Bill Text: CA SB51 | 2023-2024 | Regular Session | Chaptered
Bill Title: Cannabis provisional licenses: local equity applicants.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2023-10-08 - Chaptered by Secretary of State. Chapter 593, Statutes of 2023. [SB51 Detail]
Download: California-2023-SB51-Chaptered.html
Senate Bill
No. 51
CHAPTER 593
An act to amend Section 26050.2 of, and to add Section 26050.5 to, the Business and Professions Code, relating to cannabis.
[
Approved by
Governor
October 08, 2023.
Filed with
Secretary of State
October 08, 2023.
]
LEGISLATIVE COUNSEL'S DIGEST
SB 51, Bradford.
Cannabis provisional licenses: local equity applicants.
Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure, 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. Existing law, 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, and establishes the Department of Cannabis Control to administer its provisions.
Under existing law, the California Cannabis Equity Act, a local equity applicant is an applicant who has submitted, or will submit, an application to a local jurisdiction to engage in commercial cannabis activity and who meets the requirements of that jurisdiction’s local equity program,
which focuses on inclusion and support of individuals and communities in California’s cannabis industry who are linked to populations or neighborhoods that were negatively or disproportionately impacted by cannabis criminalization, as specified.
MAUCRSA, until June 30, 2023, authorized the department, in its sole discretion, to issue a provisional license for a local equity license application if the applicant meets specified requirements. MAUCRSA prohibits the department from renewing a provisional license after January 1, 2025, and provides that no provisional license is effective after January 1, 2026.
This bill, until January 1, 2031, would additionally authorize the department, in its sole discretion, to issue a provisional license for a local equity applicant for retailer activities if the applicant meets specified requirements. The bill would authorize the department, in its sole discretion, to renew a provisional
license for a local equity applicant for retailer activities until it issues or denies the provisional licensee’s annual license, subject to specified requirements, or until 5 years from the date the provisional license was originally issued, whichever is earlier. By extending provisional licensure, the applications for which are required to be signed under penalty of perjury, the bill would expand the scope of the crime of perjury, and would thereby impose a state-mandated local program. The bill would require the department to report to the appropriate committees of the Legislature on, among other things, the number of provisional licenses that have been granted under the bill’s provisions.
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 the Legislature to amend its provisions by a 2/3 vote of each house if the amendment furthers its purposes and intent, except as provided.
This bill would declare that its provisions further the purposes and intent of AUMA.
Digest Key
Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 26050.2 of the Business and Professions Code is amended to read:26050.2.
(a) (1) Except as otherwise provided in Section 26050.5, until June 30, 2022, except as provided in paragraphs (3) and (4), the department may, in its sole discretion, issue a provisional license to an applicant if the applicant has submitted a completed license application to the department, including the following, if applicable:(A) If compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) is not complete, evidence that compliance is underway.
(B) If compliance with local ordinances enacted pursuant to Section 26200 is not
complete, evidence that compliance is underway.
(C) Compliance with paragraphs (5) and (11) of subdivision (a) of Section 26051.5.
(D) For a license application that includes cultivation activities, any of the following documents:
(i) A final streambed alteration agreement.
(ii) A draft streambed alteration agreement provided by the Department of Fish and Wildlife and signed and returned to the Department of Fish and Wildlife.
(iii) Written verification by the Department of Fish and Wildlife that a streambed alteration agreement is not needed.
(iv) Written verification by the Department of Fish and Wildlife that the applicant has submitted a notification described in Section
1602 of the Fish and Game Code, submitted payment of applicable fees pursuant to Section 1609 of the Fish and Game Code, and is responsive to the Department of Fish and Wildlife. For purposes of this subparagraph, an applicant is not responsive to the Department of Fish and Wildlife if either of the following apply:
(I) The notification has been deemed incomplete a second time.
(II) After a notification has been deemed incomplete once, the Department of Fish and Wildlife has not received requested information from the applicant for more than 60 days.
(E) The application is submitted to the department on or before March 31, 2022.
(2) If an application
for a cultivation license is submitted on or after January 1, 2022, the department shall not issue a provisional license pursuant to this section if issuing the provisional license would cause a licensee to hold multiple cultivation licenses on contiguous premises to exceed one acre of total canopy for outdoor cultivation, or 22,000 square feet for mixed-light or indoor cultivation.
