California 2017-2018 Regular Session

California Assembly Bill AB2980 Latest Draft

Bill / Enrolled Version Filed 08/31/2018

                            Enrolled  August 31, 2018 Passed IN  Senate  August 28, 2018 Passed IN  Assembly  August 29, 2018 Amended IN  Senate  August 24, 2018 Amended IN  Senate  June 18, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2980Introduced by Assembly Member GipsonFebruary 16, 2018 An act to amend Sections 26001 and 26051.5 of the Business and Professions Code, relating to cannabis. LEGISLATIVE COUNSEL'S DIGESTAB 2980, Gipson. Cannabis: premises: common space.The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities. MAUCRSA requires an applicant for a cannabis license to provide a detailed diagram of the proposed premises wherein the license privileges will be exercised, including showing common or shared entryways. MAUCRSA defines premises for the purposes of the act to mean the designated structure or structures and land specified in the application for the license, as provided.This bill would define premises as the area specified in the application wherein the license privileges are, or will be, exercised, as provided. The bill would require that provisions of MAUCRSA not be construed to prohibit two or more licensed premises from sharing common use areas wherein no license privileges will be exercised so long as all licensees comply with the requirements of the act, as specified.This bill would incorporate additional changes to Section 26001 of the Business and Professions Code proposed by SB 829 to be operative only if this bill and SB 829 are enacted and this bill is enacted last.This bill would incorporate additional changes to Section 26051.5 of the Business and Professions Code proposed by AB 2799 and AB 3261 to be operative only if this bill and either or both AB 2799 and AB 3261 are enacted and this bill is enacted last.AUMA authorizes the Legislature to amend, by a majority vote, certain provisions of the act to implement specified substantive provisions, provided that the amendments are consistent with and further the purposes and intent of the act.This bill would declare that its provisions implement specified substantive provisions of AUMA. The bill would also declare that its provisions further the purposes and the intent of the act.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 26001 of the Business and Professions Code is amended to read:26001. For purposes of this division, the following definitions shall apply:(a) A-license means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(b) A-licensee means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(c) Applicant means an owner applying for a state license pursuant to this division.(d) Batch means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:(1) Harvest batch. Harvest batch means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time.(2) Manufactured cannabis batch. Manufactured cannabis batch means either of the following:(A) An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.(B) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.(e) Bureau means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.(f) Cannabis means all parts of the plant Cannabis sativa Linnaeus, 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. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. Cannabis 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. For the purpose of this division, cannabis does not mean industrial hemp as defined by Section 11018.5 of the Health and Safety Code.(g) Cannabis accessories has the same meaning as in Section 11018.2 of the Health and Safety Code.(h) Cannabis concentrate means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the products potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(i) Cannabis products has the same meaning as in Section 11018.1 of the Health and Safety Code.(j) Child resistant means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.(k) Commercial cannabis activity includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this division.(l) Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.(m) Cultivation site means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.(n) Customer means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physicians recommendation, or a primary caregiver.(o) Day care center has the same meaning as in Section 1596.76 of the Health and Safety Code.(p) Delivery means the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform.(q) Director means the Director of Consumer Affairs.(r) Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensees.(s) Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.(t) Edible cannabis product means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(u) Fund means the Cannabis Control Fund established pursuant to Section 26210.(v) Kind means applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.(w) Labeling means any label or other written, printed, or graphic matter upon a cannabis product, upon its container or wrapper, or that accompanies any cannabis product.(x) Labor peace agreement means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the states proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicants employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicants employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.(y) License means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.(z) Licensee means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.(aa) Licensing authority means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.(ab) Live plants means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.(ac) Local jurisdiction means a city, county, or city and county.(ad) Lot means a batch or a specifically identified portion of a batch.(ae) M-license means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.(af) M-licensee means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.(ag) Manufacture means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.(ah) Manufacturer means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.(ai) Medicinal cannabis or medicinal cannabis product means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physicians recommendation.(aj) Nursery means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.(ak) Operation means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.(al) Owner means any of the following:(1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.(2) The chief executive officer of a nonprofit or other entity.(3) A member of the board of directors of a nonprofit.(4) An individual who will be participating in the direction, control, or management of the person applying for a license.(am) Package means any container or receptacle used for holding cannabis or cannabis products.(an) Person includes 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 the plural as well as the singular.(ao) Physicians recommendation means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code.(ap) Premises means the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this subdivision shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.(aq) Primary caregiver has the same meaning as in Section 11362.7 of the Health and Safety Code.(ar) Purchaser means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.(as) Sell, sale, and to sell include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.(at) Testing laboratory means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:(1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.(2) Licensed by the bureau.(au) Unique identifier means an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.(av) Youth center has the same meaning as in Section 11353.1 of the Health and Safety Code.SEC. 1.5. Section 26001 of the Business and Professions Code is amended to read:26001. For purposes of this division, the following definitions shall apply:(a) A-license means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(b) A-licensee means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(c) Applicant means an owner applying for a state license pursuant to this division.(d) Batch means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:(1) Harvest batch. Harvest batch means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time.(2) Manufactured cannabis batch. Manufactured cannabis batch means either of the following:(A) An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.(B) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.(e) Bureau means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.(f) Cannabis means all parts of the plant Cannabis sativa Linnaeus, 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. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. Cannabis 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. For the purpose of this division, cannabis does not mean industrial hemp as defined by Section 11018.5 of the Health and Safety Code.(g) Cannabis accessories has the same meaning as in Section 11018.2 of the Health and Safety Code.(h) Cannabis concentrate means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the products potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(i) Cannabis products has the same meaning as in Section 11018.1 of the Health and Safety Code.(j) Child resistant means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.(k) Commercial cannabis activity includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this division.(l) Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.(m) Cultivation site means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.(n) Customer means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physicians recommendation, or a primary caregiver.(o) Day care center has the same meaning as in Section 1596.76 of the Health and Safety Code.(p) Delivery means the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform.(q) Director means the Director of Consumer Affairs.(r) Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensees.(s) Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.(t) Edible cannabis product means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(u) Fund means the Cannabis Control Fund established pursuant to Section 26210.(v) Kind means applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.(w) Labeling means any label or other written, printed, or graphic matter upon a cannabis product, upon its container or wrapper, or that accompanies any cannabis product.(x) Labor peace agreement means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the states proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicants employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicants employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.(y) License means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.(z) Licensee means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.(aa) Licensing authority means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.(ab) Live plants means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.(ac) Local jurisdiction means a city, county, or city and county.(ad) Lot means a batch or a specifically identified portion of a batch.(ae) M-license means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.(af) M-licensee means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.(ag) Manufacture means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.(ah) Manufacturer means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.(ai) Medicinal cannabis or medicinal cannabis product means cannabis or a cannabis product, respectively, intended to be sold or donated for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physicians recommendation, or intended to be donated to, and used by, a compassion care patient.(aj) Nursery means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.(ak) Operation means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.(al) Owner means any of the following:(1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.(2) The chief executive officer of a nonprofit or other entity.(3) A member of the board of directors of a nonprofit.(4) An individual who will be participating in the direction, control, or management of the person applying for a license.(am) Package means any container or receptacle used for holding cannabis or cannabis products.(an) Person includes 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 the plural as well as the singular.(ao) Physicians recommendation means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code.(ap) Premises means the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this subdivision shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (aq) Primary caregiver has the same meaning as in Section 11362.7 of the Health and Safety Code.(ar) Purchaser means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.(as) Sell, sale, and to sell include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.(at) Testing laboratory means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:(1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.(2) Licensed by the bureau.(au) Unique identifier means an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.(av) Youth center has the same meaning as in Section 11353.1 of the Health and Safety Code.SEC. 2. Section 26051.5 of the Business and Professions Code is amended to read:26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner of the applicant electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.SEC. 2.1. Section 26051.5 of the Business and Professions Code is amended to read:26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner of the applicant electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(11) (A) Provide a statement, upon initial application and application for renewal, that the applicant employs, or will employ within one year of receiving or renewing a license, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. This paragraph shall not be construed to alter or amend existing requirements for employers to provide occupational safety and health training to employees.(B) An applicant with only one employee shall not be subject to subparagraph (A). (C) For purposes of this paragraph employee has the same meaning as provided in subparagraph (B) of paragraph (5) and supervisor has the same meaning as provided in subparagraph (C) of paragraph (5). (b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.SEC. 2.2. Section 26051.5 of the Business and Professions Code is amended to read:26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.SEC. 2.3. Section 26051.5 of the Business and Professions Code is amended to read:26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(11) (A) Provide a statement, upon initial application and application for renewal, that the applicant employs, or will employ within one year of receiving or renewing a license, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. This paragraph shall not be construed to alter or amend existing requirements for employers to provide occupational safety and health training to employees.(B) An applicant with only one employee shall not be subject to subparagraph (A). (C) For purposes of this paragraph employee has the same meaning as provided in subparagraph (B) of paragraph (5) and supervisor has the same meaning as provided in subparagraph (C) of paragraph (5). (b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.SEC. 3. Section 1.5 of this bill incorporates amendments to Section 26001 of the Business and Professions Code proposed by this bill and Senate Bill 829. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 26001 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 829, in which case Section 26001 of the Business and Professions Code, as amended by Senate Bill 829, shall remain operative only until the operative date of this bill, at which time Section 1.5 of this bill shall become operative, and Section 1 of this bill shall not become operative.SEC. 4. (a) Section 2.1 of this bill incorporates amendments to Section 26051.5 of the Business and Professions Code proposed by both this bill and Assembly Bill 2799. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 26051.5 of the Business and Professions Code, and (3) Assembly Bill 3261 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Assembly Bill 2799, in which case Sections 2, 2.2, and 2.3 of this bill shall not become operative.(b) Section 2.2 of this bill incorporates amendments to Section 26051.5 of the Business and Professions Code proposed by both this bill and Assembly Bill 3261. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 26051.5 of the Business and Professions Code, (3) Assembly Bill 2799 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Assembly Bill 3261 in which case Sections 2, 2.1, and 2.3 of this bill shall not become operative.(c) Section 2.3 of this bill incorporates amendments to Section 26051.5 of the Business and Professions Code proposed by this bill, Assembly Bill 2799, and Assembly Bill 3261. That section of this bill shall only become operative if (1) all three bills are enacted and become effective on or before January 1, 2019, (2) all three bills amend Section 26051.5 of the Business and Professions Code, and (3) this bill is enacted after Assembly Bill 2799 and Assembly Bill 3261, in which case Sections 2, 2.1, and 2.2 of this bill shall not become operative.SEC. 5. The Legislature finds and declares that Sections l and 2 of this act implement the Control, Regulate and Tax Adult Use of Marijuana Act by defining premises, and that those sections are consistent with and further the purposes and intent of the act as stated in Section 3 of that act.

