Bikers Of America, Know Your Rights!: January 2019

OFF THE WIRE
The current California legislative session ended recently and lawmakers proposed a variety of new laws. The California Governor has signed many of the cannabis bills sent to him this year, other bills he vetoed. The laws affect licensing, marketing, distribution, shared space, temporary events & more.
Read the news article and see the complete 2018 California Cannabis Law Legislative Update.

Here is the latest California Cannabis Law Legislative Update (updated 11/25/18).

The current California legislative session ended Aug. 31, 2018, and lawmakers proposed new cannabis laws ranging from simple non-substantive clean-up language such as modifying all references to reflect the name change to the Bureau of Cannabis Control (BCC) and the consolidation of the licensure and regulation of commercial medicinal cannabis and adult-use cannabis activities (AB 3261) to pre-emption of local regulations prohibiting cannabis delivery services (SB 1302). In short, the California State Legislature this year sent over 30 new cannabis laws to the Governor’s desk. The California Legislature also passed various joint resolutions directed toward the federal government expressing opinions about cannabis law issues (joint resolutions require the approval of both the Assembly and Senate but do not require approval by the Governor).

This California Cannabis Law Legislative Update is divided into two sections: i) California Cannabis Bills that Passed in the State Legislature, and ii) California Cannabis Bills that Failed in the State Legislature. Under each bill is an explanation of existing law and what that bill will do. Each bill contains a link to the official California Legislative Information website page for that bill (where readers can get more info on the bill including the actual text, votes, history, bill analysis, status, and more).

The Legislative Process

Once a legislative bill is approved by both the California Assembly and Senate, it is sent to the Governor. The California Governor can then sign the bill into law, allow the bill to become law without his signature, or veto the bill. A governor’s veto can be overridden by a two thirds vote in both the Assembly and Senate. Most bills go into effect on the first day of January of the next year. Urgency measures take effect immediately after they are signed or allowed to become law without signature.

Bills that are passed by the Legislature and approved by the Governor are assigned a chapter number by the California Secretary of State. These Chaptered Bills (also referred to as Statutes of the year they were enacted) then become part of the California Codes.

The California Governor has signed many of the cannabis bills sent to him this year, other bills he vetoed.

Existing California Cannabis Law

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 California 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. Commercial adult-use cannabis activity includes cultivation, distribution, transport, storage, manufacturing, testing, processing, sale, and use of marijuana for nonmedical purposes by people 21 years of age and older. Senate Bill 94, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) approved in June 2017, among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities.

AUMA authorizes the California Legislature to amend its provisions by a bill passed with a 2/3 vote of each house of the Legislature, if the amendment furthers its purposes and intent. AUMA also authorizes the Legislature to amend other provisions by a bill passed by a majority vote if the bill implements specified substantive provisions and the amendments are consistent with and further the purposes and intent of the act. Read more about cannabis law at California Cannabis Law.
CALIFORNIA CANNABIS BILLS THAT PASSED IN THE STATE LEGISLATURE:

There were a number of California cannabis bills that passed in the State Legislature in 2018. Significant cannabis bills that passed include: AB 106 investigation of criminal history of cannabis license applicants; AB 710 cannabidiol; AB 873 Department of Food and Agriculture commercial cannabis activity inspectors; AB 1527 Cannabis Control Appeals Panel; AB 1741 cannabis taxation and electronic funds transfer; AB 1793 cannabis convictions and resentencing; AB 1863 personal income tax deduction for commercial cannabis activity; AB 1996 the California Cannabis Research Program; AB 2020 local jurisdiction cannabis temporary event license; AB 2058 driving under the influence of cannabis; AB 2164 local ordinances, fines and penalties for cannabis; AB 2215 veterinarians and administration of cannabis to animals; AB 2255 cannabis distribution and deliveries; AB 2402 protection of personal information of cannabis customers; AB 2721 cannabis testing laboratories; AB 2799 adult-use cannabis and medicinal cannabis license applications and OSHA training; AB 2899 cannabis advertisements; AB 2914 cannabis in alcoholic beverages; AB 2980 cannabis premises common space; AB 3067 internet and marketing of cannabis to minors; AB 3069 cannabis informational, educational, or training events; AB 3112 controlled substances and butane; AB 3261 nonsubstantive cannabis regulation changes; AJR 27 joint resolution urging the United States Department of Justice not to direct its enforcement priorities towards California’s lawfully and closely regulated cannabis industry; AJR 28 joint resolution urging the Congress and the President to pass legislation that would allow financial institutions to provide services to the cannabis industry; SB 65 ingesting marijuana while driving or riding in a vehicle; SB 311 commercial cannabis distributors; SB 829 cannabis donations to a medical cannabis patient; SB 872 local government taxation re groceries; SB 1127 pupil health and administration of medicinal cannabis at schoolsites; SB 1294 cannabis state and local equity programs; SB 1409 industrial hemp; SB 1451 licenses and cannabis sale to underaged persons; SB 1459 cannabis: provisional license; SJR 5 Federal rescheduling of marijuana from a Schedule I drug.

AB 106 (Committee on Budget) Cannabis: licenses: criminal records. (Approved by California Governor 3/13/2018 and Chaptered by California Secretary of State 3/13/2018)

This bill would specify that the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the United States Federal Bureau of Investigation for an applicant for any state license under MAUCRSA, including any license established by a licensing authority by regulation pursuant to the authority described above. The bill would require the Department of Justice to forward all requests for federal criminal history record information to the Federal Bureau of Investigation for these purposes and to review the information and compile and disseminate a response to the licensing authority.

This bill would also appropriate the sum of $10,700,000 in augmentation of Item 8570-001-3288 of Section 2.00 of the Budget Act of 2017, from the Cannabis Control Fund to the Department of Food and Agriculture for state costs in the 2017–18 fiscal year to supply proprietary plant and package radio-frequency identification tags, to be used by licensees to track cannabis and cannabis-related products, as specified.

AB 710 (Wood D) Cannabidiol. (Approved by California Governor 7/9/2018 and Chaptered by California Secretary of State 7/9/2018)

Existing law, the California Uniform Controlled Substances Act, classifies controlled substances into 5 designated schedules, with the most restrictive limitations generally placed on controlled substances classified in Schedule I, and the least restrictive limitations generally placed on controlled substances classified in Schedule V. Existing law designates cannabis in Schedule I. Cannabidiol is a compound contained in cannabis.

This bill, if one of specified changes in federal law regarding the controlled substance cannabidiol occurs, would deem a physician, pharmacist, or other authorized healing arts licensee who prescribes, furnishes, or dispenses a product composed of cannabidiol, in accordance with federal law, to be in compliance with state law governing those acts. The bill would also provide that upon the effective date of one of those changes in federal law regarding cannabidiol, the prescription, furnishing, dispensing, transfer, transportation, possession, or use of that product in accordance with federal law is for a legitimate medical purpose and is authorized pursuant to state law.

