AB 2980: Cannabis: premises: common space.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2018-08-31
The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, 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 requires an applicant for a cannabis license to provide a detailed diagram of the proposed premises wherein the license privileges will be exercised, including showing common or shared entryways. MAUCRSA defines premises for the purposes of the act to mean the designated structure or structures and land specified in the application for the license, as provided.
This bill would define premises as the area specified in the application wherein the license privileges are, or will be, exercised, as provided. The bill would require that provisions of MAUCRSA not be construed to prohibit two or more licensed premises from sharing common use areas wherein no license privileges will be exercised so long as all licensees comply with the requirements of the act, as specified.
This bill would incorporate additional changes to Section 26001 of the Business and Professions Code proposed by SB 829 to be operative only if this bill and SB 829 are enacted and this bill is enacted last.
This bill would incorporate additional changes to Section 26051.5 of the Business and Professions Code proposed by AB 2799 and AB 3261 to be operative only if this bill and either or both AB 2799 and AB 3261 are enacted and this bill is enacted last.
AUMA authorizes the Legislature to amend, by a majority vote, certain provisions of the act to implement specified substantive provisions, provided that the amendments are consistent with and further the purposes and intent of the act.
This bill would declare that its provisions implement specified substantive provisions of AUMA. The bill would also declare that its provisions further the purposes and the intent of the act.
The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, 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 requires an applicant for a cannabis license to provide a detailed diagram of the proposed premises wherein the license privileges will be exercised, including showing common or shared entryways. MAUCRSA defines premises for the purposes of the act to mean the designated structure or structures and land specified in the application for the license, as provided.
This bill would define premises as the area specified in the application wherein the license privileges are, or will be, exercised, as provided. The bill would require that provisions of MAUCRSA not be construed to prohibit two or more licensed premises from sharing common use areas wherein no license privileges will be exercised so long as all licensees comply with the requirements of the act, as specified.
This bill would incorporate additional changes to Section 26001 of the Business and Professions Code proposed by SB 829 to be operative only if this bill and SB 829 are enacted and this bill is enacted last.
This bill would incorporate additional changes to Section 26051.5 of the Business and Professions Code proposed by AB 2799 and AB 3261 to be operative only if this bill and either or both AB 2799 and AB 3261 are enacted and this bill is enacted last.
AUMA authorizes the Legislature to amend, by a majority vote, certain provisions of the act to implement specified substantive provisions, provided that the amendments are consistent with and further the purposes and intent of the act.
This bill would declare that its provisions implement specified substantive provisions of AUMA. The bill would also declare that its provisions further the purposes and the intent of the act.
The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, 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 requires an applicant for a cannabis license to provide a detailed diagram of the proposed premises wherein the license privileges will be exercised, including showing common or shared entryways. MAUCRSA defines premises for the purposes of the act to mean the designated structure or structures and land specified in the application for the license, as provided.
This bill would define premises as the area specified in the application wherein the license privileges are, or will be, exercised, as provided. The bill would require that provisions of MAUCRSA not be construed to prohibit two or more licensed premises from sharing common use areas wherein no license privileges will be exercised so long as all licensees comply with the requirements of the act, as specified.
AUMA authorizes the Legislature to amend, by a majority vote, certain provisions of the act to implement specified substantive provisions, provided that the amendments are consistent with and further the purposes and intent of the act.
This bill would declare that its provisions implement specified substantive provisions of AUMA. The bill would also declare that its provisions further the purposes and the intent of the act.
The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, 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 requires an applicant for a cannabis license to provide a detailed diagram of the proposed premises wherein the license privileges will be exercised, including showing common or shared entryways. MAUCRSA defines premises for the purposes of the act to mean the designated structure or structures and land specified in the application for the license, as provided.
This bill would define premises as the area specified in the application wherein the license privileges are, or will be, exercised, as provided. The bill would require that provisions of MAUCRSA not be construed to prohibit two or more licensed premises from sharing common use areas wherein no license privileges will be exercised so long as all licensees comply with the requirements of the act, as specified.
AUMA authorizes the Legislature to amend, by a majority vote, certain provisions of the act to implement specified substantive provisions, provided that the amendments are consistent with and further the purposes and intent of the act.
This bill would declare that its provisions implement specified substantive provisions of AUMA. The bill would also declare that its provisions further the purposes and the intent of the act.
For purposes of this division, the following definitions shall apply:
(a)A-license means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.
(b)A-licensee means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.
(c)Applicant means an owner applying for a state license pursuant to this division.
(d)Batch means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:
(1)Harvest batch. Harvest batch means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time.
(2)Manufactured cannabis batch. Manufactured cannabis batch means either of the following:
(A)An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.
(B)An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.
(e)Bureau means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.
(f)Cannabis means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. Cannabis does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, cannabis does not mean industrial hemp as defined by Section 11018.5 of the Health and Safety Code.
(g)Cannabis accessories has the same meaning as in Section 11018.2 of the Health and Safety Code.
(h)Cannabis concentrate means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the products potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
(i)Cannabis products has the same meaning as in Section 11018.1 of the Health and Safety Code.
(j)Child resistant means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.
(k)Commercial cannabis activity includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this division.
(l)Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
(m)Cultivation site means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.
(n)Customer means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physicians recommendation, or a primary caregiver.
(o)Day care center has the same meaning as in Section 1596.76 of the Health and Safety Code.
(p)Delivery means the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform.
(q)Director means the Director of Consumer Affairs.
(r)Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensees.
(s)Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.
(t)Edible cannabis product means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
(u)Fund means the Cannabis Control Fund established pursuant to Section 26210.
(v)Kind means applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.
(w)Labeling means any label or other written, printed, or graphic matter upon a cannabis product, upon its container or wrapper, or that accompanies any cannabis product.
(x)Labor peace agreement means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the states proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicants employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicants employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.
(y)License means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.
(z)Licensee means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.
(aa)Licensing authority means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.
(ab)Live plants means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.
(ac)Local jurisdiction means a city, county, or city and county.
(ad)Lot means a batch or a specifically identified portion of a batch.
(ae)M-license means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.
(af)M-licensee means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.
(ag)Manufacture means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.
(ah)Manufacturer means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.
(ai)Medicinal cannabis or medicinal cannabis product means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physicians recommendation.
(aj)Nursery means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.
(ak)Operation means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.
(al)Owner means any of the following:(1)A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.
(2)The chief executive officer of a nonprofit or other entity.
(3)A member of the board of directors of a nonprofit.
(4)An individual who will be participating in the direction, control, or management of the person applying for a license.
(am)Package means any container or receptacle used for holding cannabis or cannabis products.
(an)Person includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular.
(ao)Physicians recommendation means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code.
(ap)Premises means the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this subdivision shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.
(aq)Primary caregiver has the same meaning as in Section 11362.7 of the Health and Safety Code.
(ar)Purchaser means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.
(as)Sell, sale, and to sell include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.
(at)Testing laboratory means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:
(1)Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.
(2)Licensed by the bureau.
(au)Unique identifier means an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.
(av)Youth center has the same meaning as in Section 11353.1 of the Health and Safety Code.
SEC. 1.5.Section 26001 of the Business and Professions Code is amended to read:26001.For purposes of this division, the following definitions shall apply:
(a)A-license means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.
(b)A-licensee means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.
(c)Applicant means an owner applying for a state license pursuant to this division.
(d)Batch means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:
(1)Harvest batch. Harvest batch means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time.
(2)Manufactured cannabis batch. Manufactured cannabis batch means either of the following:
(A)An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.
(B)An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.
(e)Bureau means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.
(f)Cannabis means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. Cannabis does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, cannabis does not mean industrial hemp as defined by Section 11018.5 of the Health and Safety Code.
(g)Cannabis accessories has the same meaning as in Section 11018.2 of the Health and Safety Code.
(h)Cannabis concentrate means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the products potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
(i)Cannabis products has the same meaning as in Section 11018.1 of the Health and Safety Code.
(j)Child resistant means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.
(k)Commercial cannabis activity includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this division.
(l)Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
(m)Cultivation site means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.
(n)Customer means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physicians recommendation, or a primary caregiver.
(o)Day care center has the same meaning as in Section 1596.76 of the Health and Safety Code.
(p)Delivery means the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform.
(q)Director means the Director of Consumer Affairs.
(r)Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensees.
(s)Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.
(t)Edible cannabis product means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
(u)Fund means the Cannabis Control Fund established pursuant to Section 26210.
(v)Kind means applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.
(w)Labeling means any label or other written, printed, or graphic matter upon a cannabis product, upon its container or wrapper, or that accompanies any cannabis product.
(x)Labor peace agreement means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the states proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicants employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicants employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.
(y)License means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.
(z)Licensee means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.
(aa)Licensing authority means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.
(ab)Live plants means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.
(ac)Local jurisdiction means a city, county, or city and county.
(ad)Lot means a batch or a specifically identified portion of a batch.
(ae)M-license means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.
(af)M-licensee means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.
(ag)Manufacture means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.
(ah)Manufacturer means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.
(ai)Medicinal cannabis or medicinal cannabis product means cannabis or a cannabis product, respectively, intended to be sold or donated for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physicians recommendation, or intended to be donated to, and used by, a compassion care patient.
(aj)Nursery means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.
(ak)Operation means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.
(al)Owner means any of the following:
(1)A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.
(2)The chief executive officer of a nonprofit or other entity.
(3)A member of the board of directors of a nonprofit.
(4)An individual who will be participating in the direction, control, or management of the person applying for a license.
(am)Package means any container or receptacle used for holding cannabis or cannabis products.
(an)Person includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular.
(ao)Physicians recommendation means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code.
(ap)Premises means the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this subdivision shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.
(aq)Primary caregiver has the same meaning as in Section 11362.7 of the Health and Safety Code.
(ar)Purchaser means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.
(as)Sell, sale, and to sell include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.
(at)Testing laboratory means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:
(1)Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.
(2)Licensed by the bureau.
(au)Unique identifier means an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.
(av)Youth center has the same meaning as in Section 11353.1 of the Health and Safety Code.
SEC. 2.Section 26051.5 of the Business and Professions Code is amended to read:26051.5.(a)An applicant for any type of state license issued pursuant to this division shall do all of the following:
(1)Require that each owner of the applicant electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also 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 recognizance pending trial or appeal.
(A)Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.
(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.
(C)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.
(D)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.
(E)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 evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.
(3)Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.
(4)Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.
(5)(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 the purposes of this paragraph, 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 applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers 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, 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.
(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.
(b)An applicant shall also include in the application a detailed description of the applicants 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.
(7)For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.
(c)(1)The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.
(2)Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.
(d)Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.
SEC. 2.1.Section 26051.5 of the Business and Professions Code is amended to read:26051.5.(a)An applicant for any type of state license issued pursuant to this division shall do all of the following:
(1)Require that each owner of the applicant electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also 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 recognizance pending trial or appeal.
(A)Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.
(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.
(C)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.
(D)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.
(E)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 evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.
(3)Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.
(4)Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.
(5)(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 the purposes of this paragraph, 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 applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers 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, 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.
(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.
(11)(A)Provide a statement, upon initial application and application for renewal, that the applicant employs, or will employ within one year of receiving or renewing a license, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. This paragraph shall not be construed to alter or amend existing requirements for employers to provide occupational safety and health training to employees.
(B)An applicant with only one employee shall not be subject to subparagraph (A).
(C)For purposes of this paragraph employee has the same meaning as provided in subparagraph (B) of paragraph (5) and supervisor has the same meaning as provided in subparagraph (C) of paragraph (5).
