The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (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. 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 under the jurisdiction of the Department of Cannabis Control. Existing law authorizes local jurisdictions to enforce the provisions of MAUCRSA and to regulate cannabis businesses, as specified. Existing law, until January 1, 2025, establishes a task force on state and local regulation of commercial cannabis activity to promote communication between state and local entities engaged in the regulation of commercial cannabis activity and facilitate cooperation to enforce applicable state and local laws, consisting of specified members from state agencies and all local jurisdictions regulating commercial cannabis activity that opt to participate.

Existing law, the California Fair Employment and Housing Act (FEHA), establishes the Civil Rights Department within the Business, Consumer Services, and Housing Agency to enforce civil rights laws with respect to housing and employment and to protect and safeguard the right of all persons to obtain and hold employment without discrimination based on specified characteristics or status. Existing law establishes the Department of Industrial Relations within the Labor and Workforce Development Agency, to foster, promote, and develop the welfare of the wage earners of California and improve their working conditions, among other functions.

This bill would expand the task force on regulation of commercial cannabis activity to include representatives from the Civil Rights Department and the Department of Industrial Relations.

The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (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. 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 under the jurisdiction of the Department of Cannabis Control. Existing law authorizes local jurisdictions to enforce the provisions of MAUCRSA and to regulate cannabis businesses, as specified. Existing law, until January 1, 2025, establishes a task force on state and local regulation of commercial cannabis activity to promote communication between state and local entities engaged in the regulation of commercial cannabis activity and facilitate cooperation to enforce applicable state and local laws, consisting of specified members from state agencies and all local jurisdictions regulating commercial cannabis activity that opt to participate.

Existing law, the California Fair Employment and Housing Act (FEHA), establishes the Civil Rights Department within the Business, Consumer Services, and Housing Agency to enforce civil rights laws with respect to housing and employment and to protect and safeguard the right of all persons to obtain and hold employment without discrimination based on specified characteristics or status. Existing law establishes the Department of Industrial Relations within the Labor and Workforce Development Agency, to foster, promote, and develop the welfare of the wage earners of California and improve their working conditions, among other functions.

This bill would expand the task force on regulation of commercial cannabis activity to include representatives from the Civil Rights Department and the Department of Industrial Relations.

The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (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. 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 under the jurisdiction of the Department of Cannabis Control. Existing law authorizes local jurisdictions to enforce the provisions of MAUCRSA and to regulate cannabis businesses, as specified. Existing law, until January 1, 2025, establishes a task force on state and local regulation of commercial cannabis activity to promote communication between state and local entities engaged in the regulation of commercial cannabis activity and facilitate cooperation to enforce applicable state and local laws, consisting of specified members from state agencies and all local jurisdictions regulating commercial cannabis activity that opt to participate.

Existing law, the California Fair Employment and Housing Act (FEHA), establishes the Civil Rights Department within the Business, Consumer Services, and Housing Agency to enforce civil rights laws with respect to housing and employment and to protect and safeguard the right of all persons to obtain and hold employment without discrimination based on specified characteristics or status. Existing law establishes the Department of Industrial Relations within the Labor and Workforce Development Agency, to foster, promote, and develop the welfare of the wage earners of California and improve their working conditions, among other functions.

This bill would expand the task force on regulation of commercial cannabis activity to include representatives from the Civil Rights Department and the Department of Industrial Relations.

 THIRD READING  

Bill No: AB 993

Author: Blanca Rubio (D)

Introduced: 2/15/23

Vote: 21

SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 13-0, 6/5/23

AYES: Roth, Nguyen, Alvarado-Gil, Archuleta, Ashby, Becker, Dodd, Eggman, Glazer, Niello, Smallwood-Cuevas, Wahab, Wilk

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 79-0, 4/27/23 (Consent) - See last page for vote

SUBJECT: Cannabis Task Force

SOURCE: Author

DIGEST:

This bill adds a representative from the Civil Rights Department (CRD) and the Department of Industrial Relations (DIR) to the existing Task Force on State and Local Regulation of Commercial Cannabis Activity (Task Force).

