financial
banking services.
(b) (1) The State Board of Equalization shall form an advisory
group made up of representatives from financial institutions, the
medical marijuana cannabis 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 cannabis 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 requirement 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, systems and other measures that will
improve financial monitoring of medical marijuana
cannabis businesses.
(d) (1) The Department of Business Oversight shall create an
enhanced financial monitoring certification for entities licensed
pursuant to this chapter that further enables those entities to
comply with the federal banking regulations under the federal Bank
Secrecy Act. The Department of Business Oversight shall consider
including requirements to use electronic financial monitoring that
enables real-time sales inventory tracking and other tools that allow
a bank or credit union to readily access information they are
required to monitor under the federal Bank Secrecy Act.
(2) The Department of Business Oversight may collect fees from
applicants requesting the enhanced financial monitoring certification
in an amount sufficient to fund the actual reasonable costs of
implementing subdivision (d).
SEC. 3. SEC. 9. Section 19316 of the
Business and Professions Code is amended to read:
19316. (a) (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 marijuana
cannabis activity. Any standards,
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. 10. Section 19318 of the Business
and Professions Code is repealed.
19318. (a) A person engaging in commercial cannabis activity
without a license required by this chapter shall be subject to civil
penalties of up to twice the amount of the license fee for each
violation, and the court may order the destruction of medical
cannabis associated with that violation in accordance with Section
11479 of the Health and Safety Code. Each day of operation shall
constitute a separate violation of this section. All civil penalties
imposed and collected pursuant to this section by a licensing
authority shall be deposited into the Medical Cannabis Fines and
Penalties Account established pursuant
to Section 19351.
(b) If an action for civil penalties is brought against a licensee
pursuant to this chapter by the Attorney General on behalf of the
people, the penalty collected shall be deposited into the Medical
Cannabis Fines and Penalties Account established pursuant to Section
19351. If the action is brought by a district attorney or county
counsel, the penalty collected shall be paid to the treasurer of the
county in which the judgment was entered. If the action is brought by
a city attorney or city prosecutor, the penalty collected shall be
paid to the treasurer of the city or city and county in which the
judgment was entered. If the action is brought by a city attorney and
is adjudicated in a superior court located in the unincorporated
area or another city in the same county, the penalty shall be paid
one-half to the treasurer of the city in which the complaining
attorney has jurisdiction and one-half to the treasurer of the county
in which the judgment is entered.
(c) Notwithstanding subdivision (a), criminal penalties shall
continue to apply to an unlicensed person engaging in commercial
cannabis activity in violation of this chapter, including, but not
limited to, those individuals covered under Section 11362.7 of the
Health and Safety Code.
SEC. 4. SEC. 11. Section 19319.5 is
added to the Business and Professions Code, to read:
19319.5. (a) (1) It shall not be is not
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, cannabis,
medical marijuana cannabis
products, or devices used for the medical use of marijuana
cannabis or marijuana
cannabis products, to possess, transport, purchase, or
otherwise obtain legally obtain, pursuant to
this chapter, small amounts of medical marijuana
cannabis or medical marijuana
cannabis 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
cannabis or medical marijuana products.
cannabis products in a city, county, or city and county that
expressly authorizes that activity by local ordinance.
(2) Medical marijuana cannabis or
medical marijuana cannabis products
subject to this section shall be obtained only from a person
or entity licensed pursuant to this chapter, licensee
who is permitted to provide or deliver the medical
marijuana cannabis or medical marijuana
cannabis product. The A
business or research institution shall only obtain
a medical marijuana research permit
cannabis or medical cannabis products for research
purposes pursuant to regulations established by the bureau
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 promulgate regulations to establish minimum
qualifications for state authorization to conduct research on medical
cannabis or medical cannabis products and all related protocols. The
regulations shall include, but not be limited to, the
following:
(1) The requirement for all medical marijuana
cannabis and medical marijuana
cannabis products used under a medical marijuana
research permit to for research purposes 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 pursuing state authorization
for research on medical cannabis or medical cannabis products
obtain permission to operate from the local jurisdiction in which the
applicant intends to conduct the research. A person shall not
conduct research on medical cannabis or medical cannabis products
without approval from both the state and the local jurisdiction in
which the research is being conducted.
(3) The maximum amount of medical marijuana
cannabis and medical marijuana
cannabis products that may be obtained per month for research
purposes. In no case shall a permitholder
person approved to conduct research on medical cannabis and medical
cannabis products obtain more than eight ounces per month for
research purposes.
SEC. 5. SEC. 12. 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. The
secretary or director of each licensing authority may prescribe,
adopt, and enforce emergency regulations necessary to implement this
chapter.
