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SB-658 Cannabis: licensing: cannabis retail business emblem: track and trace.(2019-2020)



Current Version: 04/24/19 - Amended Senate

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SB658:v97#DOCUMENT

Amended  IN  Senate  April 24, 2019
Amended  IN  Senate  March 28, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 658

Introduced by Senator Bradford

February 22, 2019

An act to amend Sections 26051, 26067, 26067 and 26090 of, and to add Section 26056.5 to, the Business and Professions Code, relating to cannabis, and declaring the urgency thereof, to take effect immediately.


LEGISLATIVE COUNSEL'S DIGEST


SB 658, as amended, Bradford. Cannabis: licensing: cannabis retail business emblem: track and trace.
(1) Existing law, 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.
Existing law, 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 generally divides responsibility for the state licensure and regulation of commercial cannabis activity among the Department of Food and Agriculture, the State Department of Public Health, and the Bureau of Cannabis Control, which MAUCRSA establishes within the Department of Consumer Affairs.
This bill would, by December 31, 2019, require the bureau to establish a cannabis retail business emblem and would require, beginning on January 1, 2020, the bureau to issue an emblem to each retail licensee, microbusiness licensee, and nonprofit licensee, including provisional licensees, as provided, upon issuance of the license. The bill would, among other things, require a licensee issued an emblem to post the emblem in a specified location that is clearly visible to the general public and to patrons entering the facility and would require specified employees to carry the emblem when delivering cannabis or cannabis products. The bill would make specified violations of these provisions punishable under MAUCRSA.

(2)MAUCRSA requires the Bureau of Cannabis Control, in determining whether to grant, deny, or renew a retail, microbusiness, or nonprofit license, to consider if an excessive concentration of licensees exists in the area where the licensee will operate.

This bill would remove the provisions requiring the bureau to consider whether an excessive concentration of licensees exists when granting, denying, or renewing specified licenses.

(3)

(2) MAUCRSA requires the Department of Food and Agriculture, in consultation with the Bureau of Cannabis Control, to establish a track and trace program for reporting the movement of cannabis and cannabis products throughout the distribution chain. Existing law requires the track and trace program to capture, at a minimum, information on the licensee receiving the product, the transaction date, and the cultivator from which the product originates. To facilitate the administration of the track and trace program, existing law requires the department to create an electronic database containing that information and requires licensing authorities, upon the request of a state or local law enforcement agency, to allow access to or provide information contained within this database to assist law enforcement in their duties and responsibilities pursuant to MAUCRSA.
This bill would require a licensing authority to also allow a local jurisdiction access to, or provide information contained within, the electronic database.

(4)

(3) 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 2/3 vote of the membership of both houses of the Legislature, except as provided.
This bill would declare that its provisions further the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.

(5)

(4) 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 26051 of the Business and Professions Code is amended to read:
26051.

(a)The Cartwright Act, the Unfair Practices Act, the Unfair Competition Law, and the other provisions of Part 2 (commencing with Section 16600) of Division 7 apply to all licensees regulated under this division.

(b)It shall be unlawful for any person to monopolize, attempt to monopolize, or combine or conspire with any person or persons to monopolize, any part of the trade or commerce related to cannabis. The Attorney General shall have the sole authority to enforce the provisions of this subdivision.

SEC. 2.SECTION 1.

 Section 26056.5 is added to the Business and Professions Code, to read:

26056.5.
 (a) No later than December 31, 2019, the bureau shall establish a cannabis retail business emblem to indicate the valid status of a state cannabis retail, microbusiness, or nonprofit license.
(b) Beginning on January 1, 2020, the bureau shall issue a cannabis retail business emblem to each retail licensee, microbusiness licensee, and nonprofit licensee, including provisional licensees for those licenses, upon issuance of a license.
(c) A licensee issued a cannabis retail business emblem pursuant to subdivision (b) shall post the emblem in the front window of the facility within five feet of the front door or in a display case mounted on the outside front wall of the facility within five feet of the front door and shall ensure the emblem is clearly visible to the general public and to patrons entering the facility.
(d) If a licensee is operating in the same building or space as a separate licensee, or if a licensee shares a common patron entrance with a separate licensee, or both, each licensee shall post the cannabis retail business emblem pursuant to subdivision (c).
(e) A cannabis retail business emblem shall expire upon expiration of the license for which it was issued and the bureau shall renew the emblem when the license for which it was issued is renewed.
(f) The bureau shall maintain the licensing information upon which the cannabis retail business emblem is based and shall make that information available to the general public and to patrons for review upon request.
(g) (1) The cannabis retail business emblem shall not be defaced, marred, reproduced, copied, camouflaged, hidden, or removed.
(2) It shall be unlawful to operate a cannabis business if the cannabis retail business emblem is posted in a location in violation of this section.
(3) Removal of the cannabis retail business emblem is a violation of this chapter and may result in the suspension or revocation of the license and shall be punishable as specified in Chapter 3 of this division.
(h) The bureau shall adopt regulations to implement this section. The adoption, amendment, repeal, or readoption of a regulation authorized by this section is deemed to address an emergency, for purposes of Sections 11346.1 and 11349.6 of the Government Code, and the bureau is hereby exempted for this purpose from the requirements of subdivision (b) of Section 11346.1 of the Government Code.

