Source: http://leginfo.legislature.ca.gov/faces/billVersionsCompareClient.xhtml?bill_id=201320140AB1894
Timestamp: 2019-11-19 00:32:40
Document Index: 585820563

Matched Legal Cases: ['art 1', 'art 2', 'art 1', 'art 1', 'art 1', 'art 3', 'art 1']

PDF2 PDF |Add To My Favorites | Version: 05/23/14 - Amended Assembly 04/01/14 - Amended Assembly 02/19/14 - Introduced
Current Version: 05/23/14 - Amended Assembly Compared to Version: 05/23/14 - Amended Assembly 04/01/14 - Amended Assembly 02/19/14 - Introduced
An act to amend Sections 2220.05, 2242, and 2264 of, and to add Chapter 18 (commencing with Section 26000) to Division 9 of, the Business and Professions Code, to add Section 23028 to the Government Code, and to amend Section 11362.7 of, and to amend and repeal Section 11362.775 of, the Health and Safety Code, and to add Chapter 4 (commencing with Section 7294) to Part 1.7 of Division 2 of the Revenue and Taxation Code, relating to medical cannabis, and making an appropriation therefor.
AB 1894, as amended, Ammiano. Falsely filed liens or encumbrances. Medical cannabis.
(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, commonly referred to as the Medical Marijuana Program Act, 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.
This bill would enact the Medical Cannabis Regulation and Control Act and would create the Division of Medical Cannabis Regulation and Enforcement within the Department of Alcoholic Beverage Control, to be administered by a person exempt from civil service who is appointed by the Director of Alcoholic Beverage Control. The bill would grant the department the exclusive power to register persons for the cultivation, manufacture, testing, transportation, storage, distribution, and sale of medical cannabis within the state subject to specified exemptions for provided that the authority of a city or county to adopt ordinances inconsistent with the requirements of the act that ban, regulate, or tax medical cannabis activities, and to enforce those ordinances, would not be affected by the act. The bill would provide that the director and persons employed by the department to administer and enforce its provisions are peace officers. The bill would prescribe requirements for the issuance, renewal, suspension, and revocation of mandatory commercial registrations and fees in relation to these activities. The bill would permit the department to assist statewide taxation authorities in the development of uniform policies for the state taxation of mandatory commercial medical cannabis registrants and to assist in the development of regulation in connection with work safety in this industry. The bill would authorize the division to establish a grant program for the purpose of funding medical cannabis regulation and enforcement.
The bill would require the department, on or before January 1, 2016, to issue regulations as necessary for the implementation and enforcement of mandatory commercial medical cannabis registration, as specified, and including requirements analogous to statutory environmental, agricultural, consumer protection, and food and product safety requirements. The bill would require the department to administer and enforce these requirements. The bill would prescribe requirements for provisional registrations to be operative January 1, 2015. The bill would prohibit approval of a mandatory commercial registration for specified reasons, including if a licensed physician making patient recommendations for medical cannabis is an interested party in the proposed operation, and would prohibit a physician from recommending medical cannabis to a patient while he or she is a mandatory commercial registrant, or associated, as specified, with a mandatory commercial registrant. The bill would prohibit a registrant from holding a one registration in more than one class of medical cannibis activities.
The bill would require a registrant to keep various records in connections with medical cannabis activities and would prescribe requirements for making records available to the department and any state or local agency. The bill would provide that certain patient and caregiver information is excluded from disclosure to the public. The bill would provide that the act does not apply to the protections granted to a patient or primary caregiver acting pursuant to the Compassionate Use Act of 1996 and would exempt these parties from the application of the act, provided they act consistently with specified requirements. The bill would provide that the actions of a mandatory commercial registrant or provisional registrant, its employees, and its agents that are permitted pursuant to a valid mandatory commercial registration issued by the division and that are conducted in accordance with the requirements of the act are not unlawful under state law, as specified. The bill would provide a similar state law immunity for a property owner who allows his or her property to be used by a mandatory commercial registrant or provisional registrant.
The bill would require the department to work in conjunction with law enforcement entities throughout the state to implement and enforce the rules and regulations regarding medical cannabis and to take appropriate action against businesses and individuals that fail to comply with the law. The bill would prohibit, on and after January 1, 2016, a person other than a mandatory commercial registrant from selling cannabis or cannabis products or performing other actions related to cannabis, except as specified. The bill would provide that its provisions do not affect local zoning ordinances or laws of general application prevent specified city or county actions, including zoning ordinances banning or regulating the location, operation, or establishment of a commercial registrant. The bill would make certain violations of its provisions a crime, thereby imposing a state-mandated local program. The bill would establish requirements for the transportation of medical cannabis. The bill would specify that its provisions are severable.