(b) Except as described in subdivision (e), a state
license issued pursuant to this section shall be valid for 12 months
from the date of issuance. The state license shall be
renewed annually. Each licensing authority shall establish procedures
for the renewal of a state 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 a facility or entity that can demonstrate to
the licensing 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
state 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. 13. Section 19322 of the Business
and Professions Code is amended to read:
19322. (a) A person or entity shall not submit an application for
a state license issued by the department pursuant
to this chapter unless that person or entity has received a license,
permit, or authorization by from a
local jurisdiction. An applicant for any type of state license issued
pursuant to this chapter shall do all of the following:
(1) Electronically submit to the Department of Justice fingerprint
images and related information required by the Department of Justice
for the purpose of obtaining information as to the existence and
content of a record of state or federal convictions and arrests, and
information as to the existence and content of a record of state or
federal convictions and arrests for which the Department of Justice
establishes that the person is free on bail or on his or her own
recognizance, pending trial or appeal.
(A) The Department of Justice shall provide a response to the
licensing authority pursuant to paragraph (1) of subdivision (p) of
Section 11105 of the Penal Code.
(B) The licensing authority shall request from the Department of
Justice subsequent notification service, as provided pursuant to
Section 11105.2 of the Penal Code, for applicants.
(C) The Department of Justice shall charge the applicant a fee
sufficient to cover the reasonable cost of processing the requests
described in this paragraph.
(2) Provide documentation issued by the local jurisdiction in
which the proposed business is operating certifying that the
applicant is or will be in compliance with all local ordinances and
regulations.
(3) Provide evidence of the legal right to occupy and use the
proposed location. For an applicant seeking a cultivator,
distributor, manufacturing, or dispensary license, provide a
statement from the owner of real property or their agent where the
cultivation, distribution, manufacturing, or dispensing commercial
medical cannabis activities will occur, as proof to demonstrate the
landowner has acknowledged and consented to permit cultivation,
distribution, manufacturing, or dispensary activities to be conducted
on the property by the tenant applicant.
(4) If the application is for a cultivator or a
dispensary, dispensar y license,
provide evidence that the proposed location is located beyond at
least a 600-foot radius from a school, as required by Section
11362.768 of the Health and Safety Code.
(5) Provide a statement, signed by the applicant under penalty of
perjury, that the information provided is complete, true, and
accurate.
(6) (A) For an applicant with 20 or more employees, provide a
statement that the applicant will enter into, or demonstrate that it
has already entered into, and abide by the terms of a labor peace
agreement.
(B) For the purposes of this paragraph, "employee" does not
include a supervisor.
(C) For purposes of this paragraph, "supervisor" means an
individual having authority, in the interest of the licensee, to
hire, transfer, suspend, lay off, recall, promote, discharge, assign,
reward, or discipline other employees, or responsibility to direct
them or to adjust their grievances, or effectively to recommend such
action, if, in connection with the foregoing, the exercise of that
authority is not of a merely routine or clerical nature, but requires
the use of independent judgment.
(7) Provide the applicant's valid seller's permit
number issued pursuant to Part 1 (commencing with Section 6001) of
Division 2 of the Revenue and Taxation Code or indicate that the
applicant is currently applying for a seller's permit.
(8) Provide any other information required by the licensing
authority.
(9) For an applicant seeking a cultivation license, provide a
statement declaring the applicant is an "agricultural employer," as
defined in the Alatorre-Zenovich-Dunlap-Berman Agricultural Labor
Relations Act of 1975 (Part 3.5 (commencing with Section 1140) of
Division 2 of the Labor Code), to the extent not prohibited by law.
(10) For an applicant seeking licensure as a testing laboratory,
register with the State Department of Public Health and provide any
information required by the State Department of Public Health.
(11) Pay all applicable fees required for licensure by the
licensing authority.
(b) For applicants seeking licensure to cultivate, distribute, or
manufacture medical cannabis, cannabis or
medical cannabis products, the application shall also include a
detailed description of the applicant's operating procedures for all
of the following, as required by the licensing authority:
(1) Cultivation.
(2) Extraction and infusion methods.
(3) The transportation process.
(4) Inventory procedures.
(5) Quality control procedures.
SEC. 6. SEC. 14. Section 19322.5 is
added to the Business and Professions Code, to read:
19322.5. A licencee licensee may
operate as a for-profit business, as a not-for-profit entity, or as a
combination of both.
SEC. 15. The heading of Article 5 (commencing with
Section 19326) of Chapter 3.5 of Division 8 of the
Business and Professions Code is amended to read:
Article 5. Medical Marijuana Cannabis
Regulation
SEC. 7. SEC. 16. 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 marijuana
cannabis or medical marijuana
cannabis products from one licensee to another licensee, unless
otherwise specified in this chapter.
