Bill Text: CA SB1294 | 2017-2018 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Cannabis: state and local equity programs.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2018-09-26 - Chaptered by Secretary of State. Chapter 794, Statutes of 2018. [SB1294 Detail]

Download: California-2017-SB1294-Amended.html

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Amended  IN  Senate  April 19, 2018

Amended  IN  Senate  April 04, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill

No. 1294

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Introduced by Senator Bradford

February 16, 2018

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An act to amend Sections 26001 and 26051.5 of, to add Section 26051.7 to, and to add Chapter 23 (commencing with Section 26240) to Division 10 of, the Business and Professions Code, relating to professions and vocations.

LEGISLATIVE COUNSEL'S DIGEST

SB 1294, as amended, Bradford. Cannabis: state and local equity programs.

(1) 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 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.

This bill would enact the Cannabis Collaboration and Inclusion Act. The bill would require the Bureau of Cannabis Control to establish a cannabis equity task force and create, by January 1, 2020, and regularly update thereafter, a state equity plan based on, among other things, recommendations of the task force and areas disproportionately and negatively impacted by cannabis-related convictions. Beginning force. The bill would require, beginning January 1, 2019, the bureau to provide technical support to state and local equity applicants and assistance in securing business locations, and would require the Governor’s Office of Business and Economic Development, known as “GO-Biz,” to assist state and local equity applicants and licensees with gaining access to reduced interest and interest-free loans, and grants. The bill would require the bureau to annually report, beginning on January 1, 2020, to the Legislature on state and local equity programs, data on cannabis-related convictions, and areas negatively and disproportionately impacted by the criminalization of cannabis.

Beginning on January 1, 2019, 2020, the bill would require the bureau to establish a state equity program to ease the burdens associated with obtaining a state license and participating in the cannabis industry for state applicants and licensees who meet certain criteria. The state equity program would, among other things, provide technical support, fee waivers, reduced, or waived, licensing fees and other assistance to those applicants and licensees, would develop incentives to encourage state and local cannabis licensees to lease to, contract with, and hire equity applicants and licensees, as specified, and would assist local jurisdictions in implementing local equity programs. develop a model local equity ordinance.

The bill would require the bureau to annually report, beginning on January 1, 2020, to the Legislature on state and local equity programs, as specified.

(2) MAUCRSA requires an applicant for a cannabis license to provide specified documents with his or her application for licensure, including, among other things, a detailed diagram of the proposed premises wherein the license privileges will be exercised, showing, among other things, 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.

The bill would require require, beginning July 1, 2019, state cannabis applications to include a voluntary question relating to the demographics of the applicant, as provided.

The bill would also 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 2 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.

(3) The Control, Regulate and Tax Adult Use of Marijuana Act, an initiative measure, authorizes the Legislature to amend the act to further the purposes and intent of the act with a ²/₃ vote of the membership of both houses of the Legislature, except as provided.

This bill would declare that its provisions further the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.

Digest Key

Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 26001 of the Business and Professions Code is amended to read:

26001.

 For purposes of this division, the following definitions shall apply:

(a) “A-license” means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physician’s recommendation.

(b) “A-licensee” means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physician’s recommendation.

(c) “Applicant” means an owner applying for a state license pursuant to this division.

(d) “Batch” means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:

(1) Harvest batch. “Harvest batch” means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time.

(2) Manufactured cannabis batch. “Manufactured cannabis batch” means either of the following:

(A) An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.

(B) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.

(e) “Bureau” means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.

(f) “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, “cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code.

(g) “Cannabis accessories” has the same meaning as in Section 11018.2 of the Health and Safety Code.

(h) “Cannabis concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.

(i) “Cannabis products” has the same meaning as in Section 11018.1 of the Health and Safety Code.

(j) “Child resistant” means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.

(k) “Commercial cannabis activity” includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this division.

(l) “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

(m) “Cultivation site” means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.

(n) “Customer” means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physician’s recommendation, or a primary caregiver.

(o) “Day care center” has the same meaning as in Section 1596.76 of the Health and Safety Code.

