The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities, including retail commercial cannabis activity, under the jurisdiction of the Department of Cannabis Control.

Existing law requires cannabis and cannabis product labels and inserts to include specified warnings about the safety of cannabis use.

This bill would, on or before July 1, 2025, require the department to reevaluate regulations for the above-described warnings to determine whether any additional warnings are necessary to reflect evolving science, and would require the department to adopt regulations for cannabis and cannabis product labels or inserts reflecting the evolving science regarding the risks that cannabis use may cause consumers. The bill would, on or before January 1, 2030, and every 5 years thereafter, require the department to reevaluate the adopted regulations to determine whether the requirements reflect the state of the evolving science on cannabis health effects and on effective communication of health warnings. The bill would authorize cannabis or cannabis products manufactured before January 1, 2030, and every proceeding year new labeling requirements are imposed to be sold for up to 12 months or for a shorter period of time as prescribed by the department.

The bill would, on or before January 1, 2025, require the department, in consultation with the State Department of Public Health, to create and post for public use a single-page flat or folded brochure that includes prescribed information, including, among other things, implications and risks associated with cannabis use, as specified. The bill would, on and after March 1, 2025, require a retailer or microbusiness selling, or person delivering, cannabis or cannabis products to a consumer to prominently display the brochure, including printed copies, at the point of sale of final delivery in person or online, and offer each new consumer a copy of the brochure at the time of first purchase or delivery. The bill would, on or before January 1, 2030, and every 5 years thereafter, require the department to either recertify the information in the brochure or provide updated language, as specified.

The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities, including retail commercial cannabis activity, under the jurisdiction of the Department of Cannabis Control.

Existing law requires cannabis and cannabis product labels and inserts to include specified warnings about the safety of cannabis use.

This bill would, on or before July 1, 2025, require the department to reevaluate regulations for the above-described warnings to determine whether any additional warnings are necessary to reflect evolving science, and would require the department to adopt regulations for cannabis and cannabis product labels or inserts reflecting the evolving science regarding the risks that cannabis use may cause consumers. The bill would, on or before January 1, 2030, and every 5 years thereafter, require the department to reevaluate the adopted regulations to determine whether the requirements reflect the state of the evolving science on cannabis health effects and on effective communication of health warnings. The bill would authorize cannabis or cannabis products manufactured before January 1, 2030, and every proceeding year new labeling requirements are imposed to be sold for up to 12 months or for a shorter period of time as prescribed by the department.

The bill would, on or before January 1, 2025, require the department, in consultation with the State Department of Public Health, to create and post for public use a single-page flat or folded brochure that includes prescribed information, including, among other things, implications and risks associated with cannabis use, as specified. The bill would, on and after March 1, 2025, require a retailer or microbusiness selling, or person delivering, cannabis or cannabis products to a consumer to prominently display the brochure, including printed copies, at the point of sale of final delivery in person or online, and offer each new consumer a copy of the brochure at the time of first purchase or delivery. The bill would, on or before January 1, 2030, and every 5 years thereafter, require the department to either recertify the information in the brochure or provide updated language, as specified.

The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities, including retail commercial cannabis activity, under the jurisdiction of the Department of Cannabis Control.

Existing law requires cannabis and cannabis product labels and inserts to include specified warnings about the safety of cannabis use.

This bill would, on or before July 1, 2025, require the department to reevaluate regulations for the above-described warnings to determine whether any additional warnings are necessary to reflect evolving science, and would require the department to adopt regulations for cannabis and cannabis product labels or inserts reflecting the evolving science regarding the risks that cannabis use may cause consumers. The bill would, on or before January 1, 2030, and every 5 years thereafter, require the department to reevaluate the adopted regulations to determine whether the requirements reflect the state of the evolving science on cannabis health effects and on effective communication of health warnings. The bill would authorize cannabis or cannabis products manufactured before January 1, 2030, and every proceeding year new labeling requirements are imposed to be sold for up to 12 months. months or for a shorter period of time as prescribed by the department.

The bill would, on or before January 1, 2025, require the department, in consultation with the State Department of Public Health, to create and post for public use a single-page flat or folded brochure that includes prescribed information, including, among other things, implications and risks associated with cannabis use, as specified. The bill would, on and after March 1, 2025, require a retailer or microbusiness selling, or person delivering, cannabis or cannabis products to a consumer to prominently display the brochure, including printed copies, at the point of sale of final delivery in person or online, and offer each new consumer a copy of the brochure at the time of first purchase or delivery. The bill would, on or before January 1, 2030, and every 5 years thereafter, require the department to either recertify the information in the brochure or provide updated language, as specified.

The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities, including retail commercial cannabis activity, under the jurisdiction of the Department of Cannabis Control.

Existing law requires cannabis and cannabis product labels and inserts to include specified warnings about the safety of cannabis use.

This bill would, on or before July 1, 2025, authorize require the department to reevaluate regulations for the above-described warnings to determine whether any additional warnings are necessary to reflect evolving science, and would require the department to adopt regulations for cannabis and cannabis product labels or inserts reflecting the evolving science regarding the risks that cannabis use may cause consumers. The bill would, on or before January 1, 2030, and every 5 years thereafter, require the department to reevaluate the adopted regulations to determine whether the requirements reflect the state of the evolving science on cannabis health effects and on effective communication of health warnings. The bill would authorize cannabis or cannabis products manufactured before January 1, 2030, and every proceeding year new labeling requirements are imposed to be sold for up to 12 months.

The bill would, on or before January 1, 2025, require the department, in consultation with the State Department of Public Health, to create and post for public use a single-page flat or folded brochure that includes prescribed information, including, among other things, implications and risks associated with cannabis use, as specified. The bill would, on and after March 1, 2025, require a retailer or microbusiness selling, or person delivering, cannabis or cannabis products to a consumer to prominently display the brochure brochure, including printed copies, at the point of sale of final delivery in person or online, and make available upon request of a offer each new consumer a copy of the brochure at the time of first purchase or delivery. The bill would, on or before January 1, 2030, and every 5 years thereafter, require the department to either recertify the information in the brochure or provide updated language, as specified.

The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities, including retail commercial cannabis activity, under the jurisdiction of the Department of Cannabis Control.

Existing law requires cannabis and cannabis product labels and inserts to include specified warnings about the safety of cannabis use.

This bill would, on or before July 1, 2025, authorize the department to reevaluate regulations for the above-described warnings to determine whether any additional warnings are necessary to reflect evolving science, and would require the department to adopt regulations for cannabis and cannabis product labels or inserts reflecting the evolving science regarding the risks that cannabis use may cause consumers. The bill would, on or before January 1, 2030, and every 5 years thereafter, require the department to reevaluate the adopted regulations to determine whether the requirements reflect the state of the evolving science on cannabis health effects and on effective communication of health warnings.

The bill would require the department to convene, as needed, an advisory committee, with a specified composition, for the sole purpose of considering the accuracy and relevance of current warning label and insert requirements, reviewing possible updates and amendments, and making recommendations to the department about any updates or amendments.

The bill would, on or before January 1, 2025, require the department, in consultation with the State Department of Public Health, to create and post for public use a single-page flat or folded brochure that includes prescribed information, including, among other things, implications and risks associated with cannabis use, as specified. The bill would, on and after March 1, 2025, require a retailer or microbusiness selling, or person delivering, cannabis or cannabis products to a consumer to display the brochure at the point of sale in person or online, and make available upon request of a consumer a copy of the brochure at the time of first purchase or delivery. The bill would, on or before January 1, 2030, and every 5 years thereafter, require the department to either recertify the information in the brochure or provide updated language, as specified.

 UNFINISHED BUSINESS  

Bill No: SB 540

Author: Laird (D)

Amended: 6/28/23

Vote: 21

SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 13-0, 4/10/23

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

SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/18/23

AYES: Portantino, Jones, Ashby, Bradford, Seyarto, Wahab, Wiener

SENATE FLOOR: 40-0, 5/25/23

AYES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ASSEMBLY FLOOR: 79-0, 9/6/23 - See last page for vote

SUBJECT: Cannabis and cannabis products: health warnings

SOURCE: California Cannabis Industry Association

DIGEST:

This bill requires the Department of Cannabis Control (DCC), in consultation with the Department of Public Health (DPH), on or before January 1, 2025, to create a brochure with information about steps for the safer use of cannabis; requires the DCC to reevaluate regulations pertaining to labeling and packaging requirements for cannabis and cannabis products before July 1, 2025; and, requires the DCC to reevaluate regulations for labeling and packaging requirements on or before January 1, 2030, and every five years thereafter, as specified

Assembly Amendments

revise the information required on the brochure for the safer use of cannabis products; require a cannabis retailer or microbusiness to provide the brochure at the point of sale or at final delivery at the time of first purchase or delivery; require instead of make optional that the DCC evaluate regulations related to packaging and labeling of cannabis and cannabis products; and, delete the requirement for the DCC in consultation with the DPH to create and advisory committee, as specified.

ANALYSIS:

Existing law:

1. Establishes the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) to regulate the cultivation, distribution, transport, storage, manufacturing, processing, and sale of both medicinal cannabis and adult-use cannabis. (Business and Professions Code (BPC) § 26000)
2. Requires all cannabis and cannabis products labels and inserts to include specified information displayed in clear and legible in accordance with requirements, including font size, prescribed by the DCC. Requires the following statements must also be in bold print:

“GOVERNMENT WARNING: THIS PACKAGE CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.” (BPC § 26120 (c)(1)(A))

1. Prohibits a licensee from including on the label of any cannabis or cannabis product, publish, or disseminate advertising or marketing containing and health-related statement this is untrue in any particular manner or tends to create a misleading impression as to the effects on health of cannabis consumption. (BPC § 26154)
2. Requires the label for a manufactured cannabis product to include a primary panel, containing specified information including the identity of the product, the universal symbol, and the net weight or volume in a type size no smaller than six-point and proportional to the size of the primary panel and container. (Title 4 California Code of Regulations (CCR) § 17404)
3. Requires, in addition to the label requirements in 4) above, the primary panel of an edible cannabis product to include the words cannabis-infused or “cannabis infused” immediately above the identity of the product in bold type and a text size larger than the text size used for the identity of the product. (4 CCR § 17405)

This bill:

1. Requires the DCC in consultation with DPH to create and post for public use, a single page-flat or folded brochure that includes steps for safer use of cannabis including specified information. Requires the DCC to recertify the information, beginning January 1, 2030, and every five years after, as specified.
2. Requires on and after March 1, 2025, a retailer or microbusiness selling, or a person delivering cannabis or cannabis products to a consumer, to prominently display the brochure at the point of sale or final delivery in-person and online at the time of online purchases and offer each new customer a copy at the time of first purchase or delivery.
3. Requires the DCC on or before July 1, 2025 to re-evaluate regulations related to the packaging and label requirements for cannabis products, to determine whether any additional warnings are necessary to reflect evolving science, and adopt regulations for cannabis and cannabis product labels or inserts reflecting the evolving science regarding the risks that cannabis use may cause consumers. Requires the DCC, on or before January 1, 2030, and every five years thereafter, to re-evaluate the regulations related to the packaging and label requirements to determine whether requirements imposed in those regulations reflect the state of the evolving science on cannabis health effects and on effective communication of health warnings.
4. States that the Legislature recommends for DCC to use, and further authorizes the DCC to use research currently required to be funded by cannabis taxes, as specified.
5. Permits cannabis or cannabis products manufactured before July 1, 2025 to be sold before July 1, 2026 without meeting labeling requirements.
   
