California 2019-2020 Regular Session Status: Passed Senate

SB 827 — Cannabis.

Last action — Ordered to third reading.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed Assembly
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2019-2020 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

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

Action History

  1. Ordered to third reading.

  2. Withdrawn from committee.

  3. Assembly Rule 96 and 63 suspended. (Ayes 57. Noes 15. Page 5409.)

  4. From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET.

  5. Referred to Com. on BUDGET.

  6. In Assembly. Read first time. Held at Desk.

  7. Read third time. Passed. (Ayes 29. Noes 11. Page 3740.) Ordered to the Assembly.

  8. Read second time. Ordered to third reading.

  9. Ordered to second reading.

  10. Withdrawn from committee. (Ayes 28. Noes 10. Page 3366.)

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

  12. Read first time.

  13. From printer. May be acted upon on or after February 12.

  14. Introduced. To Com. on RLS. for assignment. To print.

Sponsors

  • Committee on Budget and Fiscal Review · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on · 3 voted No

Sponsors (1)

  • Committee on Budget and Fiscal Review

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

3rd Reading SB827 B. & F.R.

Passed 29 Yea · 11 Nay
Party YeaNayPresentNot Voting
Unaffiliated 19800
Democratic 10000
Republican 0300
Total 291100
% of votes cast 73%28%0%0%
How each member voted (40)
Member Party Vote
Leyva — Yea
Atkins — Yea
Skinner — Yea
Allen — Yea
Dodd — Yea
Hertzberg — Yea
Glazer — Yea
Roth — Yea
Rubio — Yea
Hill — Yea
Mitchell — Yea
Pan — Yea
Beall — Yea
Wieckowski — Yea
Monning — Yea
Galgiani — Yea
Portantino — Yea
Bradford — Yea
Hueso — Yea
Morrell — Nay
Chang — Nay
Nielsen — Nay
Wilk — Nay
Moorlach — Nay
Bates — Nay
Melendez — Nay
Borgeas — Nay
Archuleta, Bob Democratic Yea
Caballero, Anna M. Democratic Yea
Durazo, Maria Elena Democratic Yea
Gonzalez, Lena A. Democratic Yea
Hurtado, Melissa Democratic Yea
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Dahle, Megan Republican Nay
Grove, Shannon Republican Nay
Jones, Brian W. Republican Nay

Official roll call →

Subjects

public-safety taxation agriculture
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Frequently asked questions

What does SB 827 do?
(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.
Who sponsors SB 827?
SB 827 is sponsored by Committee on Budget and Fiscal Review.
What is the current status of SB 827?
This bill died with 2019-2020 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 827?
Track SB 827 free on One Click Politics — get push/email alerts when it moves.

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