Professional Documents
Culture Documents
Page 1 of 37
(r) Not affect existing laws pertaining to driving or operating a vehicle or other device used for
transportation under the influence of marijuana.
(s) Maintain the ability of public and private employers to enact and enforce workplace policies
pertaining to marijuana.
(t) Prevent the illegal diversion of marijuana from California to other states or to the illegal
market.
(u) Prevent illegal production or distribution of marijuana and any associated violence or other
illegal activity, including the use of firearms.
(v) Not affect existing laws pertaining to marijuana use and possession on public lands.
(w) Not affect or amend the Compassionate Use Act of 1996.
(x) Allow industrial hemp to be grown as an agricultural product and regulated separately from
the strains of cannabis with higher delta-9 tetrahydrocannabinol concentrations.
SECTION 4. Regulation of Marijuana.
Division 10 (commencing with Section 26000) is added to the Business and Professions Code, to
read:
Division 10. Marijuana.
26000. Regulation of Marijuana.
The Legislature may enact legislation to implement this Division provided that the legislation is
consistent with the intents and purposes of the Control, Regulate, and Tax Marijuana Act and
with the requirements set forth in this Division. All provisions of this Division shall be liberally
construed and interpreted to accomplish the intents and purposes of the Control, Regulate, and
Tax Marijuana Act.
26010. Definitions.
As used in this Division, the following definitions shall apply:
(a) Customer means a person twenty-one years of age and older.
(b) Department means the Department of Alcoholic Beverage Control, or any successor
agency.
(c) Locality means a city or town, or, in reference to a location outside the boundaries of a
city or town, a county.
Page 3 of 37
(d) Manufacture means to compound, blend, extract, infuse, or otherwise make or prepare a
marijuana product.
(e) Marijuana means all parts of the plant genus Cannabis, whether growing or not; the seeds
thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds or resin, including concentrated
cannabis as defined in Section 11006.5 of the Health and Safety Code. It does not include:
(1) Industrial hemp, as defined in Section 11018.5 of the Health and Safety Code.
(2) 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.
(3) The weight of any other ingredient combined with marijuana to prepare topical or oral
administrations, food, drink, or other product.
(f) Marijuana producer means an entity licensed by the Department to produce, transport,
and package marijuana, to have marijuana tested by a marijuana testing licensee, and to sell
marijuana to other marijuana establishments.
(g) Marijuana distributor means an entity licensed by the Department to store marijuana and
to transport marijuana from a marijuana establishment to another marijuana establishment.
(h) Marijuana establishment means a marijuana cultivator, marijuana distributor, marijuana
testing facility, marijuana micro business, marijuana product manufacturer, marijuana retailer,
medical marijuana retailer, or other type of licensee created by the Department or the
Legislature.
(i) Marijuana micro business means an entity licensed to produce less than 10,000 square feet
of marijuana and to transport and package the marijuana and marijuana products, and to have
marijuana tested by a marijuana testing licensee, and to sell and deliver the marijuana and
marijuana products to other marijuana establishments and to customers.
(j) Marijuana product manufacturer means an entity licensed by the Department to purchase
marijuana, manufacture, process, transport, and package marijuana and marijuana products, to
have marijuana tested by a marijuana testing licensee, and to sell marijuana and marijuana
products to other marijuana establishments.
(k) Marijuana products means products that are manufactured and that contain marijuana or
an extract from marijuana or concentrated cannabis, including products that are comprised of
marijuana and other ingredients that are intended for use or consumption, such as, but not
limited to, edible products, ointments, and tinctures.
Page 4 of 37
(c) The Department shall have no power to license or otherwise regulate or restrict actions or
conduct that is permitted under Sections 11362.1, 11362.2, and 11362.3 of the Health and Safety
Code or under the Compassionate Use Act of 1996.
26030. Duties of Other State Regulatory Agencies.
(a) Relevant state regulatory agencies shall advise and assist the Department with the
promulgation of regulations under this Division. Relevant state agencies include but are not
necessarily limited to:
(1) California Department of Fish and Wildlife.
(2) California Department of Food and Agriculture.
(3) California Department of Pesticide Regulation.
(4) California Department of Forestry and Fire Protection.
(5) California Environmental Protection Agency.
(6) California Health and Human Services Agency.
(7) California Labor and Workforce Development Agency.
(8) California Natural Resource Agency.
(9) California State Board of Equalization.
(10) State of California Department of Industrial Relations.
(11) State of California Franchise Tax Board.
(b) State regulatory agencies shall issue applicable permits to qualified marijuana
establishments and apply and enforce generally applicable state laws, rules, and regulations to
marijuana establishments that are not in conflict with the provisions of this Division or with the
rules and regulations of the Department, and are consistent with the intents and purposes of the
Control, Regulate, and Tax Marijuana Act.
(c) State regulatory agencies may adopt rules and regulations specific to marijuana
establishments that are not in conflict with the provisions of this Division or with the rules and
regulations of the Department, and are consistent with the intents and purposes on the Control,
Regulate, and Tax Marijuana Act.
26040. Regulations.
Page 6 of 37
Page 7 of 37
Page 9 of 37
Page 10 of 37
Page 11 of 37
Page 13 of 37
Page 14 of 37
(e) A locality may adopt and enforce ordinances to allow for the smoking, vaporizing, and
ingesting of marijuana and marijuana products on the premises of a marijuana micro
businesses, a marijuana retailer, or a medical marijuana retailer licensed by the Department if:
(1) Access to the area where marijuana consumption is allowed is restricted to persons twentyone years of age and older, or in the case of a medical marijuana retailer the area where
marijuana consumption is allowed is restricted to medical marijuana patients who are eighteen
years of age or older;
(2) Marijuana consumption is not visible from any public place or non-age restricted area; and
(3) Sale or consumption of alcohol or tobacco is not allowed on the premises.