ANALYSIS:

Existing law:

1. Establishes the Department of Cannabis Control (DCC) under the jurisdiction of the Business, Consumer Services, and Housing Agency, for the licensure and regulation of the cannabis industry. (Business and Professions Code (BPC) § 26010)
   
2. Requires DCC to make and prescribe reasonable rules and regulations as may be necessary to implement, administer, and enforce its duties under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). (BPC § 26010)
   
3. Requires DCC to convene an advisory committee comprised of specified representatives from the cannabis industry, state agencies, public health, and other areas of expertise, to advise on the development of standards and regulations, including best practices and guidelines that protect public health and safety while ensuring a regulated environment for commercial cannabis activity that does not impost such barriers so as to perpetuate, rather than reduce and eliminate the illicit market for cannabis. Specifies that the advisory committee must publish an annual report describing its activities. (BPC §§ 26014)
   
4. Establishes the Task Force until January 1, 2025 whose purpose is to promote communication between state and local entities engaged in the regulation of commercial cannabis activity and facilitate cooperation to enforce applicable state and local laws. Requires the Task Force to include representatives from various state agencies and representatives from jurisdictions that regulate commercial cannabis activity and opt to participate on the Task Force. Requires the Task Force to meet biannually and exempts the Task Force from provisions of the Bagley-Keene Open Meetings Act and the Ralph M. Brown Act (BPC §26203)
   

This bill adds one representative from the CRD and one representative from the DIR to the Task Force.

Background

The DCC has both licensing and enforcement authority related to commercial cannabis in California, including authority to take action against unlicensed cannabis activities. The DCC is required to convene an advisory committee with designated members of the cannabis industry including labor, health experts, local and state agencies, among others, to make recommendations to the DCC on the development of standards including best practices and guidelines that protect public health and safety while ensuring a safe and regulated market that does perpetuate the illicit market. This advisory committee is required to publish an annual report on its recommendations and the recommendations implemented. While the DCC has the authority to ensure that cannabis-license holders are complying with the provisions of the laws and regulations pertaining the legal licensed cannabis market, the DCC may be challenged in attempting to address wage theft or worker-employment related matters as those are typically handled by different state agencies.

In addition to the DCC’s current advisory committee required under existing law, the Task Force, which was established during the 2022-23 Budget process, is supposed to promote communication between state and local entities engaged in the regulation of commercial cannabis activity and facilitate cooperation to enforce applicable state and local laws. This bill aims to increase agency representation on the Task Force to ensure that appropriate state regulators are able to contribute and increase communication efforts amongst regulators necessary to address all aspects of the cannabis industry.

A recent investigative reporting series conducted by the Los Angeles Times in 2022 highlighted potential worker exploitation and problems in the cannabis farming industry. The report noted troubling issues in the cannabis industry including accusations of wage theft, unfortunate living conditions, lack of sanitation, no rest breaks, and no easy access to food and transportation. This bill aims to increase the participants on the Task Force, which can in turn ensure that the critical issues of working conditions and employee treatment are appropriately considered in Task Force discussions.

The Task Force is required to meet twice annually beginning July 1, 2023 and is set to sunset on January 1, 2025. At this time, there is not an official meeting set for the task force. DCC contributes and participates in other task forces, including the Unified Cannabis Enforcement Taskforce, however, that task force is more aligned with addressing the illicit cannabis market including illegal products, untested cannabis, unlicensed retail, and unregulated grows.

DIR, within the Labor and Workforce Development Agency (Labor Agency), is charged with protecting and improving the health, safety, and economic well-being of over 18 million wage earners and helps their employers comply with state labor laws. The current Task Force already designates a representative from the Labor Agency; however, it does not specify that they must be from DIR as this measure does. There are multiple departments under the umbrella of the Labor & Workforce Development Agency in additional to the DIR including the Employment Development Department, Agricultural Relations Board, California Workforce Development Board, Public Employment Relations Board, California Unemployment Insurance Appeals Board, and the Employment Training Panel. Under current requirements for the Task Force, a representative from any of the above-mentioned departments could meet the criteria. As currently drafted, it is possible that two representatives from DIR could be appointed to the task force.

