(1)Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), approved by the voters at the November 8, 2016, statewide general election, regulates the cultivation, distribution, transport, storage, manufacturing, testing, processing, sale, and use of marijuana for nonmedical purposes by people 21 years of age and older. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities.

Existing law requires the Department of Cannabis Control to implement a unique identification program for cannabis and cannabis products and requires the program to include the identification of permitted cannabis plants at a cultivation site during the cultivation period. Existing law requires a unique identifier to be issued for each cannabis plant and to be attached at the base of each plant or as otherwise required by law or regulation.

This bill would instead require the unique identifier to be recorded in a manner as determined by the department by regulation.

(2)AUMA authorizes the Legislature to amend its provisions by a ²/₃ vote of each house if the amendment furthers its purposes and intent.

This bill would declare that its provisions further the purposes and intent of AUMA.

(1)Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), approved by the voters at the November 8, 2016, statewide general election, regulates the cultivation, distribution, transport, storage, manufacturing, testing, processing, sale, and use of marijuana for nonmedical purposes by people 21 years of age and older. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities.

Existing law requires the Department of Cannabis Control to implement a unique identification program for cannabis and cannabis products and requires the program to include the identification of permitted cannabis plants at a cultivation site during the cultivation period. Existing law requires a unique identifier to be issued for each cannabis plant and to be attached at the base of each plant or as otherwise required by law or regulation.

This bill would instead require the unique identifier to be recorded in a manner as determined by the department by regulation.

(2)AUMA authorizes the Legislature to amend its provisions by a ²/₃ vote of each house if the amendment furthers its purposes and intent.

This bill would declare that its provisions further the purposes and intent of AUMA.

(1)Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), approved by the voters at the November 8, 2016, statewide general election, regulates the cultivation, distribution, transport, storage, manufacturing, testing, processing, sale, and use of marijuana for nonmedical purposes by people 21 years of age and older. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities.

Existing law requires the Department of Cannabis Control to implement a unique identification program for cannabis and cannabis products and requires the program to include the identification of permitted cannabis plants at a cultivation site during the cultivation period. Existing law requires a unique identifier to be issued for each cannabis plant and to be attached at the base of each plant or as otherwise required by law or regulation.

This bill would instead require the unique identifier to be attached at the base of each plant, attached in close proximity to each plant, recorded in a manner as determined by the department, or attached in a manner as otherwise required by department by regulation.

(2)AUMA authorizes the Legislature to amend its provisions by a ²/₃ vote of each house if the amendment furthers its purposes and intent.

This bill would declare that its provisions further the purposes and intent of AUMA.

(1)Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), approved by the voters at the November 8, 2016, statewide general election, regulates the cultivation, distribution, transport, storage, manufacturing, testing, processing, sale, and use of marijuana for nonmedical purposes by people 21 years of age and older. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities.

Existing law requires the Department of Cannabis Control to implement a unique identification program for cannabis and cannabis products and requires the program to include the identification of permitted cannabis plants at a cultivation site during the cultivation period. Existing law requires a unique identifier to be issued for each cannabis plant and to be attached at the base of each plant or as otherwise required by law or regulation.

This bill would instead require the unique identifier to be attached to at the base of each plant as required by regulation. plant, attached in close proximity to each plant, as determined by the department, or attached in a manner as otherwise required by regulation.

(2)AUMA authorizes the Legislature to amend by majority vote certain provisions of the act to implement specified substantive provisions, provided that the amendments are consistent with and further the purposes and intent of AUMA. its provisions by a ²/₃ vote of each house if the amendment furthers its purposes and intent.

This bill would state that the Legislature finds and declares that this bill implements substantive provisions of AUMA and is consistent with, and furthers the purposes and intent of, AUMA. declare that its provisions further the purposes and intent of AUMA.

(1)Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), approved by the voters at the November 8, 2016, statewide general election, regulates the cultivation, distribution, transport, storage, manufacturing, testing, processing, sale, and use of marijuana for nonmedical purposes by people 21 years of age and older. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities.

Existing law requires the Department of Cannabis Control to implement a unique identification program for cannabis and cannabis products and requires the program to include the identification of permitted cannabis plants at a cultivation site during the cultivation period. Existing law requires a unique identifier to be issued for each cannabis plant and to be attached at the base of each plant or as otherwise required by law or regulation.

This bill would instead require the unique identifier to be attached to each plant as required by regulation.

(2)AUMA authorizes the Legislature to amend by majority vote certain provisions of the act to implement specified substantive provisions, provided that the amendments are consistent with and further the purposes and intent of AUMA.

