AB 128: Cannabis: background checks and cannabis event organizer license type.
- Session Year: 2023-2024
- House: Assembly
- Latest Version Date: 2023-07-10
Current Status:
Passed
(2023-07-10: Chaptered by Secretary of State - Chapter 46, Statutes of 2023.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure, 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 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 establishes the Department of Cannabis Control, under the supervision and control of a director, to administer and enforce its provisions. MAUCRSA authorizes the director to employ and appoint all employees necessary to properly administer the work of the department, in accordance with civil service laws and regulations. MAUCRSA requires the director to designate the persons employed by the department for purposes of the administration and enforcement of MAUCRSA, and requires the director to ensure that a sufficient number of employees are qualified peace officers for purposes of enforcing MAUCRSA.
This bill would require the Department of Cannabis Control to submit to the Department of Justice fingerprint images and other related information for criminal history information checks of certain employees, prospective employees, contractors, and subcontractors, as specified. The bill would require the Department of Cannabis Control to request from the Department of Justice subsequent notification service for those individuals, as specified.
MAUCRSA authorizes the department to issue state licenses only to qualified applicants. MAUCRSA requires an applicant for a state license to require each owner to submit to the Department of Justice fingerprint images and related information for a criminal history information check, as specified.
This bill would exempt from that requirement an owner who has previously submitted fingerprint images and related information in connection with a valid state license issued by a licensing authority, as specified. The bill would prohibit the Department of Cannabis Control from considering criminal history information from a previous check of that owner when considering whether to issue a subsequent state license.
MAUCRSA authorizes the issuance of a state temporary event license to a licensee authorizing onsite cannabis sales to, and consumption by, persons 21 years of age or older at a county fair event, district agricultural association event, or at another venue expressly approved by a local jurisdiction, as specified.
This bill would add Type 13Cannabis event organizer to the codified list of license classifications.
This bill would update obsolete MAUCRSA provisions.
Existing law establishes the Cannabis Control Fund to support, among other things, the activities of the department under MAUCRSA, and requires licensing fees and certain other moneys associated with the recovery of investigation and enforcement costs to be deposited in the fund.
This bill would appropriate $5,000 from the Cannabis Control Fund to the department for purposes of implementing the provisions of the bill.
AUMA authorizes the Legislature to amend its provisions with a 2/3 vote of both houses to further its purposes and intent, except as specified.
This bill would state that the bill furthers the purposes and intent of AUMA.
This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure, 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 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 establishes the Department of Cannabis Control, under the supervision and control of a director, to administer and enforce its provisions. MAUCRSA authorizes the director to employ and appoint all employees necessary to properly administer the work of the department, in accordance with civil service laws and regulations. MAUCRSA requires the director to designate the persons employed by the department for purposes of the administration and enforcement of MAUCRSA, and requires the director to ensure that a sufficient number of employees are qualified peace officers for purposes of enforcing MAUCRSA.
This bill would require the Department of Cannabis Control to submit to the Department of Justice fingerprint images and other related information for criminal history information checks of certain employees, prospective employees, contractors, and subcontractors, as specified. The bill would require the Department of Cannabis Control to request from the Department of Justice subsequent notification service for those individuals, as specified.
MAUCRSA authorizes the department to issue state licenses only to qualified applicants. MAUCRSA requires an applicant for a state license to require each owner to submit to the Department of Justice fingerprint images and related information for a criminal history information check, as specified.
This bill would exempt from that requirement an owner who has previously submitted fingerprint images and related information in connection with a valid state license issued by a licensing authority, as specified. The bill would prohibit the Department of Cannabis Control from considering criminal history information from a previous check of that owner when considering whether to issue a subsequent state license.
MAUCRSA authorizes the issuance of a state temporary event license to a licensee authorizing onsite cannabis sales to, and consumption by, persons 21 years of age or older at a county fair event, district agricultural association event, or at another venue expressly approved by a local jurisdiction, as specified.
This bill would add Type 13Cannabis event organizer to the codified list of license classifications.
This bill would update obsolete MAUCRSA provisions.
Existing law establishes the Cannabis Control Fund to support, among other things, the activities of the department under MAUCRSA, and requires licensing fees and certain other moneys associated with the recovery of investigation and enforcement costs to be deposited in the fund.
This bill would appropriate $5,000 from the Cannabis Control Fund to the department for purposes of implementing the provisions of the bill.
AUMA authorizes the Legislature to amend its provisions with a 2/3 vote of both houses to further its purposes and intent, except as specified.
This bill would state that the bill furthers the purposes and intent of AUMA.
This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure, 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 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 establishes the Department of Cannabis Control, under the supervision and control of a director, to administer and enforce its provisions. MAUCRSA authorizes the director to employ and appoint all employees necessary to properly administer the work of the department, in accordance with civil service laws and regulations. MAUCRSA requires the director to designate the persons employed by the department for purposes of the administration and enforcement of MAUCRSA, and requires the director to ensure that a sufficient number of employees are qualified peace officers for purposes of enforcing MAUCRSA.
This bill would require the Department of Cannabis Control to submit to the Department of Justice fingerprint images and other related information for criminal history information checks of certain employees, prospective employees, contractors, and subcontractors, as specified. The bill would require the Department of Cannabis Control to request from the Department of Justice subsequent notification service for those individuals, as specified.
