AB 1872 — Cannabis.

Summary

(1) The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA) , an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. 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. MAUCRSA establishes in state government a Cannabis Control Appeals Panel to review specified decisions of licensing authorities appealed by any person aggrieved by those decisions. MAUCRSA requires that the panel consist of one member appointed by the Senate Committee on Rules, one member appointed by the Speaker of the Assembly, and 3 members appointed by the Governor, as specified. Existing law requires that each member, at the time of their initial appointment, be a resident of a different county from the one in which either of the other appointed members resides. This bill would limit the residency requirement to the members of the panel appointed by the Governor. (2) AUMA imposes an excise tax commencing January 1, 2018, on the purchase of cannabis and cannabis products at the rate of 15% of the average market price of any retail sale by a cannabis retailer. Existing law defines average market price in an arm's length transaction to mean the average retail price determined by the wholesale cost of the cannabis or cannabis products sold or transferred to a cannabis retailer, plus a mark-up, as determined by the California Department of Tax and Fee Administration on a biannual basis in six-month intervals. This bill would prohibit the department from increasing the mark-up amount during the period beginning on and after the operative date of the bill and before July 1, 2021. (3) Commencing January 1, 2018, AUMA, and as additionally amended by statute, also imposes a cultivation tax upon all cultivators on all harvested cannabis that enters the commercial market, at specified rates per dry-weight ounce of cannabis flowers and leaves, as specified. AUMA requires, beginning January 1, 2020, these tax rates to be adjusted by the California Department of Tax and Fee Administration annually thereafter for inflation. This bill would, notwithstanding that requirement, prohibit those tax rates that are imposed in the 2021 calendar year from being adjusted for inflation unless the adjustment is for an inflation rate that is less than zero. (4) AUMA requires the Department of Finance to estimate revenues to be received from specified taxes on cannabis and cannabis products and to provide those estimates to the Controller no later than June 15 of each year. AUMA requires the Controller to use these estimates to disburse funds deposited in the California Cannabis Tax Fund, a continuously appropriated fund, in accordance with specified requirements. AUMA requires the Controller, by July 15 of each fiscal year beginning in the 2018-19 fiscal year, after making other specified disbursements from the California Cannabis Tax Fund, to disburse 60% of the funds deposited during the prior fiscal year into the Youth Education, Prevention, Early Intervention and Treatment Account, 20% into the Environmental Restoration and Protection Account, and 20% into the State and Local Government Law Enforcement Account. Of the 20% deposited into the State and Local Government Law Enforcement Account, AUMA requires the Controller to disburse moneys from the State and Local Government Law Enforcement Account to the Board of State and Community Corrections for grants to local governments to assist with law enforcement, fire protection, or other local programs addressing public health and safety associated with the implementation of AUMA. AUMA prohibits the board from making grants to local governments that have banned the cultivation, including personal cultivation, or retail sales of cannabis and cannabis products. This bill would instead prohibit the board from making grants to local governments that ban both indoor and outdoor commercial cannabis cultivation or ban the retail sale of cannabis or cannabis products. By removing a restriction on disbursements from the California Cannabis Tax Fund, a continuously appropriated fund, this bill would make an appropriation. (5) AUMA authorizes the Legislature to amend its provisions with a 23 vote of both houses to further its purposes and intent. This bill would make specified findings and declare that its provisions further the purposes and intent of AUMA. (6) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Bill Text

• Chaptered 09/18/20 - Chaptered Current pdf September 18, 2020
• Enrolled 09/04/20 - Enrolled pdf September 04, 2020
• Amended 08/25/20 - Amended Senate pdf August 25, 2020
• Amended 02/25/20 - Amended Assembly pdf February 25, 2020
• Introduced 01/07/20 - Introduced pdf January 07, 2020
• AB1872 View text html

Action History

1. September 18, 2020

   Chaptered by Secretary of State - Chapter 93, Statutes of 2020.

2. September 18, 2020

   Approved by the Governor.

3. September 15, 2020

   Enrolled and presented to the Governor at 3 p.m.

4. August 31, 2020

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 72. Noes 0. Page 5438.).

5. August 31, 2020

   Assembly Rule 63 suspended. (Ayes 59. Noes 16. Page 5435.)

6. August 31, 2020

   In Assembly. Concurrence in Senate amendments pending.

7. August 31, 2020

   Read third time. Urgency clause adopted. Passed. Ordered to the Assembly. (Ayes 30. Noes 9.).

8. August 30, 2020

   Read second time. Ordered to third reading.

9. August 29, 2020

   From committee: Do pass. (Ayes 13. Noes 5.) (August 29).

10. August 27, 2020

    In committee: Hearing postponed by committee.

11. August 25, 2020

    From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F.R.

12. August 24, 2020

    Joint Rules 61 and 62(a) suspended. (Ayes 29. Noes 10. Page 4299.)

13. July 01, 2020

    Referred to Com. on B. & F.R.

14. June 16, 2020

    In Senate. Read first time. To Com. on RLS. for assignment.

15. June 15, 2020

    Read third time. Passed. Ordered to the Senate. (Ayes 60. Noes 14. Page 4866.)

16. March 10, 2020

    Read second time. Ordered to third reading.

17. March 09, 2020

    Ordered to second reading.

18. March 09, 2020

    Withdrawn from committee.

19. March 09, 2020

    Assembly Rule 96 suspended. (Ayes 57. Noes 15. Page 4273.)

20. February 26, 2020

    Re-referred to Com. on BUDGET.

21. February 25, 2020

    From committee chair, with author's amendments: Amend, and re-refer to Com. on BUDGET. Read second time and amended.

22. January 17, 2020

    Referred to Com. on BUDGET.

23. January 08, 2020

    From printer. May be heard in committee February 7.

24. January 07, 2020

    Read first time. To print.

Sponsors

• Committee on Budget · Primary

Votes

Subjects