This bill would state that the Legislature finds and declares that this bill implements substantive provisions of AUMA and is consistent with, and furthers the purposes and intent of, AUMA.

 UNFINISHED BUSINESS  

Bill No: SB 622

Author: Allen (D), et al.

Amended: 6/15/23

Vote: 27

SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 12-0, 4/24/23

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

NO VOTE RECORDED: Nguyen

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SENATE FLOOR: 37-0, 5/24/23

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

NO VOTE RECORDED: Limón, Nguyen, Seyarto

ASSEMBLY FLOOR: 73-0, 8/24/23 (Consent) - See last page for vote

SUBJECT: Cannabis regulation: plant identification program: unique identifier

SOURCE: CannaCraft, Inc.

DIGEST:

This bill updates the requirement under the Department of Cannabis Control’s (DCC) unique identifier (UI) program that a cannabis plant have a UI attached at the base of each plant and instead requires the UI to be recorder in a manner as determined by the DCC through regulation.

Assembly Amendments

remove the provisions that would have allowed the UI to be placed either at the base of the each plant, in close proximity to each plant, or in a manner otherwise required by regulations and instead require the UI to be recorded only in a manner as determined by the DCC by regulation.

ANALYSIS:

Existing law:

1. Establishes the DCC to regulate cannabis with the sole authority to create, issue, deny, renew, discipline, suspend, or revoke licenses for microbusinesses, transportation, storage unrelated to manufacturing activities, distribution, testing, and sale of cannabis and cannabis products within the state. Requires the DCC to administer the portions of Medical and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) related to and associated with the cultivation of cannabis and with the manufacturing of cannabis products. Delegates to the DCC authority to create, issue, deny, and suspend or revoke cultivation or manufacturing licenses for violations of MAUCRSA. (Business and Professions Code (BPC) §§ 26010, 26012)
2. Requires the DCC to implement a unique identification program for cannabis and cannabis products. (BPC § 26069)
3. Requires the unique identification program to include the identification of permitted cannabis plants at a cultivation site during the cultivation period, and must be issued for each plant. (BPC § 26069(a)(2))
4. Requires the unique identified be attached at the base of each plant or as otherwise specified in regulations. (BPC § 26069(a)(2))

This bill updates the requirement under the DCC’s UI program that a cannabis plant have a UI attached at the base of each plant, and instead requires the UI to be recorded in a manner as determined by the DCC by regulation.

Background

Cannabis Regulations and Cannabis Consumption. Shortly following the passage of Medical Marijuana Regulation and Safety Act (later renamed to the Medical Cannabis Regulation and Safety Act 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 MAUCRSA, the current regulatory structure for both medicinal and adult-use cannabis.

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

The DCC was required to establish a UI program for cannabis and cannabis plants during a cultivation period. As part of that process, each plant is required to be assigned a “Unique identifier” or “UI” which is an alphanumeric code or designation used for reference to a specific plant on a licensed premise and any cannabis or cannabis product derived or manufactured from that plant. The UI was required to be issued for each plant and attached at the base of each plant. The UI is then required to be included into the track and trace system. Information provided to the author, indicated that 43 million plant tags were issued to licensed cultivators and microbusinesses in 2022 for a total cost to the state of $15 million. This bill would provide increased efficiency to DCC operations and allow for updates to the UI program to allow the UI to be recorded in a manner determined by the DCC. This may help reduce the number of plastic tags required and reduce expenditures. Currently, the DCC contracts with METRC to supply the plastic tags for the UI program.

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

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

SUPPORT: (Verified 8/24/23)

CannaCraft, Inc. (source)

Agromin

Autumn Brands

Ban SUP

Big Sur Farmers Association

California Cannabis Industry Association

California NORML

California Product Stewardship Council

Cannabis Connect

Cannabis Distribution Association

Cannadel

Cresco

Eden Enterprises

Endo

Environmental Working Group

Ethical Data Alliance

Garden Society

Gelato

Good Farmers Great Neighbors

Humboldt County Growers Alliance

Kiva Confections

Leef Labs

Lompoc Valley Cannabis Association, Santa Barbara County

Mammoth Distribution

March and Ash

Mendocino Cannabis Alliance

Mercy Wellness

Nabis

National Stewardship Action Council

Nevada County Cannabis Alliance

NorCal Cannabis Company

Origins Council

Pax

Project CBD

Purple Raina

The Parent Company

San Diego & Imperial Counties Cannabis Industry Labor Management Committee

Soma Rosa Farms

Trinity County Agriculture Alliance

Upstream

OPPOSITION: (Verified 8/24/23)

Coalicion De LA Buena Salud Y Bienestar
First Day Foundation
Los Amigos De LA Comunidad, INC.