MAUCRSA authorizes the department to issue state licenses only to qualified applicants. MAUCRSA requires an applicant for a state license to require each owner to submit to the Department of Justice fingerprint images and related information for a criminal history information check, as specified.
This bill would exempt from that requirement an owner who has previously submitted fingerprint images and related information in connection with a valid state license issued by a licensing authority, as specified. The bill would prohibit the Department of Cannabis Control from considering criminal history information from a previous check of that owner when considering whether to issue a subsequent state license.
MAUCRSA authorizes the issuance of a state temporary event license to a licensee authorizing onsite cannabis sales to, and consumption by, persons 21 years of age or older at a county fair event, district agricultural association event, or at another venue expressly approved by a local jurisdiction, as specified.
This bill would add Type 13Cannabis event organizer to the codified list of license classifications.
This bill would update obsolete MAUCRSA provisions.
Existing law establishes the Cannabis Control Fund to support, among other things, the activities of the department under MAUCRSA, and requires licensing fees and certain other moneys associated with the recovery of investigation and enforcement costs to be deposited in the fund.
This bill would appropriate $5,000 from the Cannabis Control Fund to the department for purposes of implementing the provisions of the bill.
AUMA authorizes the Legislature to amend its provisions with a 2/3 vote of both houses to further its purposes and intent, except as specified.
This bill would state that the bill furthers the purposes and intent of AUMA.
This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
This bill would express the intent of the Legislature to enact statutory changes, relating to the Budget Act of 2023.This bill would express the intent of the Legislature to enact statutory changes changes, relating to the Budget Act of 2023.
This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2023.
(a)Pursuant to subdivision (u) of Section 11105 of the Penal Code, and except as provided in subdivision (d), the department shall submit to the Department of Justice fingerprint images and related information required by the Department of Justice for an employee, prospective employee, contractor, or subcontractor whose duties include or would include access to criminal offender record information contained in the information systems or records of the department or access to cannabis, cannabis products, or other controlled substances. The Department of Justice shall provide a state- or federal-level response pursuant to subdivision (p) of Section 11105 of the Penal Code, except for peace officers.
(b)Pursuant to subdivision (u) of Section 11105 of the Penal Code, the department shall submit to the Department of Justice fingerprint images and related information required by the Department of Justice for all peace officer employees and prospective peace officer employees of the department. The Department of Justice shall provide a state- or federal-level response pursuant to subdivision (k) of Section 11105 of the Penal Code for peace officers.
(c)The department shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for persons listed in subdivisions (a) and (b).
(d)Subdivision (a) does not apply to employees hired on or before June 30, 2023, or to any contract entered into on or before June 30, 2023.
SEC. 2.Section 26050 of the Business and Professions Code is amended to read:26050.(a)The license classification pursuant to this division shall, at a minimum, be as follows:
(1)Type 1Cultivation; Specialty outdoor; Small.
(2)Type 1ACultivation; Specialty indoor; Small.
(3)Type 1BCultivation; Specialty mixed-light; Small.
(4)Type 1CCultivation; Specialty cottage; Small.
(5)Type 2Cultivation; Outdoor; Small.
(6)Type 2ACultivation; Indoor; Small.
(7)Type 2BCultivation; Mixed-light; Small.
(8)Type 3Cultivation; Outdoor; Medium.
(9)Type 3ACultivation; Indoor; Medium.
(10)Type 3BCultivation; Mixed-light; Medium.
(11)Type 4Cultivation; Nursery.
(12)Type 5Cultivation; Outdoor; Large.
(13)Type 5ACultivation; Indoor; Large.
(14)Type 5BCultivation; Mixed-light; Large.
(15)Type 6Manufacturer 1.
(16)Type 7Manufacturer 2.
(17)Type 8Testing laboratory.
(18)Type 10Retailer.
(19)Type 11Distributor.
(20)Type 12Microbusiness.
(21)Type 13Cannabis event organizer.
(b)With the exception of testing laboratory licenses, which may be used to test cannabis and cannabis products regardless of whether they are intended for use by individuals who possesses a physicians recommendation, all licenses issued under this division shall bear a clear designation indicating whether the license is for commercial adult-use cannabis activity as distinct from commercial medicinal cannabis activity by prominently affixing an A or M, respectively. Examples of such a designation include, but are not limited to, A-Type 1 or M-Type 1. Except as specifically specified in this division, the requirements for A-licenses and M-licenses shall be the same. For testing laboratories, the department shall create a license that indicates a testing laboratory may test both adult-use and medicinal cannabis.
(c)A license issued pursuant to this division shall be valid for 12 months from the date of issuance. The license may be renewed annually.
(d)The department shall establish procedures for the issuance and renewal of licenses.
SEC. 3.Section 26051.5 of the Business and Professions Code is amended to read:26051.5.(a)An applicant for a state license issued pursuant to this division to conduct commercial cannabis activity, as defined in Section 26001, shall do all of the following:
(1)Except as provided in subparagraph (G), require that each owner 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 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 their own recognizance pending trial or appeal.
(A)Notwithstanding any other law, the department may obtain 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, as defined in Section 26001, 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.