(b) All licensees holding cultivation or manufacturing licenses
(b) (1) A
cultivator or a manufacturer shall send all
medical marijuana cannabis and medical
marijuana cannabis products cultivated
or manufactured to a distributor, as defined in Section 19300.5, for
quality assurance and inspection by the Type 11 licensee
distributor and for a batch testing by a
Type 8 licensee testing laboratory
prior to distribution to a dispensary.
dispensary, except as provided in paragraph (2). Those
licensees holding a Type 10A license in addition to a cultivation
license or a manufacturing license shall send all
medical marijuana cannabis and medical
marijuana cannabis products to a
Type 11 licensee distributor for
presale inspection and for a batch testing by a Type 8
licensee testing laboratory 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.
(2) A cultivator is not required to send medical cannabis to a
distributor if the medical cannabis is to be used, sold, or otherwise
distributed by methods approved pursuant to this chapter to a
manufacturer for further manufacturing.
(c) (1) Upon receipt of medical marijuana
cannabis or medical marijuana cannabis
products by from a
holder of a cultivation or manufacturing license, the Type 11
licensee cultivator or a manufacturer, the distributor
shall first inspect the product to ensure the
identity and quantity of the product and then ensure a random sample
of the medical marijuana or medical marijuana product is tested by a
Type 8 licensee prior to distributing the batch.
ensure a random sample of the medical cannabis or medical cannabis
product is tested by a testing laboratory .
(2) Upon issuance of a certificate of analysis by the
Type 8 licensee testing laboratory that the
product is fit for manufacturing or retail, all
the cultivator or manufacturer shall send medical
marijuana cannabis and medical
marijuana cannabis products from the
approved associated batch to the distributor. All medical cannabis
and medical cannabis products shall then undergo a
quality assurance review by the Type 11 licensee
distributor prior to distribution to ensure the
quantity identity, quality, and content of the
medical marijuana cannabis or medical
marijuana cannabis product, and for
tracking and taxation purposes by the state. Licensed
cultivators Cultivators and manufacturers shall
package or seal all medical marijuana
cannabis and medical marijuana cannabis
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
marijuana cannabis or medical marijuana
cannabis products. Medical marijuana
cannabis and medical marijuana
cannabis 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
marijuana cannabis or medical marijuana
cannabis products being transported or
delivered to a licensee, qualified patient, or caregiver, except as
otherwise specified in this chapter. The bureau shall specify the
manner in which medical marijuana cannabis
and medical marijuana cannabis
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 a
cultivator, manufacturer, or dispensary to directly enter into
contracts with one another indicating the price and quantity of
medical marijuana cannabis or medical
marijuana cannabis products to be
distributed. However, a Type 11 licensee
distributor 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,
testing laboratory, as well as applicable state
or local taxes and fees.
(d) Medical marijuana cannabis and
medical marijuana cannabis products
shall be tested by a registered testing
laboratory, prior to retail sale or dispensing, as follows:
(1) Medical marijuana cannabis from
dried flower shall, at a minimum, be tested for concentration,
pesticides, mold, and other contaminants.
(2) Medical marijuana cannabis
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 marijuana cannabis
activity shall be conducted between licensees, when
these are available. licensees.
(f) The bureau shall promulgate regulations relating to the
amounts of each batch of medical cannabis or medical cannabis product
that a cultivator or manufacturer is required to send to a
distributor for inspection and a testing laboratory for testing. The
regulations shall focus on reducing diversion, ensuring the quality
of the product for the health and safety of patients, and allowing
for efficiency in enforcement.
SEC. 8. SEC. 17. Section 19328 of
the Business and Professions Code is amended to read:
19328. (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. By
January 1, 2025, the bureau shall review the appropriateness of
continuing licensure under this paragraph and shall reports
report 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 marijuana
cannabis or medical marijuana
cannabis products, with all commercial marijuana
cannabis 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 marijuana cannabis or medical
marijuana cannabis 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. Equalization for tax purposes.
(2) A business licensed pursuant to paragraph (1) is not required
to conduct all cultivation or manufacturing within the bounds of a
single 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. SEC. 18. 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. SEC. 19. Section 19332 of
the Business and Professions Code Code
, as added by Section 1 of Chapter 688 of the Statutes of 2015,
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
marijuana. cannabis.
(c) The State Department of Public Health shall develop standards
for the production and labeling of all edible medical
marijuana cannabis 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
to implement 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 marijuana
cannabis are required to meet standards equivalent to
Division 5 (commencing with Section 12001).
