Bill Text: CA AB2385 | 2015-2016 | Regular Session | Enrolled
Bill Title: Medical Cannabis Regulation and Safety Act: state licenses: Measure D.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Vetoed) 2016-09-29 - Vetoed by Governor. [AB2385 Detail]
Download: California-2015-AB2385-Enrolled.html
BILL NUMBER: AB 2385 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 23, 2016
PASSED THE ASSEMBLY AUGUST 29, 2016
AMENDED IN SENATE AUGUST 15, 2016
AMENDED IN SENATE JUNE 22, 2016
AMENDED IN ASSEMBLY MAY 12, 2016
AMENDED IN ASSEMBLY APRIL 5, 2016
AMENDED IN ASSEMBLY MARCH 18, 2016
INTRODUCED BY Assembly Member Jones-Sawyer
FEBRUARY 18, 2016
An act to amend Section 19320 of the Business and Professions
Code, relating to marijuana.
LEGISLATIVE COUNSEL'S DIGEST
AB 2385, Jones-Sawyer. Medical Cannabis Regulation and Safety Act:
state licenses: Measure D.
Existing law, the Medical Cannabis Regulation and Safety Act
(MCRSA), provides for the licensure and regulation of medical
cannabis and requires all commercial cannabis activity to be
conducted between licensees. Existing law establishes the Bureau of
Medical Cannabis Regulation within the Department of Consumer
Affairs. Existing law authorizes licensing authorities to only issue
state licenses to qualified applicants. Existing law, upon the date
of implementation of regulations by the licensing authority,
prohibits a person from engaging in commercial cannabis activity
without possessing both a state license and a local permit, license,
or other authorization.
This bill would instead prohibit a person from engaging in
commercial cannabis activity without possessing both a state license
and a local permit, license, or other authorization one year after
the bureau posts a notice on its Internet Web site that the licensing
authorities have commenced issuing licenses. The bill would also,
with regard to commercial cannabis activity in the City of Los
Angeles, prohibit licensing authorities from requiring a local
license, permit, or other authorization, and would require the
issuance of a state license, if the authorities determine, as
specified, that the applicant meets all of the requirements of MCRSA
and specified criteria relating to Measure D, which was approved by
the voters of the City of Los Angeles at the May 21, 2013, general
election. The bill would further provide that a license issued
pursuant to the above provision has the same force and effect, and
confers the same benefits and responsibilities, as licenses issued to
licensees not subject to the above-described exception. The bill
would require the exemption to the local licensing requirement
provided by these provisions to be superseded by a subsequent
initiative authorizing the City of Los Angeles to issue local
licenses to medical marijuana businesses in the city if the voters of
Los Angeles approve the initiative prior to the time the State of
California begins issuing state licenses.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 19320 of the Business and Professions Code is
amended to read:
19320. (a) All commercial cannabis activity shall be conducted
between licensees, except as otherwise provided in this chapter.
(b) Licensing authorities administering this chapter may issue
state licenses only to qualified applicants engaging in commercial
cannabis activity pursuant to this chapter. One year after the Bureau
of Medical Cannabis Regulation posts a notice on its Internet Web
site that the licensing authorities have commenced issuing licenses,
no person shall engage in commercial cannabis activity without
possessing both a state license and a local permit, license, or other
authorization. An entity seeking licensure pursuant to this chapter
shall obtain a local license, permit, or other authorization prior to
applying for state licensure. State licensing entities shall not
issue a license to any applicant that is unable to provide
documentation confirming authorization to operate from the local
government in which the applicant proposes to operate. A licensee
shall not commence activity under the authority of a state license
until the applicant has obtained, in addition to the state license, a
local license, permit, or other authorization from the local
jurisdiction in which he or she proposes to operate, following the
requirements of the applicable local ordinance.
(c) Each licensee shall obtain a separate license for each
location where it engages in commercial medical cannabis activity.
However, transporters only need to obtain licenses for each physical
location where the licensee conducts business while not in transport
or where any equipment that is not currently transporting medical
cannabis or medical cannabis products permanently resides.
(d) Revocation of a local license, permit, or other required
authorization shall terminate the ability of a medical cannabis
business to operate within that local jurisdiction until the local
jurisdiction reinstates or reissues the local license, permit, or
other authorization. Local authorities shall notify the bureau upon
revocation of a local license, permit, or other authorization. The
bureau shall inform relevant licensing authorities.
(e) Revocation of a state license shall terminate the ability of a
medical cannabis licensee to operate within California until the
licensing authority reinstates or reissues the state license.
(f) In addition to the provisions of this chapter, local
jurisdictions retain the power to assess fees and taxes, as
applicable, on facilities that are licensed pursuant to this chapter
and the business activities of those licensees.
(g) Nothing in this chapter shall be construed to supersede or
limit state agencies, including the Department of Food and
Agriculture, the State Water Resources Control Board, and the
Department of Fish and Wildlife, from establishing fees to support
their medical cannabis regulatory programs.
(h) (1) Notwithstanding any other provision of this chapter:
(A) With regard to commercial cannabis activity in the City of Los
Angeles, the licensing authorities shall not require a local
license, permit, or other authorization and shall issue a state
license to engage in commercial cannabis activity only if the
licensing authorities determine the applicant satisfies all of the
requirements of this act and demonstrates that it meets all of the
following criteria established by Measure D, approved by the voters
of the City of Los Angeles at the May 21, 2013, general election:
(i) The applicant was operating in the City of Los Angeles as a
medical marijuana business by September 14, 2007, as evidenced by a
business tax registration certificate issued by the City of Los
Angeles on or before November 13, 2007.
(ii) The applicant registered with the City of Los Angeles city
clerk by November 13, 2007, in accordance with all of the
requirements of the City of Los Angeles' Interim Control Ordinance.
(iii) The applicant obtained a City of Los Angeles business tax
registration for taxation as a medical marijuana collective (class
L050).
(B) A state license issued pursuant to this paragraph for
commercial cannabis activity shall have the same force and effect and
shall confer the same benefits and responsibilities as licenses
issued to licensees outside the City of Los Angeles that obtain a
license, permit, or other authorization from the local jurisdiction.
(C) The determination of the licensing authority that an applicant
for a state license meets the criteria listed in subparagraph (A)
shall be based on a written or electronic notification provided to
the licensing authority by the City of Los Angeles that the applicant
has met the criteria. If the City of Los Angeles does not provide
written or electronic notification to the licensing authority
confirming an applicant has met the criteria, the licensing authority
shall not issue a state license.
(2) Notwithstanding paragraph (1), if the voters of Los Angeles
approve an initiative, after January 1, 2016, but prior to the time
that the State of California begins issuing state licenses, that
authorizes the City of Los Angeles to issue local licenses to medical
marijuana businesses in Los Angeles, the exemption for local
licensing in Los Angeles as set forth in paragraph (1) shall be
superseded by the local licensing requirements as enacted by that
initiative.
