(1)Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure enacted 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. Existing law, the Medical Cannabis Regulation and Safety Act (MCRSA), also authorizes a person who obtains both a state license under MCRSA and the relevant local license to engage in commercial medical
medicinal cannabis activity pursuant to those licenses, as specified. Under MCRSA, responsibility for the state licensure and regulation of commercial medical cannabis activity is generally divided Both MCRSA and AUMA generally divide responsibility for state licensure and regulation between the Bureau of Marijuana Control (bureau) within the Department of Consumer Affairs, which serves as the lead state agency and administers provisions relating to the transportation, storage unrelated to manufacturing activities, testing, distribution, and sale of medical cannabis; agency, the Department of Food
and Agriculture, which administers provisions relating to the cultivation of medical cannabis; and the State Department of Public Health, which administers provisions
relating to the manufacturing of medical cannabis. Health. AUMA requires the licensing authorities to begin issuing licenses to engage in commercial adult-use cannabis activity by January 1, 2018.
This bill would specify that licensees under the MCRSA may operate for profit or not for profit.(2)Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure enacted by the approval of Proposition 64 at the November 8, 2016, statewide general election, authorizes a person 21 years of age or older to possess and use up to 28.5 grams of marijuana and up to 8 grams of concentrated cannabis, and to possess up to 6 living marijuana plants and the marijuana produced by those plants, subject to certain restrictions, as specified. AUMA also authorizes a person who obtains a state license under AUMA to engage in commercial nonmedical marijuana activity pursuant to that license and applicable local ordinances. AUMA generally divides responsibility for the state licensure and regulation of commercial nonmedical
marijuana activity between the bureau, the Department of Food and Agriculture, and the State Department of Public Health, and requires those state licensing authorities to begin issuing licenses by January 1, 2018.Both MCRSA and AUMA require state licensure to engage in retail sale or delivery. Under MCRSA, persons may engage in those activities with respect to medical cannabis with a Type 10, or dispensary, or Type 10A, or producing dispensary, license. Under AUMA, persons may engage in those activities with respect to nonmedical marijuana with a Type 10, or retailer, or Type 12, or microbusiness, license.This bill would specify that a dispensary, producing dispensary, or retailer license may be issued for storefront locations with premises with direct physical access for the public or nonstorefront locations with premises without direct physical access for the public. The bill would define premises for these
purposes to mean a brick and mortar facility.(3)AUMA authorizes the Department of Consumer Affairs to issue retailer licenses, distributor licenses, and microbusiness licenses. AUMA authorizes a microbusiness licensee to cultivate nonmedical marijuana on an area less than 10,000 square feet and to act as a distributor, a Level 1 manufacturer, and a retailer, provided the licensee complies with all requirements imposed by AUMA on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the licensee engages in such activities.This bill would specify that a microbusiness license does not authorize the distribution of nonmedical marijuana or marijuana products except those produced at the licensed cultivation or manufacturing sites of the microbusiness licensee and sold at the licensed retail establishments under the exclusive control of the
microbusiness licensee.(4)AUMA prescribes various restrictions and requirements on the advertising or marketing of nonmedical marijuana and marijuana products applicable to commercial nonmedical marijuana licensees under that act. These restrictions and requirements include, among other things, a prohibition on advertising or marketing on a billboard or similar advertising device located on an interstate highway or state highway that crosses the border of any other state.This bill would expand that prohibition to apply to advertising or marketing on all interstate highways or state highways and would apply those restrictions and requirements, with this expanded prohibition, to entities regardless of licensure under AUMA, with certain exceptions. The bill would place similar restrictions and requirements on the advertising or marketing of medical cannabis and medical cannabis
products.(5)AUMA states that its licensure and regulation provisions do not supersede or limit the authority of a local jurisdiction to adopt and enforce local ordinances to regulate licensed businesses, except as provided. AUMA provides that an applicant need not provide documentation that the applicant has obtained a license, permit, or other authorization to operate from the local jurisdiction in which the applicant seeks to operate. AUMA prohibits state licensing authorities from approving an application for a state license if approval