 Enrolled  August 31, 2018 Passed IN  Senate  August 28, 2018 Passed IN  Assembly  August 29, 2018 Amended IN  Senate  August 24, 2018 Amended IN  Senate  June 18, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2980Introduced by Assembly Member GipsonFebruary 16, 2018 An act to amend Sections 26001 and 26051.5 of the Business and Professions Code, relating to cannabis. LEGISLATIVE COUNSEL'S DIGESTAB 2980, Gipson. Cannabis: premises: common space.The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities. MAUCRSA requires an applicant for a cannabis license to provide a detailed diagram of the proposed premises wherein the license privileges will be exercised, including showing common or shared entryways. MAUCRSA defines premises for the purposes of the act to mean the designated structure or structures and land specified in the application for the license, as provided.This bill would define premises as the area specified in the application wherein the license privileges are, or will be, exercised, as provided. The bill would require that provisions of MAUCRSA not be construed to prohibit two or more licensed premises from sharing common use areas wherein no license privileges will be exercised so long as all licensees comply with the requirements of the act, as specified.This bill would incorporate additional changes to Section 26001 of the Business and Professions Code proposed by SB 829 to be operative only if this bill and SB 829 are enacted and this bill is enacted last.This bill would incorporate additional changes to Section 26051.5 of the Business and Professions Code proposed by AB 2799 and AB 3261 to be operative only if this bill and either or both AB 2799 and AB 3261 are enacted and this bill is enacted last.AUMA authorizes the Legislature to amend, by a majority vote, certain provisions of the act to implement specified substantive provisions, provided that the amendments are consistent with and further the purposes and intent of the act.This bill would declare that its provisions implement specified substantive provisions of AUMA. The bill would also declare that its provisions further the purposes and the intent of the act.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO 

 Enrolled  August 31, 2018 Passed IN  Senate  August 28, 2018 Passed IN  Assembly  August 29, 2018 Amended IN  Senate  August 24, 2018 Amended IN  Senate  June 18, 2018

Enrolled  August 31, 2018
Passed IN  Senate  August 28, 2018
Passed IN  Assembly  August 29, 2018
Amended IN  Senate  August 24, 2018
Amended IN  Senate  June 18, 2018

 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION

Assembly Bill No. 2980

Introduced by Assembly Member GipsonFebruary 16, 2018

Introduced by Assembly Member Gipson
February 16, 2018

 An act to amend Sections 26001 and 26051.5 of the Business and Professions Code, relating to cannabis. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 2980, Gipson. Cannabis: premises: common space.

The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities. MAUCRSA requires an applicant for a cannabis license to provide a detailed diagram of the proposed premises wherein the license privileges will be exercised, including showing common or shared entryways. MAUCRSA defines premises for the purposes of the act to mean the designated structure or structures and land specified in the application for the license, as provided.This bill would define premises as the area specified in the application wherein the license privileges are, or will be, exercised, as provided. The bill would require that provisions of MAUCRSA not be construed to prohibit two or more licensed premises from sharing common use areas wherein no license privileges will be exercised so long as all licensees comply with the requirements of the act, as specified.This bill would incorporate additional changes to Section 26001 of the Business and Professions Code proposed by SB 829 to be operative only if this bill and SB 829 are enacted and this bill is enacted last.This bill would incorporate additional changes to Section 26051.5 of the Business and Professions Code proposed by AB 2799 and AB 3261 to be operative only if this bill and either or both AB 2799 and AB 3261 are enacted and this bill is enacted last.AUMA authorizes the Legislature to amend, by a majority vote, certain provisions of the act to implement specified substantive provisions, provided that the amendments are consistent with and further the purposes and intent of the act.This bill would declare that its provisions implement specified substantive provisions of AUMA. The bill would also declare that its provisions further the purposes and the intent of the act.

The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities. MAUCRSA requires an applicant for a cannabis license to provide a detailed diagram of the proposed premises wherein the license privileges will be exercised, including showing common or shared entryways. MAUCRSA defines premises for the purposes of the act to mean the designated structure or structures and land specified in the application for the license, as provided.

This bill would define premises as the area specified in the application wherein the license privileges are, or will be, exercised, as provided. The bill would require that provisions of MAUCRSA not be construed to prohibit two or more licensed premises from sharing common use areas wherein no license privileges will be exercised so long as all licensees comply with the requirements of the act, as specified.

This bill would incorporate additional changes to Section 26001 of the Business and Professions Code proposed by SB 829 to be operative only if this bill and SB 829 are enacted and this bill is enacted last.

This bill would incorporate additional changes to Section 26051.5 of the Business and Professions Code proposed by AB 2799 and AB 3261 to be operative only if this bill and either or both AB 2799 and AB 3261 are enacted and this bill is enacted last.

AUMA authorizes the Legislature to amend, by a majority vote, certain provisions of the act to implement specified substantive provisions, provided that the amendments are consistent with and further the purposes and intent of the act.

