Today's Law As Amended


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AB-729 Nonmedical marijuana: licensee regulation.(2017-2018)



As Amends the Law Today


SECTION 1.

 Section 26031 of the Business and Professions Code is amended to read:

26031.
 (a) The department may suspend, revoke, place on probation with terms and conditions, or otherwise discipline licenses issued by the department and fine a licensee,  Each licensing authority may suspend or revoke licenses,  after proper notice and hearing to the licensee, except as provided in Section 26031.01,  if the licensee is found to have committed any of the acts or omissions constituting grounds for disciplinary action. The disciplinary proceedings under this chapter shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director of each licensing authority  shall have all the powers granted therein. by that chapter. 
(b) The (1)   department may suspend or revoke a license when a local agency has notified the department that a licensee within its jurisdiction is in violation of state rules and regulations relating to commercial cannabis activities, and the department, through an investigation, has determined that the violation is grounds for suspension or revocation of the license. A licensing authority shall suspend a license for a third or subsequent violation of Section 26140 that occurs within 36 months of the initial violation. 
(c) The department may take disciplinary action against a licensee for any violation of this division when the violation was committed by the licensee’s officers, directors, owners, agents, or employees while acting on behalf of the licensee or engaged in commercial cannabis activity.
(d) (2)  The suspension or expiration of a license issued by the department, or its suspension, forfeiture, or cancellation by order of the department or by order of a court of law, or its surrender without the written consent of the department, shall not, during any period in which it may be renewed, restored, reissued, or reinstated, deprive the department of its authority to institute or continue a disciplinary proceeding against the licensee upon any ground provided by law or to enter an order suspending or revoking the license or otherwise taking disciplinary action against the licensee on any such ground. A licensing authority may revoke a license for a third violation of Section 26140 that occurs within any 36-month period. This subdivision does not limit the authority or discretion of a licensing authority to revoke a license prior to a third violation if the circumstances warrant that penalty. 

SEC. 2.

 Section 26036.1 is added to the Business and Professions Code, to read:

26036.1.
 (a) (1) A peace officer, or employee of a licensing authority or a state or local agency granted limited peace officer status pursuant to paragraph (6) of subdivision (a) of Section 830.11 of the Penal Code, upon presenting appropriate credentials, may enter a place described in paragraph (3) and conduct inspections in accordance with this section.
(2) Inspections shall be performed in a reasonable manner and at times that are reasonable under the circumstances, taking into consideration the normal business hours of the place to be inspected.
(3) Inspections may be at any place at which marijuana or marijuana products are sold, produced, or stored or at any site where evidence of activities involving evasion of marijuana or marijuana products tax may be discovered.
(4) Inspections shall be requested or conducted no more than once in a 24-hour period.
(b) A person that refuses to allow an inspection has violated this division.

SEC. 3.

 Section 26054 of the Business and Professions Code is amended to read:

26054.
 (a) A licensee shall not sell alcoholic beverages or tobacco products on or at any premises licensed under this division. also be licensed as a retailer of alcoholic beverages under Division 9 (commencing with Section 23000) or of tobacco products. 
(b) A premises licensed  licensee  under this division shall  not be located within a 600-foot radius of a school providing instruction in kindergarten or any grades 1 through 12, daycare center, or youth center  to 12, inclusive, day care center, youth center, playground, hospital, or church  that is in existence at the time the license is issued, unless the department  a licensing authority  or a local jurisdiction specifies a different radius. The distance specified in this section shall be measured in the same manner as provided in subdivision (c) of Section 11362.768 of the Health and Safety Code unless otherwise provided by law.
(c) It shall be lawful under state and local law, and shall  not be a violation of state or local law law,  for a business engaged in the manufacture of cannabis marijuana  accessories to possess, transport, purchase, purchase  or otherwise obtain small amounts of cannabis marijuana  or cannabis marijuana  products as necessary to conduct research and development related to the cannabis those marijuana  accessories, provided the cannabis marijuana  and cannabis marijuana  products are obtained from a person or entity  licensed under this division or Chapter 3.5 (commencing with Section 19300) of Division 8 who is  permitted to provide or deliver the cannabis marijuana  or cannabis marijuana  products.
(d) It shall not be a violation of state or local law for an agent of the department to possess, transport, or obtain cannabis or cannabis products as necessary to conduct activities reasonably related to the duties of the department.
(e) It shall not be a violation of state or local law for an agent of a state agency, as defined in Section 1100 of the Government Code, or a local agency, as defined in Section 50001 of the Government Code, to possess, transport, or obtain cannabis or cannabis products as necessary to conduct activities reasonably related to the duties of the state or local agency.

