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

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Date Published: 02/22/2019 04:00 AM
AB1288:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill No. 1288


Introduced by Assembly Member Cooley

February 21, 2019


An act to amend Section 26067 of the Business and Professions Code, relating to cannabis.


LEGISLATIVE COUNSEL'S DIGEST


AB 1288, as introduced, 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 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 by the track and trace program to additionally include the date of retail sale to a customer and whether the sale is on the retail premises or by delivery.
(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.
(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 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.
(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 understandings understanding with licensing authorities for data sharing 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. 2.

 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.