6. Permits cannabis or cannabis products manufactured before January 1, 2030 and every year thereafter when new labeling requirements are imposed, as specified, to be sold for up to 12 months from the effective date of those regulations, or for a shorter period of time as prescribed by the DCC, if they comply with the regulations in effect prior to the enactment of the new regulations.

Background

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 Medical Cannabis Regulation & Safety Act 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 addition to the robust licensing, transporting, testing, cultivating and enforcement provisions of MACURSA, there are very strict labeling and advertising requirements for cannabis and cannabis products.

MAUCRSA explicitly prohibits packages and labels for cannabis goods from being attractive to children. This includes a ban on labeling that uses depictions of minors, cartoons, candy packaging, or other images popularly used to advertise to children. The DCC’s regulations also prohibit the labeling from containing statements that are potentially deceptive or false. Specifically, current regulations prohibit “any health-related statement that is untrue or misleading.” This bill requires the DCC to review the current regulations pertaining to labeling and packaging requirements (BPC § 26120) and determine if any additional warnings are necessary, based on “evolving science” and adopt regulations for labels or inserts reflecting that “evolving science” by July 1, 2025 and then once again by January 1, 2030 and every five years after that. This bill permits cannabis or cannabis products manufactured before the new labeling requirements are made to sell the product for an additional year, even if new regulations are required. This is likely to provide licensees time to comply with revised labeling requirements.

Over the past decade, reported cannabis consumption has increased. It is not clear if consumption has increased or legalization has normalized use. Cannabis use during adolescence is particularly concerning due to the impact on the developing brain. As required by Proposition 64, cannabis taxes fund cannabis research at public universities or universities in California. As a condition of receiving funds, the researcher must provide updates every two years, and if appropriate provide recommendations to the Legislature and the Governor.

Consumer Information and Education. As the state’s principal regulator of cannabis, the DCC and its predecessors have engaged in multiple public awareness campaigns to improve consumer safety, combat the illicit market, and encourage responsible consumption practices. In addition, the DCC’s current website features a number of consumer guides to promote safe cannabis consumption. One conspicuously linked webpage titled “Responsible cannabis use” contains detailed information about “How to use cannabis safely.” The website specifically encourages consumers to “Be aware how edibles affect you, “Be cautious when inhaling cannabis,” “Do not use cannabis while pregnant or breastfeeding,” and “Do not get behind the wheel.” The DCC’s website hosts additional information about safely storing cannabis at home and keeping children and pets safe. It also includes resources for talking to young people about cannabis, and how to recognize if a young person is using cannabis, among other information.

This bill requires a retailer, microbusiness, selling, a person delivering cannabis, or cannabis products to prominently display the brochure, including printed copies at the point of sale or final delivering in person and offer each new customer a copy of the brochure.

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

According to the Assembly Appropriations Committee:

DCC estimates costs of $439,000 in the first year and $423,000 annually thereafter to develop, in consultation with CDPH, the warning statement and the public brochure, recertify or update the public brochure every five years, continually research and update warning labels, update the warnings regulations, provide technical assistance to licensees, and enforce licensees’ compliance with the provisions of this bill (Cannabis Control Fund).

CDPH estimates minor and absorbable costs.

SUPPORT: (Verified 9/6/23)

California Cannabis Industry Association (source)

Big Sur Farmers Association
California NORML

California Academy of Family Physicians
Humboldt County Growers Alliance
Kiva Confections
Lompoc Valley Cannabis Association, Santa Barbara County
Mendocino Cannabis Alliance
Nevada County Cannabis Alliance
Origins Council
The Parent Company
Trinity County Agriculture Alliance
Weedmaps

OPPOSITION: (Verified 9/6/23

None received

ARGUMENTS IN SUPPORT: Supporters note generally, this bill create an industry-wide standard that guarantees consumers in all licensed jurisdictions will have access to critical safety information and educational materials and establishes requirements for consumer education.

ASSEMBLY FLOOR: 79-0, 9/6/23

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, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

NO VOTE RECORDED: Grayson

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

9/7/23 8:59:42

**** END ****

SENATE THIRD READING

STR Bill Id:SB 540

Author:(Laird)

As Amended Ver:June 28, 2023

Majority vote

SUMMARY

Requires the Department of Cannabis Control (DCC) to regularly reevaluate its regulations and determine whether additional warning labels are necessary to reflect evolving science regarding the risks of cannabis use, and requires the DCC to consult with the Department of Public Health (CDPH) to create a brochure that includes steps for safer use of cannabis.

Major Provisions

1. Requires the DCC to reevaluate its existing regulations, on or before July 1, 2025, to determine whether any additional warnings are necessary to reflect evolving science, and requires the DCC to adopt regulations for cannabis and cannabis product labels or inserts reflecting the evolving science regarding the risks that cannabis use may cause consumers.
2. Subsequently requires the DCC to again reevaluate its regulations on or before January 1, 2030 and then every five years thereafter to further determine whether requirements imposed in the DCC's regulations reflect the state of the evolving science on cannabis health effects and on effective communication of health warnings.
3. Authorizes and recommends that the DCC use research funded through the Cannabis Tax Fund that evaluates labeling and packaging, and authorizes the DCC to commission new research to assess the efficacy of warning label requirements and approaches to identify future best practices for cannabis health warning labels that are most effective in changing knowledge and intent to consume or consumption.
4. Allows for cannabis or cannabis products manufactured before July 1, 2025 to continue to be sold until July 1, 2026, without meeting new labeling requirements imposed by the DCC on or before July 1, 2025.
5. Subsequently allows cannabis or cannabis products to continue to be sold for up to 12 months following the effective date of new labeling regulations adopted by the DCC, or for a shorter period of time as prescribed by the DCC in those regulations, if they comply with the regulations in effect prior to the enactment of the new regulations.
6. Requires the DCC to consult with the CDPH on or before January 1, 2025 to create and publish a single-page flat or folded brochure that includes steps for safer use of cannabis.
7. Provides that the DCC's informational brochure shall include, at a minimum, the following:
   1. Information about the pharmacological effects of cannabis use.
   2. Information on the implications and risks associated with high potency cannabis products; the potential for THC to exacerbate certain mental health conditions; cannabis use by minors; and cannabis use by pregnant and breastfeeding persons.
8. Requires the brochure to be printed in a type size not smaller than 12 points. Printing and distribution shall be the responsibility of the licensee.
9. Requires the DCC to either recertify the information on the brochure or provide updated language that accurately reflects the state of the evolving science on cannabis health effects and safer use of cannabis every five years beginning January 1, 2030.
10. Beginning March 1, 2025, requires a retailer or microbusiness selling, or person delivering, cannabis goods to a consumer to prominently display the brochure, including printed copies, at the point of sale or final delivery in person and online at time of online purchases, and to offer each new consumer a copy of the brochure at the time of first purchase or delivery.

COMMENTS

Labeling Requirements for Cannabis Packaging. Language enacted as part of the original MCRSA legislation in 2015 set strict standards for cannabis packaging and labeling, including inclusion of specific cautionary statements. Proposition 64 then recodified nearly identical language for its own mandated label content, with a handful of minor variations reconciled when SB 94 merged MCRSA and the AUMA into MAUCRSA. Under current law, all cannabis product labels must display the following statement in a clear and legible fashion, in bold print:

GOVERNMENT WARNING: THIS PRODUCT CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS PRODUCTS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. THE INTOXICATING EFFECTS OF CANNABIS PRODUCTS MAY BE DELAYED UP TO TWO HOURS. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS PRODUCTS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.

In addition to the above statement, MAUCRSA requires certain factual information about the product's ingredients and contents to be listed, as well as information associated with a unique identifier for purposes of identifying and tracking the cannabis goods. MAUCRSA also authorizes the DCC to set its own additional requirements for cannabis packaging and labeling. Regulations promulgated by the DCC and its predecessors have set additional labeling standards. For example, all required labels must be "unobstructed and conspicuous" in at least 6 point type size, and must be written in English. Additional language is required for specific product types.

MAUCRSA explicitly prohibit the packages and labels for cannabis goods from being made to be attractive to children. The DCC's regulations specifically prohibit cannabis goods labeling from containing content that is, or designed to be, attractive to individuals under the age of 21 using the same criteria as provided for advertising restrictions. This includes a ban on labeling that uses depictions of minors, cartoons, candy packaging, or other images popularly used to advertise to children.

The DCC's regulations also prohibit the labeling on cannabis goods from containing statements that are potentially deceptive or false. Specifically, current regulations prohibit "any health-related statement that is untrue or misleading" and require the following:

Any health-related statement must be supported by the totality of publicly available scientific evidence (including evidence from well-designed studies conducted in a manner which is consistent with generally recognized scientific procedures and principles), and for which there is significant scientific agreement among experts qualified by scientific training and experience to evaluate such claims.

This bill would require the DCC to reevaluate its existing regulations to determine whether to establish new labeling requirements on packaging for cannabis goods. In addition to all the information currently required for cannabis labels, including the warning statement mandated under MAUCRSA, this bill would require the DCC to consider adding additional warnings that are necessary to reflect evolving science regarding the risks that cannabis use may cause consumers. The first reevaluation would be required to take place on or before July 1, 2025, and additional reevaluations would be required every five years beginning January 1, 2030.

Consumer Education. The DCC and its predecessors have engaged in public awareness campaigns to improve consumer safety, combat the illicit market, and encourage responsible consumption. In June of 2019, the Bureau of Cannabis Control launched a statewide public information campaign called "Get #weedwise." This campaign encouraged cannabis users to purchase products only from the legal market and warn against the health hazards associated with illicit cannabis. The state's public awareness campaigns have included billboards encouraging consumers to verify the legal status of cannabis sellers, social media graphics containing information about safe consumption practices, and educational YouTube videos about the importance of accurate labeling and how to verify a retailer's license using a QR code.

