The bill introduces several changes and reforms related to the regulation of marijuana businesses and their practices. Below are the key provisions:
1. Record Keeping Requirements:
The Marijuana Enforcement Division (division) will adopt rules for maintaining various types of records, such as:
Child resistance certificates
Testing records
Records of raw ingredients used in vaporizers and inhalers
Recall records
Adverse health event records
Corrective and preventive action records
Responsible vendor documentation
Standard operating procedures
Transfer records of marijuana transactions
Expiration and use-by-date testing
Patient records
Advertising records
If a license holder is using a seed-to-sale inventory tracking system, they do not need to maintain duplicate records.
If a license holder is noncompliant, the division may require additional records after an administrative action.
2. Identification Cards:
Digital identification cards are now authorized for occupational license holders.
The division is empowered to adopt rules concerning identification card requirements and criminal history checks.
3. Fingerprint and Criminal History Checks:
Fingerprint-based criminal history checks are only required for controlling beneficial owners and passive beneficial owners during initial licensure.
Name-based judicial record checks are required for license renewals.
Occupational license holders must obtain a name-based judicial record check.
The division may require fingerprint checks if there is a demonstrated need.
4. Security and Surveillance:
Changes in video recording requirements include:
Surveillance at points of ingress/egress, point of sale, areas where shipping/receiving occurs, and delivery vehicles.
The division must request video footage in writing at least 72 hours before the deadline to furnish it.
5. Digital Communication:
Notices about license expiration will be sent digitally instead of via first-class mail.
6. Promotions at Marijuana Stores:
Medical and retail marijuana stores can now host promotions where licensed marijuana producers offer promotional units. These units must:
Be tested and tracked in the seed-to-sale inventory system.
Be packaged and labeled according to rules.
Be given for free during the promotion and not exceed legal transfer limits.
7. Research and Development (R&D) Units:
R&D units can be provided to all licensed employees for product development or quality control, subject to specific conditions:
Units must be labeled properly and tracked.
Consumption on licensed premises is prohibited.
Facilities cannot sell or use R&D units for compensation.
8. Transaction Limits:
The amount of marijuana that can be sold in a single transaction at a retail store is raised from one ounce to two ounces (or its equivalent in products).
9. License Ownership and Transfer:
The bill repeals provisions making it a class 2 misdemeanor to fail to disclose beneficial ownership or transfer ownership without approval.
10. Fees for Records Requests:
The division is authorized to set a fee for requests for copies of license applications.
11. Equipment Use Requirement:
The bill removes the requirement that retail and medical marijuana products be prepared with exclusive equipment for those products.
The bill seeks to update and streamline marijuana industry regulations, including record-keeping, criminal history checks, promotions, security surveillance, and R&D practices. It also raises transaction limits and allows for more flexibility in ownership and record management for marijuana businesses.
Summary
Current law authorizes the marijuana enforcement division
(division) to adopt rules governing records required to be kept by license holders. The bill replaces this with a requirement that the division adopt rules requiring records concerning:
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Child resistance certificates;
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Testing records; •
Records demonstrating the composition of raw ingredients used in vaporizers or pressured metered dose inhalers;
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Recall records;
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Adverse health events;
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Corrective action and preventive action records;
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Documentation required to demonstrate valid responsible vendor designation;
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Standard operating procedures;
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Transfer records of regulated marijuana transactions;
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Expiration date testing and use-by-date testing;
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Patient records; and
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Advertising records.
If a license holder is required to maintain books and records in the
seed-to-sale inventory tracking system, the license holder need not maintain duplicate copies of the books and records. If a license holder is substantially noncompliant with regulatory requirements, the division may require the license holder to maintain additional records. The division must bring an administrative action to require a license holder to maintain additional records.
Current law requires occupational license holders to be issued an
identification card. The bill authorizes digital identification cards and replaces this requirement with authorization for the division to adopt rules governing identification card requirements, including criminal history record checks.
Current law requires applicants for licensure or renewal to submit
fingerprints for a criminal history record check. The bill changes this requirement to require that only controlling beneficial owners and passive beneficial owners must get a fingerprint-based criminal history record check, and the fingerprint-based check is only required for initial licensure; name-based judicial record checks are required for license renewal. Occupational license holders are required to obtain a name-based judicial record check. The division may require an applicant or licensee to obtain a fingerprint-based criminal history record check when there is a demonstrated investigative need. Occupational license applicants are authorized to work while the application is pending.
Current law requires the division to adopt rules for security
requirements for license holders. The security requirements include video recording requirements. The video recording requirements are changed to require, and must not exceed, video surveillance of the following:
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Each point of ingress and egress to the exterior of the licensed premises;
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Points of sale with coverage of the customer or patient and license holder completing the sale;
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Areas of the licensed premises where shipping and receiving of regulated marijuana occurs, test batches are collected, and regulated marijuana waste is destroyed; and
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Delivery vehicles surveillance.
To obtain video surveillance footage, the division must demand the video surveillance footage in writing within at least 72 hours before the deadline provided to furnish the footage.
Current law requires the division to notify license holders by
first-class mail of the license expiration date at least 90 days before the expiration. The bill replaces first-class mail with digital communication.
The bill authorizes medical marijuana stores and retail marijuana
stores to host promotions where licensed marijuana producers can offer patient or customer promotional units (promotional unit). To provide a promotional unit, the promotional unit must be:
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Tested in accordance with the rules of the division;
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Tracked with the seed-to-sale inventory tracking system;
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Transferred to the store before the promotion;
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Packaged in accordance with the rules; and
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Labeled in accordance with the rules.
In addition, the store must:
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Provide the promotional unit during a promotion;
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Verify that the patient or customer is qualified to receive the promotional unit;
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Not charge a patient or customer for a promotional unit;
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Ensure the total amount of promotional units and purchased medical marijuana that are transferred to a patient or customer do not exceed the legal transfer limits.
Current law authorizes marijuana cultivation facilities and
marijuana products manufacturers to provide research and development units (R-and-D units) to managers and sets standards for the practice. The bill reforms these standards as follows:
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R-and-D units may be provided to all licensed employees, and the R-and-D unit must be: •
Labeled with the universal symbol indicating that the package contains marijuana, the license number of the facility that produced the R-and-D unit, the batch number, and any required warning statements;
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Labeled to indicate that the R-and-D unit must not be sold or resold;
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Tested in accordance with the rules;
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Packaged in a child-resistant container;
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Tracked with the seed-to-sale inventory tracking system; and
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Provided for product development or quality control purposes; and
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The facility or manufacturer may not: •
Allow an R-and-D unit to be consumed on the licensed premises;
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Use an R-and-D unit as a means of compensation;
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Provide R-and-D units in a manner that would violate the law or to an employee who is not qualified;
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Require an employee to accept or consume an R-and-D unit; or
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Receive compensation for an R-and-D unit.
The amount of marijuana that may be sold in a single transaction
at a retail marijuana store is raised from one ounce to 2 ounces or its equivalent in retail marijuana products.
Current law makes it a class 2 misdemeanor for a person to: •
Have a controlling beneficial ownership, passive beneficial ownership, or indirect financial interest in a license that was not disclosed; and
•
Engage in transfer of ownership without prior approval.
The bill repeals these provisions.
The bill authorizes the division to set and collect a fee to fulfill
requests for copies of a license application. The bill repeals a requirement that retail and medical marijuana products be prepared with equipment that is used exclusively for those products.