AB 873 (Lackey R) Department of Food and Agriculture: commercial cannabis activity inspectors: peace officer duties. (Approved by California Governor 7/9/2018 and Chaptered by California Secretary of State 7/9/2018)

Existing law defines who is a peace officer and specifies the powers of peace officers. Under existing law, specified categories of people are not peace officers but are authorized to exercise the powers of arrest of a peace officer and the power to serve warrants, as specified, if they receive a course in the exercise of those powers. Included in this classification is a person employed by the Department of Food and Agriculture and designated by the Secretary of Food and Agriculture as an investigator, investigator supervisor, or investigator manager, provided that the person’s primary duty is enforcement of, and investigations relating to, specified provisions of law under the purview of the department.

This bill would add to the classification of persons who are not peace officers but who are authorized to exercise the powers of arrest of a peace officer and the power to serve warrants, if trained as specified, a person employed by the Department of Food and Agriculture and designated by the Secretary of Food and Agriculture as an investigator, investigator supervisor, or investigator manager, provided that the person’s primary duty is enforcement of, and investigations relating to, commercial cannabis activity.

AB 1527 (Jones-Sawyer D) Cannabis: Cannabis Control Appeals Panel. (Approved by California Governor 7/16/2018 and Chaptered by California Secretary of State 7/16/2018)

The Medicinal and Adult-Use Cannabis Regulation and Safety Act (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. MAUCRSA authorizes the Governor to remove from office a member of the panel appointed by the Governor. MAUCRSA authorizes the Legislature to remove any member of the panel from office for certain reasons.

This bill would eliminate the Legislature’s power to remove a member of the panel for certain reasons and would provide that the members of the panel may be removed from office by their appointing authority.

AB 1741 (Bonta D) Cannabis: taxation: electronic funds transfer. (Approved by California Governor 8/28/2018 and Chaptered by California Secretary of State 8/28/2018)

This bill, until January 1, 2022, would instead authorize a person licensed under MAUCRSA, whose estimated tax liability under that law averages $10,000 or more per month, to remit amounts due by a means other than electronic funds transfer if the board deems it necessary to facilitate collection of amounts due.

AB 1793 (Bonta D) Cannabis convictions: resentencing. (Approved by California Governor 9/30/2018 and Chaptered by California Secretary of State 9/30/2018)

Under AUMA, a person 21 years of age or older may, among other things, possess, process, transport, purchase, obtain, or give away, as specified, up to 28.5 grams of cannabis and up to 8 grams of concentrated cannabis. Existing law authorizes a person to petition for the recall or dismissal of a sentence, dismissal and sealing of a conviction, or redesignation of a conviction of an offense for which a lesser offense or no offense would be imposed under AUMA. (See generally Marijuana Conviction Resentencing Under California Prop 64.)

This bill would require the Department of Justice, before July 1, 2019, to review the records in the state summary criminal history information database and to identify past convictions that are potentially eligible for recall or dismissal of sentence, dismissal and sealing, or redesignation pursuant to AUMA. The bill would require the department to notify the prosecution of all cases in their jurisdiction that are eligible for recall or dismissal of a sentence, dismissal and sealing, or redesignation. The bill would require the prosecution to, on or before July 1, 2020, review all cases and determine whether to challenge the resentencing, dismissal and sealing, or redesignation. The bill would authorize the prosecution to challenge the resentencing, dismissal and sealing, or redesignation if the person does not meet the eligibility requirements or presents an unreasonable risk to public safety. The bill would require the prosecution to notify the public defender and the court when they are challenging a particular resentencing, dismissal and sealing, or redesignation, and would require the prosecution to notify the court if they are not challenging a particular resentencing, dismissal and sealing, or redesignation. By imposing additional duties on local entities, this bill would create a state-mandated local program. The bill would require the court to automatically reduce or dismiss the conviction pursuant to AUMA if there is no challenge by July 1, 2020. The bill would require the department to modify the state summary criminal history information database in conformance with the recall or dismissal of sentence, dismissal and sealing, or redesignation within 30 days and to post specified information on its Internet Web site.

AB 1863 (Jones-Sawyer D) Personal income tax: deduction: commercial cannabis activity. (Vetoed by California Governor on 9/19/2018)

This bill, for each taxable year beginning on and after January 1, 2018, 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 for a cannabis trade or business under the Personal Income Tax Law, as provided.

AB 1996 (Lackey R) The California Cannabis Research Program. (Vetoed by California Governor on 9/20/2018)

Existing law, if the Regents of the University of California accept the responsibility, requires the University of California to establish the California Cannabis Research Program, also sometimes referred to as the California Marijuana Research Program or the Center for Medicinal Cannabis Research, in order to develop and conduct studies intended to ascertain the general medical safety and efficacy of cannabis, among other duties. Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative statute approved by the voters at the November 8, 2016, statewide general election as Proposition 64, among other things, establishes the California Cannabis Tax Fund as a continuously appropriated fund consisting of specified taxes, interest, penalties, and other amounts imposed by AUMA. AUMA requires, after other specified disbursements are made from the fund, the Controller to disburse $2,000,000 to the University of San Diego Center for Medicinal Cannabis Research.

This bill would conform the name of the program throughout the code, including for purposes of the appropriation made by AUMA, as the California Cannabis Research Program and would specify that the program is hosted by the Center for Cannabis Research. The bill would authorize the program to cultivate cannabis for its use in research, as specified. The bill would expand the purview of the program to include the study of naturally occurring constituents of cannabis and synthetic compounds that have effects similar to naturally occurring cannabinoids and would also authorize the controlled clinical trials to focus on examining testing methods for detecting harmful contaminants in cannabis, including mold and bacteria. The bill would prohibit the use of specified funds from the California Cannabis Tax Fund from being used for these purposes.

AB 2020 (Quirk D) Cannabis: local jurisdiction licensees: temporary event license. (Approved by California Governor 9/26/2018 and Chaptered by California Secretary of State 9/26/2018)

Existing law, Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), authorizes a state licensing authority to issue a state temporary event license to a licensee authorizing onsite cannabis sales to, and consumption by, persons 21 years of age or older at a county fair or district agricultural association event, provided that certain other requirements are met, including that all participants in the event are licensed under MAUCRSA.

This bill would authorize a state temporary event license to be issued to a licensee for an event to be held at any other venue expressly approved by a local jurisdiction for events, as described. The bill would modify the requirements codified in MAUCRSA to include requirements that are similar to those provided in regulations adopted by the bureau described above, including requiring that all participants who are engaged in the onsite retail sale of cannabis or cannabis products at the event be licensed to engage in that activity, and requiring an applicant who submits an application for a state temporary event license to, 60 days before the event, provide the bureau a list of all licensees that will be providing onsite sales of cannabis or cannabis products at the event and to update that list in a manner similar to what is provided in existing regulations. The bill would specifically authorize the bureau to impose a civil penalty on any person who violates the requirements governing state temporary event licenses in an amount up to 3 times the amount of the license fee for each violation. The bill would authorize the bureau to require the event and all participants to cease operations without delay if in the opinion of the bureau or local law enforcement it is necessary to protect the immediate public health and safety of the people of the state. The bill would authorize the bureau to require the event organizer to immediately expel from the event any participant selling cannabis or cannabis products without a license from the bureau that authorizes the participant to sell cannabis or cannabis products and would authorize the bureau to require the event and all participants to cease operations immediately if the participant does not leave immediately. The bill would specify that an order by the bureau for the event to cease operations does not entitle the event organizer or any participant in the event to a hearing or an appeal of the decision. The bill would exempt an order by the bureau for the event to cease operations from specified provisions related to the discipline of a license and from specified provisions related to the appeal of a decision by a licensing authority.