This bill would declare that its provisions implement specified substantive provisions of AUMA. The bill would also declare that its provisions further the purposes and the intent of the act.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 26001 of the Business and Professions Code is amended to read:26001. For purposes of this division, the following definitions shall apply:(a) A-license means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(b) A-licensee means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(c) Applicant means an owner applying for a state license pursuant to this division.(d) Batch means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:(1) Harvest batch. Harvest batch means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time.(2) Manufactured cannabis batch. Manufactured cannabis batch means either of the following:(A) An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.(B) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.(e) Bureau means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.(f) Cannabis means all parts of the plant Cannabis sativa Linnaeus, 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. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. Cannabis 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. For the purpose of this division, cannabis does not mean industrial hemp as defined by Section 11018.5 of the Health and Safety Code.(g) Cannabis accessories has the same meaning as in Section 11018.2 of the Health and Safety Code.(h) Cannabis concentrate means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the products potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(i) Cannabis products has the same meaning as in Section 11018.1 of the Health and Safety Code.(j) Child resistant means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.(k) Commercial cannabis activity includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this division.(l) Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.(m) Cultivation site means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.(n) Customer means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physicians recommendation, or a primary caregiver.(o) Day care center has the same meaning as in Section 1596.76 of the Health and Safety Code.(p) Delivery means the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform.(q) Director means the Director of Consumer Affairs.(r) Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensees.(s) Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.(t) Edible cannabis product means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(u) Fund means the Cannabis Control Fund established pursuant to Section 26210.(v) Kind means applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.(w) Labeling means any label or other written, printed, or graphic matter upon a cannabis product, upon its container or wrapper, or that accompanies any cannabis product.(x) Labor peace agreement means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the states proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicants employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicants employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.(y) License means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.(z) Licensee means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.(aa) Licensing authority means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.(ab) Live plants means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.(ac) Local jurisdiction means a city, county, or city and county.(ad) Lot means a batch or a specifically identified portion of a batch.(ae) M-license means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.(af) M-licensee means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.(ag) Manufacture means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.(ah) Manufacturer means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.(ai) Medicinal cannabis or medicinal cannabis product means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physicians recommendation.(aj) Nursery means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.(ak) Operation means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.(al) Owner means any of the following:(1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.(2) The chief executive officer of a nonprofit or other entity.(3) A member of the board of directors of a nonprofit.(4) An individual who will be participating in the direction, control, or management of the person applying for a license.(am) Package means any container or receptacle used for holding cannabis or cannabis products.(an) Person includes 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 the plural as well as the singular.(ao) Physicians recommendation means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code.(ap) Premises means the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this subdivision shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.(aq) Primary caregiver has the same meaning as in Section 11362.7 of the Health and Safety Code.(ar) Purchaser means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.(as) Sell, sale, and to sell include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.(at) Testing laboratory means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:(1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.(2) Licensed by the bureau.(au) Unique identifier means an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.(av) Youth center has the same meaning as in Section 11353.1 of the Health and Safety Code.SEC. 1.5. Section 26001 of the Business and Professions Code is amended to read:26001. For purposes of this division, the following definitions shall apply:(a) A-license means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(b) A-licensee means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(c) Applicant means an owner applying for a state license pursuant to this division.(d) Batch means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:(1) Harvest batch. Harvest batch means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time.(2) Manufactured cannabis batch. Manufactured cannabis batch means either of the following:(A) An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.(B) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.(e) Bureau means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.(f) Cannabis means all parts of the plant Cannabis sativa Linnaeus, 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. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. Cannabis 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. For the purpose of this division, cannabis does not mean industrial hemp as defined by Section 11018.5 of the Health and Safety Code.(g) Cannabis accessories has the same meaning as in Section 11018.2 of the Health and Safety Code.(h) Cannabis concentrate means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the products potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(i) Cannabis products has the same meaning as in Section 11018.1 of the Health and Safety Code.(j) Child resistant means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.(k) Commercial cannabis activity includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this division.(l) Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.(m) Cultivation site means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.(n) Customer means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physicians recommendation, or a primary caregiver.(o) Day care center has the same meaning as in Section 1596.76 of the Health and Safety Code.(p) Delivery means the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform.(q) Director means the Director of Consumer Affairs.(r) Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensees.(s) Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.(t) Edible cannabis product means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(u) Fund means the Cannabis Control Fund established pursuant to Section 26210.(v) Kind means applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.(w) Labeling means any label or other written, printed, or graphic matter upon a cannabis product, upon its container or wrapper, or that accompanies any cannabis product.(x) Labor peace agreement means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the states proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicants employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicants employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.(y) License means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.(z) Licensee means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.(aa) Licensing authority means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.(ab) Live plants means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.(ac) Local jurisdiction means a city, county, or city and county.(ad) Lot means a batch or a specifically identified portion of a batch.(ae) M-license means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.(af) M-licensee means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.(ag) Manufacture means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.(ah) Manufacturer means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.(ai) Medicinal cannabis or medicinal cannabis product means cannabis or a cannabis product, respectively, intended to be sold or donated for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physicians recommendation, or intended to be donated to, and used by, a compassion care patient.(aj) Nursery means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.(ak) Operation means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.(al) Owner means any of the following:(1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.(2) The chief executive officer of a nonprofit or other entity.(3) A member of the board of directors of a nonprofit.(4) An individual who will be participating in the direction, control, or management of the person applying for a license.(am) Package means any container or receptacle used for holding cannabis or cannabis products.(an) Person includes 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 the plural as well as the singular.(ao) Physicians recommendation means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code.(ap) Premises means the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this subdivision shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (aq) Primary caregiver has the same meaning as in Section 11362.7 of the Health and Safety Code.(ar) Purchaser means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.(as) Sell, sale, and to sell include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.(at) Testing laboratory means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:(1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.(2) Licensed by the bureau.(au) Unique identifier means an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.(av) Youth center has the same meaning as in Section 11353.1 of the Health and Safety Code.SEC. 2. Section 26051.5 of the Business and Professions Code is amended to read:26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner of the applicant electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.SEC. 2.1. Section 26051.5 of the Business and Professions Code is amended to read:26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner of the applicant electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(11) (A) Provide a statement, upon initial application and application for renewal, that the applicant employs, or will employ within one year of receiving or renewing a license, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. This paragraph shall not be construed to alter or amend existing requirements for employers to provide occupational safety and health training to employees.(B) An applicant with only one employee shall not be subject to subparagraph (A). (C) For purposes of this paragraph employee has the same meaning as provided in subparagraph (B) of paragraph (5) and supervisor has the same meaning as provided in subparagraph (C) of paragraph (5). (b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.SEC. 2.2. Section 26051.5 of the Business and Professions Code is amended to read:26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.SEC. 2.3. Section 26051.5 of the Business and Professions Code is amended to read:26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(11) (A) Provide a statement, upon initial application and application for renewal, that the applicant employs, or will employ within one year of receiving or renewing a license, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. This paragraph shall not be construed to alter or amend existing requirements for employers to provide occupational safety and health training to employees.(B) An applicant with only one employee shall not be subject to subparagraph (A). (C) For purposes of this paragraph employee has the same meaning as provided in subparagraph (B) of paragraph (5) and supervisor has the same meaning as provided in subparagraph (C) of paragraph (5). (b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.SEC. 3. Section 1.5 of this bill incorporates amendments to Section 26001 of the Business and Professions Code proposed by this bill and Senate Bill 829. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 26001 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 829, in which case Section 26001 of the Business and Professions Code, as amended by Senate Bill 829, shall remain operative only until the operative date of this bill, at which time Section 1.5 of this bill shall become operative, and Section 1 of this bill shall not become operative.SEC. 4. (a) Section 2.1 of this bill incorporates amendments to Section 26051.5 of the Business and Professions Code proposed by both this bill and Assembly Bill 2799. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 26051.5 of the Business and Professions Code, and (3) Assembly Bill 3261 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Assembly Bill 2799, in which case Sections 2, 2.2, and 2.3 of this bill shall not become operative.(b) Section 2.2 of this bill incorporates amendments to Section 26051.5 of the Business and Professions Code proposed by both this bill and Assembly Bill 3261. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 26051.5 of the Business and Professions Code, (3) Assembly Bill 2799 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Assembly Bill 3261 in which case Sections 2, 2.1, and 2.3 of this bill shall not become operative.(c) Section 2.3 of this bill incorporates amendments to Section 26051.5 of the Business and Professions Code proposed by this bill, Assembly Bill 2799, and Assembly Bill 3261. That section of this bill shall only become operative if (1) all three bills are enacted and become effective on or before January 1, 2019, (2) all three bills amend Section 26051.5 of the Business and Professions Code, and (3) this bill is enacted after Assembly Bill 2799 and Assembly Bill 3261, in which case Sections 2, 2.1, and 2.2 of this bill shall not become operative.SEC. 5. The Legislature finds and declares that Sections l and 2 of this act implement the Control, Regulate and Tax Adult Use of Marijuana Act by defining premises, and that those sections are consistent with and further the purposes and intent of the act as stated in Section 3 of that act.

