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SB-475 Cannabis: trade samples.(2019-2020)



SECTION 1.

 Section 26153.1 is added to the Business and Professions Code, to read:

26153.1.
 (a) A licensee may designate cannabis or a cannabis product as a trade sample at any time while the cannabis or cannabis product is in the possession of the licensee.
(b) Upon the designation of the cannabis or cannabis product as a trade sample, the licensee shall do both of the following:
(1) Record the associated quantity, product type, and unique identifiers of the cannabis or cannabis product into the track and trace program established pursuant to Section 26067.
(2) Label the cannabis or cannabis product with the following: “TRADE SAMPLE. NOT FOR RESALE OR DONATION.”
(c) Cannabis or cannabis products designated as a trade sample may be transported between licensees by an employee of a licensee.
(d) (1) Cannabis or cannabis products designated as a trade sample shall not be sold or donated by any licensee.
(2) Notwithstanding Section 26153, cannabis or cannabis products designated as a trade sample may be given for no consideration to an employee of the licensee that designated the trade sample or to another licensee, subject to all the following requirements:
(A) A trade sample shall only be given for the purposes of conducting research and development, education, or targeted advertising to licensees about new or existing cannabis or cannabis products.
(B) Cannabis or cannabis products designated as a trade sample given to another licensee shall be recorded in the track and trace system pursuant to Section 26067.
(C) A licensee shall maintain records of cannabis or cannabis products designated as a trade sample that are given to employees.
(D) An employee of the licensee shall not possess or transport trade samples in amounts exceeding the following:
(i) Twenty-eight and one-half grams of nonconcentrated cannabis.
(ii) Eight grams of concentrated cannabis, including concentrated cannabis contained in cannabis products.
(iii) Six immature cannabis plants.
(3) Cannabis or cannabis products may be consumed by the licensee or an employee of the licensee.
(4) Cannabis or cannabis products shall not be given to a retail customer.
(e) (1) The bureau shall establish by regulation a definition of trade sample.
(2) (A) The bureau may establish by regulation a limit on the quantity of cannabis and cannabis goods designated by a licensee as trade samples.
(B) The bureau shall not establish a limit pursuant to this paragraph that is less than 2 percent of each batch.
(f) Cannabis or cannabis products designated as a trade sample shall be subject to quality assurance and testing pursuant to Section 26110.