Bill Text: CA AB26 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Medical cannabis.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2016-11-30 - From Senate committee without further action. [AB26 Detail]

Download: California-2015-AB26-Amended.html

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BILL NUMBER: AB 26	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 20, 2016
	AMENDED IN ASSEMBLY  JANUARY 25, 2016
	AMENDED IN ASSEMBLY  JANUARY 13, 2016
	AMENDED IN ASSEMBLY  JANUARY 4, 2016

INTRODUCED BY   Assembly Member Jones-Sawyer
   (Coauthor: Assembly Member Bonilla)

                        DECEMBER 1, 2014

   An act to amend Sections 19322 and 19323 of, and to add Section
19326.5 to, the Business and Professions Code, relating to medical
cannabis.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 26, as amended, Jones-Sawyer. Medical cannabis.
   (1) Existing law, the Compassionate Use Act of 1996, an initiative
measure enacted by the approval of Proposition 215 at the November
5, 1996, statewide general election, authorizes the use of marijuana
for medical purposes. Existing law, the Medical Marijuana Regulation
and Safety Act (MMRSA), enacted by the Legislature, establishes
within the Department of Consumer Affairs the Bureau of Medical
Marijuana Regulation, and provides for the state licensure and
regulation of certain commercial medical marijuana activities by the
Department of Consumer Affairs, the Department of Food and
Agriculture, or the State Department of Public Health, as specified.
MMRSA requires an applicant for state licensure to provide specified
information and a statement, signed by the applicant under penalty of
perjury, that the information is complete, true, and accurate. MMRSA
authorizes a state licensing authority to deny an application if
specified conditions are met, and requires a state licensee, among
other things, to obtain applicable local licenses prior to commencing
commercial cannabis activity and to keep accurate records of
commercial cannabis activity.
   This bill would require a state licensee to  institute and
maintain   implement, as specified,  a training
program for the licensee's agents and employees regarding compliance
with MMRSA, as  specified, and   specified. The
bill  would require  that an application for state
licensure   an applicant with 20 or more employees to
 include  in an application for state licensure  a
detailed description of the  applicant's program, 
 training program the applicant has implemented or will
implement,  thereby modifying the crime of perjury and imposing
a state-mandated local program. The bill would make the licensing
authority responsible for approving and regulating the programs 
instituted and maintained by licensees  and  3rd  
-party   providers of the programs. The bill  would
prohibit the licensing authority from approving a program provided by
or through certain apprenticeship programs.  The bill would
authorize the licensing authority to approve a workplace training
organization, as defined, as a 3rd-party provider.  The bill
would require a state licensing authority to deny the application of
an applicant that does not  have,   implement,
 or revoke the license of a state licensee that fails to
 institute or maintain,   implement within one
year of obtaining a license,  a program approved by the
licensing authority. This   authority or
provided by an approved 3rd-party provider.   The  bill
would require each state licensing authority to charge each training
program  instituted and maintained by a licensee  a fee, as
specified, to cover the costs for approving the training program.
 This   The bill would require each state
licensing authority to charge each 3rd-party provider of training
programs a fee, as   specified, to cover the costs for
approving the 3rd-party provider. The  bill would require that
the fees collected be deposited in the appropriate account within the
Medical Marijuana Regulation and Safety Act Fund.  This
  The  bill would authorize each licensing
authority to adjust fees as needed once a year to cover the costs of
training program  and 3rd-party provider  approval.
   (2) 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.  Section 19322 of the Business and Professions Code is
amended to read:
   19322.  (a) A person or entity shall not submit an application for
a state license issued by the department pursuant to this chapter
unless that person or entity has received a license, permit, or
authorization by a local jurisdiction. An applicant for any type of
state license issued pursuant to this chapter shall do all of the
following:
   (1) Electronically submit to the Department of Justice fingerprint
images and related information required by the Department of Justice
for the purpose of obtaining information as to the existence and
content of a record of state or federal convictions and arrests, and
information as to the existence and content of a record of state or
federal convictions and arrests for which the Department of Justice
establishes that the person is free on bail or on his or her own
recognizance, pending trial or appeal.
   (A) The Department of Justice shall provide a response to the
licensing authority pursuant to paragraph (1) of subdivision (p) of
Section 11105 of the Penal Code.
   (B) The licensing authority shall request from the Department of
Justice subsequent notification service, as provided pursuant to
Section 11105.2 of the Penal Code, for applicants.
   (C) The Department of Justice shall charge the applicant a fee
sufficient to cover the reasonable cost of processing the requests