(2) Require that marijuana medical
cannabis 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 marijuana
medical cannabis cultivation license, pursuant
to Article 8 (commencing with Section 19337). All marijuana
medical cannabis 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 marijuana cannabis 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
marijuana cannabis solely as a nursery. A
Type 4 licensees licensee may
transport live immature plants, subject to the tracking, security,
and related requirements of Sections 19334 to 19338,
inclusive. in accordance with Article 7 (commencing
with Section 19334), Article 7.5 (commencing with Section 19335), and
Article 8 (commencing with Section 19337).
SEC. 20. Section 19332 of the Business
and Professions Code , as added by Section 13 of Chapter
719 of the Statutes of 2015, 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.
(c) The State Department of Public Health shall develop standards
for the production and labeling of all edible medical cannabis
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
to implement 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 are required to
meet standards equivalent to Division 5 (commencing with Section
12001).
(2) Require that medical cannabis 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 medical
cannabis cultivation license, pursuant to Article 8 (commencing with
Section 19337). All medical cannabis 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 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
solely as a nursery. A Type 4 licensees
licensee may transport live plants.
immature plants, subject to the tracking, security, and related
requirements in accordance with Article 7 (commencing with Section
19334), Article 7.5 (commencing with Section 19335), and Article 8
(commencing with Section 19337).
SEC. 21. Section 19332.5 of the
Business and Professions Code is amended to read:
19332.5. (a) Not later than January 1, 2020, the Department of
Food and Agriculture in conjunction with the bureau, shall make
available a certified organic designation and organic certification
program for medical marijuana, cannabis,
if permitted under federal law and the National Organic Program
(Section 6517 of the federal Organic Foods Production Act of 1990 (7
U.S.C. Sec. 6501 et seq.)), and Article 7 (commencing with Section
110810) of Chapter 5 of Part 5 of Division 104 of the Health and
Safety Code.
(b) The bureau may establish appellations of origin for
marijuana medical cannabis grown in California.
(c) It is unlawful for medical marijuana
cannabis to be marketed, labeled, or sold as grown in a
California county when the medical marijuana
cannabis was not grown in that county.
(d) It is unlawful to use the name of a California county in the
labeling, marketing, or packaging of medical marijuana
cannabis products unless the product was grown
in that county.
SEC. 11. SEC. 22. 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.
(B) A dispensary may be one of the following:
(i) "Storefront dispensary" for licensees who have a dispensary
with direct physical access for the public.
(ii) "Nonstorefront dispensary" for licensees who have a
dispensary that does not have a storefront with direct physical
access for the public.
(iii) "Special dispensary" for licensees who have no more than
three dispensary facilities.
(C) Any of the dispensaries listed in subparagraph (B) may deliver
in a city, county, or city and county that does not expressly
prohibit delivery by local ordinance.
(2) "Distributor," or "Type 11 licensee, "
for the distribution of medical marijuana
cannabis and medical marijuana cannabis
products from manufacturer to dispensary. A Type 11
licensee distributor 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
distributor 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 distributor shall be bonded and
insured at a minimum level established by the licensing authority.
(3) "Transport," "Transporter" or "Type 12
licensee" for transporters of medical marijuana
cannabis or medical marijuana
cannabis products between licensees. A Type 12
licensee transporter 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
both of the following:
(1) Minimum security requirements
for the commercial transportation and delivery of medical
marijuana cannabis and medical
marijuana cannabis products.
(2) Advertising, marketing, signage, and other labeling
requirements and restrictions, including a prohibition on
advertising, marketing, and other promotion of the medical cannabis
or medical cannabis products provided by a person not in full
compliance with this chapter.
(c) A licensed dispensary shall implement
sufficient security measures to both deter and prevent unauthorized
entrance into areas containing medical marijuana
cannabis or medical marijuana
cannabis products and theft of medical marijuana
cannabis or medical marijuana
cannabis 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 marijuana
cannabis and medical marijuana
cannabis 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 marijuana cannabis
used for display purposes, samples, or immediate sale.
(4) Requiring all medical marijuana
cannabis and medical marijuana cannabis
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
marijuana, cannabis, registered
qualifying patients, primary caregivers, or dispensary employees or
agents.
(4) Any other breach of security.
SEC. 23. Section 19335 of the Business
and Professions Code is amended to read:
19335. (a) The Department of Food and Agriculture, in
consultation with the bureau, shall establish a track and trace
program for reporting the movement of medical marijuana
cannabis items throughout the distribution chain
that utilizes a unique identifier pursuant to Section 11362.777 of
the Health and Safety Code and secure packaging and is capable of
providing information that captures, at a minimum, all of the
following:
(1) The licensee receiving the product.
(2) The transaction date.
(3) The cultivator from which the product originates, including
the associated unique identifier, pursuant to Section 11362.777 of
the Health and Safety Code.