(p) “Delivery” means the commercial transfer of cannabis or cannabis products to a customer. “Delivery” also includes the use by a retailer of any technology platform.

(q) “Director” means the Director of Consumer Affairs.

(r) “Distribution” means the procurement, sale, and transport of cannabis and cannabis products between licensees.

(s) “Dried flower” means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.

(t) “Edible cannabis product” means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.

(u) “Fund” means the Cannabis Control Fund established pursuant to Section 26210.

(v) “Kind” means applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.

(w) “Labeling” means any label or other written, printed, or graphic matter upon a cannabis product, upon its container or wrapper, or that accompanies any cannabis product.

(x) “Labor peace agreement” means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the state’s proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicant’s business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicant’s employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicant’s employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.

(y) “License” means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.

(z) “Licensee” means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.

(aa) “Licensing authority” means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.

(ab) “Live plants” means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.

(ac) “Local jurisdiction” means a city, county, or city and county.

(ad) “Lot” means a batch or a specifically identified portion of a batch.

(ae) “M-license” means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.

(af) “M-licensee” means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.

(ag) “Manufacture” means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.

(ah) “Manufacturer” means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.

(ai) “Medicinal cannabis” or “medicinal cannabis product” means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation.

(aj) “Nursery” means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.

(ak) “Operation” means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.

(al) “Owner” means any of the following:

(1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.

(2) The chief executive officer of a nonprofit or other entity.

(3) A member of the board of directors of a nonprofit.

(4) An individual who will be participating in the direction, control, or management of the person applying for a license.

(am) “Package” means any container or receptacle used for holding cannabis or cannabis products.

(an) “Person” includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular.

(ao) “Physician’s recommendation” means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code.

(ap) “Premises” means the contiguous area wherein the license privileges are, or will be, exercised, as diagrammed in the application for licensure and for which a separate license is required. Nothing in this subdivision shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, or hallway, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.

(aq) “Primary caregiver” has the same meaning as in Section 11362.7 of the Health and Safety Code.

(ar) “Purchaser” means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.

(as) “Sell,” “sale,” and “to sell” include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.

(at) “Testing laboratory” means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:

(1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.

(2) Licensed by the bureau.

(au) “Unique identifier” means an alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.

(av) “Youth center” has the same meaning as in Section 11353.1 of the Health and Safety Code.

SEC. 2.

 Section 26051.5 of the Business and Professions Code is amended to read:

26051.5.

 (a) An applicant for any type of state license issued pursuant to this division shall do all of the following:

(1) Require that each owner of the applicant electronically submit to the Department of Justice fingerprint images and related information required by 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, and information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her own recognizance, pending trial or appeal.

(A) Notwithstanding any other law, 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 this division, including any license established by a licensing authority by regulation pursuant to subdivision (b) of Section 26012.

(B) The Department of Justice shall forward to the United States Federal Bureau of Investigation all requests for federal criminal history record information received pursuant to this section. The Department of Justice shall review the information returned from the United States Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.

(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.

(D) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.

(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.

(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowner’s agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.

(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.

(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.

(5) (A) For an applicant with 20 or more employees, provide a 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.

(B) For the purposes of this paragraph, “employee” does not include a supervisor.

(C) For the purposes of this paragraph, “supervisor” means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.

(6) Provide the applicant’s valid seller’s permit number issued pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a seller’s permit.

(7) Provide any other information required by the licensing authority.

(8) For an applicant seeking a cultivation license, provide a statement declaring the applicant is an “agricultural employer,” as defined in the Alatorre-Zenovich-Dunlap-Berman Agricultural Labor Relations Act of 1975 (Part 3.5 (commencing with Section 1140) of Division 2 of the Labor Code), to the extent not prohibited by law.

(9) Pay all applicable fees required for licensure by the licensing authority.

(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements.

(b) An applicant shall also include in the application a detailed description of the applicant’s operating procedures for all of the following, as required by the licensing authority:

(1) Cultivation.

(2) Extraction and infusion methods.

(3) The transportation process.

(4) Inventory procedures.

(5) Quality control procedures.