CRD is the state agency charged with enforcing California’s civil rights laws. The mission of the CRD is to protect the people of California from unlawful discrimination in employment, housing, businesses, and state-funded programs, and from bias-motivated violence and human trafficking.

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

SUPPORT: (Verified 8/15/23)

UFCW Western States Council

OPPOSITION: (Verified 8/15/23)

None received

ARGUMENTS IN SUPPORT: The UFCW Western States Council writes in support, “The Department of Cannabis Control is empowered to take action against both licensees and unlicensed persons for violations of cannabis laws and regulations. However, DCC is not the appropriate agency to coordinate or carry out enforcement actions against bad actors of labor trafficking. The Civil Rights Department, within the Business, Consumer Services, and Housing Agency, is better equipped to take action against perpetrators of human trafficking. Similarly, the Department of Industrial Relations is the appropriate state entity to resolve issues such as wage theft or workplace violations.”

ASSEMBLY FLOOR: 79-0, 4/27/23

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon

NO VOTE RECORDED: Jim Patterson

Prepared by: Elissa Silva / B., P. & E.D. / 916-651-4104

8/16/23 14:02:18

**** END ****

SENATE COMMITTEE ON

BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT

Senator Richard Roth, Chair

2023 - 2024 Regular

Bill No: AB 993 Hearing Date: June 5, 2023

Subject: Cannabis Task Force.

SUMMARY:

Adds a representative from the Civil Rights Department and the Department of Industrial Relations to the existing Task Force on State and Local Regulation of Commercial Cannabis Activity (Task Force).

Existing law:

1. Establishes the Department of Cannabis Control (DCC) under the jurisdiction of the Business, Consumer Services, and Housing Agency, for the licensure and regulation of the cannabis industry. (Business and Professions Code (BPC) § 26010)
   
2. Requires DCC to make and prescribe reasonable rules and regulations as may be necessary to implement, administer, and enforce its duties under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). (BPC § 26010)
   
3. Requires DCC to convene an advisory committee comprised of specified representatives from the cannabis industry, state agencies, public health, and other areas of expertise, to advise on the development of standards and regulations, including best practices and guidelines that protect public health and safety while ensuring a regulated environment for commercial cannabis activity that does not impost such barriers so as to perpetuate, rather than reduce and eliminate the illicit market for cannabis. Specifies that the advisory committee must public an annual report describing its activities. (BPC §§ 26014)
   
4. Establishes a Cannabis Control Appeals Panel comprised of one member appointed by the Senate Committee on Rules; one member appointed by the Speaker of the Assembly; and, three members appointed by the Governor, subject to confirmation. (BPC § 26040(a)(1))
   
5. Establishes the Task Force until January 1, 2025 whose purpose is to promote communication between state and local entities engaged in the regulation of commercial cannabis activity and facilitate cooperation to enforce applicable state and local laws. Requires the Task Force to include representatives from various state agencies and representatives from jurisdictions that regulate commercial cannabis activity and opt to participate on the Task Force. Requires the Task Force to meet biannually and exempts the Task Force from provisions of the Bagley-Keene Open Meetings Act and the Ralph M. Brown Act (BPC §26203)
   
   
6. Prohibits a person or entity from engaging in commercial cannabis activity without a state license issued by the DCC, as specified. (BPC § 26037.5)
   
7. Makes a person who engages in commercial cannabis activity without a required license subject to civil penalties of up to three times the amount of the license fee for each violation, as specified. (BPC § 26038(a)(1))
   

This bill adds one representative from the Civil Rights Department (CRD) and one representative from the Department of Industrial Relations (DIR) to the Task Force.