The bill would specify that recommending marijuana to patients without a good faith examination and medical reason or recommending marijuana for nonmedical purposes is unprofessional conduct and is a type of case conduct. The bill would provide that specified acts of recommending marijuana without a good faith examination are among the types of cases that should be given priority for investigation and prosecution by the Medical Board of California, as described above. The bill would also specify that employment by, or an agreement with, a mandatory medical cannabis registrant to provide recommendations for medical marijuana constitutes unprofessional conduct. By broadening the definition of a crime, the bill would impose a state-mandated local program. The bill would repeal, 90 days after the department posts a specified notice on its Internet Web site, the provisions described above prohibiting prosecution of qualified patients, persons with valid identification cards, and designated primary caregivers who associate in California, collectively or cooperatively, to cultivate marijuana for medical purposes.
(2) Existing law authorizes the board of supervisors of a county and the governing body of a city to levy, increase, or extend 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 board or governing 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 additionally authorize the board of supervisors of a county and the governing body of a city to levy, increase, or extend transactions and use taxes on the retail sale of or storage, use, or other consumption of, medical marijuana or medical marijuana-infused products for general and specified purposes, as provided, at a combined rate, as provided, not to exceed 5%. to impose, by ordinance, a tax on the privilege of cultivating, dispensing, producing, processing, preparing, storing, providing, donating, selling, or distributing cannabis or cannabis products, including a transactions and use tax at any rate specified by the board. 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) Greater certainty and uniformity minimum statewide standards are urgently needed regarding the rights and 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.
(6) For the protection of all Californians, the state must act to regulate and control medical marijuana and not preempt local government ordinances. Cities and counties should be allowed to impose reasonable local taxes and enact reasonable zoning regulations and other restrictions, including bans, applicable to the commercial cultivation and distribution of medical marijuana based on a local governing body’s determination of local needs. In order to provide patients with access to safe medical marijuana products, while at the same time preventing diversion of marijuana to nonmedical uses and protecting the public, it is necessary to amend the MMPA and to establish a comprehensive structure for regulating the cultivation, production, and distribution of medical marijuana products.
(7) A state entity shall be created to regulate and control the mandatory registration of all entities involved in the commercial cultivation, processing, manufacturing, testing, transportation, distribution, provision, donation, and sale of medical marijuana in this state. Patients and their primary caregivers shall continue to be allowed to who cultivate medical marijuana for the personal medical purposes of the individual patient, patients shall not be subject to the statewide system of regulation established by this act but only medical marijuana produced in compliance with this act may be sold or commercially distributed.
(8) This act is not intended to prevent cities and counties from imposing reasonable local taxes and enacting reasonable zoning regulations and other restrictions, including bans, applicable to the commercial cultivation and distribution of medical marijuana based on a local governing body’s determination of local needs.
(10) It is the intent of the Legislature that entities provided immunity under Measure D, approved by the voters of the City of Los Angeles on at the May 21, 2013, ballot, general election, shall be considered the equivalent of entities that are registered, permitted, or licensed as a medical marijuana business, dispensary, or other entity involved in providing medical marijuana to patients under a local ordinance and shall be considered in compliance with a local ordinance for the purposes of the implementation of this act and any regulations promulgated by the Department of Alcoholic Beverage Control.
(1) To establish a statewide system for regulating and controlling commercial medical cannabis activities by creating a state entity to enact and enforce regulations governing the cultivation, processing, manufacturing, testing, transportation, distribution, provision, donation, and sale of commercial medical cannabis.
(2) To allow cities and counties to enact reasonable zoning regulations or other restrictions, including bans, applicable to the cultivation, processing, manufacturing, testing, and distribution of commercial medical cannabis based on a local governing body’s determination of local needs.
(3) To establish the Division of Medical Cannabis Regulation and Enforcement to be located within the Department of Alcoholic Beverage Control to provide a governmental agency that will ensure the strict, honest, impartial, and uniform administration and enforcement of the medical cannabis laws statewide regulatory system established by this act throughout the state.
(4) To fulfill the promise enact legislation in furtherance of the Compassionate Use Act of 1996 1996, which provides for the Legislature to “implement a plan for the safe and affordable distribution of marijuana to all patients in medical need of marijuana.”
(5) To establish a statewide registration process for commercial medical cannabis activities to identify for law enforcement which entities are exempt from state criminal penalties for the cultivation, processing, manufacturing, testing, transportation, distribution, provision, donation, and sale of medical cannabis solely on the basis of their activities conducted in compliance with this act.
(a) Prescribing, dispensing, or furnishing dangerous drugs as defined in Section 4022, or recommending marijuana to a patient for a medical purposes, purpose, without an appropriate prior examination and a medical indication, including an in-person examination when recommending marijuana, or recommending marijuana for a nonmedical purpose, constitutes unprofessional conduct.
(a) It is the intent of the Legislature in enacting this chapter to provide for the comprehensive regulation of the commercial cultivation, manufacturing, testing, transportation, distribution, provision, donation, and sale of medical cannabis and the enforcement of laws relating to commercial medical cannabis activities without preempting city or county ordinances regulating or banning these activities.
