Bill Text: CA SB643 | 2015-2016 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Medical marijuana.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2015-10-09 - Chaptered by Secretary of State. Chapter 719, Statutes of 2015. [SB643 Detail]
Download: California-2015-SB643-Amended.html
Bill Title: Medical marijuana.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2015-10-09 - Chaptered by Secretary of State. Chapter 719, Statutes of 2015. [SB643 Detail]
Download: California-2015-SB643-Amended.html
BILL NUMBER: SB 643 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 18, 2015
AMENDED IN ASSEMBLY AUGUST 17, 2015
AMENDED IN SENATE JUNE 3, 2015
AMENDED IN SENATE MAY 6, 2015
AMENDED IN SENATE APRIL 6, 2015
INTRODUCED BY Senator McGuire
FEBRUARY 27, 2015
An act to amend Section 2220.05 of, to add Article 25 (commencing
with Section 2525) to Chapter 5 of Division 2 of, and to add Part 5
(commencing with Section 18100) to Division 7 of, the Business and
Professions Code, to add Section 23028 to the Government Code, and to
amend Section 11362.775 of, and to add Article 8
(commencing with Section 111658) to Chapter 6 of Part 5 of Division
104 of, the Health and Safety Code, to add Section 3094 to the
Labor Code, and to add Section 2402.5 to the Vehicle Code,
relating to medical marijuana.
LEGISLATIVE COUNSEL'S DIGEST
SB 643, as amended, McGuire. Medical marijuana.
(1) Existing law, the Compassionate Use Act of 1996, an initiative
measure enacted by the approval of Proposition 215 at the November
6, 1996, statewide general election, authorizes the use of marijuana
for medical purposes. Existing law enacted by the Legislature
requires the establishment of a program for the issuance of
identification cards to qualified patients so that they may lawfully
use marijuana for medical purposes, and requires the establishment of
guidelines for the lawful cultivation of marijuana grown for medical
use. Existing law provides for the licensure of various professions
by the Department of Consumer Affairs. Existing law, the Sherman
Food, Drug, and Cosmetic Law, provides for the regulation of food,
drugs, devices, and cosmetics, as specified. A violation of that law
is a crime.
This bill would establish within the Business, Consumer Services,
and Housing Agency the Office of Medical Marijuana Regulation, under
the supervision and control of the Chief of the Office of Medical
Marijuana Regulation, and, beginning no later than July 1,
2018, would require the office to license and
Regulation. The bill would authorize the office to issue licenses for
commercial marijuana activity and would require the office to
regulate dispensing facilities, cultivation sites, transporters, and
manufacturers of medical marijuana and medical marijuana products,
subject to local ordinances. The bill would require a background
check of applicants for licensure, as defined, to be administered by
the Department of Justice, and submission of a statement signed by an
applicant, under penalty of perjury, that the information on his or
her application is true, thereby creating a crime and imposing a
state-mandated local program. Violation of the provisions related to
applying for a conditional license would be
punishable by a civil fine of up to $35,000 for each individual
violation, or as otherwise specified.
The bill would make conditional licenses subject
to the restrictions of the local jurisdiction in which the facility
operates or proposes to operate. The bill would authorize a facility
or entity that is operating in conformance
compliance with local zoning ordinances and other state and
local requirements on January 1, 2016, to continue its operations
until its application for conditional licensure is
approved or denied. The bill would set forth provisions related to
the transportation, testing, and distribution of medical marijuana
and medical marijuana products. The bill would prohibit the
distribution of any form of advertising for physician recommendations
for medical marijuana, unless the advertisement bears a specified
notice and requires that the advertisement meet specified
requirements and not be fraudulent, deceitful, or misleading.
The bill would establish the Medical Marijuana Regulation Fund and
would require the deposit of specified fees collected pursuant to
this act into the fund. The bill would make moneys from the fund
available upon appropriation to the office for the purposes of
administering this act. The bill would also establish the Special
Account for Environmental Enforcement within the Medical Marijuana
Regulation Fund. This account would contain money from fees assessed
against licensed cultivation sites and would be available upon
appropriation for the enforcement of environmental regulations
relating to licensed cultivation sites. The bill would require the
deposit of penalty moneys collected pursuant to this bill into the
General Fund.
The bill would require, among other things, that all
marijuana grown, produced, distributed, and sold in the state, by
January 1, 2022, meet standards equivalent to those for certified
organic crops and the Department of Food and
Agriculture, in conjunction with the office, to make available a
certified organic designation for medical marijuana by January 1,
2020, or, if the certified organic designation and organic
certification program is not available by that date, to develop an
equivalent program by January 1, 2022. The bill would also require
that the office establish "appellations of origin" for
marijuana grown in the state.
The bill would provide that it shall not supersede provisions of
Measure D, as approved by the voters of the City of Los Angeles, or
other similar measures, as specified.
The bill would establish enforcement procedures and would
authorize a city, county, or city and county to administer and
enforce these provisions. The bill, by July 1, 2017, would
require the office to report to the Legislature on the feasibility of
developing a program to certify laboratories for the testing of
medical marijuana and related products and the feasibility of
developing a labeling requirement for edible marijuana products, as
specified. The bill would further set forth provisions
regulating edible medical marijuana products, as specified. By adding
these provisions to the Sherman Food, Drug, and Cosmetic Law, a
violation of which is a crime, the bill would impose a state-mandated
local program.
(2) Existing law, the Medical Practice Act, provides for the
licensure and regulation of physicians and surgeons by the Medical
Board of California. Existing law requires the board to prioritize
investigations and prosecutions of physicians and surgeons
representing the greatest threat of harm, as specified. Existing law
identifies the cases that are to be given priority, which include
cases of repeated acts of excessively prescribing, furnishing, or
administering controlled substances without a good faith prior
examination of the patient. Existing law provides that a violation of
the Medical Practice Act is a crime.
This bill would require the board to consult with the Center for
Medicinal Cannabis Research on developing and adopting medical
guidelines for the appropriate administration and use of marijuana.
The bill would also make it a misdemeanor for a physician and
surgeon who recommends marijuana to a patient for a medical purpose
to accept, solicit, or offer any remuneration from or to a licensed
dispensing facility in which the physician and surgeon or his or her
immediate family has a financial interest. By creating a new crime,
the bill would impose a state-mandated local program.
The bill would provide that specified acts of recommending
marijuana for medical purposes without a good faith examination are
among the types of cases that should be given priority for
investigation and prosecution by the board, as described above. The
bill would further prohibit a physician and surgeon from recommending
medical marijuana to a patient unless that person is the patient's
attending physician, as defined. Because a violation of that
provision would be a crime, the bill would impose a state-mandated
local program.
(3) Existing law authorizes the legislative body of a city or
county to impose various taxes, including a transactions and use tax
at a rate of 0.25%, or a multiple thereof, if approved by the
required vote of the legislative body and the required vote of
qualified voters, and limits the combined rate of transactions and
use taxes within a city or county to 2%.
This bill would authorize a county by ordinance, to impose a tax
on the privilege of cultivating, dispensing, producing, processing,
preparing, storing, providing, donating, selling, or distributing
medical marijuana by an entity issued a conditional
license. The bill would authorize the tax to be imposed for
either general or specific governmental purposes. The bill would
require a tax imposed pursuant to this authority to be subject to any
applicable voter approval requirement.
(4) Existing law exempts qualified patients, persons with valid
identification cards, and the designated primary caregivers of
qualified patients and persons with identification cards from certain
crimes, including possession of concentrated cannabis and marijuana,
cultivation of marijuana, and possession of marijuana for sale.
This bill, after July 1, 2018, would also exempt from those crimes
an employee, officer, or board member of a licensed cultivation site
or a licensed dispensing facility, except as specified.
(5) Existing law establishes the Division of Apprenticeship
Standards, which audits and regulates apprenticeship programs for
various trades, including electricians.
This bill would require the division to investigate, approve, or
reject applications for apprenticeship employees of a licensed
cultivation site or a licensed dispensing facility, as defined.
(6) Existing law establishes the Department of Motor Vehicles and
the Department of the California Highway Patrol. Existing law also
prohibits and establishes standards for driving under the influence
of alcohol.
This bill would require the Department of Motor Vehicles, in
consultation with the Department of the California Highway Patrol, to
establish protocols to determine whether a driver is operating a
vehicle under the influence of cannabis, and to develop protocols
setting forth best practices to assist law enforcement agencies. The
bill would require the Department of Motor Vehicles to prepare and
submit a report, by September 1, 2016, that identifies best practices
for the identification, detection, and apprehension of drivers
operating a vehicle unsafely due to medical cannabis impairment.
(5)
(7) Existing law imposes sales and use taxes, as
specified, to be collected by the State Board of Equalization.
This bill would require the State Board of Equalization, on or
before July 1, 2016, to compile a report that includes the actual tax
collected on the sale of medical marijuana, using the most current
data available, and the expected tax revenues, under the existing tax
structure, for the years 2016 to 2021, inclusive, and to submit that
report to the Legislature and Governor's Office.
(6)
(8) This bill would provide that its provisions are
severable.
(7)
(9) Existing constitutional provisions require that a
statute that limits the right of access to the meetings of public
bodies or the writings of public officials and agencies be adopted
with findings demonstrating the interest protected by the limitation
and the need for protecting that interest.
This bill would make legislative findings to that effect.
(8)
(10) The California Constitution requires the state to
reimburse local agencies and school districts for certain costs
mandated by the state. Statutory provisions establish procedures for
making that reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. This act shall be known, and may be cited, as the
Medical Marijuana Public Safety and Environmental Protection Act.
SEC. 2. The Legislature finds and declares all of the following:
(a) In 1996, the people of the State of California enacted the
Compassionate Use Act of 1996, codified in Section 11362.5 of the
Health and Safety Code. The people of the State of California
declared that their purpose in enacting the measure was, among other
things, "to ensure that seriously ill Californians have the right to
obtain and use marijuana for medical purposes where that medical use
is deemed appropriate and has been recommended by a physician who has
determined that the person's health would benefit from the use of
marijuana in the treatment of cancer, anorexia, AIDS, chronic pain,
spasticity, glaucoma, arthritis, migraine, or any other illness for
which marijuana provides relief."
(b) The Compassionate Use Act of 1996 called on state government
to implement a plan for the safe and affordable distribution of
marijuana to all patients in medical need of marijuana, while
ensuring that nothing in that act would be construed to condone the
diversion of marijuana for nonmedical purposes.
(c) In 2003, the Legislature enacted the Medical Marijuana Program
Act (MMPA), codified in Article 2.5 (commencing with Section
11362.7) of Chapter 6 of Division 10 of the Health and Safety Code.
(d) Greater certainty and minimum statewide standards are urgently
needed regarding the obligations of medical marijuana facilities,
and for the imposition and enforcement of regulations to prevent
unlawful cultivation and the diversion of marijuana to nonmedical
use.
(e) Despite the passage of the Compassionate Use Act of 1996 and
the MMPA, because of the lack of an effective statewide system for
regulating and controlling medical marijuana, cities, counties, and
local law enforcement officials have been confronted with uncertainty
about the legality of some medical marijuana cultivation and
distribution activities. The current state of affairs makes law
enforcement difficult and endangers patient safety because of an
inability to monitor the supply of medical marijuana in the state and
the lack of quality control, testing, and labeling requirements.
