The Medical Cannabis Regulation and Safety Act (MCRSA) provides for the licensure and regulation of commercial medical cannabis activity by various state entities. The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), an initiative measure enacted by the approval of Proposition 64 at the November 8, 2016, statewide general election, provides for the licensure and regulation of commercial adult marijuana activities by various state agencies. authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities. MAUCRSA generally divides responsibility for the state licensure and regulation of commercial cannabis activity among the Department of Consumer Affairs, the Depart of Food and Agriculture, and the State Department of Public Health and requires those state licensing authorities to begin issuing licenses by January 1, 2108. AUMA authorizes the Legislature to amend its provisions with a ²/₃ vote of both houses to further its purposes and intent.

MAUCRSA requires an applicant for a state license under MCRSA MAUCRSA to provide to the licensing authority specified information, including a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate. AUMA generally requires an applicant for a state license under AUMA to provide to the licensing authority the same information that an applicant would provide for a state license under MCRSA described above, except as provided.

This bill would require an applicant for a state license under MCRSA or AUMA MAUCRSA to provide a statement that the applicant employs, or will employ within one year of receiving a license, an employee who has successfully completed a federal Occupational Safety and Health Administration 10-hour general industry course. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program.

The bill would declare that its provisions further specified purposes and intent of AUMA.

The Medical Cannabis Regulation and Safety Act (MCRSA) provides for the licensure and regulation of commercial medical cannabis activity by various state entities. The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), an initiative measure enacted by the approval of Proposition 64 at the November 8, 2016, statewide general election, provides for the licensure and regulation of commercial adult marijuana activities by various state agencies.

MCRSA requires an applicant for a state license under MCRSA to provide to the licensing authority specified information, including a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate. AUMA generally requires an applicant for a state license under AUMA to provide to the licensing authority the same information that an applicant would provide for a state license under MCRSA described above, except as provided.

This bill would require an applicant for a state license under MCRSA or AUMA to provide a statement that the applicant employs, or will employ within one year of receiving a license, an employee who has successfully completed an OSHA 30-hour a federal Occupational Safety and Health Administration 10-hour general industry course. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program.

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.

AUMA authorizes the Legislature to amend the act to further the purposes and intent of the act with a ²/₃ vote of the membership of both houses of the Legislature.

The bill would declare that its provisions further specified purposes and intent of AUMA.

The Medical Cannabis Regulation and Safety Act (MCRSA) provides for the licensure and regulation of commercial medical cannabis activity by various state entities. The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), an initiative measure enacted by the approval of Proposition 64 at the November 8, 2016, statewide general election, provides for the licensure and regulation of commercial adult marijuana activities by various state agencies. AUMA generally requires those state licensing authorities to begin issuing licenses by January 1, 2018.

MCRSA requires an applicant for a state license under MCRSA to provide to the licensing authority specified information, including a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate. AUMA generally requires an applicant for a state license under AUMA to provide to the licensing authority the same information that an applicant would provide for a state license under MCRSA described above, except as provided.

This bill would require an applicant for a state license under MCRSA or AUMA that does not have a specified collective bargaining agreement to provide a statement that the applicant employs, or will employ within one year of receiving a license, an employee who has successfully completed an OSHA 30-hour general industry course. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program.

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.

AUMA authorizes the Legislature to amend the act to further the purposes and intent of the act with a ²/₃ vote of the membership of both houses of the Legislature.

The bill would declare that its provisions further specified purposes and intent of AUMA.

Under existing law, it is unlawful to discharge or discriminate against an employee for making a complaint regarding employee safety or health, instituting or testifying in a proceeding under his or her rights, or participating in an occupational health and safety committee. Existing law makes it a misdemeanor for an employer to willfully refuse to rehire, promote, or otherwise restore an employee who has been determined to be eligible for rehiring or promotion, as specified.

This bill would make nonsubstantive changes to these provisions.

SENATE COMMITTEE ON

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

AB 1700 (Cooper) - Adult-use cannabis and medicinal cannabis: license application: OSHA training

This bill does not meet the criteria for referral to the Suspense File.

Bill Summary:

AB 1700 would require an applicant for a cannabis license to provide a statement to the licensing entity that the applicant will have an employee who has taken a specified Occupational Safety and Health Administration course.

Fiscal Impact:

• One-time costs under $5,000 for the Bureau of Cannabis Control to make the licensing system changes necessary (Cannabis Control Fund).
• Similar costs are anticipated for the Department of Public Health and the Department of Food and Agriculture (Cannabis Control Fund).

Background:

The Medical Cannabis Regulation and Safety Act (MCRSA) was enacted by the legislature to regulate the production and sale of medical cannabis. The MCRSA created a regulatory structure and licensing requirements for a variety of entities involved in the production, distribution, and sale of medical cannabis.

The Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA, Proposition 64 of 2016) legalized the sale, possession, and use of marijuana for individuals over the age of 21. The AUMA created a regulatory structure for the recreational marijuana industry, similar to that created under the MCRSA, but with some differences in requirements.