(F)Notwithstanding any other law, a licensing authority may request and receive from a local or state agency certified records of all arrests and convictions, certified records regarding probation, and any and all other related documentation needed to complete an applicant or licensee investigation. A local or state agency may provide those records to a licensing authority upon request.
(G)If an owner has previously submitted fingerprint images and related information required by the Department of Justice pursuant to this paragraph in connection with a valid state license issued by a licensing authority, both of the following apply:
(i)The owner shall not be required to submit additional fingerprint images and related information pursuant to this paragraph in connection with a subsequent application for a state license.
(ii)The department shall not consider the owners criminal history information obtained from the fingerprint images and related information that were previously submitted pursuant to this paragraph when considering whether to issue a subsequent state license.
(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)(i)For an applicant with 20 or more employees, or an applicant with 10 or more employees that submits an application on or after July 1, 2024, provide a notarized statement that the applicant will enter into, or demonstrate that it has already entered into, and will abide by the terms of a labor peace agreement. On and after July 1, 2024, the department shall not renew a license for a licensee with 10 or more employees unless the licensee provides a statement that the licensee has already entered into and will abide by the terms of a labor peace agreement.
(ii)For an applicant with 10 or more employees but less than 20 employees that has not yet entered into a labor peace agreement, provide a notarized statement as a part of its application indicating that the applicant will enter into and abide by the terms of a labor peace agreement within 60 days of employing its 20th employee, or on or before July 1, 2024, whichever is earlier.
(iii)For an applicant with less than 10 employees that has not yet entered into a labor peace agreement, provide a notarized statement as a part of its application indicating that the applicant will enter into and abide by the terms of a labor peace agreement within 60 days of employing its 10th employee or on or before July 1, 2024, whichever is later.
(iv)Nothing in this paragraph shall be construed to limit the authority of the department to revoke or suspend a license for a violation of this paragraph.
(B)Compliance with the terms of an applicable labor peace agreement is a condition of licensure. A licensee seeking renewal of any license shall attest to the department that it remains in compliance with the terms of any applicable labor peace agreement.
(C)Any labor organization, or any current or former employee of the relevant licensee, may report to the department that a licensee has failed to provide a truthful attestation of compliance with subparagraph (B).
(i)The reporting party shall provide documentation, in a form and manner required by the department, to substantiate their allegation before the department considers it. The department shall collaborate with such agencies as it deems relevant to evaluate the report.
(ii)If the department substantiates the validity of a report made pursuant to this subparagraph, the department may suspend, revoke, place on probation with terms and conditions, or otherwise discipline the license and fine the licensee.
(D)(i)Any labor organization, or any current or former employee of the relevant licensee, may file a complaint with the Agricultural Labor Relations Board that an organization with which a licensee has entered into a labor peace agreement is not a bona fide labor organization.
(ii)The Agricultural Labor Relations Board shall consider all relevant evidence provided or obtained in rendering a decision on whether the entity is a bona fide labor organization and issue a report with its findings no later than ninety (90) days from receiving the complaint.
(iii)If the Agricultural Labor Relations Board determines that the entity is not a bona fide labor organization, the labor peace agreement shall be null and void. The department shall promptly notify all licensees that have signed labor peace agreements with the entity that the entity was found not to be a bona fide labor organization and offer those licensees a reasonable time period, not to exceed 180 days, to enter into a labor peace agreement with a bona fide labor organization. Failure to enter into a labor peace agreement with a bona fide labor organization after that reasonable time period shall be a violation of this section.
(E)For the purposes of this paragraph, all of the following shall apply:
(i)Employee does not include a supervisor.
(ii)Labor organization means any organization of any kind, or any agency or employee representation committee or plan, in which employees participate and which exists, in whole or in part, for the purpose of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work for employees.
(iii)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 (commencing with Section 6001) 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 department.
(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 department.
(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 department:
(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 shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.
(c)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.
(d)Provide a complete list of every person with a financial interest in the person applying for the license as required by the department. 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. 4.The sum of five thousand dollars ($5,000) is hereby appropriated from the Cannabis Control Fund to the Department of Cannabis Control for purposes of implementing this act.
SEC. 5.The Legislature finds and declares that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.
SEC. 6.This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
(a)Pursuant to subdivision (u) of Section 11105 of the Penal Code, and except as provided in subdivision (d), the department shall submit to the Department of Justice fingerprint images and related information required by the Department of Justice for an employee, prospective employee, contractor, or subcontractor whose duties include or would include access to criminal offender record information contained in the information systems or records of the department or access to cannabis, cannabis products, or other controlled substances. The Department of Justice shall provide a state- or federal-level response pursuant to subdivision (p) of Section 11105 of the Penal Code, except for peace officers.
(b)Pursuant to subdivision (u) of Section 11105 of the Penal Code, the department shall submit to the Department of Justice fingerprint images and related information required by the Department of Justice for all peace officer employees and prospective peace officer employees of the department. The Department of Justice shall provide a state- or federal-level response pursuant to subdivision (k) of Section 11105 of the Penal Code for peace officers.
(c)The department shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for persons listed in subdivisions (a) and (b).