Subject to Without limiting the authority of a city or county pursuant to Section 26010 Section 7 of Article XI of the California Constitution or any other provision of law, and subject to that authority, the state shall have the exclusive right and power to regulate and register persons for the cultivation, manufacture, testing, transportation, storage, distribution, provision, donation, sale, purchase, and possession of medical cannabis within the state. In the exercise of these rights and powers, the Legislature shall not constitute the state or any of its agencies as a cultivator, manufacturer, transporter, tester, or seller of medical cannabis.
(a) “Cannabis” 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. It 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. “Cannabis” also means the separated resin, whether crude or purified, obtained from marijuana. “Cannabis” also means marijuana as defined by Section 11018 of the Health and Safety Code as enacted by Chapter 1407 of the Statutes of 1972.
(b) “Commercial” means any cultivation, processing, possession, storage, manufacturing, testing, transportation, distribution, provision, donation, or sale of cannabis or cannabis product, whether or not gratuitous, except as provided in subdivision (b) of Section 26052.
(c) “Department” means the Department of Alcoholic Beverage Control.
(d) “Dispensary” means a mandatory commercial registrant that dispenses cannabis or medical cannabis products through a retail storefront.
(e) “Division” means the Division of Medical Cannabis Regulation and Enforcement.
(f) “Edible cannabis product” means a cannabis product that is used or intended for use in whole or in part for human consumption and includes chewing gum.
(g) “Fund” means the Medical Cannabis Regulation Fund established pursuant to Section 26028.
(h) “Identification program” means the universal identification certificate program for mandatory commercial registrants.
(i) “Mandatory commercial registrant” or “registrant” means any individual, partnership, joint venture, association, limited liability company, corporation, estate, trust, receiver, syndicate, or any other group or combination thereof acting as a unit to commercially cultivate, process, possess, store, manufacture, test, transport, distribute, provide, donate, or sell medical cannabis in compliance with this chapter, other than a patient or a patient’s primary caregiver, as defined by the Compassionate Use Act of 1996, growing, possessing, storing, manufacturing, transporting, or providing medical cannabis exclusively for the personal medical purposes of individual patients as defined in subdivision (b) of Section 26050 26052.
(j) “Medical cannabis product” or “cannabis product” means any cannabis product, product containing cannabis, including concentrates and extractions, that is cultivated, manufactured, processed, packaged, and distributed in full compliance with the requirements of this chapter and with any regulations adopted by the department pursuant to its rulemaking authority. “Medical cannabis product” includes medically infused products that contain medical cannabis and are intended for oral or topical consumption by a qualified patient.
(k) “Person” includes any individual, firm, copartnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit and includes the plural as well as the singular number.
(l) “Testing and labeling” means mandatory labeling and a quality assurance plan in place that addresses all of the following:
This chapter does 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 do not prevent a city or county from doing any of the following:
(a) Adopting local ordinances inconsistent with this chapter that ban or regulate the location, operation, or establishment of a mandatory commercial registrant or other individual, partnership, joint venture, association, limited liability company, corporation, estate, trust, receiver, syndicate, or any other group or combination thereof acting as a unit, that cultivates, processes, possesses, stores, manufactures, tests, transports, distributes, provides, donates, or sells medical cannabis.
(c) Establishing a reasonable fee or tax for the operation of a mandatory commercial registrant within its jurisdiction.
(d) Enacting and enforcing other laws consistent with this chapter or ordinances pursuant to the authority granted by Section 7 of Article XI of the California Constitution.
(a) Establishing statewide minimum standards for the commercial cultivation, manufacturing, testing, transportation, storage, distribution, provision, donation, and sale of medical cannabis and medical cannabis products and procedures for the issuance, renewal, suspension, and revocation of registrations of mandatory commercial registrants.
(d) Approving or denying mandatory commercial registration applications for cultivation, manufacturing, testing and labeling, transportation, distribution, provision, donation, and sale of medical cannabis pursuant to this chapter.
(e) The department shall have the power, in its discretion, to deny, suspend, revoke, or fine any registration issued pursuant to this chapter if the department determines, for good cause, determines that the granting or continuance of the registration would be contrary to public welfare or morals or that a person holding or seeking a registration has violated any law prohibiting conduct involving moral turpitude or an applicable local ordinance.
(2) Prior to suspending, revoking, or fining any registration, the department shall file an accusation as provided for in Section 11503 of the Government Code, and the registrant may request a hearing. If the department determines that the public interest requires that a registration be summarily suspended pending hearing on charges of misconduct that include any of the causes for suspension or revocation specified in this chapter, or if the department has information that leads it to believe that a registrant has violated any law prohibiting conduct involving moral turpitude or any applicable local ordinance, the department may, without hearing, temporarily suspend the registration for a period not exceeding 60 days pending a hearing and decision on the charges.
