UNFINISHED BUSINESS  

Bill No: SB 1244

Author: Bradford (D)

Amended: 8/25/20

Vote: 21

SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 9-0, 5/18/20

AYES: Glazer, Chang, Archuleta, Dodd, Galgiani, Hill, Leyva, Pan, Wilk

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SENATE FLOOR: 39-0, 6/11/20

AYES: Allen, Archuleta, Atkins, Bates, Beall, Borgeas, Bradford, Caballero, Chang, Dahle, Dodd, Durazo, Galgiani, Glazer, Lena Gonzalez, Grove, Hertzberg, Hill, Hueso, Jackson, Jones, Leyva, McGuire, Melendez, Mitchell, Monning, Moorlach, Morrell, Nielsen, Pan, Portantino, Roth, Rubio, Skinner, Stern, Umberg, Wieckowski, Wiener, Wilk

NO VOTE RECORDED: Hurtado

ASSEMBLY FLOOR: 74-0, 8/30/20 - See last page for vote

SUBJECT: Cannabis testing laboratories

SOURCE: Los Angeles City Attorney’s Office

DIGEST:

This bill (1) authorizes a testing laboratory to receive and test samples of cannabis or cannabis products from state or local law enforcement, or a prosecuting or regulatory agency; and (2) clarifies that testing conducted by a testing laboratory for state or local law enforcement, a prosecuting agency, or a regulatory agency, is not commercial cannabis activity and would prohibit that testing from being arranged or overseen by the bureau.

Assembly Amendments

clarify that testing conducted by a testing laboratory for state or local law enforcement, a prosecuting agency, or a regulatory agency, is not commercial cannabis activity and prohibit that testing from being arranged or overseen by the bureau.

ANALYSIS:

Existing law:

1. 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 and adult-use cannabis. (Business and Professions Code (BPC) § 26000)
2. Establishes various licenses for the purposes of regulating the recreational and medical cannabis industry, including a Type 8 license for a medical and recreational cannabis testing laboratory. (BPC § 26050)
3. Requires all commercial cannabis activity to be conducted between licensees, with specified exemptions. (BPC § 26053)
4. Prohibits any cannabis or cannabis product from being sold unless a representative sample of the cannabis or cannabis product has been tested by a licensed testing laboratory, unless otherwise provided by law. (BPC § 26100)
5. Permits a licensee to perform testing on the licensee’s premises for the purposes of quality assurance of cannabis or a cannabis product in conjunction with reasonable business operations, and permits a licensee to perform testing on cannabis or cannabis products obtained from another licensee. However, onsite testing by the licensee shall not be certified by the Bureau of Cannabis Control (Bureau) and does not exempt the licensee from the requirements of quality assurance testing at a testing laboratory. (BPC § 26100 (l))
6. Specifies the procedures by which a testing laboratory acquires or receives cannabis or cannabis products. (BPC § 26104(c))
7. Permits a testing laboratory to receive and test samples of cannabis or cannabis products from a qualified patient or primary caregiver if presented with the qualified patient’s valid physician’s recommendation for medicinal cannabis; prohibits a testing laboratory from certifying samples from a qualified patient or primary caregiver for resale or transfer to another party or license; and requires the name of the qualified patient or primary caregiver and the amount of cannabis or cannabis product received to be recorded for all tests done by a testing laboratory. (BPC § 26104(d))
8. Permits a testing laboratory to receive and test samples of cannabis or cannabis products from a person over 21 years of age when the cannabis has been grown by that person and will be used solely for his or her authorized personal use; prohibits a testing laboratory from certifying samples for resale or transfer to another person or licensee; and requires the name of the person and the amount of cannabis or cannabis product received to be recorded for all tests done by a testing laboratory. (BPC § 26104(e))

This bill authorizes a testing laboratory to receive samples of cannabis or cannabis products from state or local law enforcement, or a prosecuting or regulatory agency in order to test the cannabis or cannabis products. This bill also clarifies that testing conducted by a testing laboratory for state or local law enforcement, a prosecuting agency, or a regulatory agency, is not commercial cannabis activity and prohibits that testing from being arranged or overseen by the bureau.

Background

Cannabis in California. In 1996, California voters approved Proposition 215, the Compassionate Use Act, which exempted patients and their primary caregivers from criminal liability under state law for the possession and cultivation of cannabis. In 2015, Governor Brown signed into law three bills that created a comprehensive state licensing and regulatory framework governing the commercial cultivation, manufacture, retail sale, transport, distribution, delivery, and testing of medical cannabis in California. AB 243 (Wood, Chapter 688, Statutes of 2015), AB 266 (Bonta, Chapter 689, Statutes of 2015), and SB 643 (McGuire, Chapter 719, Statutes of 2015) collectively established the Medical Marijuana Regulation and Safety Act (later renamed to the Medical Cannabis Regulation and Safety Act (MCRSA)). In 2016, California voters passed Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), legalizing the distribution, sale, and possession of cannabis for adult use. In June 2017, MCRSA and AUMA were combined to form one system for the regulation of Cannabis, the MAUCRSA.

