California Assembly Bill AB34 Amended / Bill

 BILL NUMBER: AB 34AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 23, 2015 AMENDED IN ASSEMBLY APRIL 20, 2015 AMENDED IN ASSEMBLY MARCH 26, 2015 INTRODUCED BY Assembly Members Bonta and Jones-Sawyer DECEMBER 1, 2014 An act to amend Sections 2220.05, 2242, and 2264 of, and to add Chapter 18 (commencing with Section 26000) to Division 9 of, the Business and Professions Code, to add Section 23028 to the Government Code, to amend Section 11362.775 of the Health and Safety Code, and to add Sections 147.5 and 3094 to the Labor Code, relating to medical cannabis, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGEST AB 34, as amended, Bonta. Medical cannabis regulation and enforcement. (1) Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election, authorizes the use of marijuana for medical purposes. Existing law enacted by the Legislature, commonly referred to as the Medical Marijuana Program Act (MMPA), requires the establishment of a program for the issuance of identification cards to qualified patients so that they may use marijuana for medical purposes without arrest or prosecution under specified state law, and requires the establishment of guidelines for the lawful cultivation of marijuana grown for medical use. This bill would enact the Medical Cannabis Regulation and Control Act and would establish the Division of Medical Cannabis Regulation and Enforcement within the Department of Alcoholic Beverage  Control.   Control, the Division of Medical Cannabis Manufacturing and Testing within the State Department of Public Health, and the Division of Medical Cannabis Cultivation within the Department of Food and Agriculture and would set   forth the duties of the respective regulatory authorities.  The bill would, 180 days after the division posts a specified notice on its Internet Web site, make those provisions of the MMPA that prohibit prosecution of qualified patients, persons with valid identification cards, and designated primary caregivers who associate in California, collectively or cooperatively, to cultivate marijuana for medical purposes, inapplicable to licensees. The bill would, thereafter, permit a dispensary to provide patients with medical marijuana and medical marijuana products obtained only from persons licensed under this bill. The bill would require the  division   regulatory authorities  to license persons to engage in the various aspects of commercial cannabis activity, as defined. The bill would designate as peace officers  the Director of the Department of Alcoholic Beverage Control and persons employed by the division to administer and enforce its provisions   specified officers and employees of the regulatory authorities  . The bill would prescribe requirements for the issuance, renewal, suspension, and revocation of a mandatory commercial license and would authorize the assessment of related fees. The bill would not preclude a city or county from adopting a local ordinance, not consistent with this bill, that regulates the location, operation, or establishment of a licensee or prohibits commercial cannabis activity within its jurisdiction. The bill would require state agencies to collaborate with local agencies, and would require local agencies to, within the scope of their jurisdiction, assist state agencies in the enforcement of the bill. By imposing these enforcement duties on local agencies, the bill would impose a state-mandated local program. The bill would establish the Medical Marijuana Regulation Fund with separate accounts for fees and for penalties, and would require deposit of fees and penalties into their respective accounts within the fund. The bill would continuously appropriate moneys within the fees account to the division for the purposes of administering the program. The bill would authorize the  division   regulatory authorities  to  collaborate to  establish a regulation and enforcement assistance grant program and would authorize the Department of Transportation to conduct research and develop protocols regarding determining whether a driver is operating a vehicle under the influence of marijuana to assist law enforcement agencies. The bill would make the fines and penalties deposited into the fund available, upon appropriation by the Legislature, for funding these programs. The bill would require the  division,   regulatory authorities,  as soon as practicable, to allow qualified applicants for licensure to apply for and receive a provisional license to engage in commercial cannabis activity and to adopt emergency regulations for that purpose. The bill would require the  division   regulatory authorities  to adopt regulations necessary for the implementation and enforcement of this bill in consultation with prescribed state agencies relating to environmental, agricultural, consumer protection, worker safety, and food and product safety requirements. The bill would authorize the  division   regulatory authorities  to enter into interagency agreements to pay, from fees deposited into the fund, the associated costs incurred by these state agencies. The bill would establish a cannabis employee certification, training, and apprenticeship program for cultivation sites and dispensaries, as defined. The bill would require the Division of Labor Standards Enforcement to maintain and enforce minimum standards for the competency and training of employees and to certify cannabis employees. The bill would require the Division of Labor Standards Enforcement, by January 1, 2017, to convene an advisory committee to evaluate whether there is a need to develop industry-specific regulations related to the activities of licensed facilities. The bill would require the advisory committee to present to the Occupational Safety and Health Standards Board its findings and recommendations for consideration by the board, and would require the board, by July 1, 2017, to render a decision regarding the adoption of industry-specific regulations. The bill would require a licensee to keep various records in connections with commercial cannabis activities and would prescribe requirements for making records available to the division and any state or local agency. The bill would prohibit the disclosure of certain patient and caregiver information pursuant to the California Public Records Act. The bill would declare that it does not apply to, or diminish the protections granted to, a patient or primary caregiver acting pursuant to the Compassionate Use Act of 1996 and would exempt these parties from the application of the act. The bill would declare that the actions of a licensee or provisional licensee, its employees, and its agents that are within the scope of a valid license are not unlawful under state law, as specified. The bill would provide similar state law immunity for a property owner who allows his or her property to be used by a licensee or provisional licensee. The bill would require the  division   regulatory authorities  to work in conjunction with law enforcement entities throughout the state to implement and enforce the rules and regulations regarding medical cannabis and to take appropriate action against businesses and individuals that fail to comply with the law. The bill would authorize the director of  the division,   any regulatory authority,  and prescribed local entities, to bring an action to enjoin violations. The bill would require the  division   regulatory authority  to establish a digital database and to allow on its Internet Web site to permit state and local law enforcement agencies to verify licenses.  The bill would make certain violations of its provisions a crime, thereby imposing a state-mandated local program.  (2) Existing law, the Medical Practice Act, establishes the Medical Board of California and sets forth its powers and duties, including, but not limited to the licensing and regulation of physicians and surgeons. Existing law sets forth the conduct that would constitute unprofessional conduct for a physician and surgeon, including, but not limited to, prescribing certain drugs without an appropriate examination or medical indication. Existing law generally makes a violation of these provisions a misdemeanor. This bill would specify that recommending marijuana to patients without an appropriate prior examination and a medical indication is unprofessional conduct. The bill would provide that specified acts of recommending marijuana without a good faith examination are among the types of cases that should be given priority for investigation and prosecution by the Medical Board of California, as described above. The bill would deem as unprofessional conduct a physician and surgeon being employed by, or entering into an agreement with, a medical cannabis licensee to provide recommendations for medical marijuana. By broadening the definition of a crime, the bill would impose a state-mandated local program. (3) Existing law authorizes the board of supervisors of a county and the governing body of a city to impose various taxes, including a transactions and use tax at a rate of 0.125%, or a multiple thereof, if approved by the required vote of the board or governing body and the required vote of qualified voters, and limits the combined rate of transactions and use taxes within a city or county to 2%. This bill would authorize the board of supervisors of a county to impose, by ordinance, a tax on the privilege of cultivating, dispensing, producing, processing, preparing, storing, providing, donating, selling, or distributing cannabis or cannabis products, including a transactions and use tax at any rate specified by the board. The bill would authorize the tax to be imposed for either general or specific governmental purposes. The bill would require a tax imposed pursuant to this authority to be subject to any applicable voter approval requirement. (4) This bill would specify that its provisions are severable. (5) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. (6) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) The people of California enacted the Compassionate Use Act of 1996 to ensure that seriously ill Californians have access to marijuana for medical purposes. The Compassionate Use Act of 1996 urged the state and federal governments to implement a plan to provide for the safe and affordable distribution of medical marijuana to all patients in medical need of the drug. (b) Under federal law, marijuana is a Schedule 1 drug. Its placement in that schedule is based upon a finding that marijuana has no currently accepted medical use. That finding, if correct at the time it was made, is no longer accurate. California, exercising its traditional power to regulate the practice of medicine, has determined that marijuana has a significant role to play. (c) California, acting alone, is powerless to change federal law and to correct this misunderstanding in federal law about the role that marijuana can and does play in the practice of medicine. However, federal enforcement authorities have recognized that in states that have authorized marijuana use and have enacted strong and effective regulatory and enforcement systems to control the cultivation, distribution, sale, and possession of marijuana, conduct in compliance with those regulatory and enforcement systems is less likely to threaten federal priorities and, thus, less likely to require federal enforcement intervention (See: Memorandum For All United States Attorneys--Guidance Regarding Marijuana Enforcement, by James M. Cole, Deputy Attorney General, August 29, 2013). (d) The purpose of this act is to establish for California a robust medical cannabis regulatory and enforcement system to ensure that conduct in compliance with California's medical marijuana laws does not threaten the federal priorities as set forth in the James M. Cole memorandum, and, therefore, does not require federal enforcement intervention. SEC. 2. Section 2220.05 of the Business and Professions Code is amended to read: 2220.05. (a) In order to ensure that its resources are maximized for the protection of the public, the Medical Board of California shall prioritize its investigative and prosecutorial resources to ensure that physicians and surgeons representing the greatest threat of harm are identified and disciplined expeditiously. Cases involving any of the following allegations shall be handled on a priority basis, as follows, with the highest priority being given to cases in the first paragraph: (1) Gross negligence, incompetence, or repeated negligent acts that involve death or serious bodily injury to one or more patients, such that the physician and surgeon represents a danger to the public. (2) Drug or alcohol abuse by a physician and surgeon