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SB-692 Cannabis: trade samples.(2019-2020)

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Date Published: 01/15/2020 09:00 PM
SB692:v97#DOCUMENT

Amended  IN  Senate  January 15, 2020
Amended  IN  Senate  January 06, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 692

Introduced by Senator Skinner

February 22, 2019

An act to add Section 26153.1 to the Business and Professions Code, relating to cannabis.


LEGISLATIVE COUNSEL'S DIGEST


SB 692, as amended, Skinner. Cannabis: trade samples.
The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. 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 gives the Bureau of Cannabis Control in the Department of Consumer Affairs the power, duty, purpose, responsibility, and jurisdiction to regulate commercial cannabis activity in the state as provided by the act. AUMA also prohibits a licensee from giving away any amount of cannabis or cannabis product as part of a business promotion or other commercial activity.
This bill, on January 1, 2021, 2022, or upon the effective date of specified regulations by the bureau, whichever occurs first, would allow a licensee authorized to engage in distribution or retail sales of cannabis to designate cannabis or a cannabis product as a trade sample at any time while the cannabis or cannabis product is in the possession of the licensee and would impose specific requirements on the licensee making the designation. The bill would prohibit the sale or donation of cannabis or a cannabis product that is designated a trade sample, but would allow those trade samples to be given for no consideration to an employee of the licensee that designated the trade sample or to a licensee authorized to engage in distribution or retail sales of cannabis, subject to specified requirements, including that a trade sample be given only for specified purposes. The bill would also require trade samples given to another licensee to be recorded in the track and trace system and would require a licensee to maintain records of cannabis trade samples given to employees. The bill would require the bureau to establish by regulation a definition of trade sample, the quantity of cannabis and cannabis goods that a licensee is authorized to designate as a trade sample, and any other provisions necessary to implement the provisions of this bill.
MAUCRSA provides that cannabis batches are subject to quality assurance and testing prior to sale at a retailer, microbusiness, or specified nonprofit, except as provided.
This bill would require cannabis or cannabis products designated as a trade sample to be subject to quality assurance and testing.
AUMA authorizes the Legislature to amend the act to further the purposes and intent of the act with a 2/3 vote of the membership of both houses of the Legislature, except as provided.
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 26153.1 is added to the Business and Professions Code, to read:

26153.1.
 (a) On January 1, 2021, 2022, or upon the effective date of regulations by the bureau pursuant to subdivision (g), whichever occurs first, a licensee authorized to engage in distribution or retail sales of cannabis may designate cannabis or a cannabis product as a trade sample at any time while the cannabis or cannabis product is in the possession of the licensee.
(b) Upon the designation of the cannabis or cannabis product as a trade sample, the licensee shall do both of the following:
(1) Record the associated quantity, product type, and unique identifiers of the cannabis or cannabis product into the track and trace program established pursuant to Section 26067.
(2) Label the cannabis or cannabis product with the following: “TRADE SAMPLE. NOT FOR RESALE OR DONATION.”
(c) Cannabis or cannabis products designated as a trade sample shall only be transported between licensees by an employee of a licensed distributor or microbusiness.
(d) Cannabis or cannabis products designated as a trade sample shall not be sold or donated by any licensee.
(e) Notwithstanding Section 26153, cannabis or cannabis products designated as a trade sample may be given for no consideration to an employee of the licensee that designated the trade sample or to a licensee authorized to engage in distribution or retail sales of cannabis, subject to all the following requirements:
(1) A trade sample shall only be given for the purposes of educating and informing licensees and their employees about new or existing cannabis or cannabis products.
(2) Cannabis or cannabis products designated as a trade sample given to another licensee shall be recorded in the track and trace system pursuant to Section 26067.
(3) A licensee shall maintain records of cannabis or cannabis products designated as a trade sample that are given to employees.
(f) Cannabis or cannabis products shall not be given to a retail customer.
(g) The bureau shall establish by regulation a definition of trade sample, the quantity of cannabis and cannabis products that a licensee may designate as trade samples, and any other provisions necessary to implement this section.
(h) Cannabis or cannabis products designated as a trade sample shall be subject to quality assurance and testing pursuant to Section 26110.

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 of 2016.