ARGUMENTS IN SUPPORT: Supporters note that this bill will help eliminate single-use plastic tag waste.

ARGUMENTS IN OPPOSITION: Opponents note concerns that this bill could result in the proliferation of the illicit cannabis market by removing the UI from the base of the plant.

ASSEMBLY FLOOR: 73-0, 8/24/23

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Kalra, Lackey, Lee, Low, Lowenthal, Mathis, McCarty, 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, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

NO VOTE RECORDED: Bonta, Gallagher, Garcia, Jones-Sawyer, Maienschein, McKinnor, Ward

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

8/25/23 13:49:09

**** END ****

Date of Hearing: August 16, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

SBPCA Bill Id:SB 622

Author:(Allen) – As Amended Ver:June 15, 2023

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

SUMMARY:

This bill revises the unique identification program for cannabis and cannabis products and authorizes the Department of Cannabis Control (DCC) to determine by regulation how cannabis plant unique identifiers will be recorded.

FISCAL EFFECT:

Minor and absorbable costs to DCC.

COMMENTS:

1. Purpose. This bill is sponsored by CannaCraft, Inc. According to the author:

SB 622 will provide more flexibility to the Department of Cannabis Control to regulate how cannabis plants are tagged to ensure easy identification of plants for effective enforcement by inspectors and compliance by cultivators, while minimizing wasteful and expensive single-use tags. The bill leaves room for emerging alternatives and methods such as reusable digital tags or requiring cultivators to provide a centralized list of plants to satisfy the unique identifier requirement.

1. Background. The Business and Professions Code requires DCC to establish a unique identification program for cannabis and cannabis products to ensure that the cannabis and subsequent products are tracked from seed to sale. The program, also known as track and trace, is intended to prevent diversion to and inversion from the unlicensed market and to minimize public health and safety threats in the event of a product recall. The statute requires a unique identifier or plant tag to be visibly affixed to the base of each plant. DCC regulations require immature cannabis plants to bear clearly visible plant tags. Immature plants transferred from a licensed nursery for retail tag are transferred in a package with a package tag. Upon receipt, the retail licensee is required to remove the package tag and assign a plant or new package tag, as applicable. A licensee must tag mature plants with a tag attached to the main stem at the base of each plant. Plant tags are prohibited from being removed until the plant is harvested, destroyed, or disposed of.
   
   DCC procures plant tags from Metrc, its track and trace vendor. Each tag is equipped with radio-frequency identification (RFID) technology. In October 2022, DCC announced DCC and Metrc would begin testing more sustainable tag prototypes. DCC reports that in 2022, it issued 43 million plant tags to cultivator and microbusiness licensees at a cost of $15 million dollars. Each plant tag costs $0.358, which is passed on to licensees through licensing fees.
   Metrc’s RFID plant tags are not reusable or recyclable.
   
2. Support. The sponsor and supporters of this bill contend single-use plant tags do nothing to prevent diversion and that each cannabis plant is also assigned a digital plant tag in the track and trace system. Digital plant tagging is currently used by traditional farmers and has been recognized as an effective method by the California Farm Bureau and the U.S. Department of Agriculture, in providing the same level of transparency as plastic tags. Proponents argue single-use plant tags generate millions of pounds of plastic waste and unnecessary labor and operational costs for licensed cultivators.
3. Opposition. Los Amigos de la Communidad writes this bill deregulates cannabis and will exacerbate problems faced by the immigrant community. Opponents contend most cannabis offenses cause mandatory imprisonment in an immigration detention center and are consistently among the top ten types of convictions for those who are deported, and conclude a strong regulatory program, including the individual identification of legal plants and proper enforcement against illicit operators, will help to keep our immigrant communities safe.
   
4. Prior Legislation. AB 2555 (Cooley), of the 2017-18 Legislative Session, would have allowed a licensee to use a unique identifier to reference a lot of immature plants and required unique identifiers for individual mature plants. AB 2555 died on the Senate Inactive File.

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 622

Author:(Allen) – As Amended Ver:June 15, 2023

SENATE VOTE: 37-0

SUBJECT: Cannabis regulation: plant identification program: unique identifier

SUMMARY: Authorizes the Department of Cannabis Control (DCC) to determine by regulation how cannabis plant unique identifiers shall be recorded.