Cannabis Testing Requirements. MAUCRSA requires specific testing procedures for cannabis. A Testing Laboratory (Type 8) license from the Bureau allows a laboratory, facility, or entity in the state California to offer or perform testing of cannabis goods. Before a distributor can transport cannabis or cannabis products to a retailer, a licensed testing laboratory must test samples for potency, foreign materials, heavy metals, microbial impurities, mycotoxins, residual pesticides, and residual solvents and processing chemicals. Testing laboratories also check cannabinoid potency levels such as THC and CBD. Current law authorizes licensed testing laboratories to test cannabis from other licensees, medicinal cannabis consumers, and individuals growing for personal use. This bill also allows licensing testing laboratories to test cannabis from state or local law enforcement, or a prosecuting or regulatory agency.

Use of Laboratories for Law Enforcement Purposes. Traditionally, law enforcement and prosecution agencies use professional crime labs for evidence testing purposes. According to information provided by the sponsor, the use of existing crime labs is not currently feasible. The sponsor indicates that the Los Angeles Police Department (LAPD) Forensic Science Division (FSD) is not currently capable of conducting quantitative analysis of the amount of THC present in a substance necessary to prove through direct evidence that a substance is cannabis. The sponsor notes that LAPD will not be able to conduct this testing until at least fall 2020. The sponsor further argues that LAPD FSD is not currently capable of conducting the contaminant testing required to prove the presence of certain contaminants in cannabis (such as pesticides or vitamin E acetate).

Ensuring Proper Handling of Criminal Evidence. Cannabis testing laboratories are not currently trained in the handling criminal evidence. Further, this bill does not require laboratories to receive specific training, nor does it require the Bureau to enforce new standards relative to testing for criminal enforcement purposes. According to the sponsor, the Los Angeles City Attorney’s Office will work with LAPD FSD to train cannabis testing laboratories regarding chain of custody to ensure laboratories handle evidence in an appropriate manner.

Laboratory Choices. As currently drafted this bill allows, but does not require, cannabis testing laboratories to test products from law enforcement or prosecution agencies. According to the sponsor, this is consistent with the intent of the bill-to allow laboratories to choose whether or not to take law enforcement as a client. Additionally, with recent amendments taken in the Assembly, this bill clarifies that testing conducted by a testing laboratory for state or local law enforcement, a prosecuting agency, or a regulatory agency is not commercial cannabis activity and shall not be arranged or overseen by the bureau.

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

SUPPORT: (Verified 8/29/20)

Los Angeles City Attorney’s Office (source)

Americans for Safe Access

California Cannabis Industry Association

California District Attorneys Association

City of Los Angeles

Los Angeles County District Attorney's Office

Southern California Coalition

United Cannabis Business Association

United Food and Commercial Workers, Western States Council

OPPOSITION: (Verified 8/29/20)

None received

ARGUMENTS IN SUPPORT: Los Angeles City Attorney’s Office, the sponsor of this bill, argues that this bill “would provide an important deterrent to the selling of illicit and untested cannabis by putting operators on notice that prosecutors have an efficient means to test cannabis and cannabis products for chemical profile and contaminants.” Supporters generally argue that it is critical for law enforcement to have the necessary tools to address illicit cannabis activity that threatens both public health and the survival of the cannabis industry.

ASSEMBLY FLOOR: 74-0, 8/30/20

AYES: Aguiar-Curry, Arambula, Bauer-Kahan, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Calderon, Carrillo, Cervantes, Chau, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Megan Dahle, Daly, Diep, Flora, Fong, Friedman, Gabriel, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Boerner Horvath, Eggman, Frazier, Voepel, Wicks

Prepared by: Dana Shaker / B., P. & E.D. /

8/31/20 0:53:23

**** END ****

SENATE THIRD READING

STR Bill Id:SB 1244

Author:(Bradford)

As Introduced Ver:August 25, 2020

Majority vote

SUMMARY:

Authorizes a testing laboratory to receive and test samples of cannabis or cannabis products from state or local law enforcement, or a prosecuting or regulatory agency.

Major Provisions

1. Authorizes a testing laboratory to receive samples of cannabis or cannabis products from state or local law enforcement, or a prosecuting or regulatory agency in order to test the cannabis or cannabis products.
2. Testing conducted by a testing laboratory for state or local law enforcement, a prosecuting agency, or a regulatory agency is not commercial cannabis activity and shall not be arranged or overseen by the bureau.

COMMENTS:

Cannabis Testing Requirements. Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) requires specific testing procedures for cannabis. A Testing Laboratory (Type 8) license from the Bureau allows a laboratory, facility, or entity in the state California to offer or perform testing of cannabis goods. Before a distributor can transport cannabis or cannabis products to a retailer, a licensed testing laboratory must test samples for potency, foreign materials, heavy metals, microbial impurities, mycotoxins, residual pesticides, and residual solvents and processing chemicals. Testing laboratories also check cannabinoid potency levels such as THC and CBD. Current law authorizes licensed testing laboratories to test cannabis from other licensees, medicinal cannabis consumers, and individuals growing for personal use. This bill would also allow licensing testing laboratories to test cannabis from state or local law enforcement, or a prosecuting or regulatory agency.