FISCAL EFFECT:

According to the Assembly Appropriations Committee, this bill will result in minor and absorbable costs to DCC, CRD, and DIR.

COMMENTS:

1. Purpose. The Author is the Sponsor of this bill. According to the Author, “This bill seeks to enhance communication between the Civil Rights Department (CRD) and the Department of Industrial Relations (DIR) by adding them to the already established task force on state and local regulation of commercial cannabis activity. By doing so, coordination and communication on labor trafficking, which the LA Times reported on earlier this year, will increase, thus enhancing enforcement within the industry…Labor trafficking takes several forms, including debt bondage, involuntary servitude, domestic servitude, and forced child labor. Victims may be held against their will, may not be allowed to leave the premises, or may be housed in a closed or remote location. They may be forced to work in poor conditions for little or no pay, in urban or rural settings, alongside or within legitimate businesses, behind locked doors or hidden in plain sight. By adding these two state entities to the task force, labor trafficking can be better enforced within the industry.”
2. Background.

Cannabis Regulation and the DCC. In 2015, Governor Brown signed three bills into law 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)), to be administered by a number of state agencies: a Bureau of Cannabis Control (BCC) within the Department of Consumer Affairs (DCA); the California Department of Public Health (CDPH); and the California Department of Food and Agriculture (CDFA).

Shortly following the passage of MCRSA, in November 2016, California voters passed Proposition 64, the “Control, Regulate and Tax Adult Use of Marijuana Act” (Prop 64), which decriminalized and legalized adult-use cannabis. Less than a year later in June 2017, the California State Legislature passed a budget trailer bill, SB 94 (Committee on Budget and Fiscal Review, Chapter 27, Statutes of 2017), that integrated MCRSA with Prop 64 to create the Medical and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), the current regulatory structure for both medicinal and adult-use cannabis.

In 2021, DCC has both licensing, regulatory and enforcement authority. DCC was designed to centralize and align critical licensing, compliance and enforcement responsibilities to help build a sustainable and successful legal cannabis market by creating a single point of contact for cannabis applicant, licensees and local governments. The goal was to ultimately simplify and centralize state regulatory efforts; improve coordination, including enforcement; reduce barriers to participation in the legal market; and incentivize greater local participation.

The DCC has both licensing and enforcement authority related to commercial cannabis in California, including authority to take action against unlicensed cannabis activities. The DCC is required to convene an advisory committee with designated members of the cannabis industry including labor, health experts, local and state agencies, among others, to make recommendations to the DCC on the development of standards including best practices and guidelines that protect public health and safety while ensuring a safe and regulated market that does perpetuate the illicit market. This advisory committee is required to publish an annual report on its recommendations and the recommendations implemented. While the DCC has the authority to ensure that cannabis-license holders are complying with the provisions of the laws and regulations pertaining the legal licensed cannabis market, the DCC may be challenged in attempting to address wage theft or worker-employment related matters as those are typically handled by different state agencies.

Task Force on State and Local Regulation of Commercial Cannabis Activity. In addition to the DCC’s current advisory committee required under existing law, the Task Force was established during the 2022-23 Budget process, which is supposed to promote communication between state and local entities engaged in the regulation of commercial cannabis activity and facilitate cooperation to enforce applicable state and local laws. This bill aims to increase agency representation on the Task Force to ensure that appropriate state regulators are able to contribute and increase communication efforts amongst regulators necessary to address all aspects of the cannabis industry.

A recent investigative reporting series conducted by the Los Angeles Times in 2022 highlighted potential worker exploitation and problems in the cannabis farming industry. The report noted troubling issues in the cannabis industry including accusations of wage theft, unfortunate living conditions, lack of sanitation, no rest breaks, no easy access to food and transportation. This bill aims to increase the participants on the Task Force which can in turn ensure that the critical issues of working conditions and employee treatment are appropriately considered in Task Force discussions.