(a) The department may assist state taxation authorities in the development of uniform policies for the state taxation of mandatory commercial registrants.
(d) The department may establish and administer a grant program to allocate moneys from the Medical Cannabis Regulation Fund to state and local entities for the purpose of assisting with commercial medical cannabis regulation and the enforcement of this chapter and other state and local laws applicable to registrants.
(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 department for the purposes of administering this chapter are confidential and exempt from the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) and or are not subject to disclosure to any individual or private entity, except as necessary for authorized employees of the State of California to perform official duties pursuant to this chapter:
(A) Division employees notifying state or local law enforcement agencies about information submitted to the division that the employee suspects is falsified or fraudulent.
(B) Notifications from the division to state or local law enforcement agencies about apparent criminal violation violations of this chapter or any applicable local ordinance.
(C) Verification of requests by state or local law enforcement agencies to confirm registrants and certificates issued by the division or other state agency.
(2) Information shall not be disclosed beyond what is necessary to achieve the limited goals of a specific investigation or notification or the parameters of a specific court order or subpoena.
(a) On or before January 1, 2016, the department shall promulgate regulations necessary for the implementation and enforcement of this chapter. These regulations shall be reasonable and shall include:
(11) Requirements to ensure conformance with applicable standards analogous to state statutory environmental, agricultural, consumer protection, and food and product safety requirements. The department may consult with the California Environmental Protection Agency to determine whether additional regulations should be issued in order to protect the state’s clean water and environment, including, but not limited to, protections related to land conversion, grading, water diversion and pond development, and agricultural discharges. These standards shall be administered and enforced by the department and shall be in addition to, and not limit, any other state requirements. At a minimum, these standards shall:
(A) Prescribe sanitation standards analogous to the California Retail Food Code for food preparation, storage, and handling and sale of edible cannabis products.
(B) Require that edible cannabis products produced, distributed, provided, donated, or sold by mandatory commercial registrants shall be limited to nonpotentially hazardous food as established by the State Department of Public Health pursuant to Section 114365.5 of Health and Safety Code.
(C) Provide standards for labeling edible cannabis products to ensure that the products cannot be mistaken as food not containing cannabis.
(D) Require that facilities in which edible cannabis products are prepared shall be constructed in accordance with applicable building standards, health and safety standards, and other state laws.
(E) Ensure that edible products distributed or sold by dispensaries are not produced or stored in private homes.
(F) Provide that any weighing or measuring devices used in connection with the sale or distribution of cannabis are required to meet standards analogous to Division 5 (commencing with Section 12001) of the Business and Professions Code.
(G) Require that any application of pesticides or other pest control in connection with the indoor or outdoor cultivation of cannabis shall meet standards analogous to Division 6 (commencing with Section 11401) of the Food and Agricultural Code and its implementing regulations.
(H) Protect the state’s clean water and environment, including, but not limited to, protections related to land conversion, grading, water diversion and pond development, and agricultural discharges.
(1) The applicant fails to meet the requirements of this chapter or any regulation adopted pursuant to this chapter, including chapter or any applicable city or county ordinance or regulation.
(2) The applicant, or any of its officers or directors, officers, directors, owners, members, or shareholders is under 21 years of age.
(4) The applicant, or any of its officers or directors, officers, directors, owners, members, or shareholders has been convicted in the previous five years of a violent felony, as specified in subdivision (c) of Section 667.5 of the Penal Code, a serious felony as specified in subdivision (c) of Section 1192.7 of the Penal Code, a felony offense involving fraud or deceit, or any other felony that, in the department’s estimation, would impair the applicant’s ability to appropriately operate as a mandatory commercial registrant.
(5) The applicant, or any of its officers or directors, officers, directors, owners, members, or shareholders is a licensed physician making patient recommendations for medical cannabis.
(6) The applicant, or any of its officers or directors, officers, directors, owners, members, or shareholders has been sanctioned by the department, a city, or a county for unregistered commercial medical cannabis activities conducted in violation of this chapter or any applicable local ordinance or has had a mandatory commercial registration revoked in the previous three years.
(8) The proposed cultivation, processing, possession, storage, manufacturing, testing, transporting, distribution, provision, donation, or sale of medical cannabis will violate any applicable local law or ordinance.
(c) (1) In order to protect the public safety and provide patients with prompt, safe access to medical cannabis during implementation of this chapter, within 180 days of January 1, 2015, the department shall issue emergency regulations consistent with this chapter that allow a qualified applicant for mandatory commercial registration to apply, be reviewed, and be registered to cultivate, process, manufacture, store, and transport medical cannabis so as to ensure an adequate supply of medical cannabis upon full implementation of this chapter.