Use of Laboratories for Law Enforcement Purposes. Traditionally, law enforcement and prosecution agencies use professional crime labs for evidence testing purposes. According to information provided by the sponsor, the use of existing crime labs is not currently feasible. The sponsor indicates that the Los Angeles Police Department (LAPD) Forensic Science Division (FSD) is not currently capable of conducting quantitative analysis of the amount of THC present in a substance necessary to prove through direct evidence that a substance is cannabis. The sponsor notes that LAPD will not be able to conduct this testing until at least fall 2020. The sponsor further argues that LAPD FSD is not currently capable of conducting the contaminant testing required to prove the presence of certain contaminants in cannabis (such as pesticides or vitamin E acetate).

Ensuring Proper Handling of Criminal Evidence. Cannabis testing laboratories are not currently trained in the handling criminal evidence. Further, the bill does not require laboratories to receive specific training, nor does it require the Bureau to enforce new standards relative to testing for criminal enforcement purposes. According to the sponsor, the Los Angeles City Attorney's Office will work with LAPD FSD to train cannabis testing laboratories regarding chain of custody to ensure laboratories handle evidence in an appropriate manner.

According to the Author:

This bill is sponsored by Los Angeles City Attorney Michael Feuer. According to the Author, "[This bill] is a timely and appropriate consumer protection measure. During the COVID-19 pandemic, demand for cannabis products has surged to unprecedented levels and the industry has been designated as an essential business. Yet, state and local agencies are effectively prohibited from testing cannabis for compliance with existing product standards. [This bill] accordingly enhances cannabis consumer safety by allowing state and local agencies to use state-licensed labs in order to test cannabis and cannabis products."

Arguments in Support:

According to The City of Los Angeles, "The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) authorizes a person who obtains a state license to engage in commercial and medicinal cannabis activities, including testing laboratories that test cannabis and cannabis-related products. Cannabis and cannabis-related products are required to be tested by licensed testing laboratories prior to their distribution in order to ensure that these products are free of contaminants and safe for consumer use. These licensed cannabis testing laboratories are prohibited from acquiring or receiving cannabis and cannabis-related products except from a commercial or medicinal cannabis licensee. [This bill] will serve as a tool to crack down on illegal cannabis operators which are proliferating and undermining the legal cannabis marketplace."

Arguments in Opposition:

None on file.

FISCAL COMMENTS:

None. This bill is keyed non fiscal by the Legislative Counsel.

VOTES:

SENATE FLOOR: 39-0-1

YES: Allen, Archuleta, Atkins, Bates, Beall, Borgeas, Bradford, Caballero, Chang, Dahle, Dodd, Durazo, Galgiani, Glazer, Lena Gonzalez, Grove, Hertzberg, Hill, Hueso, Jackson, Jones, Leyva, McGuire, Melendez, Mitchell, Monning, Moorlach, Morrell, Nielsen, Pan, Portantino, Roth, Rubio, Skinner, Stern, Umberg, Wieckowski, Wiener, Wilk

ABS, ABST OR NV: Hurtado

ASM BUSINESS AND PROFESSIONS: 19-0-0

YES: Low, Arambula, Bloom, Chen, Chiu, Flora, Eggman, Fong, Gipson, Gloria, Grayson, Holden, Irwin, McCarty, Medina, Mullin, Obernolte, Ting, Megan Dahle

UPDATED:

VERSION: August 25, 2020

CONSULTANT: Danielle Sires / B. & P. / (916) 319-3301 FN: 0003371

Date of Hearing: August 10, 2020

ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS

Evan Low, Chair

SBPCA Bill Id:SB 1244

Author:(Bradford) – As Introduced Ver:February 20, 2020

SENATE VOTE: 39-0

SUBJECT: Cannabis testing laboratories

SUMMARY: Authorizes a testing laboratory to receive and test samples of cannabis or cannabis products from state or local law enforcement, or a prosecuting or regulatory agency.

EXISTING LAW:

1. 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 and adult-use cannabis. (Business and Professions Code (BPC) § 26000)
2. Establishes the Bureau of Cannabis Control (Bureau) under the Department of Consumer Affairs (DCA) to regulate the medical and recreational cannabis industry. (BPC § 26010)
3. Establishes various licenses for the purposes of regulating the recreational and medical cannabis industry, including a Type 8 license for a medical and recreational cannabis testing laboratory. (BPC § 26050)
4. Requires all commercial cannabis activity to be conducted between licensees, with specified exemptions. (BPC § 26053)
5. Prohibits any cannabis or cannabis product from being sold unless a representative sample of the cannabis or cannabis product has been tested by a licensed testing laboratory, unless otherwise provided by law. (BPC § 26100)
6. Permits a licensee to perform testing on the licensee’s premises for the purposes of quality assurance of cannabis or a cannabis product in conjunction with reasonable business operations, and permits a licensee to perform testing on cannabis or cannabis products obtained from another licensee. However, onsite testing by the licensee shall not be certified by the Bureau and does not exempt the licensee from the requirements of quality assurance testing at a testing laboratory. (BPC § 26100 (l))
7. Specifies the procedures by which a testing laboratory acquires or receives cannabis or cannabis products. (BPC § 26104(c))
8. Permits a testing laboratory to receive and test samples of cannabis or cannabis products from a qualified patient or primary caregiver if presented with the qualified patient’s valid physician’s recommendation for medicinal cannabis; prohibits a testing laboratory from certifying samples from a qualified patient or primary caregiver for resale or transfer to another party or license; and requires the name of the qualified patient or primary caregiver and the amount of cannabis or cannabis product received to be recorded for all tests done by a testing laboratory. (BPC § 26104(d))
9. Permits a testing laboratory to receive and test samples of cannabis or cannabis products from a person over 21 years of age when the cannabis has been grown by that person and will be used solely for his or her authorized personal use; prohibits a testing laboratory from certifying samples for resale or transfer to another person or licensee; and requires the name of the person and the amount of cannabis or cannabis product received to be recorded for all tests done by a testing laboratory. (BPC § 26104(e))
10. Permits a person 21 years of age or older to possess, process, transport, purchase, obtain, or give away to a person 21 years of age or older not more than 28.5 grams of cannabis, not in the form of concentrate. (Health and Safety Code (HSC) § 11362.1(a))
11. Permits a person 21 years of age or older to possess, plant, cultivate, harvest, dry, or process not more than six living cannabis plants and possess the cannabis produced by the plants. (HSC 11362.1(a)(3)