(f) The California Constitution grants cities and counties the
authority to make and enforce, within their borders, "all local
police, sanitary, and other ordinances and regulations not in
conflict with the general laws." This inherent local police power
includes broad authority to determine, for purposes of public health,
safety, and welfare, the appropriate uses of land within the local
jurisdiction's borders. The police power, therefore, allows each city
and county to determine whether or not a medical marijuana
dispensary or other facility that makes medical marijuana available
may operate within its borders. This authority has been
upheld by City of Riverside v. Inland Empire Patients Health and
Wellness Center, Inc. (2013) 56 Cal.4th 729 and County of Los Angeles
v. Hill (2011) 192 Cal.App.4th 861. Nothing in this act
shall diminish, erode, or modify that authority.
(g) If a city or county determines that a dispensary or other
facility that makes medical marijuana available may operate within
its borders, then there is a need for the state and local governments
to license these dispensaries and other facilities for the purpose
of adopting and enforcing protocols for security standards at
dispensaries and in the transportation of medical marijuana, as well
as health and safety standards to ensure patient safety. This
licensing requirement is not intended in any way nor shall it be
construed to preempt local ordinances, regulations, or enforcement
actions regarding the sale and use of medical marijuana, including,
but not limited to, security, signage, lighting, and inspections.
(h) Greater oversight, uniformity, and enforcement are urgently
needed regarding the obligations and rights of medical marijuana
cultivators, transporters, and distribution facilities.
(i) Marijuana has widely accepted medical applications that make
it inappropriate to be classified as a Schedule I controlled
substance in the State of California.
(j) For the protection of Californians, the state must act to
regulate and control commercial medical marijuana and not preempt
local government ordinances. Counties should be allowed to impose
local taxes and enact zoning regulations and other restrictions
applicable to the cultivation, transportation, and distribution of
medical marijuana based on local needs.
(k) For the protection of California's environment and its natural
resources, all efforts must be made to prevent and mitigate the
harmful environmental impacts that can be associated with some
marijuana cultivation.
(l) Illegal trespass grows on private and public property pose a
threat to public safety and the environment.
(m) The North Coast Regional Water Quality Control Board is
currently in the process of promulgating regulations that would
create a 3-tiered system for cultivator wastewater discharge permits.
A similar permitting system would assist the state in controlling
damaging wastewater runoff from cultivation sites, while minimizing
the burden on smaller cultivators.
(n) Nothing in this act shall have a diminishing effect on the
rights and protections granted to a patient or primary caregiver
pursuant to the Compassionate Use Act of 1996.
(o) Nothing in this act shall be construed to promote or
facilitate the nonmedical, recreational possession, sale, or use of
marijuana.
SEC. 3. Section 2220.05 of the Business and Professions Code is
amended to read:
2220.05. (a) In order to ensure that its resources are maximized
for the protection of the public, the Medical Board of California
shall prioritize its investigative and prosecutorial resources to
ensure that physicians and surgeons representing the greatest threat
of harm are identified and disciplined expeditiously. Cases involving
any of the following allegations shall be handled on a priority
basis, as follows, with the highest priority being given to cases in
the first paragraph:
(1) Gross negligence, incompetence, or repeated negligent acts
that involve death or serious bodily injury to one or more patients,
such that the physician and surgeon represents a danger to the
public.
(2) Drug or alcohol abuse by a physician and surgeon involving
death or serious bodily injury to a patient.
(3) Repeated acts of clearly excessive prescribing, furnishing, or
administering of controlled substances, or repeated acts of
prescribing, dispensing, or furnishing of controlled substances, or
recommending marijuana to patients for medical purposes, without a
good faith prior examination of the patient and medical reason
therefor. However, in no event shall a physician and surgeon
prescribing, furnishing, or administering controlled substances for
intractable pain consistent with lawful prescribing, including, but
not limited to, Sections 725, 2241.5, and 2241.6 of this code and
Sections 11159.2 and 124961 of the Health and Safety Code, be
prosecuted for excessive prescribing and prompt review of the
applicability of these provisions shall be made in any complaint that
may implicate these provisions.
(4) Sexual misconduct with one or more patients during a course of
treatment or an examination.
(5) Practicing medicine while under the influence of drugs or
alcohol.
(b) The board may by regulation prioritize cases involving an
allegation of conduct that is not described in subdivision (a). Those
cases prioritized by regulation shall not be assigned a priority
equal to or higher than the priorities established in subdivision
(a).
(c) The Medical Board of California shall indicate in its annual
report mandated by Section 2312 the number of temporary restraining
orders, interim suspension orders, and disciplinary actions that are
taken in each priority category specified in subdivisions (a) and
(b).
SEC. 4. Article 25 (commencing with Section 2525) is added to
Chapter 5 of Division 2 of the Business and Professions Code, to
read:
Article 25. Recommending Medical Marijuana
2525. (a) It is unlawful for a physician and surgeon who
recommends marijuana to a patient for a medical purpose to accept,
solicit, or offer any form of remuneration from or to a facility
issued a conditional license pursuant to Part 5
(commencing with Section 18100) of Division 7, if the physician and
surgeon or his or her immediate family have a financial interest in
that facility.
(b) For the purposes of this section, "financial interest" shall
have the same meaning as in Section 650.01.
(c) A violation of this section shall be a misdemeanor.
2525.1. The Medical Board of California shall consult with the
California Marijuana Research Program, known as the Center for
Medicinal Cannabis Research, authorized pursuant to Section 11362.9
of the Health and Safety Code, on developing and adopting medical
guidelines for the appropriate administration and use of medical
marijuana.
2525.2. A physician and surgeon shall not recommend medical
marijuana to a patient, unless that person is the patient's attending
physician, as defined by subdivision (a) of Section 11362.7 of the
Health and Safety Code.
SEC. 5. Part 5 (commencing with Section 18100) is added to
Division 7 of the Business and Professions Code, to read:
PART 5. Medical Marijuana
CHAPTER 1. GENERAL PROVISIONS
18100. For purposes of this part, the following definitions shall
apply:
(a) "Chief" means the Chief of the Office of Medical Marijuana
Regulation.
(b) "Delivery" means the commercial transfer of medical marijuana
or medical marijuana products from a dispensary, up to an amount
determined by the office, to a primary caregiver or qualified
patient, as defined in Section 11362.7 of the Health and Safety Code,
a testing laboratory, or to an event or location where it will be
used solely for promotional purposes. Delivery also includes the use
by a dispensary of a third party or any technology platform that
enables qualified patients or primary caregivers to arrange for or
facilitate the commercial transfer of medical marijuana or medical
marijuana products.
(b)
(c) "Dispensary" means a distribution operation that
provides medical marijuana or medical marijuana derived products to
patients and caregivers.
(d) "Distribution" means procurement, sale, and transport of
medical marijuana and medical marijuana products purchased and sold
between licensed entities.
(e) "Distributor" means a person who is engaged in the business of
purchasing medical marijuana from a licensed cultivator or medical
marijuana products from a licensed manufacturer in order to
distribute to other licensees.
(c)
(f) "Fund" means the Medical Marijuana Regulation Fund
established pursuant to Section 18118.
(g) "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.
(d)
(h) "Licensed cultivation site" means a facility that
plants, grows, cultivates, harvests, dries, or processes medical
marijuana and that is issued both a conditional
license pursuant to this part and a local license or permit.
(e)
(i) "Licensed dispensing facility" means a dispensary
or other facility that provides medical marijuana, medical marijuana
products, or devices for the use of medical marijuana or medical
marijuana products that is issued both a conditional
license pursuant to this part and a local license or
permit.
(f)
(j) "Licensed manufacturer" means a person who
extracts, prepares, derives, produces, compounds, or repackages
medical marijuana or medical marijuana products into consumable and
nonconsumable forms and that is issued both a conditional
license pursuant to this part and a local license or
permit.
(g)
(k) "Licensed transporter" means an individual or
entity issued both a conditional a
license by the office and a local license or permit
to transport medical marijuana to and from facilities that
have been issued conditional licenses both a
license pursuant to this part or and a
local license or permit for medical marijuana products above a
quantity limit established by the office.
(h)
(l) "Marijuana" or "cannabis "
means all parts of the plant Cannabis sativa, Cannabis indica, or
Cannabis ruderalis, whether growing or not; the seeds thereof; the
resin, whether crude or purified, extracted from any part of the
plant; and every compound, manufacture, salt, derivative, mixture, or
preparation of the plant, its seeds, or resin. "Marijuana" does not
include the mature stalks of the plant, fiber produced from the
stalks, oil or cake made from the seeds of the plant, any other
compound, manufacture, salt, derivative, mixture, or preparation of
the mature stalks (except the resin extracted therefrom), fiber, oil,
or cake, or the sterilized seed of the plant which is incapable of
germination. "Marijuana" also means marijuana, as defined by Section
11018 of the Health and Safety Code.
(i)
(m) "Office" means the Office of Medical Marijuana
Regulation in the Business, Consumer Affairs,
Services, and Housing Agency.
18101. (a) There is hereby created in the Business, Consumer
Affairs, and Housing Agency the Office of Medical Marijuana
Regulation, under the supervision and control of the Chief of the
Office of Medical Marijuana Regulation.
(b) Protection of the public shall be the highest
priority Preservation of patients' access to medical
marijuana and the protection of the public shall be the highest
priorities for the office in exercising its licensing,
regulatory, and disciplinary functions. Whenever the protection of
the public is inconsistent with other interests sought to be
promoted, the protection of the public shall be paramount.
(c) The office shall have the authority to issue, suspend, or
revoke conditional licenses for the cultivation, manufacture,
transportation, storage, distribution, testing, and sale
of medical marijuana within the state and to collect fees in
connection with these actions. The office shall have the authority to
create, issue, suspend, or revoke other licenses in order to protect
patient health and the public and to facilitate the regulation of
medical marijuana.
(d) (1) The Governor shall appoint the chief at a salary to be
fixed and determined by the secretary with the approval of the
Director of Finance.
(2) Appointment of the chief shall be subject to confirmation by
the Senate Committee on Rules.
(e) The duty of enforcing and administering this part shall be
vested in the chief. The chief may adopt and enforce those rules and
regulations that he or she determines are reasonably necessary to
carry out the purposes of this part and declaring the policy of the
office, including a system for the issuance of citations for
violations of this part, as specified in Section 18127.
(f) The chief, as necessary to carry out the provisions of this
part, and in accordance with the State Civil Service Act (Part 2
(commencing with Section 18500) of Division 5 of Title 2 of the
Government Code), may appoint and fix the compensation of personnel,
including, but not limited to, clerical, inspection, investigation,
and auditing personnel, as well as an assistant chief. These
personnel shall perform their respective duties under the supervision
and the direction of the chief.
(g) Every power granted to, or duty imposed upon, the chief under
this part may be exercised or performed in the name of the chief by a
deputy or assistant chief, subject to conditions and limitations
that the chief prescribes.
(h) The office shall exercise its authority pursuant to this part
consistent with Section 1 of the act that added this section and
consistent with the provisions of this part.
18102. Funds for the establishment and support of the office
shall be advanced as a loan from the General Fund and shall be repaid
by the initial proceeds from fees collected pursuant to this part or
any rule or regulation adopted pursuant to this part.
18103. The office shall have the authority necessary for the
implementation of this part, including, but not limited to, all of
the following:
(a) Establishing rules or regulations necessary to carry out the
purposes and intent of this part and to enable the office to exercise
the powers and perform the duties conferred upon it by this part and
in accordance with Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code. These rules
and regulations shall not limit any authority of a city, county, or
city and county provided by law. For the performance of its duties,
the office has the powers as set forth in Article 2 (commencing with
Section 11180) of Chapter 2 of Part 1 of Division 3 of Title 2 of the
Government Code.
(b) Issuing conditional licenses to persons for
the cultivation, manufacture, transportation, storage, distribution,
testing, and sale of medical marijuana within the state.