AB 2058 (Chau D) Vehicles: driving under the influence: cannabis. (Vetoed by California Governor on 9/21/2018)

Existing law prohibits a person who is under the influence of alcohol, drugs, or the combined influence of alcohol or drugs from driving a vehicle. Existing law also prohibits a person from driving under the influence and proximately causing bodily harm to another person, as specified. Existing law defines a drug, for purposes of these provisions, as any substance or combination of substances other than alcohol that can affect the nervous system, brain, or muscles of a person in a manner that impairs the ability to safely drive a vehicle.

This bill would recast these provisions to make driving under the influence of cannabis, or driving under the combined influence of cannabis and another drug, each a separate offense, but with no changes to the penalty.

AB 2164 (Cooley D) Local ordinances: fines and penalties: cannabis. (Approved by California Governor 9/10/2018 and Chaptered by California Secretary of State 9/10/2018)

Existing law authorizes the legislative body of a local agency, as defined, to make, by ordinance, any violation of an ordinance subject to an administrative fine or penalty, as specified. Existing law requires the ordinance adopted by the local agency to provide for a reasonable period of time, as specified in the ordinance, for a person responsible for a continuing violation to correct or otherwise remedy the violation prior to the imposition of administrative fines or penalties, when the violation pertains to building, plumbing, electrical, or other similar structural or zoning issues, that do not create an immediate danger to health or safety.

This bill would allow the ordinance to provide for the immediate imposition of administrative fines or penalties for the violation of building, plumbing, electrical, or other similar structural, health and safety, or zoning requirements if the violation exists as a result of, or to facilitate, the illegal cultivation of cannabis, except as specified.

AB 2215 (Kalra D) Veterinarians: cannabis: animals. (Approved by California Governor 9/27/2018 and Chaptered by California Secretary of State 9/27/2018)

The California Uniform Controlled Substances Act classifies controlled substances into 5 designated schedules, and places cannabis and cannabis products under Schedule I. The act prohibits prescribing, administering, dispensing, or furnishing a controlled substance to or for any person or animal, unless otherwise specified. The Veterinary Medicine Practice Act provides for the licensure and regulation of veterinarians and the practice of veterinary medicine by the Veterinary Medical Board, which is within the Department of Consumer Affairs. The act authorizes the board to revoke or suspend the license of a person to practice veterinary medicine, or to assess a fine, for specified causes, including violating a statute related to controlled substances. The act also makes a violation of its provisions a misdemeanor.

This bill would authorize the board to revoke or suspend a veterinarian license, or to assess a fine, for accepting, soliciting, or offering any form of remuneration from or to a Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) licensee if the veterinarian or his or her immediate family has a financial interest, as defined, with the MAUCRSA licensee. The bill would authorize the board to revoke or suspend a veterinarian license, or to assess a fine, for discussing medicinal cannabis with a client while the veterinarian is employed by, or has an agreement with, a MAUCRSA licensee. The bill would authorize the board to revoke or suspend a license, or to assess a fine, for distributing any form of advertising for cannabis in California. The bill would prohibit a licensed veterinarian from dispensing or administering cannabis or cannabis products to an animal patient. Because a violation of the Veterinary Medicine Practice Act’s provisions is a crime, the bill would expand the scope of that crime, thereby imposing a state-mandated local program. The bill would also prohibit the Veterinary Medical Board from disciplining, or denying, revoking, or suspending the license of, a licensed veterinarian solely for discussing the use of cannabis on an animal for medicinal purposes, absent negligence or incompetence. The bill would require the board to adopt guidelines for these discussions on or before January 1, 2020, and would require the board to post the guidelines on its Internet Web site.

AB 2255 (Lackey R) Cannabis: distribution: deliveries: violations. (Vetoed by California Governor on 9/30/2018)

This bill would prohibit a licensed distributor from transporting an amount of cannabis or cannabis products in excess of the amount stated on the shipping manifest. This bill contains other related provisions and other existing laws.

This bill would prohibit a law enforcement officer from seizing cannabis or cannabis products for a violation of MAUCRSA, unless the seizure is otherwise authorized by law and the officer has probable cause to believe a criminal cannabis violation has occurred. The bill would also clarify that transportation for purposes of sale with a counterfeit shipping manifest is subject to existing provisions of criminal law relating to the unlawful transportation of cannabis and disciplinary action by the bureau.

MAUCRSA requires a licensee authorized to make deliveries to maintain a copy of the delivery request during deliveries and requires those delivery requests to be made available upon request of the licensing authority and law enforcement officers. This bill would specify that the copy of the delivery request be physical or electronic.

This bill would authorize the bureau to prescribe citations that may be issued for the violations described above, and would prescribe the content of the citations and the method for challenging a citation. The bill would authorize the Department of the California Highway Patrol and local law enforcement agencies to issue those citations.

AB 2402 (Low D) Cannabis: personal information. (Approved by California Governor 9/20/2018 and Chaptered by California Secretary of State 9/20/2018)

Existing law requires licensees to maintain specified records of commercial cannabis transactions.

This bill would prohibit a licensee from disclosing a consumer’s personal information, as defined, to a 3rd party, as specified, except to the extent necessary to allow responsibility for payment to be determined and payment to be made or if the consumer has consented to the licensee’s disclosure of the personal information. The bill would prohibit a licensee from discriminating against a consumer or denying a consumer a product or service because he or she has not provided consent to authorize the licensee to disclose the consumer’s nonpublic personal information to a 3rd party not directly related to the transaction.

AB 2721 (Quirk D) Cannabis: testing laboratories. (Approved by California Governor 9/19/2018 and Chaptered by California Secretary of State 9/19/2018)

Existing law, Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), prohibits the sale of cannabis or cannabis products unless a representative sample of the cannabis or cannabis product has been tested by a testing laboratory. Existing law authorizes testing laboratories to receive and test samples of cannabis or cannabis products from a qualified patient or primary caregiver only if the qualified patient or primary caregiver presents the qualified patient’s valid physician’s recommendation for cannabis for medicinal purposes. Existing law prohibits testing laboratories from certifying samples from a qualified patient or primary caregiver for resale or transfer to another party or licensee. Existing law requires all tests performed by a testing laboratory for a qualified patient or primary caregiver to be recorded with the name of the qualified patient or primary caregiver and the amount of cannabis or cannabis product received.