For the purpose of regulating the commercial cultivation, manufacturing, testing, transportation, distribution, provision, donation, and sale of medical cannabis, the department, in its reasonable discretion, may shall establish various classes or types of registration for specific commercial medical cannabis-related activities, as set forth in this chapter. At a minimum, registrants engaged in the cultivation and processing of cannabis shall be in a different class from those registrants operating dispensaries.
(a) Each mandatory commercial registration application approved by the department pursuant to this chapter is separate and distinct. An applicant may apply for A registrant shall not hold a mandatory commercial registration in more than one class of specified medical cannabis activities. A registrant shall not be an officer, director, member, owner, or shareholder registrant in another class. The officers, directors, owners, members, or shareholders of a registrant in one class may not hold a registration in another class, and may not be an officer, director, member, owner, or shareholder of a registrant in another class.
(b) A mandatory commercial registration application approved by the department pursuant to this chapter shall be valid for a period not to exceed one year from the date of approval unless revoked or suspended earlier than that date pursuant to this chapter or the rules or regulations adopted pursuant to this chapter.
Every mandatory commercial registration is renewable unless the registration has been revoked if the renewal registration is made and the fee for it is paid. A registration that has been suspended, but not revoked, may be renewed under this section, provided that the suspension shall remain in effect upon renewal. All registrations expire at 12 midnight on the last day of the month posted on the registration. All registrations issued shall be renewed as follows:
(a)On or before the first of the month preceding the month posted on the registration, the department shall mail to each registrant at his or her registered premises, or at any other mailing address that the registrant has designated, an application to renew the registration.
(a) The application to renew the registration may be filed before the registration expires upon payment of the annual fee.
(b) For 60 days after the registration expires, the registration may be renewed upon payment of the annual renewal fee plus a penalty fee that shall be equal to 50 percent of the annual fee.
(c) Unless otherwise terminated, or unless renewed pursuant to subdivision (b) or (c), (a) or (b), a registration that is in effect on the month posted on the registration continues in effect through 12 midnight of the 60th day following the month posted on the registration, at which time it is automatically canceled.
(e)On or before the 10th day preceding the cancellation of a registration, the department shall mail a notice of cancellation to each registrant that has not either filed an application to renew its registration or notified the department of its intent not to do so. Failure to mail the renewal application in accordance with subdivision (a) or to mail the notice provided in this subdivision shall not continue the right to a registration.
(d) A registration that has been canceled pursuant to subdivision (d) (c) may be reinstated during the 30 days immediately following cancellation upon payment by cashier’s check or money order of the annual renewal fee, plus a penalty fee that shall be equal to 100 percent of the annual fee. A registration that has been canceled pursuant to subdivision (d) (d) and that has not been reinstated within 30 days pursuant to this subdivision is automatically revoked on the 31st day after the registration has been canceled.
(e) A renewal application shall not be deemed filed within the meaning of this section unless the document itself has been actually delivered to, and the required renewal fee has been paid at, any office of the department during office hours, or unless both the document and fee have been filed and remitted pursuant to Section 11003 of the Government Code.
(6) Evidence of the legal right to occupy and use an established location, or an immunity from prosecution for that occupancy or use pursuant to a local ordinance or ordinances, including, but not limited to, Measure D, approved by the voters of the City of Los Angeles at the May 21, 2013, general election, for the activities to be conducted if the desired registration is granted consistent with the provisions of this chapter and the regulations developed by the department.
(7) Documentation that the applicant will be in compliance with all local ordinances and regulations, including an entity granted immunity under Measure D, approved by the voters of the City of Los Angeles on at the May 21, 2013, ballot general election.
(b) In For applications for cultivation and processing, in addition to the requirements of subdivision (a), for cultivation and processing applicants, the application shall also include detailed operating procedures for cultivation, extraction and infusion methods, transportation of products, inventory procedures, procedures for quality control, and onsite testing of product for potential contaminants.
Upon receipt of an application for a registration and the applicable fee, the department shall make a thorough investigation to determine whether the applicant and the premises for which a registration is applied qualify for the registration and whether the provisions of this chapter have been complied with, and shall investigate all matters connected therewith which may affect the public welfare and morals. The department shall deny an application for a registration if either the applicant or the premises for which a registration is applied do not qualify for a registration under this chapter. The department further shall deny an application for a registration if the department finds that issuance of that registration would tend to create a law enforcement problem. The department may place reasonable conditions upon registrations if grounds exist for denial of the registration, and the department finds those grounds may be removed by the imposition of those conditions conditions, provided that the requirements set forth in paragraphs (6) and (8) of subdivision (b) of Section 26040 shall not be waived.
A physician shall not recommend medical cannabis to a patient while the physician is a mandatory commercial registrant, or an officer, director, owner, member, shareholder, employee, or financial beneficiary of a mandatory commercial registrant.
