California 2019-2020 Regular Session Status: Enacted Bipartisan · 1 R · 1 D cosponsors

AB 37 — Personal income taxes: deductions: business expenses: commercial cannabis activity.

Last action — Chaptered by Secretary of State - Chapter 792, Statutes of 2019.

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

This bill has been enacted into law. Introduced December 03, 2018. Enacted.

Prognosis

Likely to advance 98% · high confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 6 sponsors

    1 primary, 5 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (1 R · 1 D) — cross-party backing.

  • Cleared a recorded vote

    Passed 8 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Existing law, 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 and authorizes persons to conduct specified commercial cannabis activities, as defined, in the state. The Personal Income Tax Law and the Corporation Tax Law allow various deductions in computing the income that is subject to the taxes imposed by those laws. The Personal Income Tax Law conforms as of a specified date to federal income tax laws with respect to itemized deductions, including business deductions and items not deductible, except as specifically provided. The Corporation Tax Law does not conform to those federal income tax provisions, but specifically provides for deductions for purposes of that law. Existing federal income tax laws disallow a deduction or credit for business expenses of a trade or business whose activities consist of trafficking specified controlled substances, including marijuana. The Personal Income Tax Law conforms to those federal income tax law provisions with respect to deductions. This bill, for each taxable year beginning on or after January 1, 2020, and before January 1, 2025, would specifically provide in the Personal Income Tax Law for nonconformity to that federal law disallowing a deduction or credit for business expenses of a trade or business whose activities consist of trafficking specified controlled substances only for commercial cannabis activity, as defined under MAUCRSA, by a licensee under MAUCRSA, thus allowing deduction of business expenses paid or incurred during the taxable year in carrying on that commercial cannabis activity under the Personal Income Tax Law. This bill would take effect immediately as a tax levy.

Bill Text

Action History

  1. Chaptered by Secretary of State - Chapter 792, Statutes of 2019.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 3:30 p.m.

  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 71. Noes 3. Page 3117.).

  5. In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 7 pursuant to Assembly Rule 77.

  6. Read third time. Passed. Ordered to the Assembly. (Ayes 33. Noes 5. Page 2517.).

  7. Read second time. Ordered to third reading.

  8. Read second time and amended. Ordered returned to second reading.

  9. From committee: Amend, and do pass as amended. (Ayes 6. Noes 1.) (August 30).

  10. In committee: Referred to APPR. suspense file.

  11. Read second time and amended. Re-referred to Com. on APPR.

  12. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 4. Noes 1.) (June 12).

  13. Referred to Com. on GOV. & F.

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

  15. Read third time. Passed. Ordered to the Senate. (Ayes 69. Noes 1. Page 1854.)

  16. Read second time. Ordered to third reading.

  17. From committee: Do pass. (Ayes 17. Noes 1.) (May 16).

  18. In committee: Set, first hearing. Referred to APPR. suspense file.

  19. From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 1.) (April 8). Re-referred to Com. on APPR.

  20. Re-referred to Com. on REV. & TAX.

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

  22. In committee: Hearing for testimony only.

  23. Referred to Com. on REV. & TAX.

  24. From printer. May be heard in committee January 3.

  25. Read first time. To print.

Sponsors

  • Jones-Sawyer · Primary
  • Cooley · Cosponsor
  • Tom Lackey · Cosponsor
  • Quirk · Cosponsor
  • Wood · Cosponsor
  • Mia Bonta · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 5 co-sponsors · 116 not signed on · 2 voted No

Sponsors (1)

  • Jones-Sawyer

Co-sponsors (5)

Not signed on (116)

116 members have not signed on to this bill.

Show all 116 →

"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

AB 37 Jones-Sawyer Concurrence in Senate Amendments

Passed 71 Yea · 3 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 46204
Democratic 20101
Republican 5000
Total 71305
% of votes cast 90%4%0%6%
How each member voted (79)
Member Party Vote
Fong — Yea
Smith — Yea
Cunningham — Yea
Gonzalez — Yea
Diep — Yea
Chau — Yea
Gloria — Yea
Bloom — Yea
Rodriguez — Yea
Santiago — Yea
Obernolte — Yea
Voepel — Yea
Chiu — Yea
Gray — Yea
Holden — Yea
Daly — Yea
Eggman — Yea
Maienschein — Yea
Jones-Sawyer — Yea
Quirk — Yea
Mullin — Yea
Friedman — Yea
Ting — Yea
Kamlager-Dove — Yea
Levine — Yea
Low — Yea
Nazarian — Yea
Burke — Yea
Cooper — Yea
Wood — Yea
Medina — Yea
Rendon — Yea
Chu — Yea
McCarty — Yea
O'Donnell — Yea
Weber — Yea
Waldron — Yea
Salas — Nay
Melendez — Nay
Kiley — Not Voting
Mathis — Not Voting
Bigelow — Not Voting
Brough — Yea
Mayes — Yea
Frazier — Yea
Cooley — Yea
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Not Voting
Luz Rivas — Yea
Mark Stone — Yea
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Nay
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Limón, Monique Democratic Yea
Muratsuchi, Al Democratic Not Voting
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Yea
Wicks, Buffy Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Yea