of the state license would violate the provisions of a local ordinance or regulation adopted to regulate licensed nonmedical marijuana businesses.The bill would require the determination of a state licensing authority that an applicant for a state license is not in compliance with a local nonmedical marijuana business ordinance or regulation to be based on a written or electronic notification provided to the licensing authority by the local jurisdiction in response to an inquiry from the licensing authority. The bill would require the licensing authority to deem the applicant to be in compliance with all local nonmedical marijuana business ordinances or regulations if the local jurisdiction does not provide a written or electronic notification, as specified, within 90 business days of receiving an inquiry from a state licensing authority.Senate Bill 94 of the 201718 Regular Session (SB 94), effective immediately upon enactment, would consolidate the provisions providing for the licensure and regulation of commercial medicinal cannabis activity and commercial adult-use cannabis activity under a single regulatory scheme, which would be known as the Medicinal and Adult-Use Regulation and Safety Act (MAUCRSA), by repealing MCRSA, incorporating certain provisions of MCRSA into the licensing provisions of AUMA, and making a variety of conforming and related changes.
AUMA defines delivery for the above-described purposes as meaning the commercial transfer of adult-use cannabis or cannabis products to a customer and including the use by a retailer of any technology platform owned and controlled by the retailer, or independently licensed, that enables customers to arrange for or facilitate the commercial transfer by a licensed retailer of adult-use cannabis or
cannabis products. Under MAUCRSA, if SB 94 is enacted, delivery would no longer include the use by a retailer of any technology platform independently licensed.
This bill would expand MAUCRSAs definition of delivery to include the use by a retailer of any technology platform owned, leased, or controlled by the retailer.
(2)MCRSA and AUMA prohibit, and if SB 94 is enacted, MAUCRSA would prohibit, a person licensed to test cannabis or cannabis products from obtaining licensure for any other commercial cannabis activity. Although MCRSA also prohibits testing licensees from owning or having an ownership interest in any entity or premises licensed under a different category pursuant to MCRSA, and although AUMA also prohibits testing licensees from owning or having an ownership interest in a
non-testing facility, SB 94 would repeal these additional prohibitions and instead prohibit a testing licensee from employing an individual who is also employed by any other licensee that does not hold a state testing laboratory license. SB 94 would condition a persons eligibility for more than one license under MAUCRSA upon a requirement that the licensed premises be separate and distinct.
This bill, if SB 94 is enacted, would repeal that separate and distinct premises requirement. The bill would also prohibit a testing licensee under MAUCRSA from owning, or having an ownership interest in, a premises licensed under MAUCRSA for any activity except testing.
(3)Existing law makes it an
infraction punishable by a fine not exceeding $100 for a person to possess not more than one ounce of cannabis while driving a motor vehicle, as specified, unless otherwise authorized by law. SB 94, effective immediately upon enactment, would repeal that provision and instead make it an infraction punishable by a fine not exceeding $100 for a person to possess a receptacle containing cannabis or cannabis product that has been opened, or a seal broken, or to possess loose cannabis flower not in a container, while driving a motor vehicle, with certain exceptions.
This bill would require a retailer, microbusiness, or nonprofit licensed under MAUCRSA to display a sign educating its customers on Californias laws on transporting cannabis or cannabis products in a vehicle, in accordance with the above-described provisions.
(6)(4)Existing law, the Model State Trademark Law, provides for the registration of trademarks and service marks with the Secretary of State and requires the classification of goods and services for those purposes to conform to the classifications adopted by the United States Patent and Trademark Office.
This bill, for purposes of marks for which a certificate of registration is issued on or after January 1, 2018, would, notwithstanding those provisions, authorize the use of specified classifications for marks related to medical cannabis and nonmedical cannabis cannabis, including medicinal cannabis, goods and
services that are lawfully in commerce under state law in the State of California.