(a) The actions of a mandatory commercial registrant or provisional registrant, its employees, and its agents, permitted pursuant to a mandatory commercial registration or provisional registration issued by the department or otherwise permitted by this chapter, that are conducted in accordance to the requirements of this chapter and regulations adopted pursuant to the authority granted by this chapter, are not unlawful under state law and shall not be an offense subject to arrest, prosecution, or other sanction under state or local law, or be subject to a civil fine or be a basis for seizure or forfeiture of assets under state or local law.
(b) The actions of a person who, in good faith and upon appropriate investigation, allows his or her property to be used by a mandatory commercial registrant or provisional registrant, its employees, and its agents, as permitted pursuant to a mandatory commercial registration or provisional registration issued by the department or otherwise permitted by this chapter, are not unlawful under state law and shall not be an offense subject to arrest, prosecution, or other sanction under state or local law, or be subject to a civil fine or be a basis for seizure or forfeiture of assets under state or local law.
(c) This section shall not be deemed to limit the authority or remedies of a city or county under any provision of law, including, without limitation, Section 26010 or 26060 of this code or Section 7 of Article XI of the California Constitution.
(a) A registrant shall not cultivate, process, store, manufacture, test, transport, or sell medical cannabis in the state unless accurate records are kept at the registered premises of the growing, processing, storing, manufacturing, testing, transporting, or selling by the registrant in the state. These records shall include the name and address of the supplier of any cannabis or cannabis products received or possessed by the registrant, the location at which the cannabis was cultivated, the amount of cannabis received, the form in which it is received, the name of the employee receiving it, and the date of receipt. These records shall further include receipts for all expenditures incurred by the registrant, registrant and banking records, if any, for all funds obtained or expended in the performance of any activity under the authority of the registration, provided that a registrant registered to act at more than one premises may keep all records at one of the registered premises. Required records shall be kept for a period of three seven years from the date of the transaction.
(b) The department and any state or local agency may make any examination of the books and records of any registrant and may visit and inspect the premises of any registrant that the department may deem necessary to perform its duties under this chapter.
(c) Any books or records requested by the department or any state or local agency shall be provided by the registrant no later than at the end of the next business day after the request is made.
(d) The department or any state or local agency may enter and inspect the premises of any facility operated by a registrant 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 chapter or any local ordinance.
(e) In the event that the registrant or any employee of the registrant refuses, impedes, obstructs, or interferes with an inspection pursuant to this chapter or local ordinance, or if the registrant fails to maintain or provide the books and records required by this section, the registration may be summarily suspended pursuant to paragraph (2) of subdivision (i) of Section 26022 and the department shall directly commence proceedings for the revocation of the registration in accordance with this chapter.
(b) (1) A patient who cultivates, possesses, stores, manufactures, or transports cannabis exclusively for his or her personal medical use and who does not sell or distribute sell, distribute, donate, or provide cannabis to any other person is not considered a commercial registrant and is exempt from mandatory commercial registration under this chapter.
(2) A primary caregiver who cultivates, possesses, stores, manufactures, transports, or provides cannabis exclusively for the personal medical purposes of a specified qualified patient 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 sell or distribute cannabis 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 considered a commercial registrant and is exempt from mandatory commercial registration under this chapter.
(a) The department shall request that every city or county, county provide the department with a list of approved entities providing medical cannabis to qualified patients and caregivers within the city or county’s jurisdiction, if any, the location at which the entity is operating, and the names of the persons who operate the entity. Unless If the jurisdiction represents that the entity has not been operating in compliance with local laws and regulations, or does not have has limited immunity under local laws, including, but not limited to, Measure D, approved by the voters of the City of Los Angeles at the May 21, 2013, general election, the department shall issue a provisional registration to the entity until the time that the entity’s application for mandatory commercial registration has been approved or denied under this chapter, but no later than 90 days after the department begins accepting applications for mandatory commercial registration.
(b) The department shall issue a provisional registration to individuals and entities that the department determines were, during the six months prior to January 1, 2015, regularly cultivating or distributing medical cannabis collectively or cooperatively in full compliance with paragraphs A and B of Section IV of the Guidelines for Security and Non-Diversion of Marijuana Grown for Medical Use, issued by the Department of Justice in August 2008, and any applicable local ordinance, to continue to do so until such time as the registrant’s application for mandatory commercial registration has been approved or denied under this chapter, but no later than 90 days after the department begins accepting applications for mandatory commercial registration. In determining compliance, the department shall consider any complaints or actions made or brought by a city or county against the individual or entity. To qualify, provisional registrants shall be required to disclose to the department the following information in writing on or before January 20, 2015, in order to obtain provisional registration:
(2) The common street address and assessor’s parcel number of the property at which the registrant conducts any activity under the authority of the registration.
(3) The common street address and assessor’s parcel number of the property at which any cultivation activity was or is to be conducted.
(4) For the six months prior to January 1, 2015, the quantity of cannabis cultivated at a location and the quantity expected to be cultivated from January 1, 2015, to June 30, 2015, inclusive. The registrant shall make its records of current activity and activity for the six months prior to January 1, 2015, available to the department upon request.