EXISTING LAW:

1. Enacts the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) to provide 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) §§ 26000-26325)
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 implement a unique identification program for cannabis and cannabis products. (BPC § 26069(a)(1))
4. Specifies that the unique identification program must include the identification of permitted cannabis plants at a cultivation site during the cultivation period and requires that a unique identifier be issued for each cannabis plant and attached at the base of each plant or as otherwise required by law or regulation. (BPC § 26069(a)(2))
5. Specifies that unique identifiers can only be issued to DCC licensees. (BPC § 26069(b))
6. Requires information associated with the assigned unique identifier and licensee to be included in the DCC’s track and trace program. (BPC § 26069(c))
7. Authorizes the DCC to charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each cannabis plant. (BPC § 26069(d))
8. Requires the DCC to take adequate steps to establish protections against fraudulent unique identifiers and limit illegal diversion of unique identifiers to unlicensed persons. (BPC § 26069(e))
9. Authorizes a city, county, or city and county to administer unique identifiers and associated identifying information in addition to the DCC-issued unique identifiers.
10. Exempts cannabis cultivated for personal or medicinal use from the requirement to be assigned a unique identifier. (BPC § 26069(f))

THIS BILL:

1. Authorizes the unique identifier to be recorded in a manner determined by the DCC by regulation.
2. States that the bill furthers the purpose and intent of the Control, Regulate and Tax Adult Use of Marijuana Act (Proposition 64).

FISCAL EFFECT: According to the Senate Appropriations Committee pursuant to Senate Rule 28.8, no significant state costs anticipated.

COMMENTS:

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

[This bill] will provide more flexibility to the Department of Cannabis Control to regulate how cannabis plants are tagged to ensure easy identification of plants for effective enforcement by inspectors and compliance by cultivators, while minimizing wasteful and expensive single-use tags. The bill leaves room for emerging alternatives and methods such as reusable digital tags or requiring cultivators to provide a centralized list of plants to satisfy the unique identifier requirement.

Background.

Department of Cannabis Control (DCC). Since July 1, 2021, the DCC has been the single entity responsible for administering and enforcing the majority of California’s cannabis laws, collectively known as MAUCRSA. The DCC is additionally responsible for licensing and regulating cannabis businesses, including the cultivation, manufacture, testing, transportation, labeling, and sale of cannabis and cannabis products in this state.^[1]

Plant Tags with Unique Identifiers. Existing law requires the DCC to implement a unique identification program for cannabis and cannabis products. DCC regulations specify that immature cannabis plants are assigned a plant tag, which is required by regulation to be visible and within clear view of an individual standing next to the lot containing the immature plants.^[2] Immature plants transferred from a licensed nursery for retail tag are transferred in a package with a package tag. Upon receipt, the retail licensee is required to remove the package tag and assign a plant or new package tag, as applicable. Mature plants are required to be tagged with a plant tag that is attached to the main stem at the base of each plant, placed so that it is visible and within clear view of an individual standing next to the mature plant.^[3] Plant tags are prohibited from being removed until the plant is harvested, destroyed, or disposed of.

DCC currently procures its plant tags from Metrc, its track and trace vendor. Equipped with radio-frequency identification (RFID) technology, Metrc asserts that “every time the tag is scanned, its unique ID is verified, making it nearly impossible to counterfeit.”^[4] As pictured below, each tag identifies the following: 1) Facility Name; 2) Order Number (for tags orders placed through Metrc); 3) Facility License Number; 4) Location; 5) Hex ID (the unique identifier); 6) Barcode; and 7) Product Classification.^[5]

Image 1: Metrc Cannabis Plant Tag

Source: Metrc

Metrc’s RFID plant tags are not reusable nor recyclable. However, the DCC announced in October 2022 that the DCC and Metrc would begin testing more sustainable tag prototypes.^[6]

The DCC reports that in 2022, it issued 43 million plant tags to cultivator and microbusiness licensees at the expense of $15 million dollars. Each plant tag costs $0.358, and expense that is passed on to licensees by way of the DCC’s licensing fees.

Existing law requires a unique identifier to be attached at the base of each plant or as otherwise required by law or regulation. It is unclear whether this language authorizes the Legislature or DCC to require the unique identifier to be attached elsewhere on the plant or provided in some other manner entirely. This bill would delete from statute the requirement that the unique identifier be attached at the base of each plant or as otherwise required by law or regulation and instead require the unique identifier to be recorded in a manner as determined by the DCC via the regulatory process.

The author and supporters of this bill contend that the existing requirement to affix a plastic tag containing a unique identifier is duplicative (because each plant is assigned a digital unique identifier that corresponds with the physical tag), wasteful, costly, labor intense, and is not serving its intended purpose, which is to help deter diversion of legal cannabis to the illicit market. Although the plastic tag make it easy to identify specific plants, the author’s office points out that nothing prevents diversion by skimming off the top of plants or during harvest when the physical tags are removed.