(c) Setting application, licensing, and renewal fees for
conditional licenses issued pursuant to Section
18117. 18114.
(d) Establishing standards for the cultivation, manufacturing,
transportation, storage, distribution, provision, testing, donation,
and sale of medical marijuana and medical marijuana products.
(e) Establishing procedures for the issuance, renewal, suspension,
denial, and revocation of conditional licenses.
(f) Enforcing the licensing and regulatory requirement of this
part, subject to the requirements of Section 18126.
(g) Imposing a penalty authorized by this part or any rule or
regulation adopted pursuant to this part.
(h) Taking action with respect to an application for a
conditional license in accordance with procedures
established pursuant to this part.
(i) Overseeing the operation of the Medical Marijuana Regulation
Fund and the Special Account for Environmental Enforcement,
established pursuant to Section 18118. 18115.
(j) Consulting with other state or local agencies, departments,
representatives of the medical marijuana community, or public or
private entities for the purposes of establishing statewide standards
and regulations.
18104. (a) On or before January 1, 2018, the office shall
promulgate regulations for implementation and enforcement of this
part, including, but not limited to, all of the following:
(1) Procedures for the issuance, renewal, suspension, denial, and
revocation of conditional licenses.
(2) Procedures for appeal of fines and the appeal of denial,
suspension, or revocation of conditional licenses.
(3) Application, licensing, and renewal forms and fees.
(4) A time period in which the office shall approve or deny an
application for a conditional license pursuant to
this part.
(5) Qualifications for licensees.
(b) The office, in consultation with the Division of Labor
Standards Enforcement, shall adopt regulations establishing worker
safety standards for entities licensed pursuant to this part.
(c) The office shall not issue a conditional
license unless the applicant has met all of the requirements of this
part, including the requirements of subdivision (d)
(h) of Section 18110, and has demonstrated
compliance with all applicable agricultural requirements, consumer
protection requirements, food and product safety requirements, and
environmental requirements, including, but not limited to, applicable
water quality standards.
18104.5. (a) On or before April 1, 2016, the office shall convene
an advisory committee to advise the office on the development of
standards and regulations pursuant to this chapter. The advisory
committee shall recommend to the office the appropriate roles of each
state entity as it pertains to this chapter, and shall recommend
guidelines on communication and information sharing between state
entities, and with local agencies, for implementation of this
chapter.
(b) The advisory committee shall be comprised of gubernatorial and
legislative appointees, including, but not limited to,
representatives of the medical marijuana industry,
representatives of medical marijuana cultivators, appropriate
local and state agencies, appropriate local and state law
enforcement, physicians, environmental and public health experts, and
medical marijuana patient advocates.
(c) (1) The advisory committee shall submit a report on these
standards, determinations, and guidelines for implementation of this
chapter to the Legislature and state entities affected by this
chapter by August 1, 2016.
(2) The report submitted to the Legislature shall be submitted in
compliance with Section 9795 of the Government Code.
(3) The requirement for submitting a report imposed pursuant to
this subdivision is inoperative on January 1, 2020, pursuant to
Section 10231.5 of the Government Code.
18105. (a) The chief shall keep a complete record of all
facilities issued a conditional license.
(b) This record shall be made available on the office's Internet
Web site.
(c) The office shall not disclose information that the office
determines is sensitive and should not be publicly disclosed,
including, but not limited to, the address or location of cultivation
sites.
(d) Upon request, the office shall provide summary information on
all licensees, including, but not limited to, the name of the
licensee, the date the license was issued, the status of the license,
and the licensee's mailing address.
18106. The office shall establish procedures to provide state and
local law enforcement and state and local agencies, upon their
request, with 24-hour access to information to verify a
conditional license, track transportation manifests, and
track the inventories of facilities issued a conditional
license.
18107. This part shall in no way supersede the provisions of
Measure D, approved by the voters of the City of Los Angeles on the
May 21, 2013, ballot for the city, or any similar measure in other
jurisdictions, which grants medical marijuana businesses and
dispensaries qualified immunity consistent with the terms of the
measure and local ordinances. Immunity granted by Measure D shall be
sufficient to comply with the requirement of local approval for
licensure pursuant to Section 18110.
18107. Notwithstanding Section 18119, a licensed transporter may
transport medical marijuana products to an unlicensed dispensing
facility within the City of Los Angeles, provided the following
requirements are met:
(a) The licensed transporter shall comply with subdivisions (b)
and (c) of Section 18117, except that, in complying with paragraph
(2) of subdivision (b), the licensed transporter shall securely
transmit the manifest to the office and the unlicensed dispensing
facility that will receive the medical marijuana products.
(b) The licensed transporter shall record and maintain, in both
physical and electronic format, the following information with
respect to the delivery of medical marijuana products to the
unlicensed dispensing facility:
(1) The date of delivery.
(2) The address of delivery.
(3) The name of the individual who completed the delivery.
(4) The name of the individual at the facility who received the
delivery.
(5) The name of the owner or operator of the facility.
(6) The name of the facility, as reflected on any signage.
(7) The quantity, or weight, and variety of all medical marijuana
products delivered.
(8) The source of all medical marijuana delivered.
(9) The monetary amount charged and received for all medical
marijuana products delivered.
(c) The recorded information specified in subdivision (b) shall be
transmitted within five days to the City of Los Angeles, in a manner
to be determined and specified by the City of Los Angeles.
(d) The records required by this section shall be maintained and
made available in accordance with the regulations promulgated by the
office pursuant to Section 18140.
18107.1. (a) The office shall develop a database containing the
electronic shipping manifests, which shall include, but not be
limited to, the following information:
(1) The quantity, or weight, and variety of products shipped.
(2) The estimated times of departure and arrival.
(3) The quantity, or weight, and variety of products received.
(4) The actual time of arrival.
(5) A categorization of the product.
(b) The database shall be designed to flag irregularities for the
office to investigate. An authorized enforcement authority may, at
any time, inspect shipments and request documentation for current
inventory.
18107.2. (a) This part shall not be construed to authorize or
permit a licensee to transport or deliver, or cause to be transported
or delivered, marijuana or marijuana products outside the state,
unless authorized by
federal law.
(b) A local jurisdiction shall not prevent transportation of
medical marijuana or medical marijuana products on public roads by a
licensee transporting medical marijuana or medical marijuana products
that acts in compliance with this part.
(c) A local jurisdiction shall not prevent delivery of medical
marijuana or medical marijuana products on public roads by a licensee
that acts in compliance with this part and applicable local
ordinances.
CHAPTER 2. CONDITIONAL LICENSES
18108. The following persons are exempt from the requirement of
licensure under this part:
(a) A patient who cultivates, possesses, stores, manufactures, or
transports marijuana exclusively for his or her personal medical use
and who does not sell, distribute, donate, or provide marijuana to
any other person or entity.
(b) A primary caregiver who cultivates, possesses, stores,
manufactures, transports, or provides marijuana exclusively for the
personal medical purposes to no more than five specified qualified
patients for whom he or she is the primary caregiver within the
meaning of Section 11362.7 of the Health and Safety Code and who does
not receive remuneration for these activities, except for
compensation in full compliance with subdivision (c) of Section
11362.765 of the Health and Safety Code. Nothing in this section
shall permit primary caregivers to organize themselves as
cooperatives or collectives of caregivers.
(a) A qualified patient who cultivates, possesses, stores,
manufactures, or transports marijuana exclusively for his or her
personal medical use but who does not provide, donate, sell, or
distribute marijuana to any other person or entity is not, thereby,
engaged in commercial marijuana activity and is, therefore, exempt
from the licensure requirements of this part.
(b) A primary caregiver who cultivates, possesses, stores,
manufactures, transports, donates, or provides marijuana exclusively
for the personal medical purposes of no more than five specified
qualified patients for whom he or she is the primary caregiver within
the meaning of Section 11362.7 of the Health and Safety Code, but
who does not receive remuneration for these activities except for
compensation in full compliance with subdivision (c) of Section
11362.765 of the Health and Safety Code is not engaged in commercial
marijuana activity and is, therefore, exempt from the licensure
requirements of this part.
18109. (a) Except as provided in Section 11362.5 of, and Article
2.5 (commencing with Section 11362.7) of Chapter 6 of Division 10 of,
the Health and Safety Code, a person shall not sell or provide
medical marijuana to a patient or caregiver other than at a licensed
dispensing facility or through delivery from a licensed dispensing
facility.
(b) Except as provided in Section 11362.5 of, and Article 2.5
(commencing with Section 11362.7) of Chapter 6 of Division 10 of, the
Health and Safety Code, a person shall not grow medical marijuana
other than at a licensed cultivation site.
(c) Except as provided in Section 11362.5 of, and Article 2.5
(commencing with Section 11362.7) of Chapter 6 of Division 10 of, the
Health and Safety Code, a person shall not manufacture medical
marijuana or medical marijuana products other than a licensed
manufacturer.
(d) A person other than a licensed transporter shall not transport
medical marijuana from one facility issued a conditional
license to another.
(e) A licensed manufacturer may obtain medical marijuana from a
licensed cultivator and may furnish medical marijuana products to a
licensed dispensary.
18110. (a) Beginning no later than July 1, 2018, the office shall
provide for and shall issue conditional licenses. Conditional
licenses shall be required for all activity authorized under this
chapter, including, but not limited to, cultivation, processing,
storage, transportation, and dispensing of medical marijuana.
(b) The issuance of a conditional license shall not, in and of
itself, authorize the recipient to begin business operations. The
conditional license shall certify, at a minimum, that the applicant
has paid the state conditional licensing fee, successfully passed a
criminal background check, and met the state residency requirements.
(c) A conditionally licensed facility shall not commence activity
under the authority of a conditional license until the applicant has
also obtained a license or permit from the local jurisdiction in
which he or she proposes to operate, following the requirements of
local ordinances.
18110. (a) The office may issue state licenses
only to qualified applicants engaging in commercial marijuana
activity pursuant to this chapter. Upon the date of implementation of
regulations by the office, no person shall engage in commercial
marijuana activity without possessing both a state license and a
local permit, license, or other authorization.
(b) Local permits shall be determined by local ordinances. The
office issuing state licenses shall have sole authority to revoke a
state license. Local agencies issuing local permits shall have sole
authority to revoke a local permit.
(c) Each applicant for a state license shall provide notice to
every affected local jurisdiction at the same time the state
application is filed. The office shall confirm with the applicant a
list of affected local jurisdictions, including those jurisdictions
affected by potential deliveries by the applicant.
(d) The issuance of a state license shall not, in and of itself,
authorize the recipient to begin business operations. The state
license shall certify, at a minimum, that the applicant has paid the
state licensing fee, successfully passed a criminal background check,
and is a resident of the state of California.
(e) Even if a state license has been granted pursuant to this
chapter, a facility shall not operate in a local jurisdiction that
prohibits the establishment of that type of business. A facility
shall not commence activity under the authority of a state license
until the applicant has obtained, in addition to the state license, a
license or permit from the local jurisdiction in which he or she
proposes to operate, following the requirements of the applicable
local ordinances.
(f) If a local government agency notifies the office and provides
evidence that a licensee or applicant within its jurisdiction is in
violation of local ordinances relating to commercial marijuana
activities, the office shall schedule a hearing within 20 days to
determine whether the evidence is sufficient to constitute grounds
for the revocation of the state license.
(g) Revocation of a state license or local license or permit shall
terminate the ability of a medical marijuana business to operate
within California until the office or local jurisdiction reinstates
or reissues the state license or local license or permit.
(d)
(h) An applicant for a conditional
license shall do all of the following:
(1) Pay the fee or fees required by this part for each license
being applied for.
