SECTION 3: Cannabis Control and Regulation
Division 10 (commencing with Section 26000) is added to the Business and Professions Code, to read:
CHAPTER 1. Cannabis Control and Regulation
Article 1. General Provisions and Definitions
26000. Definitions. For purposes of this Act, the following terms, phrases, words, and their derivations shall have the meaning given in this Article. Words not defined in this Article, unless defined elsewhere in this Act, shall have their plain and ordinary meaning.
(a) “Applicant” means an individual person, or responsible party representing a partnership, corporation, or limited liability company, seeking a cannabis license under this Act.
(b) “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from marijuana. “Cannabis” also means marijuana as defined by Section 11018 of the Health and Safety Code as enacted by Chapter 1407 of the Statutes of 1972. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this chapter, “cannabis” does not mean “industrial hemp” as defined by Section 81000 of the Food and Agricultural Code or Section 11018.5 of the Health and Safety Code.
(c) “Cannabis license” means a license granted under Article 6.
(d) “Cannabis products” means manufactured products containing cannabis that are intended for use or consumption, including but not limited to compounds, mixtures, derivatives, extracts, or concentrated extracts. This definition shall not include industrial hemp as defined under Health and Safety Section 11018.5.
(e) “Concentrated extracts” means the separate resin, whether crude or purified, obtained from cannabis.
(f) “Distribute” or “distribution” means the procurement, sale, and transport of cannabis and cannabis products between licensed persons or entities.
(g) “Homegrown” or “homemade” cannabis means cannabis grown or cannabis products made, out of public view, and secure from public access, by a person 21 years of age or older for noncommercial purposes at his or her primary place of residence or lawful collective cultivation site or garden, without the use of flammable or volatile solvents.
(h) “Manufacture” or “manufacturing” means the preparation, compounding, blending, grinding, and extracting of cannabis and cannabis products, including but not limited to extracts, compounds, concentrated extracts, topicals, and edibles. “Manufacture” or “manufacturing” shall also refer to the labeling and packaging of cannabis products.
(i) “One ounce of cannabis” means 28.5 grams of cannabis as measured by dry weight, or where not dry, the reasonable equivalent of 28.5 grams of dry cannabis.
(j) “One ounce equivalent of cannabis products” means the weight or quantity of cannabis products that contain one ounce of cannabis or extracts of one ounce of cannabis.
(k) “Process” or “processing” means the harvesting, trimming, drying, or curing of cannabis in preparation for manufacture, packaging, or sale.
26001. (a) The following statutes are hereby repealed from the Health and Safety Code: Section 11357, Section 11358, Section 11359, Section 11360, Section 11361, and Section 11485. Section 23222(b) of the California Vehicle Code is hereby repealed.
(b) No person shall be prosecuted for possession or use of a controlled substance pursuant to subsection (d)(13) of Section 11054 of the Health and Safety Code. Subsection (d)(13) of Section 11054 of the Health and Safety Code shall remain in effect only until January 1, 2018, and as of that date is repealed. In repealing subsection (d)(13) of Section 11054 of the Health and Safety Code, and unless expressly provided in this Act, it is the intent of the People of the State of California to encourage the Legislature to include cannabis in existing laws protecting children, families, and the general public from the continual or habitual abuse of alcohol or controlled substances.
Article 2. Unlawful Acts
26002. (a) Except as otherwise provided by law, the following activities shall be an infraction, punishable by a fine of one hundred dollars ($100):
(1) For a person under the age of 21 to possess, process, share, or transport not more than one ounce of cannabis or one ounce equivalent of cannabis products.
(2) For a person under the age of 21, but 18 years of age or older to share not more than one ounce of cannabis or one ounce equivalent of cannabis products with a person under the age of 21, but 18 years of
age or older.
(b) Except as otherwise provided by law, the following activities shall be an infraction punishable by a fine of not more than five hundred dollars ($500):
(1) For a person 21 years of age or older to share or give away without compensation not more than one ounce of cannabis or one ounce equivalent of cannabis products to a person under the age of 21, but 18
years of age or older.
(2) For a person under the age of 21, but 18 years of age or older to sell not more than one ounce of cannabis or one ounce equivalent of cannabis products to a person 18 years of age or older.
(3) For any person under the age of 21 to possess, process, share, or transport more than one ounce of cannabis or one ounce equivalent of cannabis products, but not more than sixteen ounces of cannabis or
sixteen ounces equivalent of cannabis products.