(d)Subdivision (a) does not apply to employees hired on or before June 30, 2023, or to any contract entered into on or before June 30, 2023.
SEC. 2.Section 26050 of the Business and Professions Code is amended to read:26050.(a)The license classification pursuant to this division shall, at a minimum, be as follows:
(1)Type 1Cultivation; Specialty outdoor; Small.
(2)Type 1ACultivation; Specialty indoor; Small.
(3)Type 1BCultivation; Specialty mixed-light; Small.
(4)Type 1CCultivation; Specialty cottage; Small.
(5)Type 2Cultivation; Outdoor; Small.
(6)Type 2ACultivation; Indoor; Small.
(7)Type 2BCultivation; Mixed-light; Small.
(8)Type 3Cultivation; Outdoor; Medium.
(9)Type 3ACultivation; Indoor; Medium.
(10)Type 3BCultivation; Mixed-light; Medium.
(11)Type 4Cultivation; Nursery.
(12)Type 5Cultivation; Outdoor; Large.
(13)Type 5ACultivation; Indoor; Large.
(14)Type 5BCultivation; Mixed-light; Large.
(15)Type 6Manufacturer 1.
(16)Type 7Manufacturer 2.
(17)Type 8Testing laboratory.
(18)Type 10Retailer.
(19)Type 11Distributor.
(20)Type 12Microbusiness.
(21)Type 13Cannabis event organizer.
(b)With the exception of testing laboratory licenses, which may be used to test cannabis and cannabis products regardless of whether they are intended for use by individuals who possesses a physicians recommendation, all licenses issued under this division shall bear a clear designation indicating whether the license is for commercial adult-use cannabis activity as distinct from commercial medicinal cannabis activity by prominently affixing an A or M, respectively. Examples of such a designation include, but are not limited to, A-Type 1 or M-Type 1. Except as specifically specified in this division, the requirements for A-licenses and M-licenses shall be the same. For testing laboratories, the department shall create a license that indicates a testing laboratory may test both adult-use and medicinal cannabis.
(c)A license issued pursuant to this division shall be valid for 12 months from the date of issuance. The license may be renewed annually.
(d)The department shall establish procedures for the issuance and renewal of licenses.
SEC. 3.Section 26051.5 of the Business and Professions Code is amended to read:26051.5.(a)An applicant for a state license issued pursuant to this division to conduct commercial cannabis activity, as defined in Section 26001, shall do all of the following:
(1)Except as provided in subparagraph (G), require that each owner 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 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 their own recognizance pending trial or appeal.
(A)Notwithstanding any other law, the department may obtain 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, as defined in Section 26001, 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.
(F)Notwithstanding any other law, a licensing authority may request and receive from a local or state agency certified records of all arrests and convictions, certified records regarding probation, and any and all other related documentation needed to complete an applicant or licensee investigation. A local or state agency may provide those records to a licensing authority upon request.
(G)If an owner has previously submitted fingerprint images and related information required by the Department of Justice pursuant to this paragraph in connection with a valid state license issued by a licensing authority, both of the following apply:
(i)The owner shall not be required to submit additional fingerprint images and related information pursuant to this paragraph in connection with a subsequent application for a state license.
(ii)The department shall not consider the owners criminal history information obtained from the fingerprint images and related information that were previously submitted pursuant to this paragraph when considering whether to issue a subsequent state license.
(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)(i)For an applicant with 20 or more employees, or an applicant with 10 or more employees that submits an application on or after July 1, 2024, provide a notarized statement that the applicant will enter into, or demonstrate that it has already entered into, and will abide by the terms of a labor peace agreement. On and after July 1, 2024, the department shall not renew a license for a licensee with 10 or more employees unless the licensee provides a statement that the licensee has already entered into and will abide by the terms of a labor peace agreement.
(ii)For an applicant with 10 or more employees but less than 20 employees that has not yet entered into a labor peace agreement, provide a notarized statement as a part of its application indicating that the applicant will enter into and abide by the terms of a labor peace agreement within 60 days of employing its 20th employee, or on or before July 1, 2024, whichever is earlier.
(iii)For an applicant with less than 10 employees that has not yet entered into a labor peace agreement, provide a notarized statement as a part of its application indicating that the applicant will enter into and abide by the terms of a labor peace agreement within 60 days of employing its 10th employee or on or before July 1, 2024, whichever is later.
(iv)Nothing in this paragraph shall be construed to limit the authority of the department to revoke or suspend a license for a violation of this paragraph.
(B)Compliance with the terms of an applicable labor peace agreement is a condition of licensure. A licensee seeking renewal of any license shall attest to the department that it remains in compliance with the terms of any applicable labor peace agreement.
(C)Any labor organization, or any current or former employee of the relevant licensee, may report to the department that a licensee has failed to provide a truthful attestation of compliance with subparagraph (B).
(i)The reporting party shall provide documentation, in a form and manner required by the department, to substantiate their allegation before the department considers it. The department shall collaborate with such agencies as it deems relevant to evaluate the report.
(ii)If the department substantiates the validity of a report made pursuant to this subparagraph, the department may suspend, revoke, place on probation with terms and conditions, or otherwise discipline the license and fine the licensee.