This bill would authorize a testing laboratory to receive and test samples of cannabis or cannabis products from a person over 21 years of age when the cannabis has been grown by that person and will be used solely for his or her personal use pursuant to AUMA. The bill would prohibit a testing laboratory from certifying samples from the person over 21 years of age for resale or transfer to another person. The bill would require all tests pursuant to these provisions to be recorded with the name of the person submitting the sample and the amount of cannabis or cannabis product received.

AB 2799 (Jones-Sawyer D) Adult-use cannabis and medicinal cannabis: license application: OSHA training. (Approved by California Governor 9/30/2018 and Chaptered by California Secretary of State 9/30/2018)

This bill, except as specified, would require an applicant for initial licensure or renewal of a state license under MAUCRSA to provide a statement that the applicant employs, or will employ within one year of receiving a license or renewal, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program.

AB 2899 (Rubio D) Cannabis: advertisements. (Approved by California Governor 9/29/2018 and Chaptered by California Secretary of State 9/29/2018)

The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) authorizes a licensee to advertise and market cannabis and cannabis products subject to specified restrictions, including accurately and legibly identifying the licensee responsible for that content by adding, at a minimum, the licensee’s license number, and prohibits a licensee from, among other things, advertising or marketing in a manner that is false or untrue. Under MAUCRSA, each licensing authority is authorized to suspend or revoke a licensee’s license for failure to comply with these provisions, among other things.

This bill would prohibit a licensee from publishing or disseminating advertisements or marketing of cannabis and cannabis products while the licensee’s license is suspended.

AB 2914 (Cooley D) Cannabis in alcoholic beverages. (Approved by California Governor 9/27/2018 and Chaptered by California Secretary of State 9/27/2018)

The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, provides for the licensure and regulation of commercial cannabis activity, including cultivation, manufacturing, distribution, and retail sale. Existing law prohibits a commercial cannabis licensee from selling alcoholic beverages or tobacco products on or at any premises with a commercial cannabis license.

This bill would prohibit a licensee from selling, offering, or providing a cannabis product that is an alcoholic beverage, including, but not limited to, an infusion of cannabis or cannabinoids derived from industrial hemp into an alcoholic beverage.

Existing law, the Alcoholic Beverage Control Act, contains various provisions regulating the application for, the issuance of, the suspension of, and the conditions imposed upon, alcoholic beverage licenses by the Department of Alcoholic Beverage Control.

This bill would prohibit an alcoholic beverage licensee from, at its licensed premises, selling, offering, or providing cannabis or cannabis products, including an alcoholic beverage that contains cannabis or cannabis products, and would provide that no alcoholic beverage shall be manufactured, sold, or offered for sale if it contains tetrahydrocannabinol or cannabinoids, regardless of source. The bill would require the department to take disciplinary action against a licensee who does so, including, but not limited to, suspension or revocation of the license.

AB 2980 (Gipson D) Cannabis: premises: common space. (Vetoed by California Governor on 9/29/2018)

The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) requires an applicant for a cannabis license to provide a detailed diagram of the proposed premises wherein the license privileges will be exercised, including showing common or shared entryways. MAUCRSA defines premises for the purposes of the act to mean the designated structure or structures and land specified in the application for the license, as provided.

This bill would define premises as the area specified in the application wherein the license privileges are, or will be, exercised, as provided. The bill would require that provisions of MAUCRSA not be construed to prohibit two or more licensed premises from sharing common use areas wherein no license privileges will be exercised so long as all licensees comply with the requirements of the act, as specified.

AB 3067 (Chau D) Internet: marketing: minors: cannabis. (Approved by California Governor 9/11/2018 and Chaptered by California Secretary of State 9/11/2018)

The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) prohibits any advertising or marketing placed in broadcast, cable, radio, print, and digital communications from being displayed unless at least 71.6% of the audience is reasonably expected to be 21 years of age or older.

This bill would prohibit an operator of an Internet Web site, online service, online application, or mobile application directed to minors, or an advertising service that is notified by an operator that the site, service, or application is directed to minors, from marketing or advertising any cannabis, cannabis product, cannabis business, or cannabis-related instrument or paraphernalia on the Internet Web site, online service, online application, or mobile application. The bill would also prohibit an operator from knowingly using, disclosing, or compiling, the personal information of a minor for the purpose of marketing or advertising any cannabis, cannabis product, cannabis business, or cannabis-related instrument or paraphernalia.

AB 3069 (Cooper D) Cannabis: informational, educational, or training events. (Vetoed by California Governor on 8/28/2018)

Under existing administrative law, the Bureau of Cannabis Control may issue a state temporary cannabis event license to allow retailers and microbusinesses licensed under MAUCRSA to make onsite sales of cannabis goods at a temporary cannabis event.

This bill would authorize retailers, cultivators, and manufacturers that are licensed under MAUCRSA to participate in, and not be required to obtain a temporary cannabis event license or other temporary license for, a cannabis informational, educational, or training event held for state and local government officials, including, but not limited to, legislators, city council members, law enforcement organizations, emergency medical services staff, firefighters, child protective services, and social workers; employees of health care facilities; and employees of public and private schools, if specified conditions are met. These conditions would include that the event is not open to the public and that onsite consumption, provision of free samples, or sale is prohibited at the event. The bill would require that licensed cannabis retailers, cultivators, and manufacturers transporting cannabis products between their licensed premises and the event venue use a licensed distributor under MAUCRSA.

AB 3112 (Grayson D) Controlled substances: butane. (Approved by California Governor 9/20/2018 and Chaptered by California Secretary of State 9/20/2018)

Existing law prohibits or restricts the sale of certain consumer goods, including items that contain certain chemicals, within the state for public health or safety reasons. Violations of these provisions are subject to criminal or civil penalties, as specified.

This bill would make it unlawful to sell to any customer any quantity of nonodorized butane. The bill would exempt from the prohibition certain consumer items such as lighters and small containers of nonodorized butane used to refill these items. The bill would authorize a civil penalty to be assessed for the violation of these provisions. The bill would authorize specified local and state officials to bring a civil action to enforce these provisions. This bill contains other related provisions. One of the reasons given for this bill was that the addition of an odorant will be a disincentive to people who want to use butane canisters for criminal activity of making marijuana honey oil.

AB 3261 (Low D) Cannabis. (Approved by California Governor 9/20/2018 and Chaptered by California Secretary of State 9/20/2018)

This bill would make nonsubstantive changes to reflect the name change of the Bureau of Cannabis Control, and would make other conforming changes to reflect the consolidation of the licensure and regulation of commercial medicinal and adult-use cannabis activities.

AJR 27 (Low D) Cannabis. (Chaptered by California Secretary of State 9/20/2018)

This measure would urge the United States Department of Justice not to direct its enforcement priorities towards California’s lawfully and closely regulated cannabis industry, among other things.