(4) For a person to unlawfully possess, process, share, or transport more than one ounce of cannabis or cannabis products.
(5) For a person to unlawfully possess, process, share, or transport more than one ounce of homegrown cannabis with intent to sell or export out of state, or the possession of more than one ounce of homegrown cannabis outside of the person’s home. This provision shall not apply to the lawful possession and transportation of homegrown cannabis as otherwise provided in Section 26011(c).
(6) For a person to smoke or consume cannabis or cannabis products on or in a public street, school, playground, public transit vehicle, or any public property unless otherwise permitted.
(7) For a person to smoke or consume cannabis or cannabis products on any property where such activity is prohibited by the property owner, resident, operator, manager, or business owner.
(8) For a person to drive a motor vehicle in which cannabis is smoked or consumed by passengers in the driver compartment while operating on public roads.
(9) For a person to cultivate homegrown cannabis in public view or in a location not secure from public access.
26003. Except as authorized by law, the following activities shall be treated as a misdemeanor, punishable by imprisonment in a county jail for a period of not more than six (6) months or by a fine of not more than one thousand dollars ($1,000), or by both such fine and imprisonment, or as an infraction, punishable by a fine of not more than five hundred dollars ($500):
(a) For any person to unlawfully possess, process, share, or transport more than sixteen ounces of cannabis, or cannabis products.
(b) For any person to unlawfully possess, process, share, or transport more than sixteen ounces of homegrown cannabis with intent to sell or export out of state, or the possession of more than sixteen ounces of homegrown cannabis outside of the person’s home. This provision shall not apply to the lawful possession and transportation of homegrown cannabis as otherwise provided in Section 26011(c).
(c) For any person to unlawfully sell less than sixteen ounces of cannabis or cannabis products, or to transport, or possess with intent to sell, over one ounce but not more than sixteen ounces of cannabis or sixteen ounces equivalent of cannabis products.
(d) Unlawful cultivation of cannabis. Unlawful cultivation occurs when:
(1) Any amount of cannabis is cultivated by a person under the age of 21.
(2) Cannabis is cultivated beyond the personal use amounts delineated in Section 26011 without a license to do so.
(3) Cannabis is cultivated on public or private lands without the consent of the property owner.
26004. Except as authorized by law, the following activities by any person under the age of 18 shall be a misdemeanor and shall be subject to a fine of not more than two hundred fifty dollars ($250), upon a finding that a first offense has been committed, or a fine of not more than five hundred dollars ($500), or commitment to a juvenile hall, ranch, camp, forestry camp, or secure juvenile home for a period of not more than ten (10) days, or both, upon a finding that a second or subsequent offense has been committed:
(a) To possess cannabis or cannabis products upon the grounds of, or within, any school providing instruction in kindergarten or any of grades 1 through 12 during hours the school is open for classes or school-related programs.
(b) To sell, transport, cultivate or possess with the intent to sell cannabis or cannabis products.
26005. Except as authorized by law, the following activities shall be treated as a misdemeanor, punishable by imprisonment in a county jail for a period of not more than six months or by a fine of not more than one thousand dollars ($1,000), or by both such fine and imprisonment:
(a) For a person, to unlawfully sell, or to possess, process, or transport with an intent to sell, more than sixteen ounces of cannabis or sixteen equivalent ounces of cannabis products.
(b) For a person 18 years of age or over to possess cannabis or cannabis products upon the grounds of, or within, any school providing instruction in kindergarten or any of grades 1 through 12 during hours the school is open for classes or school-related programs.
(c) For a person to smoke or consume cannabis or cannabis products while operating a motor vehicle, boat, or aircraft.
26006. Except as otherwise provided by law, the following activities may be punished as a felony or misdemeanor:
(a) The unlawful furnishing or sale of cannabis or cannabis products to a person under the age of 18 years old.
(b) The unlawful diversion, exportation, delivery, or distribution of cannabis or cannabis products to other states.
(c) The unlawful cultivation, manufacturing, or distribution of cannabis or cannabis products on federal lands or protected park or wilderness lands.
(d) The cultivation, transportation, distribution, or sale of cannabis or cannabis products as a cover or pretext for the trafficking of illegal drugs or other illegal activity.
(e) The use of violence, coercion, illegal weapons, or duress in the cultivation or distribution of cannabis or cannabis products.
