SB 398

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, including retail commercial cannabis activity. 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, and 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 reserves to a local jurisdiction, defined as a city, city and county, or county, specified powers regarding commercial cannabis activity, including adopting and enforcing local ordinances regulating commercial cannabis activity or prohibiting that activity. This bill would authorize a local jurisdiction to enter into a cannabis licensing agreement with the bureau to require the bureau to administer local commercial cannabis licensing, permitting, or other regulatory activities on behalf of the local jurisdiction. The bill would require the agreement to meet specified conditions, including that the agreement expires no less than 5 years from its operative date, and would require the local jurisdiction designate applicable zoning areas for commercial cannabis activity. This bill would require the bureau to provide notice to local licensees or permitholders of the transition from local administration to state administration, as provided, and would require the bureau to begin accepting new applications for local cannabis licenses within 15 days of entering into a cannabis licensing agreement. The bill would additionally authorize the bureau to impose penalties, not to exceed unspecified amounts, on a local jurisdiction for violation of a cannabis licensing agreement, and would require the bureau to deposit any penalties collected into the Cannabis Fines and Penalties Account. This bill, prior to expiration of the agreement, would require the local jurisdiction to either establish its own licensing and regulatory framework for commercial cannabis activity, or upon consent of the bureau, renew the agreement by ordinance or resolution. The bill would impose unspecified monetary penalties if the local jurisdiction or the bureau terminate the agreement prior to expiration. By requiring the bureau to pay a penalty to a local jurisdiction from the Cannabis Fines and Penalties Account, the bill would make an appropriation. Existing law places requirements on applicants for state cannabis licenses, including that an applicant with 20 or more employees provide a notarized statement that the applicant will enter into, or demonstrate that it has already entered into, and abide by the terms of a labor peace agreement. Existing law requires an applicant with less than 20 employees that has not yet entered into a labor peace agreement to provide a notarized statement as part of its application indicating that the applicant will enter into and abide by the terms of a labor peace agreement within 60 days of employing its 20th employee. Existing law requires an applicant to provide a statement, signed by the applicant under penalty of perjury, that the information is complete, true, and accurate. This bill, beginning January 1, 2022, instead would require that an applicant with 10 or more employees demonstrate that it has already entered into, and abides by the terms of, a labor peace agreement, and will maintain the labor peace agreement for the duration of the license. The bill, beginning January 1, 2022, would require an applicant with less than 10 employees that has not yet entered into a labor peace agreement to provide a notarized statement as part of its application indicating that the applicant will enter into, and abide by the terms of, a labor peace agreement within 60 days of employing its 10th employee and will maintain the labor peace agreement for the duration of the license. By expanding the crime of perjury, this bill would impose a state-mandated local program. Existing law, the California Cannabis Equity Act of 2018, requires the Bureau of Cannabis Control in the Department of Consumer Affairs to administer a grant program to assist with the development of a local jurisdiction's local equity program or to assist applicants and licensees in a local jurisdiction's equity program, and authorizes the bureau to provide technical assistance to the local equity program. This bill would require the bureau to establish a stakeholder oversight committee to ensure fair and equitable distribution of grants authorized under the act and to develop model guidelines for local equity programs. Existing law, the Compassionate Use Act of 1996, an initiative measure, enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election, prohibits prosecution for the possession or cultivation of marijuana of a patient or a patient's primary caregiver who possesses or cultivates marijuana for the personal medical purposes of the patient upon the written or oral recommendation or approval of a physician. Existing law, the Medical Marijuana Program Act, establishes a voluntary identification card program administered by the State Department of Public Health to exempt qualified patients who hold an identification card issued pursuant to the program, and the caregivers of those persons, from certain state criminal sanctions related to the possession, cultivation, transportation, processing, or use of limited amounts of marijuana, as specified. This bill would require the department to adopt regulations to ensure the affordable and timely access to identification cards issued under the act. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. AUMA authorizes legislative amendment of its provisions with a 23 vote of both houses, without submission to the voters, to further its purposes and intent. This bill would declare that its provisions further the purposes and intent of AUMA.