In addition, the DCC's website features a number of consumer guides to promote safe cannabis consumption. One conspicuously linked webpage titled "Responsible cannabis use" contains detailed information about "How to use cannabis safely." The website specifically encourages consumers to "Be aware how edibles affect you, "Be cautious when inhaling cannabis," "Do not use cannabis while pregnant or breastfeeding," and "Do not get behind the wheel." The DCC's website hosts additional information about safely storing cannabis at home and keeping children and pets safe.

This bill would require the DCC to create an educational brochure, in consultation with the CDPH, aimed at further educating consumers about the health effects and risks of cannabis use. The brochure would be required to include information about the pharmacological effects of cannabis use, as well as information about the implications and risks associated with, but not limited to, all of the following:

1. High potency cannabis products.
2. The potential for THC to exacerbate certain mental health conditions.
3. Cannabis use by minors.
4. Cannabis use by pregnant and breastfeeding persons.

Under the bill, the DCC would be required to create and post the brochure no later than January 1, 2025. The DCC would then be required to either recertify the information in the brochure or provide updated language that accurately reflects the state of the evolving science on cannabis health effects and safer use of cannabis. The bill requires that the review of the brochure be done in conjunction with the review required for the DCC's cannabis product labeling regulations.

Beginning March 1, 2025, this bill would require every retailer or microbusiness engaged in selling or delivering cannabis goods to prominently display the brochure, including printed copies, at the point of sale or final delivery in person, and online at time of online purchase. Responsibility for printing and distributing the pamphlet would be placed on the licensee. Cannabis sellers would be further required to offer each new consumer a copy of the brochure at the time of first purchase or delivery.

According to the Author

"Safe cannabis use is essential to promote responsible and informed consumption. To achieve this SB 540 requires the DCC and the DPH to develop an informational brochure that will serve as a valuable resource for individuals and new customers interested in cannabis use. The brochure will provide crucial information on consumption and outline responsible use practices, such as avoiding cannabis use during pregnancy. Overall, an informational brochure on safe cannabis use will empower individuals with knowledge, promoting responsible consumption and minimizing potential harm."

Arguments in Support

The California Cannabis Industry Association (CCIA) is sponsoring this bill. The CCIA writes jointly with the Cannabis Distribution Association and the California Cannabis Manufacturers Association: "While we are proud of collective efforts to support the integrity of the legal cannabis market, concerns persist over whether the existing labeling requirements for cannabis are sufficient to inform consumers and deter youth access. Evolving science on the risks and benefits of cannabis also necessitates an ongoing review of existing labeling requirements and the development of other educational materials." The letter goes on to state: "SB 540 represents the legal cannabis industry's solution to concerns that existing consumer education may still be lacking and compliments policy discussions currently underway within the DCC and the DPH, by creating a process that guarantees consumers in all licensed jurisdictions will have access to up-to-date, critical safety information and educational materials. It will also ensure that licensed cannabis products contain uniform and consistent information, while also allowing regulators to strengthen and refine laws according to science and ongoing research."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Committee Appropriations, the DCC estimates costs of $439,000 in the first year and $423,000 annually thereafter to develop, in consultation with CDPH, the warning statement and the public brochure, recertify or update the public brochure every five years, continually research and update warning labels, update the warnings regulations, provide technical assistance to licensees, and enforce licensees' compliance.

VOTES

SENATE FLOOR: 40-0-0

YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ASM BUSINESS AND PROFESSIONS: 18-0-1

YES: Berman, Flora, Alanis, Alvarez, Bains, Bonta, Chen, Dixon, Gipson, Grayson, Irwin, Jackson, Lee, Lowenthal, McCarty, McKinnor, Stephanie Nguyen, Joe Patterson

ABS, ABST OR NV: Ting

ASM APPROPRIATIONS: 16-0-0

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Sanchez, Soria, Weber, Wilson

UPDATED

VERSION: June 28, 2023

CONSULTANT: Robert Sumner / B. & P. / (916) 319-3301 FN: 0001466

Date of Hearing: August 16, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

SBPCA Bill Id:SB 540

Author:(Laird) – As Amended Ver:June 28, 2023

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

SUMMARY:

This bill requires the Department of Cannabis Control (DCC) to reevaluate regulations regarding warnings about the safety of cannabis use, and adopt additional warnings reflecting the evolving science regarding the risks of cannabis use, as needed, for use on cannabis product labels or inserts. The bill also requires DCC, in consultation with the California Department of Public Health (CDPH), to create, post, and update a brochure on safer cannabis use, and requires cannabis retailers or microbusinesses to offer and display the brochure to each new consumer.

FISCAL EFFECT:

DCC estimates costs of $439,000 in the first year and $423,000 annually thereafter to develop, in consultation with CDPH, the warning statement and the public brochure, recertify or update the public brochure every five years, continually research and update warning labels, update the warnings regulations, provide technical assistance to licensees, and enforce licensees’ compliance with the provisions of this bill (Cannabis Control Fund).

CDPH estimates minor and absorbable costs.

COMMENTS:

1. Purpose. This bill is sponsored by the California Cannabis Industry Association. According to the author:
   

Safe cannabis use is essential to promote responsible and informed consumption. To achieve this SB 540 requires the DCC and [CDPH] to develop an informational brochure that will serve as a valuable resource for individuals and new customers interested in cannabis use. The brochure will provide crucial information on consumption and outline responsible use practices, such as avoiding cannabis use during pregnancy. Overall, an informational brochure on safe cannabis use will empower individuals with knowledge, promoting responsible consumption and minimizing potential harm.

1. Background. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) requires all cannabis product labels to display the following statement in bold print:
   

GOVERNMENT WARNING: THIS PRODUCT CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS PRODUCTS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. THE INTOXICATING EFFECTS OF CANNABIS PRODUCTS MAY BE DELAYED UP TO TWO HOURS. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS PRODUCTS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.

MAUCRSA further requires labels to include specified information about the product’s ingredients and contents, as well as information associated with a unique identifier for purposes of tracking cannabis products, and authorizes DCC to set additional requirements for cannabis packaging and labeling. DCC’s regulations prohibit labeling on cannabis goods from containing statements that are potentially deceptive or false, including “any health-related statement that is untrue or misleading”.

1. Related Legislation. AB 1207 (Irwin), of the current legislative session, places restrictions on the advertising, marketing, packaging, and labeling of cannabis and cannabis products and bans the use of flavors in cannabis or cannabis products intended for use by inhalation or combustion. AB 1207 is pending in the Senate Committee on Appropriations.
2. Prior Legislation.
   1. AB 1894 (L. Rivas), Chapter 390, Statutes of 2022, placed additional requirements and restrictions on the packages and labels of integrated cannabis vaporizers.
      
   2. SB 1097 (Pan), of the 2021-22 Legislative Session, would have required DCC to adopt regulations to require additional cannabis and cannabis product packaging warning labels about mental health risks of cannabis use. SB 1097 died on the Assembly Floor.

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

Date of Hearing: June 27, 2023

ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS

Marc Berman, Chair

SBPCA Bill Id:SB 540

Author:(Laird) – As Amended Ver:June 19, 2023

SENATE VOTE: 40-0

SUBJECT: Cannabis and cannabis products: health warnings

SUMMARY: Requires the Department of Cannabis Control (DCC) to regularly reevaluate its regulations and determine whether additional warning labels are necessary to reflect evolving science regarding the risks of cannabis use, and requires the DCC to consult with the Department of Public Health (CDPH) to create a brochure that includes steps for safer use of cannabis.

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 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 state licensing authorities on the development of standards and regulations for legal cannabis, including best practices and guidelines that protect public health and safety while ensuring a regulated environment for commercial cannabis activity that does not impose such barriers so as to perpetuate, rather than reduce and eliminate, the illicit market for cannabis. (BPC § 26014)
4. Establishes grounds for disciplinary action against cannabis licensees, including failures to comply with state licensing requirements as well as any applicable local laws and ordinances. (BPC § 26030)
5. Provides for twenty total types of cannabis licenses including subtypes for cultivation, manufacturing, testing, retail, distribution, and microbusiness. (BPC § 26050)
6. Requires cannabis or cannabis products purchased by a customer to be placed in an opaque package prior to leaving a licensed retail premises. (BPC § 26070.1)
7. Prohibits cannabis and cannabis product packages and labels from being made to be attractive to children. (BPC § 26120(b))
8. Requires all cannabis and cannabis product labels and inserts to include, among other specified information, the following statement prominently displayed in a clear and legible fashion, with the statement relating to intoxication delay limited to cannabis products:

“GOVERNMENT WARNING: THIS PRODUCT CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS PRODUCTS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. THE INTOXICATING EFFECTS OF CANNABIS PRODUCTS MAY BE DELAYED UP TO TWO HOURS. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS PRODUCTS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.”

(BPC § 26120(c))

1. Requires the DCC to promulgate regulations setting standards for the manufacturing, packaging, and labeling of all manufactured cannabis products, including a requirement that products be provided to customers with sufficient information to enable the informed consumption of the product, including the potential effects of the cannabis product and directions as to how to consume the cannabis product, as necessary. (BPC § 26130)
2. Prohibits a cannabis licensee from doing any of the following:
   1. Advertising or marketing in a manner that is false or untrue in any material particular, or that, irrespective of falsity, directly, or by ambiguity, omission, or inference, or by the addition of irrelevant, scientific, or technical matter, tends to create a misleading impression.
   2. Publishing or disseminating advertising or marketing containing any statement concerning a brand or product that is inconsistent with any statement on its labeling.
   3. Publishing or disseminating advertising or marketing containing any statement, design, device, or representation which tends to create the impression that the cannabis originated in a particular place or region, unless the label of the advertised product bears an appellation of origin, and such appellation of origin appears in the advertisement.
   4. Advertising or marketing on a billboard or similar advertising device located on an Interstate Highway or on a State Highway which crosses the California border.
   5. Advertising or marketing cannabis or cannabis products in a manner intended to encourage persons under 21 years of age to consume cannabis or cannabis products.
   6. Publishing or disseminating advertising or marketing that is attractive to children.
   7. Advertising or marketing cannabis or cannabis products on an advertising sign within 1,000 feet of a day care center, school providing instruction in kindergarten or any grades 1 to 12, inclusive, playground, or youth center.
   8. Publishing or disseminating advertising or marketing while the licensee’s license is suspended.