Prior Related Legislation.

AB 2555 (Cooley) of 2018 would have allowed a unique identifier to be used to reference a lot of immature plants, as defined, and required mature plants to be referenced by their own unique identifiers. AB 2555 died on the Senate Inactive File.

ARGUMENTS IN SUPPORT:

CannaCraft, the sponsor of this bill, and March & Ash collectively write in support:

Single-use plant tags do nothing to prevent diversion. In addition to the plastic plant tag, each cannabis plant is also assigned a digital plant tag in the track and trace system. Digital plant tagging is currently used by traditional farmers and has been recognized as an effective method by the California Farm Bureau as well as the U.S. Department of Agriculture, in providing the same level of transparency and reported data on the number of plants in the ground at any given time, as plastic ones. Requiring both a digital and plastic plant tag is unnecessary and does nothing to enhance the integrity of the state’s track and trace program. In fact, if a cannabis cultivator wished to divert cultivated cannabis into the illegal market, it would most likely occur at the time of harvest, at which point the single use plants tags have already been removed, and discarded. Harvested plants are then combined and assigned a batch tag in track and trace, making the original plastic plant tag obsolete […] Single-use plant tags generate millions of pounds of plastic waste and unnecessary labor and operational costs for licensed cultivators. According to data provided by the Department of Cannabis Control, 43 million plant tags were issued to licensed cultivators and microbusinesses in 2022 for a total cost to the state of $15 million. This does not include the millions of pounds of ancillary plastic waste from the plant tagging process including zip ties, the packaging the tags and zip ties are shipped in, and the garbage bags used for disposing them. By eliminating the individual plastic plant tag requirement, while maintaining digital plant tags, [this bill] preserves the integrity of the track and trace system and eliminates an estimated quarter million pounds of single use plastic waste from landfills each year.

Origins Council, the Humboldt County Growers Alliance, the Big Sur Farmers Association, the Nevada County Cannabis Alliance, the Mendocino Cannabis Alliance, and the Trinity County Agricultural Alliance collectively write in support:

Existing law establishes a track-and-trace system intended to track the movement of cannabis throughout the licensed supply chain and prevent diversion to the unlicensed market. Within this track-and-trace framework, the existing requirement to attach a physical tag to each plant is among the most time and labor-intensive requirements in California state cannabis law, establishing considerable costs on licensed cultivators who are participating within the regulated market.

At the same time, this requirement provides no corresponding regulatory benefit to the state. Following harvest, state regulations require harvested material from individual plants to be combined into a single harvest “batch,” which receives its own collective tag, and individual plant tags are discarded. Additionally, each cannabis plant is digitally tagged within the track-and-trace system, and can be identified regardless of whether a corresponding physical tag is attached to each plant.

[…]

[R]equirements to tag every plant impose substantial costs that divert time and resources from meaningful business and compliance tasks. For a half-acre farm, we estimate it typically requires a crew of five people 3-4 days to tag all plants within a licensed cultivation area. These requirements also generate significant environmental impact: we estimate that a single 10,000 square foot cultivator utilizing light deprivation generates about 30 pounds of plastic tag waste per year.

The existing requirement to physically tag each cannabis plant is wasteful, redundant, and imposes unnecessary costs on both the state and licensed cannabis operators.

ARGUMENTS IN OPPOSITION:

The Coalition de Buena Salud y Bienestar writes in opposition to this bill:

We oppose [this bill] because it will have a detrimental impact on low income-communities where people often are challenged by violence, food insecurity, poverty, and other socioeconomic barriers such as high unemployment. Illegal cannabis products, at times laced with Fentanyl, are being sold in our communities that cause death.

[…]

We oppose [this bill] because we strongly believe that these proposed regulations violate Proposition 64 as it contradicts its Purpose and Intent which goes against the will of the voters to reduce the illicit market and protect communities. The State of California must maintain the unique and individualized identification of legal cannabis to ensure that they are not diverted into the illicit market. Before the State of California deregulates cannabis, it must start enforcing its own laws to protect our communities.

Los Amigos de la Communidad writes in opposition to this bill:

[This bill] deregulates cannabis which will only exacerbate the problems faced by the immigrant community. For these communities, cannabis related convictions can result in disproportionate and devastating consequences. Almost all cannabis offenses cause mandatory imprisonment in an immigration detention center and they are consistently among the top ten types of convictions for those who are deported. It is well documented and known nationally that the California cannabis illicit market is out of control.