(D)(i)Any labor organization, or any current or former employee of the relevant licensee, may file a complaint with the Agricultural Labor Relations Board that an organization with which a licensee has entered into a labor peace agreement is not a bona fide labor organization.
(ii)The Agricultural Labor Relations Board shall consider all relevant evidence provided or obtained in rendering a decision on whether the entity is a bona fide labor organization and issue a report with its findings no later than ninety (90) days from receiving the complaint.
(iii)If the Agricultural Labor Relations Board determines that the entity is not a bona fide labor organization, the labor peace agreement shall be null and void. The department shall promptly notify all licensees that have signed labor peace agreements with the entity that the entity was found not to be a bona fide labor organization and offer those licensees a reasonable time period, not to exceed 180 days, to enter into a labor peace agreement with a bona fide labor organization. Failure to enter into a labor peace agreement with a bona fide labor organization after that reasonable time period shall be a violation of this section.
(E)For the purposes of this paragraph, all of the following shall apply:
(i)Employee does not include a supervisor.
(ii)Labor organization means any organization of any kind, or any agency or employee representation committee or plan, in which employees participate and which exists, in whole or in part, for the purpose of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work for employees.
(iii)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 (commencing with Section 6001) 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 department.
(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 department.
(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 department:
(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 shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.
(c)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.
(d)Provide a complete list of every person with a financial interest in the person applying for the license as required by the department. 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. 4.The sum of five thousand dollars ($5,000) is hereby appropriated from the Cannabis Control Fund to the Department of Cannabis Control for purposes of implementing this act.
SEC. 5.The Legislature finds and declares that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.
SEC. 6.This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
(a)Pursuant to subdivision (u) of Section 11105 of the Penal Code, and except as provided in subdivision (d), the department shall submit to the Department of Justice fingerprint images and related information required by the Department of Justice for an employee, prospective employee, contractor, or subcontractor whose duties include or would include access to criminal offender record information contained in the information systems or records of the department or access to cannabis, cannabis products, or other controlled substances. The Department of Justice shall provide a state- or federal-level response pursuant to subdivision (p) of Section 11105 of the Penal Code, except for peace officers.
(b)Pursuant to subdivision (u) of Section 11105 of the Penal Code, the department shall submit to the Department of Justice fingerprint images and related information required by the Department of Justice for all peace officer employees and prospective peace officer employees of the department. The Department of Justice shall provide a state- or federal-level response pursuant to subdivision (k) of Section 11105 of the Penal Code for peace officers.
(c)The department shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for persons listed in subdivisions (a) and (b).
(d)Subdivision (a) does not apply to employees hired on or before June 30, 2023, or to any contract entered into on or before June 30, 2023.
SEC. 2.Section 26050 of the Business and Professions Code is amended to read:26050.(a)The license classification pursuant to this division shall, at a minimum, be as follows:
(1)Type 1Cultivation; Specialty outdoor; Small.
(2)Type 1ACultivation; Specialty indoor; Small.
(3)Type 1BCultivation; Specialty mixed-light; Small.
(4)Type 1CCultivation; Specialty cottage; Small.
(5)Type 2Cultivation; Outdoor; Small.
(6)Type 2ACultivation; Indoor; Small.
(7)Type 2BCultivation; Mixed-light; Small.
(8)Type 3Cultivation; Outdoor; Medium.
(9)Type 3ACultivation; Indoor; Medium.
(10)Type 3BCultivation; Mixed-light; Medium.
(11)Type 4Cultivation; Nursery.
(12)Type 5Cultivation; Outdoor; Large.
(13)Type 5ACultivation; Indoor; Large.
(14)Type 5BCultivation; Mixed-light; Large.
(15)Type 6Manufacturer 1.
(16)Type 7Manufacturer 2.
(17)Type 8Testing laboratory.
(18)Type 10Retailer.
(19)Type 11Distributor.
(20)Type 12Microbusiness.
(21)Type 13Cannabis event organizer.
(b)With the exception of testing laboratory licenses, which may be used to test cannabis and cannabis products regardless of whether they are intended for use by individuals who possesses a physicians recommendation, all licenses issued under this division shall bear a clear designation indicating whether the license is for commercial adult-use cannabis activity as distinct from commercial medicinal cannabis activity by prominently affixing an A or M, respectively. Examples of such a designation include, but are not limited to, A-Type 1 or M-Type 1. Except as specifically specified in this division, the requirements for A-licenses and M-licenses shall be the same. For testing laboratories, the department shall create a license that indicates a testing laboratory may test both adult-use and medicinal cannabis.
(c)A license issued pursuant to this division shall be valid for 12 months from the date of issuance. The license may be renewed annually.
(d)The department shall establish procedures for the issuance and renewal of licenses.
SEC. 3.Section 26051.5 of the Business and Professions Code is amended to read:26051.5.(a)An applicant for a state license issued pursuant to this division to conduct commercial cannabis activity, as defined in Section 26001, shall do all of the following:
(1)Require Except as provided in subparagraph (G), require that each owner 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 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 their own recognizance pending trial or appeal.
(A)Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, the State Department of Public Health, and the department, as defined in Section 26001, department may obtain 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, as defined in Section 26001, 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.