AJR 28 (Jones-Sawyer D) Financial institutions: cannabis. (Chaptered by California Secretary of State 6/19/2018)

This measure would urge the Congress and the President to pass legislation that would allow financial institutions to provide services to the cannabis industry.

SB 65 (Hill D) Vehicles: alcohol and marijuana: penalties. (Approved by California Governor 9/11/2017 and Chaptered by California Secretary of State 9/11/2017)

Existing law makes it an infraction to drink any alcoholic beverage while driving a motor vehicle upon any highway or on other specified lands. Existing law also prohibits a driver or passenger from drinking any alcoholic beverage while in a motor vehicle upon a highway, and makes a violation of this provision punishable as an infraction.

This bill would instead make drinking an alcoholic beverage or smoking or ingesting marijuana or any marijuana product while driving, or while riding as a passenger in, a motor vehicle being driven upon a highway or upon specified lands punishable as an infraction.

SB 311 (Pan D) Commercial cannabis activity: licensed distributors. (Approved by California Governor 9/19/2018 and Chaptered by California Secretary of State 9/19/2018)

Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), provides for the licensure and regulation of commercial cannabis activity. Existing law requires a licensed distributor to arrange for a testing laboratory to obtain a representative sample of each cannabis batch at the distributor’s premises for testing and, upon issuance of a certificate of analysis by a licensed testing laboratory, conduct a quality assurance review before distribution to ensure the labeling and packaging conform to the legal requirements. Existing law authorizes cannabis and cannabis products fit for sale to be transported only from the distributor’s premises to the premises of a licensed retailer, microbusiness, or nonprofit.

This bill would require that transportation to be for the purpose of retail sale. The bill would also authorize a licensed distributor to transport cannabis or cannabis products that are fit for sale to the premises of another licensed distributor for further distribution.

SB 829 (Wiener D) Cannabis: donations. (Vetoed by California Governor on 9/30/2018)

This bill would similarly authorize those specified licensees to provide free cannabis or cannabis products to a medical cannabis patient if specified requirements are met, including that the cannabis or cannabis products otherwise meet specified requirements of MAUCRSA. The bill would authorize those specified licensees to contract with an individual or organization to coordinate the provision of free medicinal cannabis and medicinal cannabis products on the retailer’s premises.

SB 872 (Committee on Budget and Fiscal Review) Local government: taxation: prohibition: groceries. (Approved by California Governor 7/9/2018 and Chaptered by California Secretary of State 7/9/2018)

The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose a local sales and use tax in accordance with that law for tangible personal property sold at retail in the county or city, or purchased for storage, use, or other consumption in the county or city. That law requires the county or city to contract with the California Department of Tax and Fee Administration for the administration of the taxes and requires the department to transmit those taxes to the city or county. AB 1838 of the 2017–18 Regular Session, if enacted, on and after the effective date of that measure and until January 1, 2031, would prohibit the imposition, increase, levy and collection, or enforcement by a local agency of any tax, fee, or other assessment on groceries, except as provided. That bill would allow a local agency to continue to levy and collect, enforce, or reauthorize any tax, fee, or other assessment on groceries imposed, extended, or increased on or before January 1, 2018. That bill would make inoperative on the effective date of that measure any tax, fee, or other assessment on groceries imposed by a local agency after January 1, 2018.

This bill would exclude cannabis from the definition of groceries, as defined for purposes of AB 1838 of the 2017–18 Regular Session, if that bill is enacted and becomes effective.

SB 1127 (Hill D) Pupil health: administration of medicinal cannabis: schoolsites. (Vetoed by California Governor on 9/28/2018)

Existing law authorizes a school nurse or other designated school personnel to assist any pupil who is required to take, during the regular schoolday, medication prescribed for him or her by a physician and surgeon or ordered for him or her by a physician assistant, if the school district receives specified written statements from the physician and surgeon or physician assistant and from the parent, foster parent, or guardian of the pupil.

This bill would enact Jojo’s Act, which would authorize the governing board of a school district, a county board of education, or the governing body of a charter school maintaining kindergarten or any of grades 1 to 12, inclusive, to adopt, at a regularly scheduled meeting of the governing board or body, a policy, as provided, that allows a parent or guardian of a pupil to possess and administer to the pupil who is a qualified patient entitled to the protections of the Compassionate Use Act of 1996 medicinal cannabis, excluding in a smokeable or vapeable form, at a schoolsite. The bill would authorize the policy to be rescinded for any reason, as provided. The bill would provide that pupil records collected for the purpose of administration of medicinal cannabis are confidential, shall be used only for the purpose of administration of medicinal cannabis, shall not be open to the public for inspection, and shall not be disclosed for any reason, except as required by a state or federal court order.

SB 1294 (Bradford D) Cannabis: state and local equity programs. (Approved by California Governor 9/26/2018 and Chaptered by California Secretary of State 9/26/2018)

This bill would enact the California Cannabis Equity Act of 2018. The bill would authorize the Bureau of Cannabis Control, upon request by a local jurisdiction, to provide technical assistance, as defined, to a local equity program that helps local equity applicants or local equity licensees. The bill would, upon appropriation of funds by the Legislature, authorize an eligible local jurisdiction to submit an application to the bureau for a grant to assist local equity applicants and local equity licensees through that local jurisdiction’s equity program. The bill would require the bureau to review an application, and to grant funding to an eligible local jurisdiction, based on specified factors. The bill would require an eligible local jurisdiction that receives grant funds pursuant to these provisions to use the grant funds to assist local equity licensees in that local jurisdiction to gain entry to, and to successfully operate in, the state’s regulated cannabis marketplace. The bill would require an eligible local jurisdiction that receives grant funds pursuant to these provisions to, on or before a specified date, submit an annual report to the bureau that contains specified information on the use of the grant funds and specified demographic data.

SB 1409 (Wilk R) Industrial hemp. (Approved by California Governor 9/30/2018 and Chaptered by California Secretary of State 9/30/2018)

Existing law governs the growth of industrial hemp and imposes specified procedures and requirements on a person who grows industrial hemp, not including an established agricultural research institution, as defined. Existing law defines “industrial hemp” to be the same as that term is defined in the California Uniform Controlled Substances Act, which defines that term as a fiber or oilseed crop, or both, that is limited to types of the plant Cannabis sativa L. with a tetrahydrocannabinol (THC) content that does not exceed a specified THC limit, the plant’s seeds or resin, and specified substances and mixtures of the plant or its seeds or resin. Existing law requires that industrial hemp only be grown if it is on the list of approved hemp seed cultivars, which includes industrial hemp seed cultivars certified on or before January 1, 2013, by specific organizations, except as specified. Existing law requires industrial hemp to be grown only as a densely planted fiber or oilseed crop, or both. Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), added by Proposition 64 at the November 8, 2016, statewide general election, requires this crop to be grown in minimum acreages of 1/10 of an acre, except as specified. Existing law prohibits the ornamental and clandestine cultivation of industrial hemp plants, and, except under specified circumstances, pruning and tending of individual industrial hemp plants and culling of industrial hemp. Existing law requires sampling and laboratory testing of industrial hemp, as provided, to determine compliance with THC limits and destruction of industrial hemp that exceeds those limits. Existing law establishes timeframes for sampling of industrial hemp and, if applicable, destruction of industrial hemp that exceeds THC limits.