(d) Notwithstanding any other provision of this section, the department shall not issue a provisional registration to any individual or entity, or for any premises, against whom there are pending state or local administrative or judicial proceedings or actions initiated by a city or county under any applicable local ordinance or who has been determined through those proceedings to have violated any applicable local ordinance.
Entities that are provided immunity under Measure D, approved by the voters of the City of Los Angeles on at the May 21, 2013, ballot, general election, shall be considered the equivalent of entities that are registered, permitted, or licensed as a medical marijuana business, dispensary, or other entity involved in providing medical marijuana to patients under a local ordinance and shall be considered in compliance with a local ordinance for the purposes of the implementation of the act adding this section and any regulations promulgated by the department.
In addition to other regulations adopted by the department pertaining to mandatory commercial registrants and without limiting the authority of a city or a county pursuant to Section 26010 or subdivision (b) of Section 26060, Section 7 of Article XI of the California Constitution or any other law, the department shall adopt regulations regarding the minimum standards for the operation of dispensaries that establish all of the following:
(c) The maximum number of dispensaries that may operate in a city or county or the unincorporated areas of a county based on population, taking into consideration the distances that patients in rural areas may need to travel in order to reach a dispensary and the availability of public transportation in both rural and urban areas. The number established by the department for any city or county may not exceed the number of dispensaries allowed by any applicable local ordinance.
(d) Minimum educational and testing requirements for dispensary staff, including background checks, and a requirement that every dispensary maintain dedicated, licensed security staff both inside and outside the dispensary.
(b) Nothing in this chapter shall prevent a city, county, or city and county from enforcing a zoning ordinance or law of general application. or in Article 2 (commencing with Section 11357) or Article 2.5 (commencing with Section 11362.7) of Chapter 6 of Division 10 of the Health and Safety Code shall prevent a city, county, or city and county from adopting or enforcing a zoning ordinance or other law, ordinance, or regulation that bans or regulates the location, operation, or establishment of a mandatory commercial registrant or other individual, partnership, joint venture, association, limited liability company, corporation, estate, trust, receiver, syndicate, or any other group or combination thereof acting as a unit, that cultivates, processes, possesses, stores, manufactures, tests, transports, distributes, provides, donates, or sells medical cannabis.
(a) Commencing January 1, 2016, any product containing cannabis that is distributed, except in the case of a primary caregiver distributing to a qualified patient, or offered for sale shall comply with the testing and labeling testing, labeling, and food safety requirements established through regulation by the department.
(b) No person shall steal or fraudulently use a mandatory commercial registrant identification certificate or registration or other registrant’s identification card or registration issued by the department to acquire, cultivate, transport, produce, possess for sale, sell, provide, donate, or distribute cannabis.
(1) For the first offense, imprisonment in a county jail for no more than six months or a fine not to exceed one five thousand dollars ($1,000), ($5,000), or both.
(2) For a second or subsequent offense, imprisonment in a county jail for no more than one year or a fine not to exceed one eight thousand dollars ($1,000), ($8,000), or both.
Any person operating an unregistered facility, building, structure, or location where cannabis is being commercially cultivated, manufactured, or possessed for sale in violation of this chapter may be subject to civil penalties of up to twenty-five thousand dollars ($25,000) for each violation, and the department may order the destruction of any cannabis associated with that violation. Each day of operation shall constitute a separate violation of this section. Any civil fines collected pursuant to this section shall be deposited into the General Fund pursuant to Section 26028.
The director or any district attorney, county counsel, city attorney, or city prosecutor may bring an action in the name of the people of the State of California to enjoin a violation or the threatened violation of any provision of this chapter, including, but not limited to, a registrant’s failure to correct objectionable conditions following notice or as a result of any rule promulgated pursuant to this chapter. The action shall be brought in the county in which the violation occurred or is threatened to occur. Any proceeding brought pursuant to this chapter shall conform to the requirements of Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure.
(a)A state or local law enforcement agency shall immediately notify the department of any arrests made for violations over which the department has jurisdiction which involve a registrant or registered premises. Notice shall be given within 10 days of the arrest. The department shall promptly cause an investigation to be made as to whether grounds exist for suspension or revocation of a registration of the registrant.
(b)The department shall not open or add an entry to a file or initiate an investigation of a registrant or suspend or revoke a registration in either of the following circumstances:
(1)Solely because the registrant or an agent acting on behalf of the registrant has reported to a state or local law enforcement agency that suspected controlled substance violations have taken place on the registered premises.
(2)Solely based on activities constituting violations described in a report made under paragraph (1), unless the violations reported occurred with the actual knowledge and willful consent of the registrant.