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

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

SECTION 1. Section 26001 of the Business and Professions Code is amended to read:26001. For purposes of this division, the following definitions shall apply:(a) A-license means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(b) A-licensee means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(c) Applicant means an owner applying for a state license pursuant to this division.(d) Batch means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:(1) Harvest batch. Harvest batch means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time.(2) Manufactured cannabis batch. Manufactured cannabis batch means either of the following:(A) An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.(B) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.(e) Bureau means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.(f) Cannabis means all parts of the plant Cannabis sativa Linnaeus, 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. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. Cannabis 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. For the purpose of this division, cannabis does not mean industrial hemp as defined by Section 11018.5 of the Health and Safety Code.(g) Cannabis accessories has the same meaning as in Section 11018.2 of the Health and Safety Code.(h) Cannabis concentrate means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the products potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(i) Cannabis products has the same meaning as in Section 11018.1 of the Health and Safety Code.(j) Child resistant means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.(k) Commercial cannabis activity includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this division.(l) Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.(m) Cultivation site means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.(n) Customer means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physicians recommendation, or a primary caregiver.(o) Day care center has the same meaning as in Section 1596.76 of the Health and Safety Code.(p) Delivery means the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform.(q) Director means the Director of Consumer Affairs.(r) Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensees.(s) Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.(t) Edible cannabis product means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(u) Fund means the Cannabis Control Fund established pursuant to Section 26210.(v) Kind means applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.(w) Labeling means any label or other written, printed, or graphic matter upon a cannabis product, upon its container or wrapper, or that accompanies any cannabis product.(x) Labor peace agreement means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the states proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicants employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicants employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.(y) License means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.(z) Licensee means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.(aa) Licensing authority means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.(ab) Live plants means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.(ac) Local jurisdiction means a city, county, or city and county.(ad) Lot means a batch or a specifically identified portion of a batch.(ae) M-license means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.(af) M-licensee means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.(ag) Manufacture means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.(ah) Manufacturer means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.(ai) Medicinal cannabis or medicinal cannabis product means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physicians recommendation.(aj) Nursery means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.(ak) Operation means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.(al) Owner means any of the following:(1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.(2) The chief executive officer of a nonprofit or other entity.(3) A member of the board of directors of a nonprofit.(4) An individual who will be participating in the direction, control, or management of the person applying for a license.(am) Package means any container or receptacle used for holding cannabis or cannabis products.(an) Person includes 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 the plural as well as the singular.(ao) Physicians recommendation means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code.(ap) Premises means the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this subdivision shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.(aq) Primary caregiver has the same meaning as in Section 11362.7 of the Health and Safety Code.(ar) Purchaser means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.(as) Sell, sale, and to sell include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.(at) Testing laboratory means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:(1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.(2) Licensed by the bureau.(au) Unique identifier means an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.(av) Youth center has the same meaning as in Section 11353.1 of the Health and Safety Code.

SECTION 1. Section 26001 of the Business and Professions Code is amended to read:

### SECTION 1.

26001. For purposes of this division, the following definitions shall apply:(a) A-license means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(b) A-licensee means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(c) Applicant means an owner applying for a state license pursuant to this division.(d) Batch means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:(1) Harvest batch. Harvest batch means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time.(2) Manufactured cannabis batch. Manufactured cannabis batch means either of the following:(A) An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.(B) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.(e) Bureau means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.(f) Cannabis means all parts of the plant Cannabis sativa Linnaeus, 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. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. Cannabis 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. For the purpose of this division, cannabis does not mean industrial hemp as defined by Section 11018.5 of the Health and Safety Code.(g) Cannabis accessories has the same meaning as in Section 11018.2 of the Health and Safety Code.(h) Cannabis concentrate means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the products potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(i) Cannabis products has the same meaning as in Section 11018.1 of the Health and Safety Code.(j) Child resistant means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.(k) Commercial cannabis activity includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this division.(l) Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.(m) Cultivation site means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.(n) Customer means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physicians recommendation, or a primary caregiver.(o) Day care center has the same meaning as in Section 1596.76 of the Health and Safety Code.(p) Delivery means the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform.(q) Director means the Director of Consumer Affairs.(r) Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensees.(s) Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.(t) Edible cannabis product means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(u) Fund means the Cannabis Control Fund established pursuant to Section 26210.(v) Kind means applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.(w) Labeling means any label or other written, printed, or graphic matter upon a cannabis product, upon its container or wrapper, or that accompanies any cannabis product.(x) Labor peace agreement means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the states proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicants employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicants employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.(y) License means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.(z) Licensee means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.(aa) Licensing authority means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.(ab) Live plants means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.(ac) Local jurisdiction means a city, county, or city and county.(ad) Lot means a batch or a specifically identified portion of a batch.(ae) M-license means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.(af) M-licensee means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.(ag) Manufacture means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.(ah) Manufacturer means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.(ai) Medicinal cannabis or medicinal cannabis product means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physicians recommendation.(aj) Nursery means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.(ak) Operation means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.(al) Owner means any of the following:(1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.(2) The chief executive officer of a nonprofit or other entity.(3) A member of the board of directors of a nonprofit.(4) An individual who will be participating in the direction, control, or management of the person applying for a license.(am) Package means any container or receptacle used for holding cannabis or cannabis products.(an) Person includes 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 the plural as well as the singular.(ao) Physicians recommendation means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code.(ap) Premises means the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this subdivision shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.(aq) Primary caregiver has the same meaning as in Section 11362.7 of the Health and Safety Code.(ar) Purchaser means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.(as) Sell, sale, and to sell include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.(at) Testing laboratory means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:(1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.(2) Licensed by the bureau.(au) Unique identifier means an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.(av) Youth center has the same meaning as in Section 11353.1 of the Health and Safety Code.

26001. For purposes of this division, the following definitions shall apply:(a) A-license means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(b) A-licensee means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(c) Applicant means an owner applying for a state license pursuant to this division.(d) Batch means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:(1) Harvest batch. Harvest batch means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time.(2) Manufactured cannabis batch. Manufactured cannabis batch means either of the following:(A) An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.(B) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.(e) Bureau means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.(f) Cannabis means all parts of the plant Cannabis sativa Linnaeus, 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. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. Cannabis 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. For the purpose of this division, cannabis does not mean industrial hemp as defined by Section 11018.5 of the Health and Safety Code.(g) Cannabis accessories has the same meaning as in Section 11018.2 of the Health and Safety Code.(h) Cannabis concentrate means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the products potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(i) Cannabis products has the same meaning as in Section 11018.1 of the Health and Safety Code.(j) Child resistant means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.(k) Commercial cannabis activity includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this division.(l) Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.(m) Cultivation site means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.(n) Customer means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physicians recommendation, or a primary caregiver.(o) Day care center has the same meaning as in Section 1596.76 of the Health and Safety Code.(p) Delivery means the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform.(q) Director means the Director of Consumer Affairs.(r) Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensees.(s) Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.(t) Edible cannabis product means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(u) Fund means the Cannabis Control Fund established pursuant to Section 26210.(v) Kind means applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.(w) Labeling means any label or other written, printed, or graphic matter upon a cannabis product, upon its container or wrapper, or that accompanies any cannabis product.(x) Labor peace agreement means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the states proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicants employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicants employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.(y) License means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.(z) Licensee means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.(aa) Licensing authority means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.(ab) Live plants means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.(ac) Local jurisdiction means a city, county, or city and county.(ad) Lot means a batch or a specifically identified portion of a batch.(ae) M-license means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.(af) M-licensee means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.(ag) Manufacture means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.(ah) Manufacturer means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.(ai) Medicinal cannabis or medicinal cannabis product means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physicians recommendation.(aj) Nursery means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.(ak) Operation means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.(al) Owner means any of the following:(1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.(2) The chief executive officer of a nonprofit or other entity.(3) A member of the board of directors of a nonprofit.(4) An individual who will be participating in the direction, control, or management of the person applying for a license.(am) Package means any container or receptacle used for holding cannabis or cannabis products.(an) Person includes 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 the plural as well as the singular.(ao) Physicians recommendation means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code.(ap) Premises means the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this subdivision shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.(aq) Primary caregiver has the same meaning as in Section 11362.7 of the Health and Safety Code.(ar) Purchaser means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.(as) Sell, sale, and to sell include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.(at) Testing laboratory means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:(1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.(2) Licensed by the bureau.(au) Unique identifier means an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.(av) Youth center has the same meaning as in Section 11353.1 of the Health and Safety Code.