(b)An applicant shall also include in the application a detailed description of the applicants 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.
(7)For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.
(c)(1)The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.
(2)Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.
(d)Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.
SEC. 2.2.Section 26051.5 of the Business and Professions Code is amended to read:26051.5.(a)An applicant for any type of state license issued pursuant to this division shall do all of the following:
(1)Require that each owner electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also 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 recognizance pending trial or appeal.
(A)Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.
(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.
(C)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.
(D)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.
(E)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 evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.
(3)Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.
(4)Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.
(5)(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 the purposes of this paragraph, 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 applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers 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, 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.
(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.
(b)An applicant shall also include in the application a detailed description of the applicants 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.
(7)For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.
(c)(1)The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.
(2)Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.
(d)Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.
SEC. 2.3.Section 26051.5 of the Business and Professions Code is amended to read:26051.5.(a)An applicant for any type of state license issued pursuant to this division shall do all of the following:
(1)Require that each owner electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also 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 recognizance pending trial or appeal.
(A)Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.
(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.
(C)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.
(D)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.
(E)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 evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.
(3)Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.
(4)Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.
(5)(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 the purposes of this paragraph, 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 applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers 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, 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.
(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.
(11)(A)Provide a statement, upon initial application and application for renewal, that the applicant employs, or will employ within one year of receiving or renewing a license, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. This paragraph shall not be construed to alter or amend existing requirements for employers to provide occupational safety and health training to employees.
(B)An applicant with only one employee shall not be subject to subparagraph (A).
(C)For purposes of this paragraph employee has the same meaning as provided in subparagraph (B) of paragraph (5) and supervisor has the same meaning as provided in subparagraph (C) of paragraph (5).
(b)An applicant shall also include in the application a detailed description of the applicants 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.
(7)For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.
(c)(1)The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.
(2)Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.
(d)Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.
SEC. 3.Section 1.5 of this bill incorporates amendments to Section 26001 of the Business and Professions Code proposed by this bill and Senate Bill 829. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 26001 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 829, in which case Section 26001 of the Business and Professions Code, as amended by Senate Bill 829, shall remain operative only until the operative date of this bill, at which time Section 1.5 of this bill shall become operative, and Section 1 of this bill shall not become operative.
SEC. 4.(a)Section 2.1 of this bill incorporates amendments to Section 26051.5 of the Business and Professions Code proposed by both this bill and Assembly Bill 2799. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 26051.5 of the Business and Professions Code, and (3) Assembly Bill 3261 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Assembly Bill 2799, in which case Sections 2, 2.2, and 2.3 of this bill shall not become operative.
(b)Section 2.2 of this bill incorporates amendments to Section 26051.5 of the Business and Professions Code proposed by both this bill and Assembly Bill 3261. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 26051.5 of the Business and Professions Code, (3) Assembly Bill 2799 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Assembly Bill 3261 in which case Sections 2, 2.1, and 2.3 of this bill shall not become operative.
(c)Section 2.3 of this bill incorporates amendments to Section 26051.5 of the Business and Professions Code proposed by this bill, Assembly Bill 2799, and Assembly Bill 3261. That section of this bill shall only become operative if (1) all three bills are enacted and become effective on or before January 1, 2019, (2) all three bills amend Section 26051.5 of the Business and Professions Code, and (3) this bill is enacted after Assembly Bill 2799 and Assembly Bill 3261, in which case Sections 2, 2.1, and 2.2 of this bill shall not become operative.
SEC. 5.The Legislature finds and declares that Sections l and 2 of this act implement the Control, Regulate and Tax Adult Use of Marijuana Act by defining premises, and that those sections are consistent with and further the purposes and intent of the act as stated in Section 3 of that act.
For purposes of this division, the following definitions shall apply:
(a)A-license means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.
(b)A-licensee means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.
(c)Applicant means an owner applying for a state license pursuant to this division.
(d)Batch means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:
(1)Harvest batch. Harvest batch means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time.
(2)Manufactured cannabis batch. Manufactured cannabis batch means either of the following:
(A)An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.
(B)An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.
(e)Bureau means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.
(f)Cannabis means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. Cannabis does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, cannabis does not mean industrial hemp as defined by Section 11018.5 of the Health and Safety Code.
(g)Cannabis accessories has the same meaning as in Section 11018.2 of the Health and Safety Code.
(h)Cannabis concentrate means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the products potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
(i)Cannabis products has the same meaning as in Section 11018.1 of the Health and Safety Code.
(j)Child resistant means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.
(k)Commercial cannabis activity includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this division.
(l)Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
(m)Cultivation site means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.
(n)Customer means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physicians recommendation, or a primary caregiver.
(o)Day care center has the same meaning as in Section 1596.76 of the Health and Safety Code.
(p)Delivery means the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform.
(q)Director means the Director of Consumer Affairs.
(r)Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensees.
(s)Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.
(t)Edible cannabis product means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
(u)Fund means the Cannabis Control Fund established pursuant to Section 26210.
(v)Kind means applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.
(w)Labeling means any label or other written, printed, or graphic matter upon a cannabis product, upon its container or wrapper, or that accompanies any cannabis product.
(x)Labor peace agreement means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the states proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicants employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicants employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.
(y)License means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.
(z)Licensee means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.
(aa)Licensing authority means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.
(ab)Live plants means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.
(ac)Local jurisdiction means a city, county, or city and county.
(ad)Lot means a batch or a specifically identified portion of a batch.
(ae)M-license means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.
(af)M-licensee means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.
(ag)Manufacture means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.
(ah)Manufacturer means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.
(ai)Medicinal cannabis or medicinal cannabis product means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physicians recommendation.
(aj)Nursery means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.
(ak)Operation means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.
(al)Owner means any of the following:(1)A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.
(2)The chief executive officer of a nonprofit or other entity.
(3)A member of the board of directors of a nonprofit.
(4)An individual who will be participating in the direction, control, or management of the person applying for a license.
(am)Package means any container or receptacle used for holding cannabis or cannabis products.
(an)Person includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular.
(ao)Physicians recommendation means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code.
(ap)Premises means the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this subdivision shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.
(aq)Primary caregiver has the same meaning as in Section 11362.7 of the Health and Safety Code.
(ar)Purchaser means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.
(as)Sell, sale, and to sell include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.
(at)Testing laboratory means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:
(1)Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.
(2)Licensed by the bureau.
(au)Unique identifier means an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.
(av)Youth center has the same meaning as in Section 11353.1 of the Health and Safety Code.
SEC. 1.5.Section 26001 of the Business and Professions Code is amended to read:26001.For purposes of this division, the following definitions shall apply:
(a)A-license means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.
(b)A-licensee means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.
(c)Applicant means an owner applying for a state license pursuant to this division.
(d)Batch means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:
(1)Harvest batch. Harvest batch means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time.
(2)Manufactured cannabis batch. Manufactured cannabis batch means either of the following:
(A)An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.
(B)An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.
(e)Bureau means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.
(f)Cannabis means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. Cannabis does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, cannabis does not mean industrial hemp as defined by Section 11018.5 of the Health and Safety Code.
(g)Cannabis accessories has the same meaning as in Section 11018.2 of the Health and Safety Code.
(h)Cannabis concentrate means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the products potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
(i)Cannabis products has the same meaning as in Section 11018.1 of the Health and Safety Code.
(j)Child resistant means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.
(k)Commercial cannabis activity includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery delivery, or sale of cannabis and cannabis products as provided for in this division.
(l)Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
(m)Cultivation site means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.
(n)Customer means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physicians recommendation, or a primary caregiver.
(o)Day care center has the same meaning as in Section 1596.76 of the Health and Safety Code.
(p)Delivery means the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform.
(q)Director means the Director of Consumer Affairs.
(r)Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensees.
(s)Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.
(t)Edible cannabis product means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
(u)Fund means the Cannabis Control Fund established pursuant to Section 26210.
(v)Kind means applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.
(w)Labeling means any label or other written, printed, or graphic matter upon a cannabis product, upon its container or wrapper, or that accompanies any cannabis product.
(x)Labor peace agreement means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the states proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicants employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicants employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.
(y)License means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.
(z)Licensee means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.
(aa)Licensing authority means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.
(ab)Live plants means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.
(ac)Local jurisdiction means a city, county, or city and county.
(ad)Lot means a batch or a specifically identified portion of a batch.
(ae)M-license means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.
(af)M-licensee means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.
(ag)Manufacture means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.
(ah)Manufacturer means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.
(ai)Medicinal cannabis or medicinal cannabis product means cannabis or a cannabis product, respectively, intended to be sold or donated for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at in Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physicians recommendation. recommendation, or intended to be donated to, and used by, a compassion care patient.
(aj)Nursery means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.
(ak)Operation means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.
(al)Owner means any of the following:
(1)A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.
(2)The chief executive officer of a nonprofit or other entity.
(3)A member of the board of directors of a nonprofit.
(4)An individual who will be participating in the direction, control, or management of the person applying for a license.
(am)Package means any container or receptacle used for holding cannabis or cannabis products.
(an)Person includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular.
(ao)Physicians recommendation means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at in Section 11362.5 of the Health and Safety Code.
(ap)Premises means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one licensee.(ap)Premises means the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this subdivision shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.
(aq)Primary caregiver has the same meaning as in Section 11362.7 of the Health and Safety Code.
(ar)Purchaser means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.
(as)Sell, sale, and to sell include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.
(at)Testing laboratory means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:
(1)Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.
(2)Licensed by the bureau.
(au)Unique identifier means an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.
(av)Youth center has the same meaning as in Section 11353.1 of the Health and Safety Code.
SEC. 2.Section 26051.5 of the Business and Professions Code is amended to read:26051.5.(a)An applicant for any type of state license issued pursuant to this division shall do all of the following:(1)Require that each owner of the applicant 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)Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the United States Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B)The Department of Justice shall forward to the United States Federal Bureau of Investigation all requests for federal criminal history record information received pursuant to this section. The Department of Justice shall review the information returned from the United States Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C)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.(D)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.(E)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 evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3)Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4)Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5)(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 the purposes of this paragraph, 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 applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers 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, 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.(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.(b)An applicant shall also include in the application a detailed description of the applicants 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.(7)For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c)(1)The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2)Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.(d)Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.SEC. 2.Section 26051.5 of the Business and Professions Code is amended to read:26051.5.(a)An applicant for any type of state license issued pursuant to this division shall do all of the following:
(1)Require that each owner of the applicant electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also 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 recognizance pending trial or appeal.
(A)Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.
(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.
(C)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.
(D)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.
(E)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 evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.
(3)Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.
(4)Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.
(5)(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 the purposes of this paragraph, 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 applicants valid sellers permit number issued pursuant to Part 1 Article 2 (commencing with Section 6001) 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers 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, 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.
(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.
(b)An applicant shall also include in the application a detailed description of the applicants 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.
(7)For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.
(c)(1)The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.
(2)Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.
(d)Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.
SEC. 2.1.Section 26051.5 of the Business and Professions Code is amended to read:26051.5.(a)An applicant for any type of state license issued pursuant to this division shall do all of the following:
(1)Require that each owner of the applicant electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also 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 recognizance pending trial or appeal.
(A)Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.
(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.
(C)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.
(D)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.
(E)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 evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.
(3)Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.
(4)Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.
(5)(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 the purposes of this paragraph, 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 applicants valid sellers permit number issued pursuant to Part 1 Article 2 (commencing with Section 6001) 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers 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, 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.
(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.