(b) (1) The Department of Food and Agriculture shall create an
electronic database containing the electronic shipping
manifests manifests, which shall include, but
not be limited to, the following information:
(A) The quantity, or weight, and variety of products shipped.
(B) The estimated times of departure and arrival.
(C) The quantity, or weight, and variety of products received.
(D) The actual time of departure and arrival.
(E) A categorization of the product.
(F) The license number and the unique identifier pursuant to
Section 11362.777 of the Health and Safety Code issued by the
licensing authority for all licensees involved in the shipping
process, including cultivators, transporters, distributors, and
dispensaries.
(2) (A) The database shall be designed to flag irregularities for
all licensing authorities in this chapter to investigate.
All Notwithstanding Section 30, all
licensing authorities pursuant to this chapter may access the
database and share information related to licensees under this
chapter, including social security and individual taxpayer
identifications notwithstanding Section 30.
identifications.
(B) The Department of Food and Agriculture shall immediately
inform the bureau upon the finding of an irregularity or suspicious
finding related to a licensee, applicant, or commercial cannabis
activity for investigatory purposes.
(3) Licensing authorities and state and local agencies may, at any
time, inspect shipments and request documentation for current
inventory.
(4) The bureau shall have 24-hour access to the electronic
database administered by the Department of Food and Agriculture.
(5) The Department of Food and Agriculture shall be authorized to
enter into memoranda of understandings with licensing authorities for
data sharing purposes, as deemed necessary by the Department of Food
and Agriculture.
(6) Information received and contained in records kept by the
Department of Food and Agriculture or licensing authorities for the
purposes of administering this section are confidential and shall not
be disclosed pursuant to the California Public Records Act (Chapter
3.5 (commencing with Section 6250) of Division 7 of Title 1 of the
Government Code), except as necessary for authorized employees of the
State of California or any city, county, or city and county to
perform official duties pursuant to this chapter or a local
ordinance.
(7) Upon the request of a state or local law enforcement agency,
licensing authorities shall allow access to or provide information
contained within the database to assist law enforcement in their
duties and responsibilities pursuant to this chapter.
SEC. 12. SEC. 24. 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 marijuana
cannabis or medical marijuana cannabis
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 not, by ordinance, explicitly
by ordinance prohibit delivery.
(2) All employees of a dispensary delivering medical
marijuana cannabis or medical marijuana
cannabis 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
marijuana cannabis or medical
marijuana cannabis 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 cannabis
and medical marijuana cannabis
products:
(1) Employee training standards that ensure qualified patients and
primary caregivers have adequate information regarding the medical
marijuana cannabis or medical
marijuana cannabis 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 cannabis
or medical marijuana cannabis 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 cannabis or
medical marijuana cannabis 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 cannabis or medical
marijuana cannabis 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 cannabis or
medical marijuana cannabis 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).
the Confidentiality of Medical Information Act (Part
2.6 (commencing with Section 56) of Division 1 of the Civil Code) and
all other privacy laws and regulations.
(h) The bureau shall establish requirements for all dispensary
employees who deliver medical marijuana
cannabis or medical marijuana cannabis
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. SEC. 25. Section 19342 of
the Business and Professions Code is amended to read:
19342. (a) For the purposes of testing medical marijuana
cannabis or medical marijuana
cannabis 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 marijuana cannabis and
medical marijuana cannabis 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 the following:
(1) In the final form which the patient will consume the medical
marijuana cannabis or medical
marijuana cannabis 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 marijuana
cannabis or medical marijuana
cannabis product upon completion of the analysis.
SEC. 14. SEC. 26. 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
those set by the State Department of Public Health.
SEC. 27. Section 19347 of the Business
and Professions Code is amended to read:
19347. (a) Prior to delivery or sale at a dispensary, medical
cannabis products shall be labeled and in a tamper-evident package.
Labels and packages of medical cannabis products shall meet the
following requirements:
(1) Medical cannabis packages and labels shall not be made to be
attractive to children.
(2) All medical cannabis product labels shall include the
following information, prominently displayed and in a clear and
legible font:
(A) Manufacture date and source.
(B) The statement "SCHEDULE I CONTROLLED SUBSTANCE."
(C) The statement "KEEP OUT OF REACH OF CHILDREN AND ANIMALS" in
bold print.
(D) The statement "FOR MEDICAL USE ONLY."
(E) The statement "THE INTOXICATING EFFECTS OF THIS PRODUCT MAY BE
DELAYED BY UP TO TWO HOURS."
(F) The statement "THIS PRODUCT MAY IMPAIR THE ABILITY TO DRIVE OR
OPERATE MACHINERY. PLEASE USE EXTREME CAUTION."
(G) For packages containing only dried flower, the net weight of
medical cannabis in the package.
(H) A warning if nuts or other known allergens are used.