26001. For purposes of this division, the following definitions shall apply:(a) A-license means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(b) A-licensee means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(c) Applicant means an owner applying for a state license pursuant to this division.(d) Batch means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:(1) Harvest batch. Harvest batch means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time.(2) Manufactured cannabis batch. Manufactured cannabis batch means either of the following:(A) An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.(B) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.(e) Bureau means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.(f) Cannabis means all parts of the plant Cannabis sativa Linnaeus, 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. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. Cannabis 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. For the purpose of this division, cannabis does not mean industrial hemp as defined by Section 11018.5 of the Health and Safety Code.(g) Cannabis accessories has the same meaning as in Section 11018.2 of the Health and Safety Code.(h) Cannabis concentrate means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the products potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(i) Cannabis products has the same meaning as in Section 11018.1 of the Health and Safety Code.(j) Child resistant means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.(k) Commercial cannabis activity includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this division.(l) Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.(m) Cultivation site means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.(n) Customer means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physicians recommendation, or a primary caregiver.(o) Day care center has the same meaning as in Section 1596.76 of the Health and Safety Code.(p) Delivery means the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform.(q) Director means the Director of Consumer Affairs.(r) Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensees.(s) Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.(t) Edible cannabis product means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(u) Fund means the Cannabis Control Fund established pursuant to Section 26210.(v) Kind means applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.(w) Labeling means any label or other written, printed, or graphic matter upon a cannabis product, upon its container or wrapper, or that accompanies any cannabis product.(x) Labor peace agreement means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the states proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicants employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicants employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.(y) License means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.(z) Licensee means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.(aa) Licensing authority means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.(ab) Live plants means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.(ac) Local jurisdiction means a city, county, or city and county.(ad) Lot means a batch or a specifically identified portion of a batch.(ae) M-license means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.(af) M-licensee means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.(ag) Manufacture means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.(ah) Manufacturer means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.(ai) Medicinal cannabis or medicinal cannabis product means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physicians recommendation.(aj) Nursery means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.(ak) Operation means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.(al) Owner means any of the following:(1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.(2) The chief executive officer of a nonprofit or other entity.(3) A member of the board of directors of a nonprofit.(4) An individual who will be participating in the direction, control, or management of the person applying for a license.(am) Package means any container or receptacle used for holding cannabis or cannabis products.(an) Person includes 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 the plural as well as the singular.(ao) Physicians recommendation means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code.(ap) Premises means the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this subdivision shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.(aq) Primary caregiver has the same meaning as in Section 11362.7 of the Health and Safety Code.(ar) Purchaser means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.(as) Sell, sale, and to sell include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.(at) Testing laboratory means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:(1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.(2) Licensed by the bureau.(au) Unique identifier means an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.(av) Youth center has the same meaning as in Section 11353.1 of the Health and Safety Code.



26001. For purposes of this division, the following definitions shall apply:

(a) A-license means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.

(b) A-licensee means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.

(c) Applicant means an owner applying for a state license pursuant to this division.

(d) Batch means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:

(1) Harvest batch. Harvest batch means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time.

(2) Manufactured cannabis batch. Manufactured cannabis batch means either of the following:

(A) An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.

(B) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.

(e) Bureau means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.

(f) Cannabis means all parts of the plant Cannabis sativa Linnaeus, 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. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. Cannabis 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. For the purpose of this division, cannabis does not mean industrial hemp as defined by Section 11018.5 of the Health and Safety Code.

(g) Cannabis accessories has the same meaning as in Section 11018.2 of the Health and Safety Code.

(h) Cannabis concentrate means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the products potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.

(i) Cannabis products has the same meaning as in Section 11018.1 of the Health and Safety Code.

(j) Child resistant means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.

(k) Commercial cannabis activity includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this division.

(l) Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

(m) Cultivation site means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.

(n) Customer means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physicians recommendation, or a primary caregiver.

(o) Day care center has the same meaning as in Section 1596.76 of the Health and Safety Code.

(p) Delivery means the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform.

(q) Director means the Director of Consumer Affairs.

(r) Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensees.

(s) Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.

(t) Edible cannabis product means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.

(u) Fund means the Cannabis Control Fund established pursuant to Section 26210.

(v) Kind means applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.

(w) Labeling means any label or other written, printed, or graphic matter upon a cannabis product, upon its container or wrapper, or that accompanies any cannabis product.

(x) Labor peace agreement means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the states proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicants employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicants employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.

(y) License means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.

(z) Licensee means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.

(aa) Licensing authority means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.

(ab) Live plants means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.

(ac) Local jurisdiction means a city, county, or city and county.

(ad) Lot means a batch or a specifically identified portion of a batch.

(ae) M-license means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.

(af) M-licensee means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.

(ag) Manufacture means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.

(ah) Manufacturer means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.

(ai) Medicinal cannabis or medicinal cannabis product means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physicians recommendation.

(aj) Nursery means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.

(ak) Operation means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.

(al) Owner means any of the following:

(1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.

(2) The chief executive officer of a nonprofit or other entity.

(3) A member of the board of directors of a nonprofit.

(4) An individual who will be participating in the direction, control, or management of the person applying for a license.

(am) Package means any container or receptacle used for holding cannabis or cannabis products.

(an) Person includes 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 the plural as well as the singular.

(ao) Physicians recommendation means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code.

(ap) Premises means the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this subdivision shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.

(aq) Primary caregiver has the same meaning as in Section 11362.7 of the Health and Safety Code.

(ar) Purchaser means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.

(as) Sell, sale, and to sell include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.

(at) Testing laboratory means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:

(1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.

(2) Licensed by the bureau.

(au) Unique identifier means an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.

(av) Youth center has the same meaning as in Section 11353.1 of the Health and Safety Code.

SEC. 1.5. Section 26001 of the Business and Professions Code is amended to read:26001. For purposes of this division, the following definitions shall apply:(a) A-license means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(b) A-licensee means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(c) Applicant means an owner applying for a state license pursuant to this division.(d) Batch means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:(1) Harvest batch. Harvest batch means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time.(2) Manufactured cannabis batch. Manufactured cannabis batch means either of the following:(A) An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.(B) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.(e) Bureau means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.(f) Cannabis means all parts of the plant Cannabis sativa Linnaeus, 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. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. Cannabis 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. For the purpose of this division, cannabis does not mean industrial hemp as defined by Section 11018.5 of the Health and Safety Code.(g) Cannabis accessories has the same meaning as in Section 11018.2 of the Health and Safety Code.(h) Cannabis concentrate means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the products potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(i) Cannabis products has the same meaning as in Section 11018.1 of the Health and Safety Code.(j) Child resistant means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.(k) Commercial cannabis activity includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this division.(l) Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.(m) Cultivation site means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.(n) Customer means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physicians recommendation, or a primary caregiver.(o) Day care center has the same meaning as in Section 1596.76 of the Health and Safety Code.(p) Delivery means the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform.(q) Director means the Director of Consumer Affairs.(r) Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensees.(s) Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.(t) Edible cannabis product means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(u) Fund means the Cannabis Control Fund established pursuant to Section 26210.(v) Kind means applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.(w) Labeling means any label or other written, printed, or graphic matter upon a cannabis product, upon its container or wrapper, or that accompanies any cannabis product.(x) Labor peace agreement means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the states proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicants employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicants employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.(y) License means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.(z) Licensee means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.(aa) Licensing authority means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.(ab) Live plants means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.(ac) Local jurisdiction means a city, county, or city and county.(ad) Lot means a batch or a specifically identified portion of a batch.(ae) M-license means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.(af) M-licensee means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.(ag) Manufacture means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.(ah) Manufacturer means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.(ai) Medicinal cannabis or medicinal cannabis product means cannabis or a cannabis product, respectively, intended to be sold or donated for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physicians recommendation, or intended to be donated to, and used by, a compassion care patient.(aj) Nursery means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.(ak) Operation means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.(al) Owner means any of the following:(1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.(2) The chief executive officer of a nonprofit or other entity.(3) A member of the board of directors of a nonprofit.(4) An individual who will be participating in the direction, control, or management of the person applying for a license.(am) Package means any container or receptacle used for holding cannabis or cannabis products.(an) Person includes 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 the plural as well as the singular.(ao) Physicians recommendation means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code.(ap) Premises means the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this subdivision shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (aq) Primary caregiver has the same meaning as in Section 11362.7 of the Health and Safety Code.(ar) Purchaser means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.(as) Sell, sale, and to sell include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.(at) Testing laboratory means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:(1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.(2) Licensed by the bureau.(au) Unique identifier means an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.(av) Youth center has the same meaning as in Section 11353.1 of the Health and Safety Code.