SB 94 (Committee on Budget and Fiscal Review, Statutes of 2017) consolidated and harmonized the requirements of the two bodies of law relating to both medicinal and recreational cannabis (and changed the official terminology to cannabis).

Proposed Law:

AB 1700 would require an applicant for a cannabis license to provide a statement to the licensing entity that the applicant will have an employee who has taken a specified Occupational Safety and Health Administration course.

Related Legislation:

There are a number of other bills that generally relate to cannabis and its regulation that will be heard in this committee.

Staff Comments:

By requiring the statement by the employer to submitted under penalty of perjury, the bill would create a state-mandated local program. Under the California Constitution, local agency costs relating to crimes and infractions are not reimbursable by the state.

-- END --

SENATE COMMITTEE ON

BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT

Senator Jerry Hill, Chair

2017 - 2018 Regular

Bill No: Hearing Date: June 26, 2017

Subject:

SUMMARY:

Requires an applicant for a medical cannabis license to provide a statement that the applicant employs, or will employ within one year of receiving a license, an employee who has successfully completed an OSHA 10-hour general industry course.

Existing law:

1. Establishes the Bureau of Marijuana Control (Bureau) under the Department of Consumer Affairs to regulate the medical and recreational cannabis industry. (Business and Professions Code (BPC) § 26010)
2. Delegates cannabis regulatory responsibilities as follows: (BPC § 26012)
   1. The Bureau shall create, issue, renew, discipline, suspend, or revoke licenses for the transportation, storage unrelated to manufacturing activities, distribution, and sale of cannabis.
   2. The Department of Food and Agriculture (DFA) shall have the authority to create, issue, and suspend or revoke cultivation licenses.
   3. The State Department of Public Health (DPH) shall have the authority to create, issue, and suspend or revoke manufacturing and testing licenses.
3. Requires an applicant for a state medical cannabis license to do all of the following: (BPC § 19322)
   1. Submit fingerprint and related information required by the Department of Justice for the purpose of obtaining state and federal criminal records for all owners of the business requesting a license, as specified.
   2. Provide evidence of the legal right to occupy and use the proposed location where the commercial cannabis activity will occur.
   3. Provide evidence that the proposed location is in compliance with location requirements.
   4. Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.
   5. 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. “Employee” does not include a supervisor, and “supervisor” means an individual having authority, in the interest of the applicant, 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.
   6. Provide the applicant’s valid seller’s permit number or indicate that the applicant is currently applying for a seller’s permit.
   7. Provide any other information required by the licensing authority.
   8. For an applicant seeking a cultivation license, provide a statement declaring the applicant is an “agricultural employer,” to the extent not prohibited by law.
   9. Pay all applicable fees required for licensure by the licensing authority.
   10. Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.

This bill:

1. Requires an applicant for a state medical cannabis license to provide a statement that the applicant employs, or will employ within one year of receiving a license, an employee who has successfully completed an Occupational Safety and Health Administration (OSHA) 10-hour general industry course based on the federal OSHA regulations, as those provisions read on January 1, 2017.
2. Defines “employee” to not include a supervisor.
3. Makes technical changes.
4. Makes legislative findings and declarations that this bill furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act because it enacts protections for employees of licensees that are in addition to the protections provided for in the Control, Regulate and Tax Adult Use of Marijuana Act.

FISCAL EFFECT:

This bill is keyed fiscal by Legislative Counsel. According to the Assembly Appropriations Committee analysis dated May 10, 2017, this bill has minor and absorbable costs to the Bureau to draft regulations, and a $3,000 projected information technology cost for minor configuration changes (Marijuana Control Fund).

COMMENTS:

1. Purpose. This bill is sponsored by the United Food and Commercial Workers, Western States Council. According to the Author’s office, “Over the past year, as the growth of marijuana businesses in California multiples, we have also witnessed instances of worker abuse, especially women working in the fields and dispensaries, becoming victims of sexual harassment and at times workplace violence.

“Last year, the Center for Investigative Reporting uncovered horrific practices by some marijuana operators to completely take advantage of uninformed workers, especially young women, to work in isolated environments that made them vulnerable to physical abuse and harassment.

“The marijuana industry has inconsistent standards in the workplace. This bill will provide, at minimum, a clear orientation of worker’s rights, and more importantly, the responsibility of the employer to protect an employee’s health and safety at the workplace.”

1. Cannabis Regulatory Background. The Medical Cannabis Regulation and Safety Act (Act), establishes a comprehensive system to control and regulate the cultivation, distribution, transport, storage, manufacturing, processing, and sale of medical cannabis and medical cannabis products beginning January 1, 2018.

Licensing responsibilities are delegated as follows:

• The Bureau shall create, issue, renew, discipline, suspend, or revoke licenses for the transportation, storage unrelated to manufacturing activities, distribution, and sale of cannabis.
• DFA shall have the authority to create, issue, and suspend or revoke cultivation licenses.
• DPH shall have the authority to create, issue, and suspend or revoke manufacturing and testing licenses.

Currently, an applicant for a cannabis license must submit a number of documents beyond the application itself to a state licensing authority. This bill further requires an applicant to provide a statement to a licensing authority that the applicant employs, or will employ within one year of receiving a license, an employee who has successfully completed an OSHA 10-hour general industry course.