THIS BILL:

1. Authorizes a testing laboratory to receive samples of cannabis or cannabis products from state or local law enforcement, or a prosecuting or regulatory agency in order to test the cannabis or cannabis products.

FISCAL EFFECT: None. This bill is keyed non fiscal by Legislative Counsel.

COMMENTS:

Purpose. This bill is sponsored by Los Angeles City Attorney Michael Feuer. According to the Author, “[This bill] is a timely and appropriate consumer protection measure. During the COVID-19 pandemic, demand for cannabis products has surged to unprecedented levels and the industry has been designated as an essential business. Yet, state and local agencies are effectively prohibited from testing cannabis for compliance with existing product standards. [This bill] accordingly enhances cannabis consumer safety by allowing state and local agencies to use state-licensed labs in order to test cannabis and cannabis products.”

Background. Cannabis in California. In 1996, California voters approved Proposition 215, the Compassionate Use Act, which exempted patients and their primary caregivers from criminal liability under state law for the possession and cultivation of cannabis. In 2015, Governor Brown signed into law three bills that created a comprehensive state licensing and regulatory framework governing the commercial cultivation, manufacture, retail sale, transport, distribution, delivery, and testing of medical cannabis in California. AB 243 (Wood, Chapter 688, Statutes of 2015), AB 266 (Bonta, Chapter 689, Statutes of 2015), and SB 643 (McGuire, Chapter 719, Statutes of 2015) collectively established the Medical Marijuana Regulation and Safety Act (later renamed to the Medical Cannabis Regulation and Safety Act (MCRSA)). In 2016, California voters passed Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), legalizing the distribution, sale, and possession of cannabis for adult use. In June 2017, MCRSA and AUMA were combined to form one system for the regulation of Cannabis, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA).

Cannabis Testing Requirements. MAUCRSA requires specific testing procedures for cannabis. A Testing Laboratory (Type 8) license from the Bureau allows a laboratory, facility, or entity in the state California to offer or perform testing of cannabis goods. Before a distributor can transport cannabis or cannabis products to a retailer, a licensed testing laboratory must test samples for potency, foreign materials, heavy metals, microbial impurities, mycotoxins, residual pesticides, and residual solvents and processing chemicals. Testing laboratories also check cannabinoid potency levels such as THC and CBD. Current law authorizes licensed testing laboratories to test cannabis from other licensees, medicinal cannabis consumers, and individuals growing for personal use. This bill would also allow licensing testing laboratories to test cannabis from state or local law enforcement, or a prosecuting or regulatory agency.

Use of Laboratories for Law Enforcement Purposes. Traditionally, law enforcement and prosecution agencies use professional crime labs for evidence testing purposes. According to information provided by the sponsor, the use of existing crime labs is not currently feasible. The sponsor indicates that the Los Angeles Police Department (LAPD) Forensic Science Division (FSD) is not currently capable of conducting quantitative analysis of the amount of THC present in a substance necessary to prove through direct evidence that a substance is cannabis. The sponsor notes that LAPD will not be able to conduct this testing until at least fall 2020. The sponsor further argues that LAPD FSD is not currently capable of conducting the contaminant testing required to prove the presence of certain contaminants in cannabis (such as pesticides or vitamin E acetate).

Ensuring Proper Handling of Criminal Evidence. Cannabis testing laboratories are not currently trained in the handling criminal evidence. Further, the bill does not require laboratories to receive specific training, nor does it require the Bureau to enforce new standards relative to testing for criminal enforcement purposes. According to the sponsor, the Los Angeles City Attorney’s Office will work with LAPD FSD to train cannabis testing laboratories regarding chain of custody to ensure laboratories handle evidence in an appropriate manner.

Laboratory Choices. As currently drafted this bill allows, but does not require, cannabis testing laboratories to test products from law enforcement or prosecution agencies. According to the sponsor, this is consistent with the intent of the bill-to allow laboratories to choose whether or not to take law enforcement as a client.

