Cannabis: licensure and regulation.

(1) Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA) , an initiative measure enacted as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. Existing law, the Medical Cannabis Regulation and Safety Act (MCRSA) , also authorizes a person who obtains both a state license under MCRSA and the relevant local license to engage in commercial medicinal cannabis activity pursuant to those licenses, as specified. Both MCRSA and AUMA generally divide responsibility for state licensure and regulation between the Bureau of Marijuana Control (bureau) within the Department of Consumer Affairs, which serves as the lead state agency, the Department of Food and Agriculture, and the State Department of Public Health. AUMA requires the licensing authorities to begin issuing licenses to engage in commercial adult-use cannabis activity by January 1, 2018. Senate Bill 94 of the 2017–18 Regular Session (SB 94) , effective immediately upon enactment, would consolidate the provisions providing for the licensure and regulation of commercial medicinal cannabis activity and commercial adult-use cannabis activity under a single regulatory scheme, which would be known as the Medicinal and Adult-Use Regulation and Safety Act (MAUCRSA) , by repealing MCRSA, incorporating certain provisions of MCRSA into the licensing provisions of AUMA, and making a variety of conforming and related changes. AUMA defines "delivery" for the above-described purposes as meaning the commercial transfer of adult-use cannabis or cannabis products to a customer and including the use by a retailer of any technology platform owned and controlled by the retailer, or independently licensed, that enables customers to arrange for or facilitate the commercial transfer by a licensed retailer of adult-use cannabis or cannabis products. Under MAUCRSA, if SB 94 is enacted, "delivery" would no longer include the use by a retailer of any technology platform independently licensed. This bill would expand MAUCRSA's definition of "delivery" to include the use by a retailer of any technology platform owned, leased, or controlled by the retailer. (2) MCRSA and AUMA prohibit, and if SB 94 is enacted, MAUCRSA would prohibit, a person licensed to test cannabis or cannabis products from obtaining licensure for any other commercial cannabis activity. Although MCRSA also prohibits testing licensees from owning or having an ownership interest in any entity or premises licensed under a different category pursuant to MCRSA, and although AUMA also prohibits testing licensees from owning or having an ownership interest in a non-testing facility, SB 94 would repeal these additional prohibitions and instead prohibit a testing licensee from employing an individual who is also employed by any other licensee that does not hold a state testing laboratory license. SB 94 would condition a person's eligibility for more than one license under MAUCRSA upon a requirement that the licensed premises be separate and distinct. This bill, if SB 94 is enacted, would repeal that separate and distinct premises requirement. The bill would also prohibit a testing licensee under MAUCRSA from owning, or having an ownership interest in, a premises licensed under MAUCRSA for any activity except testing. (3) Existing law makes it an infraction punishable by a fine not exceeding $100 for a person to possess not more than one ounce of cannabis while driving a motor vehicle, as specified, unless otherwise authorized by law. SB 94, effective immediately upon enactment, would repeal that provision and instead make it an infraction punishable by a fine not exceeding $100 for a person to possess a receptacle containing cannabis or cannabis product that has been opened, or a seal broken, or to possess loose cannabis flower not in a container, while driving a motor vehicle, with certain exceptions. This bill would require a retailer, microbusiness, or nonprofit licensed under MAUCRSA to display a sign educating its customers on California's laws on transporting cannabis or cannabis products in a vehicle, in accordance with the above-described provisions. (4) Existing law, the Model State Trademark Law, provides for the registration of trademarks and service marks with the Secretary of State and requires the classification of goods and services for those purposes to conform to the classifications adopted by the United States Patent and Trademark Office. This bill, for purposes of marks for which a certificate of registration is issued on or after January 1, 2018, would, notwithstanding those provisions, authorize the use of specified classifications for marks related to cannabis, including medicinal cannabis, goods and services that are lawfully in commerce under state law in the State of California. (5) Existing law exempts qualified medicinal cannabis patients with valid identification cards, the designated primary caregivers of those patients, and persons with identification cards who associate within the State of California in order, collectively or cooperatively, to cultivate cannabis for medicinal purposes from specified criminal liability, including possession, cultivation, and transport of cannabis until one year after the bureau posts a notice on its Internet Web site that licenses for commercial cannabis activity have begun being issued. This bill would authorize these collectives and cooperatives to operate for profit or not for profit. The bill would limit the protection for collectives and collaboratives operating for profit to those collectives and collaboratives that possess a valid seller's permit from the State Board of Equalization and a valid local license, permit, or other authorization. (6) AUMA authorizes the Legislature to amend its provisions by a 23 vote of each house if the amendment furthers its purposes and intent. This bill would state that the bill furthers the purposes and intent of AUMA for specified reasons.