The Task Force is required to meet twice annually beginning July 1, 2023 and is set to sunset on January 1, 2025. At this time, there is not an official meeting set for the task force. DCC contributes and participates in other task forces, including the Unified Cannabis Enforcement Taskforce, however, that task force is more aligned with addressing the illicit cannabis market including illegal products, untested cannabis, unlicensed retail, and unregulated grows.

The Civil Rights Department and the Department of Industrial Relations. DIR, within the Labor and Workforce Development Agency (Labor Agency), is charged with protecting and improving the health, safety, and economic well-being of over 18 million wage earners and helps their employers comply with state labor laws. The current Task Force already designates a representative from the Labor Agency, however it does not specify that they must be from DIR as this measure does. There are multiple departments under the umbrella of the Labor & Workforce Development Agency in additional to the Department of Industrial Relations including the Employment Development Department, Agricultural Relations Board, California Workforce Development Board, Public Employment Relations Board, California Unemployment Insurance Appeals Board, and the Employment Training Panel. Under current requirements for the Task Force, a representative from any of the above-mentioned departments could meet the criteria. As currently drafted, it is possible that two representatives from DIR could be appointed to the task force.

CRD is the state agency charged with enforcing California’s civil rights laws. The mission of the CRD is to protect the people of California from unlawful discrimination in employment, housing, businesses, and state-funded programs, and from bias-motivated violence and human trafficking.

1. Arguments in Support. The United Food and Commercial Workers Union writes in support and notes, “The Department of Cannabis Control is empowered to take action against both licensees and unlicensed persons for violations of cannabis laws and regulations. However, DCC is not the appropriate agency to coordinate or carry out enforcement actions against bad actors of labor trafficking. The Civil Rights Department, within the Business, Consumer Services, and Housing Agency, is better equipped to take action against perpetrators of human trafficking. Similarly, the Department of Industrial Relations is the appropriate state entity to resolve issues such as wage theft or workplace violations. By adding these two entities to the Cannabis Task Force, California can take the necessary steps to better combat labor trafficking for bad actors within the cannabis industry.”
   

SUPPORT AND OPPOSITION:

Support:

United Food and Commercial Workers Union

Opposition:

None received

-- END --

Date of Hearing: April 19, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

ABPCA Bill Id:AB 993

Author:(Blanca Rubio) – As Introduced Ver:February 15, 2023

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

SUMMARY:

This bill expands the membership of an existing task force on state and local regulation of commercial cannabis activity (Task Force) to include representatives of the Civil Rights Department (CRD) and the Department of Industrial Relations (DIR).

FISCAL EFFECT:

Minor and absorbable costs to the Department of Cannabis Control, CRD, and DIR.

COMMENTS:

1. Purpose. According to the author:

California must address labor inequities, especially within the newly legalized cannabis industry. Until a labor trafficking unit is established in California, adding the Civil Rights Department and Department of Industrial Relations to this task force will better ensure that coordination is occurring for labor enforcement on the cannabis industry.

1. Background. The Task Force was established through AB 195 (Committee on Budget), Chapter 56, Statutes of 2022, to promote communication between state and local entities engaged in the regulation of commercial cannabis activity and facilitate cooperation to enforce applicable state and local laws.
   

In late 2022, the Los Angeles Times began publishing a series of investigative articles under the title “Legal Weed, Broken Promises.” One article described instances in which workers at both licensed and illicit cannabis enterprises were subjected to inhumane conditions or denied labor rights. The article reported that at least 35 workers had died on cannabis farms in a five-year span through 2021, and that some workers had gone unpaid for years. Much of what the article reported took place in unlicensed and illegal cannabis operations. According to the Assembly Committee on Business and Professions analysis of this bill, there is widespread consensus that illicit cannabis has continued to proliferate, despite the enactment of MAUCRSA. As documented in the LA Times reporting, illegal cultivation and sale of cannabis is often part of broader criminal activity, frequently conducted by large cartels and often in combination with other crimes such as human trafficking.

