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  AUGUST 1, 2016
	AMENDED IN SENATE  JUNE 23, 2016
	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 licensee to implement, as specified, an
employee training program for the licensee's employees regarding
compliance with MMRSA, as specified. The bill would require an
applicant with 20 or more employees to attest on the application that
the applicant will implement an employee training program approved
by the licensing authority within one year of licensure, as
specified, thereby modifying the crime of perjury and imposing a
state-mandated local program. The bill would require the licensing
authority to deny an application of an applicant with 20 or more
employees unless the applicant makes the above-mentioned attestation
on the application. The bill would require each licensing authority
to adopt standards for the approval of employee training 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 each licensing authority to charge a fee for approving
an employee training program, as specified. The bill would require
that the fees collected be deposited in the appropriate account
within the Medical Marijuana Regulation and Safety Act Fund. The bill
would authorize each licensing authority to adjust fees as needed
once a year to cover the costs of employee training program approval.
The bill would make these provisions operative on July 1, 2018.
   (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 shall not submit an application for a state
license issued by a licensing authority pursuant to this chapter
unless that person has received a license, permit, or authorization
from the 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, testing, transporter, or dispensary
license, provide a statement from the owner of real property or their
agent where the cultivation, distribution, manufacturing, testing,
transport, or dispensing of commercial medical cannabis activities
will occur, as proof to demonstrate the landowner has acknowledged
and consented to permit cultivation, distribution, manufacturing,
testing, transport, 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 valid seller's permit number issued
pursuant to Part 1 (commencing with Section 6001) of Division 2 of
the Revenue and Taxation Code or indicate that the applicant is
currently applying for a seller's permit.
   (8) Provide any other information required by the licensing
authority.
   (9) For an applicant seeking a cultivation license, provide a
statement declaring the applicant is an "agricultural employer," as
defined in the Alatorre-Zenovich-Dunlap-Berman Agricultural Labor
Relations Act of 1975 (Part 3.5 (commencing with Section 1140) of
Division 2 of the Labor Code), to the extent not prohibited by law.
   (10) Pay all applicable fees required for licensure by the
licensing authority.
   (11) Provide proof of a bond to cover the costs of destruction of
medical cannabis or medical cannabis products if necessitated by a
violation of licensing requirements.
   (b) For applicants seeking licensure to cultivate, distribute,
manufacture, test, or dispense medical cannabis or medical cannabis
products, the application shall also include a detailed description
of the applicant's operating procedures for all of the following, as
required by the licensing authority:
   (1) Cultivation.
   (2) Extraction and infusion methods.
   (3) The transportation process.
   (4) Inventory procedures.
   (5) Quality control procedures.
   (6) Security protocols. 
   (c) On and after July 1, 2018, an applicant with 20 or more
employees shall attest on the application that the applicant will
implement an employee training program approved by the licensing
authority within one year of licensure, pursuant to Section 19326.5.

   SEC. 2.    Section 19323 of the   Business
and Professions Code   is amended to   read: 
   19323.  (a) A licensing authority shall deny an application if the
applicant or the premises for which a state license is applied does
not qualify for licensure under this chapter or the rules and
regulations for the state license.
   (b) A licensing authority may deny an application for licensure or
renewal of a state license, or issue a conditional 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   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) The applicant has failed to provide information required by
the licensing authority.
   (4) 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.
   (5) 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.
   (6) 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.
   (7) 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 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.
   (8) 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.
   (9) The applicant or any of its officers, directors, owners,
employees, or authorized agents have failed to comply with any
operating procedure required pursuant to subdivision (b) of Section
19322.
   (10) Conduct that constitutes grounds for disciplinary action
pursuant to this chapter. 
   (c) On and after July 1, 2018, the licensing authority shall deny
an application of an applicant with 20 or more employees unless the
applicant attests on the application that the applicant will
implement an employee training program approved by the licensing
authority within one year of licensure, pursuant to Section 19326.5.
 
  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) On and after July 1, 2018, an applicant with 20 or more
employees shall attest on the application that the applicant will
implement an employee training program approved by the licensing
authority within one year of licensure, pursuant to Section 19326.5.
 
  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)  On and after July 1, 2018, the licensing authority shall deny
an application of an applicant with 20 or more employees unless the
applicant attests on the application that the applicant will
implement an employee training program approved by the licensing
authority within one year of licensure, pursuant to Section 19326.5.

  SEC. 3.  Section 19326.5 is added to the Business and Professions
Code, to read:
   19326.5.  (a) A licensee shall implement an employee training
program to educate, inform, and train the licensee's employees on
compliance with this chapter. A licensee may employ or contract with
a third-party provider to provide the employee training program. An
employee training program shall include, but is not limited to,
training on applicable statutory requirements, industry best
practices, occupational health and safety standards, and workplace
protections.
   (b) (1) Each licensing authority shall adopt standards for the
approval of employee training programs. Those standards shall
prohibit approval of an employee training program provided by
 a third-party provider that operates   or
through  an apprenticeship program approved by the Chief of the
Division of Apprenticeship Standards.
   (2) A licensing authority may approve a workplace training
organization as a third-party provider of an employee training
program. For purposes of this paragraph, a "workplace training
organization" is a labor union organization representing wage earners
or salaried employees for mutual aid and protection and for dealing
collectively with cannabis employers.  A licensing authority
shall not be limited to approving workplace training organizations as
third   -party providers of employee training programs.

   (c) A licensing authority shall revoke the license of any licensee
with 20 or more employees that fails to implement an employee
training program as required by this section within one year of
 licensure   licensure. 
   (d) Each licensing authority shall charge a fee for approving an
employee training program. 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. Total fees assessed shall not exceed the
reasonable regulatory costs. Each licensing authority may adjust fees
as needed, but no more than once per year, to generate sufficient
revenue to cover the costs of employee training program approval.
   (e) This section shall become operative on July 1, 2018.
  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.