(2) Register with the office on forms prescribed by the chief. The
forms shall contain sufficient information to identify the licensee,
including all of the following:
(A) Name of the owner or owners of a proposed facility, including
all persons or entities having an ownership interest other than a
security interest, lien, or encumbrance on property that will be used
by the applicant.
(B) The name, address, and date of birth of each principal officer
and board member.
(C) The address and telephone number of the proposed facility.
(D) In the case of a cultivation site, the GPS coordinates of the
site.
(3) Describe, in writing, the scope of business of the proposed
facility.
(4) Provide evidence that the applicant and owner have
been legal full-time residents of the state for not less than 12
months. their primary residence in California.
(5) Provide detailed operating procedures, in writing, for the
proposed facility, which shall include, but not be limited to,
procedures for facility and operational security, prevention of
diversion, employee screening, storage of medical marijuana,
personnel policies, and recordkeeping procedures.
(6) Provide evidence that the applicant has received all required
environmental permits, including compliance with the California
Environmental Quality Act, and wastewater discharge permits.
(7) 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.
(7)
(8) Provide the applicant's fingerprint images. For
purposes of this paragraph, "applicant" means the owner or owners of
a proposed facility, including all persons or entities having an
ownership interest other than a security interest, lien, or
encumbrance on property that will be used by the facility.
(A) The applicant shall 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.
(B) The Department of Justice shall provide a response to the
office pursuant to paragraph (1) of subdivision (p) of Section 11105
of the Penal Code.
(C) The office shall request from the Department of Justice
subsequent notification service, as provided pursuant to Section
11105.2 of the Penal Code, for persons described in subparagraph (A).
(D) The Department of Justice shall charge the applicant a fee
sufficient to cover the reasonable cost of processing the requests
described in this paragraph.
(8)
(9) Provide a statement, signed by the applicant under
penalty of perjury, that the information provided is true.
(9)
(10) Provide any other information required by the
office.
(e)
(i) Each location and each discrete use of a single
location shall require a conditional license. Each
application for a conditional license is separate
and distinct, and the office may charge a separate fee for each.
(f)
(j) A conditional license issued
pursuant to this section shall be valid for 12 months after the date
of issuance. After the initial 12-month period, a
conditional license may be renewed for a period of
24 12 months. The office shall establish
procedures for the renewal of a conditional
license.
(g)
(k) Notwithstanding any other law, the office shall not
issue a conditional license to an individual or
entity, or for a premise, against whom there is a pending state or
local administrative or judicial proceeding, against whom there
is an action initiated by a city, county, or city and county
under a local ordinance, or who has been determined to have violated
an applicable local ordinance. are pending
state or local administrative actions, judicial proceedings, or
other actions initiated against the applicant, by a city, county, or
city and county under an applicable local ordinance, or who has been
determined through those proceedings to have violated a local
ordinance related to commercial marijuana activity.
(h)
(l) A facility or entity that is operating in
compliance with local zoning ordinances and other state and local
requirements on January 1, 2016, may continue its operations until
its application for conditional licensure is
approved or denied pursuant to this part.
(m) A licensee shall not be licensed as a retailer of alcoholic
beverages pursuant to Division 9 (commencing with Section 23000).
18111. (a) Upon receipt of the application materials and
fee required in Section 18110, the office, provided the applicant
has not committed an act or crime constituting grounds for the denial
of licensure under Section 18112, may issue the conditional license
and send a proof of issuance to the applicant. for
licensure and the applicable fee, the office shall make a thorough
investigation to determine whether the applicant and the premises for
which a state license is applied qualify for the state license and
whether this chapter has been complied with, and shall investigate
all relevant matters that may affect the public welfare and morals.
(b) The office shall deny an application if either the applicant
or the premises for which a state license is applied do not qualify
for licensure under this part.
(c) The office shall deny the application for licensure or
renewal, or suspend or revoke a state license, if any of the
following conditions apply:
(1) Conduct involving dishonesty, fraud, or deceit, with the
intent to substantially benefit himself, herself, or another, or
substantially injure another.
(2) Failure to comply with the provisions of this part or any rule
or regulation adopted pursuant to this part.
(3) Conduct that constitutes grounds for denial of licensure
pursuant to Chapter 2 (commencing with Section 480) of Division 1.5.
(4) Local agencies have notified the office and provided evidence
that a licensee or applicant within its jurisdiction is in violation
of local ordinances relating to commercial marijuana activities.
(5) The applicant fails to meet the requirements of this part or
any regulation adopted pursuant to this part or any applicable city,
county, or city and county ordinance or regulation. If a local
government adopts an ordinance or resolution authorizing medical
marijuana to be cultivated, manufactured, stored, distributed, or
sold within its jurisdiction, it may submit documentation to the
office detailing its renewal requirements. Failure to submit an
ordinance or resolution to the office shall not impair the
enforceability of the ordinance or resolution. Ordinances or
resolutions that are not submitted pursuant to this subdivision shall
not be considered in denial of licensure pursuant to this part.
(6) Granting or continuation of a state license would be contrary
to the public's safety.
(7) The applicant holding or seeking a state license has been
convicted of a misdemeanor involving moral turpitude, excluding
misdemeanors involving possession of a controlled substance.
(8) The application has failed to state with sufficient
specificity the jurisdiction and location at which the applicant
proposes to establish operations.
(9) The applicant, or any of its officers, directors, or owners,
is under 21 years of age.
(10) The applicant fails to provide notarized written proof that
the owner of real property or landlord has acknowledged and consented
to its tenant's proposed cultivation or dispensing of medical
marijuana or medical marijuana products.
(11) The applicant has failed to provide information requested.
(12) Unless otherwise provided by this paragraph, the applicant or
any of its officers, directors, or owners, have been convicted of a
crime or act that is substantially related to the qualifications,
functions, or duties of the business or profession for which the
application is made or is convicted of a misdemeanor involving moral
turpitude, excluding misdemeanors involving possession of a
controlled substance. For purposes of this section, a conviction
means a plea or verdict of guilty or a conviction following a plea of
nolo contendere. An action that the office is permitted to take
following the establishment of a conviction, including, but not
limited to, the issuance, renewal, suspension, and revocation of a
license for commercial marijuana activity pursuant to this part,
shall be held in abeyance until after the time for appeal has
elapsed, or the judgment of conviction has been affirmed on appeal.
Action may be taken when an order granting probation is made
suspending the imposition of sentence.
(A) An applicant shall not be denied a state license if the denial
is based solely on any of the following:
(i) The applicant has been convicted of transporting a controlled
substance pursuant to Section 11352 or 11379 of the Health and Safety
Code prior to January 1, 2014, and the facts underlying the
conviction establish that the applicant did not transport the
controlled substance with the intent to sell or the intent to aid and
abet the commission of, or conspiracy to commit, a crime of
transportation of the controlled substance.
(ii) The applicant has been convicted of a felony that would not
be subject to criminal prosecution pursuant to Section 11362.5 or
11362.775 of the Health and Safety Code.
(B) An applicant shall not be denied a state license under either
of the following conditions:
(i) The applicant has obtained a certificate of rehabilitation
pursuant to Chapter 3.5 (commencing with Section 4852.01) of Title 6
of Part 3 of the Penal Code, for a crime or act that is substantially
related to the qualifications, functions, or duties of the business
or profession for which the application is made.
(ii) The applicant has been convicted of a misdemeanor, and he or
she has met all of the applicable requirements of the criteria for
rehabilitation developed by the office to evaluate the rehabilitation
of a person when considering the denial of license.
(C) In determining convictions that are substantially related to
the qualifications, functions, or duties of the business or
profession for which the application is made, the office shall
include, but not be limited to, the following:
(i) A felony conviction for the possession for sale, sale,
manufacture, transportation, or cultivation of a controlled
substance.
(ii) A violent felony, as specified in subdivision (c) of Section
667.5 of the Penal Code.
(iii) A serious felony as specified in subdivision (c) of Section
1192.7 of the Penal Code.
(iv) A felony offense involving fraud, deceit, or embezzlement.
(13) The applicant, or any of its officers, directors, or owners,
is a licensed physician making patient recommendations for medical
marijuana.
(14) The applicant or any of its officers, directors, or owners
has been subject to fines or penalties for cultivation or production
of a controlled substance on public or private lands pursuant to
Section 12025 of the Fish and Game Code.
(15) The applicant, or any of its officers, directors, or owners,
have been sanctioned by the office, or a city, county, or a city and
county for unlicensed commercial medical marijuana activities or has
had a license revoked under this part in the previous three years.
(16) The proposed commercial marijuana activity will violate any
applicable local law or ordinance.
(17) The applicant has had 20 employees or more in the past year
and failed to enter into a labor peace agreement.
(18) The applicant or the owner is unable to show that he or she
has established domicile within the state.
(19) Failure to obtain and maintain a valid seller's permit
required pursuant to Part 1 (commencing with Section 6001) of the
Revenue and Taxation Code.
(20) There are pending state or local administrative actions,
judicial proceedings, or other actions initiated against the
applicant, by a city, county, or city and county under an applicable
local ordinance, or who has been determined through those proceedings
to have violated a local ordinance related to commercial marijuana
activity, or who knowingly provides false or fraudulent information
on an application for licensure.
(d) Notwithstanding any other section of this part, the office may
grant a license to an applicant who has been convicted of a crime if
the office determines that the applicant is otherwise suitable to be
issued a state license and granting a license would not compromise
public safety. The office shall conduct a thorough investigation of
the nature of the crime, conviction, circumstances, and evidence of
rehabilitation of the applicant, and shall evaluate the suitability
of the applicant to be issued a state license based on the evidence
found through the investigation. In the evaluation, public protection
shall take priority over rehabilitation and, where evidence of
rehabilitation and public protection are in conflict, public
protection shall take precedence.
(e) Applicants shall be notified of a denied application, and
licensees of a suspended or revoked license shall be notified, in
writing via personal service or mail addressed to the address of the
applicant or licensee set forth in the application. The letter shall
contain the detailed reasons for which the application was denied,
the license was revoked, or the license was suspended. The applicant
or licensee shall have the right to appeal the denial, suspension, or
revocation and shall be given a hearing within 30 days of the
appeal. On appeal, the decision shall be upheld unless the applicant
or licensee demonstrates that he or she is in fact eligible for
licensure and the application or licensee is in compliance with this
part.
(b)
(f) The chief shall, by regulation, prescribe
conditions upon which a person whose conditional
license has previously been denied, suspended, or revoked, may be
issued a conditional license.
(g) All proceedings to deny, suspend, or revoke a license shall be
conducted pursuant to Chapter 5 (commencing with Section 11500) of
Part 1 of Division 3 of Title 2 of the Government Code.
18112. (a) An application for a conditional license shall be
denied and a conditional license shall be suspended or revoked for a
past felony conviction for the possession for sale, sale,
manufacture, transportation, or cultivation of a controlled
substance, a felony criminal conviction for drug trafficking, a
felony conviction for embezzlement, a felony conviction involving
fraud or deceit, or any violent or serious felony conviction pursuant
to subdivision (c) of Section 667.5 of, or subdivision (c) of
Section 1192.7 of, the Penal Code. A conditional license shall not be
denied solely on the basis of a prior conviction for a felony that
was committed after the enactment of the Compassionate Use Act of
1996, but which would not be a felony after the enactment of the
measure that added this part. The office, at its discretion, may
issue a license to an applicant that would be otherwise denied
pursuant to this subdivision, with the exception of the requirement
of having been issued a conditional license, if the applicant has
obtained a certificate of rehabilitation, pursuant to Section 4852.13
of the Penal Code.
