Category: Medical Marijuana

Medical Marijuana

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California Cannabis Law Update

California Legislature Marijuana & Cannabis Law

State Legislature Makes Changes to California Cannabis Law – Legislative Update

As the California State Legislature implored the Federal Government to urge the United States Department of Justice not to direct its enforcement priorities towards California’s lawfully and closely regulated cannabis industry (AJR 27), urged the Federal Government to allow financial institutions to provide services to the cannabis industry (AJR 28), and requested Congress to reschedule cannabis from a Schedule 1 drug on the Federal Controlled Substances Act (SJR 5), the California State Legislature also considered over 50 pieces of marijuana legislation during its first full term session after the approval of the Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), Proposition 64 on November 8, 2016 and the subsequent approval of Senate Bill 94, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) on June 27, 2017.

Read more about changes to California Cannabis Law with the complete 2018 California Cannabis Law Legislative Update.

Decriminalization of both medical and adult-use cannabis was initiated by the California voters.  The Compassionate Use Act (Proposition 215) decriminalized medical cannabis in 1996, however, it did not provide any further guidance and/or limitations on State or local regulation of medical cannabis.  Therefore, the State legislature had the authority to establish subsequent marijuana regulation, such as Senate Bill 420 (2003) and the Medical Cannabis Regulation and Safety Act of 2016 with a simple majority vote.  Conversely, Proposition 64 expressly requires a 2/3 majority vote to amend adult-use marijuana regulation, unless the legislation is to implement the substantive provisions of AUMA.

The proposed cannabis legislation considered in the 2017-2018 California Legislative Session ranged from simple non-substantive clean-up language such as modifying all references to reflect the name change to the Bureau of Cannabis Control and the consolidation of the licensure and regulation of commercial medicinal cannabis and adult-use cannabis activities (AB 3261) to pre-emption of local regulations prohibiting cannabis delivery services (SB 1302).  In short, the State Legislature sent over 30 new cannabis laws to the Governor’s desk.

Read more about proposed California cannabis legislation with the complete 2018 California Cannabis Law Legislative Update.

Here are some of the more significant pieces of cannabis legislation that went to the California Governor.

Assembly Bill 1793 establishes a pro-active role in the recall, dismissal and/or a redesignation of a criminal cannabis conviction of an offense for which a lesser offense or no offense could be imposed under AUMA (update 9/30/18 this bill has now been signed by the Governor).  Under current law, an individual may petition for a recall, dismissal and/or a redesignation of the offense (see Marijuana Conviction Resentencing Under California Prop 64).  Under the proposed law, the Department of Justice, before July 1, 2019, is mandated to review the state summary criminal history information database and identify the past convictions that are eligible for recall, dismissal and/or redesignation.  The process requires notification to the prosecution of eligibility and mandates review by the prosecution no later than July 1, 2020.  The prosecution must notify the public defender and court if it intends to challenge the recall, dismissal and/or redesignation.  The prosecution is required to notify the court if it does not intend to challenge.  If no challenge is filed by the prosecutor by July 1, 2020, the court is required to reduce or dismiss the conviction.

Assembly Bill 2020, which required a 2/3 vote in the Legislature, would expand the opportunity for California temporary cannabis event licenses to any venue expressly approved by a local jurisdiction (update 9/26/18 this bill has now been signed by the Governor).  The legislation proposes regulation similar to other regulations adopted for other commercial cannabis businesses, mandates that all participants in the temporary cannabis event engaged in retail sales be licensed to engage in that activity, and that the application be filed 60 days in advance of the cannabis event.

Assembly Bill 3112 (effective July 1, 2019) prohibits the sale of nonodorized butane in any quantity to any person other than  manufacturers, wholesalers, resellers, or retailers solely for the purpose of resale or volatile solvent extraction activity licensed under Division 10 (commencing with Section 26000) of the Business and Professions Code, with the exemption of lighters and small containers to refill lighters.  The bill authorizes civil penalties and civil enforcement actions for violation of this provision.

Senate Bill 1127 would enact Jojo’s Act authorizing California school districts, county boards of education, and charter schools maintaining kindergarten or any grades 1 to 12 to adopt a policy to permit a parent or guardian to possess and administer cannabis to a student who is a qualified patient under the Compassionate Use Act, excluding smokeable or vapeable form, at a school site.  This is not an issue under AUMA as it relates to individuals under the age of 21 for medical cannabis use only.  (Update 9/28/18 this bill has now been vetoed by the Governor.)