(6) Security protocols.

(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, “cultivation” as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.

(c) (1) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.

(2) Nothing in paragraph (1) shall be construed to prohibit two or more licensed premises from sharing common use areas, such as a bathroom, breakroom, locker room, or hallway, wherein no license privileges will be exercised so long as all licensees comply with the requirements of this division.

(d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the licensing authority. For purposes of this subdivision, “persons with a financial interest” does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.

SEC. 3.

 Section 26051.7 is added to the Business and Professions Code, to read:

26051.7.

 (a) An Beginning July 1, 2019, application for a state license shall include a voluntary question relating to the demographics of the applicant, including, but not limited to, race, ethnicity, gender, sexual orientation, income level, veteran status, and prior convictions.

(b) The information collected in subdivision (a) shall be consolidated without individual identifying information. That consolidated information shall be made publicly available on the bureau’s Internet Web site.

SEC. 4.

 Chapter 23 (commencing with Section 26240) is added to Division 10 of the Business and Professions Code, to read:

CHAPTER  23. Cannabis Collaboration and Inclusion Act

26240.

 For purposes of this chapter, the following definitions apply:

(a) “Local equity applicant” and “local equity licensee” mean an applicant for a local cannabis license, or a local cannabis licensee, who meets the requirements of that jurisdiction’s local equity program.

(b) “Local equity program” means a program enacted or operated by a local jurisdiction that focuses on inclusion and support of individuals and communities in California’s cannabis industry who are linked to populations and neighborhoods that were negatively and disproportionately impacted by cannabis criminalization. Local equity programs include, but are not limited to, the following types of services:

(1) Small business support services offering technical assistance and mentoring to those persons from communities of color and economically disadvantaged communities.

(2) Assistance with expungement for drug-related convictions.

(3) Tiered fees for cannabis-related permits and licenses.

(c) “State equity applicant” and “state equity licensee” mean an applicant for a state cannabis license, or a state cannabis licensee, who owns at least 51 percent of the business seeking licensure and meets at least one of the following criteria, as determined by the bureau:

(1) Is demonstrably linked to populations and neighborhoods that were negatively and disproportionately impacted by cannabis-related criminalization.

(2) Was previously arrested or convicted of a cannabis-related charge.

(3) Resides in a ZIP Code or census track area with higher than average unemployment, crime, or child death rates.

(4) Attended a low performing K-12 school in or near a federal poverty area for at least four grade levels.

(5) Is economically disadvantaged with an income below 200 percent of the federal poverty level, as defined in Section 127400 of the Health and Safety Code, and a net worth below two hundred fifty thousand dollars ($250,000).

(6) Any other related criteria adopted by the bureau by regulation.

26242.

 (a) Beginning January 1, 2019, the bureau shall provide technical support to state and local equity applicants and licensees, including conducting training and informational sessions regarding state and local licensing processes and requirements and providing assistance in securing business locations.

(b) Beginning January 1, 2019, the Governor’s Office of Business and Economic Development (GO-Biz) shall assist state and local equity applicants and licensees with gaining access to reduced interest and interest-free loans and grants. Ten million dollars ($10,000,000) may be made available, upon appropriation by the Legislature, for the purpose of low-interest loans and grants to support small businesses within state and local equity programs.

26242.26244.

 (a) The bureau shall establish a cannabis equity task force to advise the bureau on the development and implementation of a state equity plan and program.

(b) The task force shall include individuals from communities harmed by drug prohibition and formerly incarcerated individuals.

(c) The task force shall provide the bureau with recommendations for a state equity plan, including the following:

(1)State equity applicant criteria for individuals residing in localities with no local equity program.

(2)Benefits that would program, including developing incentives for licensees to partner with state equity applicants and licensees and establishing programs to assist equity applicants and licensees, such as cannabis industry job training, assistance with technical and regulatory compliance, reduction in fees and taxes, and support to obtain loans or secure capital investments.

26244.

(a)On or before January 1, 2020, the bureau shall, in consultation with relevant stakeholder groups, create a state equity plan based on, but not limited to, all of the following:

(1)The annual report prepared by the bureau pursuant to Section 26248.