[…]

California must ensure that there are strong regulations in place to shrink the illicit market in order to protect our immigrant communities from being deported or barred from adjusting their immigration status. A strong regulatory program, including the individual identification of legal plants, and proper enforcement against illicit operators will help to keep our immigrant communities safe.

REGISTERED SUPPORT:

CannaCraft, Inc. (Sponsor)

Big Sur Farmers Association

California Cannabis Industry Association

California NORML

California Product Stewardship Council

Environmental Working Group

Ethical Data Alliance

Humboldt County Growers Alliance

Kiva Confections

Lompoc Valley Cannabis Association, Santa Barbara County

Mendocino Cannabis Alliance

National Stewardship Action Council

Nevada County Cannabis Alliance

Origins Council

The Parent Company
San Diego & Imperial Counties Cannabis Industry Labor Management

Trinity County Agriculture Alliance

Upstream

REGISTERED OPPOSITION:

Coalition de Buena Salud y Bienestar

First Day Foundation

Los Amigos de la Comunidad, Inc.

Analysis Prepared by: Kaitlin Curry / B. & P. / (916) 319-3301

1. Department of Cannabis Control. (n.d.). About the Department of Cannabis Control. Department of Cannabis Control. Retrieved April 6, 2023, from https://cannabis.ca.gov/about-us/about-dcc/ ↑

2. Cal. Code Regs. Tit. 4, § 15048.4 ↑

3. Ibid. ↑

4. Taylor, M. (2022, November 29). What are credit card surcharges and where are they legal?. Fortune Recommends. https://fortune.com/recommends/credit-cards/what-are-credit-card-surcharges/ ↑

5. Statewide Monitoring System Information. Metrc. (n.d.). https://www.metrc.com/wp-content/uploads/2023/01/anatomy-of-a-tag.pdf ↑

6. Department of Cannabis Control. (2022, October 10). Cannabis licensee listening sessions provide framework for “track and trace” improvements. Department of Cannabis Control. https://cannabis.ca.gov/2022/10/cannabis-licensee-listening-sessions-provide-framework-for-track-and-trace-improvements/ ↑

 THIRD READING  

Bill No: SB 622

Author: Allen (D)

Amended: 3/22/23

Vote: 27

SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 12-0, 4/24/23

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

NO VOTE RECORDED: Nguyen

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT: Cannabis regulation: plant identification program: unique identifier

SOURCE: CannaCraft, Inc.

DIGEST:

This bill updates the requirement under the Department of Cannabis Control (DCC) unique identifier (UI) program that a cannabis plant have a UI attached to the base and instead authorizes the UI be attached in a number of ways.

ANALYSIS:

Existing law:

1. Establishes the DCC to regulate cannabis with the sole authority to create, issue, deny, renew, discipline, suspend, or revoke licenses for microbusinesses, transportation, storage unrelated to manufacturing activities, distribution, testing, and sale of cannabis and cannabis products within the state. Requires the DCC to administer the portions of Medical and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) related to and associated with the cultivation of cannabis and with the manufacturing of cannabis products. Delegates to the DCC authority to create, issue, deny, and suspend or revoke cultivation or manufacturing licenses for violations of MAUCRSA. (Business and Professions Code (BPC) §§ 26010, 26012)
2. Requires the DCC to implement a unique identification program for cannabis and cannabis products. (BPC § 26069)
3. Requires the unique identification program to include the identification of permitted cannabis plants at a cultivation site during the cultivation period, and must be issued for each plant. (BPC § 26069(a)(2))
4. Requires the unique identified be attached at the base of each plant or as otherwise specified in regulations. (BPC § 26069(a)(2))

This bill updates the requirement under the DCC’s UI program that a cannabis plant have a UI attached to the base and instead authorizes the UI be attached at the base of each plant, in close proximity to each plant, as determined by DCC or in a manner as otherwise required by regulation.

Background

Cannabis Regulations and Cannabis Consumption. Shortly following the passage of Medical Marijuana Regulation and Safety Act (later renamed to the Medical Cannabis Regulation and Safety Act 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 MAUCRSA, the current regulatory structure for both medicinal and adult-use cannabis.

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

The DCC was required to establish a UI program for cannabis and cannabis plants during a cultivation period. As part of that process, each plant is required to be assigned a “Unique identifier” or “UI” which is an alphanumeric code or designation used for reference to a specific plant on a licensed premise and any cannabis or cannabis product derived or manufactured from that plant. The UI was required to be issued for each plant and attached at the base of each plant. The UI is then required to be included into the track and trace system. Information provided to the author, indicated that 43 million plant tags were issued to licensed cultivators and microbusinesses in 2022 for a total cost to the state of $15 million. This bill would provide increased efficiency to DCC operations and allow for updates to the UI program to allow the UI to be placed in close proximity to each plant. This may help reduce the number of plastic tags required and reduce expenditures. Currently, the DCC contracts with METRC to supply the plastic tags for the UI program.