(11)(A)Provide a statement, upon initial application and application for renewal, that the applicant employs, or will employ within one year of receiving or renewing a license, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. This paragraph shall not be construed to alter or amend existing requirements for employers to provide occupational safety and health training to employees.
(B)An applicant with only one employee shall not be subject to subparagraph (A).
(C)For purposes of this paragraph employee has the same meaning as provided in subparagraph (B) of paragraph (5) and supervisor has the same meaning as provided in subparagraph (C) of paragraph (5).
(b)An applicant shall also include in the application a detailed description of the applicants 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.
(7)For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.
(c)(1)The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.
(2)Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.
(d)Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.
SEC. 2.2.Section 26051.5 of the Business and Professions Code is amended to read:26051.5.(a)An applicant for any type of state license issued pursuant to this division shall do all of the following:
(1)Require that each owner of the applicant electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also 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 recognizance pending trial or appeal.
(A)Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.
(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.
(C)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.
(D)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.
(E)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 evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.
(3)Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.
(4)Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.
(5)(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 the purposes of this paragraph, 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 applicants valid sellers permit number issued pursuant to Part 1 Article 2 (commencing with Section 6001) 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers 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, 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.
(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.
(b)An applicant shall also include in the application a detailed description of the applicants 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.
(7)For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.
(c)(1)The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.
(2)Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.
(d)Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.
SEC. 2.3.Section 26051.5 of the Business and Professions Code is amended to read:26051.5.(a)An applicant for any type of state license issued pursuant to this division shall do all of the following:
(1)Require that each owner of the applicant electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also 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 recognizance pending trial or appeal.
(A)Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.
(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.
(C)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.
(D)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.
(E)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 evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.
(3)Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.
(4)Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.
(5)(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 the purposes of this paragraph, 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 applicants valid sellers permit number issued pursuant to Part 1 Article 2 (commencing with Section 6001) 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers 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, 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.
(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.
(11)(A)Provide a statement, upon initial application and application for renewal, that the applicant employs, or will employ within one year of receiving or renewing a license, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. This paragraph shall not be construed to alter or amend existing requirements for employers to provide occupational safety and health training to employees.
(B)An applicant with only one employee shall not be subject to subparagraph (A).
(C)For purposes of this paragraph employee has the same meaning as provided in subparagraph (B) of paragraph (5) and supervisor has the same meaning as provided in subparagraph (C) of paragraph (5).
(b)An applicant shall also include in the application a detailed description of the applicants 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.
(7)For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.
(c)(1)The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.
(2)Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.
(d)Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.
SEC. 3.Section 1.5 of this bill incorporates amendments to Section 26001 of the Business and Professions Code proposed by this bill and Senate Bill 829. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 26001 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 829, in which case Section 26001 of the Business and Professions Code, as amended by Senate Bill 829, shall remain operative only until the operative date of this bill, at which time Section 1.5 of this bill shall become operative, and Section 1 of this bill shall not become operative.
SEC. 4.(a)Section 2.1 of this bill incorporates amendments to Section 26051.5 of the Business and Professions Code proposed by both this bill and Assembly Bill 2799. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 26051.5 of the Business and Professions Code, and (3) Assembly Bill 3261 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Assembly Bill 2799, in which case Sections 2, 2.2, and 2.3 of this bill shall not become operative.
(b)Section 2.2 of this bill incorporates amendments to Section 26051.5 of the Business and Professions Code proposed by both this bill and Assembly Bill 3261. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 26051.5 of the Business and Professions Code, (3) Assembly Bill 2799 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Assembly Bill 3261 in which case Sections 2, 2.1, and 2.3 of this bill shall not become operative.
(c)Section 2.3 of this bill incorporates amendments to Section 26051.5 of the Business and Professions Code proposed by this bill, Assembly Bill 2799, and Assembly Bill 3261. That section of this bill shall only become operative if (1) all three bills are enacted and become effective on or before January 1, 2019, (2) all three bills amend Section 26051.5 of the Business and Professions Code, and (3) this bill is enacted after Assembly Bill 2799 and Assembly Bill 3261, in which case Sections 2, 2.1, and 2.2 of this bill shall not become operative.
SEC. 3.SEC. 5.The Legislature finds and declares that Sections l and 2 of this act implement the Control, Regulate and Tax Adult Use of Marijuana Act by defining premises, and that those sections are consistent with and further the purposes and intent of the act as stated in Section 3 of that act.
For purposes of this division, the following definitions shall apply:
(a)A-license means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.
(b)A-licensee means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.
(c)Applicant means an owner applying for a state license pursuant to this division.
(d)Batch means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:
(1)Harvest batch. Harvest batch means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time.
(2)Manufactured cannabis batch. Manufactured cannabis batch means either of the following:
(A)An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.
(B)An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.
(e)Bureau means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.
(f)Cannabis means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. Cannabis does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, cannabis does not mean industrial hemp as defined by Section 11018.5 of the Health and Safety Code.
(g)Cannabis accessories has the same meaning as in Section 11018.2 of the Health and Safety Code.
(h)Cannabis concentrate means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the products potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
(i)Cannabis products has the same meaning as in Section 11018.1 of the Health and Safety Code.
(j)Child resistant means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.
(k)Commercial cannabis activity includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery delivery, or sale of cannabis and cannabis products as provided for in this division.
(l)Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
(m)Cultivation site means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.
(n)Customer means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physicians recommendation, or a primary caregiver.
(o)Day care center has the same meaning as in Section 1596.76 of the Health and Safety Code.
(p)Delivery means the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform.
(q)Director means the Director of Consumer Affairs.
(r)Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensees.
(s)Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.
(t)Edible cannabis product means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
(u)Fund means the Cannabis Control Fund established pursuant to Section 26210.
(v)Kind means applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.
(w)Labeling means any label or other written, printed, or graphic matter upon a cannabis product, upon its container or wrapper, or that accompanies any cannabis product.
(x)Labor peace agreement means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the states proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicants employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicants employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.
(y)License means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.
(z)Licensee means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.
(aa)Licensing authority means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.
(ab)Live plants means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.
(ac)Local jurisdiction means a city, county, or city and county.
(ad)Lot means a batch or a specifically identified portion of a batch.
(ae)M-license means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.
(af)M-licensee means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.
(ag)Manufacture means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.
(ah)Manufacturer means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.
(ai)Medicinal cannabis or medicinal cannabis product means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physicians recommendation.
(aj)Nursery means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.
(ak)Operation means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.
(al)Owner means any of the following:(1)A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.
(2)The chief executive officer of a nonprofit or other entity.
(3)A member of the board of directors of a nonprofit.
(4)An individual who will be participating in the direction, control, or management of the person applying for a license.
(am)Package means any container or receptacle used for holding cannabis or cannabis products.
(an)Person includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular.
(ao)Physicians recommendation means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code.
(ap)Premises means the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this subdivision shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, or hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.
(aq)Primary caregiver has the same meaning as in Section 11362.7 of the Health and Safety Code.
(ar)Purchaser means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.
(as)Sell, sale, and to sell include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.
(at)Testing laboratory means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:
(1)Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.
(2)Licensed by the bureau.
(au)Unique identifier means an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.
(av)Youth center has the same meaning as in Section 11353.1 of the Health and Safety Code.
SEC. 2.Section 26051.5 of the Business and Professions Code is amended to read:26051.5.(a)An applicant for any type of state license issued pursuant to this division shall do all of the following:(1)Require that each owner of the applicant 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 evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3)Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4)Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5)(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 the purposes of this paragraph, 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 applicants valid sellers permit number issued pursuant to Part 2 (commencing with Section 6066) of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers 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, 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.(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.(b)An applicant shall also include in the application a detailed description of the applicants 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.(7)For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c)(1)The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2)Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, or hallway, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.(d)Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.SEC. 2.Section 26051.5 of the Business and Professions Code is amended to read:26051.5.(a)An applicant for any type of state license issued pursuant to this division shall do all of the following:
(1)Require that each owner of the applicant 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)Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the United States Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.
(B)The Department of Justice shall forward to the United States Federal Bureau of Investigation all requests for federal criminal history record information received pursuant to this section. The Department of Justice shall review the information returned from the United States Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.
(C)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.
(D)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.
(E)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 evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.
(3)Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.
(4)Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.
(5)(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 the purposes of this paragraph, 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 applicants valid sellers permit number issued pursuant to Part 1 Article 2 (commencing with Section 6001) 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers 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, 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.
(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.
(b)An applicant shall also include in the application a detailed description of the applicants 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.
(7)For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.
(c)(1)The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.
(2)Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.
(d)Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.
SEC. 3.The Legislature finds and declares that Sections l and 2 of this act implement the Control, Regulate and Tax Adult Use of Marijuana Act by defining premises, and that those sections are consistent with and further the purposes and intent of the act as stated in Section 3 of that act.
For purposes of this division, the following definitions shall apply:
(a)A-license means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.
(b)A-licensee means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.
(c)Applicant means an owner applying for a state license pursuant to this division.
(d)Batch means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:
(1)Harvest batch. Harvest batch means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time.
(2)Manufactured cannabis batch. Manufactured cannabis batch means either of the following:
(A)An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.
(B)An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.
(e)Bureau means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.
(f)Cannabis means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. Cannabis does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, cannabis does not mean industrial hemp as defined by Section 11018.5 of the Health and Safety Code.
(g)Cannabis accessories has the same meaning as in Section 11018.2 of the Health and Safety Code.
(h)Cannabis concentrate means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the products potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
(i)Cannabis products has the same meaning as in Section 11018.1 of the Health and Safety Code.
(j)Child resistant means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.
(k)Commercial cannabis activity includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products as provided for in this division.
(l)Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
(m)Cultivation site means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.
(n)Customer means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physicians recommendation, or a primary caregiver.
(o)Day care center has the same meaning as in Section 1596.76 of the Health and Safety Code.
(p)Delivery means the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform.
(q)Director means the Director of Consumer Affairs.
(r)Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensees.
(s)Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.
(t)Edible cannabis product means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
(u)Fund means the Cannabis Control Fund established pursuant to Section 26210.
(v)Kind means applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.
(w)Labeling means any label or other written, printed, or graphic matter upon a cannabis product, upon its container or wrapper, or that accompanies any cannabis product.
(x)Labor peace agreement means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the states proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicants employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicants employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.
(y)License means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.
(z)Licensee means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.
(aa)Licensing authority means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.
(ab)Live plants means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.
(ac)Local jurisdiction means a city, county, or city and county.
(ad)Lot means a batch or a specifically identified portion of a batch.
(ae)M-license means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.
(af)M-licensee means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.
(ag)Manufacture means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.
(ah)Manufacturer means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.
(ai)Medicinal cannabis or medicinal cannabis product means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physicians recommendation.
(aj)Nursery means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.
(ak)Operation means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.
(al)Owner means any of the following:
(1)A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.
(2)The chief executive officer of a nonprofit or other entity.
(3)A member of the board of directors of a nonprofit.
(4)An individual who will be participating in the direction, control, or management of the person applying for a license.
(am)Package means any container or receptacle used for holding cannabis or cannabis products.
(an)Person includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular.
(ao)Physicians recommendation means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code.
(ap)Premises means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one licensee. the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this subdivision shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, or hallway, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.
(aq)Primary caregiver has the same meaning as in Section 11362.7 of the Health and Safety Code.
(ar)Purchaser means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.
(as)Sell, sale, and to sell include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.
(at)Testing laboratory means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:
(1)Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.
(2)Licensed by the bureau.