involving death or serious bodily injury to a patient. (3) Repeated acts of clearly excessive prescribing, furnishing, or administering of controlled substances, or repeated acts of prescribing, dispensing, or furnishing of controlled substances, or recommending marijuana to patients for medical purposes, without a good faith prior examination of the patient and medical reason therefor. However, in no event shall a physician and surgeon prescribing, furnishing, or administering controlled substances for intractable pain consistent with lawful prescribing, including, but not limited to, Sections 725, 2241.5, and 2241.6 of this code and Sections 11159.2 and 124961 of the Health and Safety Code, be prosecuted for excessive prescribing and prompt review of the applicability of these provisions shall be made in any complaint that may implicate these provisions. (4) Sexual misconduct with one or more patients during a course of treatment or an examination. (5) Practicing medicine while under the influence of drugs or alcohol. (b) The board may by regulation prioritize cases involving an allegation of conduct that is not described in subdivision (a). Those cases prioritized by regulation shall not be assigned a priority equal to or higher than the priorities established in subdivision (a). (c) The Medical Board of California shall indicate in its annual report mandated by Section 2312 the number of temporary restraining orders, interim suspension orders, and disciplinary actions that are taken in each priority category specified in subdivisions (a) and (b). SEC. 3. Section 2242 of the Business and Professions Code is amended to read: 2242. (a) Prescribing, dispensing, or furnishing dangerous drugs as defined in Section 4022 without an appropriate prior examination and a medical indication, constitutes unprofessional conduct. Prescribing or recommending marijuana to a patient for a medical purpose without an appropriate prior examination and a medical indication constitutes unprofessional conduct. (b) No licensee shall be found to have committed unprofessional conduct within the meaning of this section if, at the time the drugs were prescribed, dispensed, or furnished, any of the following applies: (1) The licensee was a designated physician and surgeon or podiatrist serving in the absence of the patient's physician and surgeon or podiatrist, as the case may be, and if the drugs were prescribed, dispensed, or furnished only as necessary to maintain the patient until the return of his or her practitioner, but in any case no longer than 72 hours. (2) The licensee transmitted the order for the drugs to a registered nurse or to a licensed vocational nurse in an inpatient facility, and if both of the following conditions exist: (A) The practitioner had consulted with the registered nurse or licensed vocational nurse who had reviewed the patient's records. (B) The practitioner was designated as the practitioner to serve in the absence of the patient's physician and surgeon or podiatrist, as the case may be. (3) The licensee was a designated practitioner serving in the absence of the patient's physician and surgeon or podiatrist, as the case may be, and was in possession of or had utilized the patient's records and ordered the renewal of a medically indicated prescription for an amount not exceeding the original prescription in strength or amount or for more than one refill. (4) The licensee was acting in accordance with Section 120582 of the Health and Safety Code. SEC. 4. Section 2264 of the Business and Professions Code is amended to read: 2264. The employing, directly or indirectly, the aiding, or the abetting of any unlicensed person or any suspended, revoked, or unlicensed practitioner to engage in the practice of medicine or any other mode of treating the sick or afflicted which requires a license to practice constitutes unprofessional conduct. Employment by, or other agreement with, a mandatory commercial licensee acting pursuant to the Medical Cannabis Regulation and Control Act or a dispensary to provide recommendations for medical marijuana constitutes unprofessional conduct. SEC. 5. Chapter 18 (commencing with Section 26000) is added to Division 9 of the Business and Professions Code, to read: CHAPTER 18. MEDICAL CANNABIS REGULATION AND CONTROL Article 1. General Provisions 26000. (a) This chapter shall be known, and may be cited, as the Medical Cannabis Regulation and Control Act. (b) It is the intent of the Legislature in enacting this chapter to provide for the statewide regulation of the commercial cannabis activity and the enforcement of laws relating to commercial cannabis activities without preempting city or county ordinances regulating or banning these activities. This chapter is an exercise of the police powers of the state for the protection of the safety, welfare, health, peace, and morals of the people of the state. 26001. Without limiting the authority of a city or county pursuant to Section 7 of Article XI of the California Constitution, or any other provision of law, and subject to that authority, the state shall have the exclusive right and power to regulate and license persons for the cultivation, manufacture, transportation, sale, and other related activities regarding medical cannabis within the state. In the exercise of these rights and powers, the state and each of its agencies are hereby deemed not to be engaged in activities requiring licensure under this chapter. 26002. For the purpose of this chapter:  (a) "Department" means the Department of Alcoholic Beverage Control.   (b) "Director" means the Director of the Department of Alcoholic Beverage Control, unless the context otherwise clearly indicates.   (a) "Regulatory authority" means the Division of Medical Cannabis Regulation and Enforcement within the Department of Alcoholic Beverage Control, the Division of Medical Cannabis Manufacturing and Testing within the State Department of Public Health, or the Division of Medical Cannabis Cultivation within the Department of Food and Agriculture, as appropriate to the context.   (b) "Regulatory director" means the Director of the Department of Alcoholic Beverage Control, the Director of Consumer Affairs, the Director of the Department of Public Health, or the Director of the Department of Food and Agriculture.  (c) "Division" means the Division of Medical Cannabis Regulation and Enforcement within the  department.   Department of Alcoholic Beverage Control, unless otherwise specified.  (d) "Cannabis" means all parts of the plant Cannabis sativa, cannabis indica, or cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. It does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. "Cannabis" also means marijuana as defined by Section 11018 of the Health and Safety Code as enacted by Chapter 1407 of the Statutes of 1972. (e) "Commercial cannabis activity" means any cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, or sale of cannabis or cannabis product, except as set forth in subdivision (b) of Section 26052. (f) "Medical cannabis product," "medical marijuana product," or "cannabis product" means any product containing cannabis, including, but not limited to, concentrates and extractions intended to be sold for use by medical marijuana patients in California pursuant to the Compassionate Use Act of 1996 (Proposition 215). (g) "Manufactured cannabis" means raw marijuana that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product. (h) "Cannabis concentrate" means manufactured cannabis that has undergone a process to concentrate the  cannabinoid   tetrahydrocannabinol  active ingredient, thereby increasing the product's potency. (i) "Cannabinoid" means a chemical compound that is unique to and derived from cannabis, also known as phytocannabinoid. (j) "Edible cannabis product" means manufactured cannabis that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum. (k) "Topical cannabis" means manufactured product intended for external use. (l) "Identification program" means the universal identification certificate program for licensees. (m) "Mandatory commercial license" or "license" means a mandatory commercial license issued pursuant to Article 3 (commencing with Section 26040). (n) "Licensee" means any person licensed under this chapter to engage in commercial cannabis activity related to medical cannabis  or medical cannabis products  as set forth in this chapter. (o) "Dispensary" means a retail location that distributes cannabis or medical cannabis products and is owned and operated by a licensee for these activities pursuant to this chapter. (p) "Testing and labeling" means a labeling and quality assurance plan that addresses all of the following: (1) Potency. (2) Chemical residue. (3) Microbiological contaminants. (4) Handling, care, and storage. (5) Date and location of cultivation, processing, and manufacturing. (q) "Fund" means the Medical Cannabis Control Fund established pursuant to Section 26028. (r) "Person" means any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit and includes the plural as well as the singular number. (s) "Cultivation site" means a location that grows cannabis or medical cannabis products and is owned and operated by a licensee for these activities pursuant to this  chapter.   chapter, including a nursery. (t) "Nursery" means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of medical cannabis.  (u) "Cultivation" means any activity involving the planting, growing, harvesting, drying, processing, or trimming of cannabis.   (v) "Dispensing" means any activity involving the retail sale of medical cannabis or medical cannabis products.  26010. This chapter does not, nor does Article 2 (commencing with Section 11357) and Article 2.5 (commencing with Section 11362.7) of Chapter 6 of Division 10 of the Health and Safety Code, prevent a city or county from doing any of the following: (a) Adopting local ordinances inconsistent with this chapter that do the following: (1) Regulate the location, operation, or establishment of a licensee or any person that cultivates, processes, possesses, stores, manufactures, tests, transports, distributes, or sells medical cannabis. (2) Prohibit commercial cannabis activity within their jurisdiction. (b) The administrative, civil, or criminal enforcement of the ordinances described in subdivision (a). (c) Establishing a fee or tax for the operation of a licensee within its jurisdiction. (d) Enacting and enforcing other laws or ordinances pursuant to the authority granted by Section 7 of Article XI of the California Constitution. Article 2. Administration 26020. (a) The Division of Medical Cannabis Regulation and Enforcement is hereby established within the Department of Alcoholic Beverage Control. The  division shall be   Division of Medical Cannabis Regulation and Enforcement   shall do all of the following:   (1)     Be  administered by a person who is appointed by the  director. The division shall administer this chapter.   Director of the Department of Alcholic Beverage Control.   (2) Administer this chapter, as it pertains to commercial cannabis activity relating to dispensaries.   (3) Lead all state and local authorities regarding the tracking of medical cannabis, medical cannabis products, and licensees pursuant to this chapter.   (b) The Division of Medical Cannabis Manufacturing and Testing is hereby established within the Department of Public Health. The Division of Medical Cannabis Manufacturing and Testing shall do all the following:   (1) Be administered by a person who is appointed by the State Health Officer.   (2) Administer this chapter, as it pertains to manufacturing, testing, and certification of testing laboratories for medical cannabis.   (c) The Division of Medical Cannabis Cultivation is hereby established within the Department of Food and Agriculture. The Division of Medical Cannabis Cultivation shall do all of the following:   (1) Be administered by a person who is appointed by the Secretary of the Department of Food and Agriculture.   (2) Administer this chapter as it pertains to cultivation of medical cannabis.   (d) The regulatory authorities shall issue licenses to applicants to engage in commercial cannabis activity pursuant to this chapter. No person shall engage in commercial cannabis activity unless the person obtains permission pursuant to section 26045.   (e) The division shall maintain a registry of all permit holders and shall maintain a record of all licenses and commercial cannabis activity of the permit holder throughout the length of licensure and for a minimum of seven years following the expiration of each license.   (b) No person shall engage in commercial cannabis activity unless licensed by the division under this chapter. The division shall issue licenses to applicants to engage in commercial cannabis activity pursuant to this chapter.   (c) The division   (f)     Each regulatory authority  shall adopt regulations as needed to implement that licensing program as set forth in Article 3 (commencing with Section 26040) within one year following the establishment of provisional licenses, pursuant to Section 26054. The regulations shall not limit the authority of a city or a county pursuant to Section 7 of Article XI of the California Constitution, Section 26010 or 26060, or any other law. The regulations shall, in addition, do all of the following: (1) Establish a scale of application, licensing, and renewal fees, based upon the cost of enforcing this chapter, as follows: (A)  The division   Each regulatory authority  shall charge each applicant for licensure or renewal an application or renewal fee that shall be calculated to cover the costs of processing the application or renewal. This fee may vary depending upon the varying costs associated with approving the application or renewal related to the varying activities covered by the license, but shall not exceed ___dollars ($____) for an initial application, and ____dollars ($____) for a renewal application. (B)  Upon the issuance of a license, the division   Each  regulatory authority  shall charge each licensee a licensure  fee.   fee upon the issuance of a license.  The licensure fee shall be calculated to cover the costs of administering this chapter, other than the costs of processing applications. The licensure fee may vary depending upon the varying costs associated with administering the various regulatory requirements of this chapter as they relate to the nature and scope of the different licensure activities, but shall not be less than ____ dollars ($____), nor more than ____ dollars ($____). (C) The total fees assessed pursuant to this chapter, including, but not limited to, provisional license fees set forth in Section 26054, shall be set at an amount that will fairly and proportionately generate sufficient total revenue to fully cover the total costs of administering this chapter, including, but not limited to, costs set forth in Section 26023. (2) Establish procedures for approval or denial of applications for licensure for each and every aspect of commercial cannabis activity, including, but not limited to, cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, and sale of cannabis. (3) Establish applicant qualifications. (4) Establish licensee employee qualifications, including, but not limited to, training and screening requirements. (5) Establish licensee security requirements, including, but not limited to, procedures to limit access to facilities and to prevent diversion of product to nonmedical use. (6) Establish procedures and protocols for identifying, managing, and disposing of contaminated, adulterated, deteriorated, or excess product. (7) Establish advertising, marketing, signage, and labeling requirements and restrictions. (8) Establish procedures for the suspension, revocation, or surrender of a license and establishing related fines and penalties to be assessed against licensees for violations of this chapter. (9) Establish procedures for the oversight of the fund established pursuant to Section 26028. 26021.  (a) The division, in consultation with the Division of Labor Standards Enforcement, shall adopt regulations establishing worker safety standards in cultivation sites, manufacturing facilities, and retail dispensary sites.   (b)    The  division,   Division of Medical Cannabis Cultivation shall do all of the following:   in   (a)     Adopt regulations, in  consultation with the Department of Water Resources,  shall adopt regulations  to ensure that commercial cannabis activity licensed pursuant to this chapter does not threaten the state's clean water and environment.  (c)   (b)   The division, in consultation with the Department of Food and Agriculture, shall adopt   Adopt  regulations ensuring that the cultivation of cannabis under this chapter is in compliance with standards equivalent to the statutory and regulatory requirements applicable to the production of a food crop, including, but not limited to, all of the following: (1) Regulations regarding the verification of cannabis stock for the purposes of cultivation. (2) Cultivation protocols ensuring the quality, availability, and safety of the cannabis crop, including both indoor and outdoor cultivation standards and regulations regarding carbon offsets for indoor cultivation. (3) Environmentally sound agricultural practices, including all of the following: (A) A requirement that any actual, or potential for, environmental damage be addressed by the relevant state agency, including, but not limited to, the State Board of Forestry and Fire Protection, the Department of Fish and Wildlife, California regional water quality control boards, the Department of the California Highway Patrol, or the Department of Justice. (B) A provision authorizing revocation of a licensee if the state determines that the conduct of the licensee threatens to inflict or has inflicted significant damage to the environment. (C) Standards controlling the application of pesticides. These standards shall, at a minimum, require that if pesticides are to be used, the use comply with standards equivalent to Division 6 (commencing with Section 11401) of the Food and Agricultural Code and its implementing regulations.  (c) Adopt regulations to establish cultivation labeling and packaging standards and requirements, including, but not limited to, cultivation labeling requirements requiring labeling to include, at a minimum, cannabinoid levels, cannabinoid profile, and active ingredients.   (d) The division, in consultation with the Department of Consumer Affairs, shall adopt regulations to certify laboratories for the testing of medical cannabis and medical cannabis products, as defined in this chapter. Certification of testing laboratories shall be consistent with general requirements for the competence of testing and calibration activities, including sampling, using standard methods established by the International Organization for Standardization, including, but not limited to, ISO/IEC 17025.  26021.5. (a) State agencies shall collaborate with local agencies, and local agencies, within the scope of their jurisdiction, and to the extent that resources are available, shall assist state agencies in the enforcement of this chapter. This section shall not limit any other state or local requirements. (b) No cannabis shall be cultivated on public lands pursuant to this chapter. 26022. The  division,   Division of Medical Cannabis Manufacturing and Testing,  in consultation with the State Department of Public Health, shall adopt regulations to do all of the following: (a) Establish  product  labeling and packaging standards and requirements, including, but shall not be limited to, all of the following:  (1) Cultivation labeling requirements requiring labeling to include, at a minimum, cannabinoid levels, cannabinoid profile, and active ingredients.   (2)   (1)  Edible, manufactured, and topical cannabis   All manufactured cannabis  product labeling and packaging standards, including, but not limited to, all of the following: (A) A requirement that the label include the manufacturing date,  the   name of the mandatory commercial licensee from which it was obtained,  the active ingredients, net weight, cannabinoid profile, nutritional facts, dosage in total milligrams of cannabinoids delivered, and any potential allergens. (B) A requirement that the label include the warnings: "KEEP OUT OF REACH OF CHILDREN AND ANIMALS," and "FOR MEDICAL USE ONLY." (C) A requirement that packaging contain a clear indication in bold font that the package contains medical cannabis, and that the package not be designed in a manner that attracts minors. (D) Standards for labeling food that clearly distinguish edible cannabis products from non-cannabis products.  (E) The name of the mandatory commercial licensee that manufactured the product.  (b) Establish consumer protection, food and product safety requirements, including, but not limited to, all of the following: (1) Adverse event reporting and product recall systems that include batch, lot, or control number tracking, the requirement that employees who manufacture or otherwise handle edible medical cannabis products thoroughly wash their hands before commencing production and before handling finished edible medical cannabis products. (2) Standards for cannabinoid dosage in edible products. (3) Sanitation standards equivalent to the California Retail Food Code (Part 7 (commencing with Section 113700) of Division 104 of the Health and Safety Code) for food preparation, storage, handling, and sale of medical cannabis products. (4) A requirement that edible medical cannabis products be limited to foods that are not potentially hazardous food as set forth in Section 114365.5 of the Health and Safety Code. (5) A requirement that facilities in which edible medical cannabis products are prepared shall be constructed in accordance with building standards and health and safety standards applicable to a food production facility, including the requirement that edible products distributed or sold by dispensaries not be produced or stored in private homes. (6) Weighing or measuring standards, including, but not limited to, the requirement that devices used in connection with the sale or distribution of cannabis meet standards equivalent to Division 5 (commencing with Section 12001) of the Business and Professions Code. (7) Standards controlling the application of pesticides. These standards shall, at a minimum, require that if pesticides are to be used, the use comply with standards equivalent to Division 6 (commencing with Section 11401) of the Food and Agricultural Code and its implementing regulations. (8) A requirement that all edible medical cannabis products shall be individually wrapped at the original point of preparation. (c) Establish testing requirements for all  medical cannabis and  medical cannabis products, including edible cannabis products and those used, or intended for use, via inhalation, including, but not limited to: (1) Testing for the active cannabinoid-profile, constituent elements, and microbiological, bacterial, pathogenic yeast, and mold counts. (2) Testing standards by which to test and measure the potency of  medical cannabis and  medical cannabis products. The division shall also determine maximum standards in the potency of  medical cannabis and  medical cannabis products. (3) Testing standards by which to test and measure the quality of the  medical cannabis and medical  cannabis product. (4) Protocols for  medical cannabis and medical  cannabis product safety testing.  (d) Establish procedures for certifying laboratories for the testing of medical cannabis and medical cannabis products, as defined in this chapter. Certification of testing laboratories shall be consistent with general requirements for the competence of testing and calibration activities, including sampling, using standard methods established by the International Organization for Standardization, including, but not limited to, ISO/IEC 17025.   (e) Ensure licensed cannabis cultivation entities have access to existing agricultural incentive and support programs.  26022.5. The regulations shall not limit the authority of a city or a county pursuant to Section 7 of Article XI of the California Constitution, Section 26010 or 26060, or any other law. 26023. The regulations shall set forth the inspection and enforcement responsibilities of  the Department of Alcohol and Beverage Control, the State Department of Public Health   ,  the Division of Labor Standards Enforcement, the Department of Water Resources, the State Department of Public Health, and the Department of Food and Agriculture associated with this chapter. 