AB 1826: Cannabis: recall, embargo, and destruction of cannabis and cannabis products.

Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), governs the licensure and regulation of commercial cannabis activities. MAUCRSA establishes the Department of Cannabis Control for the administration and enforcement of its provisions. Existing law gives the department various enforcement powers and duties related to the recall, embargo, seizure, and destruction of cannabis and cannabis products that have been deemed misbranded or adulterated, or whose sale would otherwise be in violation of MAUCRSA. When the department has evidence that cannabis or a cannabis product has been adulterated or misbranded or when the department issues an embargo, existing law requires the department to notify the licensee.

This bill would also grant the department those enforcement powers and duties over cannabis and cannabis products that have an administrative error. The bill would require the those notifications described above to include certain documentation supporting the finding of adulteration, misbranding, or administrative error, adulteration or misbranding, or the finding of probable cause to issue an embargo, as specified.

Existing law authorizes a licensee to conduct a voluntary recall of the affected cannabis or cannabis product and to remediate the cannabis or cannabis product, if approved by the department, otherwise, existing law requires the licensee to destroy the affected cannabis or cannabis product under the supervision of the department.

This bill would require the department, prior to a voluntary recall by the licensee, and within 5 business of delivery of the notification of adulteration, misbranding, or administrative error, to provide the licensee with an opportunity for a meet and confer an informal conference on why the cannabis or cannabis product is considered adulterated or misbranded, or to have an administrative error. misbranded. The bill would prohibit the department from permitting destruction of the product until either the meet and confer informal conference process has concluded or the licensee has declined to meet and confer. participate in the informal conference.

Existing law authorizes the department to issue a mandatory recall if the cannabis or cannabis product creates or poses an immediate and serious threat to human life or health, as specified. Existing law requires the department to provide an opportunity for an informal proceeding on the recall within 5 days, as specified.

This bill would require the department to provide the evidence supporting the mandatory recall simultaneously with the issuance of the order. The bill would require the department to provide the licensee with an opportunity for a meet and confer an informal conference on the recall, instead of an informal proceeding, within 5 business days of the order, as specified. The bill would prohibit the department from requiring destruction of cannabis or cannabis product prior to the conclusion of either the meet and confer informal conference process or the licensees decision not to meet and confer. participate in the informal conference.

Existing law requires the department to affix an embargo tag or other appropriate marking to cannabis or cannabis product that the department finds or has probable cause to believe is in violation of MAUCRSA, as specified. Existing law prohibits the embargoed cannabis or cannabis product from being removed or disposed of by sale or otherwise until the department or a court gives permission. Existing law authorizes the licensee to request that the department remove the tag or other marking to permit correction if the adulteration or misbranding can be corrected by proper labeling or additional processing, and other requirements are met. Existing law authorizes the department to remove the tag or other marking if it finds that the embargoed cannabis or cannabis product is not in violation of MAUCRSA, as specified.

This bill would also authorize a licensee to request that the department remove the tag or other marking to permit correction if the administrative error can be corrected by proper labeling or additional processing. The bill would require the department to provide the licensee with an opportunity for a meet and confer an informal conference on an embargo, as specified, and would require the department to work diligently to make a final determination on the embargo order, as provided. order within 15 calendar days from the date of the informal conference. The bill would require the department to remove the embargo tag or other marking within 24 hours 5 calendar days of finding that cannabis or a cannabis product is not in violation of MAUCRSA, as specified.

Existing law authorizes the department to condemn cannabis or a cannabis product that is in violation of MAUCRSA, as specified, and imposes certain notice and hearing requirements on a proceeding for condemnation. embargoed. Existing law also authorizes the licensee or product owner of embargoed cannabis or cannabis product to destroy or remediate the cannabis or cannabis product pursuant to a corrective action plan approved by the department and under the supervision of the department.

This bill would prohibit the department from requiring a licensee to conduct a voluntary recall, sign a waiver of liability, or waive any right to an informal meeting or an administrative or judicial hearing or appeal as a condition of the department taking certain actions. Those actions include approving a voluntary recall, authorizing remediation, supervising the destruction of the cannabis or cannabis product, removing an embargo tag, approving a corrective plan, and permitting the destruction of product.

Existing law authorizes the department to issue a citation to a licensee or unlicensed person for any act or omission that violates or has violated any provision of MAUCRSA. MAUCRSA and requires the citation to include a provision that notifies the licensee or person that a hearing may be requested to contest the finding of a violation. Existing law requires the hearing to be conducted pursuant to specified provisions of the Administrative Procedure Act that govern formal hearings.

This bill would instead require a the citation to include an opportunity to meet and confer on the matter with department personnel, a provision that notifies the licensee that a hearing or informal conference, or both, may be requested to contest the violation, as specified. The bill would require the informal hearing to be conducted pursuant to different provisions of the Administrative Procedure Act, other than the provisions governing formal hearings, and would set forth additional specific procedures for the informal conference.