Bill Text

Bill Information

PDF |Add To My Favorites |Track Bill | print page

AB-1288 Cannabis: track and trace.(2019-2020)

SHARE THIS:share this bill in Facebookshare this bill in Twitter
Date Published: 06/19/2019 09:00 PM
AB1288:v98#DOCUMENT

Amended  IN  Senate  June 19, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1288


Introduced by Assembly Member Cooley

February 21, 2019


An act to amend Section 26067 Sections 26055, 26067, and 26090 of the Business and Professions Code, and to amend Section 71041 of the Public Resources Code relating to cannabis.


LEGISLATIVE COUNSEL'S DIGEST


AB 1288, as amended, Cooley. Cannabis: track and trace.
(1) Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), approved by the voters as Proposition 64at 64 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.
MAUCRSA requires the Department of Food and Agriculture, in consultation with the Bureau of Cannabis Control, to establish a track and trace program for reporting the movement of cannabis and cannabis products throughout the distribution chain. Existing law requires the track and trace program to capture, at a minimum, information on the licensee receiving the product, the transaction date, and the cultivator from which the product originates. Existing law requires the track and trace program to include an electronic seed to sale software tracking system with data points for the different stages of commercial activity, including, but not limited to, cultivation, harvest, processing, distribution, inventory, and sale.
This bill would require the information captured recorded by the track and trace program to additionally include the date of retail sale to a customer and customer, whether the sale is on the retail premises or by delivery. delivery, and the delivery inventory ledger.
(2) To facilitate the administration of the track and trace program, existing law requires the department to create an electronic database containing electronic shipping manifests with, at a minimum, specified information about shipments. Existing law requires licensing authorities, upon the request of a state or local law enforcement agency, to allow access to or provide information contained within this database to assist law enforcement in their duties and responsibilities pursuant to MAUCRSA.
Existing law states that information received and contained in records kept by the department or licensing authorities pursuant to the track and trace program and the above-described provisions is confidential and exempt from disclosure pursuant to the California Public Records Act, except as necessary for authorized employees of the State of California or any city, county, or city and county to perform official duties pursuant to MAUCRSA or a local ordinance.
This bill would require the department, in consultation with the bureau, to ensure, no later than July 1, 2020, that the track and trace program is fully integrated into the California Law Enforcement Telecommunications System, as described.
Existing law establishes requirements and procedures regarding deliveries of cannabis, as specified, applicable to licensees, their employees, and customers.
This bill would require a licensed retailer, before leaving the licensed premises, to upload its delivery inventory ledger to the track and trace system if accessible or to otherwise transmit it to the bureau by electronic mail.
Existing law requires the Governor’s Office of Business and Economic Development to establish and maintain the CALGOLD program to provide electronic online assistance, resources, and tools that may be used by businesses to streamline and expedite compliance with laws and regulations.
This bill would add the cannabis industry to the list of businesses that may be included in future updates to the CALGOLD program.
Existing law requires local jurisdictions to provide the bureau with information regarding local ordinances or regulations related to commercial cannabis activities, as specified, and requires the bureau to share such information with other licensing authorities.
This bill would allow the bureau to share information regarding local ordinances and regulations with the Governor’s Office of Business and Economic Development during periodic updates of the CALGOLD program.
(3) AUMA authorizes the Legislature to amend its provisions with a 2/3 vote of both houses to further its purposes and intent.
This bill would declare that its provisions further specified purposes and intent of AUMA.
Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 26055 of the Business and Professions Code is amended to read:

