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SB-67 Cannabis: marketing: appellations of origin: county, city, or city and county of origin.(2019-2020)

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Date Published: 06/30/2020 11:39 AM
SB67:v94#DOCUMENT

Amended  IN  Assembly  July 13, 2020
Amended  IN  Senate  March 21, 2019
Amended  IN  Senate  March 04, 2019
Amended  IN  Senate  February 25, 2019
Amended  IN  Senate  February 19, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 67


Introduced by Senator McGuire
(Principal coauthor: Assembly Member Wood)

January 08, 2019


An act to add and repeal Section 26050.3 of the Business and Professions Code, relating to cannabis, and declaring the urgency thereof, to take effect immediately. An act to amend Section 26063 of the Business and Professions Code, relating to cannabis.


LEGISLATIVE COUNSEL'S DIGEST


SB 67, as amended, McGuire. Cannabis: temporary licenses. marketing: appellations of origin: county, city, or city and county of origin.
(1) Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), approved by the voters at the November 8, 2016, statewide general election, regulates the cultivation, distribution, transport, storage, manufacturing, testing, processing, sale, and use of marijuana for nonmedical purposes by individuals 21 years of age and older. 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 requires the Department of Food and Agriculture, no later than January 1, 2018, to establish standards by which a licensed cultivator may designate a county of origin for cannabis, and requires for the designation that 100% of the cannabis be produced within the designated county, as specified. MAUCRSA requires the department, no later than January 1, 2021, to establish a process by which licensed cultivators may establish appellations of origin for cannabis produced in certain geographical areas of California, instead of by county. MAUCRSA prohibits cannabis from being represented to consumers, as specified, as produced in a California county unless the cannabis was produced in that county. MAUCRSA prohibits the name of a California county, including any similar name that is likely to mislead consumers as to the kind of cannabis contained in the product, from being used, as specified, unless 100% of the cannabis contained in the product was produced in that county.
This bill would limit the establishment of appellations of origin to cannabis planted in the ground, in open air, with no artificial light during the flowering stage of cultivation until harvest. The bill would also require the department to establish standards by which a licensed cultivator may designate a city or city and county of origin for cannabis produced 100% within the designated city or city and county. The bill would apply the same above-described prohibitions against misrepresentations related to the county of origin and the misleading use of county names to city or city and county origins and names.
(2) AUMA authorizes the Legislature to amend its provisions by a 2/3 vote of both houses, without submission to the voters, to further the purposes and intent of AUMA.
This bill would declare that its provisions further the purposes and intent of AUMA.

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, until January 1, 2019, authorized a state licensing authority, which is defined to include the Department of Food and Agriculture, to issue a temporary license if an applicant submitted, among other things, a copy of a specified authorization issued by a local jurisdiction. MAUCRSA required the temporary license to be valid for a period of 120 days and authorized the temporary license to be extended for an additional 90-day period at the discretion of the licensing authority. MAUCRSA did not entitle an applicant or licensee to a hearing or an appeal after the refusal by the licensing authority to issue or extend a temporary license. Existing law repealed these provisions on January 1, 2019.

MAUCRSA, until January 1, 2020, authorizes a licensing authority to issue a provisional license to an applicant that holds, or held, a temporary license for the same premises and the same commercial cannabis activity, if specified conditions are met. Existing law required the provisional license to be valid for 12 months and prohibits the provisional license from being renewed..

This bill would, until September 15, 2019, revalidate an expired temporary license issued by the Department of Food and Agriculture, if the licensee submitted an application for an annual state license and application fees for the same premises and commercial cannabis activity for which the temporary license was issued, before the licensee’s temporary license expiration date. The bill would revoke the temporary license’s validity after the department issues an annual license or provisional license for which the temporary license was issued, or 30 days after the department denies or disqualifies, or the licensee abandons, the licensee’s application for an annual license or the department notifies the temporary licensee that the licensee is eligible for an annual or provisional license. The bill would not entitle the applicant or licensee to a hearing or an appeal of the licensing authority’s refusal to extend a license or the revocation or suspension by the department of a temporary license. The bill would specify, among other things, that a temporary license does not obligate the department to issue that licensee an annual or provisional license.

The Control, Regulate and Tax Adult Use of Marijuana Act, an initiative measure, authorizes the Legislature to amend the act to further the purposes and intent of the act with a 23 vote of the membership of both houses of the Legislature.