1. Related Legislation. AB 1424 (Jones-Sawyer) prohibits a cannabis delivery employee from being laid off, discharged, or subject to an adverse employment action for refusing to perform work in violation of prescribed safety standards or work that would create a real and apparent hazard to the employee or fellow employees. AB 1424 is pending in the Assembly Labor and Employment Committee.
   
2. Prior Legislation. AB 1291 (Jones-Sawyer, Chapter 826, Statutes of 2019) requires an applicant for a cannabis license who currently employs fewer than 20 employees to provide a statement that the applicant will enter into a labor peace agreement within 60 days of employing 20 employees.

Analysis Prepared by: Allegra Kim / APPR. / (916) 319-2081

Date of Hearing: March 28, 2023

ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS

Marc Berman, Chair

ABPCA Bill Id:AB 993

Author:(Blanca Rubio) – As Introduced Ver:February 15, 2023

SUBJECT: Cannabis Task Force.

SUMMARY: Expands the membership of an existing task force on state and local regulation of commercial cannabis activity to include representatives of the Civil Rights Department and the Department of Industrial Relations.

EXISTING LAW:

1. Enacts the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) to provide for a comprehensive regulatory framework for the cultivation, distribution, transport, storage, manufacturing, processing, and sale of medicinal and adult-use cannabis. (Business and Professions Code (BPC) §§ 26000 et seq.)
2. Establishes the Department of Cannabis Control (DCC) within the Business, Consumer Services, and Housing Agency (previously established as the Bureau of Cannabis Control, the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation), for purposes of administering and enforcing MAUCRSA. (BPC § 26010)
3. Requires the DCC to convene an advisory committee to advise the department on the development of standards and regulations pursuant to MAUCRSA, which is required to include representatives of labor organizations. (BPC § 26014)
4. Establishes grounds for disciplinary action against cannabis licensees, including knowing violations of any state or local law, ordinance, or regulation conferring worker protections or legal rights on the employees of a licensee. (BPC § 26030)
5. Provides the DCC with authority for issuing twenty total types of cannabis licenses including subtypes for cultivation, manufacturing, testing, retail, distribution, and microbusiness; requires each licensee except for testing laboratories to clearly designate whether their license is for adult-use or medicinal cannabis. (BPC § 26050)
6. Requires an applicant for a license within the cannabis industry to enter into a labor peace agreement within 60 days of employing 20 employees, and requires applicants already employing 20 or more employees to provide a notarized statement that they will or already have entered into a labor peace agreement. (BPC § 26051.5)
7. Prohibits the DCC from approving an application for a state cannabis license if approval of the state license will violate the provisions of any local ordinance or regulation. (BPC § 26055)
8. Requires the DCC to establish minimum security and transportation safety requirements for the commercial distribution and delivery of cannabis and cannabis products. (BPC § 26070)
9. Expresses that state cannabis laws shall not be interpreted to supersede or limit the authority of a local jurisdiction to adopt and enforce local ordinances to regulate cannabis businesses. (BPC § 26200)
10. Provides that any standards, requirements, and regulations regarding health and safety, environmental protection, testing, security, food safety, and worker protections established by the state shall be the minimum standards for all licensees under MAUCRSA statewide, but that a local jurisdiction may establish additional standards, requirements, and regulations. (BPC § 26201)
11. Establishes a task force to promote communication between state and local entities engaged in the regulation of commercial cannabis activity and facilitate cooperation to enforce applicable state and local laws, composed of representatives from all of the following:
    1. The Department of Cannabis Control.
    2. The California Department of Tax and Fee Administration.
    3. The Department of Fish and Wildlife.
    4. The State Water Resources Control Board.
    5. The Department of the California Highway Patrol.
    6. The Labor and Workforce Development Agency.
    7. The Department of Justice.
    8. Any local jurisdictions regulating commercial cannabis activity.