SEC. 1.5. Section 26001 of the Business and Professions Code is amended to read:

### SEC. 1.5.

26001. For purposes of this division, the following definitions shall apply:(a) A-license means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(b) A-licensee means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(c) Applicant means an owner applying for a state license pursuant to this division.(d) Batch means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:(1) Harvest batch. Harvest batch means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time.(2) Manufactured cannabis batch. Manufactured cannabis batch means either of the following:(A) An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.(B) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.(e) Bureau means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.(f) Cannabis means all parts of the plant Cannabis sativa Linnaeus, 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. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. Cannabis 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. For the purpose of this division, cannabis does not mean industrial hemp as defined by Section 11018.5 of the Health and Safety Code.(g) Cannabis accessories has the same meaning as in Section 11018.2 of the Health and Safety Code.(h) Cannabis concentrate means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the products potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(i) Cannabis products has the same meaning as in Section 11018.1 of the Health and Safety Code.(j) Child resistant means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.(k) Commercial cannabis activity includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this division.(l) Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.(m) Cultivation site means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.(n) Customer means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physicians recommendation, or a primary caregiver.(o) Day care center has the same meaning as in Section 1596.76 of the Health and Safety Code.(p) Delivery means the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform.(q) Director means the Director of Consumer Affairs.(r) Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensees.(s) Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.(t) Edible cannabis product means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(u) Fund means the Cannabis Control Fund established pursuant to Section 26210.(v) Kind means applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.(w) Labeling means any label or other written, printed, or graphic matter upon a cannabis product, upon its container or wrapper, or that accompanies any cannabis product.(x) Labor peace agreement means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the states proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicants employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicants employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.(y) License means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.(z) Licensee means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.(aa) Licensing authority means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.(ab) Live plants means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.(ac) Local jurisdiction means a city, county, or city and county.(ad) Lot means a batch or a specifically identified portion of a batch.(ae) M-license means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.(af) M-licensee means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.(ag) Manufacture means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.(ah) Manufacturer means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.(ai) Medicinal cannabis or medicinal cannabis product means cannabis or a cannabis product, respectively, intended to be sold or donated for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physicians recommendation, or intended to be donated to, and used by, a compassion care patient.(aj) Nursery means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.(ak) Operation means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.(al) Owner means any of the following:(1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.(2) The chief executive officer of a nonprofit or other entity.(3) A member of the board of directors of a nonprofit.(4) An individual who will be participating in the direction, control, or management of the person applying for a license.(am) Package means any container or receptacle used for holding cannabis or cannabis products.(an) Person includes 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 the plural as well as the singular.(ao) Physicians recommendation means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code.(ap) Premises means the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this subdivision shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (aq) Primary caregiver has the same meaning as in Section 11362.7 of the Health and Safety Code.(ar) Purchaser means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.(as) Sell, sale, and to sell include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.(at) Testing laboratory means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:(1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.(2) Licensed by the bureau.(au) Unique identifier means an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.(av) Youth center has the same meaning as in Section 11353.1 of the Health and Safety Code.

26001. For purposes of this division, the following definitions shall apply:(a) A-license means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(b) A-licensee means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(c) Applicant means an owner applying for a state license pursuant to this division.(d) Batch means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:(1) Harvest batch. Harvest batch means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time.(2) Manufactured cannabis batch. Manufactured cannabis batch means either of the following:(A) An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.(B) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.(e) Bureau means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.(f) Cannabis means all parts of the plant Cannabis sativa Linnaeus, 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. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. Cannabis 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. For the purpose of this division, cannabis does not mean industrial hemp as defined by Section 11018.5 of the Health and Safety Code.(g) Cannabis accessories has the same meaning as in Section 11018.2 of the Health and Safety Code.(h) Cannabis concentrate means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the products potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(i) Cannabis products has the same meaning as in Section 11018.1 of the Health and Safety Code.(j) Child resistant means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.(k) Commercial cannabis activity includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this division.(l) Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.(m) Cultivation site means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.(n) Customer means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physicians recommendation, or a primary caregiver.(o) Day care center has the same meaning as in Section 1596.76 of the Health and Safety Code.(p) Delivery means the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform.(q) Director means the Director of Consumer Affairs.(r) Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensees.(s) Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.(t) Edible cannabis product means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(u) Fund means the Cannabis Control Fund established pursuant to Section 26210.(v) Kind means applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.(w) Labeling means any label or other written, printed, or graphic matter upon a cannabis product, upon its container or wrapper, or that accompanies any cannabis product.(x) Labor peace agreement means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the states proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicants employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicants employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.(y) License means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.(z) Licensee means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.(aa) Licensing authority means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.(ab) Live plants means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.(ac) Local jurisdiction means a city, county, or city and county.(ad) Lot means a batch or a specifically identified portion of a batch.(ae) M-license means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.(af) M-licensee means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.(ag) Manufacture means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.(ah) Manufacturer means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.(ai) Medicinal cannabis or medicinal cannabis product means cannabis or a cannabis product, respectively, intended to be sold or donated for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physicians recommendation, or intended to be donated to, and used by, a compassion care patient.(aj) Nursery means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.(ak) Operation means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.(al) Owner means any of the following:(1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.(2) The chief executive officer of a nonprofit or other entity.(3) A member of the board of directors of a nonprofit.(4) An individual who will be participating in the direction, control, or management of the person applying for a license.(am) Package means any container or receptacle used for holding cannabis or cannabis products.(an) Person includes 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 the plural as well as the singular.(ao) Physicians recommendation means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code.(ap) Premises means the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this subdivision shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (aq) Primary caregiver has the same meaning as in Section 11362.7 of the Health and Safety Code.(ar) Purchaser means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.(as) Sell, sale, and to sell include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.(at) Testing laboratory means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:(1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.(2) Licensed by the bureau.(au) Unique identifier means an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.(av) Youth center has the same meaning as in Section 11353.1 of the Health and Safety Code.

26001. For purposes of this division, the following definitions shall apply:(a) A-license means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(b) A-licensee means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.(c) Applicant means an owner applying for a state license pursuant to this division.(d) Batch means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:(1) Harvest batch. Harvest batch means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time.(2) Manufactured cannabis batch. Manufactured cannabis batch means either of the following:(A) An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.(B) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.(e) Bureau means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.(f) Cannabis means all parts of the plant Cannabis sativa Linnaeus, 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. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. Cannabis 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. For the purpose of this division, cannabis does not mean industrial hemp as defined by Section 11018.5 of the Health and Safety Code.(g) Cannabis accessories has the same meaning as in Section 11018.2 of the Health and Safety Code.(h) Cannabis concentrate means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the products potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(i) Cannabis products has the same meaning as in Section 11018.1 of the Health and Safety Code.(j) Child resistant means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.(k) Commercial cannabis activity includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this division.(l) Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.(m) Cultivation site means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.(n) Customer means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physicians recommendation, or a primary caregiver.(o) Day care center has the same meaning as in Section 1596.76 of the Health and Safety Code.(p) Delivery means the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform.(q) Director means the Director of Consumer Affairs.(r) Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensees.(s) Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.(t) Edible cannabis product means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.(u) Fund means the Cannabis Control Fund established pursuant to Section 26210.(v) Kind means applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.(w) Labeling means any label or other written, printed, or graphic matter upon a cannabis product, upon its container or wrapper, or that accompanies any cannabis product.(x) Labor peace agreement means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the states proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicants employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicants employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.(y) License means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.(z) Licensee means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.(aa) Licensing authority means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.(ab) Live plants means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.(ac) Local jurisdiction means a city, county, or city and county.(ad) Lot means a batch or a specifically identified portion of a batch.(ae) M-license means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.(af) M-licensee means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.(ag) Manufacture means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.(ah) Manufacturer means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.(ai) Medicinal cannabis or medicinal cannabis product means cannabis or a cannabis product, respectively, intended to be sold or donated for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physicians recommendation, or intended to be donated to, and used by, a compassion care patient.(aj) Nursery means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.(ak) Operation means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.(al) Owner means any of the following:(1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.(2) The chief executive officer of a nonprofit or other entity.(3) A member of the board of directors of a nonprofit.(4) An individual who will be participating in the direction, control, or management of the person applying for a license.(am) Package means any container or receptacle used for holding cannabis or cannabis products.(an) Person includes 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 the plural as well as the singular.(ao) Physicians recommendation means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code.(ap) Premises means the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this subdivision shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (aq) Primary caregiver has the same meaning as in Section 11362.7 of the Health and Safety Code.(ar) Purchaser means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.(as) Sell, sale, and to sell include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.(at) Testing laboratory means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:(1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.(2) Licensed by the bureau.(au) Unique identifier means an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.(av) Youth center has the same meaning as in Section 11353.1 of the Health and Safety Code.



26001. For purposes of this division, the following definitions shall apply:

(a) A-license means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.

(b) A-licensee means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation.

(c) Applicant means an owner applying for a state license pursuant to this division.

(d) Batch means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:

(1) Harvest batch. Harvest batch means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time.

(2) Manufactured cannabis batch. Manufactured cannabis batch means either of the following:

(A) An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.

(B) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.

(e) Bureau means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.

(f) Cannabis means all parts of the plant Cannabis sativa Linnaeus, 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. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. Cannabis 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. For the purpose of this division, cannabis does not mean industrial hemp as defined by Section 11018.5 of the Health and Safety Code.

(g) Cannabis accessories has the same meaning as in Section 11018.2 of the Health and Safety Code.

(h) Cannabis concentrate means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the products potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.

(i) Cannabis products has the same meaning as in Section 11018.1 of the Health and Safety Code.

(j) Child resistant means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.

(k) Commercial cannabis activity includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this division.

(l) Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

(m) Cultivation site means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.

(n) Customer means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physicians recommendation, or a primary caregiver.