This bill would declare that its provisions further specified purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.

This bill would declare that it is to take effect immediately as an urgency statute.

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 26063 of the Business and Professions Code is amended to read:

26063.
 (a) (1) No later than January 1, 2018, the Department of Food and Agriculture shall establish standards by which a licensed cultivator may designate a county, city, or city and county of origin for cannabis. To be eligible for the designation, 100 percent of the cannabis shall be produced within the designated county, city, or city and county, as defined by finite political boundaries.
(2) Cannabis shall not be advertised, marketed, labeled, or sold as produced in a California county, city, or city and county, including any similar name that is likely to mislead consumers as to the kind of cannabis, when the cannabis was not produced in that county, city, or city and county.
(3) The name of a California county, city, or city and county, including any similar name that is likely to mislead consumers as to the kind of cannabis contained in the product, shall not be used in the advertising, labeling, marketing, or packaging of cannabis products unless 100 percent of the cannabis contained in the product was produced in that county, city, or city and county.
(b) (1) No later than January 1, 2021, the Department of Food and Agriculture shall establish a process by which licensed cultivators may establish appellations of origin, including standards, practices, and cultivars applicable to cannabis produced in a certain geographical area in California, not otherwise specified in subdivision (a).
(2) Cannabis shall not be advertised, marketed, labeled, or sold using an appellation of origin established pursuant to paragraph (1), including any similar name that is likely to mislead consumers as to the kind of cannabis, unless the cannabis meets the appellation of origin requirements for, and was produced in, the geographical area.
(3) An appellation of origin established pursuant to this subdivision, including any similar name that is likely to mislead consumers as to the kind of cannabis contained in a product, shall not be used in the advertising, labeling, marketing, or packaging of a cannabis product unless 100 percent of the cannabis contained in the product meets the appellation of origin requirements and was produced in the geographical area.
(c) An appellation of origin shall not be established unless the cannabis produced is planted in the ground, in open air, with no artificial light during the flowering stage of cultivation until harvest.

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.
SECTION 1.Section 26050.3 is added to the Business and Professions Code, to read:
26050.3.

(a)A temporary license issued by the Department of Food and Agriculture pursuant to Section 26050.1, as enacted by Chapter 27 of the Statutes of 2017 (Senate Bill 94), that has expired shall be valid, regardless of its expiration date when issued, if the licensee submitted an application for an annual license and application fees, for the same premises and the same commercial cannabis activity for which the temporary license was issued, before the temporary license’s expiration date.

(b)A temporary license that is valid pursuant to subdivision (a) shall cease to be valid after the Department of Food and Agriculture issues an annual or provisional license for which the temporary license was issued.

(c)A temporary license that is valid pursuant to subdivision (a) shall cease to be valid 30 days after any of the following occur:

(1)The Department of Food and Agriculture denies the licensee’s application for which the temporary license was extended pursuant to subdivision (a).

(2)The Department of Food and Agriculture disqualifies the licensee’s application for an annual license for which the temporary license was extended pursuant to subdivision (a).

(3)The licensee abandons or withdraws the application for an annual license for which the temporary license was extended pursuant to subdivision (a).

(4)The Department of Food and Agriculture notifies the temporary licensee that the licensee is eligible for an annual or provisional license for which the temporary license was issued pursuant to subdivision (a).

(d)Denial, disqualification, revocation, or suspension by the Department of Food and Agriculture of a temporary license extended pursuant to subdivision (a) shall not entitle the applicant or licensee to a hearing or an appeal of the decision. Chapter 2 (commencing with Section 480) of Division 1.5, Section 26031, and Chapter 4 (commencing with Section 26040) of this division shall not apply to temporary licenses extended pursuant to subdivision (a). A temporary license shall not obligate the Department of Food and Agriculture to issue an annual or provisional license. A temporary license shall not create a vested right in the holder to either an extension of the temporary license or to the granting of a subsequent annual or provisional license.

(e)This section shall remain in effect only until September 15, 2019, and as of that date is repealed.

SEC. 2.

The Legislature finds and declares that Section 1 of this act adding Section 26050.3 to the Business and Professions Code furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.

SEC. 3.

This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:

The significant number of license applications pending with the licensing authorities or with local authorities before temporary licenses expire or before provisional licenses can be issued threatens to create a major disruption in the commercial cannabis marketplace.