CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill No. 185

Introduced by Senator McGuire

January 30, 2019

An act to amend Sections 26062 and 26063 of, and to add Section 14235.5 to, the Business and Professions Code, relating to cannabis.


LEGISLATIVE COUNSEL'S DIGEST


SB 185, as introduced, McGuire. Cannabis: marketing.
(1) Existing law, the Model State Trademark Law, provides for the registration of trademarks and service marks with the Secretary of State and requires the classification of goods and services for those purposes to conform to the classifications adopted by the United States Patent and Trademark Office.
This bill, for purposes of marks for which a certificate of registration is issued on or after January 1, 2020, would, notwithstanding those provisions, authorize the use of specified classifications for marks related to cannabis, including medicinal cannabis, goods and services that are lawfully in commerce under state law in the State of California.
(2) Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), approved by the voters at the November 8, 2016, statewide general election, regulates the cultivation, distribution, transport, storage, manufacturing, testing, processing, sale, and use of marijuana for nonmedical purposes by people 21 years of age and older. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities.
MAUCRSA requires, not later than January 1, 2021, the Department of Food and Agriculture to establish a program for cannabis comparable to the federal National Organic Program and the California Organic Food and Farming Act. Existing law requires the department to be the sole determiner of organic designation and certification, unless the federal National Organic Program authorizes organic designation and certification for cannabis, in which case the department’s authority would become inoperative and would be repealed on the following January 1. Existing law prohibits a person from representing, selling, or offering for sale any cannabis or cannabis products as organic or with the designation or certification established by the department, except as provided.
This bill would require the department to establish the certification program in conjunction with the State Department of Public Health and would specify that the certification program be for cannabis and manufactured cannabis products.
(3) MAUCRSA prohibits cannabis and cannabis products from being represented to consumers, as specified, as coming from a California county unless the cannabis was grown in that county. MAUCRSA requires the department, no later than January 1, 2021, to establish a process by which cultivators may establish appellations for cannabis grown in certain geographical areas of California, instead of by county.
This bill would use the term “appellations of origin” instead of “appellations” and would apply the same prohibitions against misrepresentation of county of origin to misuse of appellations of origin established pursuant to the above-described process.
(4) AUMA authorizes the Legislature to amend by majority vote certain provisions of the act to implement specified substantive provisions, provided that the amendments are consistent with and further the purposes and intent of AUMA.
This bill would declare that its provisions implement specified substantive provisions of AUMA and are consistent with and further the purposes and intent of AUMA.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 14235.5 is added to the Business and Professions Code, to read:

14235.5.
 (a) Notwithstanding Section 14235, for purposes of marks for which a certificate of registration is issued on or after January 1, 2020, the following classifications may be used for marks related to cannabis, including medicinal cannabis, goods and services that are lawfully in commerce under state law in the State of California:
(1) 500 for goods that are cannabis or cannabis products, including medicinal cannabis or medicinal cannabis products.
(2) 501 for services related to cannabis or cannabis products, including medicinal cannabis or medicinal cannabis products.
(b) For purposes of this section, “cannabis,” “cannabis products,” “medicinal cannabis,” and “medicinal cannabis products” have the meanings provided in Section 26001.

SEC. 2.

 Section 26062 of the Business and Professions Code is amended to read:

26062.
 (a) No later than January 1, 2021, the Department of Food and Agriculture Agriculture, in conjunction with the State Department of Public Health, shall establish a certification program for cannabis and manufactured cannabis products that is comparable to the National Organic Program (Section 6517 of the federal Organic Foods Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.)), and seq.)), the California Organic Food and Farming Act (Chapter 10 (commencing with Section 46000) of Division 17 of the Food and Agricultural Code) Code), and Article 7 (commencing with Section 110810) of Chapter 5 of Part 5 of Division 104 of the Health and Safety Code. The Department of Food and Agriculture shall be the sole determiner of designation and certification.
(b) If at any time preceding or following the establishment of a certification program by the Department of Food and Agriculture pursuant to subdivision (a), the National Organic Program (Section 6517 of the federal Organic Foods Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.)) authorizes organic designation and certification for cannabis, this section shall become inoperative and, as of January 1, 1 of the following year, is repealed.

SEC. 3.

 Section 26063 of the Business and Professions Code is amended to read:

26063.
 (a) (1) No later than January 1, 2018, the Department of Food and Agriculture shall establish standards by which a licensed cultivator may designate a county of origin for cannabis. To be eligible for the designation, 100 percent of the cannabis shall be produced within the designated county, as defined by finite political boundaries.

(1)

(2) Cannabis shall not be advertised, marketed, labeled, or sold as grown in a California county when the cannabis was not grown in that county.

(2)

(3) The name of a California county, including any similar name that is likely to mislead consumers as to the origin of the product, shall not be used in the advertising, labeling, marketing, or packaging of cannabis products unless the cannabis contained in the product was grown in that county.
(b) (1) No later than January 1, 2021, the Department of Food and Agriculture shall establish a process by which licensed cultivators may establish appellations appellation of origin standards, practices, and varietals applicable to cannabis grown in a certain geographical area in California, not otherwise specified in subdivision (a).
(2) Cannabis shall not be advertised, marketed, labeled, or sold using an appellation of origin established pursuant to paragraph (1) unless the cannabis meets the appellation of origin requirements for the geographical area.
(3) An appellation of origin established pursuant to this subdivision, including any similar name that is likely to mislead consumers as to the kind of cannabis contained in a product, shall not be used in the advertising, labeling, marketing, or packaging of a cannabis product unless the cannabis contained in the product meets the appellation of origin requirements for the geographical area.

SEC. 4.

 The Legislature finds and declares that Sections 2 and 3 of this act, amending Sections 26062 and 26063 of the Business and Professions Code, implement Section 6.1 of the Control, Regulate and Tax Adult Use of Marijuana Act of 2016 and are consistent with and further the purposes and intent of that act as stated in Section 3 of that act.