(au)Unique identifier means an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.
(av)Youth center has the same meaning as in Section 11353.1 of the Health and Safety Code.
SEC. 2.Section 26051.5 of the Business and Professions Code is amended to read:26051.5.(a)An applicant for any type of state license issued pursuant to this division shall do all of the following:
(1)Require that each owner of the applicant 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 evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.
(3)Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.
(4)Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.
(5)(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 the purposes of this paragraph, 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 applicants valid sellers permit number issued pursuant to Part 1 2 (commencing with Section 6001) 6066) of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers 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, 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.
(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.
(b)An applicant shall also include in the application a detailed description of the applicants 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.
(7)For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.
(c)(1)The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.
(2)Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, or hallway, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.
(d)Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.
SEC. 3.The Legislature finds and declares that Sections l and 2 of this act implement the Control, Regulate and Tax Adult Use of Marijuana Act by defining premises, and that those sections are consistent with and further the purposes and intent of the act as stated in Section 3 of that act.
|
Date
|
Status
|
|---|---|
| Sep 29, 2018 | Vetoed by Governor. |
| Sep 7, 2018 | Enrolled and presented to the Governor at 2:30 p.m. |
| Aug 29, 2018 | Senate amendments concurred in. To Engrossing and Enrolling. |
| Aug 28, 2018 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 30 pursuant to Assembly Rule 77. |
| Aug 28, 2018 | Read third time. Passed. Ordered to the Assembly. |
| Aug 27, 2018 | Read second time. Ordered to third reading. |
| Aug 24, 2018 | Read third time and amended. Ordered to second reading. |
| Aug 21, 2018 | Read third time. Passed. Ordered to the Assembly. |
| Aug 7, 2018 | Read second time. Ordered to third reading. |
| Aug 6, 2018 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8. |
| Jun 26, 2018 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 1.) (June 25). Re-referred to Com. on APPR. |
| Jun 18, 2018 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B., P. & E.D. |
| May 30, 2018 | Referred to Com. on B., P. & E.D. |
| May 17, 2018 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 17, 2018 | Read third time. Passed. Ordered to the Senate. |
| May 10, 2018 | Read second time. Ordered to third reading. |
| May 9, 2018 | From committee: Do pass. (Ayes 11. Noes 5.) (May 9). |
| Apr 17, 2018 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 3.) (April 17). Re-referred to Com. on APPR. |
| Mar 22, 2018 | Referred to Com. on B. & P. |
| Feb 17, 2018 | From printer. May be heard in committee March 19. |
| Feb 16, 2018 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 29, 2018 | AB 2980 GIPSON Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Aug 28, 2018 | Assembly 3rd Reading AB2980 Gipson By Portantino | Senate Floor |
Passed |
|
| Aug 21, 2018 | Assembly 3rd Reading AB2980 Gipson By Portantino Reconsider | Senate Floor |
Passed |
|
| Aug 21, 2018 | Assembly 3rd Reading AB2980 Gipson By Portantino | Senate Floor |
Passed |
|
| Jun 25, 2018 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Business, Professions and Economic Development |
Passed |
|
| May 17, 2018 | AB 2980 GIPSON Assembly Third Reading | Assembly Floor |
Passed |
|
| May 9, 2018 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 17, 2018 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Business and Professions |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Arguments In Opposition: Cmg | ** Against | Aug 27, 2018 |
| Bouja Limited | ** Support | Aug 27, 2018 |
| Cal Can Solutions LLC | * Support | Apr 17, 2018 |
| California Asian Pacific Chamber Of Commerce | ** Support | Aug 27, 2018 |
| California Black Chamber of Commerce | * Support | Apr 17, 2018 |
| California Cannabis Delivery Alliance | * Support | Apr 17, 2018 |
| California Growers Assocation | * Support | Apr 17, 2018 |
| California Hispanic Chambers Of Commerce | * Support | Apr 17, 2018 |
| Caliva | ** Against | Aug 27, 2018 |
| Caliva Writes, 'Cmg | ** Against | Aug 27, 2018 |
| Champ Distribution | ** Support | Aug 27, 2018 |
| City Of Los Angeles | ** Support | Aug 27, 2018 |
| City of Los Angeles - Mayor Eric Garcetti | * Support | Jun 25, 2018 |
| City Of Oakland | * Support | Apr 17, 2018 |
| Commercial Workers | * Support | Apr 17, 2018 |
| Drug Policy Alliance | ** Support | Aug 27, 2018 |
| Flow Kana | ** Support | Aug 27, 2018 |
| Long Beach Collectives Association | ** Support | Aug 27, 2018 |
| Los Angeles Area Chamber Of Commerce | ** Support | Aug 27, 2018 |
| United Cannabis Business Association | ** Support | Aug 27, 2018 |
GOVERNOR'S VETO
GV Bill Id:AB 2980
Author:(Gipson)
As Enrolled Ver:September 7, 2018
2/3 vote
ASSEMBLY: | 48-21 | (May 17, 2018) | SENATE: | 28-10 | (August 28, 2018) |
ASSEMBLY: | 54-22 | (August 29, 2018) |
Original Committee Reference: B. & P.
SUMMARY: Redefines "premises" for purposes of licensed cannabis businesses to allow for the sharing of common use areas, such as bathrooms, breakrooms, locker rooms, hallways, or loading docks wherein no license privileges are exercised.
The Senate amendments add chaptering language to align the bill's provisions with trailer bill language clarifying the authority of the state's cannabis licensing entities to obtain and receive criminal history information for cannabis license applicants.
EXISTING LAW:
- Enacts the Medicinal and Adult-Use Cannabis Regulation and Safety Act to provide for a comprehensive regulatory framework for the cultivation, distribution, transport, storage, manufacturing, processing, and sale of medicinal and adult-use cannabis. (Business and Professions Code (BPC) Sections 26000 et al.)
- Defines an "A-license" as a state license issued for cannabis or cannabis products intended for adults 21 years of age and older. (BPC Section 26001(a))
- Defines "M-license" as a state license for commercial cannabis activity involving medicinal cannabis. (BPC Section 26001(ae))
- Provides for twenty total types of cannabis licenses including subtypes for cultivation, manufacturing, testing, retail, distribution, and microbusiness; requires each licensee except for testing laboratories to clearly designate whether their license is for adult-use or medicinal cannabis. (BPC Section 26050)
- Establishes the Bureau of Cannabis Control (BCC) within the Department of Consumer Affairs, previously named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation, for purposes of regulating microbusinesses, transportation, storage, distribution, testing, and sale of cannabis and cannabis products within the state. (BPC Section 26010)
- Requires the BCC to convene an advisory committee to advise state licensing authorities on the development of standards and regulations for legal cannabis, including best practices and guidelines that protect public health and safety while ensuring a regulated environment for commercial cannabis activity that does not impose such barriers so as to perpetuate, rather than reduce and eliminate, the illicit market for cannabis. (BPC Section 26014)
- Provides the Department of Food and Agriculture with responsibility for regulating cannabis cultivators. (BPC Section 26060)
- Provides the Department of Public Health with responsibility for regulating cannabis manufacturers. (BPC Section 26130)
- Defines "premises" as the designated structure and land specified in a cannabis license application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted; the premises shall be a contiguous area and shall only be occupied by one licensee. (BPC Section 26001(ap))
- Requires a cannabis license applicant to provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, specifically showing the boundaries of the property and the proposed premises to be licensed, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, doorways, and common or shared entryways; also requires a brief statement or description of the principal activity to be conducted therein. (BPC Section 26051.5)
- Expresses that state cannabis laws shall not be interpreted to supersede or limit the authority of a local jurisdiction to adopt and enforce local ordinances to regulate cannabis businesses. (BPC Section 26200)
- Authorizes the Legislature to, by majority vote, enact laws to implement the state's regulatory scheme for cannabis, provided those laws are consistent with the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act (Proposition 64). (BPC Section 26000)
FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS:
Purpose. This bill is sponsored by the United Cannabis Business Association. According to the author:
AB 2980 seeks to reduce barriers and allow for two licensees to occupy the same building and be able to share common spaces for the purpose of providing a leased space to individuals who qualify under the Los Angeles City Social Equity Program. This could potentially be life changing to individuals who were negatively impacted or from communities that were disproportionately harmed by past cannabis law enforcement. This will create opportunity for equitable access to the legal cannabis industry and reduce and remove barriers to ownership of a commercial cannabis business.
Background.
Shared Common Spaces. Under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) and the BCC's emergency regulations, cannabis license applicants are required to submit a detailed diagram of the premises on which they intend to do business. This includes "the boundaries of the property and the proposed premises to be licensed, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, doorways, and common or shared entryways." License applicants are required to include "a brief statement or description of the principal activity to be conducted therein."
There are certain constraints placed on premises where licensed cannabis activity may occur. This includes a prohibition on the co-location of cannabis businesses and alcohol or tobacco businesses as well as a restriction on placing a premise near a school. In addition, multiple cannabis licensees cannot occupy the same premises, with the exception that a single business operator holding both adult-use and medicinal cannabis licenses may utilize each on the same premises. "Premises" is defined as the designated structure or land on which cannabis business activities occur, which must be a contiguous area and may only be occupied by one licensee.
In late 2017, the Los Angeles City Council passed a local ordinance referred to as the Los Angeles Social Equity Program. This program is intended prioritize cannabis business applicants representing demographics disproportionately impacted by the prior criminalization of cannabis for opportunities to engage in the newly regulated cannabis market. Tier 1 applicants under the program are those with a prior cannabis-related conviction, a household income below the federal poverty line, and a minimum of five years residence in a community identified as having been disproportionately impacted by the prior "war on drugs."
Among the various efforts made under the Los Angeles Social Equity Program to reduce barriers to entry into the cannabis industry for communities previously disadvantaged by cannabis prohibition, the ordinance allows for current cannabis licensees to provide leased space to additional licensees who qualify under the program's criteria. This effectively means that multiple licensees would occupy separate spaces within a single building, which may include common areas available to all occupants such as bathrooms, lobbies, and locker rooms. However, current law prohibiting multiple licensees from occupying the same premises does not clearly specify whether this type of arrangement would be a violation.
This bill would revise the definition of "premises" and add additional clarifying language to ensure that separate premises within a single structure featuring certain shared common areas may be occupied by distinct cannabis licensees without violating the state's general prohibition on co-location of cannabis businesses.
This bill changes the definition of premises within the Medicinal and Adult-Use Cannabis Regulation and Safety Act to allow multiple cannabis licensees to share common use areas, such as breakrooms and lobbies.
The licensing authorities are in the process of finalizing the cannabis regulations. Instead of changing the definitions in statute, it would be more appropriate for the licensing entities to address this in their regulations.
Analysis Prepared by: Robert Sumner / B. & P. / (916) 319-3301 FN: 0005344
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 2980
Author:(Gipson)
As Amended Ver:August 24, 2018
Majority vote
ASSEMBLY: | 48-21 | (May 17, 2018) | SENATE: | 28-10 | (August 28, 2018) |
Original Committee Reference: B. & P.
SUMMARY: Redefines "premises" for purposes of licensed cannabis businesses to allow for the sharing of common use areas, such as bathrooms, breakrooms, locker rooms, hallways, or loading docks wherein no license privileges are exercised.
The Senate amendments add chaptering language to align the bill's provisions with trailer bill language clarifying the authority of the state's cannabis licensing entities to obtain and receive criminal history information for cannabis license applicants and add chaptering language to avoid conflicts with SB 829 (Wiener), AB 2799 (Jones-Sawyer), and AB 3261 (Low), all of the current legislative session.