26023.5. (a) Without limiting the authority of a city or a county pursuant to Section 7 of Article XI of the California Constitution or any other law, the  division    Division of Medical Cannabis Regulation and Enforcement  shall adopt regulations regarding the minimum standards for the operation of dispensaries. The regulations shall establish all of the following: (1)  Standards for labeling of products, including the name of the mandatory commercial licensee from which the product was obtained, and a   A    requirement that dispensaries provide patients with detailed written information about the contents of the cannabis and medical cannabis products they obtain. (2) Requirements for inventory control and reporting that require all dispensaries to be able to demonstrate the present location, amounts, and descriptions of all medical cannabis products from the time of delivery to the dispensary until purchase by a qualified patient or primary caregiver. (3) Minimum educational and testing requirements for licensee staff, including, but not limited to, background checks and a requirement that every dispensary maintain dedicated, licensed security staff both inside and outside the dispensary. (4) Minimum standards governing signage and advertising for dispensaries. (b) Commencing 180 days after the division begins issuing provisional licenses, a dispensary shall provide patients medical cannabis and medical cannabis products obtained only from persons licensed under this chapter. (c) Out-of-state medical cannabis patients with current, valid verification that they are allowed to receive medical cannabis treatment within their home state may receive medical cannabis treatment, including the ability to purchase medical cannabis from licensed dispensaries within this state upon verification of the documents by the dispensary, pursuant to protocols established by the division. 26024.  (a)     The division   The regulatory authorities  may assist state taxation authorities in the development of uniform policies for the state taxation of mandatory commercial licensees.  (b) The division shall assist the Division of Occupational Safety and Health in the Department of Industrial Relations in the development of industry-specific regulations related to commercial medical cannabis activities.  26028. (a) The Medical Cannabis Control Fund is hereby established within the State Treasury. Notwithstanding Section 16305.7 of the Government Code, the fund shall include any interest and dividends earned on the moneys in the fund. (b) All fees collected pursuant to this chapter shall be deposited into the fees account, which is hereby established within the fund. Notwithstanding Section 13340 of the Government Code, all moneys within the fees account are hereby continuously appropriated, without regard to fiscal year, to the  division   Division of Medical Cannabis Regulation and Enforcement  solely for the purposes of fully funding and administering this chapter, including, but not limited to, the costs incurred by the division for its administrative expenses and costs  and the costs of all regulatory authorization as  set forth in Section 26023. (c) All moneys collected pursuant to this chapter as a result of fines or penalties imposed under this chapter shall be deposited directly into the fines and penalties account, which is hereby established within the fund, and shall be available, upon appropriation by the Legislature, for the purposes of funding the enforcement grant program pursuant to subdivision (d). (d) The  division   regulatory authorities  shall  collaboratively  establish and administer a grant program to allocate moneys from the fines and penalties account to state and local entities for the purpose of assisting with medical cannabis regulation and the enforcement of this chapter and other state and local laws applicable to licensees. The costs of the grant program under this subdivision shall, upon appropriation by the Legislature, be paid for with moneys in the fines and penalties account. (e) The Department of Transportation shall conduct research regarding determining whether a driver is operating a vehicle under the influence of cannabis, and shall develop protocols setting forth best practices to assist law enforcement agencies. The costs of the Department of Transportation under this subdivision shall, upon appropriation by the Legislature, be paid for with moneys in the fines and penalties account. (f) The total fees charged pursuant to this chapter shall be sufficient to pay the costs associated with the administrative and enforcement duties of the division and of the associated state agencies in administering this chapter. (g) The  division   regulatory authorities  shall enter into an interagency agreement with  the Department of Alcohol and Beverage Control, the Department of Consumer Affairs,  the Division of Labor Standards Enforcement, the Department of Water Resources, the State Department of Public Health, and the Department of Food and Agriculture setting forth the duties of those agencies under this chapter and providing for reimbursement  to the appropriate state and local authorities  of associated costs from revenues deposited into the fees account of the fund. 26030. (a) The  director   regulatory directors  and the persons employed by the  division   regulatory authorities  for the administration and enforcement of this chapter are peace officers in the enforcement of the penal provisions of this chapter, the rules of the division adopted under this chapter, and any other penal provisions of law of this state prohibiting or regulating the cultivation, processing, storing, manufacturing, testing, transporting, or selling of medical cannabis, and these persons are authorized, while acting as peace officers, to enforce any penal provisions of state law while in the course of their employment. (b) The  director,   regulatory directors,  the persons employed by the  division   regulatory authorities  for the administration and enforcement of this chapter, peace officers listed in Section 830.1 of the Penal Code, and those officers listed in Section 830.6 of the Penal Code while acting in the course and scope of their employment as peace officers may, in enforcing this chapter, visit and inspect the premises of any licensee at any time during which the licensee is acting pursuant to the mandatory commercial license. (c) Peace officers of the Department of the California Highway Patrol, members of the University of California and California State University police departments, and peace officers of the Department of Parks and Recreation, as defined in subdivisions (a), (b), (c), and (f) of Section 830.2 of the Penal Code, may, in enforcing this chapter, visit and inspect the premises of any licensee at any time during which the licensee is acting pursuant to the license. 26034. (a) Information identifying the names of patients, their medical conditions, or the names of their primary caregivers received and contained in records kept by the  division   regulatory 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 or county to perform official duties pursuant to this chapter, or a local ordinance adopted in accordance with Section 26010. (b) Nothing in this section precludes the following: (1)  Division employees   Employees of any of the regulatory authori   ties  notifying state or local agencies about information submitted to the division that the employee suspects is falsified or fraudulent. (2) Notifications from  the division  any of the regulatory authorities  to state or local agencies about apparent violations of this chapter or any applicable local ordinance. (3) Verification of requests by state or local agencies to confirm licenses and certificates issued by the  division   regulatory authorities  or other state agency. (4) Provision of information requested pursuant to a court order or subpoena issued by a court or an administrative agency or local governing body authorized by law to issue subpoenas. (c) Information shall not be disclosed by any state or local agency beyond what is necessary to achieve the goals of a specific investigation, a notification, or the parameters of a specific court order or subpoena. 26035. This chapter does not require an employer to permit or accommodate the use, consumption, possession, transfer, display, transportation, sale, or growth of cannabis in the workplace or to affect the ability of employers to have policies restricting the use of cannabis by employees. Article 3. Mandatory Commercial License 26040. (a) The  division   regulatory authorities  shall adopt regulations establishing a tiered licensing scheme to accommodate the different levels and types of activity to be licensed,  including, but not limited to, licenses for the cultivation, testing, manufacture, transportation, and dispensing of medical cannabis and medical cannabis products. The   as follows:   (1) The Division of Medical Cannabis Cultivation shall adopt regulations for a tiered licensing structure for the cultivation of medical cannabis.   (2) The Division of Medical Cannabis Manufacturing and Testing shall adopt regulations, in consultation with the Department of Consumer Affairs, for the tiered licensing structure of the following:   (A) Manufacturing of medical cannabis products.   (B) Testing of medical cannabis products.   (C) Certification of medical cannabis testing laboratories.   (3) The Division of Medical Cannabis Regulation and Enforcement shall adopt regulations for the tiered licensing structure for all the following:   (A) Wholesale of medical cannabis products, which shall include large-scale storage and distribution, as defined by the regulatory authority.   (B) Dispensing of medical cannabis products.   (b)     The  regulations shall set forth the application and licensure process, including, but not limited to, all of the following: (1) A description of the various specific forms of commercial cannabis activity to be authorized by the various types of licenses. (2) The establishment of license application, issuance, renewal, suspension, surrender, and revocation procedures for the various types of licenses to be issued. (3) The procedures for the issuance, renewal, suspension, and revocation of mandatory commercial licenses. (4) Time periods, not to exceed 90 days, by which the division shall approve or deny an application for mandatory commercial licensure. The failure of the division to act upon an application for licensure within the time prescribed shall not be deemed approval of the application. (5) Qualifications for licensees. (6) Security requirements, including, but not limited to, procedures for limiting access to facilities and for the screening of employees.  (b)   (c)  Each mandatory commercial license application approved by the  division   respective licensing authority  pursuant to this chapter is separate and distinct.  (c)   (d)  A mandatory commercial license application approved by the  division  respective licensing authority  pursuant to this chapter shall be valid for a period not to exceed one year from the date of approval unless revoked or suspended earlier than that date pursuant to this chapter or the rules or regulations adopted pursuant to this chapter  (e) Each regulatory authority may adopt regulations for additional licenses for any cannabis activity within its statutory jurisdiction pursuant to this chapter, as deemed necessary.   (f) Each mandatory commercial license application approved by the respective regulatory authority shall be reported to the Division of Medical Cannabis Regulation and Enforcement within 24 hours of its approval.  26041.  An individual licensed pursuant to this chapter shall do   Regulations adopted by the regulatory authorities shall require, at a minimum, all of  the following, as applicable: (a)  A  The regulations on the  cultivation  licensee   of medical cannabis  shall  do all of the following  : (1)  Comply   Require that the cultivation licensee comply  with all regulations of the Department of Food and Agriculture pursuant to this chapter regarding the cultivation of medical cannabis. (2)  Comply   Require that the cultivation licensee comply  with any other applicable requirement of the division pursuant to this chapter.  (3) Establish criteria for different tiers of cultivation licenses, including, but not limited to small, mid-sized, and large commercial cultivation licenses, based on the area, in square feet, in cannabis cultivation.   (4) Authorize commercial cultivation licensees to transport and deliver medical cannabis for commercial purposes to only another licensee of commercial cannabis activity pursuant to this chapter. Cultivation licensees, without a separate dispensary license, who deliver directly to any entity not licensed pursuant to this chapter shall be fined and be under review for the revocation of licensure by the Division of Medical Cannabis Cultivation.   (5) Require licensees to track all cannabis products and report to the division, as specified by this chapter and any regulations promulgated pursuant to this chapter.  (6) Require a cultivation licensee to obtain a seller's permit from the Board of Equalization to validate the authority of the licensee to sell commercial cannabis products to another licensee of commercial cannabis activity.   (7) Require a cultivation licensee to obtain a resale certificate upon the sale of cannabis to another licensee of commercial cannabis activity, to track the quantities exchanged.   (8) Require all medical cannabis to be tested by a laboratory that has been certified and licensed pursuant to this chapter, prior to commercial exchange with a dispensary. If the licensee has a separate dispensary license, all medical cannabis and medical cannabis products must be tested by a laboratory that has been certified and licensed pursuant to this chapter, prior to retail directly to consumers.   (9) Ensure licensed cannabis cultivation entities have access to existing agricultural incentive and support programs.  (b)  Testing licensees shall be subject to   The regulations on the testing of medical cannabis shall do all of  the following: (1)  A   Prohibit a  testing licensee  shall not receive   fr   om receiving  medical cannabis products except through  the division   a regulatory authority  or a medical cannabis licensee. (2)  A   Prohibit a  testing licensee  shall not be   from being  licensed for any  other  activity authorized under this article, and  shall not hold     from holding  an ownership interest in any real property, personal property, or other assets associated or used in any other license category. (3)  Any   Require the licensee to follow any  other applicable requirement of the division pursuant to this chapter.  (c) A manufacturing licensee shall comply with any applicable requirement of the division pursuant to this chapter.   (d) A transportation licensee of medical cannabis shall:   (c) Regulations on the manufacturing of medical cannabis shall do all of the following:   (1) Require the manufacturing licensee comply with all regulations of the State Department of Public Health pursuant to this chapter regarding the cultivation of medical cannabis.   (2) Require the manufacturing licensee comply with any other applicable requirement of the Division of Medical Cannabis Regulation and Enforcement pursuant to this chapter.   (3) Establish criteria for different tiers of manufacturing licenses, including, but not limited to small, mid-sized, and large commercial manufacturing licenses.   (4) Authorize commercial manufacturing licensees to transport and deliver medical cannabis for commercial purposes to only another licensee of commercial cannabis activity pursuant to this chapter. Manufacturing licensees, without a separate dispensary license, who deliver directly to any entity not licensed pursuant to this chapter shall be fined and be under review for the revocation of licensure by the Division of Medical Cannabis Manufacturing and Testing.   (5) Require licensees to track all cannabis products and report to the Division of Medical Cannabis Regulation and Enforcement, as specified by this chapter and any regulations promulgated pursuant to this chapter.   (6) Require a manufacturing licensee to obtain a seller's permit from the Board of Equalization to validate the authority of the licensee to sell commercial manufactured cannabis products to another licensee of commercial cannabis activity.   (7) Require a manufacturing licensee to obtain a resale certificate upon the sale of manufactured medical cannabis products to another licensee of commercial cannabis activity, to track the quantities exchanged.   (8) Require all manufactured medical cannabis and medical cannabis products to be tested by a laboratory that has been certified and licensed pursuant to this chapter, prior to commercial exchange with a dispensary. If the licensee has a separate dispensary license, all manufactured cannabis and medical cannabis products shall be tested by a laboratory that has been certified and licensed pursuant to this chapter, prior to retail sale directly to consumers.   (d) Regulations for the dispensing of medical cannabis shall do all of the following:   (1) Require the dispensary licensee comply with all regulations of the division pursuant to this chapter regarding the dispensing of medical cannabis   (2) Require the dispensary licensee comply with any other applicable requirements of the division pursuant to this chapter.   (3) Allow dispensary licensees to store limited quantities of medical cannabis and medical cannabis products for commercial purposes pursuant to this chapter, in a manner deemed safe and secure by the regulatory authority.   (4) Allow all non-mobile, non-vehicular, and non-Internet-based dispensaries to be licensed to transport medical cannabis and medical cannabis products directly to consumers.   (5) Require all mobile, vehicular and Internet-based dispensaries to maintain a business contract with a non-vehicular and non-mobile dispensary, and report all records of commercial activity to said entity.   (6) Require licensees to track all medical cannabis and medical cannabis products and report to the division, as specified by this chapter and any regulations promulgated pursuant to this chapter.   (7) Require all dispensary licensees to obtain a seller's permit from the Board of Equalization to validate the authority of the licensee to sell medical cannabis and medical cannabis products, and to maintain receipts of all sales transactions.   (8) Require that, upon receipt of medical cannabis, manufactured medical cannabis, and medical cannabis products, the dispensary licensee shall request and record evidence that the product has been tested by a laboratory that has been certified and licensed pursuant to this chapter.   (e) Regulations for the wholesale of medical cannabis shall do all of the following:   (1) Require all wholesale licensees to comply with all regulations of the division pursuant to this chapter regarding the wholesale storage and distribution of medical cannabis.   (2) Require the dispensary licensee comply with any other applicable requirements of the division pursuant to this chapter.   (3) Establish criteria for the qualifications of a wholesale licensee, including maximum quantities of medical cannabis that each licensee may store at one time.   (4) Authorize all wholesale licensees to do commercial business with only other licensees of commercial cannabis activity. All other licensees under this chapter shall not be required to work only with a wholesale licensee directly.   (5) Require that all medical cannabis and medical cannabis products be tested by the wholesale licensee prior to commercial exchange with a dispensary.   (6) Require licensees to track all medical cannabis and medical cannabis products and report to the Division on Medical Cannabis Regulation and Enforcement, as specified by this chapter and any regulations promulgated pursuant to this chapter.   (f) All regulations related to transportation of cannabis shall require a medical cannabis licensee to do all of the following:  (1) Maintain intrastate operating authority. (2) Maintain interstate operating authority,  for the commercial purposes of the licensee, and only  to the extent permitted by federal law. (3) Be allowed by local jurisdictions to transport medical cannabis, if the licensee is in compliance with this chapter.  (e) Dispensary licensees shall:   (1) Be permitted to store quantities of medical cannabis for commercial purposes pursuant to this chapter, as deemed safe by the division.   (2) Comply with all applicable requirements of the division pursuant to this chapter.  26042.  The division   Each regulatory authority  shall establish a scale of application, licensing, and renewal fees, based upon the cost of enforcing this chapter, as follows: (a)  The division   Each regulatory authority  shall charge each applicant for licensure or renewal an application or renewal fee that shall be calculated to cover the costs of processing the application or renewal. This fee may vary depending upon the varying costs associated with approving the application or renewal related to the varying activities covered by the license, but shall not exceed ____ dollars ($____) for an initial application, and ____dollars ($____) for a renewal application. (b) Upon the issuance of a license, the  division   respective   regulatory authority  shall charge each licensee a licensure fee. The licensure fee shall be calculated to cover the costs of administering this chapter, other than the costs of processing applications. The licensure fee may vary depending upon the varying costs associated with administering the various regulatory requirements of this chapter as they relate to the nature and scope of the different licensure activities, but shall not be less than ____ dollars ($____), nor more than ____ dollars ($____). (c)  The division   Each regulatory authority  shall establish appropriate fees as part of its emergency regulations for the issuance of provisional licenses adopted pursuant to Section 26043. (d) The total fees assessed pursuant to this chapter, including, but not limited to, provisional license fees set forth in Section 26054, shall be set at an amount that will fairly and proportionately generate sufficient total revenue to fully cover the total costs of administering this chapter, including, but not limited to, costs set forth in Section 26023. 26043.  The division   Each regulatory authority  shall adopt, as soon as practicable, emergency regulations consistent with this chapter to allow a qualified applicant for licensure to apply for and receive a provisional license to engage in commercial cannabis activity so as to ensure an adequate supply of medical cannabis upon full implementation of this chapter as set forth in Section 26054.  26045.   26044.  Every mandatory commercial license is renewable unless the license has been revoked if the renewal application is submitted and the fee for it is paid. A license that has been suspended, but not revoked, may be renewed under this section, however, the act of renewal shall not affect the suspension and the suspension shall remain in effect upon renewal. All licenses expire at 12 midnight on the last day of the month posted on the license. All licenses shall be renewed as follows: (a) The application to renew the license may be filed before the license expires upon payment of the annual fee. (b) For 60 days after the license expires, the license may be renewed upon payment of the annual renewal fee plus a penalty fee that shall be equal to 50 percent of the annual fee. (c) Unless otherwise terminated, or unless renewed pursuant to subdivision (a) or (b), a license that is in effect on the month posted on the license continues in effect through 12 midnight of the 60th day following the month posted on the license, at which time it is automatically canceled. (d) A license that has been canceled pursuant to subdivision (c) may be reinstated during the 30 days immediately following cancellation upon payment by cashier's check or money order of the annual renewal fee, plus a penalty fee that shall be equal to 100 percent of the annual fee. A license that has been canceled pursuant to subdivision (c) and that has not been reinstated within 30 days pursuant to this subdivision is automatically revoked on the 31st day after the license has been canceled. (e) A renewal application shall not be deemed filed within the meaning of this section unless the document itself has been actually delivered to, and the required renewal fee has been paid at, any office of the division during office hours, or unless both the document and fee have been filed and remitted pursuant to Section 11003 of the Government Code.  26045. A person shall engage in commercial cannabis activity only if the person has complied with all of the following conditions: (a) The person has obtained permission from local authorities approving the proposed commercial cannabis activity. This requirement shall not apply to a person who holds a valid business license, conditional use permit, or other locally issued permit for commercial cannabis activity. For the purposes of this subdivision, the document granting the permission shall include, at a minimum, all of the following: (1) The legal name, address and date of birth of the applicant. (2) The type of license the applicant is requesting a permit for. (3) Documentation that the applicant has been in compliance with local ordinances and regulations, including, but not limited to, an entity granted immunity under Measure D, approved by the voters of the City of Los Angeles at the May 21, 2013, general election. (4) A statement of whether or not the applicant has previously committed a felony, as described in paragraph (8) of subdivision (e) of Section 26047. (5) A statement signed by the applicant under penalty of perjury that the information provided in the application is true. (b) The person submits a copy of the permission, or equivalent qualifying documents, to the division for recordation. Upon receipt of an approved permission, the division shall provide the applicant with a certificate of approval for licensure, to be presented to the relevant regulatory authority under which the person seeks licensure. No regulatory authority shall grant approval of an application without a certificate of approval for application of commercial cannabis licensure for the applicant. (c) The person applies for licensure for commercial cannabis activity from a regulatory authority and receives approval for that licensure. (d) The person abides by all local and state ordinances and regulations pursuant to this chapter.  