(b) The chief, upon his or her determination, may deny, suspend,
or revoke a conditional license when a conditional licensee,
applicant, or employee, partner, officer, or member of an entity
conditionally licensed does any of the following:
(1) Making or authorizing in any manner or by any means a written
or oral statement that is untrue or misleading and that is known, or
that by exercise of reasonable care should be known, to be untrue or
misleading.
(2) Any other conduct that constitutes fraud.
(3) Conduct constituting gross negligence.
(4) Failure to comply with the provisions of this part, Article 8
(commencing with Section 111658) of Chapter 6 of Part 5 of Division
104 of the Health and Safety Code, or any rule or regulation adopted
pursuant to this part.
(5) Conduct that constitutes grounds for denial of licensure
pursuant to Chapter 2 (commencing with Section 480) of Division 1.5.
18113. (a)
Upon denying, suspending, or revoking a conditional license, the
chief shall notify the applicant or licensee, in writing, by personal
service or mail addressed to the address of the applicant or
licensee set forth in the application. The applicant or licensee
shall be given a hearing within 30 days thereafter if he or she files
with the office a written request for hearing. Otherwise, the
denial, suspension, or revocation is deemed affirmed.
(b) All proceedings to deny, suspend, or revoke a conditional
license shall be conducted pursuant to Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the Government
Code.
18114. An application for or renewal of a conditional license
shall not be approved if the office determines any of the following:
(a) The applicant fails to meet the requirements of this part or
has had an applicable permit or license revoked or denied by an
applicable city, county, or city and county agency. If a local
government adopts an ordinance or resolution authorizing medical
marijuana to be cultivated, manufactured, stored, distributed, or
sold within its jurisdiction, it shall submit to the office
documentation detailing their renewal requirements.
(b) The applicant, or any of its officers, directors, owners,
members, or shareholders, is a minor.
(c) The applicant has knowingly answered a question or request for
information falsely on the application form or failed to provide
information requested.
(d) The applicant, or any of its officers, directors, owners,
members, or shareholders has been sanctioned by the office, a city,
county, or city and county, for medical marijuana activities
conducted in violation of this part or any applicable local ordinance
or has had a license revoked in the previous five years.
(e) The proposed cultivation, processing, possession, storage,
manufacturing, testing, transporting, distribution, provision, or
sale of medical marijuana will violate any applicable local law or
ordinance.
(f) The applicant or the owner is unable to establish that he or
she has been a resident of the state for not less than 12 months.
18115. 18112. (a) In addition to
the provisions of this part, a conditional license
shall be subject to the restrictions of the local jurisdiction in
which the facility operates or proposes to operate. Even if a
conditional license has been granted pursuant to
this part, a facility shall not operate in a local jurisdiction that
prohibits the establishment of that type of business.
(b) In addition to the provisions of this part, local
jurisdictions retain the power to assess fees and taxes, as
applicable, on facilities that are conditionally
licensed pursuant to this part and the business activities of those
licensees.
18116. 18113. The office may adopt
regulations to limit the number of conditional
licenses issued pursuant to this part upon a finding that the
otherwise unrestricted issuance of conditional
licenses is dangerous to the public health and safety.
CHAPTER 3. FEES
18117. 18114. (a) The
conditional licensing fee shall be established by the
office at a level sufficient to fund the reasonable costs of all of
the following:
(1) Administrative costs incurred by the office in overseeing the
conditional licensing program and establishing
health and safety standards.
(2) Costs incurred by the office or the Department of Justice for
enforcement of the provisions of this part.
(3) Costs incurred by law enforcement and other public safety
entities for enforcing the provisions of this part in their
jurisdiction.
(b) In addition to the conditional licensing
fee required pursuant to subdivision (a), a cultivation facility
shall be assessed a fee in a sufficient amount to cover the
reasonable regulatory costs of enforcing the environmental impact
provisions relating to those cultivation facilities. This fee shall
be distributed, as necessary and in proportion to its regulatory
function, between the following agencies responsible for enforcing
the regulations relating to the environmental impact of licensed
cultivation sites:
(1) The State Water Resources Control Board.
(2) The Department of Fish and Wildlife.
(3) The Department of Forestry and Fire Protection.
(4) The Department of Pesticide Regulation.
(5) The Department of Food and Agriculture.
(6) Local law enforcement.
18118. 18115. (a) The Medical
Marijuana Regulation Fund is hereby established within the State
Treasury. Notwithstanding Section 16305.7 of the Government Code, the
fund shall include any interest and dividends earned on the money in
the fund.
(b) Except as provided in subdivision (c), all fees collected
pursuant to this part shall be deposited into the Medical Marijuana
Regulation Fund. All moneys within the fund are available, upon
appropriation by the Legislature, to the office solely for the
purposes of fully funding and administering this part, including, but
not limited to, the costs incurred by the office for its
administrative expenses.
(c) The Special Account for Environmental Enforcement is hereby
established as an account within the Medical Marijuana Regulation
Fund. Notwithstanding Section 16305.7 of the Government Code, the
account shall include any interest and dividends earned on the money
in the account. All fees collected pursuant to subdivision (b) of
Section 18117 18114 shall be deposited
in this account. All moneys within the fund are available, upon
appropriation by the Legislature, to the office for distribution to
the entities listed in subdivision (b) of Section 18117
18114 to be used to enforce the environmental
regulation of licensed cultivation sites.
(d) All moneys collected as a result of penalties imposed under
this part shall be deposited directly into the General Fund, to be
available upon appropriation.
(e) The office may establish and administer a grant program to
allocate moneys from the Medical Marijuana Regulation Fund to state
and local entities for the purpose of assisting with medical
marijuana regulation and the enforcement of this part.
18119. 18116. (a) A facility issued
a conditional license shall not acquire,
cultivate, process, possess, store, manufacture, distribute, sell,
deliver, transfer, transport, or dispense medical marijuana for any
purpose other than those authorized by Article 2.5 (commencing with
Section 11362.7) of Chapter 6 of Division 10 of the Health and Safety
Code.
(b) A licensed dispensing facility shall not acquire, cultivate,
process, possess, store, manufacture, distribute, sell, deliver,
transfer, transport, or dispense medical marijuana plants or medical
marijuana products except through a licensed cultivation site or a
licensed manufacturer.
CHAPTER 4. TRANSPORTATION OF MEDICAL MARIJUANA
18120. (a) A licensed transporter shall ship only to facilities
issued a conditional license and only in response to a request for a
specific quantity and variety from those facilities.
(b) Prior to transporting medical marijuana or medical marijuana
products, a licensed transporter shall do both of the following:
(1) Complete a shipping manifest using a form prescribed by the
office.
(2) Securely transmit a copy of the manifest to the licensee that
will receive the medical marijuana or medical marijuana product, and
to the office, prior to transport.
(c) The licensed transporter making the shipment and the licensee
receiving the shipment shall maintain each shipping manifest and make
it available to local code enforcement officers, any other locally
designated enforcement entity, and the office upon request.
18121. (a) Transported medical marijuana and medical marijuana
products shall:
(1) Be transported only in a locked, safe, and secure storage
compartment that is securely affixed to the interior of the
transporting vehicle.
(2) Not be visible from outside the vehicle.
(b) A vehicle transporting medical marijuana or medical marijuana
products shall not have external markings or other indications that
it is transporting medical marijuana.
(c) A vehicle transporting medical marijuana products shall travel
directly from one licensed facility to another licensed facility
authorized to receive the shipment.
(d) The provisions of this section only apply to a licensed
transporter.
18122. (a) All transport vehicles carrying medical marijuana with
a retail value greater than ten thousand dollars ($10,000) shall be
staffed with a minimum of two employees. At least one transport team
member shall remain with the vehicle at all times when the vehicle
contains medical marijuana.
(b) Each transport team member shall have access to a secure form
of communication by which each member can communicate with personnel
at the licensed facility at all times when the vehicle contains
medical marijuana.
(c) Each transport team member shall possess documentation of
licensing and a government-issued identification card at all times
when transporting or delivering medical marijuana and shall produce
it to any representative of the office or law enforcement upon
request.
(d) This part shall not be construed to authorize or permit a
licensee to transport, or cause to be transported, medical marijuana
or medical marijuana products outside the state.
(e) The requirements of this section shall only apply to a
licensed transporter.
18123. A local jurisdiction shall not prevent transportation
through or to a facility issued a conditional license, by a
conditionally licensed transporter who acts in compliance with this
part.
18117. (a) A licensee authorized to transport, or transport and
deliver, medical marijuana and medical marijuana products shall do so
only as set forth in this chapter.
(b) Prior to transporting or delivering medical marijuana or
medical marijuana products, a licensee authorized to transport or
deliver medical marijuana or medical marijuana products shall do both
of the following:
(1) Complete an electronic shipping manifest as prescribed by the
office. All delivery shipping manifests shall not identify the
qualified patient or primary caregiver by name or address.
(2) Securely transmit the manifest to the office and the licensee
that will receive the medical marijuana product, as applicable, prior
to transport.
(c) During transportation or delivery, the licensed transporter
shall maintain a physical copy of the shipping manifest and shall
make it available upon request to office, local law enforcement
officers, or any other designated enforcement agency.
(d) The licensee receiving the shipment shall maintain each
electronic shipping manifest and shall make it available upon request
to agents of the office, local law enforcement officers, or any
other locally designated enforcement agency.
(e) Upon receipt of the transported shipment, a licensee shall
submit to the office a record verifying receipt of the shipment and
the details of the shipment.
(f) Notwithstanding any other law or the wage orders of the
Industrial Welfare Commission, a driver employed to transport medical
marijuana or medical marijuana products shall be entitled to
overtime pay pursuant to Section 510 of the Labor Code.
18118. An entity licensed pursuant to Sections 18109 to 18113,
inclusive, may transport between licensees medical marijuana or
medical marijuana products with a total retail value, weight of
medical marijuana, and weight of medical marijuana products, below
the statewide threshold, which shall be adopted by regulation by the
office after review by the advisory committee and the office.
18119. (a) Transported and delivered medical marijuana or medical
marijuana products shall be transported only in a storage
compartment that is securely affixed to the interior of the
transporting vehicle and that is not visible from outside the
vehicle. This requirement shall only apply to licensees transporting
medical marijuana or medical marijuana products with a total retail
value of at least an amount equal to a statewide monetary threshold,
which shall be adopted by regulation by the office after review by
the advisory committee and the office.
(b) A vehicle transporting medical marijuana or medical marijuana
products shall travel only directly between licensed facilities
authorized to receive the shipment, unless otherwise authorized under
its license. All transport and deliveries shall be conducted between
8:00 a.m. and 8:00 p.m. Transportation and delivery of shipments do
not have to be completed in a single day.
(c) All transport or delivery vehicles shall be staffed with a
minimum of two direct employees of the licensee. At least one
employee shall remain with the vehicle at all times when the vehicle
contains medical marijuana. This requirement shall only apply to
licensees transporting medical marijuana or medical marijuana
products with a total retail value of at least an amount equal to a
statewide monetary threshold, which shall be adopted by regulation by
the office after review by the advisory committee and the office.
(d) Each transport or delivery team member shall possess
documentation of licensing and a government-issued identification
card at all times when transporting or delivering medical marijuana
and shall produce it upon the request of agents of the office or a
law enforcement official.
(e) This section shall be enforced by the Department of the
California Highway Patrol in collaboration with local agencies.
CHAPTER 5. ENFORCEMENT
18124. A state agency The office is
not required by this section to enforce a city, county, city and
county, or local law, ordinance, rule, or regulation regarding the
site or operation of a facility issued a conditional
license.