26055.
 (a) Licensing authorities may issue state licenses only to qualified applicants.
(b) Revocation of a state license issued under this division shall terminate the ability of the licensee to operate pursuant to that license within California until a new license is obtained.
(c) A licensee shall not change or alter the premises in a manner which materially or substantially alters the premises, the usage of the premises, or the mode or character of business operation conducted from the premises, from the plan contained in the diagram on file with the application, unless and until written approval by the licensing authority has been obtained. For purposes of this section, material or substantial physical changes of the premises, or in the usage of the premises, shall include, but not be limited to, a substantial increase or decrease in the total area of the licensed premises previously diagrammed, or any other physical modification resulting in substantial change in the mode or character of business operation.
(d) Licensing authorities shall not approve an application for a state license under this division if approval of the state license will violate the provisions of any local ordinance or regulation adopted in accordance with Section 26200.
(e) An applicant may voluntarily provide proof of a license, permit, or other authorization from the local jurisdiction verifying that the applicant is in compliance with the local jurisdiction. An applicant that voluntarily submits a valid, unexpired license, permit, or other authorization from the local jurisdiction shall be presumed to be in compliance with all local ordinances unless the licensing authority is notified otherwise by the local jurisdiction. The licensing authority shall notify the contact person for the local jurisdiction of any applicant that voluntarily submits a valid, unexpired license, permit, or other authorization from the local jurisdiction.
(f) (1) A local jurisdiction shall provide to the bureau a copy of any ordinance or regulation related to commercial cannabis activity and the name and contact information for the person who will serve as the contact for state licensing authorities regarding commercial cannabis activity within the jurisdiction. If a local jurisdiction does not provide a contact person, the bureau shall assume that the clerk of the legislative body of the local jurisdiction is the contact person.
(2) Whenever there is a change in a local ordinance or regulation adopted pursuant to Section 26200 or a change in the contact person for the jurisdiction, the local jurisdiction shall provide that information to the bureau.
(3) The bureau shall share the information required by this subdivision with the other licensing authorities.
(4) The bureau may share the ordinance or regulation information with the Governor’s Office of Business and Economic Development pursuant to Part 1.5 (commencing with Section 71040) of Division 34 of the Public Resources Code.
(g) (1) The licensing authority shall deny an application for a license under this division for a commercial cannabis activity that the local jurisdiction has notified the bureau is prohibited in accordance with subdivision (f). The licensing authority shall notify the contact person for the local jurisdiction of each application denied due to the local jurisdiction’s indication that the commercial cannabis activity for which a license is sought is prohibited by a local ordinance or regulation.
(2) Prior to issuing a state license under this division for any commercial cannabis activity, if an applicant has not provided adequate proof of compliance with local laws pursuant to subdivision (e):
(A) The licensing authority shall notify the contact person for the local jurisdiction of the receipt of an application for commercial cannabis activity within their jurisdiction.
(B) A local jurisdiction may notify the licensing authority that the applicant is not in compliance with a local ordinance or regulation. In this instance, the licensing authority shall deny the application.
(C) A local jurisdiction may notify the licensing authority that the applicant is in compliance with all applicable local ordinances and regulations. In this instance, the licensing authority may proceed with the licensing process.
(D) If the local jurisdiction does not provide notification of compliance or noncompliance with applicable local ordinances or regulations, or otherwise does not provide notification indicating that the completion of the local permitting process is still pending, within 60 business days of receiving the inquiry from a licensing authority submitted pursuant to subparagraph (A), the licensing authority shall make a rebuttable presumption that the applicant is in compliance with all local ordinances and regulations adopted in accordance with Section 26200, except as provided in subparagraphs (E) and (F).
(E) At any time after expiration of the 60-business-day period set forth in subparagraph (D), the local jurisdiction may provide written notification to the licensing authority that the applicant or licensee is not in compliance with a local ordinance or regulation adopted in accordance with Section 26200. Upon receiving this notification, the licensing authority shall not presume that the applicant or licensee has complied with all local ordinances and regulations adopted in accordance with Section 26200, and may commence disciplinary action in accordance with Chapter 3 (commencing with Section 26030). If the licensing authority does not take action against the licensee before the time of the renewal of the license, the license shall not be renewed until and unless the local jurisdiction notifies the licensing authority that the licensee is once again in compliance with local ordinances.
(F) A presumption by a licensing authority pursuant to this paragraph that an applicant has complied with all local ordinances and regulations adopted in accordance with Section 26200 shall not prevent, impair, or preempt the local government from enforcing all applicable local ordinances or regulations against the applicant, nor shall the presumption confer any right, vested or otherwise, upon the applicant to commence or continue operating in any local jurisdiction except in accordance with all local ordinances or regulations.
(3) For purposes of this section, “notification” includes written notification or access by a licensing authority to a local jurisdiction’s registry, database, or other platform designated by a local jurisdiction, containing information specified by the licensing authority, on applicants to determine local compliance.
(h) Without limiting any other statutory exemption or categorical exemption, Division 13 (commencing with Section 21000) of the Public Resources Code does not apply to the adoption of an ordinance, rule, or regulation by a local jurisdiction that requires discretionary review and approval of permits, licenses, or other authorizations to engage in commercial cannabis activity. To qualify for this exemption, the discretionary review in any such law, ordinance, rule, or regulation shall include any applicable environmental review pursuant to Division 13 (commencing with Section 21000) of the Public Resources Code. This subdivision shall become inoperative on July 1, 2019.
(i) A local or state public agency may charge and collect a fee from a person proposing a project pursuant to subdivision (a) of Section 21089 of the Public Resources Code.

SECTION 1.SEC. 2.