Prior Related Legislation. The Adult Use of Marijuana Act (AUMA) of 2016 (Proposition 64) established requirements for the State Department of Public Health to develop procedures for the testing of marijuana, requirements for the frequency and testing, assigns the costs of testing to the marijuana cultivator or manufacturer, and requires the destruction of non-compliant material, among many other provisions.

Senate Bill 94 (Senate Budget & Fiscal Review Committee – Chapter 27, Statutes of 2017) shifted the responsibility for developing procedures and requirements for testing of cannabis and cannabis products to the Bureau of Cannabis Control, as well as established requirements for the chain of custody for test samples, and prohibited testing laboratories from acquiring or receiving cannabis or cannabis products, except from specified sources, among other provisions.

Assembly Bill 133 (Assembly Budget Committee, Chapter 253, Statutes of 2017) struck the prohibition on testing laboratories from delivering, transferring, or transporting cannabis or cannabis products under specified conditions, among other provisions.

Assembly Bill 2721 (Quirk, Chapter 546, Statutes of 2018) allowed testing laboratories to receive and test cannabis or cannabis products from a person over 21 years old if that cannabis was grown by that person solely for their own use.

Assembly Bill 1461 (Quirk, 2019) would have allowed samples of cannabis products to be taken for testing by a laboratory employee at the manufacturer’s premises, not only the distributor’s premises. This bill was set for a hearing in the Assembly Business and Professions Committee but was pulled by the author.

Senate Bill 627 (Galgiani, 2019) would authorize testing laboratories to receive and test samples of cannabis and cannabis products for medicinal use on an animal by a person at least 21 years old if recommended by a veterinarian. This bill was set for a hearing in the Assembly Appropriations Committee but was pulled at the request of the author.

ARGUMENTS IN SUPPORT: According to The City of Los Angeles, “The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) authorizes a person who obtains a state license to engage in commercial and medicinal cannabis activities, including testing laboratories that test cannabis and cannabis-related products. Cannabis and cannabis-related products are required to be tested by licensed testing laboratories prior to their distribution in order to ensure that these products are free of contaminants and safe for consumer use. These licensed cannabis testing laboratories are prohibited from acquiring or receiving cannabis and cannabis-related products except from a commercial or medicinal cannabis licensee.

[This bill] would authorize licensed testing laboratories to receive and test samples of cannabis or cannabis-related products from a state or local law enforcement agency, or a prosecuting or regulatory agency. This would provide an important deterrent to the selling of illicit and untested cannabis and cannabis-related products by putting operators on notice that prosecutors have an efficient means to test these products for their chemical profiles and contaminants. [This bill] will serve as a tool to crack down on illegal cannabis operators which are proliferating and undermining the legal cannabis marketplace.”

ARGUMENTS IN OPPOSITION:

None on file.

REGISTERED SUPPORT:

Los Angeles City Attorney's Office (Sponsor)

Americans for Safe Access

California Cannabis Industry Association

California District Attorneys Association

City of Los Angeles

Los Angeles County District Attorney's Office

Southern California Coalition

United Cannabis Business Association

United Food and Commercial Workers, Western States Council

REGISTERED OPPOSITION:

None on file.

Analysis Prepared by: Danielle Sires / B. & P. / (916) 319-3301

 THIRD READING  

Bill No: SB 1244

Author: Bradford (D)

Introduced: 2/20/20

Vote: 21

SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 9-0, 5/18/20

AYES: Glazer, Chang, Archuleta, Dodd, Galgiani, Hill, Leyva, Pan, Wilk

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT: Cannabis testing laboratories

SOURCE: City of Los Angeles, City Attorney’s Office

DIGEST:

This bill authorizes a testing laboratory to receive and test samples of cannabis or cannabis products from state or local law enforcement, or a prosecuting or regulatory agency.

ANALYSIS:

Existing law:

1. 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 and adult-use cannabis. (Business and Professions Code (BPC) § 26000)
2. Establishes various licenses for the purposes of regulating the recreational and medical cannabis industry, including a Type 8 license for a medical and recreational cannabis testing laboratory. (BPC § 26050)
3. Requires all commercial cannabis activity to be conducted between licensees, with specified exemptions. (BPC § 26053)
4. Prohibits any cannabis or cannabis product from being sold unless a representative sample of the cannabis or cannabis product has been tested by a licensed testing laboratory, unless otherwise provided by law. (BPC § 26100)
5. Permits a licensee to perform testing on the licensee’s premises for the purposes of quality assurance of cannabis or a cannabis product in conjunction with reasonable business operations, and permits a licensee to perform testing on cannabis or cannabis products obtained from another licensee. However, onsite testing by the licensee shall not be certified by the Bureau of Cannabis Control (Bureau) and does not exempt the licensee from the requirements of quality assurance testing at a testing laboratory. (BPC § 26100 (l))
6. Specifies the procedures by which a testing laboratory acquires or receives cannabis or cannabis products. (BPC § 26104(c))
7. Permits a testing laboratory to receive and test samples of cannabis or cannabis products from a qualified patient or primary caregiver if presented with the qualified patient’s valid physician’s recommendation for medicinal cannabis; prohibits a testing laboratory from certifying samples from a qualified patient or primary caregiver for resale or transfer to another party or license; and requires the name of the qualified patient or primary caregiver and the amount of cannabis or cannabis product received to be recorded for all tests done by a testing laboratory. (BPC § 26104(d))
8. Permits a testing laboratory to receive and test samples of cannabis or cannabis products from a person over 21 years of age when the cannabis has been grown by that person and will be used solely for his or her authorized personal use; prohibits a testing laboratory from certifying samples for resale or transfer to another person or licensee; and requires the name of the person and the amount of cannabis or cannabis product received to be recorded for all tests done by a testing laboratory. (BPC § 26104(e))

This bill authorizes a testing laboratory to receive samples of cannabis or cannabis products from state or local law enforcement, or a prosecuting or regulatory agency in order to test the cannabis or cannabis products.