18125. The office may assist state taxation authorities in the
development of uniform policies for the state taxation of licensees.
18126. (a) The office may enforce all of the requirements of this
part, including any regulations adopted pursuant to this part.
(b) The office shall delegate the authority to enforce the
requirements of this part, including any regulations, to a city,
county, or city and county, upon request of that entity.
(c) Nothing in this part shall be interpreted to supersede or
limit existing local authority for law enforcement activity,
enforcement of local zoning requirements, or enforcement of local
licensing requirements.
(d) Nothing in this part shall be interpreted to require the
office to undertake local law enforcement responsibilities, enforce
local zoning requirements, or enforce local licensing requirements.
18127. (a) A willful violation of Section 18110, including an
attempt to falsify information on an application or to otherwise
defraud or mislead a state or local agency in the course of the
application process, shall be punishable by a civil fine of up to
thirty-five thousand dollars ($35,000) for each individual violation.
(b) A technical violation of Section 18110 shall, at the office's
discretion, be punishable by a civil fine of up to ten thousand
dollars ($10,000) for each individual violation.
18128. A district attorney, county counsel, city attorney, city
prosecutor, the Attorney General, or the office may bring an action
to enjoin a violation or the threatened violation of any provision of
this part, including, but not limited to, a licensee's failure to
correct objectionable conditions following notice or as a result of a
rule promulgated pursuant to this part. The action shall be brought
in the county in which the violation occurred or is threatened to
occur. A proceeding brought pursuant to this part shall conform to
the requirements of Chapter 3 (commencing with Section 525) of Title
7 of Part 2 of the Code of Civil Procedure. Nothing in this section
shall diminish the authority of a local government to take requisite
enforcement actions pertaining to its own ordinances or regulations.
18129. Nothing in this part shall prevent a city or other local
governing body from taking action as specified in Section 11362.83 of
the Health and Safety Code.
18130. This part shall not be construed to limit a law
enforcement agency's ability to investigate unlawful activity in
relation to a facility issued a conditional license.
CHAPTER 6. TIERED LICENSING AND
VERTICAL INTEGRATION
18131. (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, and 2B licensees, or a combination
thereof, may apply for a Type 6 or 7 state license, or a combination
thereof.
(2) Type 6 and 7 licensees, or a combination thereof, may apply
for a Type 1, 1A, 1B, 2, 2A, and 2B state license, or a combination
thereof.
(3) Type 6 and 7 licensees, or a combination thereof, may apply
for a Type 10A state license.
(4) Type 10A licensees may apply for a Type 6 and 7 state license,
or a combination thereof.
(5) Type 1, 1A, 1B, 2, 2A, and 2B licensees, or a combination
thereof, may apply for a Type 10A state license.
(6) Type 10A licensees, may apply for Type 1, 1A, 1B, 2, 2A, and
2B state license, or a combination thereof.
(7) Type 11 licensees may apply for a Type 12 state license.
(8) Type 12 licensees may apply for a Type 11 state license.
(b) State licenses to be issued by the office are as follows:
(1) Type 1, or "specialty outdoor," for outdoor cultivation using
no artificial lighting of 5,000 square feet or less 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 5,000 square feet or less 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 office, than 5,000 square
feet or less 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 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
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 office, between 5,001 and
10,000 square feet of total canopy size on one premises.
(7) Type 3, or "outdoor," for outdoor cultivation using no
artificial lighting between 10,001 and 44,000 square feet of total
canopy size on one premises. The office 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 of total
canopy size on one premises. The office 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 office, between 10,001 and 22,000
square feet of total canopy size on one premises. The office shall
limit the number of licenses allowed of this type.
(10) Type 4, or "nursery," for cultivation of medical marijuana
solely as a nursery. Type 4 licensees may transport live plants.
(c) The office shall promulgate regulations governing the
licensing of marijuana manufacturers.
(d) Licenses to be issued by the office to marijuana manufacturers
are as follows:
(1) Type 6, or "manufacturing level 1," for manufacturing sites
that produce medical marijuana products using nonvolatile solvents.
(2) Type 7, or "manufacturing level 2," for manufacturing sites
that produce medical marijuana products using volatile solvents. The
office shall limit the number of licenses of this type.
(3) Type 8, or "testing," for testing of medical marijuana and
medical marijuana products. Type 8 licensees shall have their
facilities certified licensed according to regulations set forth by
the office. A Type 8 licensee shall not hold a license in another
license category of this part and shall not own or have ownership
interest in a facility licensed pursuant to this part.
(e) State licenses to be issued by the office for dispensing and
distributing are as follows:
(1) Type 10, or "dispensary," for the retail of medical marijuana
and medical marijuana products. This license shall allow for delivery
where expressly authorized by local ordinance.
(2) Type 10A or "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.
(3) Type 11, or "distributor," for the certification of the
content of all medical marijuana or medical marijuana products and
distribution licensees. A Type 11 licensee shall hold a Type 12, or
transporter, license and register each facility location where
product is stored for the purposes of distribution. A Type 11
licensee shall not hold a license in a cultivation, manufacturing,
dispensing, or testing license category and shall not own, or have an
ownership interest in, a facility licensed in those categories other
than a security interest, lien, or encumbrance on property that is
used by a licensee. A Type 11 licensee shall be bonded and insured at
a minimum level established by the office.
(4) Type 12, or "transport," for transporters of medical marijuana
or medical marijuana products. A Type 12 licensee shall be bonded
and insured at a minimum level established by the office.
CHAPTER 6. 7. CULTIVATION SITES
18133. (a) No later than January 1, 2022, all medical marijuana
grown, produced, distributed, and sold in the state shall meet
standards equivalent to those for certified organic crops.
Certification shall be by the office or an independent third party
that contracts with the office for the purpose of certifying medical
marijuana as organic.
(b) The office shall establish appellations of origin for
marijuana grown in California.
18132. (a) Not later than January 1, 2020, the Department of Food
and Agriculture, in conjunction with the office, shall make
available a certified organic designation and organic certification
program for medical marijuana, if permitted under federal law.
(b) If the certified organic designation and organic certification
program is not available to medical marijuana by January 1, 2020,
the Department of Food and Agriculture, in conjunction with the
office, shall develop an equivalent program with standards for
designation and certification for medical marijuana by January 1,
2022.
(c) The office shall establish appellations of origin for
marijuana grown in California.
(d) It is unlawful for medical marijuana to be marketed, labeled,
or sold as grown in a California county when the medical marijuana
was not grown in that county.
(e) It is unlawful to use the name of a California county in the
labeling, marketing, or packaging of medical marijuana products
unless the product was grown in that county.
18134. 18133. The office shall work
with county agricultural commissioners to provide all the
information and forms required for conditional
licensure as a cultivation site in a single location, including state
licensure, local requirements in that jurisdiction, and
environmental requirements.
CHAPTER 7. 8. REGULATION OF
MEDICAL MARIJUANA
18134. This part and Article 2 (commencing with Section 11357)
and Article 2.5 (commencing with Section 11362.7) of Chapter 6 of
Division 10 of the Health and Safety Code shall not interfere with an
employer's rights and obligations to maintain a drug and alcohol
free workplace or require an employer to permit or accommodate the
use, consumption, possession, transfer, display, transportation,
sale, or growth of marijuana in the workplace or affect the ability
of employers to have
policies prohibiting the use of marijuana by employees and
prospective employees, or prevent employers from complying with state
or federal law.
18136. 18135. (a) A person shall
not distribute any form of advertising for physician recommendations
for medical marijuana in California unless the advertisement bears
the following notice to consumers:
NOTICE TO CONSUMERS: The Compassionate Use Act of 1996 ensures
that seriously ill Californians have the right to obtain and use
marijuana for medical purposes where medical use is deemed
appropriate and has been recommended by a physician who has
determined that the person's health would benefit from the use of
medical marijuana. Physicians are licensed and regulated by the
Medical Board of California and arrive at the decision to make this
recommendation in accordance with accepted standards of medical
responsibility. Marijuana is a Schedule I drug according to the
federal Controlled Substances Act. Activity related to marijuana use
is subject to federal prosecution, without protections provided by
state law.
(b) Advertising for physician recommendations for medical
marijuana shall meet all requirements of Section 651. Price
advertising shall not be fraudulent, deceitful, or misleading,
including statements or advertisements of bait, discounts, premiums,
gifts, or statements of a similar nature.
18137. 18136. (a) A facility issued
a conditional license shall implement sufficient
security measures to both deter and prevent unauthorized entrance
into areas containing medical marijuana or medical marijuana products
and theft of medical marijuana or medical marijuana products at
those facilities. These security measures shall include, but not be
limited to, all of the following:
(1) Preventing individuals from remaining on the premises of the
facility if they are not engaging in activity expressly related to
the operations of the facility.
(2) Establishing limited access areas accessible only to
authorized facility personnel.
(3) Storing all finished medical marijuana and medical marijuana
products in a secured and locked room, safe, or vault, and in a
manner as to prevent diversion, theft, and loss, except for limited
amounts of marijuana used for display purposes, samples, or immediate
sale.
(b) A facility issued a conditional license
shall notify 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 office.
(2) Diversion, theft, loss, or any criminal activity involving the
facility or a facility agent.
(3) The loss or unauthorized alteration of records related to
marijuana, registered qualifying patients, personal caregivers, or
facility agents.
(4) Any other breach of security.
(c) A licensed cultivation site shall weigh, inventory, and
account for on video, all medical marijuana to be transported prior
to its leaving its origination location. Within eight hours after
arrival at the destination, the licensed dispensing facility shall
reweigh, reinventory, and account for on video, all transported
marijuana.
18138. 18137. (a) A licensed
cultivation site or licensed dispensing facility shall display the
conditional license in a manner so as to be
available and easily read at the location.
(b) The office shall notify local law enforcement of all
conditional licenses issued for cultivation sites,
manufacturers, and dispensaries in that jurisdiction.
18140. 18138. (a) Information
identifying the names of patients, their medical conditions, or the
names of their primary caregivers received and contained in records
kept by the office for the purposes of administering this part shall
be maintained in accordance with Chapter 1 (commencing with Section
123100) of Part 1 of Division 106 of the Health and Safety Code, Part
2.6 (commencing with Section 56) of Division 1 of the Civil Code,
and other state and federal laws relating to confidential patient
information.
(b) (1) Nothing in this section shall preclude any of the
following:
(A) Office employees notifying state or local agencies about
information submitted to the office that the employee suspects is
falsified or fraudulent.
(B) Notifications from the office to state or local agencies of
apparent violations of this part or an applicable local ordinance.
(C) Verification of requests by state or local agencies to confirm
licenses and certificates issued by the office or other state
agency.
(D) Providing information requested pursuant to a court order or
subpoena issued by a court, an administrative agency, or local
governing body authorized by law to issue subpoenas.
(2) Information shall not be disclosed beyond what is necessary to
achieve the goals of a specific investigation or notification or the
parameters of a specific court order or subpoena.
18141. 18139. (a) The actions of a
licensee, its employees, and its agents, that are permitted pursuant
to a conditional license and that are conducted in
accordance with the requirements of this part and regulations
adopted pursuant to this part, are not unlawful under state law and
shall not be an offense subject to arrest or prosecution.
(b) The actions of a person who, in good faith and upon
investigation, allows his or her property to be used by a licensee,
its employees, and its agents, as permitted pursuant to a
conditional license, are not unlawful under state law and
shall not be an offense subject to arrest or prosecution.
(c) This section shall not be deemed to limit the authority or
remedies of a city, county, or city and county under any law,
including, without limitation, Section 7 of Article XI of the
California Constitution.