(BPC § 26152)

1. Prohibits a cannabis licensee from including on the label of any cannabis or cannabis product or publishing or disseminating advertising or marketing containing any health-related statement that is untrue in any particular manner or tends to create a misleading impression as to the effects on health of cannabis consumption. (BPC § 26154)

THIS BILL:

1. Requires the DCC to reevaluate its existing regulations, on or before July 1, 2025, to determine whether any additional warnings are necessary to reflect evolving science, and requires the DCC to adopt regulations for cannabis and cannabis product labels or inserts reflecting the evolving science regarding the risks that cannabis use may cause consumers.
2. Subsequently requires the DCC to again reevaluate its regulations on or before January 1, 2030 and then every five years thereafter to further determine whether requirements imposed in the DCC’s regulations reflect the state of the evolving science on cannabis health effects and on effective communication of health warnings.
3. Authorizes and recommends that the DCC use research funded through the Cannabis Tax Fund that evaluates labeling and packaging, and authorizes the DCC to commission new research to assess the efficacy of warning label requirements and approaches to identify future best practices for cannabis health warning labels that are most effective in changing knowledge and intent to consume or consumption.
4. Allows for cannabis or cannabis products manufactured before July 1, 2025 to continue to be sold until July 1, 2026, without meeting new labeling requirements imposed by the DCC on or before July 1, 2025.
5. Subsequently allows cannabis or cannabis products to continue to be sold for up to 12 months following the effective date of new labeling regulations adopted by the DCC, if they comply with the regulations in effect prior to the enactment of the new regulations.
6. Requires the DCC to consult with the CDPH on or before January 1, 2025 to create and publish a single-page flat or folded brochure that includes steps for safer use of cannabis.
7. Provides that the DCC’s informational brochure shall include, at a minimum, the following:
   1. Information about the pharmacological effects of cannabis use.
   2. Information on the implications and risks associated with high potency cannabis products; the potential for THC to exacerbate certain mental health conditions; cannabis use by minors; and cannabis use by pregnant and breastfeeding persons.
8. Requires the brochure to be printed in a type size not smaller than 12 points. Printing and distribution shall be the responsibility of the licensee.
9. Requires the DCC to either recertify the information on the brochure or provide updated language that accurately reflects the state of the evolving science on cannabis health effects and safer use of cannabis every five years beginning January 1, 2030.
10. Beginning March 1, 2025, requires a retailer or microbusiness selling, or person delivering, cannabis goods to a consumer to prominently display the brochure, including printed copies, at the point of sale or final delivery in person and online at time of online purchases, and to offer each new consumer a copy of the brochure at the time of first purchase or delivery.

FISCAL EFFECT: According to the Senate Committee on Appropriations, the DCC reports costs of approximately $610,000 in the first year of implementation and $586,000 ongoing, and the CDPH reports ongoing annual costs of approximately $94,000 to support the collaboration with the DCC on the brochure and review existing research with the advisory committee.

COMMENTS:

Purpose. This bill is sponsored by the California Cannabis Industry Association. According to the author:

“Safe cannabis use is essential to promote responsible and informed consumption. To achieve this SB 540 requires the DCC and the DPH to develop an informational brochure that will serve as a valuable resource for individuals and new customers interested in cannabis use. The brochure will provide crucial information on consumption and outline responsible use practices, such as avoiding cannabis use during pregnancy. Overall, an informational brochure on safe cannabis use will empower individuals with knowledge, promoting responsible consumption and minimizing potential harm.”

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 CDPH—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.

Labeling Requirements for Cannabis Packaging. Language enacted as part of the original MCRSA legislation in 2015 set strict standards for cannabis packaging and labeling, including inclusion of specific cautionary statements. Proposition 64 then recodified nearly identical language for its own mandated label content, with a handful of minor variations reconciled when SB 94 merged MCRSA and the AUMA into MAUCRSA. Under current law, all cannabis product labels must display the following statement in a clear and legible fashion, in bold print:

GOVERNMENT WARNING: THIS PRODUCT CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS PRODUCTS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. THE INTOXICATING EFFECTS OF CANNABIS PRODUCTS MAY BE DELAYED UP TO TWO HOURS. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS PRODUCTS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.

In addition to the above statement, MAUCRSA requires certain factual information about the product’s ingredients and contents to be listed, as well as information associated with a unique identifier for purposes of identifying and tracking the cannabis goods. MAUCRSA also authorizes the DCC to set its own additional requirements for cannabis packaging and labeling. Regulations promulgated by the DCC and its predecessors have set additional labeling standards. For example, all required labels must be “unobstructed and conspicuous” in at least 6 point type size, and must be written in English. Additional language is required for specific product types.

MAUCRSA explicitly prohibit the packages and labels for cannabis goods from being made to be attractive to children. The DCC’s regulations specifically prohibit cannabis goods labeling from containing content that is, or designed to be, attractive to individuals under the age of 21 using the same criteria as provided for advertising restrictions. This includes a ban on labeling that uses depictions of minors, cartoons, candy packaging, or other images popularly used to advertise to children.

The DCC’s regulations also prohibit the labeling on cannabis goods from containing statements that are potentially deceptive or false. Specifically, current regulations prohibit “any health-related statement that is untrue or misleading” and require the following:

“Any health-related statement must be supported by the totality of publicly available scientific evidence (including evidence from well-designed studies conducted in a manner which is consistent with generally recognized scientific procedures and principles), and for which there is significant scientific agreement among experts qualified by scientific training and experience to evaluate such claims.”

This bill would require the DCC to reevaluate its existing regulations to determine whether to establish new labeling requirements on packaging for cannabis goods. In addition to all the information currently required for cannabis labels, including the warning statement mandated under MAUCRSA, this bill would require the DCC to consider adding additional warnings that are necessary to reflect evolving science regarding the risks that cannabis use may cause consumers. The first reevaluation would be required to take place on or before July 1, 2025, and additional reevaluations would be required every five years beginning January 1, 2030.

Consumer Education. The DCC and its predecessors have engaged in public awareness campaigns to improve consumer safety, combat the illicit market, and encourage responsible consumption. In June of 2019, the Bureau of Cannabis Control launched a statewide public information campaign called “Get #weedwise.” This campaign encouraged cannabis users to purchase products only from the legal market and warn against the health hazards associated with illicit cannabis. The state’s public awareness campaigns have included billboards encouraging consumers to verify the legal status of cannabis sellers, social media graphics containing information about safe consumption practices, and educational YouTube videos about the importance of accurate labeling and how to verify a retailer’s license using a QR code.

In addition, the DCC’s website features a number of consumer guides to promote safe cannabis consumption. One conspicuously linked webpage titled “Responsible cannabis use” contains detailed information about “How to use cannabis safely.” The website specifically encourages consumers to “Be aware how edibles affect you, “Be cautious when inhaling cannabis,” “Do not use cannabis while pregnant or breastfeeding,” and “Do not get behind the wheel.” The DCC’s website hosts additional information about safely storing cannabis at home and keeping children and pets safe.

This bill would require the DCC to create an educational brochure, in consultation with the CDPH, aimed at further educating consumers about the health effects and risks of cannabis use. The brochure would be required to include information about the pharmacological effects of cannabis use, as well as information about the implications and risks associated with, but not limited to, all of the following:

• High potency cannabis products.
  
• The potential for THC to exacerbate certain mental health conditions.
  
• Cannabis use by minors.
  
• Cannabis use by pregnant and breastfeeding persons.

Under the bill, the DCC would be required to create and post the brochure no later than January 1, 2025. The DCC would then be required to either recertify the information in the brochure or provide updated language that accurately reflects the state of the evolving science on cannabis health effects and safer use of cannabis. The bill requires that the review of the brochure be done in conjunction with the review required for the DCC’s cannabis product labeling regulations.

Beginning March 1, 2025, this bill would require every retailer or microbusiness engaged in selling or delivering cannabis goods to prominently display the brochure, including printed copies, at the point of sale or final delivery in person, and online at time of online purchase. Responsibility for printing and distributing the pamphlet would be placed on the licensee. Cannabis sellers would be further required to offer each new consumer a copy of the brochure at the time of first purchase or delivery.

Current Related Legislation.

AB 1207 (Irwin) would place restrictions on the advertising, marketing, packaging, and labeling of cannabis and cannabis products and ban the use of flavors in cannabis or cannabis products intended for use by inhalation or combustion. This bill is pending in the Senate Committee on Business, Professions, and Economic Development.

Prior Related Legislation.

SB 1097 (Pan) from 2022 would have required the DCC to adopt regulations to require additional cannabis and cannabis product packaging warning labels about mental health risks of cannabis use. This bill died on the Assembly Floor.

AB 1894 (L. Rivas, Chapter 390, Statutes of 2022) places additional requirements and restrictions for the packages and labels of integrated cannabis vaporizers.

AB 273 (Irwin) from 2021 would have placed numerous restrictions on the content of outdoor advertising by cannabis businesses and required the suspension of the license of any licensee who violates those restrictions for one year. This bill failed passage in this committee.

AB 1417 (B. Rubio) from 2019 would have established civil penalties for violating specified cannabis marketing or advertising requirements, and would have specified disbursement procedures for civil penalties. This bill was held under submission on the Senate Appropriations Committee’s suspense file.

SB 94 (Committee on Budget and Fiscal Review, Chapter 27, Statutes of 2017) combined AUMA and MCRSA into a unified system for the regulation of cannabis, MAUCRSA.

ARGUMENTS IN SUPPORT:

The California Cannabis Industry Association (CCIA) is sponsoring this bill. The CCIA writes jointly with the Cannabis Distribution Association and the California Cannabis Manufacturers Association: “While we are proud of collective efforts to support the integrity of the legal cannabis market, concerns persist over whether the existing labeling requirements for cannabis are sufficient to inform consumers and deter youth access. Evolving science on the risks and benefits of cannabis also necessitates an ongoing review of existing labeling requirements and the development of other educational materials.” The letter goes on to state: “SB 540 represents the legal cannabis industry's solution to concerns that existing consumer education may still be lacking and compliments policy discussions currently underway within the DCC and the DPH, by creating a process that guarantees consumers in all licensed jurisdictions will have access to up-to-date, critical safety information and educational materials. It will also ensure that licensed cannabis products contain uniform and consistent information, while also allowing regulators to strengthen and refine laws according to science and ongoing research.”

ARGUMENTS IN OPPOSITION:

None on file.

POLICY ISSUES:

As drafted, this bill would allow for cannabis goods to continue to be sold for up to one year following the effective date of any new labeling requirement regulations adopted by the DCC without having to comply with those regulations. While in most cases this timeline is likely reasonable and appropriate, there may be instances where urgent circumstances justify a need for products to come into compliance more quickly. The author may wish to consider amending the bill to allow for a shorter grace period to be prescribed by the DCC as part of its rulemaking.

AMENDMENTS:

To allow the DCC to provide for a shorter grace period for cannabis products to come into compliance with new labeling requirement regulations, amend subdivision (d) in Section 2 of the bill as follows:

(d) Cannabis or cannabis products manufactured before January 1, 2030, and every year thereafter when new labeling requirements are imposed by the regulations adopted pursuant to subdivision (a) may be sold for up to 12 months from the effective date of those regulations, or for a shorter time prescribed by the department in those regulations, if they comply with the regulations in effect prior to the enactment of the new regulations.