EXISTING LAW:
- Enacts the Medicinal and Adult-Use Cannabis Regulation and Safety Act to provide for a comprehensive regulatory framework for the cultivation, distribution, transport, storage, manufacturing, processing, and sale of medicinal and adult-use cannabis. (Business and Professions Code Section (BPC) 26000, et al.)
- Defines an "A-license" as a state license issued for cannabis or cannabis products intended for adults 21 years of age and older. (BPC 26001(a))
- Defines "M-license" as a state license for commercial cannabis activity involving medicinal cannabis. (BPC 26001(ae))
- Provides for twenty total types of cannabis licenses including subtypes for cultivation, manufacturing, testing, retail, distribution, and microbusiness; requires each licensee except for testing laboratories to clearly designate whether their license is for adult-use or medicinal cannabis. (BPC 26050)
- Establishes the Bureau of Cannabis Control (BCC) within the Department of Consumer Affairs, previously named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation, for purposes of regulating microbusinesses, transportation, storage, distribution, testing, and sale of cannabis and cannabis products within the state. (BPC 26010)
- Requires the BCC to convene an advisory committee to advise state licensing authorities on the development of standards and regulations for legal cannabis, including best practices and guidelines that protect public health and safety while ensuring a regulated environment for commercial cannabis activity that does not impose such barriers so as to perpetuate, rather than reduce and eliminate, the illicit market for cannabis. (BPC 26014)
- Provides the Department of Food and Agriculture with responsibility for regulating cannabis cultivators. (BPC 26060)
- Provides the Department of Public Health with responsibility for regulating cannabis manufacturers. (BPC 26130)
- Defines "premises" as the designated structure and land specified in a cannabis license application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted; the premises shall be a contiguous area and shall only be occupied by one licensee. (BPC 26001(ap))
- Requires a cannabis license applicant to provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, specifically showing the boundaries of the property and the proposed premises to be licensed, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, doorways, and common or shared entryways; also requires a brief statement or description of the principal activity to be conducted therein. (BPC 26051.5)
- Expresses that state cannabis laws shall not be interpreted to supersede or limit the authority of a local jurisdiction to adopt and enforce local ordinances to regulate cannabis businesses. (BPC 26200)
- Authorizes the Legislature to, by majority vote, enact laws to implement the state's regulatory scheme for cannabis, provided those laws are consistent with the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act (Proposition 64). (BPC 26000)
FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS:
Purpose. This bill is sponsored by the United Cannabis Business Association. According to the author:
AB 2980 seeks to reduce barriers and allow for two licensees to occupy the same building and be able to share common spaces for the purpose of providing a leased space to individuals who qualify under the Los Angeles City Social Equity Program. This could potentially be life changing to individuals who were negatively impacted or from communities that were disproportionately harmed by past cannabis law enforcement. This will create opportunity for equitable access to the legal cannabis industry and reduce and remove barriers to ownership of a commercial cannabis business.
Background.
Shared Common Spaces. Under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) and the BCC's emergency regulations, cannabis license applicants are required to submit a detailed diagram of the premises on which they intend to do business. This includes "the boundaries of the property and the proposed premises to be licensed, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, doorways, and common or shared entryways." License applicants are required to include "a brief statement or description of the principal activity to be conducted therein."
There are certain constraints placed on premises where licensed cannabis activity may occur. This includes a prohibition on the co-location of cannabis businesses and alcohol or tobacco businesses as well as a restriction on placing a premise near a school. In addition, multiple cannabis licensees cannot occupy the same premises, with the exception that a single business operator holding both adult-use and medicinal cannabis licenses may utilize each on the same premises. "Premises" is defined as the designated structure or land on which cannabis business activities occur, which must be a contiguous area and may only be occupied by one licensee.
In late 2017, the Los Angeles City Council passed a local ordinance referred to as the Los Angeles Social Equity Program. This program is intended prioritize cannabis business applicants representing demographics disproportionately impacted by the prior criminalization of cannabis for opportunities to engage in the newly regulated cannabis market. Tier 1 applicants under the program are those with a prior cannabis-related conviction, a household income below the federal poverty line, and a minimum of five years residence in a community identified as having been disproportionately impacted by the prior "war on drugs."
Among the various efforts made under the Los Angeles Social Equity Program to reduce barriers to entry into the cannabis industry for communities previously disadvantaged by cannabis prohibition, the ordinance allows for current cannabis licensees to provide leased space to additional licensees who qualify under the program's criteria. This effectively means that multiple licensees would occupy separate spaces within a single building, which may include common areas available to all occupants such as bathrooms, lobbies, and locker rooms. However, current law prohibiting multiple licensees from occupying the same premises does not clearly specify whether this type of arrangement would be a violation.
This bill would revise the definition of "premises" and add additional clarifying language to ensure that separate premises within a single structure featuring certain shared common areas may be occupied by distinct cannabis licensees without violating the state's general prohibition on co-location of cannabis businesses.
Analysis Prepared by: Robert Sumner / B. & P. / (916) 319-3301 FN: 0005104
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 2980
:
SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 8-1, 6/25/18
AYES: Hill, Allen, Dodd, Galgiani, Glazer, Hernandez, Pan, Wilk
NOES: Fuller
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 48-21, 5/17/18 - See last page for vote
SOURCE: United Cannabis Business Association
DIGEST:
This bill clarifies “premises” in statute to allow multiple licensees to share common use areas wherein no license privileges will be exercised.
Senate Floor Amendments of 8/24/18 resolve chaptering conflicts with SB 829 (Wiener), AB 3261 (Low), and AB 2799 (Jones-Sawyer).
Existing law:
- Establishes the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) to regulate the cultivation, distribution, transport, storage, manufacturing, processing, and sale of both medicinal cannabis and adult-use cannabis. (Business and Professions Code (BPC) § 26000)
- Establishes the Bureau of Cannabis Control (Bureau) under the Department of Consumer Affairs to regulate cannabis by having the sole authority to create, issue, deny, renew, discipline, suspend, or revoke licenses for microbusinesses, transportation, storage unrelated to manufacturing activities, distribution, testing, and sale of cannabis and cannabis products within the state. (BPC §§ 26010, 26012 (a)(1))
- Defines premises as “the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one licensee.” (BPC § 26001 (a))
- Requires an applicant to provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation. (BPC § 26051.5 (c))
- Authorizes a property to contain two or more licensed premises, as demonstrated by regulations requiring the following in a premises diagram: “If the proposed premises consists of only a portion of a property that will contain two or more licensed premises, the diagram shall clearly show the designated entrances and walls under the exclusive control of the applicant for the premises, as well as the designated entrances and walls for each additional premises. The diagram shall also show all proposed common or shared areas of the property. Such areas may include lobbies, bathrooms, hallways, and breakrooms.” (Title 16, California Code of Regulations § 5006)
This bill:
- Redefines “premises” to mean the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this bill shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.
- Clarifies that the requirement that an applicant provide a detailed diagram of the proposed premises shall not be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock wherein no license privileges will be exercised.
- States that this bill implements the Control, Regulate and Tax Adult Use of Marijuana Act (Act) by defining premises, and is consistent with and further the purposes and intent of the Act.
Background
The Legislature passed the Medical Cannabis Regulation and Safety Act (MCRSA) in 2015. MCRSA established, for the first time, a comprehensive statewide licensing and regulatory framework for the cultivation, manufacture, transportation, testing, distribution, and sale of medicinal cannabis to be administered by the Bureau within Department of Consumer Affairs, the Department of Public Health, and the Department of Food and Agriculture, with implementation relying on each agency’s area of expertise.
Shortly following the passage of MCRSA in November 2016, California voters passed Proposition 64, the "Control, Regulate and Tax Adult Use of Marijuana Act" (Prop 64), which legalized adult-use cannabis.
Less than a year later in June 2017, the California State Legislature passed a budget trailer bill, SB 94 (Committee on Budget and Fiscal Review, Chapter 27, Statutes of 2017), that integrated MCRSA with Prop 64 to create MAUCRSA.
MAUCRSA established various requirements for licensure, including parameters for a licensee’s place of business. The current statutory definition of premises is unclear as to what extent a property could be occupied by more than one licensee, however. While it stated that the “structure” shall be a contiguous area occupied by only one licensee, other provisions of law contemplated some degree of shared space by requiring the identification in a license application diagram of “common or shared entryways.” Emergency regulations released on December 7, 2017, to implement MAUCRSA also failed to clarify the issue.
On May 18, 2018, the Administration amended and readopted the emergency regulations following stakeholder engagement. This version of the emergency regulations clarifies that multiple premises can occupy a single property, as long as each premises occupies a contiguous area and follows other Bureau requirements.
This bill affirms Administration policy in statute.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
United Cannabis Business Association (source)
Bouja Limited
California Asian Pacific Chamber of Commerce
CHAMP Distribution
City of Los Angeles
Drug Policy Alliance
Flow Kana
Long Beach Collectives Association
Los Angeles Area Chamber of Commerce
OPPOSITION: (Verified 8/24/18)
CMG/Caliva
ARGUMENTS IN SUPPORT: The Long Beach Collectives Association writes, “A component of the City of Los Angeles’ social equity program is for existing licensees to provide leased space to individuals who qualify under the City’s social equity program criteria. This means that two separate licensees will be occupying the same building or buildings….
“Current California cannabis regulations define premises as the designated structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted. The premises must be a contiguous area and may only be occupied by one licensee. The term “structure” is not a defined term in MAUCRSA or the department regulations…. It is not clear whether the state requires that each licensed premises have a unique exterior building entrance and exit, which would make it impossible for multiple licensees to occupy the same building.”
ARGUMENTS IN OPPOSITION: CMG/Caliva writes, “CMG/Caliva is one of the largest vertically integrated cannabis operations in the state. One of our motivating principles has long been the creation and enforcement of a regulatory framework that provides assurances to the public as well as the various levels of government that the new legal cannabis industry will be transparent and pristine in its operations. State and local policies have been established that are intended to ensure that objective….
“One of those policies is the recognition that one licensee must be separated physically from another licensee except when an owner holds an adult use and medical use license of the same type. The current definition of ‘premises’ supports that separation by making it clear that the premises shall only be occupied by a single licensee….
“As soon as more than one licensee is allowed to occupy any portion of the premises, unknown elements are introduced into the circumstances and security and control becomes that much less achievable.”
ASSEMBLY FLOOR: 48-21, 5/17/18
AYES: Aguiar-Curry, Arambula, Berman, Bloom, Bonta, Burke, Calderon, Carrillo, Cervantes, Chau, Chiu, Chu, Cooley, Cooper, Daly, Eggman, Frazier, Friedman, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Lackey, Levine, Limón, Low, McCarty, Medina, Mullin, Nazarian, O'Donnell, Quirk, Reyes, Rodriguez, Rubio, Salas, Mark Stone, Thurmond, Ting, Weber, Wood, Rendon
NOES: Acosta, Travis Allen, Baker, Bigelow, Brough, Chávez, Choi, Cunningham, Dahle, Flora, Fong, Gallagher, Harper, Kiley, Maienschein, Mathis, Mayes, Obernolte, Patterson, Voepel, Waldron
NO VOTE RECORDED: Caballero, Chen, Cristina Garcia, Kamlager-Dove, Melendez, Muratsuchi, Quirk-Silva, Santiago, Steinorth
8/27/18 19:37:45
**** END ****
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 2980
:
SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 8-1, 6/25/18
AYES: Hill, Allen, Dodd, Galgiani, Glazer, Hernandez, Pan, Wilk
NOES: Fuller
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 48-21, 5/17/18 - See last page for vote
SOURCE: United Cannabis Business Association
DIGEST:
This bill clarifies “premises” in statute to allow multiple licensees to share common use areas wherein no license privileges will be exercised.