(I) List of pharmacologically active ingredients, including, but
not limited to, tetrahydrocannabinol (THC), cannabidiol (CBD), and
other cannabinoid content, the THC and other cannabinoid amount in
milligrams per serving, servings per package, and the THC and other
cannabinoid amount in milligrams for the package total.
(J) Clear indication, in bold type, that the product contains
medical cannabis.
(K) Identification of the source and date of cultivation and
manufacture.
(L) Any other requirement set by the bureau.
State Department of Public Health.
(M) Information associated with the unique identifier issued by
the Department of Food and Agriculture pursuant to Section 11362.777
of the Health and Safety Code.
(b) Only generic food names may be used to describe edible medical
cannabis products. products, pursuant to
regulations promulgated by the State Department of Public Health.
SEC. 15. SEC. 28. 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
Cannabis 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. 29. Section 19351 of the Business
and Professions Code is amended to read:
19351. (a) The Medical Marijuana Cannabis
Regulation and Safety Act Fund is hereby established within
the State Treasury. Moneys in the fund shall be available upon
appropriation by the Legislature. Notwithstanding Section 16305.7 of
the Government Code, the fund shall include any interest and
dividends earned on the moneys in the fund.
(b) (1) Funds for the establishment and support of the regulatory
activities pursuant to this chapter shall be advanced as a General
Fund or special fund loan, and shall be repaid by the initial
proceeds from fees collected pursuant to this chapter or any rule or
regulation adopted pursuant to this chapter, by January 1, 2022.
Should the initial proceeds from fees not be sufficient to repay the
loan, moneys from the Medical Cannabis Fines and Penalties Account
shall be made available to the bureau, by appropriation of the
Legislature, to repay the loan.
(2) Funds advanced pursuant to this subdivision shall be
appropriated to the bureau, which shall distribute the moneys to the
appropriate licensing authorities, as necessary to implement the
provisions of this chapter.
(3) The Director of Finance may provide an initial operating loan
from the General Fund to the Medical Marijuana
Cannabis Regulation and Safety Act Fund that does not
exceed ten million dollars ($10,000,000).
(c) Except as otherwise provided, all moneys collected pursuant to
this chapter as a result of fines or penalties imposed under this
chapter shall be deposited directly into the Medical
Marijuana Cannabis Fines and Penalties Account,
which is hereby established within the fund, and shall be available,
upon appropriation by the Legislature to the bureau, for the purposes
of funding the enforcement grant program pursuant to subdivision
(d).
(d) (1) The bureau shall establish a grant program to allocate
moneys from the Medical Cannabis Fines and Penalties Account to state
and local entities for the following purposes:
(A) To assist with medical cannabis regulation and the enforcement
of this chapter and other state and local laws applicable to
cannabis activities.
(B) For allocation to state and local agencies and law enforcement
to remedy the environmental impacts of cannabis cultivation.
(2) The costs of the grant program under this subdivision shall,
upon appropriation by the Legislature, be paid for with moneys in the
Medical Cannabis Fines and Penalties Account.
(3) The grant program established by this subdivision shall only
be implemented after the loan specified in this section
subdivision (b) is repaid.
SEC. 30. Section 19360 of the Business
and Professions Code i s amended to read:
19360. (a) A person engaging in commercial cannabis
activity without a license and associated unique identifiers required
by this chapter shall be subject to civil penalties of up to twice
the amount of the license fee for each violation, and the
department, licensing authority, state or local
authority, or court may order the destruction of medical cannabis
associated with that violation. Each day of operation shall
constitute a separate violation of this section. All civil penalties
imposed and collected pursuant to this section shall be deposited
into the Marijuana Production and Environment Mitigation
Fund established pursuant to Section 31013 of the Revenue and
Taxation Code. Medical Cannabis Fines and Penalties
Account, established pursuant to Section 19351.
(b) If an action for civil penalties is brought against a licensee
pursuant to this chapter by the Attorney General, the penalty
collected shall be deposited into the General Fund.
Medical Cannabis Fines and Penalties Account. If
the action is brought by a district attorney or county counsel, the
penalty collected shall be paid to the treasurer of the county in
which the judgment was entered. If the action is brought by a city
attorney or city prosecutor, the penalty collected shall be paid to
the treasurer of the city or city and county in which the judgment
was entered. If the action is brought by a city attorney and is
adjudicated in a superior court located in the unincorporated area or
another city in the same county, the penalty shall be paid one-half
to the treasurer of the city in which the complaining attorney has
jurisdiction and one-half to the treasurer of the county in which the
judgment is entered.
(c) Notwithstanding subdivision (a), criminal penalties shall
continue to apply to an unlicensed person or entity engaging in
commercial cannabis activity in violation of this chapter,
including, but not limited to, those individuals covered under
Section 11362.7 of the Health and Safety Code.