There are presently no specific training requirements for cannabis employees.

1. OSHA Training. The United States Congress created OSHA in 1970 to assure safe and healthful working conditions for workers by setting and enforcing standards and by providing training, outreach, education and assistance. OSHA is part of the United States Department of Labor. OSHA offers guidance in a number of industries, including agriculture, healthcare, oil and gas, construction, and poultry processing. It offers training programs in construction, general industry, maritime, and disaster sites.

According to the OSHA Web site, the OSHA Outreach Training Program for General Industry provides training for workers and employers on the recognition, avoidance, abatement, and prevention of safety and health hazards in workplaces in general industry. OSHA uses the term "general industry" to refer to all industries not included in agriculture, construction or maritime. 

Individuals can attend a 10 or 30-hour class delivered by OSHA-authorized trainers. The 10-hour class is intended to provide workers with awareness of common job-related safety and health hazards, while the 30-hour class is more appropriate for supervisors or workers with some safety responsibility.

Both courses require two hours’ training on “Introduction to OSHA,” which includes workers’ rights, employer responsibilities, how to file a complaint, and worker safety and health resources. The 10-hour course then requires one hour each on the following:

• Walking and working surfaces, including fall protection
• Exit routes, emergency action plans, fire prevention plans, and fire protection
• Electrical
• Personal protective equipment
• Hazard communication.

The remaining course time must be spent on at least two of the following topics:

• Hazardous materials
• Materials handling
• Machine guarding
• Introduction to industrial hygiene
• Bloodborne pathogens
• Ergonomics
• Safety and health program
• Fall protection.

1. Center for Investigative Reporting Investigations. The Author’s office provided articles by the Center for Investigative Reporting justifying the need for this bill. These articles exposed allegations of sexual exploitation, harassment and assault, sex trafficking, rape, and workplace violence. It appears that all of these problems would be primarily addressed in the first two hours of the 10-hour OSHA General Industry class.
2. Related Legislation. AB 1686 (Gloria) requires a labor peace agreement statement to be signed, notarized, and electronically submitted for a state cannabis license. (Status: This bill is currently pending in the Senate Business, Professions and Economic Development Committee.)

AB 110 (Committee on Budget) merges the medical and adult use regulatory acts, renames the Bureau of Cannabis Control, and makes various changes to cannabis regulation. (Status: This bill is currently pending on the Assembly floor.)

SB 94 (Committee on Budget and Fiscal Review) merges the medical and adult use regulatory acts, renames the Bureau of Cannabis Control, and makes various changes to cannabis regulation. (Status: This bill has been ordered to engrossing and enrolling.)

1. Prior Legislation. The Control, Regulate and Tax Adult Use of Marijuana Act (Proposition 64) of 2016, regulated nonmedical cannabis and prohibits nonmedical marijuana products from being designed to be attractive to children or easily confused with commercially sold candy or foods that do not contain marijuana.

SB 643 (McGuire, Chapter 719, Statutes of 2015) set standards for the licensed cultivation and physician prescription of medical cannabis; establishes a track and trace program for the transportation of medical cannabis; and authorizes counties to impose a tax on medical cannabis. 

AB 266 (Bonta, Chapter 689, Statutes of 2015) among other mandates, prohibited medical cannabis packages and labels from being made to be attractive to children.

AB 243 (Wood, Chapter 688, Statutes of 2015) requires the DFA, Department of Pesticide Regulation, DPH, the Department of Fish and Wildlife, and the State Water Resources Control Board to promulgate regulations or standards relating to medical cannabis and its cultivation, as specified. This bill also established licensing fees, fines, and penalties. 

AB 266 (Bonta et al., Chapter 689, Statutes of 2015) established the Medical Cannabis Regulation and Safety Act for the licensure and regulation of medical cannabis and establishes the Bureau of Medical Cannabis Regulation within the DCA. 

1. Arguments in Support. The California Police Chiefs Association “is pleased to support AB 1700, which would increase cannabis worker safety knowledge and compliance. In 2014, our association embarked on a multi-year effort to create a statewide regulatory structure for medical cannabis. In doing so, one of our goals was to reduce the amount of illegal and dangerous activity occurring at cannabis cultivation, manufacturing and retail locations.

“Unfortunately, over the past year, as the growth of cannabis businesses in California multiplies, we are also witnessing an increase of reports related to horrific instances of employee abuse, especially women working in the fields and other cannabis businesses becoming victims of sexual harassment and at times workplace violence. Recently, the ‘Center for Investigative Reporting’ uncovered horrendous practices by some cannabis operators to take complete advantage of uninformed workers, especially young women, to work in isolated environments that made them vulnerable to physical abuse and harassment.

“The cannabis industry has inconsistent standards in the workplace. AB 1700 would require at least one employee of a cannabis business, within the first year of licensure, to take the Cal-OSHA online certification class. In doing so, AB 1700 furthers our goal of ensuring a compliant and well-regulated cannabis industry in California.”