26046. (a) An application for a license shall include, but shall not be limited to, all of the following:  (1) A certificate of approval for licensure by the Division of Medical Cannabis Regulation and Enforcement.   (1)   (2)  The legal name and proposed physical addresses of the mandatory commercial licensee.  (2)   (3)  The name, address, and date of birth of each principal officer and board member.  (3)   (4)  Operating and inventory control procedures to ensure security and prevent diversion.  (4)   (5)  Detailed operating procedures for the proposed facility, which shall include, but not be limited to, provisions for facility and operational security, prevention of diversion, employee screening, storage of medical cannabis, personnel policies, and recordkeeping procedures.  (5)   (6)  A list of all persons or entities having an ownership interest other than a security interest, lien, or encumbrance on any property that will be used by the applicant.  (6)   (7)  Evidence of the legal right to occupy and use an established location, or an immunity from prosecution for that occupancy or use pursuant to a local ordinance or ordinances, including, but not limited to, Measure D, approved by the voters of the City of Los Angeles at the May 21, 2013, general election.  (7)   (8)  Documentation that the applicant will be in compliance with all local ordinances and regulations, including, but not limited to, an entity granted immunity under Measure D, approved by the voters of the City of Los Angeles at the May 21, 2013, general election.  (8)   (9)  Evidence that  a minimum of 75 percent   all  of the officers and owners of the applicant organization have been residents of the State of California for at least three years.  (9)  (10)  For an applicant with 20 employees or more, a statement that the applicant will enter into, or demonstrate that it has already entered into, and abide by the terms of, a "labor peace agreement," as defined by the division in consultation with the Division of Labor Standards Enforcement.  (10)   (11)  For an applicant seeking a license to cultivate, a statement declaring the applicant is an "agricultural employer," as defined in the Alatorre-Zenovich-Dunlap-Berman Agricultural Labor Relations Act of 1975 (Part 3.5 (commencing with Section 1140) of Division 2 of the Labor Code), to the extent not prohibited by law.  (11)   (12)  A statement signed by the applicant under penalty of perjury that the information provided in the application is true. (b) For applicants seeking a license to cultivate and process, the application shall also include a detailed description of the operating procedures for all of the following: (1) Cultivation. (2) Extraction and infusion methods. (3) The transportation process. (4) Inventory procedures. (5) Quality control procedures. 26047. (a) Upon receipt of an application for licensure and the applicable fee, the  division   respective regulatory authority  shall make a thorough investigation to determine whether the applicant and the premises for which a license is applied qualify for the license and whether this chapter has been complied with, and shall investigate all matters connected therewith that may affect the public welfare and morals. (b) The  division   respective regulatory authority  shall deny an application if either the applicant or the premises for which a license is applied do not qualify for licensure under this chapter. (c) The  division   respective regulatory authority  may, at its discretion, issue a license to an applicant who has obtained a certificate of rehabilitation pursuant to Section 4852.13 of the Penal Code. (d) The  division   respective regulatory authority  may place reasonable conditions upon licensure if grounds exist for denial of the license, and the division finds those grounds may be removed by the imposition of those conditions. However, the limitations set forth in paragraph (6) of subdivision (b) of Section 26040 shall not be waived. (e) The  division   respective regulatory authority  shall deny the application for licensure or renewal if any of the following conditions apply: (1) Granting or continuation of a license would be contrary to the public welfare or morals. (2) The applicant holding or seeking a license has violated any law prohibiting conduct involving moral turpitude. (3) Local agencies have notified the division and provided evidence that a licensee or applicant within its jurisdiction is in violation of local ordinances relating to cannabis activities. (4) The application has failed to state with sufficient specificity the jurisdiction in which the applicant proposes to establish operations. (5) The applicant fails to meet the requirements of this chapter or any regulation adopted pursuant to this chapter, or any applicable city or county ordinance or regulation. (6) The applicant, or any of its officers, directors, or owners, is under 21 years of age. (7) The applicant has knowingly answered a question or request for information falsely on the application form or failed to provide information requested. (8) The applicant, or any of its officers, directors, or owners has been convicted of a felony criminal conviction for drug trafficking, a violent felony, as specified in subdivision (c) of Section 667.5 of the Penal Code, a serious felony as specified in subdivision (c) of Section 1192.7 of the Penal Code, a felony offense involving fraud or deceit, or any other felony that, in the division' s determination, would impair the applicant's ability to appropriately operate as a mandatory commercial licensee. (9) The applicant, or any of its officers, directors, or owners is a licensed physician making patient recommendations for medical cannabis. (10) The applicant, or any of its officers, directors, or owners has been sanctioned by the division, a city, or a county for unlicensed commercial medical cannabis activities or has had a license revoked under this chapter in the previous three years. (11) Applicants shall be notified of a denied application in writing via personal service or mail addressed to the address of the applicant or licensee set forth in the application. The denial letter shall contain the detailed reasons for which the application has been denied. The applicant shall have the right to appeal the denial and be given a hearing within 30 days of the appeal. On appeal, the decision shall be upheld unless the applicant demonstrates that the applicant is in fact eligible for licensure and the application is in compliance with this chapter. 26048. (a) The  division   respective regulatory authority  shall electronically submit to the Department of Justice fingerprint images and related information for all applicants for cultivation, dispensing, manufacturing, and transportation licenses for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and arrests, and information regarding whether the person is free on bail, or on his or her own recognizance, pending trial or appeal. (b) The Department of Justice shall provide a response to the division pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code. (c) The division shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for persons described in this section. (d) The Department of Justice shall charge a fee sufficient to cover the reasonable cost of processing the requests described in this section. 26049. (a) The actions of a mandatory commercial licensee or provisional licensee, its employees, and its agents, permitted pursuant to a mandatory commercial license or provisional license issued by the division or otherwise permitted by this chapter, that are within the scope of the license issued pursuant to this chapter and the regulations adopted pursuant to the authority granted by this chapter, are not unlawful under state law and shall not be an offense subject to arrest, prosecution, or other sanction under state law, or be subject to a civil fine or be a basis for seizure or forfeiture of assets under law. (b) The actions of a person who, in good faith and upon investigation, allows his or her property to be used by a mandatory commercial licensee or provisional licensee, its employees, and its agents, as permitted pursuant to a mandatory commercial license or provisional license issued by the division or otherwise permitted by this chapter, are not unlawful under state law and shall not be an offense subject to arrest, prosecution, or other sanction under state law, or be subject to a civil fine or be a basis for seizure or forfeiture of assets under state law. (c) Conduct that is within the scope of a license issued pursuant to this chapter but not fully in compliance with this chapter shall be subject to the enforcement provisions of this chapter and shall not be subject to the penal provisions generally prohibiting cannabis-related activity, unless and until the license is revoked. (d) This section shall not be deemed to limit the authority or remedies of a city or county under any provision of law, including, without limitation, Section 7 of Article XI of the California Constitution or Section 26010 or 26060. 26050. (a) A licensee shall keep, at the licensed premises, accurate records of the specific commercial cannabis activity conducted by the licensee. The records shall include, at a minimum, all of the following for each batch of product: (1) The name and address of the supplier. (2) The dates on which the product was received. (3) The amounts, form, and batch and lot number. (4) The location of the cultivation site. (5) The name of the employee who received the product. (6) Records demonstrating compliance by the licensee with state and federal rules and regulations regarding reporting and taxation of income received. (b) The records shall be kept for a minimum of seven years. (c) The division may make any examination of the books and records of any licensee and may visit and inspect the premises of any licensee that the division may deem necessary to perform its duties under this chapter. (d) If the licensee or any employee of the licensee refuses, impedes, obstructs, or interferes with an inspection pursuant to this chapter or local ordinance, or if the licensee fails to maintain or provide the books and records required by this section, the license may be summarily suspended and the division shall directly commence proceedings for the revocation of the license in accordance with this chapter. (e) All cultivation, dispensing, and retail sales licensees shall be subject to an annual audit by the State Auditor in order to ensure proper documentation is kept at each site or facility. 26052. (a) This chapter shall not apply to, and shall have no diminishing effect on, the rights and protections granted to a patient or a primary caregiver pursuant to the Compassionate Use Act of 1996. (b) (1) A patient who cultivates, possesses, stores, manufactures, or transports cannabis exclusively for his or her personal medical use but who does not sell or distribute cannabis to any other person is not, thereby, engaged in commercial cannabis activity and is, therefore, exempt from the licensure requirements of this chapter. (2) A primary caregiver who cultivates, possesses, stores, manufactures, transports, donates, or provides cannabis exclusively for the personal medical purposes of a specified qualified patient for whom he or she is the primary caregiver within the meaning of Section 11362.7 of the Health and Safety Code but who does not receive remuneration for these activities except for compensation in full compliance with subdivision (c) of Section 11362.765 of the Health and Safety Code is not, thereby, engaged in commercial cannabis activity and is, therefore, exempt from the licensure requirements of this chapter. 26054. (a)  The division   Each regulatory authority  shall, as soon as practicable following January 1, 2016, allow a qualified applicant for licensure to apply for and receive a provisional license to engage in commercial cannabis activity so as to ensure an adequate supply of medical cannabis upon full implementation of this chapter. (b)  The division   Each   regulatory authority  shall establish appropriate fees not to exceed ____ dollars ($____) for the issuance of a provisional license  under its jurisdiction  pursuant to this chapter.  (c) The division shall accept applications for provisional commercial licenses for medical cannabis activity as follows:   (1) The division shall request that every city or county provide the division with a list of approved entities providing medical cannabis to qualified patients and caregivers within the city or county's jurisdiction, if any, the location at which the entity is operating, and the names of the persons who operate the entity. If the jurisdiction represents that the entity has been operating in compliance with local laws and regulations, or has limited immunity under local laws, including, but not limited to, Measure D, approved by the voters of the City of Los Angeles at the May 21, 2013, general election, the division shall issue a provisional license to the entity until the time that the entity's application for mandatory commercial licensure has been approved or denied under this chapter, but no later than 90 days after the division begins accepting applications for mandatory commercial licensure.   (2) The division   (c)     Each regulatory authority  shall issue a provisional license to individuals and entities that  the division   the regulatory authority  determines were, during the  12   3  months prior to January 1, 2016, regularly cultivating, processing, manufacturing, transporting, or distributing medical cannabis collectively or cooperatively in full compliance with  paragraphs A and B of Section IV of the Guidelines for Security and Non-Diversion of Marijuana Grown for Medical Use, issued by the Department of Justice in August 2008, and  any applicable local ordinance, to continue to do so until the licensee's application for mandatory commercial licensure has been approved or denied under this chapter, but no later than 90 days after the  division   regulatory authority  begins accepting applications for regular mandatory commercial licenses. The  division   regulatory authority  may consult with relevant local agencies in making a determination on whether a provisional license applicant is in compliance with any applicable ordinance. (d) To qualify for a provisional mandatory commercial license, applicants shall disclose to the  division   appropriate regulatory authority  all of the following information in writing: (1) The names, addresses, and dates of birth of each principal officer, owner, or board member. (2) The common street address and assessor's parcel number of the property at which the licensee conducts any activity under the authority of the licensee. (3) The common street address and assessor's parcel number of the property at which any cultivation activity was or is to be conducted. (4) For the  12   3  months prior to January 1, 2016, the quantity of cannabis cultivated, processed, manufactured, tested, transported, or sold at a location and the quantity expected to be cultivated, processed, manufactured, tested, transported, or sold from January 1, 2016, to July 1, 2016, inclusive. The licensee shall make its records of current activity and activity for the  12   3  months prior to January 1, 2016, available to the division upon request. (e) Upon receipt of the application materials and fee, the division may issue a provisional license and send a proof of issuance to the applicant, if the applicant has not committed any act or crime constituting grounds for the denial of licensure. (f) Notwithstanding any other provision of this section, the division shall not issue a provisional license to an individual or entity, or for a premises, against whom there are pending state or local administrative or judicial proceedings or actions initiated by a city, county, or city and county under any applicable local ordinance or who has been determined through those proceedings to have violated any local ordinance related to cannabis activity, or that knowingly provides false or fraudulent information on an application for licensure. (g) Entities that are provided immunity under Measure D, approved by the voters of the City of Los Angeles at the May 21, 2013, general election, shall be considered the equivalent of entities that are registered, permitted, or licensed as a medical marijuana business, dispensary, or other entity involved in providing medical marijuana to patients under a local ordinance and shall be considered in compliance with a local ordinance for the purposes of the implementation of this section. (h) Provisional licensees shall comply with all standards and requirements applicable to a licensee under this chapter, including, but not limited to, the production, recordkeeping, security, and transportation requirements and standards.  (i) Beginning July 1, 2017, all commercial cannabis activity shall be conducted between licensees of commercial cannabis activity, pursuant to this chapter. If the regulatory authorities have not promulgated their respective regulations by that date, the regulatory authorities shall provide an extension for all provisional licenses for applicants abiding by the provisions of this chapter.  26055. The  division   regulatory authority  may adopt regulations to permit the transfer of a license from a licensee to another person who demonstrates to the  division   regulatory authority  that he or she is eligible for licensure under this chapter, if the  following requirements are met:   (a) The division has determined that granting an additional license of the type in question in the geographic region in question may lead to the availability of product in excess of the amounts needed to meet the medical need.   (b)     The  prospective recipient of the license complies with all of the requirements of this chapter relating to a new application for licensure, including, but not limited to, payment to the  division   regulatory authority  of a reasonable license transfer fee. 26057.  The division   Each regulatory authority  shall make recommendations to the Legislature pertaining to the establishment of an appeals and judicial review process for persons aggrieved by a final decision of the  division   regulatory authority  . Article 4. Enforcement 26060. (a)  The division   Each regulatory authority  shall work in conjunction with law enforcement agencies for the purposes of implementing, administering, and enforcing this chapter and the division's regulations and taking appropriate action against licensees and others who fail to comply with this chapter or the regulations adopted pursuant to this chapter. (b) Nothing in this chapter or in Article 2 (commencing with Section 11357) or Article 2.5 (commencing with Section 11362.7) of Chapter 6 of Division 10 of the Health and Safety Code, shall prevent a city, county, or city and county from adopting or enforcing a zoning ordinance or other law, ordinance, or regulation that regulates the location, operation, or establishment of a licensee or other person that engages in commercial cannabis activity. 26062. Except for a person identified in Section 26052, a person shall not exercise the privilege or perform any act that a licensee may exercise or perform under the authority of a license unless the person is acting pursuant to a license, including, but not limited to, a provisional license issued pursuant to this chapter.  26063. (a) Any product containing cannabis that is distributed or offered for sale by a licensee shall comply with the testing, labeling, and food safety requirements established pursuant to this chapter. (b) No person shall steal or fraudulently use a licensee's identification certificate or license, or other licensee's identification card or license issued by the division, to acquire, cultivate, process, manufacture, test, transport, produce, possess for sale, sell, or distribute cannabis. (c) No person shall counterfeit, tamper with, or fraudulently produce an identification card or license status. (d) Any person who violates this section, or Section 26062, is guilty of a misdemeanor and shall be subject to the following penalties: (1) For the first offense, imprisonment in a county jail for no more than ____months or a fine not to exceed ____dollars ($____), or both. (2) For a second or subsequent offense, imprisonment in a county jail for no more than ____ or a fine not to exceed ____ dollars ($____), or both. (e) Any person who is charged, prosecuted, or subjected to a civil penalty under this chapter shall not also be charged or prosecuted pursuant to the Health and Safety Code for conduct arising from the same set of facts.  26064. Any person engaging in commercial cannabis activity and operating an unlicensed facility, building, structure, vehicle, mobile unit, or location in violation of this chapter shall be subject to civil penalties of up to ____ dollars ($____) for each violation, and the division or court may order the destruction of any cannabis associated with that violation. All civil fines collected pursuant to this section shall be deposited into the fines and penalties account established pursuant to Section 26028. If an action for civil penalties is brought by the Attorney General, the penalty collected shall be deposited into the General Fund pursuant to Section 26028. If the action is brought by a district attorney or county counsel, the penalty collected shall be paid to the treasurer of the county in which the judgment was entered. If the action is brought by a city attorney or city prosecutor, the penalty collected shall be paid to the treasurer of the city in which the judgment was entered. 26066. (a)  The   Any regulatory  director or any district attorney, county counsel, city attorney, or city prosecutor may bring an action in the name of the people of the State of California to enjoin a violation or the threatened violation of any provision of this chapter, including, but not limited to, a licensee's failure to correct objectionable conditions following notice or as a result of any rule promulgated pursuant to this chapter, and to assess and recover civil penalties in accordance with this chapter. The action shall be brought in the county in which the violation occurred or is threatened to occur. Any proceeding for injunctive relief brought pursuant to this chapter shall conform to the requirements of Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure. (b) A state or local agency shall immediately notify the division of any violations or arrests made for violations over which the division has jurisdiction which involve a licensee or licensed premises. Notice shall be given within 10 days of the violation or arrest. The division shall promptly cause an investigation to be made as to whether grounds exist for suspension or revocation of the license. (c) This chapter shall not be construed to limit a law enforcement agency's ability to investigate unlawful activity in relation to a mandatory commercial licensee. (d) The division shall keep a complete record of all entities licensed pursuant to this chapter. This record shall be made available on the division's Internet Web site so as to permit state and local law enforcement to verify a mandatory commercial license. (e)  The department shall authorize the   A  city, county, or city and county  to   may  impose a  "temporary local suspension"   temporary local suspension  of the license of a commercial licensee for up to 30 days for violations of this chapter. The  department   regulatory authority  shall promptly cause an investigation to be made as to whether grounds exist for continued suspension or revocation of the license.  A city, county, or city and county may impose a subsequent temporary local suspension of the   license of a commercial licensee for the same violation until the regulatory authority's investigation and all appeals are complete.  Article 5. Transportation of Medical Cannabis 26100. A  licensed transporter shall   licensee authorized to  transport medical cannabis and medical cannabis products  shall do so  only  between licensed facilities.   as set forth in this chapter.  26102. (a) Prior to transporting  medical cannabis or  medical cannabis products, a  licensed transporter   licensee authorized to transport medical cannabis or medical cannabis products  shall do both of the following: (1) Complete an electronic shipping manifest as prescribed by the division. (2) Securely transmit the manifest to the division and the licensee that will receive the medical cannabis product. (b) During transportation, the licensed transporter shall maintain a physical copy of the shipping manifest and make it available upon request to agents of the division, local law enforcement officers, or any other designated enforcement agency. (c) The licensee receiving the shipment shall maintain each electronic shipping manifest and shall make it available upon request to agents of the division, local law enforcement officers, or any other designated enforcement agency. (d) Upon receipt of the shipment, a licensed facility shall submit to the division a record verifying receipt of the shipment and the details of the shipment. 