Existing law:
- Establishes the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) to regulate the cultivation, distribution, transport, storage, manufacturing, processing, and sale of both medicinal cannabis and adult-use cannabis. (Business and Professions Code (BPC) § 26000)
- Establishes the Bureau of Cannabis Control (Bureau) under the Department of Consumer Affairs to regulate cannabis by having the sole authority to create, issue, deny, renew, discipline, suspend, or revoke licenses for microbusinesses, transportation, storage unrelated to manufacturing activities, distribution, testing, and sale of cannabis and cannabis products within the state. (BPC §§ 26010, 26012 (a)(1))
- Defines premises as “the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one licensee.” (BPC § 26001 (a))
- Requires an applicant to provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation. (BPC § 26051.5 (c))
- Authorizes a property to contain two or more licensed premises, as demonstrated by regulations requiring the following in a premises diagram: “If the proposed premises consists of only a portion of a property that will contain two or more licensed premises, the diagram shall clearly show the designated entrances and walls under the exclusive control of the applicant for the premises, as well as the designated entrances and walls for each additional premises. The diagram shall also show all proposed common or shared areas of the property. Such areas may include lobbies, bathrooms, hallways, and breakrooms.” (Title 16, California Code of Regulations § 5006)
This bill:
- Redefines “premises” to mean the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this bill shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.
- Clarifies that the requirement that an applicant provide a detailed diagram of the proposed premises shall not be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock wherein no license privileges will be exercised.
- States that this bill implements the Control, Regulate and Tax Adult Use of Marijuana Act (Act) by defining premises, and is consistent with and further the purposes and intent of the Act.
Background
The Legislature passed the Medical Cannabis Regulation and Safety Act (MCRSA) in 2015. MCRSA established, for the first time, a comprehensive statewide licensing and regulatory framework for the cultivation, manufacture, transportation, testing, distribution, and sale of medicinal cannabis to be administered by the Bureau within Department of Consumer Affairs, the Department of Public Health, and the Department of Food and Agriculture, with implementation relying on each agency’s area of expertise.
Shortly following the passage of MCRSA in November 2016, California voters passed Proposition 64, the "Control, Regulate and Tax Adult Use of Marijuana Act" (Prop 64), which legalized adult-use cannabis.
Less than a year later in June 2017, the California State Legislature passed a budget trailer bill, SB 94 (Committee on Budget and Fiscal Review, Chapter 27, Statutes of 2017), that integrated MCRSA with Prop 64 to create MAUCRSA.
MAUCRSA established various requirements for licensure, including parameters for a licensee’s place of business. The current statutory definition of premises is unclear as to what extent a property could be occupied by more than one licensee, however. While it stated that the “structure” shall be a contiguous area occupied by only one licensee, other provisions of law contemplated some degree of shared space by requiring the identification in a license application diagram of “common or shared entryways.” Emergency regulations released on December 7, 2017 to implement MAUCRSA also failed to clarify the issue.
On May 18, 2018, the Administration amended and readopted the emergency regulations following stakeholder engagement. This version of the emergency regulations clarifies that multiple premises can occupy a single property, as long as each premises occupies a contiguous area and follows other Bureau requirements.
This bill affirms Administration policy in statute.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
United Cannabis Business Association (source)
Bouja Limited
California Asian Pacific Chamber of Commerce
CHAMP Distribution
City of Los Angeles
Drug Policy Alliance
Flow Kana
Long Beach Collectives Association
CMG/Caliva
ARGUMENTS IN SUPPORT: The Long Beach Collectives Association writes, “A component of the City of Los Angeles’ social equity program is for existing licensees to provide leased space to individuals who qualify under the City’s social equity program criteria. This means that two separate licensees will be occupying the same building or buildings….
“Current California cannabis regulations define premises as the designated structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted. The premises must be a contiguous area and may only be occupied by one licensee. The term “structure” is not a defined term in MAUCRSA or the department regulations…. It is not clear whether the state requires that each licensed premises have a unique exterior building entrance and exit, which would make it impossible for multiple licensees to occupy the same building.”
ARGUMENTS IN OPPOSITION: CMG/Caliva writes, “CMG/Caliva is one of the largest vertically integrated cannabis operations in the state. One of our motivating principles has long been the creation and enforcement of a regulatory framework that provides assurances to the public as well as the various levels of government that the new legal cannabis industry will be transparent and pristine in its operations. State and local policies have been established that are intended to ensure that objective….
“One of those policies is the recognition that one licensee must be separated physically from another licensee except when an owner holds an adult use and medical use license of the same type. The current definition of ‘premises’ supports that separation by making it clear that the premises shall only be occupied by a single licensee….
“As soon as more than one licensee is allowed to occupy any portion of the premises, unknown elements are introduced into the circumstances and security and control becomes that much less achievable.”
ASSEMBLY FLOOR: 48-21, 5/17/18
AYES: Aguiar-Curry, Arambula, Berman, Bloom, Bonta, Burke, Calderon, Carrillo, Cervantes, Chau, Chiu, Chu, Cooley, Cooper, Daly, Eggman, Frazier, Friedman, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Lackey, Levine, Limón, Low, McCarty, Medina, Mullin, Nazarian, O'Donnell, Quirk, Reyes, Rodriguez, Rubio, Salas, Mark Stone, Thurmond, Ting, Weber, Wood, Rendon
NOES: Acosta, Travis Allen, Baker, Bigelow, Brough, Chávez, Choi, Cunningham, Dahle, Flora, Fong, Gallagher, Harper, Kiley, Maienschein, Mathis, Mayes, Obernolte, Patterson, Voepel, Waldron
NO VOTE RECORDED: Caballero, Chen, Cristina Garcia, Kamlager-Dove, Melendez, Muratsuchi, Quirk-Silva, Santiago, Steinorth
8/8/18 12:40:06
**** END ****
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Jerry Hill, Chair
2017 - 2018 Regular
Bill No: Hearing Date: June 25, 2018
Author: | |||
Version: | June 18, 2018 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Sarah Huchel | ||
Subject:
SUMMARY:
Clarifies “premises” in statute to allow multiple licensees to share common use areas wherein no license privileges will be exercised.
Existing law:
- Establishes the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) to regulate the cultivation, distribution, transport, storage, manufacturing, processing, and sale of both medicinal cannabis and adult-use cannabis. (Business and Professions Code (BPC) § 26000)
- Establishes the Bureau of Cannabis Control (Bureau) under the Department of Consumer Affairs to regulate cannabis by having the sole authority to create, issue, deny, renew, discipline, suspend, or revoke licenses for microbusinesses, transportation, storage unrelated to manufacturing activities, distribution, testing, and sale of cannabis and cannabis products within the state. (BPC §§ 26010, 26012 (a)(1))
- Defines premises as “the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one licensee.” (BPC § 26001 (a))
- Requires an applicant to provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation. (BPC § 26051.5 (c))
- Authorizes a property to contain two or more licensed premises, as demonstrated by regulations requiring the following in a premises diagram: “If the proposed premises consists of only a portion of a property that will contain two or more licensed premises, the diagram shall clearly show the designated entrances and walls under the exclusive control of the applicant for the premises, as well as the designated entrances and walls for each additional premises. The diagram shall also show all proposed common or shared areas of the property. Such areas may include lobbies, bathrooms, hallways, and breakrooms.” (Title 16, California Code of Regulations § 5006)
This bill:
- Redefines “premises” to mean the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this bill shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.
- Clarifies that the requirement that an applicant provide a detailed diagram of the proposed premises shall not be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock wherein no license privileges will be exercised.
- States that this bill implements the Control, Regulate and Tax Adult Use of Marijuana Act (Act) by defining premises, and is consistent with and further the purposes and intent of the Act.
FISCAL EFFECT:
This bill is keyed fiscal by the Legislative Counsel. According to the Assembly Appropriations Committee analysis dated May 9, 2018, this bill has negligible costs.
COMMENTS:
- Purpose. This bill is sponsored by the United Cannabis Business Association. According to the Author’s office, “Currently, multiple licensees cannot occupy the same building. This bill seeks to allow licensees to maximize the use of available locations, reduce overhead costs for small cannabis businesses, and allow the City of Los Angeles to implement an integral component of its social equity program.”
- Cannabis Regulatory Background. The Legislature passed the Medical Cannabis Regulation and Safety Act (MCRSA) in 2015. MCRSA established, for the first time, a comprehensive statewide licensing and regulatory framework for the cultivation, manufacture, transportation, testing, distribution, and sale of medicinal cannabis to be administered by the Bureau within Department of Consumer Affairs, the Department of Public Health, and the Department of Food and Agriculture, with implementation relying on each agency’s area of expertise.
Shortly following the passage of MCRSA in November 2016, California voters passed Proposition 64, the "Control, Regulate and Tax Adult Use of Marijuana Act" (Prop 64), which legalized adult-use cannabis.
Less than a year later in June 2017, the California State Legislature passed a budget trailer bill, SB 94 (Committee on Budget and Fiscal Review, Chapter 27, Statutes of 2017), that integrated MCRSA with Prop 64 to create MAUCRSA.
MAUCRSA established various requirements for licensure, including parameters for a licensee’s place of business. The current statutory definition of premises is unclear as to what extent a property could be occupied by more than one licensee, however. While it stated that the “structure” shall be a contiguous area occupied by only one licensee, other provisions of law contemplated some degree of shared space by requiring the identification in a license application diagram of “common or shared entryways.” Emergency regulations released on December 7, 2017 to implement MAUCRSA also failed to clarify the issue.
On May 18, 2018, the Administration amended and readopted the emergency regulations following stakeholder engagement. This version of the emergency regulations clarifies that multiple premises can occupy a single property, as long as each premises occupies a contiguous area and follows other Bureau requirements.
This bill affirms Administration policy in statute.
- Related Legislation. AB 3069 (Cooper) of 2018 allows informational and educational cannabis events under specified conditions without an event license. (Status: This bill is currently pending in the Senate Business, Professions and Economic Development Committee.)
SB 1294 (Bradford) of 2018 establishes the Cannabis Collaboration and Inclusion Act, which requires Bureau to establish an equity program beginning January 1, 2020, requiring the Bureau to provide technical support to state and local equity applicants and licensees, and requires Governor’s Office of Business and Economic Development to assist state and local equity applicants with business functions. (Status: This bill is currently pending in Assembly Business and Professions Committee.)
- Arguments in Support. The Long Beach Collectives Association writes, “A component of the City of Los Angeles’ social equity program is for existing licensees to provide leased space to individuals who qualify under the City’s social equity program criteria. This means that two separate licensees will be occupying the same building or buildings….
“Current California cannabis regulations define premises as the designated structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted. The premises must be a contiguous area and may only be occupied by one licensee. The term “structure” is not a defined term in MAUCRSA or the department regulations…. It is not clear whether the state requires that each licensed premises have a unique exterior building entrance and exit, which would make it impossible for multiple licensees to occupy the same building.”
- Arguments in Opposition. “CMG/Caliva is one of the largest vertically integrated cannabis operations in the state. One of our motivating principles has long been the creation and enforcement of a regulatory framework that provides assurances to the public as well as the various levels of government that the new legal cannabis industry will be transparent and pristine in its operations. State and local policies have been established that are intended to ensure that objective….