1. Policy Concerns. This bill requires an employer, regardless of size or type of license, to agree to hire a single employee with training in “general industry,” which is, by definition, “not agriculture.” The cannabis industry has significant agriculture components. This trained employee would not be responsible for training others, nor would this person necessarily benefit from the majority of the training offered in the 10-hour course unless he or she is working in certain cannabis manufacturing or distribution professions.

This bill could be more narrowly tailored to require more appropriate training to the exact nature of the employee’s responsibilities and the concerns originally cited by the Author, or expanded to either require some percentage of all licensee’s employees to take such a course or require a supervisor-level course be taken by supervisors who are responsible for enforcing workplace conditions.

SUPPORT AND OPPOSITION:

Support:

United Food and Commercial Workers, Western States Council (Sponsor)

California Police Chiefs Association

Drug Policy Alliance

Opposition:

None on file as of June 20, 2017.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 1700

Author:(Cooper)

As Amended Ver:May 18, 2017

2/3 vote

SUMMARY: Requires an applicant for a state license under the Medical Cannabis Regulation and Safety Act (MCRSA) or the Adult Use of Marijuana Act (AUMA), to provide a statement that the applicant employs, or will employ within one year of receiving a license, an employee who has successfully completed an Occupational Safety and Health Administration (OSHA) 30-hour general industry course. Specifically, this bill:

Requires that applicants for a state license under MCRSA or the AUMA to provide a statement that the applicant employs, or will employ within one year of receiving a license, an employee who has successfully completed the OSHA 30-hour general industry course.

FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill would result in minor and absorbable costs to the Bureau of Medical Cannabis Regulation to draft regulations, and a $3,000 projected information technology cost for minor configuration changes (Marijuana Control Fund).

COMMENTS:

Purpose. This bill is sponsored by the United Food and Commercial Workers. According to the author, "In January of 2018, the State will begin to process and issue licenses to marijuana operators – it is estimated that the Bureau of Marijuana Control may receive anywhere between 15,000 to 35,000 applicants for consideration. For those who are approved to be licensed, it is in the best interest of the marijuana industry, its workforce and the State that at least one employee per licensed operator is proficient in the minimum standards protecting workers in the workplace, basic environmental and safety precautions, and sexual harassment and discrimination protections contained in the Cal-OSHA online 30-hour class for $179.

"The intent of this bill is to provide a basic foundation of knowledge and awareness for workers and employers to be informed of their responsibilities so that there are checks and balances to deter and prevent abuses of workers, especially young women at the workplace.

"The national media and local press have uncovered instances of sexual abuse and human trafficking in every aspect of the marijuana economic supply chain and this bill provides an opportunity for an employer within their first year operation to train one employee on general best-practices through the Cal-OSHA online 30-hour class for only $179."

There is no opposition on file.

Background. Applicants for Licensure. Current law prescribes 11 steps for licensure for marijuana related businesses. These include transmission of fingerprints, submission to a background check, and fees as well as a requirement that applicants with more than 20 employees seeking licensure to engage in marijuana related business must submit to the licensing authority a statement that the applicant will enter into or demonstrate that it has already entered into a labor peace agreement.

30 Hour General Industry OSHA Course. OSHA is an agency of the United States Department of Labor regulating safe and healthy work conditions by enforcing standards and providing training, education, and technical assistance to workers and employers. The OSHA 30-hour General Industry Outreach Training course is a comprehensive safety program designed for workers with safety responsibility. The course emphasizes hazard identification, avoidance, control, and prevention. Completion of the course includes a card for proof.

This bill requires that an applicant for marijuana related licensure under the AUMA and MCRSA employ an individual that has successfully completed an OSHA 30-hour general industry course, either at the time of application or within one year of employment.

Analysis Prepared by: Jimmy Fremgen / B. & P. / 916-319-3301 FN: 0000448

ASSEMBLY THIRD READING

ATR Bill Id:AB 1700

Author:(Cooper)

As Amended Ver:April 6, 2017

2/3 vote

SUMMARY: Requires an applicant for a state license under the Medical Cannabis Regulation and Safety Act (MCRSA) or the Adult Use of Marijuana Act (AUMA), that does not have a specified collective bargaining agreement, to provide a statement that the applicant employs, or will employ within one year of receiving a license, an employee who has successfully completed an OSHA 30-hour general industry course. Specifically, this bill:

Requires that applicants for a state license under MCRSA or the AUMA who do not have a specified collective bargaining agreement to provide a statement that the applicant employs, or will employ within one year of receiving a license, an employee who has successfully completed the Occupational Safety and Health Administration (OSHA) 30-hour general industry course.

FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill would result in minor and absorbable costs to the Bureau of Medical Cannabis Regulation to draft regulations, and a $3,000 projected information technology cost for minor configuration changes (Marijuana Control Fund).

COMMENTS:

Purpose. This bill is sponsored by the United Food and Commercial Workers. According to the author, "In January of 2018, the State will begin to process and issue licenses to marijuana operators – it is estimated that the Bureau of Marijuana Control may receive anywhere between 15,000 to 35,000 applicants for consideration. For those who are approved to be licensed, it is in the best interest of the marijuana industry, its workforce and the State that at least one employee per licensed operator is proficient in the minimum standards protecting workers in the workplace, basic environmental and safety precautions, and sexual harassment and discrimination protections contained in the Cal-OSHA online 30-hour class for $179 dollars.