(F)Employees of a licensing authority, as defined in Section 26001, acting on behalf of the department may receive criminal history information pursuant to this section. This subparagraph shall become inoperative on July 1, 2023. (G)(F)Notwithstanding any other law, a licensing authority may request and receive from a local or state agency certified records of all arrests and convictions, certified records regarding probation, and any and all other related documentation needed to complete an applicant or licensee investigation. A local or state agency may provide those records to a licensing authority upon request.
(G)If an owner has previously submitted fingerprint images and related information required by the Department of Justice pursuant to this paragraph in connection with a valid state license issued by a licensing authority, both of the following apply:
(i)The owner shall not be required to submit additional fingerprint images and related information pursuant to this paragraph in connection with a subsequent application for a state license.
(ii)The department shall not consider the owners criminal history information obtained from the fingerprint images and related information that were previously submitted pursuant to this paragraph when considering whether to issue a subsequent state license.
(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)(i)For an applicant with 20 or more employees, or an applicant with 10 or more employees that submits an application on or after July 1, 2024, provide a notarized statement that the applicant will enter into, or demonstrate that it has already entered into, and will abide by the terms of a labor peace agreement. On and after July 1, 2024, the department shall not renew a license for a licensee with 10 or more employees unless the licensee provides a statement that the licensee has already entered into and will abide by the terms of a labor peace agreement.
(ii)For an applicant with 10 or more employees but less than 20 employees that has not yet entered into a labor peace agreement, provide a notarized statement as a part of its application indicating that the applicant will enter into and abide by the terms of a labor peace agreement within 60 days of employing its 20th employee, or on or before July 1, 2024, whichever is earlier.
(iii)For an applicant with less than 10 employees that has not yet entered into a labor peace agreement, provide a notarized statement as a part of its application indicating that the applicant will enter into and abide by the terms of a labor peace agreement within 60 days of employing its 10th employee or on or before July 1, 2024, whichever is later.
(iv)Nothing in this paragraph shall be construed to limit the authority of the department to revoke or suspend a license for a violation of this paragraph.
(B)Compliance with the terms of an applicable labor peace agreement is a condition of licensure. A licensee seeking renewal of any license shall attest to the department that it remains in compliance with the terms of any applicable labor peace agreement.
(C)Any labor organization, or any current or former employee of the relevant licensee, may report to the department that a licensee has failed to provide a truthful attestation of compliance with subparagraph (B).
(i)The reporting party shall provide documentation, in a form and manner required by the department, to substantiate their allegation before the department considers it. The department shall collaborate with such agencies as it deems relevant to evaluate the report.
(ii)If the department substantiates the validity of a report made pursuant to this subparagraph, the department may suspend, revoke, place on probation with terms and conditions, or otherwise discipline the license and fine the licensee.
(D)(i)Any labor organization, or any current or former employee of the relevant licensee, may file a complaint with the Agricultural Labor Relations Board that an organization with which a licensee has entered into a labor peace agreement is not a bona fide labor organization.
(ii)The Agricultural Labor Relations Board shall consider all relevant evidence provided or obtained in rendering a decision on whether the entity is a bona fide labor organization and issue a report with its findings no later than ninety (90) days from receiving the complaint.
(iii)If the Agricultural Labor Relations Board determines that the entity is not a bona fide labor organization, the labor peace agreement shall be null and void. The department shall promptly notify all licensees that have signed labor peace agreements with the entity that the entity was found not to be a bona fide labor organization and offer those licensees a reasonable time period, not to exceed 180 days, to enter into a labor peace agreement with a bona fide labor organization. Failure to enter into a labor peace agreement with a bona fide labor organization after that reasonable time period shall be a violation of this section.
(E)For the purposes of this paragraph, all of the following shall apply:
(i)Employee does not include a supervisor.
(ii)Labor organization means any organization of any kind, or any agency or employee representation committee or plan, in which employees participate and which exists, in whole or in part, for the purpose of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work for employees.
(iii)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 (commencing with Section 6001) 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 department.
(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 department.
(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 department:
(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 shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.
(c)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.
(d)Provide a complete list of every person with a financial interest in the person applying for the license as required by the department. 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. 4.The sum of five thousand dollars ($5,000) is hereby appropriated from the Cannabis Control Fund to the Department of Cannabis Control for purposes of implementing this act.
SEC. 5.The Legislature finds and declares that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.
SEC. 6.This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
SECTION 1.It is the intent of the Legislature to enact statutory changes, relating to the Budget Act of 2023.It is the intent of the Legislature to enact statutory changes changes, relating to the Budget Act of 2023.