REGISTERED SUPPORT:

California Cannabis Industry Association (Sponsor)
Big Sur Farmers Association
California Academy of Family Physicians
California Cannabis Manufacturers Association
California NORML
Cannabis Distribution Association
Humboldt County Growers Alliance
Kiva Confections
Lompoc Valley Cannabis Association, Santa Barbara County
Mendocino Cannabis Alliance
Nevada County Cannabis Alliance
Origins Council
The Parent Company
Trinity County Agriculture Alliance
Weedmaps

REGISTERED OPPOSITION:

None on file.

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

 THIRD READING  

Bill No: SB 540

Author: Laird (D)

Introduced: 2/14/23

Vote: 21

SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 13-0, 4/10/23

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

SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/18/23

AYES: Portantino, Jones, Ashby, Bradford, Seyarto, Wahab, Wiener

SUBJECT: Cannabis and cannabis products: health warnings

SOURCE: California Cannabis Industry Association

DIGEST:

This bill requires the Department of Cannabis Control (DCC), on or before January 1, 2025, to create a brochure with information about steps for the safer use of cannabis; permits the DCC to reevaluate regulations pertaining to labeling and packaging requirements for cannabis and cannabis products before July 1, 2025; and, requires the DCC to reevaluate regulations for labeling and packaging requirements on or before January 1, 2030, and every five years thereafter, as specified.

ANALYSIS:

Existing law:

1. Establishes the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) to regulate the cultivation, distribution, transport, storage, manufacturing, processing, and sale of both medicinal cannabis and adult-use cannabis. (Business and Professions Code (BPC) § 26000)
2. Requires all cannabis and cannabis products labels and inserts to include specified information displayed in clear and legible in accordance with requirements, including font size, prescribed by the DCC. Requires the following statements must also be in bold print:

“GOVERNMENT WARNING: THIS PACKAGE CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.” (BPC § 26120 (c)(1)(A))

1. Requires the following statement in bold print for cannabis products:

“GOVERNMENT WARNING: THIS PRODUCT CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS PRODUCTS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. THE INTOXICATING EFFECTS OF CANNABIS PRODUCTS MAY BE DELAYED UP TO TWO HOURS. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS PRODUCTS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.” (BPC § 26120(c)(1)B))

1. Prohibits a licensee from including on the label of any cannabis or cannabis product, publish, or disseminate advertising or marketing containing and health-related statement this is untrue in any particular manner or tends to create a misleading impression as to the effects on health of cannabis consumption. (BPC § 26154)

Existing regulations:

1. Requires the label for a manufactured cannabis product to include a primary panel, containing specified information including the identity of the product, the universal symbol, and the net weight or volume in a type size no smaller than six-point and proportional to the size of the primary panel and container. (Title 4 California Code of Regulations (CCR) § 17404)
2. Requires, in addition to the label requirements in 1) above, the primary panel of an edible cannabis product to include the words cannabis-infused or “cannabis infused” immediately above the identity of the product in bold type and a text size larger than the text size used for the identity of the product. (4 CCR § 17405)

This bill:

1. Requires the DCC in consultation with the California Department of Public Health (CDPH) to create and post for public use, a single page-flat or folded brochure that includes steps for safer use of cannabis including specified information. Requires the DCC to recertify the information, beginning January 1, 2030, and every five years after, as specified.
2. Requires a retailer or microbusiness selling, or a person delivering cannabis or cannabis products to a consumer, to display the brochure at the point of sale in-person or online and make available to a consumer when requested, a copy of the brochure at the time of first purchase or delivery.
3. Permits the DCC on or before July 1, 2025 to re-evaluate regulations related to the packaging and label requirements for cannabis products, to determine whether any additional warnings are necessary to reflect evolving science, and adopt regulations for cannabis and cannabis product labels or inserts reflecting the evolving science regarding the risks that cannabis use may cause consumers. Requires the DCC, on or before January 1, 2030, and every five years thereafter, to re-evaluate the regulations related to the packaging and label requirements to determine whether requirements imposed in those regulations reflect the state of the evolving science on cannabis health effects and on effective communication of health warnings.
4. States that the Legislature recommends for DCC to use, and further authorizes the DCC to use research currently required to be funded by cannabis taxes, which evaluate labeling and packaging and permits DCC to commission new research to assess the efficacy of the warnings and approaches to identify future best practices for cannabis health warning labels that are most effective in changing knowledge and intent to consume or consumption.
5. Requires the DCC in consultation with the CDPH to convene as needed an advisory committee for the sole purpose of considering the accuracy and relevance of the current warning label and insert requirements, reviewing possible updates and amendments and making recommendations to the DCC about updates and amendments.
6. Permits cannabis or cannabis products manufactured before July 1, 2025 to be sold before July 1, 2026 without meeting labeling requirements.

Background

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 addition to the robust licensing, transporting, testing, cultivating and enforcement provisions of MACURSA, there are very strict labeling and advertising requirements for cannabis and cannabis products.

MAUCRSA explicitly prohibits packages and labels for cannabis goods from being attractive to children. This includes a ban on labeling that uses depictions of minors, cartoons, candy packaging, or other images popularly used to advertise to children. The DCC’s regulations also prohibit the labeling from containing statements that are potentially deceptive or false. Specifically, current regulations prohibit “any health-related statement that is untrue or misleading.” This bill would permit the DCC to review the current regulations pertaining to labeling and packaging requirements (BPC § 26120) and determine if any additional warnings are necessary, based on “evolving science” and adopt regulations for labels or inserts reflecting that “evolving science”. Nothing prohibits the DCC from doing this now. This bill would permit cannabis or cannabis products manufactured before July 1, 2025 to continue to be sold until July 1, 2026 even if new regulations are required. This is likely to provide licensees time to comply with revised labeling requirements.

Over the past decade, reported cannabis consumption has increased. It is not clear if consumption has increased or legalization has normalized use. Cannabis use during adolescence is particularly concerning due to the impact on the developing brain. As required by Proposition 64, cannabis taxes fund cannabis research at public universities or universities in California. As a condition of receiving funds, the researcher must provide updates every two years, and if appropriate provide recommendations to the Legislature and the Governor. The DCC reports that recommendations and reports will be posted on its website once they are finalized. At one time, the research in the cannabis space was limited; however, with recent legalization in more states, the interest in medicinal use, and concerns about safety, the research into many aspects of cannabis appears to be growing.

Consumer Information and Education. As the state’s principal regulator of cannabis, the DCC and its predecessors have engaged in multiple public awareness campaigns to improve consumer safety, combat the illicit market, and encourage responsible consumption practices. In addition, the DCC’s current website features a number of consumer guides to promote safe cannabis consumption. One conspicuously linked webpage titled “Responsible cannabis use” contains detailed information about “How to use cannabis safely.” The website specifically encourages consumers to “Be aware how edibles affect you, “Be cautious when inhaling cannabis,” “Do not use cannabis while pregnant or breastfeeding,” and “Do not get behind the wheel.” The DCC’s website hosts additional information about safely storing cannabis at home and keeping children and pets safe. It also includes resources for talking to young people about cannabis, and how to recognize if a young person is using cannabis, among other information.

Although the brochure and material required by this bill will be developed by DCC and CDPH, there is not a requirement for CDPH to include the brochure on its website, only the DCC. This bill, as currently drafted, does not mandate any new advertising or labeling requirements for cannabis or cannabis products; however, this bill requires a new single-paged brochure be developed in consultation with the CDPH to include information on the steps for safer use of cannabis.

Comments

California NORML is support if amended and notes concerns including some of the following, the mandate for pamphlet distribution needs to be strengthened, DCC and CDPH be specifically directed to consult with experienced medical cannabis physicians and patient and user groups, in addition to public health experts and the industry, and the list of required information should be improved.

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

According to the Senate Appropriations Committee, DCC reports costs of approximately $610,000 in the first year of implementation and $586,000 annually for workload associated with developing the brochure, research related to new labeling regulations, and advisory committee support functions, including solicitation and tracking of advisory committee membership applications and preparing committee meetings and other materials. CDPH reports ongoing annual costs of approximately $94,000 to support the collaboration with DCC on the brochure and review existing research with the advisory committee.

SUPPORT: (Verified 5/18/23)

California Cannabis Industry Association (source)

California Academy of Family Physicians
Kiva Confections
Lompoc Valley Cannabis Association, Santa Barbara County
Origins Council
The Parent Company
Weedmaps

OPPOSITION: (Verified 5/18/23)

Public Health Institute
Youth Forward

ARGUMENTS IN SUPPORT: Supporters note that SB 540 creates an industry-wide standard providing consumers with critical information and educational materials and ensure that licensed cannabis products contain uniform information that is informative, recognizable, and consistent, while also allowing regulators to strengthen and refine laws according to science and ongoing research.

ARGUMENTS IN OPPOSITION: Opponents are concerned that this bill does not require dispensaries to provide customers with the informational brochure. They say that while SB 540 authorizes DCC to assess whether new health warnings are needed on products, it does not require them to do so, and the advisory committee needs to be science-based.

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

5/20/23 13:00:21

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

SB 540 (Laird) - Cannabis and cannabis products: health warnings

Bill Summary:

SB 540 requires the Department of Cannabis Control (DCC) to create and post for public use a single-page brochure that includes steps for safer cannabis use and periodically reevaluate existing regulations related to cannabis packaging and labeling requirements, as specified.

Fiscal Impact:

• The DCC reports costs of approximately $610,000 in the first year of implementation and $586,000 annually ongoing for three Personnel Years (PYs) for workload associated with developing the brochure, research related to new labeling regulations, and advisory committee support functions, including solicitation and tracking of advisory committee membership applications and preparing committee meetings and other materials (Cannabis Control Fund).
• The California Department of Public Health (CDPH) reports ongoing annual costs of approximately $94,000 to support the collaboration with DCC on the brochure and review existing research with the advisory committee (General Fund).

Background:

Under current law, all cannabis product labels must display the following statement in bold print:

GOVERNMENT WARNING: THIS PRODUCT CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS PRODUCTS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. THE INTOXICATING EFFECTS OF CANNABIS PRODUCTS MAY BE DELAYED UP TO TWO HOURS. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS PRODUCTS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.

In addition to the above statement, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) requires specified information about the product’s ingredients and contents to be listed, as well as information associated with a unique identifier for purposes of tracking the cannabis goods. MAUCRSA also authorizes the DCC to set its own additional requirements for cannabis packaging and labeling. Regulations promulgated by the DCC and its predecessors have set additional labeling standards. For example, all labels must be “unobstructed and conspicuous” in at least 6 point type size, and must be written in English. If the cannabis product is edible, the regulations require specific information about potential allergens in the product, the names of any artificial colorings, and any sugar, carbohydrates, and total fat per serving.

