Interstate Cannabis AgreementsAgreements
Section § 26301
This law allows the Governor of California to make agreements with other states to permit the sale and transport of medicinal or adult-use cannabis between licensed businesses. These agreements are only possible if the activities are legal in the other state and both states regulate the transport properly. Transporting cannabis through states where it's illegal is prohibited. Additionally, these agreements are not considered projects under California's environmental review laws, so they are not subject to those requirements.
Section § 26302
This California law allows foreign entities with cannabis licenses to conduct business with California cannabis licensees. However, these foreign licensees can't operate within California or its local areas without first obtaining the appropriate state and local permits. Additionally, foreign licensees are subject to California's rules and penalties if they break any cannabis-related laws here.
Section § 26303
This law requires that any state entering into an agreement to sell cannabis products in California must ensure their foreign licensees adhere to California's strict cannabis standards. This includes maintaining public health and safety standards, participating in a state-run tracking system for cannabis products, and meeting quality assurance requirements. The foreign licensees must also follow California's rules on testing, packaging, labeling, marketing, and advertising of cannabis products. Additionally, there must be procedures to identify and destroy misbranded or adulterated cannabis products. The contracting state must impose advertising and sales restrictions that are at least as strict as those in California.
Section § 26304
This section explains how agreements between California and other states should handle public health emergencies and regulatory compliance related to cannabis. It requires mechanisms for dealing with emergencies like contaminated cannabis, and it outlines mutual cooperation for investigating compliance issues. Both California and the other state are obligated to assist each other in investigating license holders to ensure they follow cannabis regulations.
Section § 26305
This law requires any agreement to have clauses that encourage involving and supporting people and communities that were harmed the most by past cannabis laws.
Section § 26306
This law requires that any agreement must include terms for collecting all relevant taxes.
Section § 26307
This law allows the Governor to bypass normal rulemaking processes when making agreements but sets out specific requirements to maintain transparency and oversight. Before finalizing any agreement, the Governor must present it to a legislative budget committee, which has 60 days to review and suggest changes. If the Governor chooses not to follow any of those suggestions, they must explain why. Additionally, the proposed agreement must be made available online for 30 days to allow for public comment, which the Governor should take into account.
Section § 26308
This law section states that an agreement related to cannabis commerce in this chapter won't take effect unless certain conditions are met. These include changes to federal law that either allow or do not impede interstate cannabis transfers, or if a legal opinion or memorandum is issued that suggests tolerance for such transfers. Additionally, a legal opinion from the Attorney General confirming that cross-state cannabis activity won't pose major legal risks to California must be given. If any of these conditions happen, the department must notify the Governor and relevant legislative committees and post this information online.