On September 29, 2016, Californias Governor Jerry Brown signed into law AB 2679, which provides long-awaited and much needed guidance for cannabis manufacturers currently operating in California. The bill was authored by the same legislators who drafted the Medical Cannabis Regulation and Safety Act (MCRSA).
Though all cannabis businesses are subject to some risk under federal laws, manufacturing in California has been an even riskier business due to the dangers associated with extracting cannabis using volatile solvents and a state law that makes it illegal to manufacture a controlled substance, such as marijuana, by chemical extraction. Before last week, California cannabis manufacturers had little guidance on how to operate in compliance with current laws. However, under new provisions in AB 2679, collectives and cooperatives that manufacture medical cannabis products are now exempted from criminal sanctions under current state law if they meet specific requirements.
First, the marijuana manufacturer must only use manufacturing processes that: (i) are either solventless or that employ only nonflammable, nontoxic solvents that are recognized as safe under the federal Food, Drug, and Cosmetic Act, and/or (ii) use solvents recognized as safe under the Food, Drug, and Cosmetic Act, exclusively within a closed-loop system designed to prevent off-gassing of solvents to reduce the risk of ignition and explosion and certified by a licensed engineer through a signed and stamped certification document.
Second, the cannabis manufacturer must have approval from the local fire official for its facility, operation, equipment and closed-loop system.
Third, the cannabis manufacturer must meet required fire, safety, and building code requirements under listed state, federal, or international standards.
Fourth, the marijuana manufacturer must hold a valid marijuana sellers permit from the California Board of Equalization.
Finally, the marijuana manufacturer must hold a valid local license, permit, or other form of authorization for the manufacture of medical cannabis from a city or county and be in compliance with all local cannabis manufacturing laws.
Just as with current laws governing medical marijuana collectives and cooperatives in California, these new cannabis manufacturing provisions will be repealed one year after the Bureau of Medical Cannabis posts a notice on its website that state cannabis licenses have been issued. At that point, the California Department of Public Health will be in charge of issuing licenses to cannabis manufacturers under the MCRSA. The authority of the Department ...
