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SB-162 Cannabis: marketing.(2017-2018)

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Date Published: 08/21/2017 04:00 AM
SB162:v95#DOCUMENT

Amended  IN  Assembly  August 21, 2017
Amended  IN  Assembly  July 20, 2017
Amended  IN  Senate  April 19, 2017
Amended  IN  Senate  March 28, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 162


Introduced by Senator Allen
(Coauthor: Senator Nielsen)

January 19, 2017


An act to amend Section 26152 of the Business and Professions Code, relating to cannabis.


LEGISLATIVE COUNSEL'S DIGEST


SB 162, as amended, Allen. Cannabis: marketing.
Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act, which includes the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), enacted by the voters at the November 8, 2016, regulates the cultivation, distribution, and use of cannabis for medical purposes and for nonmedical purposes by people 21 years of age and older. Existing law places specified restrictions on the advertising or marketing of cannabis and cannabis products, including prohibiting advertising or marketing cannabis or cannabis products in a manner intended to encourage persons under 21 years of age to consume cannabis or cannabis products.
AUMA authorizes legislative amendment of specified sections of AUMA to implement specified substantive provisions of the proposition by a majority vote of each house if the amendments further specified purposes and intent.
This bill would specify that advertising or marketing cannabis or cannabis products in a manner intended to encourage persons under 21 years of age to consume cannabis or cannabis products includes all advertising of cannabis or cannabis products through the use of branded merchandise, including, but not limited to, clothing, hats, or other merchandise with the name or logo of the product.
This bill states findings and declarations of the Legislature and would declare that its provisions further specified purposes and the intent of the Control, Regulate and Tax Adult Use of Marijuana Act.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 (a) The Legislature finds and declares all of the following:
(1) The voters of the State of California passed Proposition 64 at the November 8, 2016, statewide general election, decriminalizing and regulating nonmedical cannabis use by adults over 21 years of age.
(2) Proposition 64 expressly prohibits the advertising of cannabis and cannabis products to persons under 21 years of age.

(3)The RAND Corporation Drug Policy Research Center and the American Academy of Pediatricians recommend a ban on advertising through branded merchandise by commercial cannabis and cannabis product licensees in order to reduce youth initiation and use of cannabis.

(3) In reviewing the restrictions on alcohol and tobacco marketing, the RAND Drug Policy Research Center found that a comprehensive ban on advertising through branded merchandise by persons and companies licensed to sell cannabis can be a justified public health approach.
(4) Research by The the RAND Corporation indicates that adolescents who are exposed to advertising of medical cannabis were more likely to report using cannabis or say they planned to use the substance in the future. The American College of Pediatricians’research Research by the American Academy of Pediatrics has found that cannabis has adverse effects on the adolescent brain and is associated with psychiatric illness and negative social outcomes.
(5) A great deal of research has shown that branded merchandise, including, but not limited to, t-shirts, sunglasses, or hats can be directly linked to higher use of tobacco and alcohol by teens, and in 1999, in order to reduce tobacco use by youth, the Attorney General and numerous tobacco companies entered into a Master Settlement Agreement that barred tobacco companies from advertising through the use of branded merchandise. In 2009, the United States Congress codified this agreement barring branded merchandise by tobacco companies and declared that obtaining branded merchandise reliably predicted smoking initiation, even when controlling for other factors that were shown to increase smoking rates among youths.
(6) The federal district court case of Commonwealth Brands, Inc. v. U.S. 678 F.Supp.2d 512 determined that the prohibition on branded merchandise was constitutional and narrowly tailored to meet the goal of reducing youth use. It cited evidence that youth obtained branded merchandise that had been distributed at adult-only venues and consequently, “there is no way to limit the distribution of these items to adults only.”
(7) In reviewing policies to reduce youth initiation and use of cannabis, The RAND Drug Policy Research Center and the American Academy of Pediatricians recommend Pediatrics recommends a comprehensive ban on advertising through branded merchandise by persons and companies licensed to sell cannabis.
(b) The Legislature finds and declares that this act implements the substantive provisions Sections 6 to 6.36, inclusive, of the Control, Regulate and Tax Adult Use of Marijuana Act and is consistent with and furthers the intent and purposes of the act as stated.

SEC. 2.

 Section 26152 of the Business and Professions Code is amended to read:

26152.
 A licensee shall not do any of the following:
(a) Advertise or market in a manner that is false or untrue in any material particular, or that, irrespective of falsity, directly, or by ambiguity, omission, or inference, or by the addition of irrelevant, scientific, or technical matter, tends to create a misleading impression.
(b) Publish or disseminate advertising or marketing containing any statement concerning a brand or product that is inconsistent with any statement on the labeling thereof.
(c) Publish or disseminate advertising or marketing containing any statement, design, device, or representation which tends to create the impression that the cannabis originated in a particular place or region, unless the label of the advertised product bears an appellation of origin, and such appellation of origin appears in the advertisement.
(d) Advertise or market on a billboard or similar advertising device located on an Interstate Highway or on a State Highway which crosses the California border.
(e) Advertise or market cannabis or cannabis products in a manner intended to encourage persons under 21 years of age to consume cannabis or cannabis products. This prohibition includes all advertising of cannabis or cannabis products through the use of branded merchandise, including, but not limited to, clothing, hats, or other merchandise with the name or logo of the product.
(f) Publish or disseminate advertising or marketing that is attractive to children.
(g) Advertise or market cannabis or cannabis products on an advertising sign within 1,000 feet of a day care center, school providing instruction in kindergarten or any grades 1 through 12, playground, or youth center.