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  Assembly  August 06, 2018

Amended  IN  Assembly  June 20, 2018

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
(Coauthors: Assembly Members Jones-Sawyer and Bonta)

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

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 authorize the bureau, Bureau of Cannabis Control, upon request by a local equity applicant or local equity licensee, to provide technical assistance, as defined, to the local equity applicant or local equity licensee. 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 identified by that local jurisdiction. The bill would require the bureau to review an application so submitted, application, and to grant the application funding to the local jurisdiction, as provided, if the bureau determines the eligible local jurisdiction meets specified requirements. criteria. 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 identified by that 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, by a specified date, submit an annual report to the bureau that contains specified information on the use of the grant funds.

The bill would also require the Bureau of Cannabis Control to establish a cannabis equity task force to advise the bureau on the development and implementation of a state equity program. Beginning on January 1, 2020, the

This 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, to, among other things, provide reduced, or waived, state licensing fees and other assistance to those local equity applicants and licensees, would develop incentives to encourage state cannabis licensees to lease to, contract with, and hire equity applicants and licensees, as specified, and would and to develop a model local equity program and 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, data on cannabis-related convictions, and areas negatively and disproportionately impacted by the criminalization of cannabis.

(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 also require, beginning July 1, 2019, state and local cannabis license or permit applications to include a voluntary question relating to the demographics of the applicant, as provided. By requiring local jurisdictions to include specified questions in their cannabis license or permit application, this bill would impose a state-mandated local program.

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.

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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

(3)The

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: NOYES  

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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.

SECTION 1.

 This act shall be known and may be cited as The Cannabis Collaboration and Inclusion Act.

SEC. 2.

 The Legislature finds and declares the following:

(a) In 2016, California voters approved Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act (“AUMA”). In its statement of purpose and intent, AUMA calls for regulating cannabis in a way that “reduce[s] barriers to entry into the legal, regulated market.”

(b) Cannabis prohibition had a devastating impact on communities across California and across the United States. Persons convicted of a cannabis offense and their families suffer the long-term consequences of prohibition. These individuals have a more difficult time entering the newly created adult-use cannabis industry due, in part, to a lack of access to capital, business space, technical support, and regulatory compliance assistance.

(c) Under prohibition, the burdens of arrests, convictions, and long-term collateral consequences arising from a conviction fell disproportionately on black and Latino youth, adults, and their families.

(d) Offering technical support, regulatory compliance assistance, and assistance with securing the capital necessary to begin a business will further the stated intent of the AUMA by reducing barriers to licensure and employment in the regulated industry.

(e) Offering these supports will also aid the state in its goal of eliminating or reducing the illicit cannabis market by bringing more people into the legal marketplace.

(f) It is the intent of the Legislature in enacting this act to ensure that persons most harmed by cannabis criminalization and poverty be offered assistance to enter the multi-billion dollar cannabis industry as entrepreneurs or as employees with high quality, well-paying jobs.

(g) It is the intent of the Legislature in enacting this act that the cannabis industry be representative of the state’s population, and that barriers to entering the industry are reduced through support to localities that have created local equity programs in their jurisdictions.

(h) It is the intent of the Legislature in enacting this act that more information be collected to fully assess the cannabis industry and the persons who participate in it. This will better inform decisions on how to create a more equitable industry.

(i) The Legislature finds and declares that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act, enacted as Proposition 64 of 2016.

SEC. 3.

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

26051.7.

 (a) Beginning July 1, 2019, application applications for a state or local license or permit shall include a voluntary question questions 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) “Eligible local jurisdiction” means a local jurisdiction that has adopted or operates a local equity program.

(b) “Local equity applicant” means an applicant who has submitted, or will submit, an application to a local jurisdiction to engage in commercial cannabis activity within the jurisdictional boundaries of that jurisdiction and who meets the requirements of that jurisdiction’s local equity program.

(c) “Local equity licensee” means a person who has obtained a license from a local jurisdiction to engage in commercial cannabis activity within the jurisdictional boundaries of that jurisdiction and who meets the requirements of that jurisdiction’s local equity program.

(d) “Local equity program” means a program adopted 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 may 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. communities and communities most harmed by cannabis prohibition.

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

(3)

(2) Tiered fees or fee waivers for cannabis-related permits and licenses.

(3) Assistance securing business locations prior to or during the application process.

(4) Assistance securing capital investments.

(5) Assistance with regulatory compliance.

(6) Assistance in recruitment, training, and retention of a qualified and diverse workforce, including transitional workers.

(e) “Transitional worker” means a person who, at the time of starting employment at the business premises, resides in a ZIP code or census track area with higher than average unemployment, crime, or child death rates, and faces at least one of the following barriers to employment: (1) is homeless; (2) is a custodial single parent; (3) is receiving public assistance; (4) lacks a GED or high school diploma; (5) has a criminal record or other involvement with the criminal justice system; (6) suffers from chronic unemployment; (7) is emancipated from the foster care system; (8) is a veteran; or (9) is over the age of 65 and is financially compromised.

(e)“State equity applicant” means an applicant for a state license to engage in commercial cannabis activity who owns at least 51 percent of the business seeking licensure and who meets at least one of the following requirements, 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.