(f) Except as authorized by law, the hiring, employment, or use of individuals under the age of 21 to cultivate, manufacture, purchase, distribute, sell, or transport cannabis or cannabis products.
(g) The unlawful commercial cultivation, manufacturing, distribution, sale, transportation, or possession with intent to sell, of cannabis or cannabis products with a market value of more than ten thousand dollars ($10,000).
(h) The unlawful manufacture of cannabis products using explosive volatile solvents.
26007. Driving while under the influence of cannabis shall be punished by Vehicle Code Sections 23103, 23152, and 23153. A person shall be deemed to be under the influence of cannabis if, as a result of consuming cannabis, his or her mental or physical abilities are so impaired that he or she is no longer able to drive a vehicle or operate a vessel with the caution of a sober person, using ordinary care, under similar circumstances. This standard shall be the sole standard used in determining driving under the influence allegations.
26008. In addition to other penalties provided by law, a fine of up to fifty dollars ($50) per ounce of unlawful cannabis or cannabis products, and up to ten dollars ($10) per square foot of unlawful canopy area cultivated, or a fine of up to two thousand dollars ($2,000) per day may be imposed upon conviction for each violation of Sections 26003, 26005, and 26006. These monetary penalties shall be paid to the Cannabis Safety Fund provided in Article 5 of this Act. An action to recover monetary penalties as permitted by this section must be commenced within two (2) years after the violation occurred or the date of reasonable discovery if the occurrence could not reasonably have been discovered upon its occurrence.
26009. (a) Except as stated within this Act, this Act shall not be construed or interpreted to amend or affect:
(1) The ability of public and private employers to maintain, enact, and enforce workplace policies prohibiting or restricting actions or conduct otherwise permitted under this Act in the workplace.
(2) The ability of a locality to regulate public nuisances as defined in Section 3480 of the Civil Code.
(3) The ability of a state or local government agency to prohibit or restrict actions or conduct otherwise permitted under this Act within a building owned, leased, or occupied by the state or local government
agency.
(4) The ability of an individual or private entity to prohibit or restrict actions or conduct otherwise permitted under this Act on the individual’s or entity’s privately owned, managed, controlled, or rented
property.
(5) Laws pertaining to actions or conduct otherwise permitted under this Act on the grounds of, or within, any facility or institution under the jurisdiction of the Department of Corrections and Rehabilitation or on the grounds of, or within, any other facility or institution referenced in Section 4573 of the Penal Code.
(6) The ability of the State to prosecute against the violation of statutes related to the protection of the environment.
(7) Current laws regarding the rights of a property owner or landlord to regulate or prohibit smoking of any type in the interior or on the grounds of a rented property.
(b) Except as specifically provided otherwise, this Act shall not infringe upon the protections granted under the Compassionate Use Act of 1996 (codified in Section 11362.5, Article 2 of Chapter 6 of Division 10 of the Health and Safety Code) or to qualified patients and primary caregivers as defined in Health and Safety Code Section 11362.7. Patients with valid physician recommendations, prescriptions, or proof of authorization to use medical cannabis from the state in which he or she resides shall be deemed to be qualified patients.
(c) Except as specifically provided otherwise, this Act shall not alter the provisions of existing laws governing the control, use, and regulation of medical cannabis and medical cannabis products.
26010. Schools, employers, and landlords may not discriminate against or penalize a person solely for their status as a qualified patient or primary caregiver as defined under Health and Safety Code Section 11362.7, unless failing to do so would put the school, employer, or landlord in violation of federal law or cause it to lose a federal contract or funding. It is the intent of the People in enacting this Act that, to the extent feasible, schools, child protective services, employers, and landlords shall treat qualified patients or primary caregivers in a manner reasonably equivalent to patients or caregivers using or dispensing other legal medications.
Article 3. Lawful Activities
26011. Lawful acts. Except as otherwise provided in this Act, the following activities shall be deemed lawful and shall not be a crime, public offense, cause for property seizure, cause for action by the Department of Motor Vehicles, or cause for incarceration or civil sanctions under California or local law for each person 21 years of age or older:
(a) To personally possess, process, share, or transport not more than one ounce of cannabis or cannabis products, solely for personal use, and not for sale.
(b) To consume cannabis or cannabis products that are obtained and possessed in compliance with this Act when such consumption occurs at a private residence or such other location as permitted under this Act. Nothing in this section shall alter current law regarding the rights of a property owner or landlord to regulate or prohibit smoking on their property.