SEC. 16. SEC. 31. 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 cannabis
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
cannabis-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 cannabis 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 full
compliance with the Medical Marijuana
Cannabis Regulation and Safety Act (Chapter 3.5 (commencing
with Section 19300) of Division 8 of the Business and Professions
Code).
SEC. 17. SEC. 32. 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
cannabis cultivation have increased, and
unlawful water diversions for marijuana
cannabis 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
cannabis cultivation sites is often complex and the permitting
of these sites requires greater department staff time and personnel
expenditures. The potential for marijuana
cannabis 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 cannabis 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
cannabis cultivation. The multiagency task force, to the
extent feasible and subject to available Resources,
resources, shall expand its enforcement efforts
on a statewide level to ensure the reduction of adverse impacts of
marijuana cannabis cultivation on fish
and wildlife and their habitats throughout the state.
(d) In order to facilitate the remediation and permitting of
marijuana cannabis cultivation sites,
the department shall adopt regulations to enhance the fees on
medical-cannabis-cultivation-related activities subject to Section
1602 for marijuana cannabis cultivation
sites that require remediation. The fee schedule established
pursuant to this subdivision shall not exceed the fee limits in
Section 1609.
SEC. 18. SEC. 33. 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 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
cannabis activity engaged in by a person or
entity licensed pursuant to the Medical Marijuana
Cannabis Regulation and Safety Act (Chapter 3.5
(commencing with Section 19300) of Division 8 of the Business and
Professions Code). Code) and who is in full
compliance with that act and all applicable local
ordinances.
SEC. 19. SEC. 34. 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 cannabis unless otherwise
authorized by this article, nor shall anything in this section
authorize any individual or group to cultivate or distribute
marijuana cannabis in any manner other than as
set forth in this article, the Medical Marijuana
Cannabis Regulation and Safety Act (Chapter 3.5
(commencing with Section 19300) of Division 8 of the Business and
Professions Code) 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
cannabis for his or her own personal medical use.
(2) A designated primary caregiver who transports, processes,
administers, delivers, or gives away marijuana
cannabis 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 An 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 cannabis to the
qualified patient or person or acquiring the skills necessary to
cultivate or administer marijuana cannabis
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
cannabis 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. SEC. 35. 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 marijuana
cannabis 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 Cannabis
Regulation posts a notice on its Internet Web site that the
licensing authorities have commenced issuing licenses pursuant to the
Medical Marijuana Cannabis Regulation
and Safety Act (Chapter 3.5 (commencing with Section 19300) of
Division 8 of the Business and Professions Code), and is repealed
upon that date.
SEC. 36. Section 11362.777 of the
Health and Safety Code is amended to read:
11362.777. (a) The Department of Food and Agriculture shall
establish a Medical Cannabis Cultivation Program to be administered
by the secretary and, except as specified in subdivision (c), shall
administer this section as it pertains to the cultivation of medical
marijuana. cannabis. For purposes of
this section and Chapter 3.5 (commencing with Section 19300) of
Division 8 of the Business and Professions Code, medical cannabis is
an agricultural product.
(b) (1) A person or entity shall not cultivate medical
marijuana cannabis without first obtaining both
of the following:
(A) A license, permit, or other entitlement, specifically
permitting cultivation pursuant to these provisions, from the city,
county, or city and county in which the cultivation will occur.
(B) A state license issued by the department pursuant to this
section.
(2) A person or entity shall not submit an application for a state
license issued by the department pursuant to this
section unless that person or entity has received a license, permit,
or other entitlement, specifically permitting cultivation pursuant
to these provisions, from the city, county, or city and county in
which the cultivation will occur.
(3) A person or entity shall not submit an application for a state
license issued by the department pursuant to this
section if the proposed cultivation of marijuana
cannabis will violate the provisions of any
a local ordinance or regulation, or if medical
marijuana cannabis is prohibited by the
city, county, or city and county in which the cultivation is
proposed to occur, either expressly or otherwise under principles of
permissive zoning.
(c) (1) Except as otherwise specified in this subdivision, and
without limiting any other local regulation, a city, county, or city
and county, through its current or future land use regulations or
ordinance, may issue or deny a permit to cultivate medical
marijuana cannabis pursuant to this section. A
city, county, or city and county may inspect the intended cultivation
site for suitability before issuing a permit. After the city,
county, or city and county has approved a permit, the applicant shall
apply for a state medical marijuana ca
nnabis cultivation license from the department. A locally
issued cultivation permit shall only become active upon licensing by
the department and receiving final local approval. A person shall
not cultivate medical marijuana cannabis
before obtaining both a license or permit from the
city, county, or city and county and a state medical
marijuana cannabis cultivation license from the
department.
