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AB-1627 Adult Use Marijuana Act: testing laboratories.(2017-2018)

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Date Published: 02/18/2017 04:00 AM
AB1627:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1627


Introduced by Assembly Member Cooley

February 17, 2017


An act to amend Sections 26001, 26012, 26100, 26101, and 26104 of the Business and Professions Code, relating to marijuana.


LEGISLATIVE COUNSEL'S DIGEST


AB 1627, as introduced, Cooley. Adult Use Marijuana Act: testing laboratories.
Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), enacted by the voters at the November 8, 2016, statewide general election, regulates the cultivation, distribution, and use of marijuana for nonmedical purposes by people 21 years of age and older. Under existing law, the Bureau of Marijuana Control is responsible for licensing and regulating retail sales, distribution, and transportation, and the State Department of Public Health is responsible for licensing and regulating testing laboratories.
Existing law, the Medical Cannabis Regulation and Safety Act (MCRSA), regulates the cultivation, distribution, and use of cannabis for medical purposes. Under that act, the Bureau of Marijuana Control is responsible for licensing and regulating retail sales, distribution, transportation, and testing laboratories.
This bill would transfer the regulation of testing laboratories under AUMA from the State Department of Public Health to the bureau.
AUMA authorizes the Legislature to amend, by a majority vote, certain provisions of the act to implement specified substantive provisions, provided that the amendments are consistent with and further the purposes and intent of the act.
This bill would declare that its provisions implement specified substantive provisions of AUMA. The bill would also declare that its provisions further specified purposes and the intent of that act.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 26001 of the Business and Professions Code is amended to read:

26001.
 For purposes of this division, the following definitions shall apply:
(a) “Applicant” means the following:
(1) The owner or owners of a proposed licensee. “Owner” means all persons having (A) an aggregate ownership interest (other interest, other than a security interest, lien, or encumbrance) encumbrance, of 20 percent or more in the licensee and (B) the power to direct direct, or cause to be directed, the management or control of the licensee.
(2) If the applicant is a publicly traded company, “owner” includes the chief executive officer and any member of the board of directors and any person or entity with an aggregate ownership interest in the company of 20 percent or more. If the applicant is a nonprofit entity, “owner” means both the chief executive officer and any member of the board of directors.
(b) “Bureau” means the Bureau of Marijuana Control within the Department of Consumer Affairs.
(c) “Child resistant” means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.
(d) “Commercial marijuana activity” includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, labeling, transportation, distribution, delivery delivery, or sale of marijuana and marijuana products as provided for in this division.
(e) “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of marijuana.
(f) “Customer” means a natural person 21 years of age or over.
(g) “Day care center” shall have the same meaning as in Section 1596.76 of the Health and Safety Code.
(h) “Delivery” means the commercial transfer of marijuana or marijuana products to a customer. “Delivery” also includes the use by a retailer of any a technology platform platform, owned and controlled by the retailer, retailer or independently licensed under this division, that enables customers to arrange for or facilitate the commercial transfer by a licensed retailer of marijuana or marijuana products.
(i) “Director” means the Director of the Department of Consumer Affairs.
(j) “Distribution” means the procurement, sale, and transport of marijuana and marijuana products between entities licensed pursuant to this division.
(k) “Fund” means the Marijuana Control Fund established pursuant to Section 26210.
(l) “Kind” means applicable type or designation regarding a particular marijuana variant or marijuana product type, including, but not limited to, strain name or other grower trademark, or growing area designation.
(m) “License” means a state license issued under this division.
(n) “Licensee” means any a person or entity holding a license under this division.
(o) “Licensing authority” means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.
(p) “Local jurisdiction” means a city, county, or city and county.
(q) “Manufacture” means to compound, blend, extract, infuse, or otherwise make or prepare a marijuana product.
(r) “Manufacturer” means a person that conducts the production, preparation, propagation, or compounding of marijuana or marijuana products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages marijuana or marijuana products or labels or re-labels its container, that holds a state license pursuant to this division.
(s) “Marijuana” has the same meaning as in Section 11018 of the Health and Safety Code, except that it does not include marijuana that is cultivated, processed, transported, distributed, or sold for medical purposes under Chapter 3.5 (commencing with Section 19300) of Division 8.
(t) “Marijuana accessories” has the same meaning as in Section 11018.2 of the Health and Safety Code.
(u) “Marijuana products” has the same meaning as in Section 11018.1 of the Health and Safety Code, except that it does not include marijuana products manufactured, processed, transported, distributed, or sold for medical purposes under Chapter 3.5 (commencing with Section 19300) of Division 8.
(v) “Nursery” means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of marijuana.
(w) “Operation” means any an act for which licensure is required under the provisions of this division, or any commercial transfer of marijuana or marijuana products.
(x) “Package” means any a container or receptacle used for holding marijuana or marijuana products.
(y) “Person” includes any an individual, firm, copartnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular.
(z) “Purchaser” means the customer who is engaged in a transaction with a licensee for purposes of obtaining marijuana or marijuana products.
(aa) “Sell,” “sale,” and “to sell” include any transaction whereby, for any consideration, title to marijuana is transferred from one person to another, and includes the delivery of marijuana or marijuana products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of marijuana or marijuana products by a licensee to the licensee from whom such that marijuana or marijuana product was purchased.