(BPC § 26203)

THIS BILL:

1. Adds a representative of the Civil Rights Department to the task force on state and local regulation of commercial cannabis activity.
2. Adds a representative of the Department of Industrial Relations to the task force on state and local regulation of commercial cannabis activity.

FISCAL EFFECT: Unknown; this bill is keyed fiscal by the Legislative Counsel.

COMMENTS:

Purpose. This bill is sponsored by the author. According to the author:

“California must address labor inequities, especially within the newly legalized cannabis industry. Until a labor trafficking unit is established in California, adding the Civil Rights Department and Department of Industrial Relations to this task force will better ensure that coordination is occurring for labor enforcement on the cannabis industry.”

Background.

Brief History of Cannabis Regulation in California. Consumption of cannabis was first made lawful in California in 1996 when voters approved Proposition 215, or the Compassionate Use Act. Proposition 215 protected qualified patients and caregivers from prosecution relating to the possession and cultivation of cannabis for medicinal purposes, if recommended by a physician. This regulatory scheme was further refined by SB 420 (Vasconcellos) in 2003, which established the state’s Medical Marijuana Program. After several years of lawful cannabis cultivation and consumption under state law, a lack of a uniform regulatory framework led to persistent problems across the state. Cannabis’s continued illegality under the federal Controlled Substances Act, which classifies cannabis as a Schedule I drug ineligible for prescription, generated periodic enforcement activities by the United States Department of Justice. Threat of action by the federal government created apprehension within California’s cannabis community.

After several prior attempts to improve the state’s regulation of cannabis, the Legislature passed the Medical Marijuana Regulation and Safety Act—subsequently retitled the Medical Cannabis Regulation and Safety Act (MCRSA)—in 2015. MCRSA established, for the first time, a comprehensive statewide licensing and regulatory framework for the cultivation, manufacture, transportation, testing, distribution, and sale of medicinal cannabis. While entrusting state agencies to promulgate extensive regulations governing the implementation of the state’s cannabis laws, MCRSA fully preserved local control. Under MCRSA, local governments may establish their own ordinances to regulate medicinal cannabis activity. Local jurisdictions could also choose to ban cannabis establishments altogether.

Not long after the Legislature enacted MCRSA, California voters passed Proposition 64, the Adult Use of Marijuana Act (AUMA). The passage of the AUMA legalized cannabis for non-medicinal adult use in a private home or licensed business; allowed adults 21 and over to possess and give away up to approximately one ounce of cannabis and up to eight grams of concentrate; and permitted the personal cultivation of up to six plants. The proponents of the AUMA sought to make use of much of the regulatory framework and authorities set out by MCRSA while making a few notable changes to the structure still being implemented.

In the spring of 2017, SB 94 (Committee on Budget and Fiscal Review) was passed to reconcile the distinct systems for the regulation, licensing, and enforcement of legal cannabis that had been established under the respective authorities of MCRSA and the AUMA. The single consolidated system established by the bill—known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA)—created a unified series of cannabis laws. On January 16, 2019, the state’s three cannabis licensing authorities—the Bureau of Cannabis Control, the California Department of Food and Agriculture, and the California Department of Public Health—officially announced that the Office of Administrative Law had approved final cannabis regulations promulgated by the three agencies respectively.

In early 2021, the Department of Finance released trailer bill language to create a new Department with centralized authority for cannabis licensing and enforcement activities. This new department was created through a consolidation of the three prior licensing authorities’ cannabis programs. As of July 1, 2021, the Department has been the single entity responsible for administering and enforcing the majority of MAUCRSA. New regulations went into effect on January 1, 2023 to effectuate the consolidation and make other changes to cannabis regulation.