26104. (a) Transported  medical cannabis or  medical cannabis products shall be transported only in a storage compartment that is securely affixed to the interior of the transporting vehicle, and shall not be visible from outside the vehicle.  This requirement shall only apply to licensees transporting medical cannabis or medical cannabis products with a total retail value of over   five hundred dollars ($500).  (b) A vehicle transporting medical cannabis products shall travel only directly between licensed facilities. (c) All transport vehicles shall be staffed with a minimum of two employees. At least one transport member shall remain with the vehicle at all times when the vehicle contains medical cannabis.  This requirement shall only apply to licensees transporting medical cannabis or medical cannabis products with a total retail value of over five thousand dollars ($5,000).  (d) Each transport team member shall possess documentation of licensing and a government-issued identification card at all times when transporting or delivering medical cannabis and shall produce it upon the request of agents of  the division  any regulatory authority  or any law enforcement officials. 26105. (a) The division shall develop a database containing the electronic shipping manifests, which shall include, but are not limited to, the following information: (1) The quantity, or weight, and variety of products shipped. (2) The estimated times of departure and arrival. (3) The quantity or weight, and variety of products received. (4) The actual time of arrival. (5) A categorization of the product. (b) The database shall be designed to flag irregularities for  the division   any regulatory authority  to investigate.  The division   Any regulatory authority  may, at any time, inspect shipments and request documentation for current inventory. Article 6. Cannabis Employee Certification and Apprenticeship Program for Cultivation Sites and Dispensaries 26140. This article applies only to cultivation sites and dispensaries. 26140.5. The Division of Labor Standards Enforcement shall do all of the following: (a) Maintain minimum standards for the competency and training of employees of a licensed cultivator or dispensary through a system of testing and certification. (b) Maintain an advisory committee and panels as necessary to carry out its functions under this article. There shall be employer representation on the committee and panels. (c) Adopt regulations as determined to be necessary to implement this article. (d) Issue certification cards to employees certified pursuant to this article. (e) Establish registration fees in an amount reasonably necessary to implement this article, not to exceed twenty-five dollars ($25) for the initial registration. There shall be no fee for annual renewal of registration. Fees shall be placed in the fund. 26141. (a)  Commencing   By  January 1,  2019,   2017, the Division of Labor Standards Enforcement shall develop a certification program for cannabis employees. Commencing January 1, 2019,  except as provided in subdivision (c),  certification shall be required of all  persons who perform work as cannabis  employees shall be certified by the Division of Labor Standards Enforcement.   employees.  (b)  Commencing January 1, 2019, individuals   Individuals  desiring to be certified shall submit an application for certification and examination. (c) (1) Certification is not required for registered apprentices working as cannabis employees as part of  an apprenticeship program approved on or after January 1, 2019, under  a state-approved apprenticeship program. An apprentice who is within one year of completion of his or her term of apprenticeship shall be permitted to take the certification examination and, upon passing the examination, shall be certified immediately upon completion of the term of apprenticeship. (2)  On or after   Commencing    January 1, 2019, an uncertified person may perform work for which certification is otherwise required in order to acquire the necessary on-the-job experience for certification provided that the person shall be under the direct supervision of a cannabis employee certified pursuant to Section 26141 who is responsible for supervising no more than one uncertified person. (3) The Division of Labor Standards Enforcement may develop additional criteria governing this subdivision. 26141.5. (a) The following shall constitute additional grounds for disciplinary proceedings, including suspension or revocation of the license issued pursuant to this chapter: (1) The licensee willfully employs one or more uncertified persons to perform work as cannabis employees in violation of this section. (2) The licensee willfully fails to provide adequate supervision of uncertified workers. (3) The licensee willfully fails to provide adequate supervision of apprentices performing work pursuant to paragraph (1) of subdivision (c) of Section 26141. (b) The Labor Commissioner shall maintain a process for referring cases to the  Division of Medical Cannabis Regulation and Enforcement   appropriate regulatory authority  when it has been determined that a violation of this section has likely occurred. The Labor Commissioner shall have a memorandum of understanding with the  Division of Medical Cannabis Regulation and Enforcement   regulatory authorities  in furtherance of this section. (c) Upon receipt of a referral by the Labor Commissioner alleging a violation under this section, the  Division of Medical Cannabis Regulation and Enforcement  appropriate regulatory authority  shall open an investigation. Disciplinary action against the licensee shall be initiated within 60 days of the receipt of the referral. The  Division of Medical Cannabis Regulation and Enforcement   regulatory authority  may initiate disciplinary action against a licensee upon his or her own investigation, the filing of a complaint, or a finding that results from a referral from the Labor Commissioner alleging a violation under this section. Failure of the employer or employee to provide evidence of certification or apprentice status shall create a rebuttable presumption of violation of this provision. (d) This section shall become operative on January 1, 2019. SEC. 6. Section 23028 is added to the Government Code, to read: 23028. (a) (1) In addition to any authority otherwise provided by law, the board of supervisors of any county may impose, by ordinance, a tax on the privilege of cultivating, dispensing, producing, processing, preparing, storing, providing, donating, selling, or distributing cannabis by a licensee operating pursuant to the Medical Cannabis Regulation and Control Act (Chapter 18 (commencing with Section 26000) of Division 9 of the Business and Professions Code). The tax may be imposed for general governmental purposes or for purposes specified in the ordinance by the board of supervisors. (2) The board of supervisors shall specify in the ordinance proposing the tax the activities subject to the tax, the applicable rate or rates, the method of apportionment, and the manner of collection of the tax. A tax imposed pursuant to this section is a tax and not a fee or special assessment, and the tax is not required to be apportioned on the basis of benefit to any person or property or be applied uniformly to all taxpayers or all real property. (3) A tax imposed by a county pursuant to this section by a county may include a transactions and use tax imposed solely for cannabis or cannabis products, which shall otherwise conform to Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code. Notwithstanding Section 7251.1 of the Revenue and Taxation Code, the tax may be imposed at any rate specified by the board of supervisors, and the tax rate authorized by this section shall not be considered for purposes of the combined tax rate limitation established by that section. (4) The tax authorized by this section may be imposed upon any or all of the activities set forth in paragraph (1), regardless of whether the activity is undertaken individually, collectively, or cooperatively, and regardless of whether the activity is for compensation or gratuitously, as determined by the board of supervisors. (5) The board of supervisors shall specify whether the tax applies throughout the entire county or within the unincorporated area of the county. (b) In addition to any other method of collection authorized by law, the board of supervisors may provide for the collection of the tax imposed pursuant to this section in the same manner, and subject to the same penalties and priority of lien, as other charges and taxes fixed and collected by the county. (c) Any tax imposed pursuant to this section shall be subject to applicable voter approval requirements imposed by any other law. (d) For purposes of this section, "marijuana"  or "cannabis   "  shall have the meanings set forth in Section 26002 of the Business and Professions Code. (e) This section does not limit or prohibit the levy or collection or any other fee, charge, or tax, or any license or service fee or charge upon, or related to, the activities set forth in subdivision (a) as otherwise provided by law. This section shall not be construed as a limitation upon the taxing authority of any county as provided by other law. (f) The total taxation of state and local authorities shall not be in excess of 25 percent of retail prices. SEC. 7. Section 11362.775 of the Health and Safety Code is amended to read: 11362.775. (a) Qualified patients, persons with valid identification cards, and the designated primary caregivers of qualified patients and persons with identification cards, who associate within the State of California in order collectively or cooperatively to cultivate marijuana for medical purposes, shall not solely on the basis of that fact be subject to state criminal sanctions under Section 11357, 11358, 11359, 11360, 11366, 11366.5, or 11570. (b) Commencing 180 days following the issuance of provisional licenses pursuant to the Medical Cannabis Regulation and Control Act (Chapter 18 (commencing with Section 26000) of Division 9 of the Business and Professions Code), subdivision (a) shall not apply to licensees under that act.  The Division of Medical Cannabis Regulation and Enforcement   Each regulatory authority  shall post a notice on its Internet Web site indicating when it has commenced issuing provisional licenses and when the 180-day period has been exhausted. SEC. 8. Section 147.5 is added to the Labor Code, to read: 147.5. (a) By January 1, 2017, the division shall convene an advisory committee to evaluate whether there is a need to develop industry-specific regulations related to the activities of facilities issued a license pursuant to Chapter 18 (commencing with Section 26000) of Division 9 of the Business and Professions Code. (b) By July 1, 2017, the advisory committee shall present to the board its findings and recommendations for consideration by the board. By July 1, 2017, the board shall render a decision regarding the adoption of industry-specific regulations pursuant to this section. SEC. 9. Section 3094 is added to the Labor Code, to read: 3094. The Division of Apprenticeship Standards shall investigate, approve, or reject applications for apprenticeship programs for employees of a licensee subject to Article 6 (commencing with Section 26140) of Chapter 18 of Division 9 of the Business and Professions Code. The Division of Apprenticeship Standards shall adopt regulations necessary to implement and regulate the establishment of the apprenticeship programs described in this section. SEC. 10. The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. SEC. 11. The Legislature finds and declares that Section 5 of this act, which adds Chapter 18 (commencing with Section 26000) to Division 9 of the Business and Professions Code, imposes a limitation on the public's right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest: It is necessary to maintain the confidentiality of patient and physician information provided to the  Division of Medical Cannabis Regulation and Enforcement   regulatory authorities  in order to protect the private medical information of patients who use medical cannabis and to preserve the essential confidentiality of the physician and patient relationship. SEC. 12. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, 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. However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.