California State Senator Jerry Hill drafted the bill in honor of Jojo, who suffers from Lennox-Gastaut syndrome.  Pursuant to a medical recommendation, Jojo injests a chemical cannabidiol (CBD) with a trace amount of THC, to control his severe seizure disorder.  His mother arrives at his school every day at noon to administer the dosage but cannot do it on the school campus.

This week, a California State Administrative Law Judge ruled that Brooke Adams, age 5, could continue to attend kindergarten at a public school.  Brooke has Duvet Syndrome, a rare genetic brain dysfunction.  The Judge’s ruling permits a nurse to accompany Brooke to school to administer the medically recommended cannabis-based medication she needs when she has an unpredictable seizure.

Some of the other significant topics addressed by the California Legislature included: AB 106 investigation of criminal history of cannabis license applicants; AB 710 cannabidiol; AB 873 Department of Food and Agriculture commercial cannabis activity inspectors; AB 1527 Cannabis Control Appeals Panel;  AB 1741 cannabis taxation and electronic funds transfer; AB 1793 cannabis convictions and resentencing; AB 1863 personal income tax deduction for commercial cannabis activity; AB 1996 the California Cannabis Research Program; AB 2020 local jurisdiction cannabis temporary event license; AB 2058 driving under the influence of cannabis; AB 2164 local ordinances, fines and penalties for cannabis; AB 2215 veterinarians and administration of cannabis to animals; AB 2255 cannabis distribution and deliveries; AB 2402 protection of personal information of cannabis customers; AB 2721 cannabis testing laboratories; AB 2799 adult-use cannabis and medicinal cannabis license applications and OSHA training; AB 2899 cannabis: advertisements; AB 2914 cannabis in alcoholic beverages; AB 2980 cannabis premises common space; AB 3067 internet and marketing of cannabis to minors; AB 3069  cannabis informational, educational, or training events; AB 3112 controlled substances and butane; AB 3261 nonsubstantive cannabis regulation changes; AJR 27 joint resolution urging the United States Department of Justice not to direct its enforcement priorities towards California’s lawfully and closely regulated cannabis industry; AJR 28  joint resolution urging the Congress and the President to pass legislation that would allow financial institutions to provide services to the cannabis industry; SB 65 ingesting marijuana while driving or riding in a vehicle; SB 311 commercial cannabis distributors; SB 829 cannabis donations to a medical cannabis patient; SB 872 local government taxation re groceries; SB 1127 pupil health and administration of medicinal cannabis at schoolsites; SB 1294 cannabis state and local equity programs; SB 1409 industrial hemp; SB 1451 licenses and cannabis sale to underaged persons; SB 1459 cannabis provisional license; SJR 5 Federal rescheduling of marijuana from a Schedule I drug.

A more comprehensive description of all the cannabis bills considered by the State Legislature, approved and not approved, is available at the 2018 California Cannabis Law Legislative Update.

To learn more about about cannabis law in California, go to California Cannabis Law.

Contact us to learn more about California state or local cannabis regulations, cannabis regulatory compliance, and cannabis litigation.

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Bureau of Cannabis Control Releases New Emergency Regulations While Affirming Testing & Packaging Deadline of July 1 Stands Firm

Bureau Cannabis Control

The California Bureau of Cannabis Control (BCC) released the new set of emergency cannabis regulations which will be in effect for 180 days from June 6, 2018.

Among other things, the new cannabis regulations:

  • Permit a commercial cannabis business to apply for one permit for both medical and adult use marijuana rather than two separate permits;
  • Permit a drive-through for those cannabis applicants that disclosed the use in the local cannabis license application and that received, or applied for, a cannabis license or cannabis permit from the local jurisdiction prior to June 1, 2018;
  • Remove the requirements to keep medicinal and adult-use cannabis goods separate in the transport vehicle;
  • Remove the requirement that retailers not display cannabis goods in a place visible from outside the licensed premises;
  • Clarify that the State cannabis licensing fee is not due until the license is approved.