(f)“State equity licensee” means a person who has obtained a license from the state to engage in commercial cannabis activity and who meets at least one of the requirements of subdivision (e).

26242.

 (a) The bureau shall, may, upon request by a local equity applicant or local equity licensee, provide technical assistance to the local equity applicant or local equity licensee. When determining whether to provide technical assistance, the bureau shall make individual determinations based on the reasonableness of the request and available resources.

(b) “Technical assistance” includes conducting training and educational sessions regarding state and local cannabis licensing processes and requirements, which could be coordinated with local training sessions, and requirements and providing assistance in securing business locations. to help applicants and licensees navigate the state licensing process.

26244.

 (a) (1) Upon appropriation of funds by the Legislature, an eligible local jurisdiction may, in the form and manner prescribed by the bureau, submit an application to the bureau for a grant to assist local equity applicants and local equity licensees identified by that local jurisdiction. The jurisdiction’s equity program.

(2) The bureau shall review an application so submitted, and shall grant the application if the bureau determines the eligible local jurisdiction meets the requirements of this chapter. based on the following criteria:

(A) Whether the local jurisdiction is an eligible local jurisdiction.

(B) Whether the local jurisdiction has adopted or operates a local equity program.

(C) Whether the local jurisdiction has identified a local equity applicant or a local equity licensee that the local jurisdiction could assist, as defined in subdivision (b), through use of the grant funding.

(D) Whether the local jurisdiction has demonstrated the ability to provide, or created a plan to provide, the services identified in subdivision (b).

(E) Any additional relevant and reasonable criteria the bureau deems necessary.

(3) If the bureau finds that the local jurisdiction’s application meets the criteria in paragraph (2), the bureau shall grant funding to that jurisdiction. If applications for funding are greater than the amount appropriated for this grant program, the bureau shall prorate the funding as necessary.

(b) An eligible local jurisdiction that receives a grant pursuant to subdivision (a) shall use grant funds to assist local equity applicants and local equity licensees identified by that local jurisdiction to gain entry into, and to successfully operate in, the state’s regulated cannabis marketplace. For purposes of this subdivision, “assist” includes, but is not limited to, any of the following methods:

(1) To provide a loan or a grant to a local equity applicant or local equity licensee to assist the applicant or licensee with startup and ongoing costs. For purposes of this paragraph, “startup and ongoing costs” include, but are not limited to, rent, leases, application and licensing fees, regulatory adherence, testing of cannabis, and training and retention of a qualified and diverse workforce.

(2) To support local equity program efforts to provide sources of capital to local equity applicants and local equity licensees.

(3) To provide direct technical assistance to local equity applicants and local equity licensees.

(4) To assist in the establishment of local equity programs.

(c) An eligible local jurisdiction that receives a grant pursuant to subdivision (a) shall, by January 1 of the year following receipt of the grant and annually thereafter until all funds have been expended, submit an annual report to the bureau that includes all of the following information:

(1) How the local jurisdiction disbursed grant funds.

(2) How the local jurisdiction identified local equity applicants or local equity licensees, including how the local jurisdiction determines who qualifies as a local equity applicant or local equity licensee.

(3) The number of local equity applicants and local equity licensees that were served by the grant funds.

26246.

(a)The bureau shall establish a cannabis equity task force to advise the bureau on the development and implementation of a state equity 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 program, including developing incentives for licensees to partner with state equity applicants and licensees and establishing programs to assist state and local 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.

26248.

(a)Beginning January 1, 2020,

26246.

 To facilitate greater equity in business ownership and employment in the cannabis market, the bureau shall 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, including removing barriers to entry such as lack of business opportunities, generational wealth, access to capital, and expertise in the cannabis supply chain. shall, at a minimum, do all of the following:

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

(1)

(a) Serve as a point of contact for state local equity applicants and licensees. licensees, and provide technical assistance to local equity applicants and licensees as described in Section 26242.

(2)Develop a model local equity ordinance.

(b) On or before January 1, 2020, develop guidelines and principals for a model local equity program and a model local ordinance used to adopt a local equity program. This shall be done in consultation with local governments, including those with equity programs, minority business owners and entrepreneurs, organizations with expertise in addressing barriers to employment and licensure for low-income communities and persons with prior arrests or convictions, and unions representing cannabis workers. The bureau may contract with local entities to administer a local equity program.

(3)

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

(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 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 26246, and the report prepared by the bureau pursuant to Section 26250.

(d) Provide grants and assistance to local equity programs pursuant to Section 26244.

(e) Provide small business support services to local equity applicants.

(f) Provide assistance in regulatory compliance for local equity licensees.

(g) Provide assistance to all state licensees in recruitment, training, and retention of a qualified and diverse workforce that includes transitional workers, and incentivize licensees to provide that workforce with high quality, well-paying jobs.

(h) To the extent feasible, coordinate with the relevant local jurisdictions to carrying out the responsibilities described in this section.

26250.26248.

 (a) On or before January July 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 state equity applicants applying for and receiving licenses.

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

(5)

(3) Information collected pursuant to Section 26051.7.

(6)

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

(7)

(5) 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.

26250.

 The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

SEC. 5.

 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

SEC. 5.SEC. 6.

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