This bill would delete the requirement that industrial hemp seed cultivars be certified on or before January 1, 2013, in order to be included on the list of approved hemp seed cultivars. The bill would authorize industrial hemp to be produced by clonal propagation, as provided, of industrial hemp that is on the list of approved seed cultivars. The bill would also delete the prohibitions on ornamental cultivation of industrial hemp plants, pruning and tending of individual industrial hemp plants, and culling of industrial hemp. By removing limitations on the types of industrial hemp seed cultivars that may be cultivated, the means by which industrial hemp may be produced, and the purposes for which industrial hemp may be cultivated, with payment of a registration or renewal fee, the bill would establish new sources of revenue for a continuously appropriated fund, thereby making an appropriation. The bill would authorize a county agricultural commissioner or a county, as appropriate, to retain the amount of a registration or renewal fee necessary to reimburse direct costs incurred by the commissioner in the collection of the fee. The bill would also authorize the board of supervisors of a county to establish a registration or renewal fee to cover other costs of the county agricultural commissioner and the county of implementing, administering, and enforcing these provisions, as provided.

SB 1451 (Fuller R) Licenses: sale to underaged persons: penalties. (Vetoed by California Governor on 9/10/2018)

Under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), a person may be issued a retailer license and a microbusiness license for commercial adult-use, designated an A-type license, and for commercial medicinal cannabis activity, designated an M-type license. That act also requires a licensee to obtain a separate license for each location where it engages in commercial cannabis activity.

This bill would impose specific penalties on any licensee who holds an A-type or M-type retailer license or A-type or M-type microbusiness license who sells, furnishes, or causes to be sold or furnished cannabis or cannabis products to any person under the legal age on the licensed retail premises or who permits any person under the legal age to consume cannabis or cannabis products on the licensed retail premises, by subjecting the licensee to a suspension or revocation of its A-type and M-type retailer license and A-type and M-type microbusiness license issued for that retail premises where the violation occurred, as provided. The bill would not preclude any additional disciplinary actions to be taken by a licensing authority against the licensee for these acts or omissions.

SB 1459 (Cannella R) Cannabis: provisional license. (Approved by California Governor 9/27/2018 and Chaptered by California Secretary of State 9/27/2018)

This bill, until January 1, 2020, would authorize a licensing authority to issue a provisional license if specified conditions are met. By requiring additional applications to be signed under penalty of perjury, the bill would expand the scope of the crime of perjury, and would thereby impose a state-mandated local program. The bill would require the provisional annual license to be valid for 12 months and would prohibit the license from being renewed. The bill would require the provisions of MAUCRSA to apply to a provisional license in the same manner as to an annual license, except as specified. The bill would exempt the issuance of a provisional license from the California Environmental Quality Act. The bill would prohibit the refusal by the licensing authority to issue a provisional license or revocation or suspension by the licensing authority of a provisional license from entitling the applicant or licensee to a hearing or an appeal of the decision.

SJR 5 (Stone R) Federal rescheduling of marijuana from a Schedule I drug. (Chaptered by California Secretary of State 9/15/2017)

This measure would request that the Congress of the United States pass a law to reschedule marijuana or cannabis and its derivatives from a Schedule I drug to an alternative schedule and that the President of the United States sign such legislation.
CALIFORNIA CANNABIS BILLS THAT FAILED IN THE STATE LEGISLATURE:

There were a number of California cannabis bills that failed in the California State Legislature in 2018. Significant cannabis bills that failed include: AB 924 Indian tribes and commercial cannabis activity; AB 1733 cannabis transportation enforcement and the Department of the California Highway Patrol; AB 2069 medicinal cannabis employment discrimination; AB 2520 California Illegal Cannabis Task Force; AB 2525 conservation of public lands, unlawful cannabis cultivation and mitigation and enforcement; AB 2555 cannabis; AB 2641 cannabis licenses and onsite sales and temporary events; AB 2810 cannabis cultivation licenses and the Sun-Grown Cannabis Commission and Indoor-Grown Cannabis Commission; AB 2866 cannabis regulation; AB 2929 cannabis; AB 3157 taxation cannabis; AB 3208 cities ordinances and violations; SB 118 cannabis licenses and criminal records; SB 930 financial institutions and cannabis; SB 1273 vehicles and marijuana; SB 1302 cannabis and local jurisdiction prohibitions on delivery; SB 1315 cannabis packaging and labeling; SB 1318 cannabis or cannabis products.

AB 924 (Bonta D) Indian tribes: commercial cannabis activity. (8/17/2018 Failed Deadline pursuant to Rule 61(b)(15))

This bill would establish the Cannabis Regulatory Enforcement Act for Tribal Entities or the “CREATE Act” and would require a tribe entering into a tribal cannabis regulatory agreement with the Governor, as ratified by the Legislature, to establish a tribal cannabis regulatory commission or agency pursuant to the tribe’s established governmental process.

AB 1733 (Lackey R) Cannabis transportation: enforcement: Department of the California Highway Patrol. (1/31/2018 Died pursuant to Art. IV, Sec. 10(c) of the Constitution)

Existing law establishes the Department of the California Highway Patrol to enforce all laws regulating the operation of vehicles and the use of the highways. Existing law makes it a crime to transport, import into the state, sell, furnish, administer, or give away, or offer to transport, import into the state, sell, furnish, administer, or give away, or attempt to import into the state or transport cannabis, except as otherwise provided by law. Existing law also prohibits using a minor to transport cannabis or driving while under the influence of cannabis.

This bill would make the California Highway Patrol the lead agency for the enforcement of offenses involving the transportation of cannabis across local jurisdictions and offenses involving interstate commerce.

AB 2069 (Bonta D) Medicinal cannabis: employment discrimination. (5/25/2018 Failed Deadline pursuant to Rule 61(b)(8))

Existing law, the California Fair Employment and Housing Act, protects and safeguards the right and opportunity of all persons to seek, obtain, and hold employment without discrimination, abridgment, or harassment on account of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. The act prohibits various forms of employment discrimination, including discharging or refusing to hire or to select for training programs on a prohibited basis.

This bill would provide that, when used to treat a known physical or mental disability or known medical condition, the medical use of cannabis by a qualified patient or person with an identification card is subject to reasonable accommodation. The bill would provide that it does not prohibit an employer from refusing to hire an individual or discharging an employee who is a qualified or person with an identification card, if hiring or failing to discharge an employee would cause the employer to lose a monetary or licensing-related benefit under federal law. The bill would also provide that it does not prohibit an employer from terminating the employment of, or taking corrective action against, an employee who is impaired on the property or premises of the place of employment or during the hours of employment because of the use of cannabis.

