Existing law, 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.

Existing law, 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 generally divides responsibility for the state licensure and regulation of commercial cannabis activity among the Bureau of Cannabis Control in the Department of Consumer Affairs, the Department of Food and Agriculture, and the State Department of Public Health.

AB 141 of the 2021–22 Regular Session (AB 141) would, among other things, establish the Department of Cannabis Control within the Business, Consumer Services, and Housing Agency, would transfer to this department the powers, duties, purposes, functions, responsibilities, and jurisdiction of the bureau, the Department of Food and Agriculture, and the State Department of Public Health under MAUCRSA, except as specified, and would make conforming changes.

This bill would revise, as described below, certain provisions of MAUCRSA that would be amended or added by AB 141, and would become operative only if AB 141 is enacted before this bill.

MAUCRSA defines “manufacture” for purposes of the act to mean to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.

This bill would revise the definition of “manufacture” to include to package or label a cannabis product.

MAUCRSA authorizes licensing authorities to create, issue, deny, renew, discipline, suspend, or revoke licenses, and provides that this is a matter of statewide concern.

AB 141 would give the department this authority and would remove the statement that this is a matter of statewide concern.

This bill would add the statement that this is a matter of statewide concern.

MAUCRSA, until January 1, 2022, authorizes a licensing authority, in its sole discretion, to issue a provisional license if the applicant has submitted a completed license application to the licensing authority, including evidence that compliance with the California Environmental Quality Act (CEQA) or local cannabis ordinances is underway, if applicable, as specified.

AB 141 would authorize the Department of Cannabis Control to issue a provisional license until June 30, 2022, if certain conditions are met.

This bill would revise the conditions under which the department would be authorized to issue a provisional license to include compliance with certain labor peace agreement requirements and employee safety training requirements. The bill, until September 30, 2022, would also authorize the department to issue a provisional license to a cultivation license applicant if certain criteria are met. The bill, until June 30, 2023, would also authorize the department to issue a provisional license for a local equity license application that includes cultivation activities if certain criteria are met.

AB 141 would authorize the department to renew a provisional license until January 1, 2025, and would prohibit a provisional license from being effective after January 1, 2026. AB 141 would prohibit the first renewal of a provisional license on or after July 1, 2022, unless certain criteria are met, including specified evidence of progress with CEQA compliance, and would prohibit subsequent renewals unless certain criteria, as revised, are met.

This bill, beginning July 1, 2022, through June 30, 2023, would prohibit the department from renewing a provisional license unless certain criteria are met. The bill, on or after July 1, 2023, would prohibit the department from renewing a provisional license unless certain criteria, as revised, are met.

MAUCRSA requires the Department of Food and Agriculture to establish a program for cannabis, and requires the State Department of Public Health to establish a certification program for manufactured cannabis products that are comparable to the federal National Organic Program and the California Organic Food and Farming Act. Existing law makes the authority to establish these programs inoperative if the federal National Organic Program authorizes organic designation and certification for cannabis. Existing law prohibits a person from representing, selling, or offering for sale any cannabis or cannabis products as organic or with the designation or certification established by the Department of Food and Agriculture or the State Department of Public Health, except as provided.

AB 141 would authorize the Department of Food and Agriculture and the State Department of Public Health to collect fees to cover the reasonable regulatory costs of performing the duties relating to their respective programs and to levy civil penalties, and to deny, suspend, or revoke a registration or certification issued pursuant those programs, for specified violations. AB 141 provides that a licensing authority is authorized to apply, as specified, to the appropriate superior court for a judgment in the amount of the administrative penalty and an order compelling the person to comply with the order of the Department of Food and Agriculture.

Under this bill, the authority to apply to the appropriate superior court for a judgment and an order as described above would be limited to the Department of Food and Agriculture.

MAUCRSA requires the Department of Food and Agriculture, no later than January 1, 2021, to establish a process by which licensed cultivators may establish appellations of origin for cannabis produced in certain geographical areas of California, instead of by county or city.

AB 141 would authorize the Department of Food and Agriculture to collect fees to cover the reasonable regulatory costs of performing the duties relating to the appellation of origin provisions for geographical areas of the state.

This bill would delay the requirement that the Department of Food and Agriculture establish the above-described process until January 1, 2022, and would make other clarifying changes.

MAUCRSA prohibits a licensee from giving away any amount of cannabis or cannabis product as part of a business promotion or other commercial activity.

AB 141 would require the Department of Cannabis Control to adopt regulations authorizing a licensee to designate cannabis or a cannabis product as a trade sample at any time while the cannabis or cannabis product is in the possession of the licensee, and would require the regulations to include a definition of trade sample and the quantity of cannabis and cannabis products that may be designated as trade samples.

This bill would additionally require those regulations to include the amount of trade samples that may be provided to a licensee.

This bill would appropriate $10,000 from the General Fund to the Department of Cannabis Control for purposes of implementing the provisions of the bill.

AUMA authorizes the Legislature to amend its provisions with a 23 vote of both houses to further its purposes and intent.

This bill would state that the bill furthers the purposes and intent of AUMA.

This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.