18142. 18140. (a) A licensee shall
not cultivate, process, store, manufacture, transport, test,
or sell medical marijuana in the state unless accurate records
are kept at the licensed premises of the growing, processing,
storing, manufacturing, transporting, testing, or selling
by the licensee in the state. These records shall include the name
and address of the supplier of marijuana received or possessed by the
licensee, the location at which the marijuana was cultivated, the
amount of marijuana received, the form in which it is received, the
name of the employee receiving it, and the date of receipt. These
records shall also include receipts for all expenditures incurred by
the licensee and banking records, if any, for all funds obtained or
expended in the performance of any activity under the authority of
the conditional license. A licensee who has a
conditional license for more than one premises may
keep all records at one of the conditionally
licensed premises. Required records shall be kept for a period of
seven years from the date of the transaction.
(b) The office or a local agency delegated the authority to
enforce the licensing requirements of this part may examine the books
and records of a conditional licensee and may
visit and inspect the premises of a conditional
licensee, as the office or local agency deems necessary to perform
its duties under this part.
(c) Books or records requested by the office or a local agency
delegated the authority to enforce licensing requirements of this
part shall be provided by the conditional licensee
no later than five business days after the request is made.
(d) The office or a local agency delegated the authority to
enforce the licensing requirements of this part may enter and inspect
the premises of a facility issued a conditional
license between the hours of 8 a.m. and 8 p.m. on any day that the
facility is open, or at any reasonable time, to ensure compliance and
enforcement of the provisions of this part or a local ordinance.
(e) If a licensee or an employee of a licensee refuses, impedes,
obstructs, or interferes with an inspection pursuant to subdivision
(d), the conditional license may be summarily
suspended and the office shall directly commence proceedings for the
revocation of the conditional license.
(f) If a licensee fails to maintain or provide the books and
records required pursuant to this section, the licensee shall be
subject to a civil fine of fifteen thousand dollars ($15,000) per
individual violation.
(g) The office or a local agency delegated the authority to
enforce the licensing requirement of this part may, at its
discretion, require a licensee to contract for an independent audit
of the records required under this section. The licensee shall be
liable for all costs associated with such an audit.
CHAPTER 9. APPRENTICESHIP PROGRAM
18141. This chapter applies only to cultivation sites and
dispensaries.
18142. The Division of Labor Standards Enforcement shall do all
of the following:
(a) Maintain minimum standards for the competency and training of
employees of a licensed cultivator or dispensary through a system of
testing and certification.
(b) Maintain an advisory committee and panels as necessary to
carry out its functions under this chapter. There shall be employer
representation on the committee and panels.
(c) Adopt regulations as determined to be necessary to implement
this chapter.
(d) Issue certification cards to employees certified pursuant to
this chapter.
(e) Establish registration fees in an amount reasonably necessary
to implement this chapter, not to exceed twenty-five dollars ($25)
for the initial registration. There shall be no fee for annual
renewal of registration. Fees collected for cultivation sites and
dispensaries shall be placed into the Medical Marijuana Regulation
Fund.
18143. (a) By January 1, 2017, the Division of Labor Standards
Enforcement shall develop a certification program for marijuana
employees. Commencing January 1, 2019, except as provided in
subdivision (c), certification shall be required of all persons who
perform work as marijuana employees.
(b) Individuals desiring to be certified shall submit an
application for certification and examination.
(c) (1) Certification is not required for registered apprentices
working as marijuana employees as part of a state-approved
apprenticeship program. An apprentice who is within one year of
completion of his or her term of apprenticeship shall be permitted to
take the certification examination and, upon passing the
examination, shall be certified immediately upon completion of the
term of apprenticeship.
(2) Commencing January 1, 2019, an uncertified person may perform
work for which certification is otherwise required in order to
acquire the necessary on-the-job experience for certification
provided that the person shall be under the direct supervision of a
marijuana employee certified pursuant to this section who is
responsible for supervising no more than one uncertified person.
(3) The Division of Labor Standards Enforcement may develop
additional criteria governing this subdivision.
18144. (a) The following shall constitute additional grounds for
disciplinary proceedings, including suspension or revocation of the
license issued pursuant to this part:
(1) The licensee willfully employs one or more uncertified persons
to perform work as marijuana employees in violation of this chapter.
(2) The licensee willfully fails to provide adequate supervision
of uncertified workers.
(3) The licensee willfully fails to provide adequate supervision
of apprentices.
(b) The Labor Commissioner shall maintain a process for referring
cases to the office when it has been determined that a violation of
this section has likely occurred. The Labor Commissioner shall have a
memorandum of understanding with the regulatory authorities office
in furtherance of this section.
(c) Upon receipt of a referral by the Labor Commissioner alleging
a violation under this section, the office shall open an
investigation. Disciplinary action against the licensee shall be
initiated within 60 days of the receipt of the referral. The office
may initiate disciplinary action against a licensee upon his or her
own investigation, the filing of a complaint, or a finding that
results from a referral from the Labor Commissioner alleging a
violation under this section. Failure of the employer or employee to
provide evidence of certification or apprentice status shall create a
rebuttable presumption of violation of this section.
(d) This section shall become operative on January 1, 2019.
CHAPTER 10. TRACKING PROGRAM
18145. On or before March 1, 2016, the chief shall submit a
request for proposal to the public regarding a tracking program for
medical marijuana and medical marijuana products as part of the
antidiversion effort. The office shall choose a supplier and begin
full implementation of the program prior to the issuance of state
licenses pursuant to this part.
SEC. 6. Section 23028 is added to the Government Code, to read:
23028. (a) (1) A county may impose a tax on the privilege of
cultivating, dispensing, producing, processing, preparing, storing,
providing, donating, selling, or distributing medical marijuana or
medical marijuana products by a licensee operating pursuant to Part 5
(commencing with Section 18100) of Division 7 of the Business and
Professions Code.
(2) The board of supervisors shall specify in the ordinance
proposing the tax the activities subject to the tax, the applicable
rate or rates, the method of apportionment, if necessary, and the
manner of collection of the tax. The tax may be imposed for general
governmental purposes or for purposes specified in the ordinance by
the board of supervisors.
(3) In addition to any other method of collection authorized by
law, the board of supervisors may provide for the collection of the
tax imposed pursuant to this section in the same manner, and subject
to the same penalties and priority of lien, as other charges and
taxes fixed and collected by the county. A tax imposed pursuant to
this section is a tax and not a fee or special assessment. The board
of supervisors shall specify whether the tax applies throughout the
entire county or within the unincorporated area of the county.
(4) The tax authorized by this section may be imposed upon any or
all of the activities set forth in paragraph (1) specified in the
ordinance, regardless of whether the activity is undertaken
individually, collectively, or cooperatively, and regardless of
whether the activity is for compensation or gratuitously, as
determined by the board of supervisors or city council.
(b) A tax imposed pursuant to this section shall be subject to
applicable voter approval requirements imposed by law.
(c) For purposes of this section, "marijuana" has the same meaning
as the term "marijuana product" set forth in Section 111658 of the
Health and Safety Code.
(d) This section is declaratory of existing law and does not limit
or prohibit the levy or collection of any other fee, charge, or tax,
or a license or service fee or charge upon, or related to, the
activities set forth in subdivision (a) as otherwise provided by law.
This section shall not be construed as a limitation upon the taxing
authority of a county as provided by law.
(e) A tax imposed pursuant to this section is not a sales and use
tax subject to Part 1.5 (commencing with Section 7200) of Division 2
of the Revenue and Taxation Code or a transactions and use tax
subject to Chapter 2 (commencing with Section 7285) of Part 1.7 of
Division 2 of the Revenue and Taxation Code. This subdivision shall
not preclude imposition of any other tax authorized under this
section upon the privilege of selling, storing, using, or consuming
medical marijuana.
SEC. 7. Section 11362.775 of the Health and Safety Code is amended
to read:
11362.775. (a) Qualified patients, persons with valid
identification cards, and the designated primary caregivers of
qualified patients and persons with identification cards, who
cultivate marijuana for medical purposes, shall not solely on the
basis of that fact be subject to state criminal sanctions under
Section 11357, 11358, 11359, 11360, 11366, 11366.5, or 11570.
(b) An individual employee, officer, or board member of a facility
issued a conditional license pursuant to Part 5
(commencing with Section 18100) of Division 7 of the Business and
Professions Code shall not be subject to state criminal sanctions
under Section 11357, 11358, 11359, 11360, 11366, 11366.5, or 11570
and any successor statutes, based solely on holding a
conditional license, for the possession, cultivation,
processing, packaging, storage, transportation, testing,
sale, or distribution of medical marijuana to a facility holding a
conditional license pursuant to Part 5 (commencing
with Section 18100) of Division 7 of the Business and Professions
Code or directly to a qualified patient, a person with a valid
identification card, or the designated primary caregiver of a
qualified patient or person with a valid identification card, within
the state, unless the information contained on the licensing
paperwork is false or falsified, the license has been obtained by
means of fraud, or the person is otherwise in violation of Part 5
(commencing with Section 18100) of Division 7 of the Business and
Professions Code.
(c) This section shall not diminish the protections of Section
18141 18139 of the Business and
Professions Code.
SEC. 8. Article 8 (commencing with Section 111658) is added to
Chapter 6 of Part 5 of Division 104 of the Health and Safety Code, to
read:
Article 8. Medical Marijuana
111658. For purposes of this article, the following definitions
shall apply:
(a) "Edible medical marijuana product" means medical marijuana or
a medical marijuana-derived product that is ingested or meant to be
ingested through the mouth and into the digestive system.
(b) "Marijuana" means all parts of the plant Cannabis sativa L.
sativa, Cannabis indica, or Cannabis ruderalis, whether growing or
not; the seeds thereof; the resin, whether crude or purified,
extracted from any part of the plant; and every compound,
manufacture, salt, derivative, mixture, or preparation of the plant,
its seeds, or resin. "Marijuana" does not include the mature stalks
of the plant, fiber produced from the stalks, oil or cake made from
the seeds of the plant, any other compound, manufacture, salt,
derivative, mixture, or preparation of the mature stalks (except the
resin extracted therefrom), fiber, oil, or cake, or the sterilized
seed of the plant which is incapable of germination. "Marijuana" also
means marijuana, as defined by Section 11018.
(c) "Office" means the Office of Medical Marijuana Regulation in
the Business, Consumer Affairs, Services,
and Housing Agency.
111659. On or before July 1, 2017, the office shall report to the
Legislature on the feasibility of developing a program to certify
laboratories for the testing of medical marijuana and related
products and the feasibility of developing a labeling requirement for
edible marijuana products that incorporates information on the
cannabinoid content.
111660. A facility issued a conditional license pursuant to Part
5 (commencing with Section 18100) of Division 7 of the Business and
Professions Code shall bear the responsibility for both of the
following:
(a) Maintaining supplier information in order for recall
procedures to be implemented, if and when necessary.
(b) Labeling of all medical marijuana and medical marijuana
products that shall, at a minimum, include the following:
(1) List of pharmacologically active ingredients, including, but
not limited to, tetrahydrocannabinol (THC) and cannabidiol (CBD)
content, the quantity of active ingredients per serving, and the
total amount within the package. For purposes of this paragraph, the
office shall determine the appropriate size of one serving.
(2) Clear indication, in bold font, that the product contains
medical marijuana.
(3) The statement "FOR MEDICAL USE ONLY. KEEP OUT OF REACH OF
CHILDREN AND ANIMALS" in bold print.
(4) Identification of the source and date of cultivation and
manufacture.
(5) The name and location of the dispensary providing the product.
(6) The date of sale.