MAUCRSA explicitly prohibit the packages and labels for cannabis goods from being attractive to children. The DCC’s regulations specifically prohibit cannabis goods labeling from containing content that is attractive to individuals under the age of 21 using the same criteria as provided for advertising restrictions. This includes a ban on labeling that uses depictions of minors, cartoons, candy packaging, or other images popularly used to advertise to children.

The DCC’s regulations also prohibit the labeling on cannabis goods from containing statements that are potentially deceptive or false. Specifically, current regulations prohibit “any health-related statement that is untrue or misleading” and require the following:

Any health-related statement must be supported by the totality of publicly available scientific evidence (including evidence from well-designed studies conducted in a manner which is consistent with generally recognized scientific procedures and principles), and for which there is significant scientific agreement among experts qualified by scientific training and experience to evaluate such claims.

Much of the required material that is currently found on the labeling and packaging of cannabis and cannabis products stems from the requirements specified in Prop 64 and regulations further adopted by the DCC. As specified in Business and Professions Code § 26130, the DCC is required to promulgate regulations related to the standards for packaging and labeling requirements for cannabis. However, current law is silent on how often the DCC needs to revise or review those regulations. Although as noted by the DCC, it is continuously monitoring new research and information to determine if regulatory changes are warranted. Any regulatory revisions must go through the regulatory process, which includes public comment opportunities.

Proposed Law:

• Requires the DCC, by January 1, 2025 and in consultation with the CDPH, to create and post for public use a single-page flat or folded brochure that includes steps for safer use of cannabis, including but not limited to the following information:
  • Information about the pharmacological effects of cannabis use.
  • The potential for THC to exacerbate certain mental health conditions.
  • Implications and risks associated with cannabis use by minors.
  • Implications and risks associated with cannabis use by pregnant and breastfeeding persons.
• Specifies that printing and distribution is the responsibility of the licensee, and requires the brochure to be printed in at least 12 point type size.
• By January 1, 2030 and every five years thereafter, requires DCC to recertify the brochure information or provide updated language that reflects the state of the evolving science on cannabis health effects and safer cannabis use.
• Beginning March 1, 2025, requires a cannabis retailer or microbusiness to display the brochure at the point of sale in person or online and make available the brochure upon consumer request at the time of first purchase or delivery.
• Before July 1, 2025, authorizes DCC to reevaluate existing regulations related to cannabis packaging and labeling requirements to determine whether additional warnings are necessary to reflect the evolving science around cannabis use.
• By January 1, 2030 and every five years thereafter, requires DCC to reevaluate cannabis packaging and labeling requirements to reflect the evolving science around cannabis use on health.
• Requires DCC to convene, as needed, an advisory committee to consider the accuracy and relevance of the current warning label and insert requirements, reviewing possible updates and amendments, and making recommendations about updates or amendments.
  • Requires the advisory committee to include specified public universities, county and private public health experts, medical experts, representatives of youth service organizations that specialize in drug issues, and representatives of cannabis retail, non-storefront retail delivery, and microbusiness and manufacturing licensees.
• Provides that cannabis or cannabis products manufactured before July 1, 2025 may be sold by July 1, 2026 without the additional labeling requirements.

Related Legislation:

SB 1097 (Pan, 2022) would have required the DCC, by July 1, 2025, to adopt regulations to require additional cannabis and cannabis product packaging warning labels about mental health risks of cannabis use and to create a brochure about safer cannabis use. SB 1097 died on the Assembly inactive file.

Staff Comments:

The DCC’s cost estimate includes three PYs for one staff at each of the following levels: Associate Governmental Program Analyst, Research Data Specialist II, and Attorney III.

The CDPH’s cost estimate includes 0.5 PYs, and costs would be to the General Fund unless there is funding available from the Cannabis Tax Fund.

-- END --

SENATE COMMITTEE ON

BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT

Senator Richard Roth, Chair

2023 - 2024 Regular

Bill No: Hearing Date: April 10, 2023

Subject:

SUMMARY:

Requires the Department of Cannabis Control (DCC), on or before January 1, 2025, to create a brochure with information about steps for the safer use of cannabis; permits the DCC to reevaluate regulations pertaining to labeling and packaging requirements for cannabis and cannabis products before July 1, 2025; and, requires the DCC to reevaluate regulations for labeling and packaging requirements on or before January 1, 2030, and every five years thereafter, as specified.

Existing law:

State law:

1. Establishes the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) to regulate the cultivation, distribution, transport, storage, manufacturing, processing, and sale of both medicinal cannabis and adult-use cannabis. (Business and Professions Code (BPC) § 26000)
   
2. Establishes the DCC, under the jurisdiction, of the Business, Consumer Services, and Housing Agency, to administer and regulate provisions of MAUCRSA. (BPC § 26010)
   
3. Prohibits a person from engaging in commercial cannabis activity without a state license issued by the DCC, as specified. (BPC § 26037.5)
   
4. Requires the DCC to make and prescribe reasonable rules and regulations as may be necessary to implement, administer, and enforce its duties, which must be consistent with the purpose and intent of the Control, Regulate and Tax Adult Use of Marijuana Act. (BPC § 26013)
5. Requires all cannabis or cannabis products purchased by a customer to be placed in an opaque package prior to leaving a licensed retail premises. (BPC § 26070.1)
6. Requires cannabis and cannabis products to be labeled placed in a tamper-evident, child-resistant and package unique identifier for the purposes of identifying and tracking prior to delivery or sale at a retailer. Requires package must be re-sealable if the product contains more than one serving. (BPC § 26120(a))
7. Prohibits packages and labels from being attractive to children. (BPC § 26120(b))
   
8. Requires all cannabis and cannabis products labels and inserts to include the following information displayed in clear and legible in accordance with requirements, including font size, prescribed by the DCC. Requires the following statements must also be in bold print:

“GOVERNMENT WARNING: THIS PACKAGE CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.” (BPC § 26120 (c)(1)(A))

1. Requires the following statement in bold print for cannabis products:

“GOVERNMENT WARNING: THIS PRODUCT CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS PRODUCTS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. THE INTOXICATING EFFECTS OF CANNABIS PRODUCTS MAY BE DELAYED UP TO TWO HOURS. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS PRODUCTS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.” (BPC § 26120(c)(1)B))

1. Prohibits the package and label of a cannabis cartridge and an integrated cannabis vaporizer from indicating that the cartridge or vaporizer is disposable nor imply that it may be thrown in the trash or recycling streams as part of the packaging and labeling requirements beginning January July 1, 2024. (BPC 26120(f))
   
2. Requires the DCC to promulgate regulations governing the licensing of cannabis manufactures and standards for the manufacturing, packaging, and labeling of all manufactured cannabis products, as specified. (BPC § 26130(a))
   
3. Requires the following for edible cannabis products:
   
4. Not designed to be appealing to children or easily confused with commercially sold candy or foods that do not contain cannabis;
   
5. Produced and sold with a standardized concentration of cannabinoids not to exceed 10 milligrams tetrahydrocannabinol (THC) per serving;
   
6. Delineated or scored into standardized serving sizes if the cannabis product contains more than one serving and is an edible cannabis products is solid form;
   
7. Homogenized to ensure uniform disbursement of cannabinoids throughout the product;
   
8. Manufactured and sold under sanitation standards established by the DCC that are similar to the standards for preparation, storage, handling and sale of food products;
   
9. Provided to customers with sufficient information to enable the informed consumption of the product, including the potential effects of the cannabis products and directions as to how to consume the cannabis product as necessary; and,
   
10. Marked with a universal symbol, as determined by the DCC through regulation. (BPC § 26130(d))
    
11. Requires all advertisements and marketing to accurately reflect and legibly identify the licensee responsible for its content by adding, at a minimum, the licensee’s number. (BPC § 21651(a)(1))
    
12. Prohibits a licensee from including on the label of any cannabis or cannabis product, publish, or disseminate advertising or marketing containing and health-related statement this is untrue in any particular manner or tends to create a misleading impression as to the effects on health of cannabis consumption. (BPC § 26154)
    
13. Requires the Controller to disburse the sum of $10,000,000 to a public university or universities in California annually beginning with the 2018–19 fiscal year until the 2028–29 fiscal year to research and evaluate the implementation and effect of the Control, Regulate and Tax Adult Use of Marijuana Act, and if appropriate, make recommendations to the Legislature and Governor regarding possible amendments to the Control, Regulate and Tax Adult Use of Marijuana Act.) Requires the recipients of these funds shall publish reports on their findings at a minimum of every two years and shall make the reports available to the public. States the Department of Cannabis Control shall select the universities to be funded. (Revenue and Taxation Code (RTC) § 34019(b))
14. Requires the DCC to select the universities to receive funds, and the research is to include but not be limited to:
    
15. Impacts on public health, including health costs associated with cannabis use, as well as whether cannabis use is associated with an increase or decrease in use of alcohol or other drugs;
    
16. Impact of treatment for maladaptive cannabis use and the effectiveness of different treatment programs;
    
17. Public safety issues related to cannabis use, including studying the effectiveness of the packaging and labeling requirements and advertising and marketing restrictions contained in the act at preventing underage access to and use of cannabis and cannabis products, and studying the health-related effects among users of varying potency levels of cannabis and cannabis products;
    
18. Cannabis use rates, maladaptive use rates for adults and youth, and diagnosis rates of cannabis-related substance use disorders;
    
19. Cannabis market prices, illicit market prices, tax structures and rates, including an evaluation of how to best tax cannabis based on potency, and the structure and function of licensed cannabis businesses;
    
20. Whether additional protections are needed to prevent unlawful monopolies or anticompetitive behavior from occurring in the adult-use cannabis industry and, if so, recommendations as to the most effective measures for preventing such behavior;
    
21. Economic impacts in the private and public sectors, including, but not necessarily limited to, job creation, workplace safety, revenues, taxes generated for state and local budgets, and criminal justice impacts, including, but not necessarily limited to, impacts on law enforcement and public resources, short- and long-term consequences of involvement in the criminal justice system, and state and local government agency administrative costs and revenue;
    
22. Whether the regulatory agencies tasked with implementing and enforcing the Control, Regulate and Tax Adult Use of Marijuana Act are doing so consistent with the purposes of the act, and whether different agencies might do so more effectively;
    
23. Environmental issues related to cannabis production and the criminal prohibition of cannabis production;
    
24. Geographic location, structure, and function of licensed cannabis businesses, and demographic data, including race, ethnicity, and gender, of license-holders, and,
    
25. Outcomes achieved by the changes in criminal penalties made under the Control, Regulate and Tax Adult Use of Marijuana Act for cannabis-related offenses, and the outcomes of the juvenile justice system, in particular, probation-based treatments and the frequency of up-charging illegal possession of cannabis or cannabis products to a more serious offense. (RTC 34019(b))