described in this paragraph.
   (2) Provide documentation issued by the local jurisdiction in
which the proposed business is operating certifying that the
applicant is or will be in compliance with all local ordinances and
regulations.
   (3) Provide evidence of the legal right to occupy and use the
proposed location. For an applicant seeking a cultivator,
distributor, manufacturing, or dispensary license, provide a
statement from the owner of real property or their agent where the
cultivation, distribution, manufacturing, or dispensing commercial
medical cannabis activities will occur, as proof to demonstrate the
landowner has acknowledged and consented to permit cultivation,
distribution, manufacturing, or dispensary activities to be conducted
on the property by the tenant applicant.
   (4) If the application is for a cultivator or a dispensary,
provide evidence that the proposed location is located beyond at
least a 600-foot radius from a school, as required by Section
11362.768 of the Health and Safety Code.
   (5) Provide a statement, signed by the applicant under penalty of
perjury, that the information provided is complete, true, and
accurate.
   (6) (A) For an applicant with 20 or more employees, provide a
statement that the applicant will enter into, or demonstrate that it
has already entered into, and abide by the terms of a labor peace
agreement.
   (B) For the purposes of this paragraph, "employee" does not
include a supervisor.
   (C) For purposes of this paragraph, "supervisor" means an
individual having authority, in the interest of the licensee, to
hire, transfer, suspend, lay off, recall, promote, discharge, assign,
reward, or discipline other employees, or responsibility to direct
them or to adjust their grievances, or effectively to recommend such
action, if, in connection with the foregoing, the exercise of that
authority is not of a merely routine or clerical nature, but requires
the use of independent judgment.
   (7) Provide the applicant's seller's permit number issued pursuant
to Part 1 (commencing with Section 6001) of Division 2 of the
Revenue and Taxation Code or indicate that the applicant is currently
applying for a seller's permit.
   (8) Provide any other information required by the licensing
authority.
   (9) For an applicant seeking a cultivation license, provide a
statement declaring the applicant is an "agricultural employer," as
defined in the Alatorre-Zenovich-Dunlap-Berman Agricultural Labor
Relations Act of 1975 (Part 3.5 (commencing with Section 1140) of
Division 2 of the Labor Code), to the extent not prohibited by law.
   (10) For an applicant seeking licensure as a testing laboratory,
register with the State Department of Public Health and provide any
information required by the State Department of Public Health.
   (11) Pay all applicable fees required for licensure by the
licensing authority.
   (b) For applicants seeking licensure to cultivate, distribute, or
manufacture medical cannabis, the application shall also include a
detailed description of the applicant's operating procedures for all
of the following, as required by the licensing authority:
   (1) Cultivation.
   (2) Extraction and infusion methods.
   (3) The transportation process.
   (4) Inventory procedures.
   (5) Quality control procedures.
   (c) For  all applicants,   applicants with 20
or   more employees,  the application shall also
include a detailed description of the agent and employee training
program that the applicant has  instituted,  
implemented,  or will  institute,  
implement,  pursuant to Section 19326.5. A licensing authority
shall not approve an application unless the applicant's training
program  or the third-party provider of the applicant's training
program  is approved by the licensing authority. The licensing
authority shall not approve a training program provided, or proposed
to be provided, by or through an apprenticeship program approved by
the Chief of the Division of Apprenticeship Standards.
  SEC. 2.  Section 19323 of the Business and Professions Code is
amended to read:
   19323.  (a) The licensing authority shall deny an application if
either the applicant or the premises for which a state license is
applied does not qualify for licensure under this chapter.
   (b) The licensing authority may deny the application for licensure
or renewal of a state license if any of the following conditions
apply:
   (1) Failure to comply with the provisions of this chapter or any
rule or regulation adopted pursuant to this chapter, including, but
not limited to, any requirement imposed to protect natural resources,
instream flow, and water quality pursuant to subdivision (a) of
Section 19332.
   (2) Conduct that constitutes grounds for denial of licensure
pursuant to Chapter 2 (commencing with Section 480) of Division 1.5.
   (3) A local agency has notified the licensing authority that a
licensee or applicant within its jurisdiction is in violation of
state rules and regulation relating to commercial cannabis
activities, and the licensing authority, through an investigation,
has determined that the violation is grounds for termination or
revocation of the license. The licensing authority shall have the
authority to collect reasonable costs, as determined by the licensing
authority, for investigation from the licensee or applicant.
   (4) The applicant has failed to provide information required by
the licensing authority.
   (5) The applicant or licensee has been convicted of an offense
that is substantially related to the qualifications, functions, or
duties of the business or profession for which the application is
