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AB-420 Marijuana and medical cannabis: advertisements: license number disclosure.(2017-2018)

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Date Published: 02/09/2017 09:00 PM
AB420:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 420


Introduced by Assembly Member Wood

February 09, 2017


An act to amend Section 26151 of, and to add Section 19327.3 to, the Business and Professions Code, relating to marijuana.


LEGISLATIVE COUNSEL'S DIGEST


AB 420, as introduced, Wood. Marijuana and medical cannabis: advertisements: license number disclosure.
Existing law, the Medical Cannabis Regulation and Safety Act (MCRSA), authorizes a person who obtains both a state license under MCRSA and the applicable local license to engage in commercial medical cannabis activity pursuant to those licenses, as specified.
This bill would require an advertisement for the sale of medical cannabis or medical cannabis products to identify the MCRSA licensee responsible for its content by including, at a minimum, the license number of the MCRSA licensee.
Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA) that was added by the approval of Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial marijuana activity, which does not include medical cannabis activity, pursuant to that license and any applicable local ordinances. AUMA requires all advertisements for the sale of nonmedical marijuana or nonmedical marijuana products, as specified, to identify accurately and legibly the licensee responsible for its content. AUMA authorizes legislative amendment of specified sections of AUMA with a majority vote of both houses, without submission to the voters, to implement the substantive provisions of those sections, provided that the amendments further its purposes and intent.
This bill would require an advertisement for the sale of nonmedical marijuana or nonmedical marijuana products to include, at a minimum, the license number of the AUMA licensee responsible for its content. The bill would declare that it furthers the purposes and intent of AUMA.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 19327.3 is added to the Business and Professions Code, to read:

19327.3.
 (a) For purposes of this section, “advertisement” includes any written or verbal statement, illustration, or depiction which is calculated to induce sales of medical cannabis or medical cannabis products, including any written, printed, graphic, or other material, billboard, sign, or other outdoor display, public transit card, other periodical literature, publication, or in a radio or television broadcast, or in any other media; except that such term shall not include:
(1) Any label affixed to any cannabis or cannabis products, or any individual covering, carton, or other wrapper of such container that constitutes a part of the labeling under provisions of this division.
(2) Any editorial or other reading material (e.g., news release) in any periodical or publication or newspaper for the publication of which no money or valuable consideration is paid or promised, directly or indirectly, by any licensee, and which is not written by or at the direction of the licensee.
(b) An advertisement shall identify the licensee responsible for its content by including, at a minimum, the license number of the licensee.

SEC. 2.

 Section 26151 of the Business and Professions Code is amended to read:

26151.
 (a) (1) All advertisements and marketing shall accurately and legibly identify the licensee responsible for its content.
(2) An advertisement shall identify the licensee responsible for its content pursuant to paragraph (1) by including, at a minimum, the license number of the licensee.
(b) Any advertising or marketing placed in broadcast, cable, radio, print and digital communications shall only be displayed where at least 71.6 percent of the audience is reasonably expected to be 21 years of age or older, as determined by reliable, up-to-date audience composition data.
(c) Any advertising or marketing involving direct, individualized communication or dialogue controlled by the licensee shall utilize a method of age affirmation to verify that the recipient is 21 years of age or older prior to engaging in such communication or dialogue controlled by the licensee. For purposes of this section, such method of age affirmation may include user confirmation, birth date disclosure, or other similar registration method.
(d) All advertising shall be truthful and appropriately substantiated.

SEC. 3.

 The Legislature finds and declares that Section 2 of this act amending Section 26151 of the Business and Professions Code implements and furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act because this amendment ensures effective enforcement of provisions relating to the marketing and advertising of nonmedical marijuana.