“One of those policies is the recognition that one licensee must be separated physically from another licensee except when an owner holds an adult use and medical use license of the same type. The current definition of ‘premises’ supports that separation by making it clear that the premises shall only be occupied by a single licensee….
“As soon as more than one licensee is allowed to occupy any portion of the premises, unknown elements are introduced into the circumstances and security and control becomes that much less achievable.”
SUPPORT AND OPPOSITION:
Support:
California Asian Pacific Chamber of Commerce
Drug Policy Alliance
Long Beach Collectives Association
Flow Kana
United Cannabis Business Association
Opposition:
CMG/Caliva
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 2980
Author:(Gipson)
As Introduced Ver:February 16, 2018
Majority vote
Committee | Votes | Ayes | Noes |
Business & Professions | 12-3 | Low, Arambula, Bloom, Chen, Chiu, Eggman, Gipson, Grayson, Holden, Irwin, Mullin, Ting | Baker, Cunningham, Fong |
Appropriations | 11-5 | Gonzalez Fletcher, Bloom, Bonta, Calderon, Carrillo, Chau, Friedman, Eduardo Garcia, Nazarian, Quirk, Reyes | Bigelow, Brough, Fong, Gallagher, Flora |
SUMMARY: Redefines "premises" for purposes of licensed cannabis businesses to allow for the sharing of common use areas, such as bathrooms, breakrooms, locker rooms, or hallways, wherein no license privileges are exercised. Specifically, this bill:
- Revises the definition of "premises" to mean the contiguous area wherein the cannabis license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required.
- States that nothing in the definition of "premises" or in the cannabis license application's proposed premises diagram shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, or hallway, wherein no license privileges will be exercised, so long as all licensees comply with the state's cannabis laws.
FISCAL EFFECT: According to the Assembly Committee on Appropriations, negligible costs.
COMMENTS:
Purpose. This bill is sponsored by the United Cannabis Business Association. According to the author:
AB 2980 seeks to reduce barriers and allow for two licensees to occupy the same building and be able to share common spaces for the purpose of providing a leased space to individuals who qualify under the Los Angeles City Social Equity Program. This could potentially be life changing to individuals who were negatively impacted or from communities that were disproportionately harmed by past cannabis law enforcement. This will create opportunity for equitable access to the legal cannabis industry and reduce and remove barriers to ownership of a commercial cannabis business.
Background.
Shared Common Spaces. Under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) and the Bureau of Cannabis Control (BCC)'s emergency regulations, cannabis license applicants are required to submit a detailed diagram of the premises on which they intend to do business. This includes "the boundaries of the property and the proposed premises to be licensed, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, doorways, and common or shared entryways." License applicants are required to include "a brief statement or description of the principal activity to be conducted therein."
There are certain constraints placed on premises where licensed cannabis activity may occur. This includes a prohibition on the co-location of cannabis businesses and alcohol or tobacco businesses as well as a restriction on placing a premise near a school. In addition, multiple cannabis licensees cannot occupy the same premises, with the exception that a single business operator holding both adult-use and medicinal cannabis licenses may utilize each on the same premises. "Premises" is defined as the designated structure or land on which cannabis business activities occur, which must be a contiguous area and may only be occupied by one licensee.
In late 2017, the Los Angeles City Council passed a local ordinance referred to as the Los Angeles Social Equity Program. This program is intended prioritize cannabis business applicants representing demographics disproportionately impacted by the prior criminalization of cannabis for opportunities to engage in the newly regulated cannabis market. Tier 1 applicants under the program are those with a prior cannabis-related conviction, a household income below the federal poverty line, and a minimum of five years residence in a community identified as having been disproportionately impacted by the prior "war on drugs."
Among the various efforts made under the Los Angeles Social Equity Program to reduce barriers to entry into the cannabis industry for communities previously disadvantaged by cannabis prohibition, the ordinance allows for current cannabis licensees to provide leased space to additional licensees who qualify under the program's criteria. This effectively means that multiple licensees would occupy separate spaces within a single building, which may include common areas available to all occupants such as bathrooms, lobbies, and locker rooms. However, current law prohibiting multiple licensees from occupying the same premises does not clearly specify whether this type of arrangement would be a violation.
This bill would revise the definition of "premises" and add additional clarifying language to ensure that separate premises within a single structure featuring certain shared common areas may be occupied by distinct cannabis licensees without violating the state's general prohibition on co-location of cannabis businesses.
ARGUMENTS IN SUPPORT:
The United Cannabis Business Association (UCBA) is sponsoring this bill. UCBA states that the bill is necessary to ensure the successful implementation of the Los Angeles Social Equity Program. UCBA argues that "there are a finite number of locations that comply with the various local and State zoning requirements for commercial cannabis activity in the City of Los Angeles. Clarifying the definition of 'Structure' so that multiple licensees can occupy a building will allow licensees to maximize the use of available locations, reduce overhead costs for small cannabis businesses, and allow the City of Los Angeles to implement an integral component of its social equity program. This view is shared by the United Food and Commercial Workers.
ARGUMENTS IN OPPOSITION:
CMG/Caliva, one of the state's largest vertically integrated cannabis businesses, opposes the bill. Caliva believes that California's cannabis laws are clearly intended to require "that one licensee must be separated physically from another licensee except when an owner holds an adult use and medical use license of the same time." Caliva argues that because law enforcement has indicated that "any square footage within our premises, no matter their use for a licensed activity or not, can be a site for illegal activities," common areas like breakrooms and locker rooms should not be exempted from the general co-location prohibition because they undermine the security of the premises that exists when occupied by only one licensee.
Analysis Prepared by: Robert Sumner / B. & P. / (916) 319-3301 FN: 0002907
Date of Hearing: May 9, 2018
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
ABPCA Bill Id:AB 2980
Author:(Gipson) – As Introduced Ver:February 16, 2018
Policy Committee: | Business and Professions | Vote: | 12 - 3 |
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill redefines “premises” for purposes of licensed cannabis businesses to allow for the sharing of common use areas, such as bathrooms, breakrooms, locker rooms, or hallways, wherein no license privileges are exercised.
FISCAL EFFECT:
Negligible.
COMMENTS:
- Purpose. This bill is intended to clarify current law to allow licensees to share common space. It is sponsored by the United Cannabis Business Association (UCBA) in order to allow multiple licensees to occupy a single building. The UCBA further explains this change is necessary to ensure successful implementation the Los Angeles City Social Equity Program, through which current licensees provide space to additional licensees from communities previously disadvantaged by cannabis prohibition.
- Background. Voter-approved propositions legalized use of medicinal cannabis in 1999 and recreational cannabis in 2016. Subsequent legislation established a combined regulatory structure for both, with the bulk of licensed activity overseen by the Bureau of Cannabis Control (BCC). Under the BCC’s emergency regulations, cannabis license applicants are required to submit a detailed diagram of the premises on which they intend to do business. This includes “the boundaries of the property and the proposed premises to be licensed, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, doorways, and common or shared entryways.” This bill would allow licensees to share common areas.
- Support. UCBA, CHAMP Distribution, and the United Food and Commercial Workers Western States Council support this bill, arguing it is necessary for successful implementation of the Los Angeles City Social Equity Program.
- Opposition. CMG/Caliva, one of the state’s largest vertically integrated cannabis businesses, opposes the bill, arguing it undermines security and that the state's cannabis laws are clearly intended to require physical separation of licensees.
Analysis Prepared by: Lisa Murawski / APPR. / (916) 319-2081
Date of Hearing:
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Evan Low, Chair
ABPCA Bill Id:AB 2980
Author:(Gipson) – As Introduced Ver:February 16, 2018
SUBJECT: Cannabis: premises: common space.
SUMMARY: Redefines “premises” for purposes of licensed cannabis businesses to allow for the sharing of common use areas, such as bathrooms, breakrooms, locker rooms, or hallways, wherein no license privileges are exercised.
EXISTING LAW:
- Enacts the Medicinal and Adult-Use Cannabis Regulation and Safety Act to provide for a comprehensive regulatory framework for the cultivation, distribution, transport, storage, manufacturing, processing, and sale of medicinal and adult-use cannabis. (Business and Professions Code (BPC) §§ 26000 et al.)
- Defines an “A-license” as a state license issued for cannabis or cannabis products intended for adults 21 years of age and older. (BPC § 26001(a))
- Defines “M-license” as a state license for commercial cannabis activity involving medicinal cannabis. (BPC § 26001(ae))
- Provides for twenty total types of cannabis licenses including subtypes for cultivation, manufacturing, testing, retail, distribution, and microbusiness; requires each licensee except for testing laboratories to clearly designate whether their license is for adult-use or medicinal cannabis. (BPC § 26050)
- Establishes the Bureau of Cannabis Control (BCC) within the Department of Consumer Affairs, previously named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation, for purposes of regulating microbusinesses, transportation, storage, distribution, testing, and sale of cannabis and cannabis products within the state. (BPC § 26010)
- Requires the BCC to convene an advisory committee to advise state licensing authorities on the development of standards and regulations for legal cannabis, including best practices and guidelines that protect public health and safety while ensuring a regulated environment for commercial cannabis activity that does not impose such barriers so as to perpetuate, rather than reduce and eliminate, the illicit market for cannabis. (BPC § 26014)
- Provides the Department of Food and Agriculture with responsibility for regulating cannabis cultivators. (BPC § 26060)
- Provides the Department of Public Health with responsibility for regulating cannabis manufacturers. (BPC § 26130)
- Defines “premises” as the designated structure and land specified in a cannabis license application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted; the premises shall be a contiguous area and shall only be occupied by one licensee. (BPC § 26001(ap))
- Requires a cannabis license applicant to provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, specifically showing the boundaries of the property and the proposed premises to be licensed, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, doorways, and common or shared entryways; also requires a brief statement or description of the principal activity to be conducted therein. (BPC § 26051.5)
- Expresses that state cannabis laws shall not be interpreted to supersede or limit the authority of a local jurisdiction to adopt and enforce local ordinances to regulate cannabis businesses. (BPC § 26200)
- Authorizes the Legislature to, by majority vote, enact laws to implement the state’s regulatory scheme for cannabis, provided those laws are consistent with the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act (Proposition 64). (BPC § 26000)
THIS BILL:
- Revises the definition of “premises” to mean the contiguous area wherein the cannabis license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required.
- States that nothing in the definition of “premises” shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, or hallway, wherein no license privileges will be exercised, so long as all licensees comply with the state’s cannabis laws.
- States that nothing in the cannabis license application’s proposed premises diagram shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, or hallway, wherein no license privileges will be exercised so long as all licensees comply with the state’s cannabis laws.
FISCAL EFFECT: Unknown; this bill is keyed fiscal.
COMMENTS:
Purpose. This bill is sponsored by the United Cannabis Business Association. According to the author:
AB 2980 seeks to reduce barriers and allow for two licensees to occupy the same building and be able to share common spaces for the purpose of providing a leased space to individuals who qualify under the Los Angeles City Social Equity Program. This could potentially be life changing to individuals who were negatively impacted or from communities that were disproportionately harmed by past cannabis law enforcement. This will create opportunity for equitable access to the legal cannabis industry and reduce and remove barriers to ownership of a commercial cannabis business.
Background.