Background

Cannabis in California. In 1996, California voters approved Proposition 215, the Compassionate Use Act, which exempted patients and their primary caregivers from criminal liability under state law for the possession and cultivation of cannabis. In 2015, Governor Brown signed into law three bills that created a comprehensive state licensing and regulatory framework governing the commercial cultivation, manufacture, retail sale, transport, distribution, delivery, and testing of medical cannabis in California. AB 243 (Wood, Chapter 688, Statutes of 2015), AB 266 (Bonta, Chapter 689, Statutes of 2015), and SB 643 (McGuire, Chapter 719, Statutes of 2015) collectively established the Medical Marijuana Regulation and Safety Act (later renamed to the Medical Cannabis Regulation and Safety Act (MCRSA)). In 2016, California voters passed Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), legalizing the distribution, sale, and possession of cannabis for adult use. In June 2017, MCRSA and AUMA were combined to form one system for the regulation of Cannabis, the MAUCRSA.

Cannabis Testing Requirements. MAUCRSA requires specific testing procedures for cannabis. A Testing Laboratory (Type 8) license from the Bureau allows a laboratory, facility, or entity in the state California to offer or perform testing of cannabis goods. Before a distributor can transport cannabis or cannabis products to a retailer, a licensed testing laboratory must test samples for potency, foreign materials, heavy metals, microbial impurities, mycotoxins, residual pesticides, and residual solvents and processing chemicals. Testing laboratories also check cannabinoid potency levels such as THC and CBD. Current law authorizes licensed testing laboratories to test cannabis from other licensees, medicinal cannabis consumers, and individuals growing for personal use. This bill also allows licensing testing laboratories to test cannabis from state or local law enforcement, or a prosecuting or regulatory agency.

Use of Laboratories for Law Enforcement Purposes. Traditionally, law enforcement and prosecution agencies use professional crime labs for evidence testing purposes. According to information provided by the sponsor, the use of existing crime labs is not currently feasible. The sponsor indicates that the Los Angeles Police Department (LAPD) Forensic Science Division (FSD) is not currently capable of conducting quantitative analysis of the amount of THC present in a substance necessary to prove through direct evidence that a substance is cannabis. The sponsor notes that LAPD will not be able to conduct this testing until at least fall 2020. The sponsor further argues that LAPD FSD is not currently capable of conducting the contaminant testing required to prove the presence of certain contaminants in cannabis (such as pesticides or vitamin E acetate).

Ensuring Proper Handling of Criminal Evidence. Cannabis testing laboratories are not currently trained in the handling criminal evidence. Further, this bill does not require laboratories to receive specific training, nor does it require the Bureau to enforce new standards relative to testing for criminal enforcement purposes. According to the sponsor, the Los Angeles City Attorney’s Office will work with LAPD FSD to train cannabis testing laboratories regarding chain of custody to ensure laboratories handle evidence in an appropriate manner.

Laboratory Choices. As currently drafted this bill allows, but does not require, cannabis testing laboratories to test products from law enforcement or prosecution agencies. According to the sponsor, this is consistent with the intent of the bill-to allow laboratories to choose whether or not to take law enforcement as a client.

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

SUPPORT: (Verified 6/10/20)

City of Los Angeles, City Attorney’s Office (source)

Americans for Safe Access

California Cannabis Industry Association

California District Attorneys Association

City of Los Angeles

Southern California Coalition

United Cannabis Business Association

United Food and Commercial Workers Union

OPPOSITION: (Verified 6/10/20)

None received

ARGUMENTS IN SUPPORT: Supporters say that this bill provides an important deterrent to the selling of illicit and untested cannabis by putting operators on notice that prosecutors have an efficient means to test cannabis and cannabis products for chemical profile and contaminants.

Prepared by: Elissa Silva / B., P. & E.D. /

6/10/20 13:25:11

**** END ****

SENATE COMMITTEE ON

BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT

Senator Steven Glazer, Chair

2019 - 2020 Regular

Bill No: SB 1244 Hearing Date: May 18, 2020

Subject: Cannabis testing laboratories

SUMMARY:

Authorizes a testing laboratory to receive and test samples of cannabis or cannabis products from state or local law enforcement, or a prosecuting or regulatory agency.