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

SUPPORT: (Verified 5/9/23)

CannaCraft, Inc. (source)

California Cannabis Industry Association

California Norml

California Product Stewardship Council

Environmental Working Group

Ethical Data Alliance

Good Farmers Great Neighbors

Kiva Confections

National Stewardship Action Council

Origins Council

Upstream

OPPOSITION: (Verified 5/9/23)

None received

ARGUMENTS IN SUPPORT: Supporters note that this bill will help eliminate single-use plastic tag waste.

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

5/10/23 15:29:19

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SENATE COMMITTEE ON

BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT

Senator Richard Roth, Chair

2023 - 2024 Regular

Bill No: Hearing Date: April 24, 2023

Subject:

SUMMARY:

Updates the requirement under the Department of Cannabis Control (DCC) unique identifier (UI) program that a cannabis plant have a UI attached to the base and instead authorizes the UI to be attached in a number of ways.

Existing law:

1. Enacts the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) to provide for a comprehensive regulatory framework for the cultivation, distribution, transport, storage, manufacturing, processing, and sale of medicinal and adult-use cannabis. (Business and Professions Code (BPC) §§ 26000 et seq.)
2. Establishes the Department of Cannabis Control (DCC) to regulate cannabis with the sole authority to create, issue, deny, renew, discipline, suspend, or revoke licenses for microbusinesses, transportation, storage unrelated to manufacturing activities, distribution, testing, and sale of cannabis and cannabis products within the state. Requires the DCC to administer the portions of MAUCRSA related to and associated with the cultivation of cannabis and with the manufacturing of cannabis products. Delegates to the DCC authority to create, issue, deny, and suspend or revoke cultivation or manufacturing licenses for violations of MAUCRSA. (BPC §§ 26010, 26012)
   
3. Requires the DCC to implement a unique identification program for cannabis and cannabis products. (BPC § 26069)
   
4. Requires the unique identification program to include the identification of permitted cannabis plants at a cultivation site during the cultivation period, and must be issued for each plant. (BPC § 26069(a)(2))
   
5. Requires the unique identified to be attached at the base of each plant or as otherwise specified in regulations. (BPC § 26069(a)(2))
   
6. Requires the information associated with the assigned unique identified to be included in the track and trace program, as specified. (BPC § 26069(c))
   
7. Permits the DCC to charge a fee to cover the cost of issuing the unique identifier and monitoring, tracking, and inspecting each cannabis plant. (BPC § 26069(d))
   

This bill updates the requirement under the DCC UI program that a cannabis plant have a UI attached to the base and instead authorizes the UI to be attached at the base of each plant, in close proximity to each plant, as determined by DCC or in a manner as otherwise required by regulation.

FISCAL EFFECT:

Unknown. This bill is keyed fiscal by the legislative counsel.

COMMENTS:

1. Purpose. CannaCraft, Inc.is the sponsor of this bill. According to the author, “Existing law requires the state to establish a unique identification program for cannabis and cannabis products to ensure that the cannabis and subsequent products are tracked from seed to sale…this statutory requirement creates unnecessary labor and operational costs for cannabis cultivators, as well as millions of pounds of needless plastic waste that cannot be recycled every year. According to data provided by the Department of Cannabis Control, 43 million plant tags were issued to licensed cultivators and microbusinesses in 2022 for a total cost to the state of $15 million. This does not include the millions of pounds of ancillary plastic waste used in the plant tagging process including zip ties, the packaging the tags and zip ties are shipped in, and the garbage bags used for disposing of them.

Equally important, the individual plastic plant tags are completely ineffective in preventing diversion. Cannabis plants cannot be diverted until they are harvested. Yet, the plant tag is only on the plant while the plant is in the ground. Upon harvest, all individual plant tags are discarded, and the harvest batch is assigned a single “package tag” in the track and trace system.”

1. Background.

Cannabis Regulations and Cannabis Consumption. Shortly following the passage of Medical Marijuana Regulation and Safety Act (later renamed to the Medical Cannabis Regulation and Safety Act 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 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 formally established with both licensing, regulatory and enforcement authority.

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

The track and trace program and subsequent requirements for identification of cannabis products are part of the foundation of Prop 64, and the implementation of MAUCURSA. The California Cannabis Track-and-Trace system is the program used statewide to record the inventory and movement of cannabis and cannabis products through the commercial cannabis supply chain from cultivation to sale.