 Section 26067 of the Business and Professions Code is amended to read:

26067.
 (a) The department, in consultation with the bureau, shall establish a track and trace program for reporting the movement of cannabis and cannabis products throughout the distribution chain that utilizes a unique identifier pursuant to Section 26069, secure packaging, and is capable of providing information that captures, at a minimum, all of the following:
(1) The licensee receiving the product.
(2) The transaction date.
(3) The cultivator from which the product originates, including the associated unique identifier pursuant to Section 26069.
(4) The date of retail sale to a customer and whether the sale is on the retail premises or by delivery.
(5) The delivery inventory ledger.
(b) (1) The department, in consultation with the California Department of Tax and Fee Administration, shall create an electronic database containing the electronic shipping manifests to facilitate the administration of the track and trace program, which shall include, but not be limited to, the following information:
(A) The variety and quantity or weight of products shipped.
(B) The estimated times of departure and arrival.
(C) The variety and quantity or weight of products received.
(D) The actual time of departure and arrival.
(E) A categorization of the product.
(F) The license number and the unique identifier pursuant to Section 26069 issued by the licensing authority for all licensees involved in the shipping process, including, but not limited to, cultivators, manufacturers, distributors, and dispensaries.
(2) (A) The database shall be designed to flag irregularities for all licensing authorities in this division to investigate. All licensing authorities pursuant to this division may access the database and share information related to licensees under this chapter, including social security and individual taxpayer identifications notwithstanding Section 30.
(B) The department shall immediately inform the bureau upon the finding of an irregularity or a suspicious finding related to a licensee, applicant, or commercial cannabis activity for investigatory purposes.
(3) Licensing authorities and state and local agencies may, at any time, inspect shipments and request documentation for current inventory.
(4) The bureau shall have 24-hour access to the electronic database administered by the department. The California Department of Tax and Fee Administration shall have read access to the electronic database for the purpose of taxation and regulation of cannabis and cannabis products.
(5) The department shall be authorized to enter into memoranda of understanding with licensing authorities for data-sharing purposes, as deemed necessary by the department.
(6) Information received and contained in records kept by the department or licensing authorities for the purposes of administering this chapter are confidential and shall not be disclosed pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), except as necessary for authorized employees of the State of California or any city, county, or city and county to perform official duties pursuant to this division or a local ordinance.
(7) Upon the request of a state or local law enforcement agency, licensing authorities shall allow access to or provide information contained within the database to assist law enforcement in their duties and responsibilities pursuant to this division.
(c) No later than July 1, 2020, the department, in consultation with the bureau, shall ensure that the track and trace program is fully integrated into the California Law Enforcement Telecommunications System described in Chapter 2 (commencing with Section 15100) of Part 6 of Title 2 of the Government Code.

SEC. 3.

 Section 26090 of the Business and Professions Code is amended to read:

26090.
 (a) Deliveries, as defined in this division, may only be made by a licensed retailer or microbusiness, or a licensed nonprofit under Section 26070.5.
(b) All employees of a retailer, microbusiness, or nonprofit delivering cannabis or cannabis products shall carry a copy of the licensee’s current license and a government-issued identification with a photo of the employee, such as a driver’s license. The employee shall present that license and identification upon request to state and local law enforcement, employees of regulatory authorities, and other state and local agencies enforcing this division.
(c) Before leaving the licensed premises, the licensed retailer shall upload the delivery inventory ledger to the track and trace system. If a licensed retailer has not obtained access to the track and trace system, the licensed retailer shall transmit the delivery inventory ledger to the bureau by electronic mail.

(c)

(d) During delivery, the licensee shall maintain a copy of the delivery request and shall make it available upon request of the licensing authority and law enforcement officers. The delivery request documentation shall comply with state and federal law regarding the protection of confidential medical information.

(d)

(e) A customer requesting delivery shall maintain a physical or electronic copy of the delivery request and shall make it available upon request by the licensing authority and law enforcement officers.

(e)

(f) A local jurisdiction shall not prevent delivery of cannabis or cannabis products on public roads by a licensee acting in compliance with this division and local law as adopted under Section 26200.

SEC. 4.

 Section 71041 of the Public Resources Code is amended to read:

71041.
 The CALGOLD program shall be reviewed periodically and, when necessary, updated to assist businesses in the state that would benefit from information on permitting and regulatory compliance, including emerging industries industries, cannabis industries, and life sciences industries.

SEC. 2.SEC. 5.

 The Legislature finds and declares that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act, for the following reason:
This act would prevent illegal production and distribution of cannabis by facilitating state and local enforcement of cannabis laws and regulations.