(c) To cultivate homegrown cannabis in an area not to exceed one hundred (100) square feet; to possess the living and harvested plants and results of any lawfully harvested homegrown cannabis pursuant to this Article; and to transport homegrown cannabis between a lawful cultivation site and the cultivator’s residence.
26012. (a) No person shall be prosecuted for child endangerment pursuant to Section 273(a) of the Penal Code, or any similar or successor statutes, for an action taken that is in compliance with the provisions of this Act, unless it is determined that there exists an immediate and actual threat to the health and welfare of a child.
(b) Notwithstanding any other provision of law, an action taken that is in compliance with the provisions of this Act, by itself, shall not be sufficient evidence of parental unfitness, or child abuse, or otherwise be used to restrict or abridge custodial or parental rights to minor children, and shall not be the basis of a criminal act nor the basis to diminish parental rights or remove a child from his or her home, unless it is determined that there exists an immediate and actual threat to the health and welfare of a child.
Article 4. California Cannabis Commission and Office of Cannabis Regulation
26013. (a) There is hereby established in state government, within the California Department of Consumer Affairs, the Office of Cannabis Regulation.
(b) The office shall be administered by the California Cannabis Commission. The commission shall consist of seven public members and six ex officio members, appointed as follows:
(1) Three public members appointed by the Governor. One appointee shall have substantial experience in public health and medical cannabis, one shall represent local government, and one shall represent law enforcement. At least one of the Governor’s appointees shall also have substantial expertise with the public policy issues associated with cannabis.
(2) Two public members appointed by the Senate Committee on Rules. One appointee shall have substantial expertise with environmental issues, and one appointee shall have substantial expertise providing cannabis to medical cannabis patients.
(3) Two public members appointed by the Speaker of the Assembly. One appointee shall have substantial expertise in the cannabis industry, and one appointee shall be from organized labor.
(4) The Lieutenant Governor of California, or his or her designee, as an ex officio member.
(5) The Attorney General, or her or his representative, as an ex officio member.
(6) A member of the Board of Equalization, or authorized representative, as an ex officio member appointed by a vote of the Board of Equalization.
(7) The Secretary of the California Department of Food and Agriculture, or her or his designee, as an ex officio member.
(8) The Secretary of the Department of Consumer Affairs, or her or his designee, as an ex officio member.
(9) The Secretary of the Environmental Protection Agency, or her or his designee, as an ex officio member.
(c) Public members serve four-year terms beginning on January 1 and ending on December 31 or as soon thereafter as their successors are qualified. With respect to the initial appointees, the Governor shall appoint one member for a five-year term and two members for a three-year term. The Senate Committee on Rules and the Speaker of the Assembly shall each initially appoint one member for a two-year term and one member for a four-year term. Public members may be reappointed for an additional two terms.
(d) The appointing authority of a member of the commission may remove the member and make an appointment replacing the member for the duration of the term if the member ceases to discharge the duties of his or her office for the period of three consecutive commission meetings. Vacancies shall be filled by the appointing authority for the unexpired portion of the terms.
(e) Public members of the commission shall receive one hundred dollars ($100) per diem while on official business of the commission. Each member of the commission shall also be entitled to receive his or her actual necessary traveling expenses while on official business of the commission.
(f) Until January 1, 2019, the commission chair shall be the Lieutenant Governor of California, or his or her designee. The commission may thereafter select annually from its membership a chairperson and a vice
chairperson.
(g) Appointments under this section shall be completed no later than April 1, 2017.
26014. (a) The commission shall appoint an executive director of the office, who shall be exempt from civil service and who shall serve at the pleasure of the commission. The executive director shall manage and
conduct the business and affairs of the office under the general direction and subject to the approval of the commission, and shall perform other duties as the commission prescribes.
(b) The commission may appoint up to five additional individuals for the key executive positions within the office, exempt from civil service, who shall serve at the pleasure of the commission.
(c) The commission shall set the salary for each appointment made pursuant to this section. These positions shall not be subject to otherwise applicable provisions of the Government Code and the Public Contract Code, and for those purposes, the commission shall not be considered a state agency or other public entity.
(d) Upon request of the commission, the Attorney General shall provide legal advice and representation to the commission.