It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2023.
|
Date
|
Status
|
|---|---|
| Jul 10, 2023 | Chaptered by Secretary of State - Chapter 46, Statutes of 2023. |
| Jul 10, 2023 | Approved by the Governor. |
| Jun 27, 2023 | Enrolled and presented to the Governor at 4:30 p.m. |
| Jun 27, 2023 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 75. Noes 1. Page 2421.). |
| Jun 27, 2023 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after June 29 pursuant to Assembly Rule 77. |
| Jun 27, 2023 | Assembly Rule 77 suspended. (Page 2421.) |
| Jun 27, 2023 | Assembly Rule 63 suspended. (Page 2421.) |
| Jun 27, 2023 | Senate Rules Suspended (Ayes 32. Noes 8.) |
| Jun 27, 2023 | Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0. Page 1766.). |
| Jun 27, 2023 | Read second time. Ordered to third reading. |
| Jun 26, 2023 | From committee: Do pass. (Ayes 17. Noes 0.) (June 26). |
| Jun 24, 2023 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F.R. |
| Apr 12, 2023 | Referred to Com. on B. & F.R. |
| Mar 23, 2023 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Mar 23, 2023 | Read third time. Passed. Ordered to the Senate. (Ayes 60. Noes 14. Page 842.) |
| Mar 21, 2023 | Read second time. Ordered to third reading. |
| Mar 20, 2023 | Withdrawn from committee. |
| Mar 20, 2023 | Ordered to second reading. |
| Mar 20, 2023 | Assembly Rule 96 suspended. (Ayes 61. Noes 17. Page 732.) |
| Feb 2, 2023 | Re-referred to Com. on BUDGET. |
| Feb 1, 2023 | From committee chair, with author's amendments: Amend, and re-refer to Com. on BUDGET. Read second time and amended. |
| Jan 26, 2023 | Referred to Com. on BUDGET. |
| Jan 10, 2023 | From printer. May be heard in committee February 9. |
| Jan 9, 2023 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Jun 27, 2023 | AB 128 BUDGET Concurrence in Senate Amendments By TING | Assembly Floor |
Passed |
|
| Jun 27, 2023 | Assembly 2nd Reading AB128 BUDGET (Ting) By Skinner | Senate Floor |
Passed |
|
| Jun 26, 2023 | Do pass | Senate Standing Committee on Budget and Fiscal Review |
Passed |
|
| Mar 23, 2023 | AB 128 Budget Assembly Third Reading By TING | Assembly Floor |
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.
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 128 |
THIRD READING
Bill No: AB 128
Author: Committee on Budget
Amended: 6/24/23 in Senate
Vote: 27- Urgency
SENATE BUDGET & FISCAL REVIEW COMMITTEE: 17-0, 6/26/23
AYES: Skinner, Niello, Becker, Caballero, Dahle, Durazo, Eggman, Laird, McGuire, Menjivar, Min, Newman, Ochoa Bogh, Padilla, Roth, Seyarto, Smallwood-Cuevas
NO VOTE RECORDED: Grove
ASSEMBLY FLOOR: Not relevant
SUBJECT: Cannabis: background checks and cannabis event organizer license type
SOURCE: Author
DIGEST:
This bill is the cannabis budget trailer bill and contains the necessary changes to implement provisions included in the Budget Act of 2023, which includes technical changes related to criminal history information background checks.
ANALYSIS:
This bill:
- Requires the Department of Cannabis Control to submit to the Department of Justice fingerprint images and other related information for criminal history information checks of certain employees, prospective employees, contractors, and subcontractors, as specified. This bill requires the Department of Cannabis Control to request from the Department of Justice subsequent notification service for those individuals, as specified.
- Exempts from that requirement an owner who has previously submitted fingerprint images and related information in connection with a valid state license issued by a licensing authority, as specified.
- Prohibits the Department of Cannabis Control from considering criminal history information from a previous check of that owner when considering whether to issue a subsequent state license, per federal requirements.
Background
AB 141 (Committee on Budget, Chapter 70, Statutes of 2021) created the Department of Cannabis Control, consolidating legacy departments. As part of the consolidation, Business and Professions Code (BPC) Section 26051.5 was amended to require that an applicant submit fingerprint images for a state license to conduct commercial cannabis activity. This requirement was intended to require an owner to submit fingerprints only once, even if they held more than one cannabis license, streamline the licensing process for the Department and decrease costs to the applicant. The amended BPC Section 26051.5 was submitted to the Federal Bureau of Investigation (FBI) in early 2021, pre-consolidation, to obtain one request code.
The FBI denied the Department’s request for one request for all commercial cannabis licenses, and instead is requiring the Department to use the 20 license classifications within BPC Section 26050. The proposed statutory changes are intended to comply with these new federal requirements.
FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No
According to the Senate Budget and Fiscal Review Committee, this bill appropriates $5,000 Cannabis Control Fund for the 2023-24 fiscal year for the purpose of supporting the criminal history information background check process.
SUPPORT: (Verified 6/26/23)
None received
OPPOSITION: (Verified 6/26/23)
None received
Prepared by: Diego Lopez / B. & F.R. / (916) 651-4103
6/27/23 12:05:14
**** END ****
(Without Reference to File)
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 128
Author:(Committee on Budget)
As Amended Ver:June 24, 2023
2/3 vote. Budget Bill Appropriation Takes Effect Immediately
SUMMARY
This is the cannabis budget trailer bill and contains the necessary changes to implement provisions included in the Budget Act of 2023, which includes technical changes related to criminal history information background checks.
Senate Amendments
Delete the content of the bill and include the following provisions:
- Requires the Department of Cannabis Control (Department) to submit to the Department of Justice fingerprint images and other related information for criminal history information checks of certain employees, prospective employees, contractors, and subcontractors, and requires the Department of Cannabis Control to request from the Department of Justice subsequent notification service for those individuals, as specified.