Existing regulations:

1. Requires any information on a cannabis label to be written in English, unobstructed and conspicuous so that the consumer can read it. (Title 4 California Code of Regulations (CCR) § 17402(a)(b))
   
2. Requires the label for a manufactured cannabis product to include a primary panel which includes the following information in a type size no smaller than 6 point and proportional to the size of the primary panel and container:
   
3. The identity of the product in text size proportional to the most printed matter on the panel;
   
4. The universal symbol;
   
5. The net weight or volume of the contents of the package, listed in both metric and U.S. customary units. (4 CCR § 17404)
   
6. Requires, in addition to the label requirements in 2) above, the primary panel of an edible cannabis product to include the words cannabis-infused or “cannabis infused” immediately above the identity of the product in bold type and a text size larger than the text size used for the identity of the product. (4 CCR § 17405)
   
7. Requires the label for a manufactured cannabis product to include an information panel including the following:
   
8. The name of the licensed manufacturer that manufactured the cannabis product and the manufacturer’s contact number or website address;
   
9. The date the cannabis product was packaged for retail sale;
   
10. The following statement:
    

“GOVERNMENT WARNING: THIS PRODUCT CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS PRODUCTS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. THE INTOXICATING EFFECTS OF CANNABIS PRODUCTS MAY BE DELAYED UP TO TWO HOURS. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS PRODUCTS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION;”

1. The statement FOR MEDICAL USE ONLY if package contains an amount of THC exceeding levels for adult use cannabis:
   
2. A list of product ingredients, as specified;
   
3. For products that contain an ingredient, flavoring, coloring, or an incidental additive that bears or contains a major food allergen, a list of the applicable food allergens;
   
4. The names of any artificial colorings contained in the product;
   
5. For edible cannabis products, the amount, in grams or milligrams of sodium, sugar, carbohydrates and total fat per serving;
   
6. Instructions for use;
   
7. The UID;
   
8. The batch or lot number; and,
   
9. The statement “keep refrigerated” or “refrigerate after opening” as applicable. (4 CCR § 17406)
   
10. Requires each package for retail sale of cannabis goods to be labeled with the cannabinoid on either the primary panel or an informational panel. For manufactured products, cannabinoid contents may be included on the label prior to release to a distributor or it may be added to the label at the distribution premises after issuance of a regulatory compliance test Certificate of Analysis for the batch, as specified. (4 CCR § 17407(a))

This bill:

1. Requires the DCC in consultation with the California Department of Public Health (CDPH) to create and post for public use, a single page-flat or folded brochure that includes steps for safer use of cannabis including, but not limited to, all of the following information:
   
2. Information about the pharmacological effects of cannabis use;
   
3. The potential for THC to exacerbate certain mental health conditions;
   
4. Implications and risks associated with cannabis use by minors; and,
   
5. Implications and risks associated with cannabis use by pregnant and breastfeeding persons.
   
6. Requires the DCC to recertify the information, beginning January 1, 2030, and every five years after, as specified.
   
7. Requires a retailer or microbusiness selling, or a person delivering cannabis or cannabis products to a consumer, to display the brochure at the point of sale in-person or online and make available to a consumer when requested, a copy of the brochure at the time of first purchase or delivery.
   
8. Authorities the DCC on or before July 1, 2025 to re-evaluate regulations related to the packaging and label requirements for cannabis products, to determine whether any additional warnings are necessary to reflect evolving science, and adopt regulations for cannabis and cannabis product labels or inserts reflecting the evolving science regarding the risks that cannabis use may cause consumers.
   
9. Requires the DCC, on or before January 1, 2030, and every five years thereafter, to re-evaluate the regulations related to the packaging and label requirements to determine whether requirements imposed in those regulations reflect the state of the evolving science on cannabis health effects and on effective communication of health warnings.
   
10. States that the Legislature recommends for DCC to use, and further authorizes the DCC to use research currently required to be funded by cannabis taxes, which evaluate labeling and packaging and permits DCC to commission new research to assess the efficacy of the warnings and approaches to identify future best practices for cannabis health warning labels that are most effective in changing knowledge and intent to consume or consumption.
    
11. Requires the DCC in consultation with the CDPH to convene as needed an advisory committee for the sole purpose of considering the accuracy and relevance of the current warning label and insert requirements, reviewing possible updates and amendments and making recommendations to the DCC about updates and amendments.
    
12. Requires the advisory committee in 7) above to include public universities, as specified, county and private public health experts, medical experts, representatives of youth service organizations that specialize in drug issues, and representatives of cannabis retail, non-storefront retail delivery, microbusiness, and manufacturing licensees.
    
13. Permits cannabis or cannabis products manufactured before July 1, 2025 to be sold before July 1, 2026 without meeting labeling requirements as specified in 4) above.

FISCAL EFFECT:

Unknown. This bill is keyed fiscal by Legislative Counsel.

COMMENTS:

1. Purpose. This bill seeks to: 1) require the development of a brochure or information page related to the safe use of cannabis and make that brochure available to consumers; and 2) require the DCC, in consultation with DPH and a newly created advisory body, to review and update regulations related to current packaging and labeling requirements as necessary to reflect evolving science.

The California Cannabis Industry Association is the sponsor of this bill. According to the author, “The DCC and its predecessor, the Bureau of Cannabis Control, as well as the Department of Public Health, have engaged in multiple public awareness campaigns to improve consumer safety, combat the illicit market, and encourage responsible consumption… Despite these investments, concerns persist over whether the existing labeling requirements for cannabis are sufficient to inform consumers and deter consumption by minors.

Additionally, some argue that evolving science on the risks and benefits of cannabis necessitates an ongoing review of existing labeling requirements and the development of other educational materials. Lastly, some local jurisdictions, as a condition of approving commercial cannabis retail, require the development of materials to better educate and inform consumers.”

1. Background.

Cannabis Regulatory Background. In 1996, California first legalized medicinal cannabis via Proposition 215, also known as the Compassionate Use Act. Proposition 215 protected qualified patients and primary caregivers from prosecution related to the possession and cultivation of cannabis for medicinal purposes. In 2003, the Legislature authorized the formation of medical marijuana cooperatives—nonprofit organizations that cultivate and distribute marijuana for medical uses to their members through dispensaries.

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); 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 2020, Governor Newsom proposed consolidation of the three original licensing and regulatory programs within separate state agencies to form a single department with a goal of streamlining and simplifying access to licensing and regulatory oversight of cannabis. In 2021, DCC was established with licensing, regulatory and enforcement authority.

In addition to the robust licensing, transporting, testing, cultivating and enforcement provisions of MACURSA, there are very strict labeling and advertising requirements for cannabis and cannabis products. This bill would require the DCC, in consultation with the CDPH, to create a brochure available to the consumer at the time of sale. The brochure must contain information about the safer use of cannabis, and be displayed at the point of sale either in person or online. The brochure is to be accessible on the DCC’s website. Presumably, retailers will download the document from the DCC’s website and make it available to a consumer upon request. Any printing costs associated with providing the brochure to the consumer will be the responsibility of the licensee. Providing this newly required brochure will not replace any of the current labeling and packaging requirements for cannabis and cannabis products. This brochure must include information related to steps for safer use of cannabis, including information on the pharmacological effects of cannabis use, the potential for THC to exacerbate certain mental health conditions, and implications for use by pregnant and breastfeeding women. This bill additionally provides a one-year delayed implementation date for development of the brochure and would not require a retailer or microbusiness or a person delivering cannabis to provide the brochure until after March 1, 2025. The bill would require the DCC along with CDPH to review the material in the brochure and make any updates to the information no later than January 1, 2030, and every five years after that. If there is no change in the information, there is no requirement for the information to be updated.

Labeling Requirements for Cannabis Packaging. Language enacted as part of the original MCRSA legislation in 2015 set strict standards for cannabis packaging and labeling, including specific cautionary statements. Proposition 64 then codified nearly identical language for its own mandated label content, with a handful of minor variations reconciled when SB 94 merged MCRSA and the AUMA into MAUCRSA. Under current law, all cannabis product labels must display the following statement in bold print:

GOVERNMENT WARNING: THIS PRODUCT CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS PRODUCTS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. THE INTOXICATING EFFECTS OF CANNABIS PRODUCTS MAY BE DELAYED UP TO TWO HOURS. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS PRODUCTS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.

In addition to the above statement, MAUCRSA requires specified information about the product’s ingredients and contents to be listed, as well as information associated with a unique identifier for purposes of tracking the cannabis goods. MAUCRSA also authorizes the DCC to set its own additional requirements for cannabis packaging and labeling. Regulations promulgated by the DCC and its predecessors have set additional labeling standards. For example, all labels must be “unobstructed and conspicuous” in at least 6 point type size, and must be written in English. If the cannabis product is edible, the regulations require specific information about potential allergens in the product, the names of any artificial colorings, and any sugar, carbohydrates, and total fat per serving.

MAUCRSA explicitly prohibit the packages and labels for cannabis goods from being attractive to children. The DCC’s regulations specifically prohibit cannabis goods labeling from containing content that is attractive to individuals under the age of 21 using the same criteria as provided for advertising restrictions. This includes a ban on labeling that uses depictions of minors, cartoons, candy packaging, or other images popularly used to advertise to children.

The DCC’s regulations also prohibit the labeling on cannabis goods from containing statements that are potentially deceptive or false. Specifically, current regulations prohibit “any health-related statement that is untrue or misleading” and require the following:

“Any health-related statement must be supported by the totality of publicly available scientific evidence (including evidence from well-designed studies conducted in a manner which is consistent with generally recognized scientific procedures and principles), and for which there is significant scientific agreement among experts qualified by scientific training and experience to evaluate such claims.”

Much of the required material that is currently found on the labeling and packaging of cannabis and cannabis products stems from the requirements specified in Prop 64 and regulations further adopted by the DCC. As specified in BPC § 26130, the DCC is required to promulgate regulations related to the standards for packaging and labeling requirements for cannabis. However, current law is silent on how often the DCC needs to revise or review those regulations. Although as noted by the DCC, it is continuously monitoring new research and information to determine if regulatory changes are warranted. Any regulatory revisions must go through the regulatory process, which includes public comment opportunities.

This bill would permit the DCC to review the current regulations pertaining to labeling and packaging requirements (BPC § 26120) and determine if any additional warnings are necessary, based on “evolving science” and adopt regulations for labels or inserts reflecting that “evolving science”. There are no prohibitions in currently in existing law that would prohibit the DCC from doing this now. This bill would permit cannabis or cannabis products manufactured before July 1, 2025 to continue to be sold until July 1, 2026 even if new regulations are required. This is likely to provide licensees time to comply with revised labeling requirements.