(2) A city, county, or city and county that issues or denies
conditional licenses to cultivate medical marijuana
cannabis pursuant to this section shall notify
the department in a manner prescribed by the secretary.
(3) A city, county, or city and county's locally issued
conditional permit requirements must be at least as stringent as the
department's state licensing requirements.
(d) (1) The secretary may prescribe, adopt, and enforce
regulations relating to the implementation, administration, and
enforcement of this part, section,
including, but not limited to, applicant requirements, collections,
reporting, refunds, and appeals.
(2) The secretary may prescribe, adopt, and enforce any emergency
regulations as necessary to implement this part. Any
section. An emergency regulation prescribed,
adopted, or enforced pursuant to this section shall be adopted in
accordance with Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code, and, for purposes
of that chapter, including Section 11349.6 of the Government Code,
the adoption of the regulation is an emergency and shall be
considered by the Office of Administrative Law as necessary for the
immediate preservation of the public peace, health and safety, and
general welfare.
(3) The secretary may enter into a cooperative agreement with a
county agricultural commissioner to carry out the provisions of this
chapter, section, including, but not
limited to, administration, investigations, inspections, licensing
and assistance pertaining to the cultivation of medical
marijuana. cannabis. Compensation under the
cooperative agreement shall be paid from assessments and fees
collected and deposited pursuant to this chapter
section and shall provide reimbursement to the county
agricultural commissioner for associated costs.
(e) (1) The department, in consultation with, but not limited to,
the Bureau of Medical Marijuana Cannabis
Regulation, the State Water Resources Control Board, and the
Department of Fish and Wildlife, shall implement a unique
identification program for medical marijuana.
cannabis. In implementing the program, the department shall
consider issues, including, but not limited to, water use and
environmental impacts. In implementing the program, the department
shall ensure that:
(A) 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.
(B) Cultivation will not negatively impact springs, riparian
wetlands, and aquatic habitats.
(2) The department shall establish a program for the
identification of permitted medical marijuana
cannabis plants at a cultivation site during the cultivation
period. The unique identifier shall be attached at the base of each
plant. A unique identifier, such as, but not limited to, a zip tie,
shall be issued for each medical marijuana
cannabis plant.
(A) Unique identifiers will shall
only be issued to those persons appropriately licensed by this
section.
(B) Information associated with the assigned unique identifier and
licensee shall be included in the trace and track program specified
in Section 19335 of the Business and Professions Code.
(C) The department may charge a fee to cover the reasonable costs
of issuing the unique identifier and monitoring, tracking, and
inspecting each medical marijuana cannabis
plant.
(D) The department may promulgate regulations to implement this
section.
(3) The department shall take adequate steps to establish
protections against fraudulent unique identifiers and limit illegal
diversion of unique identifiers to unlicensed persons.
(f) (1) A city, county, or city and county that issues or denies
licenses licenses, permits, or other
entitlements to cultivate medical marijuana
cannabis pursuant to this section shall notify the
department in a manner prescribed by the secretary.
(2) Unique identifiers and associated identifying information
administered by a city or county city,
county, or city and county shall adhere to the requirements set
by the department and be the equivalent to those administered by the
department.
(g) This section does not apply to a qualified patient cultivating
marijuana cannabis pursuant to Section
11362.5 if the area he or she uses to cultivate marijuana
cannabis does not exceed 100 square feet and he
or she cultivates marijuana cannabis
for his or her personal medical use and does not sell, distribute,
donate, or provide marijuana cannabis
to any other person or entity. This section does not apply to a
primary caregiver cultivating marijuana
cannabis pursuant to Section 11362.5 if the area he or she uses
to cultivate marijuana cannabis does
not exceed 500 square feet and he or she cultivates
marijuana cannabis exclusively for the personal
medical use of no more than five specified qualified patients for
whom he or she is the primary caregiver within the meaning of Section
11362.7 and does not receive remuneration for these activities,
except for compensation provided in full compliance with subdivision
(c) of Section 11362.765. For purposes of this section, the area used
to cultivate marijuana cannabis shall
be measured by the aggregate area of vegetative growth of live
marijuana cannabis plants on the
premises. Exemption from the requirements of this section does not
limit or prevent a city, county, or city and county from exercising
its police authority under Section 7 of Article XI of the California
Constitution.
SEC. 21. SEC. 37. 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 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
cannabis activity engaged in by a person or
entity licensed pursuant to the Medical Marijuana
Cannabis Regulation and Safety Act (Chapter 3.5
(commencing with Section 19300) of Division 8 of the Business and
Professions Code). Code) and who is in full
compliance with that act and all applicable local ordinances.