SEC. 4.

 Section 26070 of the Business and Professions Code is amended to read:

26070.

Retailers and Distributors.
26070.
 Retailers, Distributors, and Microbusinesses.
(a) State licenses to be issued by the department related to the sale and distribution of cannabis and cannabis products  Department of Consumer Affairs  are as follows:
(1) A retailer shall have a licensed premises which is a physical location from which commercial cannabis activities are conducted. A retailer’s premises may be closed to the public. A retailer may conduct sales exclusively by delivery. “Retailer,” for the retail sale and delivery of marijuana or marijuana products to customers. 
(2) “Distributor,” for the distribution of marijuana and marijuana products.  A distributor licensee shall be bonded and insured at a minimum level established by the department. licensing authority. 
(3) (A) “Microbusiness,”   for the cultivation of marijuana on an area less than 10,000 square feet and to act as a licensed distributor, Level 1 manufacturer, and retailer under this division, provided such licensee complies with all requirements imposed by this division on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the licensee engages in such activities.  Microbusiness licenses that authorize cultivation of cannabis marijuana  shall include the license conditions described in subdivision (b) of Section 26060.1. conditions requested by the Department of Fish and Wildlife and the State Water Resources Control Board to ensure that individual and cumulative effects of water diversion and discharge associated with cultivation do not affect the instream flows needed for fish spawning, migration, and rearing, and the flow needed to maintain flow variability, and otherwise protect fish, wildlife, fish and wildlife habitat, and water quality. 
(B)  The department shall establish a process by which an applicant for a microbusiness license can demonstrate compliance with all the requirements under this division for the activities that will be conducted under the license.
(b) (a)  The department bureau  shall establish minimum security and transportation safety requirements for the commercial distribution and delivery of cannabis marijuana  and cannabis products. Except as provided in subdivision (d) of Section 26110, the transportation of cannabis and cannabis products shall only be conducted by persons holding a distributor license under this division or employees of those persons. Transportation  marijuana products. The transportation  safety standards established by the department bureau  shall include, but not be limited to, minimum standards governing the types of vehicles in which cannabis marijuana  and cannabis marijuana  products may be distributed and delivered and minimum qualifications for persons eligible to operate such those  vehicles.
(c) The driver of a vehicle transporting or transferring cannabis or cannabis products shall be directly employed by a licensee authorized to transport or transfer cannabis or cannabis products.
(d) Notwithstanding any other law, all vehicles transporting cannabis and cannabis products for hire shall be required to have a valid motor carrier permit pursuant to Chapter 2 (commencing with Section 34620) of Division 14.85 of the Vehicle Code. The Department of the California Highway Patrol shall have authority over the safe operation of these vehicles, including, but not limited to, requiring licensees engaged in the transportation of cannabis or cannabis products to participate in the Basic Inspection of Terminals (BIT) program pursuant to Section 34501.12 of the Vehicle Code.
(e) Prior to transporting cannabis or cannabis products, a licensed distributor shall do both of the following:
(1) Complete an electronic shipping manifest as prescribed by the department. The shipping manifest shall include the unique identifier, pursuant to Section 26067, issued by the department for the cannabis product.
(2) Securely transmit the manifest to the department and the licensee that will receive the cannabis product.
(f) During transportation, the licensed distributor shall maintain a physical copy of the shipping manifest and make it available upon request to agents of the department and law enforcement officers.
(g) The licensee receiving the shipment shall maintain each electronic shipping manifest and shall make it available upon request to the department and any law enforcement officers.
(h) Upon receipt of the transported shipment, the licensee receiving the shipment shall submit to the department a record verifying receipt of the shipment and the details of the shipment.
(i) Transporting, or arranging for or facilitating the transport of, cannabis or cannabis products in violation of this chapter is grounds for disciplinary action against the license.
(j) (b)  Licensed retailers and microbusinesses, and licensed nonprofits under Section 26070.5, shall implement security measures reasonably designed to prevent unauthorized entrance into areas containing cannabis marijuana  or cannabis marijuana  products and theft of cannabis marijuana  or cannabis marijuana  products from the premises. These security measures shall include, but not be limited to, all of the following:
(1) Prohibiting individuals from remaining on the licensee’s premises if they are not engaging in activity expressly related to the operations of the retailer. dispensary. 
(2) Establishing limited access areas accessible only to authorized personnel.
(3) Other than limited amounts of cannabis marijuana  used for display purposes, samples, or immediate sale, storing all finished cannabis marijuana  and cannabis marijuana  products in a secured and locked room, safe, or vault, and in a manner reasonably designed to prevent diversion, theft, and loss.
(k) (4)  (A)  A retailer shall notify the department and the appropriate law enforcement authorities within 24 hours after discovering any of the following: window or transparent door of a licensee’s premises shall not have more than 33 percent of the square footage covered by advertisements or signs of any sort and shall be maintained in a manner that ensures that law enforcement personnel have a clear and unobstructed view of the interior of the premises, including the area in which any cash register is located, from the exterior public sidewalk or the entrance to the premises. 
(1) Significant discrepancies identified during inventory. The level of significance shall be determined by the department.
(2) Diversion, theft, loss, or any criminal activity pertaining to the operation of the retailer.
(3) Diversion, theft, loss, or any criminal activity by any agent or employee of the retailer pertaining to the operation of the retailer.
(4) (B)  The loss or unauthorized alteration of records related to cannabis or cannabis products, registered qualifying patients, primary caregivers, or retailer employees or agents. Subparagraph (A) does not apply to premises with no windows or premises with windows only located at a height that precludes a pedestrian’s view of the interior of the premises from outside the premises. 
(5) Any other breach of security.