The DCC was required to establish a UI program for cannabis and cannabis plants during a cultivation period. As part of that process, each plant is required to be assigned a “Unique identifier” or “UI” which is an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant. The UI was required to be issued for each plant and attached at the base of each plant. The UI is then required to be included into the track and trace system. Information provided to the author, indicated that 43 million plant tags were issued to licensed cultivators and microbusinesses in 2022 for a total cost to the state of $15 million. This bill would provide increased efficiency to DCC operations and allow for updates to the UI program to allow the UI to be placed in close proximity to each plant. This may help reduce the number of plastic tags required and reduce expenditures. Currently, the DCC contracts with METRC to supply the plastic tags for the UI program.

1. Arguments in Support. According to the California Cannabis Industry Association. “Single-use plant tags do nothing to prevent diversion. In addition to the plastic plant tag, each cannabis plant is also assigned a digital plant tag in the track and trace system. Digital plant tagging is currently used by traditional farmers and has been recognized as an effective method by the California Farm Bureau as well as the U.S. Department of Agriculture, in providing the same level of transparency and reported data on the number of plants in the ground at any given time, as plastic ones. Requiring both a digital and plastic plant tag is unnecessary and does nothing to enhance the integrity of the state’s track and trace program… By eliminating the individual plastic plant tag requirement, while maintaining digital plant tags, SB
2. preserves the integrity of the track and trace system and eliminates an

estimated quarter million pounds of single use plastic waste from landfills each year.

California NORML writes in support, “The existing plant tag rules will generate enormous amounts of plastic waste. It’s estimated that millions of disposable plastic tags would be needed each year to serve the state’s legal gardens. At a time when California is rightly trying to reduce plastic waste, this is a wrong-headed policy. There are better ways of discouraging diversion from legal gardens. SB 622 would allow the use of digital tags instead of plastic tags, providing the same level of security while eliminating plastic waste. California needs to eliminate costly, unnecessary and wasteful regulations that hamper legal producers.”

Kiva Confections writes in support, “SB 622 replaces the individual plastic plant tagging with a digital plant tag, which provides the same level of transparency into the number of plants in the ground at any given time. Digital plant tagging is currently used by traditional farmers and has been recognized as an effective alternative by the California Farm Bureau as well as the U.S. Department of Agriculture.

Good Farmers Good Neighbors state that “SB 622 will continue to enhance our region’s commitment and practice to be “Best in Class” as it relates to environmental stewardship and conservation. NOT requiring cannabis farmers to store thousands of pounds of plastic tags and zip ties, allocate hundreds of staff hours and incur hundreds of thousands of dollars in direct costs will allow us to focus on our core mission to grow and harvest a quality crop with the highest standards of sustainable farming. The passage of SB 622 will help farmers obtain USDA Organic Certification when cannabis is federally legal.”

National Stewardship Action Council, California Product Stewardship Council, and Environmental Working Group write in support and note, “Single-use plant tags generate millions of pounds of plastic waste and result in unnecessary labor and operational costs for licensed cultivators. According to data provided by the Department of Cannabis Control, 43 million plant tags were issued to licensed cultivators and microbusinesses in 2022 for a total cost to the state of $15 million. This does not include the millions of pounds of ancillary plastic waste from the plant tagging process including zip ties, the packaging the tags and zip ties are shipped in, and the garbage bags used for disposing them. By eliminating the individual plastic plant tag requirement, while maintaining digital plant tags, SB 622 preserves the integrity of the track and trace system and eliminates an estimated quarter million pounds of single use plastic waste from landfills each year.

According to Origins Council, “In this context, requirements to tag every plant impose substantial costs that divert time and resources from meaningful business and compliance tasks. For a half-acre farm, we estimate it typically requires a crew of five people 3-4 days to tag all plants within a licensed cultivation area. These requirements also generate significant environmental impact: we estimate that a single 10,000 square foot cultivator utilizing light deprivation generates about 30 pounds of plastic tag waste per year. The existing requirement to physically tag each cannabis plant is wasteful, redundant, and imposes unnecessary costs on both the state and licensed cannabis operators.”

1. Related Legislation. AB 2555 (Cooley of 2018) would have defined “immature cannabis plant” under the MAUCRSA and clarified the use of a UI for cannabis plants. (Status: This bill failed passage on the Senate Floor)

SUPPORT AND OPPOSITION:

Support:

California Cannabis Industry Association

California Norml

California Product Stewardship Council
Environmental Working Group
Ethical Data Alliance
Good Farmers Good Neighbors
Kiva Confections
National Stewardship Action Council
Origins Council

Opposition:

None received

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