SEC. 3.SEC. 2.

 Section 26067 of the Business and Professions Code is amended to read:

26067.
 (a) The department, in consultation with the bureau, shall establish a track and trace program for reporting the movement of cannabis and cannabis products throughout the distribution chain that utilizes a unique identifier pursuant to Section 26069, secure packaging, and is capable of providing information that captures, at a minimum, all of the following:
(1) The licensee receiving the product.
(2) The transaction date.
(3) The cultivator from which the product originates, including the associated unique identifier pursuant to Section 26069.
(b) (1) The department, in consultation with the California Department of Tax and Fee Administration, shall create an electronic database containing the electronic shipping manifests to facilitate the administration of the track and trace program, which shall include, but not be limited to, the following information:
(A) The variety and quantity or weight of products shipped.
(B) The estimated times of departure and arrival.
(C) The variety and quantity or weight of products received.
(D) The actual time of departure and arrival.
(E) A categorization of the product.
(F) The license number and the unique identifier pursuant to Section 26069 issued by the licensing authority for all licensees involved in the shipping process, including, but not limited to, cultivators, manufacturers, distributors, and dispensaries.
(2) (A) The database shall be designed to flag irregularities for all licensing authorities in this division to investigate. All licensing authorities pursuant to this division may access the database and share information related to licensees under this chapter, including social security and individual taxpayer identifications notwithstanding Section 30.
(B) The department shall immediately inform the bureau upon the finding of an irregularity or suspicious finding related to a licensee, applicant, or commercial cannabis activity for investigatory purposes.
(3) Licensing authorities and state and local agencies may, at any time, inspect shipments and request documentation for current inventory.
(4) The bureau shall have 24-hour access to the electronic database administered by the department. The California Department of Tax and Fee Administration shall have read access to the electronic database for the purpose of taxation and regulation of cannabis and cannabis products.
(5) The department shall be authorized to enter into memoranda of understandings with licensing authorities for data sharing purposes, as deemed necessary by the department.
(6) Information received and contained in records kept by the department or licensing authorities for the purposes of administering this chapter are confidential and shall not be disclosed pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), except as necessary for authorized employees of the State of California or any city, county, or city and county to perform official duties pursuant to this division or a local ordinance.
(7) Upon the request of a state or local law enforcement agency, or a local jurisdiction, licensing authorities shall allow access to or provide information contained within the database to assist law enforcement or a local jurisdiction in their duties and responsibilities pursuant to this division.

SEC. 4.SEC. 3.

 Section 26090 of the Business and Professions Code is amended to read:

26090.
 (a) Deliveries, as defined in this division, may only be made by a licensed retailer or microbusiness, or a licensed nonprofit under Section 26070.5.
(b) All employees of a retailer, microbusiness, or nonprofit delivering cannabis or cannabis products shall carry a copy of the licensee’s current license and a government-issued identification with a photo of the employee, such as a driver’s license. The employee shall present that license and identification upon request to state and local law enforcement, employees of regulatory authorities, and other state and local agencies enforcing this division.
(c) During delivery, the licensee shall maintain a copy of the delivery request and shall make it available upon request of the licensing authority and law enforcement officers. The delivery request documentation shall comply with state and federal law regarding the protection of confidential medical information.
(d) A customer requesting delivery shall maintain a physical or electronic copy of the delivery request and shall make it available upon request by the licensing authority and law enforcement officers.
(e) A local jurisdiction shall not prevent delivery of cannabis or cannabis products on public roads by a licensee acting in compliance with this division and local law as adopted under Section 26200.
(f) Beginning on January 1, 2020, all employees of a retailer, microbusiness, or nonprofit delivering cannabis or cannabis products shall carry the licensee’s current cannabis retail business emblem. The employee shall present that cannabis retail business emblem upon request to state and local law enforcement, employees of regulatory authorities, other state and local jurisdictions enforcing this division, and the customer requesting cannabis delivery.

SEC. 5.SEC. 4.

 The Legislature finds and declares that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.

SEC. 6.SEC. 5.

 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:
Because there is an immediate need for a uniform way to inform the public as to whether a dispensary has a valid and current commercial cannabis license to ensure the safety of consumers and to ensure adequate enforcement of those violating the Medicinal and Adult-Use Cannabis Regulation and Safety Act, it is necessary that this act take effect immediately.