(o) Day care center has the same meaning as in Section 1596.76 of the Health and Safety Code.

(p) Delivery means the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform.

(q) Director means the Director of Consumer Affairs.

(r) Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensees.

(s) Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.

(t) Edible cannabis product means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.

(u) Fund means the Cannabis Control Fund established pursuant to Section 26210.

(v) Kind means applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.

(w) Labeling means any label or other written, printed, or graphic matter upon a cannabis product, upon its container or wrapper, or that accompanies any cannabis product.

(x) Labor peace agreement means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the states proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicants employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicants employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.

(y) License means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.

(z) Licensee means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.

(aa) Licensing authority means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.

(ab) Live plants means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.

(ac) Local jurisdiction means a city, county, or city and county.

(ad) Lot means a batch or a specifically identified portion of a batch.

(ae) M-license means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.

(af) M-licensee means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.

(ag) Manufacture means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.

(ah) Manufacturer means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.

(ai) Medicinal cannabis or medicinal cannabis product means cannabis or a cannabis product, respectively, intended to be sold or donated for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physicians recommendation, or intended to be donated to, and used by, a compassion care patient.

(aj) Nursery means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.

(ak) Operation means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.

(al) Owner means any of the following:

(1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.

(2) The chief executive officer of a nonprofit or other entity.

(3) A member of the board of directors of a nonprofit.

(4) An individual who will be participating in the direction, control, or management of the person applying for a license.

(am) Package means any container or receptacle used for holding cannabis or cannabis products.

(an) Person includes 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 the plural as well as the singular.

(ao) Physicians recommendation means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code.

(ap) Premises means the contiguous area wherein the license privileges are, or will be, exercised, as diagramed in the application for licensure and for which a separate license is required. Nothing in this subdivision shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. 

(aq) Primary caregiver has the same meaning as in Section 11362.7 of the Health and Safety Code.

(ar) Purchaser means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.

(as) Sell, sale, and to sell include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.

(at) Testing laboratory means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:

(1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.

(2) Licensed by the bureau.

(au) Unique identifier means an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.

(av) Youth center has the same meaning as in Section 11353.1 of the Health and Safety Code.

SEC. 2. Section 26051.5 of the Business and Professions Code is amended to read:26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner of the applicant electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.

SEC. 2. Section 26051.5 of the Business and Professions Code is amended to read:

### SEC. 2.

26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner of the applicant electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.

26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner of the applicant electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.

26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner of the applicant electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.



26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:

(1) Require that each owner of the applicant electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.

(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.

(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.

(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.

(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.

(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.

(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.

(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.

(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.

(5) (A) For an applicant with 20 or more employees, provide 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.

(B) For the purposes of this paragraph, employee does not include a supervisor.

(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.

(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.

(7) Provide any other information required by the licensing authority.

(8) For an applicant seeking a cultivation license, provide 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.

(9) Pay all applicable fees required for licensure by the licensing authority.

(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.

(b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:

(1) Cultivation.

(2) Extraction and infusion methods.

(3) The transportation process.

(4) Inventory procedures.

(5) Quality control procedures.

(6) Security protocols.

(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.

(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.

(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. 

(d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.

SEC. 2.1. Section 26051.5 of the Business and Professions Code is amended to read:26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner of the applicant electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(11) (A) Provide a statement, upon initial application and application for renewal, that the applicant employs, or will employ within one year of receiving or renewing a license, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. This paragraph shall not be construed to alter or amend existing requirements for employers to provide occupational safety and health training to employees.(B) An applicant with only one employee shall not be subject to subparagraph (A). (C) For purposes of this paragraph employee has the same meaning as provided in subparagraph (B) of paragraph (5) and supervisor has the same meaning as provided in subparagraph (C) of paragraph (5). (b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.

SEC. 2.1. Section 26051.5 of the Business and Professions Code is amended to read:

### SEC. 2.1.

26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner of the applicant electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(11) (A) Provide a statement, upon initial application and application for renewal, that the applicant employs, or will employ within one year of receiving or renewing a license, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. This paragraph shall not be construed to alter or amend existing requirements for employers to provide occupational safety and health training to employees.(B) An applicant with only one employee shall not be subject to subparagraph (A). (C) For purposes of this paragraph employee has the same meaning as provided in subparagraph (B) of paragraph (5) and supervisor has the same meaning as provided in subparagraph (C) of paragraph (5). (b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.

26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner of the applicant electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(11) (A) Provide a statement, upon initial application and application for renewal, that the applicant employs, or will employ within one year of receiving or renewing a license, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. This paragraph shall not be construed to alter or amend existing requirements for employers to provide occupational safety and health training to employees.(B) An applicant with only one employee shall not be subject to subparagraph (A). (C) For purposes of this paragraph employee has the same meaning as provided in subparagraph (B) of paragraph (5) and supervisor has the same meaning as provided in subparagraph (C) of paragraph (5). (b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.

26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner of the applicant electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(11) (A) Provide a statement, upon initial application and application for renewal, that the applicant employs, or will employ within one year of receiving or renewing a license, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. This paragraph shall not be construed to alter or amend existing requirements for employers to provide occupational safety and health training to employees.(B) An applicant with only one employee shall not be subject to subparagraph (A). (C) For purposes of this paragraph employee has the same meaning as provided in subparagraph (B) of paragraph (5) and supervisor has the same meaning as provided in subparagraph (C) of paragraph (5). (b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.



26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:

(1) Require that each owner of the applicant electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.

(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.

(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.

(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.

(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.

(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.

(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.

(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.

(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.

(5) (A) For an applicant with 20 or more employees, provide 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.

(B) For the purposes of this paragraph, employee does not include a supervisor.

(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.

(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.

(7) Provide any other information required by the licensing authority.

(8) For an applicant seeking a cultivation license, provide 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.

(9) Pay all applicable fees required for licensure by the licensing authority.

(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.

(11) (A) Provide a statement, upon initial application and application for renewal, that the applicant employs, or will employ within one year of receiving or renewing a license, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. This paragraph shall not be construed to alter or amend existing requirements for employers to provide occupational safety and health training to employees.

(B) An applicant with only one employee shall not be subject to subparagraph (A). 

(C) For purposes of this paragraph employee has the same meaning as provided in subparagraph (B) of paragraph (5) and supervisor has the same meaning as provided in subparagraph (C) of paragraph (5). 

(b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:

(1) Cultivation.

(2) Extraction and infusion methods.

(3) The transportation process.

(4) Inventory procedures.

(5) Quality control procedures.

(6) Security protocols.

(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.

(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.

(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. 

(d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.

SEC. 2.2. Section 26051.5 of the Business and Professions Code is amended to read:26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.

SEC. 2.2. Section 26051.5 of the Business and Professions Code is amended to read:

### SEC. 2.2.

26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.

26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.

26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.



26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:

(1) Require that each owner electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.

(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.

(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.

(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.

(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.

(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.

(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.

(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.

(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.

(5) (A) For an applicant with 20 or more employees, provide 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.

(B) For the purposes of this paragraph, employee does not include a supervisor.

(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.

(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.

(7) Provide any other information required by the licensing authority.

(8) For an applicant seeking a cultivation license, provide 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.

(9) Pay all applicable fees required for licensure by the licensing authority.

(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.

(b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:

(1) Cultivation.

(2) Extraction and infusion methods.

(3) The transportation process.

(4) Inventory procedures.

(5) Quality control procedures.

(6) Security protocols.

(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.

(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.

(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. 

(d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.

SEC. 2.3. Section 26051.5 of the Business and Professions Code is amended to read:26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(11) (A) Provide a statement, upon initial application and application for renewal, that the applicant employs, or will employ within one year of receiving or renewing a license, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. This paragraph shall not be construed to alter or amend existing requirements for employers to provide occupational safety and health training to employees.(B) An applicant with only one employee shall not be subject to subparagraph (A). (C) For purposes of this paragraph employee has the same meaning as provided in subparagraph (B) of paragraph (5) and supervisor has the same meaning as provided in subparagraph (C) of paragraph (5). (b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.

SEC. 2.3. Section 26051.5 of the Business and Professions Code is amended to read:

### SEC. 2.3.

26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(11) (A) Provide a statement, upon initial application and application for renewal, that the applicant employs, or will employ within one year of receiving or renewing a license, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. This paragraph shall not be construed to alter or amend existing requirements for employers to provide occupational safety and health training to employees.(B) An applicant with only one employee shall not be subject to subparagraph (A). (C) For purposes of this paragraph employee has the same meaning as provided in subparagraph (B) of paragraph (5) and supervisor has the same meaning as provided in subparagraph (C) of paragraph (5). (b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.