SEC. 5.

 Section 26140 of the Business and Professions Code is amended to read:

26140.
 (a) An A-licensee shall not: A licensee shall not do any of the following: 
(1) Sell cannabis marijuana  or cannabis marijuana  products to persons under 21 years of age.
(2) Allow any person under 21 years of age on its premises, unless the A-licensee holds an M-license and the licensed premises for the A-license and M-license are the same. premises. 
(3) Employ or retain persons under 21 years of age.
(4) Sell or transfer cannabis marijuana  or cannabis marijuana  products unless the person to whom the cannabis marijuana  or cannabis marijuana  product is to be sold or transferred  first presents documentation that reasonably appears to be a valid government-issued identification card showing that the person is 21 years of age or older.
(b) (1) A licensee shall post a sign, visible from each public entrance, and a similar sign inside the premises that reads “No Person Under 21 Allowed.”
(2) A licensee that is also a dispensary licensed under Chapter 3.5 (commencing with Section 19300) of Division 8 may include language on the sign that reads “without identification authorizing the purchase of medical cannabis.”
(b) (c)  Persons under 21 years of age may be used by peace officers in the enforcement of this division and to apprehend licensees, or employees or agents of licensees, or other persons who sell or furnish cannabis marijuana  to minors. Notwithstanding any other  law, a person under 21 years of age who purchases or attempts to purchase cannabis or cannabis products  marijuana  while under the direction of a peace officer is immune from prosecution for that purchase or attempt to purchase cannabis or cannabis products. Guidelines with respect to the use of persons under 21 years of age as decoys shall be adopted and published by the department in accordance with the rulemaking portion of the Administrative Procedure Act (Chapter  marijuana. In accordance with Chapter  3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). Code, the bureau shall adopt and publish guidelines for the use of persons under 21 years of age in inspections conducted pursuant to subdivision (c) that shall include, but not be limited to, all of the following: 
(1) An enforcing agency may use persons under 21 years of age in random inspections to determine if sales of marijuana or marijuana products are being made to persons under 21 years of age.
(2) A photograph or video recording of the person under 21 years of age shall be taken prior to each inspection or shift of inspections and shall be retained by the enforcing agency for purposes of verifying appearance.
(3) An enforcing agency may use video recording equipment when conducting the inspections to record and document illegal sales or attempted sales.
(4) The person who is under 21 years of age, if questioned about his or her age, need not state his or her actual age, but shall present a true and correct identification if verbally asked to present it. Failure on the part of the person under 21 years of age to provide true and correct identification, if verbally requested, is a defense to an action pursuant to this section.
(5) The person under 21 years of age shall be under the supervision of a regularly employed peace officer during the inspection.
(6) All persons under 21 years of age used by an enforcing agency shall appear to be a person under 21 years of age. It is a defense to an action under this division that the person’s appearance was not that which could be generally expected of a person under 21 years of age, under the actual circumstances presented to the retailer at the time of the alleged offense.
(7) Following the completion of the sale, the peace officer accompanying the person under 21 years of age shall reenter the premise and shall inform the seller of the random inspection. Following an attempted sale, the enforcing agency shall notify the retailer of the inspection.
(8) Failure of the person under 21 years of age or the enforcing agency to comply with the procedures set forth in this subdivision is a defense to an action brought pursuant to this section.
(c) (d)  Notwithstanding subdivision (a), an M-licensee may: a licensee that is also a dispensary licensed under Chapter 3.5 (commencing with Section 19300) of Division 8 may do both of the following: 
(1) Allow on the premises a person 18 years of age or older who possesses a valid government-issued identification card, and either a valid county-issued identification  identification  card under Section 11362.712 11362.71  of the Health and Safety Code or a valid physician’s recommendation for themselves or for a person for whom that person is a primary caregiver. and a valid government-issued identification card. 
(2) Allow a person 21 years of age or older on its premises if the M-licensee holds an A-license and the licensed premises for the M-license and A-license are the same.
(3) (2)  Sell cannabis, cannabis marijuana, marijuana  products, and cannabis marijuana  accessories to a person 18 years of age or older who possesses a valid government-issued identification card and either a valid county-issued identification card under Section 11362.712 identification card under Section 11362.71  of the Health and Safety Code or a valid physician’s recommendation for themselves or for a person for whom the person is a primary caregiver. and a valid government-issued identification card. 
(4) The department may establish requirements for the purchase of cannabis, cannabis products, or cannabis accessories by a primary caregiver for a patient to ensure that the status of a person as a primary caregiver is verified.