"The intent of this bill is to provide a basic foundation of knowledge and awareness for workers and employers to be informed of their responsibilities so that there are checks and balances to deter and prevent abuses of workers, especially young women at the workplace.

"The national media and local press have uncovered instances of sexual abuse and human trafficking in every aspect of the marijuana economic supply chain and this bill provides an opportunity for an employer within their first year operation to train one employee on general best-practices through the Cal-OSHA online 30-hour class for only $179."

There is no opposition on file.

Background. Applicants for Licensure. Current law prescribes 11 steps for licensure for marijuana related businesses. These include transmission of fingerprints, submission to a background check, and fees as well as a requirement that applicants with more than 20 employees seeking licensure to engage in marijuana related business must submit to the licensing authority a statement that the applicant will enter into or demonstrate that it has already entered into a labor peace agreement.

30 Hour General Industry OSHA Course. OSHA is an agency of the United States Department of Labor regulating safe and healthy work conditions by enforcing standards and providing training, education, and technical assistance to workers and employers. The OSHA 30-hour General Industry Outreach Training course is a comprehensive safety program designed for workers with safety responsibility. The course emphasizes hazard identification, avoidance, control, and prevention. Completion of the course includes a card for proof.

This bill requires that an applicant for marijuana related licensure under the AUMA and MCRSA employ an individual that has successfully completed an OSHA 30-hour general industry course, either at the time of application or within one year of employment.

Analysis Prepared by: Jimmy Fremgen / B. & P. / 916-319-3301 FN: 0000361

Date of Hearing: May 10, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 1700

Author:(Cooper) – As Amended Ver:April 6, 2017

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill requires an applicant for a cannabis-related state license, that does not have a specified collective bargaining agreement, to provide a statement that the applicant employs, or will employ within one year of receiving a license, an employee who has successfully completed an Occupational Safety and Health Administration (OSHA) 30-hour general industry course.

FISCAL EFFECT:

Minor and absorbable costs to the Bureau of Medical Cannabis Regulation to draft regulations, and a $3,000 projected information technology cost for minor configuration changes (Marijuana Control Fund).

COMMENTS:

1. Purpose. The author asserts that the emergence of cannabis businesses in the legal market has raised serious concerns around employee safety, knowledge of worker rights, and employer responsibilities. This bill intends to address the issue by ensuring that each cannabis-related licensee that does not have a collective bargaining agreement in place employs at least one employee who has completed an OSHA 30-hour general industry course that addresses illness and injury prevention, personal protective equipment, and industrial hygiene, among other topics. This bill is sponsored by the United Food and Commercial Workers (UFCW).
2. Background. Pursuant to voter propositions, medical and non-medical use of cannabis (also called marijuana) is now legal in the state. Beginning on January 1, 2018, the state is to issue licenses for cultivation, manufacturing, retail sale, transportation, storage, delivery and testing of medical and non-medical cannabis. This bill would apply to licensees in all of those categories.

Analysis Prepared by: Lisa Murawski / APPR. / (916) 319-2081

Date of Hearing: April 27, 2017

ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT

Tony Thurmond, Chair

ABPCA Bill Id:AB 1700 (

Author:Cooper) – As Amended Ver:April 6, 2017

SUBJECT: Nonmedical marijuana and medical cannabis: license application: Cal OSHA training

SUMMARY: Requires an applicant for a state license as specified, that does not have a specified collective bargaining agreement, to provide a statement that the applicant employs, or will employ within one year of receiving a license, an employee who has successfully completed an Occupational Safety and Health Administration (OSHA) 30-hour general industry course. Specifically, this bill:

1. Provides if the applicant does not have a valid collective bargaining agreement that expressly provides for the wages, hours of work, and working conditions of employment, to provide a statement that the applicant employs, or will employ within one year of receiving a license, an employee who has successfully completed an OSHA 30-hour general industry course based on the federal OSHA regulations, as those provisions read on January 1, 2017.
2. Limits these provisions to those applying for a state license under the Medical Cannabis Regulation and Safety Act (MCRSA) or the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA).
3. Declares findings and declarations that these provisions further the purposes and intent of AUMA because it enacts protections for employees of licensees that are in addition to the protections provided for in AUMA.
4. Defines for purposes of these provisions “employee”, to have the same meaning as defined under AUMA.
5. Makes other minor clarifying and technical changes.

EXISTING LAW:

1. Provides under MCRSA for the licensure and regulation of commercial medical cannabis activity by various state entities.
2. Requires an applicant for a state license under MCRSA to provide to the licensing authority specified information, including a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.
3. Provides under AUMA for the licensure and regulation of commercial adult marijuana activities by various state agencies.
4. Requires as specified an applicant for a state license under AUMA to provide to the licensing authority the same information that an applicant would provide for a state license under MCRSA as specified, except as provided.
5. Authorizes the Legislature to amend AUMA to further the purposes and intent of the act with a 2/3 vote of the membership of both houses of the Legislature.