made, except that if the licensing authority determines that the
applicant or licensee is otherwise suitable to be issued a license
and granting the license would not compromise public safety, the
licensing authority shall conduct a thorough review of the nature of
the crime, conviction, circumstances, and evidence of rehabilitation
of the applicant, and shall evaluate the suitability of the applicant
or licensee to be issued a license based on the evidence found
through the review. In determining which offenses are substantially
related to the qualifications, functions, or duties of the business
or profession for which the application is made, the licensing
authority shall include, but not be limited to, the following:
   (A) A felony conviction for the illegal possession for sale, sale,
manufacture, transportation, or cultivation of a controlled
substance.
   (B) A violent felony conviction, as specified in subdivision (c)
of Section 667.5 of the Penal Code.
   (C) A serious felony conviction, as specified in subdivision (c)
of Section 1192.7 of the Penal Code.
   (D) A felony conviction involving fraud, deceit, or embezzlement.
   (6) The applicant, or any of its officers, directors, or owners,
is a licensed physician making patient recommendations for medical
cannabis pursuant to Section 11362.7 of the Health and Safety Code.
   (7) 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 or 12025.1 of the Fish and Game Code.
   (8) The applicant, or any of its officers, directors, or owners,
has been sanctioned by a licensing authority or a city, county, or
city and county for unlicensed commercial medical cannabis activities
or has had a license revoked under this chapter in the three years
immediately preceding the date the application is filed with the
licensing authority.
   (9) Failure to obtain and maintain a valid seller's permit
required pursuant to Part 1 (commencing with Section 6001) of
Division 2 of the Revenue and Taxation Code.
   (c) The licensing authority shall deny an application unless the
 applicant's  agent and employee training program
 that the applicant implements  is approved by the licensing
authority  or provided by an approved third-party provider 
pursuant to subdivision (c) of Section 19322.
  SEC. 3.  Section 19326.5 is added to the Business and Professions
Code, to read:
   19326.5.  (a) A licensee shall  institute and maintain
  implement  a training program to educate, inform,
and train the licensee's agents and employees on compliance with
this chapter.  The   A licensee shall implement
a training program by either instituting and maintaining a training
program or hiring a third-  party provider approved by the
state   licensing authority to provide a training program. A
 training program  instituted and maintained by a licensee
 shall be approved by the state licensing authority and shall
include, but is not limited to, training on applicable 
substantive legal   statutory  requirements,
industry best practices, occupational health and safety standards,
and  individual organizational or company policies. 
 workplace protections. 
   (b) (1) Each state licensing authority shall adopt standards for
the approval of training programs  and each  
instituted and maintained by a licensee and standards for the
approval of third-   party providers of training programs.
Each  state licensing authority shall be responsible for
approving and regulating training programs  and third-party
providers of training programs  relevant to their licensees.
   (2) A state licensing authority shall not approve a training
program provided, or proposed to be provided, by or through an
apprenticeship program approved by the Chief of the Division of
Apprenticeship Standards. 
   (3) A state licensing authority may approve a workplace training
organization as a third-party provider. For purposes of this
paragraph, a "workplace training organization" is a labor union
organization in good standing representing wage earners or salaried
employees for mutual aid and protection and for dealing collectively
with cannabis employers. 
   (c) A state licensing authority shall revoke the license of any
licensee that fails to  institute or maintain  
implement  a training program  approved pursuant to
  as required by  this  section. 
 section within one year of the licensee's obtaining a license.

   (d) (1) Each state licensing authority shall charge each training
program instituted and maintained by a licensee  a fee to
cover costs incurred for approving the training program pursuant to
this section.  Each state licensing authority shall charge each
third-party provider of training programs a fee to cover costs
incurred for approving the third-party provider pursuant to this
section.  Revenues collected pursuant to this subdivision shall
be deposited in the appropriate fee account within the Medical
Marijuana Regulation and Safety Act Fund established pursuant to
Section  19350 of the Business and Professions Code.
  19350.  Total fees assessed shall not exceed the
reasonable regulatory costs for training program  or third-party
provider  approval. Each licensing authority may adjust fees as
needed, but no more than once per year, to generate sufficient
revenue to cover the costs of training program  and third-party
provider  approval.
   (2) By July 1, 2018, revenue collected pursuant to this
subdivision shall be projected to fairly and proportionately generate
sufficient revenue to fully cover the costs of training program 
and third-party provider  approval.
  SEC. 4.  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.