26015. The commission shall have the powers and authority necessary to carry out the duties imposed upon it by this chapter, including but not limited to the following:
(a) To employ, consistent with applicable civil service laws, any administrative, technical, legal, or other personnel that may be necessary for the performance of its powers and duties; to appoint advisers or advisory committees from time to time when the commission determines that the experience or expertise of those advisers or advisory committees is needed for projects of the commission; to contract for any services which cannot be performed satisfactorily by its employees; and to contract for legal counsel. Any such contract shall not be subject to otherwise applicable provisions of the Government Code and the Public Contract Code, and for those purposes, the commission shall not be considered a state agency or other public entity.
(b) To sue or be sued; to hold hearings, make and sign any agreement, and do or perform any act, including the collection of relevant information, that may be necessary, desirable, or proper to carry out the purposes of this Act; to accept any gift, donation, grant, or bequest for any purpose of this Act; and to cooperate with, and secure the cooperation of, any department, division, board, bureau, commission, or other agency of the State to facilitate the proper execution of the commission’s powers and duties under this division.
26016. The principal office of the commission shall be in Sacramento. The commission shall be subject to the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of
Division 3 of Title 2 of the Government Code).
26017. The commission may adopt, amend, and rescind rules and regulations to carry out the purposes and provisions of this division, and to govern procedures of the commission. These rules and regulations shall be adopted in accordance with the Administrative Procedure Act (Government Code, Title 2, Division 3, Part 1, Chapter 4.5, Sections 11371 et seq.) and shall be consistent with this division and other applicable law.
Article 5. Cannabis Safety Fund
26018. The Cannabis Safety Fund is hereby created as a special fund in the State Treasury. All monies collected by the office or by the Board of Equalization pursuant to this Act, including but not limited to taxes, fees, interest, and penalties, shall be deposited in the Cannabis Safety Fund.
26019. The commission shall, in cooperation with the Department of Finance, allocate such funds from the Cannabis Safety Fund as are necessary to implement, administer, and enforce this Act to any state agency
identified by the commission to further the purposes of this Act.
26020. The commission shall provide funding for evidence-based studies that address: (a) the development of valid impairment standards for use by law enforcement personnel; (b) effective methods for implementing education campaigns designed to prevent and discourage the abuse of cannabis, particularly by persons under 21 years old; (c) effective methods for implementing education campaigns designed to develop the safe, controlled, and environmentally sustainable cultivation of cannabis; and (d) other research that furthers the purposes of this Act.
26021. (a) On at least an annual basis, the commission shall determine the funding reasonably necessary for the office’s operations for the forthcoming year. The commission shall also identify the amount of monies in the Cannabis Safety Fund that are projected to be in excess of the office’s operating requirements. After paying back the start-up loan of thirty million dollars ($30,000,000) to the General Fund provided for in Section 26023, the commission shall apportion all excess funds generated by this Act to ensure that community-based nonprofit organizations receive a portion of these funds, in grants, to advance community restoration programs, health services, and environmental mitigation, according to the following:
(1) Not less than fifty percent (50%) and no more than sixty percent (60%) of all other excess funds generated, if any, shall be set aside for the following, with a priority to disadvantaged communities: (i) for preschool reimbursement vouchers for children between the ages of three (3) and five (5) years old, and to provide funding for expanded infant and toddler care with a priority for California families at or below one hundred thirty percent (130%) of the federal poverty level (FPL); (ii) for youth counseling and health care services for pre-K and K-12, allocated based on annual enrollment; (iii) for harm reduction-based drug education, and rehabilitation programs; and (iv) for programs related to gang diversion, youth programs and services.
(2) Not less than two percent (2%) and no more than twenty percent (20%) of all other excess funds generated, if any, to each of the following: (i) to evaluate the impact of this Act, not less than once every two years; to develop future policy for its implementation, including standards for testing, labeling, and recommending cannabis and cannabis products; and to research the health and medicinal effects of cannabis and cannabis products by the University of California’s Center for Medicinal Cannabis Research; (ii) to sponsor performance-based assessments to identify, reduce, and prevent driving under the influence and other adverse public health consequences; to educate consumers on safe and responsible use; and to assess and develop methods for minimizing adverse environmental impacts from cultivation; and (iii) for substance abuse and mental health services, including services for incarcerated and formerly incarcerated individuals and their families; for senior programs and services; and for disease care and prevention, such as programs for screening, care, prevention, and treatment for HIV/AIDS, viral hepatitis, sexually transmitted diseases, and for the Maddy Emergency Medical Services (EMS) Fund.
