11 July 2016

Law firm Greenspoon Marder write…….

On June 27, the California Legislature passed SB 837 amending the Medical Marijuana Regulation and Safety Act (MMRSA). Effective immediately, the legislation includes some significant changes for California’s newly-regulated, medical cannabis industry.

Some of the most significant changes include:

·       The name of the Medical Marijuana Regulation and Safety Act is changed to the “Medical Cannabis Regulation and Safety Act.” The Bureau of Medical Marijuana Regulation is now changed to the “Bureau of Medical Cannabis Regulation.”

·       The Department of Public Health (DPH) may issue a citation which may contain an order of abatement and an order to pay administrative fines to any licensee in violation of this chapter or regulation. In no event shall the fine exceed $5,000.

·       It is now unlawful for any person to manufacture, sell, deliver, hold or offer for sale a medical cannabis product that is misbranded or adulterated. If DPH has probable cause to believe that a product is misbranded or adulterated, they shall affix “a tag or other appropriate marking to the product.”

·       The Type 10A “Special dispensary status” license is now named “Producing dispensary.” The Type 10A license allows up to three retail sites, but now each dispensary must be individually licensed.

·       All Cultivators and Manufacturers may now hold a Type 12 Transporter license. Cultivators are not required to send medical cannabis to a Distributor (Type 11 license) if the medical cannabis is to be used, sold, or otherwise distributed by a manufacturer for further manufacturing.