Official roll call →

3rd Reading AB37 Jones-Sawyer et al. By McGuire

Passed 33 Yea · 5 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 23400
Democratic 8002
Republican 2100
Total 33502
% of votes cast 83%13%0%5%
How each member voted (40)
Member Party Vote
Rubio — Yea
Monning — Yea
Wieckowski — Yea
Mitchell — Yea
Bradford — Yea
Wilk — Yea
Beall — Yea
Atkins — Yea
Hill — Yea
Roth — Yea
Hueso — Yea
Leyva — Yea
Dodd — Yea
Moorlach — Yea
Skinner — Yea
Allen — Yea
Galgiani — Yea
Hertzberg — Yea
Portantino — Yea
Glazer — Yea
Chang — Yea
Pan — Yea
Borgeas — Nay
Bates — Nay
Morrell — Nay
Nielsen — Nay
Mark Stone — Yea
Archuleta, Bob Democratic Yea
Caballero, Anna M. Democratic Yea
Durazo, Maria Elena Democratic Yea
Gonzalez, Lena A. Democratic Yea
Hurtado, Melissa Democratic Not Voting
Jackson, Corey A. Democratic Not Voting
McGuire, Mike Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Dahle, Megan Republican Yea
Grove, Shannon Republican Nay
Jones, Brian W. Republican Yea

Official roll call →

Do pass as amended

Passed 6 Yea · 1 Nay
Party YeaNayPresentNot Voting
Republican 1000
Unaffiliated 4100
Democratic 1000
Total 6100
% of votes cast 86%14%0%0%
How each member voted (7)
Member Party Vote
Wieckowski — Yea
Portantino — Yea
Hill — Yea
Bradford — Yea
Bates — Nay
Durazo, Maria Elena Democratic Yea
Jones, Brian W. Republican Yea

Official roll call →

AB 37 Jones-Sawyer Assembly Third Reading

Passed 69 Yea · 1 Nay · 10 Other
Party YeaNayPresentNot Voting
Unaffiliated 40107
Democratic 23002
Republican 6001
Total 691010
% of votes cast 86%1%0%13%
How each member voted (80)
Member Party Vote
Brough — Yea
Mayes — Yea
Salas — Yea
Frazier — Yea
Smith — Yea
Cunningham — Yea
Gonzalez — Yea
Diep — Yea
Chau — Yea
Gloria — Yea
Bloom — Yea
Rodriguez — Yea
Santiago — Yea
Obernolte — Yea
Chiu — Yea
Gray — Yea
Holden — Yea
Daly — Yea
Eggman — Yea
Maienschein — Yea
Jones-Sawyer — Yea
Quirk — Yea
Mullin — Yea
Friedman — Yea
Ting — Yea
Kamlager-Dove — Yea
Levine — Yea
Low — Yea
Burke — Yea
Cooper — Yea
Wood — Yea
Medina — Yea
Rendon — Yea
Chu — Yea
McCarty — Yea
O'Donnell — Yea
Weber — Yea
Waldron — Yea
Melendez — Nay
Voepel — Not Voting
Kiley — Not Voting
Mathis — Not Voting
Bigelow — Not Voting
Cooley — Not Voting
Nazarian — Not Voting
Cristina Garcia — Yea
Eduardo Garcia — Not Voting
Mark Stone — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Not Voting
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Carrillo, Juan Democratic Yea
Cervantes, Sabrina Democratic Yea
Fong, Mike Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Limón, Monique Democratic Yea
Muratsuchi, Al Democratic Not Voting
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Yea
Wicks, Buffy Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Not Voting
Dahle, Megan Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Yea
Patterson, Joe Republican Yea

Official roll call →

Do pass.

Passed 17 Yea · 1 Nay
Party YeaNayPresentNot Voting
Democratic 7000
Unaffiliated 10100
Total 17100
% of votes cast 94%6%0%0%
How each member voted (18)
Member Party Vote
Bloom — Yea
Brough — Yea
Obernolte — Yea
Maienschein — Yea
Quirk — Yea
Eggman — Yea
Gonzalez — Yea
Diep — Yea
Chau — Yea
Bigelow — Nay
Eduardo Garcia — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Carrillo, Juan Democratic Yea
Fong, Mike Democratic Yea
Gabriel, Jesse Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Rivas, Robert Democratic Yea

Official roll call →

Subjects

taxation
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does AB 37 do?
Existing law, 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 and authorizes persons to conduct specified commercial cannabis activities, as defined, in the state. The Personal Income Tax Law and the Corporation Tax Law allow various deductions in computing the income that is subject to the taxes imposed by those laws. The Personal Income Tax Law conforms as of a specified date to federal income tax laws with respect to itemized deductions, including business deductions and items not deductible, except as specifically provided. The Corporation Tax Law does not conform to those federal income tax provisions, but specifically provides for deductions for purposes of that law. Existing federal income tax laws disallow a deduction or credit for business expenses of a trade or business whose activities consist of trafficking specified controlled substances, including marijuana. The Personal Income Tax Law conforms to those federal income tax law provisions with respect to deductions. This bill, for each taxable year beginning on or after January 1, 2020, and before January 1, 2025, would specifically provide in the Personal Income Tax Law for nonconformity to that federal law disallowing a deduction or credit for business expenses of a trade or business whose activities consist of trafficking specified controlled substances only for commercial cannabis activity, as defined under MAUCRSA, by a licensee under MAUCRSA, thus allowing deduction of business expenses paid or incurred during the taxable year in carrying on that commercial cannabis activity under the Personal Income Tax Law. This bill would take effect immediately as a tax levy.
Who sponsors AB 37?
AB 37 is sponsored by Jones-Sawyer, Cooley, Lackey, Tom (Republican), Quirk, Wood, and Bonta, Mia (Democratic).
What is the current status of AB 37?
This bill has been enacted into law. Introduced December 03, 2018. Enacted.
Where can I track AB 37?
Track AB 37 free on One Click Politics — get push/email alerts when it moves.

Make your voice heard on AB 37

Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.

Find my representatives → Run a campaign

Stay ahead of AB 37

Last checked for changes 2 months ago · updated continuously

One Click Politics tracks every bill in Congress and all 50 states.

Track this bill →