To claim the protections of this chapter and to maintain a valid mandatory commercial registration, a registrant shall ship transport medical cannabis products only to the registered facilities of a mandatory commercial registrant and only in response to a request for a specific quantity and variety from a registered dispensary or mandatory commercial that registrant.
(b) Any vehicle transporting medical cannabis products shall travel directly from the facilities of the mandatory commercial registrant to the registered facilities of the registrant authorized to receive the shipment.
This chapter shall not be construed to authorize or permit any registrant to transport, or cause to be transported, cannabis or cannabis products outside the state.
(a) (1) In addition to any authority otherwise provided by law, the board of supervisors of any county may impose, by ordinance, a tax on the privilege of cultivating, dispensing, producing, processing, preparing, storing, providing, donating, selling, or distributing cannabis or cannabis products by a mandatory commercial registrant operating pursuant to Chapter 18 (commencing with Section 26000) of Division 9 of the Business and Professions Code. The tax may be imposed for general governmental purposes or for purposes specified in the ordinance by the board of supervisors.
(b) In addition to any other method of collection authorized by law, the board of supervisors may provide for 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.
(d) For purposes of this section, “cannabis” and “cannabis products” shall have the meanings set forth in Section 26001 of the Business and Professions Code.
SEC. 9.Chapter 4 (commencing with Section 7294) is added to Part 1.7 of Division 2 of the Revenue and Taxation Code, to read:
4.Local Medical Marijuana Taxes
1.Counties Medical Marijuana Tax
(a)Notwithstanding any other law, the board of supervisors of any county may levy, increase, or extend a transactions and use tax for tangible personal property that is medical marijuana or medical marijuana-infused products for general purposes if the ordinance proposing that tax is approved by a two-thirds vote of all members of the board of supervisors and the tax is approved by a majority vote of the qualified voters of the county voting in an election on the issue. The board of supervisors may levy, increase, or extend more than one transactions and use tax under this section, if the adoption of each tax is in the manner prescribed in this section.
(b)(1)The transactions and use tax shall conform to Part 1.6 (commencing with Section 7251).
(2)Notwithstanding Section 7251.1, the tax rate authorized by this section shall not be considered for purposes of the combined rate established by that section.
7294.5.
(a)Notwithstanding any other law, the board of supervisors of any county may levy, increase, or extend a transactions and use tax for tangible personal property that is medical marijuana or medical marijuana-infused products for specific purposes. The tax may be levied, increased, or extended for the purpose for which it is established, if all of the following requirements are met:
(1)The ordinance proposing that tax is approved by a two-thirds vote of all members of the board of supervisors and is subsequently approved by a two-thirds vote of the qualified voters of the county voting in an election on the issue.
(2)(A)The transactions and use tax conforms to the Transactions and Use Tax Law Part 1.6 (commencing with Section 7251).
(B)Notwithstanding Section 7251.1, the tax rate authorized by this section shall not be considered for purposes of the combined rate established by that section.
(3)The ordinance includes an expenditure plan describing the specific projects for which the revenues from the tax may be expended.
(b)A county shall be deemed to be an authority for purposes of Chapter 1 (commencing with Section 55800) of Part 3 of Division 2 of Title 5 of the Government Code.
7294.6.
Notwithstanding any other law, the combined rate of all taxes imposed in any county pursuant to this article and pursuant to Article 2 (commencing with Section 7295) shall not exceed the rate of 5 percent.
2.Cities Medical Marijuana Tax
(a)Notwithstanding any other law, the governing body of any city may levy, increase, or extend a transactions and use tax for tangible personal property that is medical marijuana or medical marijuana-infused products for general purposes if the ordinance proposing that tax is approved by a two-thirds vote of all members of that governing body and the tax is approved by a majority vote of the qualified voters of the city voting in an election on the issue. The governing body may levy, increase, or extend more than one transactions and use tax under this section, if the adoption of each tax is in the manner prescribed in this section.
7295.5.
Notwithstanding any other law, the governing body of any city may levy, increase, or extend a transactions and use tax for tangible personal property that is medical marijuana or medical marijuana-infused products for specific purposes. The tax may be levied, increased, or extended for the purpose for which it is established, if all of the following requirements are met:
(a)The ordinance proposing that tax is approved by a two-thirds vote of all members of the governing body and is subsequently approved by a two-thirds vote of the qualified voters of the city voting in an election on the issue.
(b)(1)The transactions and use tax conforms to the Transactions and Use Tax Law Part 1.6 (commencing with Section 7251).
(c)The ordinance includes an expenditure plan describing the specific projects for which the revenues from the tax may be expended.
7295.6.
(a)The authority of a city to impose transactions and use taxes under Sections 7295 and 7295.5 shall not exceed the rate of 2 percent.
(b)An ordinance proposing a tax shall contain a provision that any person subject to a transactions and use tax under a county ordinance shall be entitled to credit against the payment of taxes due under that ordinance in the amount of transactions and use tax due to any city in the county.