(2)Data on cannabis-related convictions and the local impacts of those convictions.

(3)Areas disproportionately and negatively impacted by cannabis-related convictions.

(4)The recommendations from the cannabis equity task force established under Section 26242.

(5)State equity applicant criteria for individuals residing in localities with no local equity program.

(b)The bureau shall update the state equity plan every three years.

26246.

 (a) Beginning January 1, 2019, 2020, the bureau shall establish establish, in consultation with the cannabis equity task force and other stakeholders, a state equity program to help ease the burdens associated with obtaining a license under this division and participating in the cannabis industry for state and local equity applicants and licensees. industry, including removing barriers to entry such as lack of business opportunities, generational wealth, access to capital, and expertise in the cannabis supply chain.

(b) The state equity program shall, at a minimum, do all of the following:

(1) Serve as a point of contact for state and local equity applicants and licensees and for local equity programs. licensees.

(2) Assist local jurisdictions in implementing local equity programs that create multiple pathways for impacted entrepreneurs, communities, and individuals to participate in the cannabis industry and remove barriers to entry into the cannabis industry, such as lack of business opportunities, generational wealth, access to capital, and expertise in the entire supply chain. Develop a model local equity ordinance. The bureau may contract with local entities to administer a local equity program.

(3)Provide technical support to state and local equity applicants and licensees and local equity programs, including conducting training and informational sessions regarding state and local licensing processes and requirements.

(4)

(3) Notwithstanding Section 26012, provide state equity applicants with a waiver of the fee fee, or portion of the fee, required to obtain a license under this division.

(5)Assist state and local equity applicants and licensees with gaining access to interest-free loans or grants.

(6)Provide a state equity applicant with a conditional license while the applicant’s license is being processed, to assist the applicant in securing a business location. Notwithstanding Section 26051.5, to qualify for a conditional license under this paragraph, the applicant shall have received a local cannabis permit or license, qualify for his or her locality’s equity program or meet the requirements of a state equity applicant, as defined in Section 26240, complete a business plan and a background check, and submit an application for a license under this division.

(7)Encourage state and local cannabis applicants and licensees to lease up to 25 percent of their commercial operating space or vacant land to state or local equity applicants or licensees at no charge for a period of two years, and with reduced rates thereafter, to contract with local or state equity applicants and licensees with respect to at least 51 percent of their cannabis business, to fill at least 51 percent of employment positions with previously incarcerated individuals, and to partner with investors that are demonstrably linked to populations and neighborhoods that were negatively and disproportionately impacted by cannabis criminalization.

(4) Develop incentives, tax or otherwise, to encourage state applicants and licensees to partner with state equity applicants and licensees, including through business leasing arrangements and agreements to fill employment positions with previously incarcerated individuals, and to partner with investors who are demonstrably linked to populations and neighborhoods that were negatively and disproportionately impacted by cannabis criminalization.

(c) The bureau may adjust shall evaluate, and may adjust, the state equity program every three years based on the recommendations of the cannabis equity task force established under Section 26242, the state equity plan created under Section 26244, and the report prepared by the bureau pursuant to Section 26248.

26248.

 (a) On or before January 1, 2020, and each year thereafter, the bureau shall submit a report to the Legislature regarding state and local equity programs.

(b) The report shall include, but is not limited to, the following information:

(1) The cities, counties, and cities and counties that have enacted local equity programs.

(2) The number of local equity applicants applying for and receiving licenses.

(3) The number of local state equity applicants applying for and receiving licenses.

(4) The number of equity employees working in the cannabis industry.

(5) Information collected pursuant to Section 26051.7.

(6) Data on cannabis-related convictions and the local impacts of those convictions.

(7) Areas negatively and disproportionately impacted by cannabis-related convictions.

(c) The bureau shall post the report required by this section on its Internet Web site.

(d) The report required by this section shall be submitted in compliance with Section 9795 of the Government Code, and shall apply notwithstanding Section 10231.5 of the Government Code.

SEC. 5.

 The Legislature finds and declares that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.