(bb)

(ab) “Testing service” means a laboratory, facility, or entity in the state, that offers or performs tests of marijuana or marijuana products, including the equipment provided by such that laboratory, facility, or entity, and that is both of the following:
(1) Accredited by an accrediting body that is independent from all other persons involved in commercial marijuana activity in the state.
(2) Registered with the State Department of Public Health. Bureau of Marijuana Control.

(cc)

(ac) “Unique identifier” means an alphanumeric code or designation used for reference to a specific plant on a licensed premises.

(dd)

(ad) “Unreasonably impracticable” means that the measures necessary to comply with the regulations require such a high investment of risk, money, time, or any other resource or asset, that the operation of a marijuana establishment is not worthy of being carried out in practice by a reasonably prudent business person.

(ee)

(ae) “Youth center” shall have the same meaning as in Section 11353.1 of the Health and Safety Code.

SEC. 2.

 Section 26012 of the Business and Professions Code is amended to read:

26012.
 (a) It being a matter of statewide concern, except as otherwise authorized in this division:
(1) The Department of Consumer Affairs shall have the exclusive authority to create, issue, renew, discipline, suspend, or revoke licenses for the transportation, storage unrelated to manufacturing activities, distribution, testing, and sale of marijuana within the state.
(2) The Department of Food and Agriculture shall administer the provisions of this division related to and associated with the cultivation of marijuana. The Department of Food and Agriculture shall have the authority to create, issue, and suspend or revoke cultivation licenses for violations of this division.
(3) The State Department of Public Health shall administer the provisions of this division related to and associated with the manufacturing and testing of marijuana. The State Department of Public Health shall have the authority to create, issue, and suspend or revoke manufacturing and testing licenses for violations of this division.
(b) The licensing authorities and the bureau shall have the authority to collect fees in connection with activities they regulate concerning marijuana. The bureau may create licenses in addition to those identified in this division that the bureau deems necessary to effectuate its duties under this division.
(c) Licensing authorities shall begin issuing licenses under this division by January 1, 2018.

SEC. 3.

 Section 26100 of the Business and Professions Code is amended to read:

26100.
 (a) The State Department of Public Health shall promulgate regulations governing the licensing of marijuana manufacturers and testing laboratories. manufacturers. Licenses to be issued are as follows:

(a)

(1) “Manufacturing Level 1,” for sites that manufacture marijuana products using nonvolatile solvents, or no solvents.

(b)

(2) “Manufacturing Level 2,” for sites that manufacture marijuana products using volatile solvents.
(b) (1) The Bureau of Marijuana Control shall promulgate regulations governing the licensing of marijuana testing laboratories as follows:

(c)

(2) “Testing,” for testing of marijuana and marijuana products. Testing licensees shall have their facilities or devices licensed according to regulations set forth by the department. bureau. A testing licensee shall not hold a license in another license category of this division and shall not own or have ownership interest in a non-testing facility licensed pursuant to this division.