(7) Any other requirements set by the office.
111659. (a) The office shall promulgate regulations for
implementation and enforcement, including requirements to ensure that
all licensees and certified testing laboratories conform with
applicable standards equivalent to state statutory environmental,
agricultural, consumer protection, and food and product safety
requirements. These standards shall be in addition, and not limited,
to any other state and local requirements.
(b) Medical marijuana and medical marijuana products shall be
tested by a certified testing laboratory, prior to retail sale or
dispensing, as follows:
(1) Medical marijuana from dried flower shall, at a minimum, be
tested for potency, pesticides, mold, rodenticide, and other
contaminants.
(2) Medical marijuana extracts shall, at a minimum, be tested for
potency and purity of the product.
(3) This article shall not prohibit a licensee from performing
onsite testing for the purposes of quality assurance of the product
in conjunction with reasonable business operations. Onsite testing by
the licensee shall not be certified by the office.
(c) The office shall promulgate standards for certification of
testing laboratories to perform random sample testing of all medical
marijuana and medical marijuana products, including standards for
onsite testing.
(d) Certification of testing laboratories shall be 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.
(e) These requirements shall apply to all entities, including
third-party laboratories, engaged in the testing of medical marijuana
pursuant to this article.
(f) A laboratory certified by the office to perform random sample
testing of medical marijuana or medical marijuana products shall not
acquire or receive medical marijuana or medical marijuana products
except from a licensed facility in accordance with this article, and
shall not distribute, sell, deliver, transfer, transport, or dispense
medical marijuana or medical marijuana products except to the
licensed facility from which the medical marijuana or medical
marijuana products were acquired or received. All transfer or
transportation shall be performed pursuant to a specified chain of
custody protocol.
(g) The office shall develop procedures to ensure that testing of
marijuana occurs prior to delivery to dispensaries or any other
business, and specify how often licensees shall test marijuana, that
the cost of testing shall be borne by the licensed cultivators, and
requiring destruction of harvested batches whose testing samples
indicate noncompliance with health and safety standards promulgated
by the office, unless remedial measures can bring the marijuana into
compliance with quality assurance standards as promulgated by the
office.
(h) The office shall establish a certification fee, and
laboratories shall pay a fee to be certified. Certification fees
shall not exceed the reasonable regulatory cost of the certification
activities.
(i) All certification fees collected by the office pursuant to
this chapter shall be deposited into the Medical Marijuana Regulation
Fund. All moneys in the Medical Marijuana Regulation Fund that are
attributable to this section shall be available to the office upon
appropriation of the Legislature solely for the purpose of fully
funding administration of this article, including, but not limited
to, the costs incurred by the office for the administrative expenses
and costs and the costs of regulation.
111660. (a) The office shall promulgate the following public
health standards:
(1) Health and safety standards applicable to all medical
marijuana and medical marijuana products, including maximum potency
standards for medical marijuana products.
(2) Standards for licensed manufacturers of medical marijuana and
medical marijuana products, including, but not limited to, edible
products.
(b) At a minimum, the standards required by this section shall do
all of the following:
(1) Prescribe sanitation standards equivalent to the California
Retail Food Code (Part 7 (commencing with Section 113700)) for food
preparation, storage, handling, and sale of edible medical marijuana
products. For purposes of this article, edible medical marijuana
products are deemed to be unadulterated food products.
(2) Require that edible medical marijuana products produced,
distributed, provided, donated, or sold by licensees shall be limited
to nonpotentially hazardous food, as established by the State
Department of Public Health pursuant to Section 114365.5.
(3) Require that facilities in which edible medical marijuana
products are prepared shall be constructed in accordance with
applicable building
standards, health and safety standards, and other state laws.
(4) Require that all edible medical marijuana products shall be
packaged at the original point of preparation.
(c) No person shall engage in the manufacture, packing, or holding
of processed food containing edible marijuana unless the person has
a valid registration from the office pursuant to Sections 18109 to
18113, inclusive, of the Business and Professions Code. Health and
safety standards prescribed by this section or promulgated through
regulation may be enforced by local environmental health departments.
111661. (a) Prior to sale or distribution at a licensed
dispensing facility or an unlicensed dispensing facility in the City
of Los Angeles, medical marijuana products shall be labeled and shall
be in a tamper evident package. Labels and packages of medical
marijuana products shall meet the following requirements:
(1) Medical marijuana packages and labels shall not be made to be
attractive to children.
(2) All medical marijuana product labels shall include the
following information, shall be prominently displayed, and shall be
in a clear and legible font:
(A) Manufacture date and source.
(B) The statement "KEEP OUT OF REACH OF CHILDREN AND ANIMALS" in
bold print.
(C) The statement "FOR MEDICAL USE ONLY."
(D) The statement "THE INTOXICATING EFFECTS OF THIS PRODUCT MAY BE
DELAYED BY UP TO TWO HOURS."
(E) The statement "THIS PRODUCT MAY IMPAIR THE ABILITY TO DRIVE OR
OPERATE MACHINERY. PLEASE USE EXTREME CAUTION."
(F) For packages containing only dried marijuana, the net weight
of medical marijuana in the package.
(G) A warning if nuts or other known allergens are used.
(H) 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.
(I) Clear indication, in bold type, that the product contains
medical marijuana.
(J) Identification of the source and date of cultivation and
manufacture.
(K) The date of sale.
(L) Any other requirement set by the office.
(b) Only generic food names may be used to describe edible medical
marijuana products.
111662. For purposes of this article, edible medical marijuana
products are deemed to be unadulterated food products. In addition to
the quality assurance standards provided in Section 111661, all
edible medical marijuana products shall comply with the following
requirements:
(a) Baked edible medical marijuana products, including, but not
limited to, brownies, bars, cookies, and cakes, tinctures, and other
edible medical marijuana products that do not require refrigeration
or hot holding may be manufactured, sold, or otherwise distributed at
facilities issued a conditional license pursuant
to Part 5 (commencing with Section 18100) of Division 7 of the
Business and Professions Code.
(b) A facility issued a conditional license
pursuant to Part 5 (commencing with Section 18100) of Division 7 of
the Business and Professions Code shall have an owner or employee who
has successfully passed an approved and accredited food safety
certification examination as specified in Sections 113947.1,
113947.2, and 113947.3 prior to selling, manufacturing, or
distributing edible medical marijuana products requiring
refrigeration or hot holding.
(c) Individuals manufacturing or selling edible medical marijuana
products shall thoroughly wash their hands before commencing
production and before handling finished edible medical marijuana
products.
(d) All edible medical marijuana products sold for direct
consumption and infused with marijuana concentrate shall be
individually wrapped at the original point of preparation.
(e) Products containing tetrahydrocannabinol (THC) shall be
prepared in compliance with maximum potency standards for THC and THC
concentrates set forth in the office's regulations.
(f) Prior to sale or distribution at a licensed dispensing
facility, edible medical marijuana products shall be labeled and in a
tamper evident package. Labels and packages of edible medical
marijuana products shall meet the following requirements:
(1) Edible medical marijuana packages and labels shall not be made
to be attractive to children.
(2) In addition to the labeling requirements set forth in Section
111660, edible medical marijuana product labels shall include the
following information, prominently displayed and in a clear and
legible font:
(A) Manufacture date and source.
(B) Net weight of medical marijuana in package.
(C) A warning if nuts or other known allergens are used and shall
include the total weight, in ounces or grams, of medical marijuana in
the package.
(D) Any other requirement set by the office.
(g) Photos or images of food are not allowed on edible medical
marijuana product packages or labels.
(h) Only generic food names may be used to describe edible medical
marijuana products.
111663. All facilities issued a conditional
license pursuant to Part 5 (commencing with Section 18100) of
Division 7 of the Business and Professions Code that conduct business
related to food or food-based products shall be subject to
requirements equivalent to those of the California Retail Food Code
and other applicable laws, as determined by the office.
SEC. 9. Section 3094 is added to the
Labor Code , to read:
3094. The Division of Apprenticeship Standards shall investigate,
approve, or reject applications for apprenticeship programs for
employees of a licensee subject to Sections 18141 to 18144,
inclusive, of the Business and Professions Code. The Division of
Apprenticeship Standards shall adopt regulations necessary to
implement and regulate the establishment of the apprenticeship
programs described in this section.
SEC. 10. Section 2402.5 is added to the
Vehicle Code , to read:
2402.5. (a) The Department of the California Highway Patrol shall
establish protocols to determine whether a driver is operating a
vehicle under the influence of marijuana, and shall develop protocols
setting forth best practices to assist law enforcement agencies. The
costs to the Department of the California Highway Patrol of
implementing this subdivision shall, upon appropriation by the
Legislature, be paid for with appropriations from moneys in the
Medical Marijuana Regulation Fund.
(b) (1) Department of Motor Vehicles, in consultation with the
Department of the California Highway Patrol, shall prepare a report
to the Office of Medical Marijuana Regulation, the Senate, and the
Assembly that identifies best practices for the identification,
detection, and apprehension of drivers operating a vehicle unsafely
due to marijuana impairment.
(2) It is the intent of the Legislature that Department of Motor
Vehicles use various resources, including, but not limited to, peer
reviewed research and drug recognition experts to prepare the report.
(3) The report shall include, but not be limited to, an
identification of roadside tests that enhance the ability of law
enforcement officers to detect marijuana impairment and specific
indicators that correlate performance on roadside testing with the
inability of a driver to safely operate a motor vehicle.
(4) Publication of the report shall not occur until the Department
of the California Highway Patrol concurs with its findings.
(5) The report shall be provided no later than September 1, 2016.
(6) The Department of Motor Vehicles and the Department of the
California Highway Patrol are authorized to contract for consultation
services necessary to complete the report and receive reimbursement
for the costs of consultation services from the Medical Marijuana
Regulation Fund.
SEC. 9. SEC. 11. On or before July
1, 2016, the State Board of Equalization shall compile a report on
the estimated tax collected on the sale of medical marijuana, using
the most current data available. The report should also include
expected tax revenues, under the existing tax structure, for the
years 2016 to 2021, inclusive. This report shall be submitted to the
Legislature and the Governor's office pursuant to Section 9795 of the
Government Code.
SEC. 10. SEC. 12. The provisions of
this act are severable. If any provision of this act or its
application is held invalid, that invalidity shall not affect other
provisions or applications that can be given effect without the
invalid provision or application.
SEC. 11. SEC. 13. The Legislature
finds and declares that Section 5 of this act imposes a limitation on
the public's right of access to the meetings of public bodies or the
writings of public officials and agencies within the meaning of
Section 3 of Article I of the California Constitution. Pursuant to
that constitutional provision, the Legislature makes the following
findings to demonstrate the interest protected by this limitation and
the need for protecting that interest:
The limitation imposed under this act is necessary for purposes of
compliance with the federal Health Insurance Portability and
Accountability Act of 1996 (42 U.S.C. Sec. 1320d et seq.), the
Confidentiality of Medical Information Act (Part 2.6 (commencing with
Section 56) of Division 1 of the Civil Code), and the Insurance
Information and Privacy Protection Act (Article 6.6 (commencing with
Section 791) of Part 2 of Division 1 of the Insurance Code).
SEC. 12. SEC. 14. No reimbursement
is required by this act pursuant to Section 6 of Article XIII B of
the California Constitution because the only costs that may be
incurred by a local agency or school district will be incurred
because this act creates a new crime or infraction, eliminates a
crime or infraction, or changes the penalty for a crime or
infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIII B of the California Constitution.
SEC. 13. SEC. 15. The amendments
made to Section 11362.775 of the Health and Safety Code by this act
shall become operative on July 1, 2018.