Research. Over the past decade, reported cannabis consumption has increased. It is not clear if consumption has increased or legalization has normalized use. Cannabis use during adolescence is particularly concerning due to the impact on the developing brain. Due to only recently legalizing recreational cannabis in California (and the other 18 states), there are limited longitudinal studies. As required by Proposition 64, cannabis taxes fund cannabis research at public universities or universities in California. As a condition of receiving funds, the researcher must provide updates every two years, and if appropriate provide recommendations to the Legislature and the Governor. In 2020, the DCC awarded nearly $30 million in research grants. Notably, the University of California, San Diego was issued $987,738 to fund their research on “Evaluating the impacts of packaging and labeling on cannabis edible use among youth.”

The DCC reports that recommendations and reports will be posted on its website once they are finalized. At one time, the research in the cannabis space was limited; however, with recent legalization in more states, the interest in medicinal use, and concerns about safety, the research into many aspects of cannabis appears to be growing.

This bill further requires the DCC, in consultation with CDPH, before January 1, 2030, and every five years thereafter to reevaluate any labeling and packaging regulations to determine whether those requirements reflect the state of “evolving science”. In order for the DCC to undertake the regulatory review as proposed by this bill, the DCC could use research funds currently authorized for specific research in RTC § 34019(b) and through Prop 64.

This bill would require the DCC to convene, as needed, an advisory committee for the sole purpose of considering the accuracy and relevance of the current warning label and insert requirements and make recommendations to the DCC about updates or amendments. The committee must include members of academic research institutions that receive monies as designated in the RTC, city, county, and private health expertise, medical experts, representatives of youth organizations that specialize in drug issues, and representatives of the cannabis industry.

Consumer Information and Education. As the state’s principal regulator of cannabis, the DCC and its predecessors have engaged in multiple public awareness campaigns to improve consumer safety, combat the illicit market, and encourage responsible consumption practices. In June of 2019, the Bureau of Cannabis Control launched a statewide public information campaign called “Get #weedwise.” This campaign sought to encourage cannabis users to purchase products only from the legal market and warn against the health hazards associated with illicit cannabis. The state’s public awareness campaigns have included billboards encouraging consumers to verify the legal status of cannabis sellers, social media graphics containing information about safe consumption practices, and educational YouTube videos about the importance of accurate labeling and how to verify a retailer’s license using a QR code.

In addition, the DCC’s current website features a number of consumer guides to promote safe cannabis consumption. One conspicuously linked webpage titled “Responsible cannabis use” contains detailed information about “How to use cannabis safely.” The website specifically encourages consumers to “Be aware how edibles affect you, “Be cautious when inhaling cannabis,” “Do not use cannabis while pregnant or breastfeeding,” and “Do not get behind the wheel.” The DCC’s website hosts additional information about safely storing cannabis at home and keeping children and pets safe. It also includes resources for talking to young people about cannabis, and how to recognize if a young person is using cannabis, among other information.

In addition to information on the DCC’s website, in February of 2023, the CDPH launched the “Youth Cannabis Prevention Initiative”. According to the CDPH website, that initiative includes the California Cannabis Surveillance System (CCSS) and the Cannabis Education and Youth Prevention Program (CEYPP). “The CCSS is a public health data collection and analysis system for youth and adult cannabis use, legal, social, and environmental impacts, and health outcomes. The CEYPP provides health education and prevention to reduce the negative impacts and consequences of cannabis use through state and local partnerships and public awareness campaigns.” Under the specifications of Prop 64, the CDPH receives funding from the Cannabis Tax Fund that funds youth education, prevention, early intervention, treatment, and school retention in California.

At the federal level, the Substance Abuse and Mental Health Services Administration, under the U.S. Department of Health and Human Services has a “Public Messages” section on its website devoted to the “Risks of Marijuana” that includes information on breastfeeding, pregnancy, addiction risks for youth and the public, among others, along with informational videos and additional resource links. Additionally, SAMHSA developed a resource guide for Preventing Marijuana Use Among Youth, which is available on their website.

Additionally, there are a number of local jurisdictions that require some form of an informational brochure regarding the safe use of cannabis and cannabis products be available to consumers as part of their local licensing program.

Although the brochure and material will be developed by DCC and CDPH, there is not a requirement for CDPH to include the brochure on its website, only the DCC.

SB 1097. Last year, this Committee heard and passed SB 1097 (Pan of 2022), which at the time, would have required the DCC, in consultation with the CDPH, by January 1, 2024, to create a single-page document with information about safer cannabis use and dosing that licensed cannabis retailers, delivery services, or microbusiness would disseminate to all consumers. In addition, that bill added additional health warning labeling requirements for cannabis packaging and required specified health warning statements for print or written internet, radio, or television cannabis advertisements. That bill was substantially amended in the Assembly and eliminated the advertising requirements along with the creation of new and additional labeling requirements.

This bill, as currently drafted, does not mandate any new advertising or labeling requirements for cannabis or cannabis products; however, this bill requires a new single-paged brochure be developed in consultation with the CDPH to include information on the steps for safer use of cannabis.

1. Arguments in Support. The California Cannabis Industry Association writes in sponsorship and support: “SB 540 will meet these objectives by creating an industry-wide standard that guarantees consumers in all licensed jurisdictions will have access to critical safety information and educational materials. It will also ensure that licensed cannabis products contain uniform information that is informative, recognizable, and consistent, while also allowing regulators to strengthen and refine laws according to science and ongoing research.

Kiva Confections writes in support and notes, “SB 540 would create an industry-wide standard that guarantees consumers in all licensed jurisdictions will have access to critical safety information and educational materials. It will also ensure that licensed cannabis products contain uniform information that is informative, recognizable, and consistent, while also allowing regulators to strengthen and refine laws according to science and ongoing research.”

The Parent Company writes in support and notes, “SB 540 seeks to accomplish that goal by creating a stakeholder process that brings together an advisory committee every five years, under the aegis of the [DCC] to review existing consumer safety information and make recommendations about revising the warning label requirements that reflect the evolving science on cannabis health effects.”

1. Arguments in Opposition. The Public Health Institute and Youth Forward are opposed unless amended and note the following concerns:

“SB 540 does not actually require retailers to provide any customers with the informational brochure, it could simply be posted online somewhere. Retailer staff are only required to provide the brochure to customers upon request (who would need to be aware of its existence). We recommend that retailers be required to provide the brochure to all customers, or at a minimum all new customers, and that it be required to be visibly available at checkout or delivery for all customers. It is perfectly feasible to make such information available.

While SB 540 authorizes the Department of Cannabis Control to assess whether new health warnings are needed on products, it does not require them to do so. DCC has, in our understanding, had that authority, yet has not prioritized health information in its regulation, even in clear areas of deficiency such as mental health. For this reason, we believe it is essential to require that review and provide a timeframe for its completion, and clearly require the addition of a mental health warning on products.

We recommend that the Department of Cannabis Control be required to partner with the Department of Public Health throughout this process, including the periodic review and updating of the brochure and the updating of the warning label on cannabis products, to complement its expertise in epidemiology and public health communication.

Finally, we believe that an advisory committee on health warnings (Sec 2c) needs to be fully science-based and exempt from conflicts of interest. It should not include representatives of the cannabis industry. We would not have representatives of the tobacco or alcohol industries decide upon what health warnings are needed for their products, and we should not do so for cannabis. The committee should consist of experts in public health, epidemiology, addiction medicine, psychiatry, internal medicine, pediatrics and obstetrics with expertise in the area, and should not include individuals or organizations with a financial interest in cannabis, although as relevant stakeholders they should have the opportunity, together with other stakeholders, to provide input to the deliberations.”

1. Additional Comments from Interested Parties. California NORML writes that it is in support of this bill if it is amended and notes the following: “…The mandate for pamphlet distribution in Section 26070.3 (b) needs to be strengthened…We think it essential that DCC and CDPH be specifically directed to consult with experienced medical cannabis physicians and patient and user groups, in addition to public health experts and the industry…Finally, we think the list of required information should be improved.”
2. Policy Issues for Consideration.

Shall or May? As currently drafted, this bill would authorize, not require, the DCC to reevaluate the current regulations pertaining the labeling and packaging requirements before July 1, 2025, and then requires the DCC to reevaluate regulations on or before January 1, 2030 and then every five years. If, after the initial reevaluation (on or before July 1, 2030), the DCC chooses to evaluate the current regulations, it would be required to adopt regulations if additional warnings are necessary. Should the DCC be required to review the regulations before January 1, 2025 to determine whether any regulation updates are necessary based on the lasted research available, although there is nothing in current law that prohibits them from doing this now? The Author may wish to consider amending the bill to require the DCC to review regulations before January 1, 2025.

Regulations take time-does this bill provide enough time for repackaging and new labels if necessary? If it is determined that regulations pertaining to labeling and packaging standards should be updated, then product labels will need to be modified. However, as currently drafted, this bill is silent on how long industry would have to comply with new labeling requirements and how long product can be sold under old labels, if at all. The Author should work with stakeholders including the DCC to ensure that licensees can easily comply with any required label changes or updates.

Is the brochure the best approach? Both DCC and CDPH’s websites contain important information about cannabis, cannabis products, the regulatory requirements for licensees, information about consumer safety, resources and educational materials, among others. Additionally, DCC is the state regulator of cannabis licensing and enforcement. Instead of providing a brochure that focuses only on the safe use of cannabis, might it be more beneficial for consumers to receive or view a notice or brochure that directs them to the DCC or CDPH’s website? From there, consumers would be able to view all of DCC and CDPH’s cannabis educational tools and find information, links to additional resources, and the proper link to file a complaint. This may help consumers view informational updates in a timelier manner and may provide needed flexibility for the DCC and CDPH to continually revise and update material more efficiently and provide consumers with a greater exposure to important information about cannabis use and California’s robust regulatory oversight.

Should CDPH be required to post the brochure on its website in addition to the DCC? This bill is not unique in that it requires a state agency to create some type of consumer awareness material for consumer protection. This bill requires the DCC to make the brochure available on its website, but does not require the same information be available on the CDPH website?

Advisory Committee Membership. As currently drafted, this bill requires the DCC to appoint and convene an advisory committee to assist in the review of, and make recommendations for any updates need to labeling and packaging requires. Committee participants are to include public universities funded by cannabis tax revenue, county and private health experts, medical experts, representatives of youth service organizations specializing in drug issue, along with cannabis industry licensees. However, could there be other experts who should be participants on the Committee? The Author may wish to consider amending the bill to authorize the DCC to add additional participants to the advisory committee as necessary.

SUPPORT AND OPPOSITION:

Support:

California Cannabis Industry Association (sponsor)

Good Farmers Great Neighbors

Kiva Confections
The Parent Company

Opposition:

Public Health Institute
Youth Forward

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