FISCAL EFFECT: Unknown

COMMENTS: The author argues in support that, “To protect work safety in the marijuana industry. This bill would require at least one employee of a marijuana business, within the first year of licensure, to take the Cal/OSHA online certification class. The class is $179 and 30 hours. The emergence of marijuana businesses in the legal market has raised serious concerns around employee safety, knowledge of worker rights, and employer responsibilities. The marijuana industry has inconsistent standards in the workplace."

The author further asserts, "This bill will provide, at minimum, a clear orientation of worker’s rights and more importantly the responsibility of the employer to protect an employee’s health and safety at the workplace.”

The Compassionate Use Act and Medical Marijuana Program

In 1996, California voters approved Proposition 215, otherwise known as the Compassionate Use Act (CUA), which protects qualified patients and primary caregivers from prosecution related to the possession and cultivation of cannabis for medical purposes, if recommended by a physician. The CUA also prohibits physicians from being punished or denied any right or privilege for making a medical cannabis (MC) recommendation to a patient. The CUA also makes findings and declarations, including encouragement of the federal and state government to implement a plan to provide for the safe and affordable distribution of cannabis to all in-need patients.

In an effort to increase access to MC by qualified patients and primary caregivers, and to provide protections to qualified patients and primary caregivers from prosecution for the possession and cultivation of MC, California enacted SB 420 (Vasconcellos), Chapter 85, Statutes of 2003, which established the Medical Marijuana Program (MMP). The MMP created a MC card program for patients to use on a voluntary basis, which can be used to verify that a patient or caregiver has authorization to possess, grow, transport, or use MC in California. Under the MMP, a person is required to obtain a recommendation for MC from an attending physician; written documentation of this recommendation is required to be submitted to the county of residence of the applicant in order to receive a MC card. The MC identification cards are intended to help law enforcement officers identify and verify that cardholders are able to cultivate, possess, and/or transport limited amounts of cannabis without being subject to arrest. Lastly, the MMP created protections for qualified patients and primary caregivers from prosecution for the formation of collectives and cooperatives for MC cultivation.

Since the state had not adopted a framework to provide for appropriate licensure and regulation of MC until 2015, there has been a proliferation of MC collectives and cooperatives that had been largely left to the enforcement of local governments. Consequently, a patchwork of local regulations has been created with little statewide involvement.

California Supreme Court affirms local control over Medical Cannabis

By exempting qualified patients and caregivers from prosecution for possessing, or from collectively or cooperatively cultivating MC, the CUA and the MMP essentially authorized the widespread cultivation and distribution of MC. These laws triggered the growth of MC dispensaries in many localities, and in response, local governments have sought to exercise their authority to regulate or ban activities relating to MC. After numerous court cases and years of uncertainty relating to the ability of local governments to control MC activities, particularly relating to the zoning and operation of MC dispensaries, the California Supreme Court, in City of Riverside v. Inland Empire Patients (2013) 56 Cal. 4^th 729, held that California's MC statutes do not preempt a local ban on facilities that distribute MC. The Supreme Court held that nothing in the CUA or the MMP expressly or implicitly limited the inherent authority of a local jurisdiction, by its own ordinances, to regulate the use of its land, including the authority to provide that facilities for the distribution of MC be prohibited from operating within its borders.

Medical Cannabis Regulation and Safety Act

In October 2015, nearly 20 years after the authorization of the use of medical cannabis (MC), Governor Jerry Brown signed into law a trio of bills [AB 243 (Wood), Chapter 688, Statutes of 2015, AB 266 (Bonta, Cooley, Jones-Sawyer, Lackey, and Wood), Chapter 689, Statutes of 2015, and SB 643 (McGuire), Chapter 719, Statutes of 2015] collectively known as the MCRSA.

MCRSA established, for the first time, a comprehensive statewide licensing and regulatory framework for the cultivation, manufacture, transportation, testing, distribution, and sale of MC to be administered by the newly established Bureau of Medical Cannabis Regulation (Bureau) within Department of Consumer Affairs (DCA), Department of Food and Agriculture (DFA), and the Department of Public Health (DPH), relying on each agency's area of expertise.

MCRSA vested in the:

• DCA and the Bureau the authority to issue licenses and regulate dispensaries, distributors, and transporters, and to provide oversight for the state’s regulatory framework;
• DPH the responsibility to license and regulate laboratories and manufacturers; and
• CDFA the responsibility to license and regulate cultivators.

MCRSA has clear licensing requirements for licensees who engage in commercial cannabis activity and those who operate unlawfully according to MCRSA are subject to prosecution. An important cornerstone of MCRSA is the preservation of local control through the requirement of dual authorization from both the state and local government in order to legally operate within the state.

Control, Regulate and Tax Adult Use of Marijuana Act

In the November 8, 2016 statewide general election, the voters of California passed Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), to legalize the recreational use of cannabis in the state by 2018. The initiative generally requires state licensing authorities to begin issuing licenses by January 1, 2018.