- Exempt from that requirement an owner who has previously submitted fingerprint images and related information in connection with a valid state license issued by a licensing authority, as specified. Per updated federal guidance and requirements, prohibits the Department of Cannabis Control from considering criminal history information from a previous check of that owner when considering whether to issue a subsequent state license.
COMMENTS
AB 141 (Budget Committee), Chapter 70, Statutes of 2021, created the Department of Cannabis Control, consolidating legacy departments in one single entity. As part of the consolidation, Business and Professions Code (BPC) section 26051.5 was amended to require that an applicant submit fingerprint images for a state license to conduct commercial cannabis activity. This requirement was intended to require an owner to submit fingerprints only once, even if they held more than one cannabis license; and in an effort to streamline the licensing process for the Department and decrease costs to the applicant. The amended BPC section 26051.5 was submitted to the Federal Bureau of Investigation (FBI) in early 2021, pre-consolidation, to obtain one request code.
The FBI denied the Department’s request for one request for all commercial cannabis licenses, and instead is requiring the Department to use the 20 license classifications within BPC Section 26050 unless state law is aligned. The proposed statutory changes are intended to comply with these new federal guidelines and requirements.
According to the Author
Arguments in Support
None on file.
Arguments in Opposition
None on file.
FISCAL COMMENTS
Appropriates $5,000 Cannabis Control Fund for the 2023-24 fiscal year for the purpose of supporting the criminal history information background check process.
VOTES:
ASSEMBLY FLOOR: 60-14-6
YES: Addis, Aguiar-Curry, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner Horvath, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Connolly, Mike Fong, Friedman, Gabriel, Garcia, Gipson, Grayson, Haney, Hart, Holden, Irwin, Jackson, Jones‑Sawyer, Kalra, Lee, Low, Lowenthal, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Santiago, Schiavo, Soria, Ting, Valencia, Villapudua, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon
NO: Alanis, Megan Dahle, Davies, Dixon, Essayli, Flora, Vince Fong, Gallagher, Hoover, Lackey, Jim Patterson, Joe Patterson, Sanchez, Ta
ABS, ABST OR NV: Cervantes, Chen, Maienschein, Mathis, Waldron, Wallis
UPDATED
VERSION: June 24, 2023
CONSULTANT: Patrick Le / BUDGET / (916) 319-2099 FN: 0001127
SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
Senator Nancy Skinner, Chair
2023 - 2024 Regular
Bill No: AB 128 Hearing Date: June 26, 2023
Author: | |||
Version: | June 24, 2023 Amended | ||
Urgency: | Yes | Fiscal: | Yes |
Consultant: | Diego Lopez | ||
Subject: Cannabis: background checks and cannabis event organizer license type
Summary:
This is the cannabis budget trailer bill and contains the necessary changes to implement provisions included in the Budget Act of 2023, which includes technical changes related to criminal history information background checks.
Background:
AB 141 (Committee on Budget), Chapter 70, Statutes of 2021, created the Department of Cannabis Control, consolidating legacy departments. As part of the consolidation, Business and Professions Code (BPC) section 26051.5 was amended to require that an applicant submit fingerprint images for a state license to conduct commercial cannabis activity. This requirement was intended to require an owner to submit fingerprints only once, even if they held more than one cannabis license, streamline the licensing process for the Department and decrease costs to the applicant. The amended BPC section 26051.5 was submitted to the Federal Bureau of Investigation (FBI) in early 2021, pre-consolidation, to obtain one request code.
The FBI denied the Department’s request for one request for all commercial cannabis licenses, and instead is requiring the Department to use the 20 license classifications within BPC Section 26050. The proposed statutory changes are intended to comply with these new federal requirements.
Proposed Law:
This bill would require the Department of Cannabis Control to submit to the Department of Justice fingerprint images and other related information for criminal history information checks of certain employees, prospective employees, contractors, and subcontractors, as specified. The bill would require the Department of Cannabis Control to request from the Department of Justice subsequent notification service for those individuals, as specified.
This bill would exempt from that requirement an owner who has previously submitted fingerprint images and related information in connection with a valid state license issued by a licensing authority, as specified. The bill would prohibit the Department of Cannabis Control from considering criminal history information from a previous check of that owner when considering whether to issue a subsequent state license, per federal requirements.
Fiscal Effect:
Appropriates $5,000 Cannabis Control Fund for the 2023-24 fiscal year for the purpose of supporting the criminal history information background check process.
Support:
None on file.
Opposed:
None on file.
Comments:
This is the cannabis trailer bill and contains the necessary changes related to the Budget Act of 2023.
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 128
Author:(Committee on Budget)
As Amended Ver:February 1, 2023
Majority vote. Budget Bill Appropriation Takes Effect Immediately
SUMMARY
This bill expresses the intent of the Legislature to enact statutory changes relating to the Budget Act of 2023.
Major Provisions
COMMENTS
According to the Author
Arguments in Support
Arguments in Opposition
FISCAL COMMENTS
VOTES
UPDATED
VERSION: February 1, 2023
CONSULTANT: Christian Griffith / BUDGET / (916) 319-2099 FN: 0000062
Discussed in Hearing
View Older Hearings
Bill Author
Bill Co-Author(s):