(b) Subject to the limitations specified in this section, the commission may appropriate excess funds generated by the Act for any other purpose or program it deems necessary to carry out the intents and purposes of this Act. 26022. (a) An Environmental Restoration and Protection Account is hereby created as a special account in the Cannabis Safety Fund. All monies collected by the Board of Equalization for the Environmental Restoration and Protection Account as provided in Revenue and Tax Code Section 31003(a) shall be deposited into this account.
(b) The funds in the Environmental Restoration and Protection Account shall be allocated by the commission for (i) cleanup, remediation, and restoration of environmental damage caused by cannabis cultivation and related activities, including, but not limited to damage that occurred prior to enactment of this Act; (ii) natural resource protection, including acquisition of lands, interests in land, and conservation easements to offset the adverse environmental impacts of cannabis cultivation; and (iii) stewardship, operations, maintenance, and restoration of state-owned wildlife habitat and units of the state park system.
(c) The State Water Resources Control Board, the Department of Fish and Wildlife, the Wildlife Conservation Board, and the Department of Parks and Recreation may distribute a portion of the funds they receive from the commission through grants to local public agencies and nonprofit organizations, provided such funds are used for the purposes specified in this subdivision.
(d) Funds allocated pursuant to this section shall not replace other funding used to increase the protection, management, and restoration of park, wildlife, water, and other natural resources.
26023. (a) It is the intent of the People of the State of California to provide a start-up loan of thirty million dollars ($30,000,000) from the General Fund, to be repaid with tax revenues generated under this Act, to facilitate the initial implementation of this Act.
(b) There is hereby appropriated thirty million dollars ($30,000,000) from the General Fund to the Cannabis Safety Fund as a temporary loan to the office for the start-up costs of regulation, tax collection and administration, public education, public health, enforcement, drug abuse prevention, environmental protection, and outreach concerning this Act.
(c) For purposes of repaying the loan, the Controller shall transfer all excess funding identified in Section 26021 above up to the amount of the loan provided by this section, including interest at the pooled money investment account rate, to the General Fund until the loan is repaid. The loan shall be repaid no later than June 1, 2020.
Article 6. Licensing and Registration
26024. (a) Notwithstanding other provisions of law, all legal California residents age 21 or older, having lawfully resided in the state full time for two years, or less if prescribed by the office, shall have the right to apply for a cannabis license. Prima facie evidence of legal residency shall be the same as provided in Vehicle Code Section 12505(a).
(b) Partnerships, corporations, and limited liability companies operating for profit or not for profit as defined under the Corporations Code shall have the right to apply for a cannabis license, provided such entities designate a responsible party of record who is eligible for a license under this Act. To qualify for a license, even after licensure, all licensed business entities must submit an annual disclosure statement to the office that
(1) identifies any person with at least a ten percent (10%) direct or indirect ownership in the licensed entity,
(2) identifies any affiliated person owning ten percent (10%) or more of stock in the aggregate in the licensed entity, or
(3) states that there is no such person. For purposes of this article, the term “person” shall have the same meaning as defined in Civil Code Section 3426.1(c). The office shall:
(1) Establish the standards to confirm whether an individual qualifies as a responsible party of record.
(2) Promulgate regulations governing the replacement of a responsible party of record upon removal, incapacity, violation of Section 26025, or death.
(3) Establish protocols to track the individuals or businesses holding a direct or indirect ownership interest in a partnership, corporation, or limited liability company holding a cannabis license to ensure that the owners remain identified and in compliance with Section 26025 of this Act.
26025. (a) No licensee, responsible party, or person holding at least a ten percent (10%) direct or indirect interest in a licensed partnership, corporation, or limited liability company may be convicted of a violent felony as specified in Penal Code 1192.7(c), a felony involving fraud or deceit, or any felony that in the office’s determination would impair the applicant’s ability to appropriately operate as a state licensee.
(b) Subject to the discretion of the commission, the commission may issue licenses to an applicant seeking a license under this Act, or existing laws governing medical cannabis and cannabis products, who would otherwise be ineligible for a license pursuant to this section, if that applicant has obtained a certificate of rehabilitation pursuant to Penal Code 4852.13 or expungement pursuant to the Penal Code.
(c) Three years from the date of the conviction, persons convicted of cannabis-specific offenses under Sections 11357, 11358, 11359, 11360, 11361, and 11485 of the Health and Safety Code, and Section 23222(b) of the Vehicle Code, shall be eligible to apply for a cannabis license under this Act.