Under AUMA, the Department of Consumer Affairs (DCA) continues to serve as the lead regulatory agency for all cannabis, both medical and non-medical, and renames the Bureau of Medical Cannabis Regulation as the Bureau of Marijuana Control (Bureau). AUMA includes 19 different license types compared to the 17 in MCRSA and authorizes DCA and the Bureau, as the exclusive authority to create and regulate a license for transportation of cannabis. AUMA further authorizes the bureau to establish a comprehensive system to control and regulate the cultivation, distribution, storage, manufacturing, processing, and sale of cannabis products, in addition to transportation.

Medical and Recreational Cannabis frameworks in other states

As of last year, 28 states, the District of Columbia, and Guam allow MC programs. Even though California was the first to authorize the medical use of cannabis, it was the only state that allowed cannabis-use without a robust state regulatory framework until the passage of MCRSA. To date, eight states, Alaska, Colorado, Oregon, Washington, California, Nevada, Massachusetts, Maine, and the District of Columbia have legalized recreational cannabis.

Applicants for licensure

Current law prescribes 11 steps for licensure for marijuana related businesses. These include transmission of fingerprints, submission to a background check, and fees as well as a requirement that applicants with more than 20 employees seeking licensure to engage in marijuana related business must submit to the licensing authority a statement that the applicant will enter into or demonstrate that it has already entered into a labor peace agreement.

Under the MCRSA local governments may establish their own ordinances to regulate MC activity or choose to ban it altogether. For state licenses, entities may apply for a cultivation, manufacturing, dispensing, testing, distribution, or transport license and are prohibited from holding specific combinations of licenses. For example, testing licensees may not apply for any other license types, and distributors may only obtain an additional license to transport. However MCRSA does provide limited ability for operators to cultivate, manufacture, and dispense MC, also known as vertical integration, but limits cross licensure to two of three of those categories outside of this exception.

30 hour general industry OSHA course

OSHA is an agency of the United States Department of Labor regulating safe and healthy work conditions by enforcing standards and providing training, education, and technical assistance to workers and employers. The OSHA 30-hour General Industry Outreach Training course is a safety program designed for workers with safety responsibility. The course emphasizes hazard identification, avoidance, control, and prevention. Completion of the course includes a card for proof.

Arguments in Support

The United Food and Commercial Workers (UFCW) is the sponsor of this legislation and writes in support, “This bill will provide enhanced protections and awareness for workers in cultivation, manufacturing, testing, and at the retail level, around employee safety, knowledge of workers’ rights, and employer responsibilities. The Cal-OSHA Certification is both available online and in-class for $179, providing 30-hours of accreditation.

Over the past year, as the growth of cannabis businesses in California multiplies, we are also witnessing an increase of reports related to horrific instances of workers abuse, especially women working in the fields and other cannabis businesses, becoming victims of sexual harassment and at times workplace violence.

Last year, the “Center for Investigative Reporting”^[1] uncovered horrendous practices by some cannabis operators to take complete advantage of uninformed workers, especially young women, to work in isolated environments that made them vulnerable to physical abuse and harassment.

The state has a compelling public safety interest to ensure that these operators are complying with state and federal employment rules and regulations and employees are working in safe environments.”

No known opposition on file.

Related Legislation

AB 64 (Bonta, Cooley, Jones-Sawyer, Lackey, and Wood) of 2017 is pending before the Assembly Committee on Appropriations. AB 64 seeks to reconcile a number of differences between MCRSA and AUMA to provide clarity in regulation and enforcement of both medical and recreational cannabis.

AB 1686 (Gloria) of 2017 is pending before the Assembly Committee on Business and Professions. Under the MCRSA applicants with more than 20 employees seeking licensure to engage in marijuana related business must submit to the licensing authority a statement that the applicant will enter into or demonstrate that it has already entered into a labor peace agreement. AB 1686 would require that the applicant submit electronically a signed and notarized statement to fulfill this requirement.

REGISTERED SUPPORT / OPPOSITION:

Support

United Food and Commercial Workers (sponsor)

Opposition

None on file

Analysis Prepared by: Taylor Jackson / L. & E. / 916-319-2091

1. https://www.revealnews.org/article/in-secretive-marijuana-industry-whispers-of-abuse-and-trafficking/ ↑

Date of Hearing: April 25, 2017

ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS

Evan Low, Chair

ABPCA Bill Id:AB 1700

Author:(Cooper) – As Amended Ver:April 6, 2017

NOTE: This bill is double-referred, and if passed by this Committee, it will be referred to the Assembly Committee on Labor and Employment.

SUBJECT: Nonmedical marijuana and medical cannabis: license application: Cal OSHA training.

SUMMARY: Requires an applicant for a state license under the Medical Cannabis Regulation and Safety Act (MCRSA) or the Adult Use of Marijuana Act (AUMA), that does not have a specified collective bargaining agreement, to provide a statement that the applicant employs, or will employ within one year of receiving a license, an employee who has successfully completed an OSHA 30-hour general industry course.