There is also significant “clarification” and regulation regarding cannabis delivery drivers.  Among other changes, the emergency cannabis regulations:

  • Permit a marijuana delivery employee to carry up to $10,000 in cannabis goods and complete multiple deliveries, but the driver may not leave the cannabis retailer premises without at least one marijuana delivery order that has been received and processed;
  • Require the driver to have a marijuana delivery inventory ledger that includes the type of cannabis good, the brand, the retail value, the cannabis track and trace identifier, and the weight, volume, or other measure of the cannabis good.  After each customer delivery, the cannabis delivery ledger must be updated;
  • Require the marijuana delivery driver to maintain a log that includes all stops from the time the driver leaves the cannabis retail premises to the time the driver returns to the premises.  If a cannabis delivery driver does not have any delivery requests to be performed for a 30-minute period, then the driver must return to the cannabis retail premises. 

For more information about the BCC’s new set of emergency cannabis regulations, see the Bureau of Cannabis Control Summary of Changes to the BCC Emergency Regulations.

Although not highlighted by the BCC, the new regulations also include a new cannabis application requirement regarding “cannabis waste procedures” requiring identification of the local agency or waste hauler to be utilized and/or the procedure for composting on-site.  Also, the Premises Diagram requirement of Title 16 California Code of Regulations § 5006 has been amended to require a more robust diagram which includes designation of cannabis storage, batch sampling, loading or unloading of shipments, cannabis packaging and labeling, customer sales, loading for cannabis deliveries, extraction, cultivation, and processing, where applicable.  See the Bureau of Cannabis Control Approval of BCC Emergency Regulations Text.

Ironically, as the BCC continues to modify the regulation of commercial cannabis through emergency measures, the BCC simultaneously released a Transition Period Fact Sheet today emphasizing the July 1, 2018, deadline for sales of untested cannabis and packaging and label requirements for licensed cannabis distributors, retailers, manufacturers and cultivators.

Beginning July 1, 2018, a licensee may only sell cannabis goods that have been tested and passed all cannabis testing requirements in effect at the time of testing.

The BCC is mandating that licensed cannabis retailers in possession of untested cannabis products destroy them and not sell or test them.

Cannabis distributors in possession of untested cannabis products manufactured or harvested prior to January 1, 2018, must destroy the products if the products are owned by the distributor.  If the products are owned by the cannabis manufacturer or cultivator, the products may be returned to the licensee who owns the cannabis goods.  If a cultivator or cannabis manufacturer chooses to sell the returned goods, they must be sent to a  cannabis distributor for testing and must meet all of the cannabis testing requirements in effect at the time of testing before transported to a retailer for sale.

In addition, effective July 1, 2018, all marijuana packaging and labeling must be performed prior to delivery to a cannabis retailer.  Retailers cannot accept marijuana products that are not properly packaged and labeled and must destroy unpackaged and improperly labeled products, with a limited exception for medical marijuana sales.  A retailer may not package or label cannabis goods, even if the goods were in inventory before July 1, 2018.

Beginning July 1, 2018, edible cannabis goods may not exceed 10 milligrams of THC per serving and may not exceed 100 milligrams of THC per package.

Beginning July 1, 2018, non-edible cannabis products must meet package THC restrictions.  Non-edible cannabis products may not contain more than 1,000 milligrams of THC per package if intended for sale only in the adult-use marijuana market.  Non-edible cannabis products shall not contain more than 2,000 milligrams of THC per package if intended for sale only in the medicinal marijuana market.

Beginning July 1, 2018, a retailer may only sell cannabis products that meet the requirements set by the California Department of Public Health for ingredients or appearance.

For more information, see the Bureau of Cannabis Control Transition Period Fact Sheet.  [Update: subsequent to this article, the Bureau of Cannabis Control issued a June 28, 2018, BCC Revised Transition Period Fact Sheet.]

The emergency cannabis regulations are intended to provide California Cannabis License applicants (distributors, retailers, microbusinesses,  temporary cannabis events, testing laboratories, etc.) with information and guidance for submitting a cannabis license application and for complying with the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), found in California Business & Professions Code, section 26000 et seq.  The emergency rule making is pursuant to California Business & Professions Code section 26013(b)(3).

Read more about cannabis law at California Cannabis Law, and find out about proposed changes to California cannabis law with the California Cannabis Law Legislative Update.

[Update December 2018 – The Bureau of Cannabis Control has provided the text of the permanent final BCC Cannabis Regulations with the new language underlined and the language to be deleted stricken through.  The existing California cannabis emergency regulations discussed in this article remain in effect until the California Office of Administrative Law (OAL) has completed its review.  For more information about the final permanent California cannabis regulations, see BCC to Permit California Cannabis Delivery Statewide.]

Contact us to learn more about California state or local cannabis regulations, cannabis regulatory compliance, and cannabis litigation.