AB 2513 ((Jones-Sawyer D) Controlled substances: narcotics registry. (5/25/2018 Failed Deadline pursuant to Rule 61(b)(8))

Existing law requires a person who is convicted in this state, or in another state under certain circumstances, of specified offenses involving controlled substances to register with the chief of police of the city in which he or she resides, or the sheriff of the county if he or she resides in an unincorporated area, as specified. The registration consists of a statement in writing signed by the person, giving information required by the Department of Justice, and the fingerprints and photograph of the person. Existing law requires, within 3 days after registering, the law enforcement agency to forward the statement, fingerprints, and photograph to the Department of Justice. A person who knowingly violates the registration requirement and related requirements is guilty of a misdemeanor.

This bill would delete that registration requirement and make conforming changes. The bill would require that the statements, photographs, and fingerprints obtained pursuant to these provisions as they read on January 1, 2018, be destroyed not later than January 1, 2021.

Existing law also contains reporting requirements upon the arrest of a school employee for specified controlled substance offenses. This bill would make those provisions applicable upon the conviction, rather than the arrest, of the employee.

AB 2520 (Cooper D) California Illegal Cannabis Task Force. (5/25/2018 Failed Deadline pursuant to Rule 61(b)(8))

This bill would create the California Illegal Cannabis Task Force, which would, among other things, analyze existing statutes to determine if they adequately address illegal cannabis cultivation, manufacturing, distribution, sales, and diversion of cannabis to other states, and recommend necessary revisions or new provisions. The bill would specify the membership of the task force, and would require members to be selected and to meet no later than March 1, 2019. The bill would require the task force to conduct a study, as specified, and report its findings to the Legislature on or before December 31, 2019. The bill would repeal these provisions as of January 1, 2022.

AB 2525 (Wood D) Conservation of public lands: unlawful cannabis cultivation: mitigation and enforcement. (5/25/2018 Failed Deadline pursuant to Rule 61(b)(8))

Existing law establishes the Department of Fish and Wildlife in the Natural Resources Agency and makes the Department of Fish and Wildlife the trustee for fish and wildlife resources of the state. Existing law prohibits a person or other entity from diverting or obstructing the natural flow of any river, stream, or lake, without first notifying the department and, if necessary, entering into a lake or streambed alteration agreement. Existing law requires the department to establish a watershed enforcement program to facilitate the investigation, enforcement, and prosecution of unlawful water diversions and other violations of the Fish and Game Code associated with cannabis cultivation. Existing law requires the department, in coordination with the State Water Resources Control Board and the Department of Food and Agriculture, to establish a multiagency task force, known as the Watershed Enforcement Team, to address the environmental impacts of cannabis cultivation.

This bill would require the Department of Fish and Wildlife to collaborate with the Department of Parks and Recreation to conduct an annual survey of all public lands, as defined, and all surface water sources on public lands, for unlawful cannabis cultivation activity; to compile a database of unlawful cannabis cultivation activity occurring on public lands; and to ensure that this activity is eradicated by the Watershed Enforcement Team or other appropriate authority.

AB 2555 (Cooley D) Cannabis. (8/31/2018 Failed Deadline pursuant to Rule 61(b)(18))

This bill would define “immature cannabis plant” for purposes of AUMA. The bill would provide for a unique identifier that references the lot of plants to which an immature plant belongs, instead of requiring a unique identifier for each immature plant, as specified.

AB 2641 (Wood D) Cannabis: licenses: onsite sales: temporary events. (8/31/2018 Failed Deadline pursuant to Rule 61(b)(18))

The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) gives the Bureau of Cannabis Control in the Department of Consumer Affairs the power, duty, purpose, responsibility, and jurisdiction to regulate commercial cannabis activity in the state as provided by the act. MAUCRSA does not supersede or limit the authority of a local jurisdiction to adopt and enforce local ordinances to regulate commercial cannabis businesses within that local jurisdiction. MAUCRSA authorizes an applicant to apply to all applicable state licensing authorities to obtain a state license to engage in commercial adult-use cannabis activity, and requires the applicant to obtain a separate license for each location where the applicant engages in commercial cannabis activity.

This bill would specifically authorize the bureau to issue such a state temporary event license to a licensee under MAUCRSA that meets prescribed requirements, including having a valid license, permit, or other authorization, issued by a local jurisdiction that enables the licensee to conduct commercial cannabis activity. The bill would specifically prohibit the bureau from issuing a state temporary cannabis event license for a particular event unless the local jurisdiction in which the event will be held has approved the event.

AB 2810 (Levine D) Cannabis: cultivation licenses: Sun-Grown Cannabis Commission and Indoor-Grown Cannabis Commission. (4/27/2018 Failed Deadline pursuant to Rule 61(b)(5))

This bill would additionally authorize, as a Type IC, or “specialty cottage,” license, a licensee to engage in cultivation of 2,500 square feet or less of total canopy size for outdoor cultivation.

AB 2866 (Cooper D) Cannabis regulation. (8/31/2018 Failed Deadline pursuant to Rule 61(b)(18))

Existing law, as part of AUMA, requires all advertisements and marketing relating to the sale of cannabis or cannabis products, as specified, to accurately and legibly identify the licensee responsible for its content, by adding, at a minimum, the licensee’s license number.

This bill would make a violation of that requirement by a cannabis-related business licensee, or by a licensed or unlicensed cannabis-related business using a fictitious license number, subject to a civil penalty of $10,000 per incident, but would require a business to be provided 48 hours to correct its first violation prior to being subject to the civil penalty. The bill would continuously appropriate the funds from these civil penalties to the Board of State and Community Corrections to provide grants to cities, counties, and cities and counties to fund cannabis control officers, as provided, thereby making an appropriation. The bill would declare that these provisions further the purposes and intent of AUMA.

AB 2929 (Quirk D) Cannabis. (8/31/2018 Failed Deadline pursuant to Rule 61(b)(18))

MAUCRSA requires that, with the exception of testing laboratory licenses, which can be used to test cannabis products regardless of whether for commercial adult-use or commercial medicinal cannabis, all licenses issued under MAUCRSA bear a clear designation indicating whether the license is for adult-use activity or medicinal activity, as specified.

This bill would allow a licensee to conduct any commercial cannabis activity allowed under its license with any other licensee, as specified, and would find and declare that this furthers the purpose of the initiative measure.

AB 3157 (Lackey R) Taxation: cannabis. (8/31/2018 Failed Deadline pursuant to Rule 61(b)(18))

The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, and additionally amended by statute, imposes an excise tax commencing January 1, 2018, on the purchase of cannabis and cannabis products, as defined, at the rate of 15% of the average market price of any retail sale by a cannabis retailer. Commencing January 1, 2018, AUMA 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. Existing law requires the revenues from those taxes to be deposited into the California Cannabis Tax Fund and to be continuously appropriated for specified purposes pursuant to a specified schedule. AUMA authorizes the Legislature to amend its provisions with a 2/3 vote of both houses to further its purposes and intent.