EXISTING LAW:

1. Establishes the Bureau of Marijuana Control, also referred to as the Bureau of Medical Cannabis Regulation (Bureau), under the Department of Consumer Affairs (DCA), to establish a comprehensive system to control and regulate the cultivation, distribution, transport, storage, manufacturing, processing, and sale of cannabis products. (Business and Professions Code (BPC) Section 26000 et seq.; BPC Section 19302)
2. Sets requirements for licensure of marijuana related businesses. (BPC Section 19322)

THIS BILL:

1. Requires that applicants for a state license under MCRSA or the AUMA who do not have a specified collective bargaining agreement to provide a statement that the applicant employs, or will employ within one year of receiving a license, an employee who has successfully completed the Occupational Safety and Health Administration (OSHA) 30-hour general industry course.

FISCAL EFFECT: Unknown. This bill has been keyed fiscal by Legislative Counsel.

COMMENTS:

Purpose. This bill is sponsored by the United Food and Commercial Workers. According to the author, “In January of 2018, the State will begin to process and issue licenses to marijuana operators – it is estimated that the Bureau of Marijuana Control may receive anywhere between 15,000 – 35,000 applicants for consideration. For those who are approved to be licensed, it is in the best interest of the marijuana industry, its workforce and the State that at least one employee per licensed operator is proficient in the minimum standards protecting workers in the workplace, basic environmental and safety precautions, and sexual harassment and discrimination protections contained in the Cal-OSHA online 30 hour class for $179 dollars.

The intent of AB 1700 is to provide a basic foundation of knowledge and awareness for workers and employers to be informed of their responsibilities so that there is checks and balances to deter and prevent abuses of workers, especially young women at the workplace.

The national media and local press have uncovered instances of sexual abuse and human trafficking in every aspect of the marijuana economic supply chain and AB 1700 provides an opportunity for an employer within their first year operation to train one employee on general best-practices through the Cal-OSHA online 30 hour class for only $179.”

Background.

History of Legal Cannabis in California. In 1996, California voters passed Proposition 215, legalizing the use of medical cannabis (MC) in the state. In October 2015, nearly 20 years after the authorization of the use of MC, Governor Jerry Brown signed into law a trio of bills [AB 243 (Wood), Chapter 688, Statutes of 2015, AB 266 (Bonta, Cooley, Jones-Sawyer, Lackey, and Wood), Chapter 689, Statutes of 2015, and SB 643 (McGuire), Chapter 719, Statutes of 2015] collectively known as MCRSA. MCRSA established the state's first regulatory framework for MC. In 2016, the voters of California passed Proposition 64, the AUMA, to legalize the recreational use of cannabis in the state by 2018.

Under AUMA, the DCA continues to serve as the lead regulatory agency for all cannabis, both medical and non-medical, and renames the existing Bureau of Medical Cannabis Regulation as the Bureau of Marijuana Control. AUMA includes 19 different license types compared to the 17 in MCRSA and authorizes DCA (and the Bureau) the exclusive authority to create and regulate a license for transportation of cannabis.

Applicants for Licensure. Current law prescribes 11 steps for licensure for marijuana related businesses. These include transmission of fingerprints, submission to a background check, and fees as well as a requirement that applicants with more than 20 employees seeking licensure to engage in marijuana related business must submit to the licensing authority a statement that the applicant will enter into or demonstrate that it has already entered into a labor peace agreement.

30 Hour General Industry OSHA Course. OSHA is an agency of the United States Department of Labor regulating safe and healthy work conditions by enforcing standards and providing training, education, and technical assistance to workers and employers. The OSHA 30-hour General Industry Outreach Training course is a comprehensive safety program designed for workers with safety responsibility. The course emphasizes hazard identification, avoidance, control, and prevention. Completion of the course includes a card for proof.

This bill requires that an applicant for marijuana related licensure under the AUMA and MCRSA employ an individual that has successfully completed an OSHA 30-hour general industry course, either at the time of application or within one year of employment.

Current Related Legislation. AB 64 (Bonta, Cooley, Jones-Sawyer, Lackey, Wood) ) of the current legislative session seeks to reconcile a number of differences between MCRSA and AUMA to provide clarity in regulation and enforcement of both medical and recreational cannabis. STATUS: This bill was passed by the Assembly Committee on Business and Professions on April 18, 2017 and referred to the Committee on Appropriations.

AB 1686 (Gloria) ) of the current Legislative Session ,under the MRCSA applicants with more than 20 employees seeking licensure to engage in marijuana related business must submit to the licensing authority a statement that the applicant will enter into or demonstrate that it has already entered into a labor peace agreement. This bill would require that the applicant submit electronically a signed and notarized statement to fulfill this requirement.

ARGUMENTS IN SUPPORT:

The United Food and Commercial Workers write, “The cannabis industry has inconsistent standards in the workplace. This bill will provide, at minimum, a clear orientation of worker’s rights and more importantly the responsibility of the employer to protect an employee’s health and safety at the workplace. The state has a compelling public safety interest to ensure that these operators are complying with state and federal employment rules and regulations and employees are working in safe environments.”

ARGUMENTS IN OPPOSITION:

None on file.

REGISTERED SUPPORT:

United Food and Commercial Workers

REGISTERED OPPOSITION:

None on file

Analysis Prepared by: Jimmy Fremgen / B. & P. / 916-319-3301