Worker Exploitation in the Cannabis Industry. In late 2022, the Los Angeles Times began publishing a series of investigative articles under the title “Legal Weed, Broken Promises.” One article, titled “Dying for your high: The untold exploitation and misery in America’s weed industry,” highlighted a series of affective anecdotes in which workers at both licensed and illicit cannabis enterprises were subjected to inhumane conditions or denied labor rights. The article reported that at least 35 workers had died on cannabis farms in a five-year span through 2021, and that some workers had gone unpaid for years.^[1]

Much of what the Times article reported took place in unlicensed and illegal cannabis operations. A report published by the Reason Foundation estimates that as much as two-thirds of cannabis sales in California take place on the black market, which is consistent with the widespread consensus that illicit cannabis has continued to proliferate notwithstanding the enactment of MAUCRSA. As documented in the Times reporting, the illegal cultivation and sale of cannabis is often part of broader criminal activity, frequently conducted by large cartels and often in combination with other crimes such as human trafficking.

The DCC is empowered to take action against both licensees and unlicensed persons for violations of MAUCRSA. However, it is unlikely that the DCC is the appropriate agency to coordinate or carry out enforcement actions against bad actors whose transgressions rise to the level of labor trafficking. In addition to the Office of the Attorney General and other law enforcement agencies, the Civil Rights Department within the Business, Consumer Services, and Housing Agency has been identified as a state entity that is better equipped to take action against perpetrators of human trafficking, including in circumstances similar to those described in the Times series.

This bill would add the Civil Rights Department to the list of agencies that compose a task force on state and local regulation of commercial cannabis activity. This task force was established through the 2022-23 Budget process to promote communication between state and local entities engaged in the regulation of commercial cannabis activity and facilitate cooperation to enforce applicable state and local laws. The author contends that inclusion of the Civil Rights Department would enhance the state’s response to cannabis operators whose crimes go beyond violations of MAUCRSA and extend to human trafficking.

In addition, this bill would add a representative of the Department of Industrial Relations to the task force on state and local regulation of commercial cannabis activity. The Times series reported that “four California Department of Cannabis Control employees said they are often disturbed by the labor conditions they see and feel frustrated that there is nothing in cannabis regulations that deals with those situations.” Instead, the DCC has pointed out that the Department of Industrial Relations is the appropriate entity to resolve issues such as wage theft or workplace violations. While these violations may take place on the premises of a licensed cannabis business, it is not within the DCC’s purview to engage in investigation or enforcement of those offenses.

The author believes that the inclusion of the Department of Industrial Relations in the interagency task force will ensure that there is no enforcement gap resulting from divergent jurisdictions between agencies tasked with enforcing laws cannabis business must follow.

Current Related Legislation. AB 1424 (Jones-Sawyer) would prohibit a cannabis delivery employee from being laid off, discharged, or subject to an adverse employment action for refusing to perform work in violation of prescribed safety standards or work that would create a real and apparent hazard to the employee or fellow employees. This bill is pending in the Assembly Labor Committee.

Prior Related Legislation. AB 195 (Committee on Budget, Chapter 56, Statutes of 2022) established the task force on state and local regulation of commercial cannabis activity.

AB 1291 (Jones-Sawyer, Chapter 826, Statutes of 2019) requires an applicant for a cannabis license who currently employs fewer than 20 employees to provide a statement that the applicant will enter into a labor peace agreement within 60 days of employing 20 employees.

IMPLEMENTATION ISSUES:

This bill would add the Department of Industrial Relations to the task force on state and local regulation of commercial cannabis activity. However, this task force already includes a representative of the Labor and Workforce Development Agency, which is the agency that oversees the Department of Industrial Relations as well as the Agricultural Labor Relations Board, Employment Development Department, and other related entities. The author may wish to explore whether including both the Department of Industrial Relations and the Labor and Workforce Development Agency could be redundant.

REGISTERED SUPPORT:

None on file.

REGISTERED OPPOSITION:

None on file.

Analysis Prepared by: Robert Sumner / B. & P. / (916) 319-3301

1. St. John, Paige and Gerber, Marisa. “Dying for your high: The untold exploitation and misery in America’s weed industry.” Los Angeles Times, December 22, 2022. ↑