This bill would reduce that excise tax rate to 11% on and after the operative date of this bill until June 1, 2021, at which time the excise tax rate would revert back to 15%. This bill would suspend the imposition of the cultivation tax on and after the operative date of this bill until June 1, 2021.

AB 3208 (Cooper D) Cities: ordinances: violations. (5/11/2018 Failed Deadline pursuant to Rule 61(b)(6))

Existing law authorizes a city legislative body to impose fines, penalties, and forfeitures for violations of city ordinances.

This bill would, until January 1, 2024, specifically authorize the City of Elk Grove to adopt an ordinance authorizing the city to confiscate and seek an order of civil forfeiture of real or personal property for violations of the city’s ordinances. The bill would require the ordinance to provide the owner of the property adequate notice and opportunity to challenge the forfeiture and to ensure that the property seized is reasonable in relation to the ordinance violation. This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Elk Grove including that the City of Elk Grove and surrounding areas are experiencing a proliferation of illegal marijuana grow houses which pose a significant risk and immediate threat to the health and safety of the community. This bill permits the City of Elk Grove to circumvent state forfeiture laws and their due process protections, and establish its own civil forfeiture procedures for violations of any city ordinance.

It is recognized that Elk Grove is not going through anything all that different from other cities but Elk Grove is special. No one is quite sure why Elk Grove is special, but there have been assurances.

SB 118 (Committee on Budget and Fiscal Review) Cannabis: licenses: criminal records. (8/31/2018 Failed Deadline pursuant to Rule 61(b)(18))

The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) generally divides responsibility for the state licensure and regulation of commercial cannabis activity among state licensing authorities depending on the type of license classification sought by the applicant. MAUCRSA authorizes licensing authorities to create new state licenses relating to commercial cannabis activity that the licensing authorities deem necessary to effectuate their duties under MAUCRSA by adopting regulations to that effect. MAUCRSA requires an applicant to electronically submit fingerprint images to the Department of Justice for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and arrests. Existing law requires the Department of Justice to provide a response to the licensing authority, as provided.

This bill would specify that the Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health may obtain and receive, at their discretion, criminal history information from the Department of Justice and the United States Federal Bureau of Investigation for an applicant for any state license under MAUCRSA, including any license established by a licensing authority by regulation pursuant to the authority described above. The bill would require the Department of Justice to forward all requests for federal criminal history record information to the Federal Bureau of Investigation for these purposes and to review the information and compile and disseminate a response to the licensing authority.

This bill would appropriate the sum of $10,700,000 in augmentation of Item 8570-001-3288 of Section 2.00 of the Budget Act of 2017, from the Cannabis Control Fund to the Department of Food and Agriculture for state costs in the 2017–18 fiscal year to supply proprietary plant and package radio-frequency identification tags, to be used by licensees to track cannabis and cannabis-related products, as specified. AUMA authorizes the Legislature to amend by a majority vote certain provisions of the act to implement specified substantive provisions, provided that the amendments are consistent with and further the purposes and intent of the act. This bill would declare that its provisions implement specified substantive provisions of AUMA. This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

SB 930 (Hertzberg D) Financial institutions: cannabis. (8/17/2018 Failed Deadline pursuant to Rule 61(b)(15))

Existing law, the Financial Institutions Law, regulates the activities of various financial entities, including commercial banks, industrial banks, trust companies, credit unions, and savings and loan associations. The Banking Law defines and regulates state banks and commits the enforcement of banking laws to the Commissioner of Business Oversight. The California Credit Union Law provides for the licensure and regulation of credit unions by the Commissioner of Business Oversight and makes a willful violation of that law a crime.

This bill would create the Cannabis Limited Charter Banking and Credit Union Law, to be administered by the Commissioner of Business Oversight and the Department of Business Oversight. The bill would create the Cannabis Limited Charter Bank and Credit Union Advisory Board and specify its composition, to include the Treasurer, the Controller, and the Chief of the Bureau of Cannabis Control, and commit to it the general responsibility for ensuring that this law functions in a safe and efficient way. The bill would prescribe the powers and duties of the board, including reviewing department enforcement reports, holding meetings that would be open to public comment, and issuing its own recommendations, which would be submitted to the Legislature and the Governor. The board would also be required to provide guidance on specified investment activities.

SB 1273 (Hill D) Vehicles: marijuana. (5/25/2018 Failed Deadline pursuant to Rule 61(b)(8))

Existing law prohibits a person who is under the influence of alcohol, drugs, or the combined influence of alcohol or drugs from driving a vehicle. Existing law also prohibits a person from driving under the influence and proximately causing bodily harm to another person, as specified. Existing law defines a drug, for purposes of these provisions as any substance, or combination of substances, other than alcohol, which can affect the nervous system, brain, or muscles of a person in a manner that impairs the ability to safely drive a vehicle.

This bill would recast these provisions to make driving under the influence of several classifications of drugs each a separate offense, with no changes to the penalty. This bill would make it an infraction for a person under 21 years of age who has any detectable quantity of delta-9-tetrahydrocannabinol in his or her body to drive a vehicle.

SB 1302 (Lara D) Cannabis: local jurisdiction: prohibitions on delivery. (8/31/2018 Failed Deadline pursuant to Rule 61(b)(18))

The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) authorizes a licensee who obtains a retailer, microbusiness, or a specified type of nonprofit to deliver cannabis or cannabis products, and imposes requirements on the delivery of cannabis or cannabis products. MAUCRSA prohibits a local jurisdiction from preventing the delivery of cannabis or cannabis products on public roads by a licensee who is acting in compliance with MAUCRSA as well as any local law adopted pursuant to MAUCRSA. MAUCRSA generally authorizes a local jurisdiction to adopt and enforce local ordinances to regulate licensed businesses located within the local jurisdiction.

This bill would prohibit a local government from adopting or enforcing any ordinance that would prohibit a licensee from delivering cannabis within or outside of the jurisdictional boundaries of the local jurisdiction.

SB 1315 (Nielsen R) Cannabis: packaging and labeling. (8/31/2018 Failed Deadline pursuant to Rule 61(b)(18))

Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), which includes the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), enacted by the voters at the November 8, 2016, statewide general election, provides for the licensure and regulation of commercial cannabis activity. Existing law places restrictions on the packaging and labeling of cannabis and cannabis products, including prohibiting the packaging and labeling from being attractive to children and prescribing statements to be printed on the packaging.

This bill would make technical, nonsubstantive changes to these provisions.

SB 1318 (Mendoza D) Cannabis or cannabis products. (8/31/2018 Failed Deadline pursuant to Rule 61(b)(18))

The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA) authorizes the Legislature to amend, by a majority vote, certain provisions of the act to implement specified substantive provisions, provided that the amendments are consistent with and further the purposes and intent of the act. 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.

This bill would make nonsubstantive changes to these provisions.
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