(7)AUMA, commencing January 1, 2018, imposes an excise tax on the purchase of marijuana and
marijuana products, including medical cannabis and medical cannabis products, and a separate cultivation tax on all harvested marijuana, including medical cannabis, as specified, and requires revenues from those taxes to be deposited into the California Marijuana Tax Fund, which is continuously
appropriated for specified purposes pursuant to a specified schedule. Under AUMA, this schedule includes an annual allocation to the Department of the California Highway Patrol beginning with the 201819 fiscal year until the 202223 fiscal year, for the purposes of establishing and adopting protocols to determine whether a driver is operating a vehicle while impaired, among other purposes. This schedule also includes separate annual allocations to the Department of the California Highway Patrol and the Board of State and Community Corrections, beginning with the 201819 fiscal year, to fund grants to qualified nonprofit organizations and local governments for education, prevention, and enforcement of laws related to driving under the influence of alcohol and other drugs, among other purposes, and to fund grants to local governments to assist with local programs addressing public health and safety associated with the implementation of AUMA, respectively.This bill
would amend AUMA by modifying that schedule to require the disbursement of funds, prior to certain other disbursements, to the Department of the California Highway Patrol and the Board of State and Community Corrections for reasonable costs incurred managing the administration of those grants, would advance $3,000,000 as a loan from the General Fund to the Department of the California Highway Patrol for use in the 201718 fiscal year for the purposes for which allocations to the Department of the California Highway Patrol are required until the 202223 fiscal year, as described above, and would require that loan to be repaid from specified amounts disbursed from the California Marijuana Tax Fund. By modifying the schedule of disbursements and advancing a loan, this bill would make an appropriation.(8)Existing law makes it a crime for a person who is under the influence of any drug, or the combined influence of alcohol and any drug, to drive a vehicle. Existing law also makes it a crime for a person who is under the influence of any drug, or the combined influence of alcohol and any drug, to drive a vehicle and concurrently do any act forbidden by law, or neglect any duty imposed by law in driving the vehicle, when the act or neglect proximately causes bodily injury to a person other than the driver.This bill would recast these provisions without substantive change to provide for separate offenses for a person who is under the influence of marijuana or the combined influence of alcohol and marijuana and a person who is under the influence of a drug other marijuana or the combined influence of alcohol and a drug other than marijuana, as specified.(9)Existing law makes it an infraction punishable by a fine not exceeding $100 for a person to possess not more than one ounce of marijuana while driving a motor vehicle, as specified, unless otherwise authorized by law.This bill would make it an infraction punishable by a fine not exceeding $100 for a person to possess marijuana while driving a motor vehicle, as specified, unless the marijuana is stored in the vehicle as provided or the person is a licensee under MCRSA or AUMA acting in accordance with applicable regulations.By creating a new crime, this bill would impose a state-mandated local program.(10)(5)Existing law exempts qualified medical marijuana medicinal cannabis patients with valid identification cards, the designated primary caregivers of those patients, and persons with identification cards who associate within the State of California in order, collectively or cooperatively, to cultivate cannabis for medical medicinal purposes from specified criminal liability, including possession, cultivation, and transport of cannabis until one year after the
bureau posts a notice on its Internet Web site that licenses for medical
commercial cannabis activity have begun being issued.
This bill would authorize these collectives and cooperatives to operate for profit or not for profit. The bill would limit the protection for collectives and collaboratives operating for profit to those collectives and collaboratives that possess a valid sellers permit from the State Board of Equalization and a valid local license, permit, or other authorization.
(11)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.(12)(6)AUMA authorizes the Legislature to amend its provisions by a 2/3 vote of each house if the amendment furthers its purposes and intent.
This bill would state that the bill furthers the purposes and intent of AUMA for specified reasons.
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