(1) Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure, authorizes a person who obtains a state license under AUMA and any applicable local ordinances to engage in commercial adult-use cannabis activity pursuant to that license, if conducted as prescribed. 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, and requires the Department of Cannabis Control to administer its provisions.

Existing law prohibits cannabis or cannabis products from being sold by a licensee unless specified quality assurance standards and testing standards are met. Existing law requires representative samples of the cannabis or cannabis products in their final form to be tested by a licensed testing laboratory, and requires the department to develop criteria to determine which batches are tested. Existing law authorizes the testing laboratory to retest a sample if the testing laboratory notifies the department, in writing, that the test was compromised due to equipment malfunction, staff error, or another circumstance authorized by the department, and the department authorizes the retest of that sample. Existing law requires the testing laboratory to issue a certificate of analysis that the cannabis batch has passed the testing requirements, and authorizes the testing laboratory to amend the certificate of analysis to correct minor errors, as specified.

This bill would specify that all cannabis or cannabis products are subject to test or retest, and would revise the retest requirements to instead authorize a testing laboratory to retest a sample of cannabis or cannabis products if either the testing laboratory notifies the department, in writing, that the test was compromised due to equipment malfunction, staff error, or other circumstances allowed by regulation, if the department requires the retest, or if the department authorizes the request.

This bill would require the licensee to allow the department to obtain or access any cannabis or cannabis products held or offered for retail sale for the purposes of conducting off-the-shelf laboratory testing. The bill would also require a retailer and any other licensee authorized to engage in the retail sale of cannabis or cannabis products to provide the certificate of analysis associated with any cannabis or cannabis product held or offered for retail sale to a customer upon request.

This bill would also require a testing laboratory to be subject to performance testing, as specified, to ensure consistency of results across laboratories.

(2) Existing law, upon the issuance of a certificate of analysis by the testing laboratory, requires a distributor to conduct a quality assurance review before distribution of cannabis or cannabis products to ensure the labeling and packaging conform to the requirements of MAUCRSA. Existing law also requires a quality assurance compliance monitor, who is an employee or contractor of the department, to conduct random quality assurance reviews at a distributor’s licensed premises before distribution to ensure the labeling and packaging of the cannabis and cannabis products conform to the requirements of MAUCRSA.

This bill would repeal the requirement that a quality assurance compliance monitor conduct random quality assurance reviews, and instead would require the department to conduct those reviews. The bill would expand those reviews to include a microbusiness or retailer’s licensed premises, and would require the department to additionally ensure the testing of the cannabis and cannabis products conform to the requirements of MAUCRSA.

(3) Existing law authorizes a testing laboratory to receive and test samples of cannabis or cannabis products from state or local law enforcement, or a prosecuting or regulatory agency, as specified, and provides that the testing of that cannabis is not commercial cannabis activity for purposes of MAUCRSA and is not arranged or overseen by the department.

This bill would require a licensed testing laboratory to comply with the department’s request to evaluate the laboratory’s testing practice.

(4) Existing law, if the department finds or has probable cause to believe that cannabis or a cannabis product is adulterated or misbranded, or sold in violation of MAUCRSA, requires the department to affix a tag or other appropriate marking to the cannabis or cannabis product, and to give notice that the cannabis or cannabis product is in violation of MAUCRSA and has been embargoed. Existing law makes it unlawful to remove, sell, or dispose of embargoed cannabis or an embargoed cannabis product without written permission of the department or a court, and subjects each violation to a fine.

This bill would remove the requirement that the department affix a tag or other appropriate marking to the cannabis or cannabis product, and instead would require the notice to reasonably identify the cannabis or cannabis product subject to the embargo. The bill would also require the licensee, within one business day of receiving a notice of the embargo, to physically separate all embargoed cannabis and cannabis products from all other inventory, as specified.