(d)

(c) For purposes of this section, “volatile solvents” shall have the same meaning as in subdivision (d) of Section 11362.3 of the Health and Safety Code unless otherwise provided by law or regulation.

SEC. 4.

 Section 26101 of the Business and Professions Code is amended to read:

26101.
 (a) Except as otherwise provided by law, no marijuana or marijuana products may be sold pursuant to a license provided for under this division unless a representative sample of such that marijuana or marijuana product has been tested by a certified testing service to determine:
(1) Whether the chemical profile of the sample conforms to the labeled content of compounds, including, but not limited to, all of the following:
(A) Tetrahydrocannabinol (THC).
(B) Tetrahydrocannabinolic Acid (THCA).
(C) Cannabidiol (CBD).
(D) Cannabidiolic Acid (CBDA).
(E) The terpenes described in the most current version of the cannabis inflorescence monograph published by the American Herbal Pharmacopoeia.
(F) Cannabigerol (CBG).
(G) Cannabinol (CBN).
(2) That the presence of contaminants does not exceed the levels in the most current version of the American Herbal Pharmacopoeia monograph. For purposes of this paragraph, contaminants includes, but is not limited to, all of the following:
(A) Residual solvent or processing chemicals, including explosive gases, such as Butane, propane, O2 or H2, and poisons, toxins, or carcinogens, such as Methanol, Isopropyl Alcohol, Methylene Chloride, Acetone, Benzene, Toluene, and Tri-chloro-ethylene.
(B) Foreign material, including, but not limited to, hair, insects, or similar or related adulterant.
(C) Microbiological impurity, including total aerobic microbial count, total yeast mold count, P. aeruginosa, aspergillus spp., s. aureus, aflatoxin B1, B2, G1, or G2, or ochratoxin A.
(b) Residual levels of volatile organic compounds shall satisfy standards of the cannabis inflorescence monograph set by the United States Pharmacopeia (U.S.P. Chapter 467).
(c) The testing required by paragraph (a) shall be performed in a manner consistent with general requirements for the competence of testing and calibrations activities, including sampling, using standard methods established by the International Organization for Standardization, specifically ISO/IEC 17020 and ISO/IEC 17025 to test marijuana and marijuana products that are approved by an accrediting body that is a signatory to the International Laboratory Accreditation Cooperation Mutual Recognition Agreement.
(d) Any pre-sale inspection, testing transfer, or transportation of marijuana products pursuant to this section shall conform to a specified chain of custody protocol and any other requirements imposed under this division.
(e) The State Department of Public Health and the Department of Pesticide Regulation shall provide assistance to the bureau in developing regulations, as requested by the bureau.

SEC. 5.

 Section 26104 of the Business and Professions Code is amended to read:

26104.
 (a) A licensed testing service shall, in performing activities concerning marijuana and marijuana products, comply with the requirements and restrictions set forth in applicable law and regulations.
(b) The State Department of Public Health Bureau of Marijuana Control shall develop procedures to: to do all of the following:
(1) Ensure that testing of marijuana and marijuana products occurs prior to distribution to retailers, microbusinesses, or nonprofits licensed under Section 26070.5; 26070.5.
(2) Specify how often licensees shall test marijuana and marijuana products, and that the cost of testing marijuana shall be borne by the licensed cultivators and the cost of testing marijuana products shall be borne by the licensed manufacturer, and that the costs of testing marijuana and marijuana products shall be borne by a nonprofit licensed under Section 26070.5; and 26070.5.
(3) Require destruction of harvested batches whose testing samples indicate noncompliance with health and safety standards promulgated by the State Department of Public Health, bureau, unless remedial measures can bring the marijuana or marijuana products into compliance with quality assurance standards as promulgated by the State Department of Public Health. bureau.

SEC. 6.

 The Legislature finds and declares that this bill implements Section 6.1 of the Control, Regulate and Tax Adult Use of Marijuana Act, and that it is consistent with and furthers the purposes of the act as stated in Section 3.