SB 1326

Bill Subjects

Abstract

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, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) , among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities. MAUCRSA specifies that its provisions shall not be construed to authorize or permit a licensee to transport or distribute, or cause to be transported or distributed, cannabis or cannabis products outside the state, unless authorized by federal law. This bill would make an exception to the above-described prohibition and would authorize the Governor to enter into an agreement with another state or states authorizing medicinal or adult-use commercial cannabis activity, or both, between foreign licensees, who are licensed under the laws of the other state or states, and entities operating with a state license pursuant to MAUCRSA, provided that the commercial cannabis activities are lawful and subject to licensure under the laws of the other state or states. The bill would make foreign licensees subject to the jurisdiction of this state for purposes of actions taken for violations of state commercial cannabis laws and regulations. The bill would prohibit an entity with a commercial cannabis license issued under the laws of another state from engaging in commercial cannabis activity within the boundaries of this state without a state license, or within a local jurisdiction without a license, permit, or other authorization issued by the local jurisdiction. The bill would require the agreement to require that the other state or states impose requirements on its licensees with regard to cannabis and cannabis products to be sold or otherwise distributed within this state that meet or exceed the requirements applicable to MAUCRSA licensees, as specified. The bill would require the agreement to include provisions to address public health and welfare emergencies concerning cannabis or cannabis products that are sold or intended for sale within this state and provisions related to the investigation of licensees and of instances of alleged noncompliance with the commercial cannabis regulatory programs, as specified. The bill would require the agreement to include provisions for collection of applicable taxes. The bill would specify that the agreement does not constitute a project for purposes of the California Environmental Quality Act. The bill would prohibit an agreement, as defined, from taking effect unless, among other things, federal law is amended to allow for, or the United States Department of Justice issues an opinion or memorandum allowing or tolerating, interstate transfer of cannabis or cannabis products between authorized commercial cannabis businesses. The bill would require the department to notify the Governor and the appropriate policy committees of the Legislature upon the occurrence of an event that would allow an agreement to take effect and to post the notification on its internet website. Existing law, the Administrative Procedure Act, governs, among other things, the procedures for the adoption, amendment, or repeal of regulations by state agencies and for the review of those regulatory actions by the Office of Administrative Law. This bill would exempt the Governor from the rulemaking procedures and requirements of the Administrative Procedure Act when entering into interstate cannabis agreements or amending interstate cannabis agreements if the Governor submits the proposed agreement or amendment to the Joint Legislative Budget Committee for review and comment, as specified, and posts the proposed agreement or amendment on the department's internet website for public comment for 30 days. Existing law requires the department to prepare and disseminate, as specified, an annual report relating to the department's activities, including, among other things, the amount of funds allocated and spent by the department for cannabis licensing, enforcement, and administration, and the number of state licenses issued, renewed, denied, suspended, and revoked. This bill would require the department to include in that annual report a list of interstate cannabis agreements entered into, including information regarding the terms and conditions of each agreement, the activities undertaken by state agencies to implement the agreement, and the effects of the agreement on California's cannabis industry. This bill would provide that its provisions are severable. AUMA authorizes the Legislature to amend the act to further the purposes and intent of the act with a 23 vote of the membership of both houses of the Legislature. This bill would declare that its provisions further specified purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.