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SB-311 Medical cannabis and nonmedical marijuana: testing by a licensee.(2017-2018)

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Date Published: 02/13/2017 09:00 PM
SB311:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 311


Introduced by Senator Pan

February 13, 2017


An act to amend Section 19326 of the Business and Professions Code, relating to cannabis and marijuana.


LEGISLATIVE COUNSEL'S DIGEST


SB 311, as introduced, Pan. Medical cannabis and nonmedical marijuana: testing by a licensee.
Existing law, the Medical Cannabis Regulation and Safety Act and the Adult Use of Marijuana Act, requires all cultivators, manufacturers, and licensees holding a producing dispensary license in addition to a cultivation or manufacturing license to send all medical cannabis, medical cannabis products, marijuana, and marijuana products cultivated or manufactured to a distributor for presale quality assurance and inspection by a distributor and for a batch testing by a testing laboratory prior to distribution to a dispensary or retailer. Existing law authorizes a licensee to perform testing on the licensee’s premises for the purposes of quality assurance of the product in conjunction with reasonable business operations.
This bill would also authorize a licensee to perform testing on the licensee’s premises of cannabis or cannabis products obtained from another licensee for the purpose of quality assurance. The bill would specify that onsite testing does not exempt the licensee from the existing requirements of quality assurance testing by a distributor and testing laboratory.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 19326 of the Business and Professions Code is amended to read:

19326.
 (a) A person other than a transporter shall not transport medical cannabis or medical cannabis products from one licensee to another licensee, unless otherwise specified in this chapter.
(b) (1) All cultivators, manufacturers, and licensees holding a producing dispensary license in addition to a cultivation or manufacturing license shall send all medical cannabis and medical cannabis products cultivated or manufactured to a distributor, as defined in Section 19300.5, for presale quality assurance and inspection by a distributor and for a batch testing by a testing laboratory prior to distribution to a dispensary.
(2) Notwithstanding paragraph (1), a cultivator shall not be required to send medical cannabis to a distributor if the medical cannabis is to be used, sold, or otherwise distributed by methods approved pursuant to this chapter by a manufacturer for further manufacturing.
(c) (1) Upon receipt of medical cannabis or medical cannabis products from a cultivator, manufacturer, or a licensee holding a producing dispensary license in addition to a cultivation or a manufacturing license, the distributor shall first inspect the product to ensure the identity and quantity of the product and ensure a random sample of the medical cannabis or medical cannabis product is tested by a testing laboratory.
(2) Upon issuance of a certificate of analysis by the testing laboratory that the product is fit for dispensing medical cannabis and medical cannabis products shall undergo a quality assurance review by the distributor prior to distribution to ensure the quantity and content of the medical cannabis or medical cannabis product, and for tracking and taxation purposes by the state.
(3) This section does not limit the ability of licensed cultivators, manufacturers, and dispensaries to directly enter into contracts with one another indicating the price and quantity of medical cannabis or medical cannabis products to be distributed. However, a distributor responsible for executing the contract is authorized to collect a fee for the services rendered, including, but not limited to, costs incurred by a testing laboratory, as well as applicable state or local taxes and fees.
(d) Medical cannabis and medical cannabis products shall be tested by a licensed testing laboratory, prior to dispensing, pursuant to Section 19344.
(e) This chapter shall does not prohibit a licensee from performing testing on the licensee’s premises for the purposes of quality assurance of the product in conjunction with reasonable business operations. This chapter also does not prohibit a licensee from performing testing on the licensee’s premises of cannabis or cannabis products obtained from another licensee for the purpose of quality assurance. On-site On site testing by the licensee shall not be certified by the Bureau of Medical Cannabis Regulation. Marijuana Control and does not exempt the licensee from the requirements of quality assurance testing at a testing laboratory pursuant to this section.