California 2021-2022 Regular Session Status: In Committee 1 D cosponsors

AB 725 — Cannabis tax: penalty.

Last action — From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

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

This bill died with 2021-2022 Regular Session. It reached “In Committee” 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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

Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA) , approved by the voters as Proposition 64 at the November 8, 2016, statewide general election, regulates the cultivation, distribution, transport, storage, manufacturing, testing, processing, sale, and use of marijuana for nonmedical purposes by people 21 years of age and older. 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. AUMA imposes an excise tax 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, as specified. 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. AUMA imposes a monetary penalty, among other things, on a licensee who fails to pay the excise or cultivation tax of at least 12 of the amount of taxes not paid. AUMA requires these taxes and penalties, among other amounts collected, to be deposited in the California Cannabis Tax Fund, a continuously appropriated fund, for specified purposes required under AUMA. This bill would remove the monetary penalty imposed on a licensee who fails to pay the excise or cultivation tax enacted by AUMA, but would retain the monetary penalty on a person who is required to be licensed under AUMA but who is not licensed, and who fails to pay the excise or cultivation taxes, as specified. AUMA authorizes the Legislature to amend its provisions with a23vote of both houses to further its purposes and intent. This bill would declare that its provisions further specified purposes and intent of the act.

Bill Text

Action History

  1. From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

  2. Died pursuant to Art. IV, Sec. 10(c) of the Constitution.

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

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

  5. Referred to Coms. on REV. & TAX. and B. & P.

  6. From printer. May be heard in committee March 19.

  7. Read first time. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

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"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.

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Subjects

taxation
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Frequently asked questions

What does AB 725 do?
Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA) , approved by the voters as Proposition 64 at the November 8, 2016, statewide general election, regulates the cultivation, distribution, transport, storage, manufacturing, testing, processing, sale, and use of marijuana for nonmedical purposes by people 21 years of age and older. 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. AUMA imposes an excise tax 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, as specified. 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. AUMA imposes a monetary penalty, among other things, on a licensee who fails to pay the excise or cultivation tax of at least 12 of the amount of taxes not paid. AUMA requires these taxes and penalties, among other amounts collected, to be deposited in the California Cannabis Tax Fund, a continuously appropriated fund, for specified purposes required under AUMA. This bill would remove the monetary penalty imposed on a licensee who fails to pay the excise or cultivation tax enacted by AUMA, but would retain the monetary penalty on a person who is required to be licensed under AUMA but who is not licensed, and who fails to pay the excise or cultivation taxes, as specified. AUMA authorizes the Legislature to amend its provisions with a23vote of both houses to further its purposes and intent. This bill would declare that its provisions further specified purposes and intent of the act.
Who sponsors AB 725?
AB 725 is sponsored by Ward, Christopher M. (Democratic).
What is the current status of AB 725?
This bill died with 2021-2022 Regular Session. It reached “In Committee” 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 AB 725?
Track AB 725 free on One Click Politics — get push/email alerts when it moves.

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