Existing law:

1. 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 and adult-use cannabis. (Business and Professions Code (BPC) § 26000)
   
2. Establishes the Bureau of Cannabis Control (Bureau) under the Department of Consumer Affairs (DCA) to regulate the medical and recreational cannabis industry. (BPC § 26010)
3. Establishes various licenses for the purposes of regulating the recreational and medical cannabis industry, including a Type 8 license for a medical and recreational cannabis testing laboratory. (BPC § 26050)
4. Requires all commercial cannabis activity to be conducted between licensees, with specified exemptions. (BPC § 26053)
5. Prohibits any cannabis or cannabis product from being sold unless a representative sample of the cannabis or cannabis product has been tested by a licensed testing laboratory, unless otherwise provided by law. (BPC § 26100)
6. Permits a licensee to perform testing on the licensee’s premises for the purposes of quality assurance of cannabis or a cannabis product in conjunction with reasonable business operations, and permits a licensee to perform testing on cannabis or cannabis products obtained from another licensee. However, onsite testing by the licensee shall not be certified by the Bureau and does not exempt the licensee from the requirements of quality assurance testing at a testing laboratory. (BPC § 26100 (l))
7. Specifies the procedures by which a testing laboratory acquires or receives cannabis or cannabis products. (BPC § 26104(c))
8. Permits a testing laboratory to receive and test samples of cannabis or cannabis products from a qualified patient or primary caregiver if presented with the qualified patient’s valid physician’s recommendation for medicinal cannabis; prohibits a testing laboratory from certifying samples from a qualified patient or primary caregiver for resale or transfer to another party or license; and requires the name of the qualified patient or primary caregiver and the amount of cannabis or cannabis product received to be recorded for all tests done by a testing laboratory.
   (BPC § 26104(d))
9. Permits a testing laboratory to receive and test samples of cannabis or cannabis products from a person over 21 years of age when the cannabis has been grown by that person and will be used solely for his or her authorized personal use; prohibits a testing laboratory from certifying samples for resale or transfer to another person or licensee; and requires the name of the person and the amount of cannabis or cannabis product received to be recorded for all tests done by a testing laboratory. (BPC § 26104(e))
10. Permits a person 21 years of age or older to possess, process, transport, purchase, obtain, or give away to a person 21 years of age or older not more than 28.5 grams of cannabis, not in the form of concentrate. (Health and Safety Code (HSC) § 11362.1(a))
11. Permits a person 21 years of age or older to possess, plant, cultivate, harvest, dry, or process not more than six living cannabis plants and possess the cannabis produced by the plants. (HSC 11362.1(a)(3))

This bill authorizes a testing laboratory to receive samples of cannabis or cannabis products from state or local law enforcement, or a prosecuting or regulatory agency in order to test the cannabis or cannabis products.

FISCAL EFFECT:

Unknown. This bill is not keyed fiscal by Legislative Counsel.

COMMENTS:

1. Purpose. The City of Los Angeles, City Attorney’s Office is the sponsor of this bill. According to the Author, existing law hampers the ability of state and local law enforcement, prosecutors and regulatory agencies to ensure safety of California’s cannabis market because it prohibits these entities from sending samples to be tested by a licensed facility. According to the Author, this runs counter to the presumption that, in order to protect public health and wellbeing, state or local agencies should be able to test whether a particular cannabis item or product is safe to use and compliant with existing standards. This bill would allow licensed testing laboratories to receive and test samples of cannabis or cannabis products for state or local law enforcement, prosecuting, or regulatory agencies; the results of these tests could be used in enforcement actions.
2. Background.

Cannabis in California. In 1996, California voters approved Proposition 215, the Compassionate Use Act, which exempted patients and their primary caregivers from criminal liability under state law for the possession and cultivation of cannabis. In 2015, Governor Brown signed into law three bills that created a comprehensive state licensing and regulatory framework governing the commercial cultivation, manufacture, retail sale, transport, distribution, delivery, and testing of medical cannabis in California. AB 243 (Wood, Chapter 688, Statutes of 2015), AB 266 (Bonta, Chapter 689, Statutes of 2015), and SB 643 (McGuire, Chapter 719, Statutes of 2015) collectively established the Medical Marijuana Regulation and Safety Act (later renamed to the Medical Cannabis Regulation and Safety Act (MCRSA)). In 2016, California voters passed Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), legalizing the distribution, sale, and possession of cannabis for adult use. In June 2017, MCRSA and AUMA were combined to form one system for the regulation of Cannabis, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA).

Cannabis Testing Requirements. MAUCRSA requires specific testing procedures for cannabis. A Testing Laboratory (Type 8) license from the Bureau allows a laboratory, facility, or entity in the state California to offer or perform testing of cannabis goods. Before a distributor can transport cannabis or cannabis products to a retailer, a licensed testing laboratory must test samples for potency, foreign materials, heavy metals, microbial impurities, mycotoxins, residual pesticides, and residual solvents and processing chemicals. Testing laboratories also check cannabinoid potency levels such as THC and CBD. Current law authorizes licensed testing laboratories to test cannabis from other licensees, medicinal cannabis consumers, and individuals growing for personal use. This bill would also allow licensing testing laboratories to test cannabis from state or local law enforcement, or a prosecuting or regulatory agency.