Early History of Cannabis Regulation in California. Consumption of cannabis (or “marijuana”) was first made lawful in California when voters approved Proposition 215 in 1996, also known as the Compassionate Use Act. Prop 215 protected qualified patients and primary caregivers from prosecution related to the possession and cultivation of cannabis for medicinal purposes, if recommended by a physician. The initiative prohibited physicians from being punished or denied any right or privilege for making a medicinal cannabis recommendation to a patient. Prop 215 also included 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 patients with medical needs.
The regulatory scheme for medicinal cannabis was further refined by SB 420 (Vasconcellos) in 2003, which established the state’s Medical Marijuana Program (MMP.) Under the MMP, qualified patients were eligible to obtain a voluntary medical marijuana patient card, which could be used to verify that the patient or a caregiver had authorization to cultivate, possess, transport, or use medicinal cannabis. Under the MMP, a patient would obtain a recommendation for medicinal cannabis from a physician and submit proof to their county of residence to receive a card. The MPP’s identification cards were intended to help law enforcement officers identify and verify that cardholders were allowed to cultivate, possess, and/or transport limited amounts of cannabis without being subject to arrest. The MMP also created protections for qualified patients and primary caregivers from prosecution for the formation of collectives and cooperatives for medicinal cannabis cultivation.
Since the state did not adopt a formal framework to provide for appropriate licensure and regulation of medicinal cannabis until late 2015, a proliferation of informally regulated cannabis collectives and cooperatives were largely left to the enforcement of local governments. As a result, a patchwork of local regulations was created with little statewide involvement. More restrictive laws and ordinances by cities and counties were ultimately upheld by the California Supreme Court in City of Riverside v. Inland Empire Patients (2013) 56 Cal. 4th 729, which held that state law did not expressly or implicitly limit 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 medicinal cannabis be prohibited from operating within its borders.
Even after several years of legal cannabis cultivation and consumption under state law, a lack of a uniform regulatory framework led to persistent problems across the state. Cannabis’s continued illegality under the federal Controlled Substances Act, which classifies cannabis as a Schedule I drug ineligible for prescription, generated periodic enforcement activities by the United States Department of Justice. The constant threat of action by the federal government created apprehension among California’s cannabis community.
A document issued by the United States Attorney General in 2013 known as the “Cole memorandum” indicated that the existence of a strong and effective state regulatory system, and a cannabis operation’s compliance with such a system, could allay the threat of federal enforcement interests. Federal prosecutors were urged under the memo to review cannabis cases on a case-by-case basis and consider whether a cannabis operation was in compliance with a strong and effective state regulatory system prior to prosecution. The memo was followed by Congress’s passage of the Rohrabacher-Farr amendment, which prohibits the United States Department of Justice from interceding in state efforts to implement medicinal cannabis.
MCRSA. After several attempts to improve the state’s regulation of cannabis, the Legislature passed the Medical Cannabis Regulation and Safety Act (MCRSA) in 2015. MCRSA consisted of a package of legislation: AB 243 (Wood); AB 266 (Bonta, Cooley, Jones-Sawyer, Lackey, and Wood); and SB 643 (McGuire). MCRSA established, for the first time, a comprehensive statewide licensing and regulatory framework for the cultivation, manufacture, transportation, testing, distribution, and sale of medicinal cannabis to be administered by the newly established BCC within Department of Consumer Affairs, the Department of Public Health, and the Department of Food and Agriculture, with implementation relying on each agency’s area of expertise.
MCRSA vested authority for:
- The BCC to issue licenses and regulate dispensaries, distributors, and transporters, and to provide oversight for the state’s regulatory framework;
- The Department of Public Health to license and regulate testing laboratories and manufacturers; and
- The Department of Food and Agriculture to license and regulate cultivators.
While entrusting state agencies to promulgate extensive regulations governing the implementation of the state’s cannabis laws, MCRSA fully preserved local control. Under MCRSA, local governments may establish their own ordinances to regulate medicinal cannabis activity. Local jurisdictions may also choose to ban cannabis altogether.
AUMA. Not long after the Legislature enacted MCRSA, California voters passed Proposition 64, the Adult Use of Marijuana Act (AUMA). The passage of the AUMA legalized cannabis for non-medicinal adult use in a private home or licensed business, allowed adults 21 and over to possess and give away up to approximately one ounce of cannabis and up to eight grams of concentrate, and permitted the personal cultivation of up to six plants. The law sustained prohibitions against smoking in or operating a vehicle while under the effects of cannabis, possessing cannabis at a school or other child oriented facility while kids are present, growing in an unlocked or public place, and providing cannabis to minors.
The proponents of the AUMA sought to make use of much of the regulatory framework and authorities set out by MCRSA while making a few notable changes to the structure still being implemented. In addition, the AUMA approved by the voters adopted the January 1, 2018 deadline for state implementation of non-medicinal cannabis in addition to the regulations required in MCRSA that are scheduled to take effect on the same date. The same agencies given authority under MCRSA remain responsible for implementing regulations for adult use.
Under the AUMA, the BCC within the Department of Consumer Affairs continues to serve as the lead regulatory agency for all cannabis, both medicinal and non-medicinal. The AUMA includes 19 different license types compared to the 17 in MCRSA and authorizes Department of Consumer Affairs (and the BCC) the exclusive authority to create and regulate a license for transportation of cannabis. The AUMA also allows for vertical integration models which allow the holding of multiple license types previously prohibited under MCRSA. Additionally, while MCRSA requires both a state and local license to operate, the AUMA only stipulates a state license; however, the state is also directed not to issue a license to an applicant if it would “violate the provisions of any local ordinance or regulation.”
The language of the AUMA allows for legislative modifications that “implement” or “give practical effect” to the law by a majority vote. However, the interpretation of what constitutes “implementing” has been interpreted to be very limited. Consequently, proposed changes on the whole, require a two-thirds vote and of those, some may be deemed to require subsequent voter approval.
MAUCRSA. In the spring of 2017, SB 94 (Committee on Budget and Fiscal Review) was introduced to reconcile the distinct systems for the regulation, licensing, and enforcement of legal cannabis that had been established under the respective authorities of MCRSA and the AUMA. The single consolidated system established by the bill—known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA)—created a unified series of cannabis laws and deleted redundant code sections no longer necessary due to the combination of the two systems. MAUCRSA also clarified a number of components, including but not limited to licensing, local control, taxation, testing, and edibles.
As of January 1, 2018, the state has begun issuing temporary licenses (adult-use and medicinal) to cannabis businesses as the state’s regulatory agencies worked toward the finalization of their regulations. While an electronic Track-and-Trace system was implemented pursuant to MAUCRSA, it is not currently being used for temporary licensees. The state’s emergency regulations require temporary licensees to document all sales and transfers of cannabis and cannabis products between temporary licensees—or between temporary licensees and annual licensees—by using paper sales invoices or shipping manifests. Other licensing requirements will not be enforced until the completion of a grace period later in the year. Collectives and cooperatives previously authorized to engage in unlicensed cannabis cultivation are allowed to continue operating until January 9, 2019.
Shared Common Spaces. Under MAUCRSA and the BCC’s emergency regulations, cannabis license applicants are required to submit a detailed diagram of the premises on which they intend to do business. This includes “the boundaries of the property and the proposed premises to be licensed, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, doorways, and common or shared entryways.” License applicants are also required to include “a brief statement or description of the principal activity to be conducted therein.”
There are certain constraints placed on premises where licensed cannabis activity may occur. This includes a prohibition on the co-location of cannabis businesses and alcohol or tobacco businesses as well as a restriction on placing a premise near a school. In addition, multiple cannabis licensees cannot occupy the same premises, with the exception that a single business operator holding both adult-use and medicinal cannabis licenses may utilize each on the same premises. “Premises” is defined as the designated structure or land on which cannabis business activities occur, which must be a contiguous area and may only be occupied by one licensee.
In late 2017, the Los Angeles City Council passed a local ordinance referred to as the Los Angeles Social Equity Program. This program is intended prioritize cannabis business applicants representing demographics disproportionately impacted by the prior criminalization of cannabis for opportunities to engage in the newly regulated cannabis market. Tier 1 applicants under the program are those with a prior cannabis-related conviction, a household income below the federal poverty line, and a minimum of five years residence in a community identified as having been disproportionately impacted by the prior “war on drugs.”
Among the various efforts made under the Los Angeles Social Equity Program to reduce barriers to entry into the cannabis industry for communities previously disadvantaged by cannabis prohibition, the ordinance allows for current cannabis licensees to provide leased space to additional licensees who qualify under the program’s criteria. This effectively means that multiple licensees would occupy separate spaces within a single building, which may include common areas available to all occupants such as bathrooms, lobbies, and locker rooms. However, current law prohibiting multiple licensees from occupying the same premises does not clearly specify whether this type of arrangement would be a violation.
AB 2980 would revise the definition of “premises” and add additional clarifying language to ensure that separate premises within a single structure featuring certain shared common areas may be occupied by distinct cannabis licensees without violating the state’s general prohibition on co-location of cannabis businesses.
Current Related Legislation. AB 3261 (Committee on Business and Professions) would make various clarifying and technical changes to the state’s cannabis laws.
Prior Related Legislation. SB 94 (Committee on Budget and Fiscal Review, Chapter 27, Statutes of 2017) of the current legislative session, combined AUMA and MCRSA into one system for the regulation of cannabis, resulting in MAUCRSA.
ARGUMENTS IN SUPPORT:
The United Cannabis Business Association (UCBA) is sponsoring this bill. UCBA states that the bill is necessary to ensure the successful implementation of the Los Angeles Social Equity Program. UCBA argues that “there are a finite number of locations that comply with the various local and State zoning requirements for commercial cannabis activity in the City of Los Angeles. Clarifying the definition of ‘Structure’ so that multiple licensees can occupy a building will allow licensees to maximize the use of available locations, reduce overhead costs for small cannabis businesses, and allow the City of Los Angeles to implement an integral component of its social equity program. A change is needed in order to ensure equitable access to the legal cannabis industry.” This view is shared by the United Food and Commercial Workers (UFCW) Western States Council, which also supports the bill.
CHAMP Distribution also supports the bill. CHAMP “believes that cannabis distribution is vastly improved through shared facilities and resources” and notes that “economies of scale enable us to create a more efficient wholesale market place that benefits both producers and retailers while supporting small businesses that spur innovation.” CHAMP has requested that the author add language clarifying that loading and transport areas also be shared common spaces.
ARGUMENTS IN OPPOSITION:
CMG/Caliva, one of the state’s largest vertically integrated cannabis businesses, opposes the bill. Caliva believes that California’s cannabis laws are clearly intended to require “that one licensee must be separated physically from another licensee except when an owner holds an adult use and medical use license of the same time.” Caliva argues that because law enforcement has indicated that “any square footage within our premises, no matter their use for a licensed activity or not, can be a site for illegal activities,” common areas like breakrooms and locker rooms should not be exempted from the general co-location prohibition because they undermine the security of the premises that exists when occupied by only one licensee.
REGISTERED SUPPORT:
United Cannabis Business Association (Sponsor)
CHAMP Distribution
United Food and Commercial Workers Western States Council
REGISTERED OPPOSITION:
Caliva
Analysis Prepared by: Robert Sumner / B. & P. / (916) 319-3301
Discussed in Hearing
1MIN
Assembly Floor
2MIN
Senate Floor
2MIN
Senate Floor
2MIN
Senate Floor
2MIN
Senate Standing Committee on Business, Professions and Economic Development
1MIN
Assembly Floor
1MIN
Assembly Standing Committee on Appropriations
9MIN
Assembly Standing Committee on Business and Professions
Bill Author
Bill Co-Author(s):