26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(11) (A) Provide a statement, upon initial application and application for renewal, that the applicant employs, or will employ within one year of receiving or renewing a license, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. This paragraph shall not be construed to alter or amend existing requirements for employers to provide occupational safety and health training to employees.(B) An applicant with only one employee shall not be subject to subparagraph (A). (C) For purposes of this paragraph employee has the same meaning as provided in subparagraph (B) of paragraph (5) and supervisor has the same meaning as provided in subparagraph (C) of paragraph (5). (b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.

26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:(1) Require that each owner electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.(5) (A) For an applicant with 20 or more employees, provide 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.(B) For the purposes of this paragraph, employee does not include a supervisor.(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.(7) Provide any other information required by the licensing authority.(8) For an applicant seeking a cultivation license, provide 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.(9) Pay all applicable fees required for licensure by the licensing authority.(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.(11) (A) Provide a statement, upon initial application and application for renewal, that the applicant employs, or will employ within one year of receiving or renewing a license, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. This paragraph shall not be construed to alter or amend existing requirements for employers to provide occupational safety and health training to employees.(B) An applicant with only one employee shall not be subject to subparagraph (A). (C) For purposes of this paragraph employee has the same meaning as provided in subparagraph (B) of paragraph (5) and supervisor has the same meaning as provided in subparagraph (C) of paragraph (5). (b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:(1) Cultivation.(2) Extraction and infusion methods.(3) The transportation process.(4) Inventory procedures.(5) Quality control procedures.(6) Security protocols.(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. (d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.



26051.5. (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:

(1) Require that each owner electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all applicants for any type of state license issued pursuant to this division, for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.

(A) Notwithstanding any other law, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant for any state license under this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.

(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.

(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.

(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.

(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.

(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowners agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.

(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.

(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.

(5) (A) For an applicant with 20 or more employees, provide 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.

(B) For the purposes of this paragraph, employee does not include a supervisor.

(C) For the purposes of this paragraph, supervisor means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.

(6) Provide the applicants valid sellers permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a sellers permit.

(7) Provide any other information required by the licensing authority.

(8) For an applicant seeking a cultivation license, provide 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.

(9) Pay all applicable fees required for licensure by the licensing authority.

(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.

(11) (A) Provide a statement, upon initial application and application for renewal, that the applicant employs, or will employ within one year of receiving or renewing a license, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. This paragraph shall not be construed to alter or amend existing requirements for employers to provide occupational safety and health training to employees.

(B) An applicant with only one employee shall not be subject to subparagraph (A). 

(C) For purposes of this paragraph employee has the same meaning as provided in subparagraph (B) of paragraph (5) and supervisor has the same meaning as provided in subparagraph (C) of paragraph (5). 

(b) An applicant shall also include in the application a detailed description of the applicants operating procedures for all of the following, as required by the licensing authority:

(1) Cultivation.

(2) Extraction and infusion methods.

(3) The transportation process.

(4) Inventory procedures.

(5) Quality control procedures.

(6) Security protocols.

(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, cultivation as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.

(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.

(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, hallway, or loading dock, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division. 

(d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, persons with a financial interest does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.

SEC. 3. Section 1.5 of this bill incorporates amendments to Section 26001 of the Business and Professions Code proposed by this bill and Senate Bill 829. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 26001 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 829, in which case Section 26001 of the Business and Professions Code, as amended by Senate Bill 829, shall remain operative only until the operative date of this bill, at which time Section 1.5 of this bill shall become operative, and Section 1 of this bill shall not become operative.

SEC. 3. Section 1.5 of this bill incorporates amendments to Section 26001 of the Business and Professions Code proposed by this bill and Senate Bill 829. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 26001 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 829, in which case Section 26001 of the Business and Professions Code, as amended by Senate Bill 829, shall remain operative only until the operative date of this bill, at which time Section 1.5 of this bill shall become operative, and Section 1 of this bill shall not become operative.

SEC. 3. Section 1.5 of this bill incorporates amendments to Section 26001 of the Business and Professions Code proposed by this bill and Senate Bill 829. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 26001 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 829, in which case Section 26001 of the Business and Professions Code, as amended by Senate Bill 829, shall remain operative only until the operative date of this bill, at which time Section 1.5 of this bill shall become operative, and Section 1 of this bill shall not become operative.

### SEC. 3.

SEC. 4. (a) Section 2.1 of this bill incorporates amendments to Section 26051.5 of the Business and Professions Code proposed by both this bill and Assembly Bill 2799. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 26051.5 of the Business and Professions Code, and (3) Assembly Bill 3261 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Assembly Bill 2799, in which case Sections 2, 2.2, and 2.3 of this bill shall not become operative.(b) Section 2.2 of this bill incorporates amendments to Section 26051.5 of the Business and Professions Code proposed by both this bill and Assembly Bill 3261. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 26051.5 of the Business and Professions Code, (3) Assembly Bill 2799 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Assembly Bill 3261 in which case Sections 2, 2.1, and 2.3 of this bill shall not become operative.(c) Section 2.3 of this bill incorporates amendments to Section 26051.5 of the Business and Professions Code proposed by this bill, Assembly Bill 2799, and Assembly Bill 3261. That section of this bill shall only become operative if (1) all three bills are enacted and become effective on or before January 1, 2019, (2) all three bills amend Section 26051.5 of the Business and Professions Code, and (3) this bill is enacted after Assembly Bill 2799 and Assembly Bill 3261, in which case Sections 2, 2.1, and 2.2 of this bill shall not become operative.

SEC. 4. (a) Section 2.1 of this bill incorporates amendments to Section 26051.5 of the Business and Professions Code proposed by both this bill and Assembly Bill 2799. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 26051.5 of the Business and Professions Code, and (3) Assembly Bill 3261 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Assembly Bill 2799, in which case Sections 2, 2.2, and 2.3 of this bill shall not become operative.(b) Section 2.2 of this bill incorporates amendments to Section 26051.5 of the Business and Professions Code proposed by both this bill and Assembly Bill 3261. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 26051.5 of the Business and Professions Code, (3) Assembly Bill 2799 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Assembly Bill 3261 in which case Sections 2, 2.1, and 2.3 of this bill shall not become operative.(c) Section 2.3 of this bill incorporates amendments to Section 26051.5 of the Business and Professions Code proposed by this bill, Assembly Bill 2799, and Assembly Bill 3261. That section of this bill shall only become operative if (1) all three bills are enacted and become effective on or before January 1, 2019, (2) all three bills amend Section 26051.5 of the Business and Professions Code, and (3) this bill is enacted after Assembly Bill 2799 and Assembly Bill 3261, in which case Sections 2, 2.1, and 2.2 of this bill shall not become operative.

SEC. 4. (a) Section 2.1 of this bill incorporates amendments to Section 26051.5 of the Business and Professions Code proposed by both this bill and Assembly Bill 2799. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 26051.5 of the Business and Professions Code, and (3) Assembly Bill 3261 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Assembly Bill 2799, in which case Sections 2, 2.2, and 2.3 of this bill shall not become operative.

### SEC. 4.

(b) Section 2.2 of this bill incorporates amendments to Section 26051.5 of the Business and Professions Code proposed by both this bill and Assembly Bill 3261. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 26051.5 of the Business and Professions Code, (3) Assembly Bill 2799 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Assembly Bill 3261 in which case Sections 2, 2.1, and 2.3 of this bill shall not become operative.

(c) Section 2.3 of this bill incorporates amendments to Section 26051.5 of the Business and Professions Code proposed by this bill, Assembly Bill 2799, and Assembly Bill 3261. That section of this bill shall only become operative if (1) all three bills are enacted and become effective on or before January 1, 2019, (2) all three bills amend Section 26051.5 of the Business and Professions Code, and (3) this bill is enacted after Assembly Bill 2799 and Assembly Bill 3261, in which case Sections 2, 2.1, and 2.2 of this bill shall not become operative.

SEC. 5. The Legislature finds and declares that Sections l and 2 of this act implement the Control, Regulate and Tax Adult Use of Marijuana Act by defining premises, and that those sections are consistent with and further the purposes and intent of the act as stated in Section 3 of that act.

SEC. 5. The Legislature finds and declares that Sections l and 2 of this act implement the Control, Regulate and Tax Adult Use of Marijuana Act by defining premises, and that those sections are consistent with and further the purposes and intent of the act as stated in Section 3 of that act.

SEC. 5. The Legislature finds and declares that Sections l and 2 of this act implement the Control, Regulate and Tax Adult Use of Marijuana Act by defining premises, and that those sections are consistent with and further the purposes and intent of the act as stated in Section 3 of that act.

### SEC. 5.