(f) A locality may establish a fee or tax for the operation of a marijuana establishment within its
jurisdiction.
26200. Marijuana Regulation Fund.
(a) The Marijuana Regulation Fund (the Regulation Fund) is hereby created within the State
Treasury.
(b) All fees collected pursuant to this Division shall be deposited into the Regulation Fund.
(c) A Special Account for Environmental Enforcement shall be established as an account within
the Regulation Fund for costs incurred by agencies responsible for enforcing regulations related
to the environmental impact of marijuana production, including the California Environmental
Protection Agency, the California Department of Fish and Wildlife, the California Department of
Forestry and Fire Protection, the California Department of Pesticide Regulation, and the
California Department of Food and Agriculture.
(d) Notwithstanding Section 16305.7 of the Government Code, the Regulation Fund and the
Special Account for Environmental Enforcement shall include any interest and dividends earned
on the money in the Regulation Fund and the Special Account for Environmental Enforcement.
(e) Notwithstanding Section 13340 of the Government Code, all moneys within the Regulation
Fund, except for the moneys in the Special Account for Environmental Enforcement, shall be
allocated, upon appropriation by the Legislature, to the Department solely for the purposes of
implementing, administering, and enforcing this Division, including but not necessarily limited
to the costs incurred by the Department for its administrative expenses.
(f) Notwithstanding Section 13340 of the Government Code, all moneys within the Special
Account for Environmental Enforcement shall be allocated, upon appropriation by the
Legislature, solely for the purposes of set forth in subdivision (c).
Page 17 of 37
Page 18 of 37
Page 19 of 37
(3) Research pertaining to the implementation and effect of the Control, Regulate, and Tax
Marijuana Act.
(4) Funding for the California Marijuana Research Program.
(5) The purposes set forth for each account in subdivision (c).
(c) The Tax Fund shall contain five separate accounts, as follows:
(1) The Treatment and Prevention Account, appropriated by the Controller to the State
Department of Health Care Services, or its successor agency, in the following formula:
(A) Fifty percent (50%) for the development and ongoing funding of evidence-based substance
abuse treatment and prevention services designed to reduce potential harms stemming from the
misuse and abuse of drugs and alcohol by persons younger than twenty-one years of age. These
services shall not rely on punitive sanctions and shall prioritize school retention and continued
learning. Up to two percent (2%) of the fifty percent (50%) shall be allocated to a public
university in California to evaluate the effectiveness of substance use disorder prevention and
treatment modalities for persons younger than twenty-one years of age, and to recommend best
practices in the fields of prevention and treatment for persons younger than twenty-one years of
age.
(B) Fifty percent (50%) for the development and ongoing funding of evidence-based, communitybased, voluntary substance abuse treatment interventions, including but not necessarily limited
to services for persons with co-occurring mental health and substance use disorders, medication
assisted treatments, and outreach and health programs for out-of treatment drug users. Up to
two percent (2%) of the fifty percent (50%) shall be allocated to a public university in California
to evaluate the effectiveness of substance use disorder prevention and treatment modalities, and
to recommend best practices in the fields of prevention and treatment.
(2) The Education Account, appropriated by the Controller to the Department of Education, or
its successor agency, to administer a grants program to public agencies aimed at improving
outcomes for public school pupils in kindergarten and grades 1 to 12, inclusive, by reducing
truancy, supporting students who are at risk of dropping out of school, and promoting
alternatives to suspension or expulsion that focus on school retention, academic remediation,
and professional care.
(3) The Safe Neighborhoods Account, appropriated by the Controller to the Board of State and
Community Corrections, or its successor agency, to administer a grants program to public
agencies aimed at supporting mental health treatment, substance abuse treatment, and diversion
programs for people in the criminal justice system, with an emphasis on programs that reduce
recidivism of people convicted or less serious crimes, and of those who have substance abuse
and mental health problems.
Page 21 of 37
Page 22 of 37
Page 23 of 37
Page 24 of 37
Page 25 of 37
Page 26 of 37
Page 27 of 37
Page 30 of 37
Page 32 of 37
Page 33 of 37
SECTION 20. Section 11362.775 of the Health and Safety Code is hereby amended to read:
11362.775. (a) Qualified patients, persons with valid identification cards, and the designated
primary caregivers of qualified patients and persons with identification cards, who associate
within the State of California in order collectively or cooperatively to cultivate marijuana for
medical purposes, shall not solely on the basis of that fact be subject to state criminal sanctions
under Section 11357, 11358, 11359, 11360, 11366, 11366.5, or 11570.
(b) The amendments to this Section take effect 365 days after the Department of Alcoholic
Beverage Control begins issuing licenses under subdivision (f) of Section 26150 of Division 10
of the Business and Professions Code.
SECTION 21. Controlled Substance.
Marijuana shall not be considered a controlled substance for the purposes of Health and Safety
Code Sections 11100 through 11250.
SECTION 22. Amendment.
Except as otherwise provided herein, this Act may be amended either by a subsequent measure
submitted to a vote of the People at a statewide election, or by a statute passed by a sixty percent
(60%) vote of the members of each house of the Legislature and signed by the Governor so long
as the amendments are consistent with and further the intents of this Act. The Legislature may by
majority vote amend, add, or repeal provisions to further reduce the penalties for any of the
offenses addressed by this Act.
SECTION 23. Conflicting Measures.
This Act is intended to be comprehensive. In the event that this Act and one or more measures
relating to the same subject appear on the same statewide ballot, the provisions of the other
Page 35 of 37
Except as otherwise provided herein, the provisions of this Act shall become operative on
January 1, 2017.
*
Page 37 of 37