Use of Laboratories for Law Enforcement Purposes. Traditionally, law enforcement and prosecution agencies use professional crime labs for evidence testing purposes. According to information provided by the sponsor, the use of existing crime labs is not currently feasible. The sponsor indicates that the Los Angeles Police Department (LAPD) Forensic Science Division (FSD) is not currently capable of conducting quantitative analysis of the amount of THC present in a substance necessary to prove through direct evidence that a substance is cannabis. The sponsor notes that LAPD will not be able to conduct this testing until at least fall 2020. The sponsor further argues that LAPD FSD is not currently capable of conducting the contaminant testing required to prove the presence of certain contaminants in cannabis (such as pesticides or vitamin E acetate).

Ensuring Proper Handling of Criminal Evidence. Cannabis testing laboratories are not currently trained in the handling criminal evidence. Further, the bill does not require laboratories to receive specific training, nor does it require the Bureau to enforce new standards relative to testing for criminal enforcement purposes. According to the sponsor, the Los Angeles City Attorney’s Office will work with LAPD FSD to train cannabis testing laboratories regarding chain of custody to ensure laboratories handle evidence in an appropriate manner.

Laboratory Choices. As currently drafted this bill allows, but does not require, cannabis testing laboratories to test products from law enforcement or prosecution agencies. According to the sponsor, this is consistent with the intent of the bill-to allow laboratories to choose whether or not to take law enforcement as a client.

1. Arguments in Support. The City of Los Angeles, City Attorney’s Office is the sponsor of this bill. According to the Sponsor, this bill would provide an important deterrent to the selling of illicit and untested cannabis by putting operators on notice that prosecutors have an efficient means to test cannabis and cannabis products for chemical profile and contaminants. The Sponsor argues this bill would provide a tool to take action against those who sell illicit and untested cannabis and cannabis products that contain, for example, pesticides and heavy metals.

The California Cannabis Industry Association (CCIA) notes illicit market cannabis is one of the most significant problems facing California’s legal market, with illicit cannabis operators earning an estimated $8.7 billion in 2019 as compared to $3.1 billion earned in the legal market. CCIA argues it is critical that law enforcement be given the necessary tools to combat illicit cannabis activity, which not only threatens public health, but the survival of the legal cannabis industry. According to CCIA, this bill clarifies that cannabis laboratories may accept and test products submitted by law enforcement; a small change in state law that will help bolster state and local law enforcement efforts to address unlicensed cannabis activities.

1. Related Legislation This Year. AB 1470 (Quirk) would specify that for the purpose of cannabis and cannabis product testing, “final form” means the unpackaged product as it will be consumed, and would specify that the product does not have to be delivered to the licensed testing laboratory in the final retail packaging, or vaporizer device, to be considered it its final form. (Status: This bill is pending referral in the Senate Rules Committee.)

AB 1458 (Quirk) would require, for edible cannabis products, the certificate of analysis issued by the laboratory to report that the milligrams of THC per serving does not exceed 10 milligrams per serving, with variances as specified. (Status: This bill is pending referral in the Senate Rules Committee.)

AB 2749 (Stone) would require the Bureau, by January 1, 2022, to establish testing standards for cannabis compounds and contaminants. The Bureau would be required to post a specified notification on its website regarding laboratory authorizations to issue certificates of analysis. (Status: This bill is pending referral in the Senate Rules Committee.)

1. Prior Legislation. AB 404 (Stone), Chapter 799, Statutes of 2019, authorized a testing laboratory to amend a certificate of analysis to correct minor errors, and to retest the sample, if the test result falls outside the specifications authorized by law or regulation, when the testing laboratory notifies the bureau, in writing, that the test was compromised due to equipment malfunction, staff error, or other circumstances allowed by the bureau and the bureau authorizes the retest.

AB 1461 (Quirk), of 2019, would have allowed samples of cannabis products to be taken for testing by a laboratory employee at the manufacturer’s premises, not only the distributor’s premises. (Status: This bill was held in the Assembly Business and Professions Committee.)

AB 2721 (Quirk), Chapter 546, Statutes of 2018, allowed testing laboratories to receive and test cannabis or cannabis products from a person over 21 years old if that cannabis was grown by that person solely for their own use.

SB 627 (Galgiani), of 2019, would have authorized a qualified veterinarian, as defined, to discuss and recommend the use of medicinal cannabis on an animal patient, as specified, and authorized testing laboratories to receive and test samples of cannabis products for medical use on an animal by a person at least 21 years old if recommended by a veterinarian. (Status: This bill was held under submission in the Assembly Appropriations Committee.)

AB 133 (Assembly Budget Committee), Chapter 253, Statutes of 2017, struck the prohibition on testing laboratories from delivering, transferring, or transporting cannabis or cannabis products under specified conditions, among other provisions.

SB 94 (Senate Budget & Fiscal Review Committee), Chapter 27, Statutes of 2017, shifted the responsibility for developing procedures and requirements for testing of cannabis and cannabis products to the Bureau of Cannabis Control, as well as established requirements for the chain of custody for test samples, and prohibited testing laboratories from acquiring or receiving cannabis or cannabis products, except from specified sources, among other provisions.

SUPPORT AND OPPOSITION:

Support:

City of Los Angeles, City Attorney Mike Feuer (Sponsor)

California Cannabis Industry Association

California District Attorneys Association

United Food and Commercial Workers Union

Opposition:

None on file

-- END --