SEC. 6.

 Section 26141 is added to the Business and Professions Code, to read:

26141.
 (a) For purposes of preventing violation of this division, a licensee or its agents or employees may refuse to sell marijuana to a person who is unable to produce adequate personal identification that he or she is 21 years of age or older.
(b) A licensee, or its agent or employee, may seize any personal identification presented by a person that shows the person to be under 21 years of age or that is false, if within 24 hours of seizure, a receipt is given to the local law enforcement agency that has jurisdiction over the licensed premises. A licensee’s decision not to seize the personal identification pursuant to this subdivision shall not create any civil or criminal liability.

SEC. 7.

 Section 26142 is added to the Business and Professions Code, to read:

26142.
 Marijuana or marijuana products shall not be sold, offered for sale, or distributed from a vending machine or appliance, or any other coin- or token-operated mechanical device designed or used for vending purposes, including, but not limited to, machines or devices that use remote control locking mechanisms.

SEC. 8.

 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, scientific  or technical matter, tends to create a misleading impression.
(b) Publish or disseminate advertising or marketing containing any a  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 a  statement, design, device, or representation which that  tends to create the impression that the cannabis marijuana  originated in a particular place or region, unless the label of the advertised product bears an appellation of origin, and such that  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. interstate highway or state highway that crosses the border of any other state. 
(e) Advertise or market cannabis marijuana  or cannabis marijuana  products in a manner intended to encourage persons under 21 years of age to consume cannabis marijuana  or cannabis marijuana  products.
(f) Publish or disseminate advertising or marketing that is attractive to children. containing symbols, language, music, gestures, cartoon characters, or other content elements known to appeal primarily to persons below the legal age of consumption. 
(g) Advertise or market cannabis marijuana  or cannabis marijuana  products on an advertising sign within 1,000 feet of a day care center, school providing instruction in kindergarten or any grades 1 to through  12, inclusive, playground, or youth center. youth center, or church. 
(h) Publish or disseminate advertising or marketing while the licensee’s license is suspended.
SEC. 9.
 (a) The Legislature finds and declares that Sections 1, 3, 5, and 8 of this act amending Sections 26031, 26054, 26070, and 26152 of, and that Sections 2, 6, and 7 of this act adding Sections 26036.1, 26141, and 26142 to, the Business and Professions Code further the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act, because these amendments (a) deny access to marijuana by persons younger than 21 years age who are not medical marijuana patients, (b) prevent access to marijuana by minors, (c) ensure that marijuana is taxed in a way that drives out the illicit market for marijuana and discourages use by minors, (d) prevent illegal production or distribution of marijuana, and (e) protect public safety.
(b) The Legislature finds and declares that Section 4 of this bill, amending Section 26140 of the Business and Professions Code, implements Section 6.1 of the Control, Regulate and Tax Adult Use of Marijuana Act, and that it is consistent with and further the purposes of the act as stated in Section 3 of that act.
SEC. 10.
 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.