(3) Until June 30, 2023, the department may, in its sole discretion, issue a provisional license for a local equity license application, provided that the applicant meets the following requirements:
(A) The local equity applicant is not a cultivation license applicant for a premises that exceeds one acre of total canopy for outdoor cultivation, or 22,000 square feet for mixed-light or indoor cultivation.
(B) Issuing the license would not cause the applicant to hold multiple cultivation licenses on contiguous premises to exceed one acre of total canopy for outdoor cultivation, or 22,000 square feet for mixed-light or indoor cultivation.
(C) The local equity applicant satisfies all of the requirements in subparagraphs (A) to (D), inclusive, of paragraph (1).
(D) The local equity applicant submits an application to the department on or before March 31, 2023.
(4) Until September 30, 2022, the department may, in its sole discretion, issue a provisional license to a cultivation license applicant, provided that the applicant meets the following requirements:
(A) The applicant is not a cultivation license applicant for a premises that exceeds 20,000 square feet of total canopy for outdoor cultivation.
(B) Issuing the license would not cause the applicant to hold multiple cultivation licenses on contiguous premises to exceed one acre of total canopy for outdoor cultivation, or 22,000 square feet for mixed-light or indoor cultivation.
(C) The cultivation license applicant satisfies all of the requirements in subparagraphs (A) to (D), inclusive, of paragraph (1).
(D) The cultivation license applicant submits an application to the department on or before June 30, 2022.
(b) A provisional license issued pursuant to this section shall be valid for no more than 12 months from the date it was issued or renewed. If the department issues or renews a provisional license, it shall include the outstanding items needed to qualify for an annual license specific to the licensee.
(c) The department may, in its sole discretion, renew a provisional license until it issues or denies the provisional licensee’s annual license, subject to the requirements of this section.
(d) For a renewal of a provisional license beginning July 1, 2022, through June 30, 2023, the department shall not renew a provisional license pursuant to this section unless the following criteria are met:
(1) For
cultivation licenses, to illustrate progress with compliance with Chapter 6 (commencing with Section 1600) of Division 2 of the Fish and Game Code, one of the following documents:
(A) A final streambed alteration agreement issued by the Department of Fish and Wildlife.
(B) A draft streambed alteration agreement provided by the Department of Fish and Wildlife and signed and returned to the Department of Fish and Wildlife by the provisional licensee.
(C) Written verification by the Department of Fish and Wildlife that the provisional licensee has submitted a complete notification described in Section 1602 of the Fish and Game Code.
(D) Written
verification by the Department of Fish and Wildlife that a streambed alteration agreement is not needed.
(2) If compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) is not yet complete, a determination from the department that one of the following requirements has been met:
(A) The lead agency is in the process of preparing a site-specific initial study, addendum, or checklist pursuant to Section 15063, 15164, 15168, or 15183 of Title 14 of the California Code of Regulations to demonstrate whether it is consistent with a previously circulated and adopted negative declaration, mitigated negative declaration, or environmental impact report.
(B) If a local
jurisdiction is the lead agency, the lead agency has made substantial progress during the previous 12-month licensure term toward completing project-specific environmental review by drafting, preparing, or circulating for public review an environmental document pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(C) If the department is the lead agency, information requested by the department of the provisional licensee that demonstrates the furtherance of environmental review.
(D) Information submitted to the department by the provisional licensee applicant that demonstrates evidence of substantial progress toward compliance with the California Environmental Quality Act (Division 13 (commencing with
Section 21000) of the Public Resources Code) during the previous 12-month licensure term.
(e) On or after July 1, 2023, the department shall not renew a provisional license pursuant to this section unless the following criteria are met:
(1) For cultivation licenses, to illustrate progress with compliance with Chapter 6 (commencing with Section 1600) of Division 2 of the Fish and Game Code, one of the following documents:
(A) A final streambed alteration agreement issued by the Department of Fish and Wildlife.
(B) A draft streambed alteration agreement provided by the Department of Fish and Wildlife and signed and returned to the Department of
Fish and Wildlife by the provisional licensee.
(C) Written verification from the Department of Fish and Wildlife that a streambed alteration agreement is not needed.
(2) If compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) is not yet complete, to illustrate progress with compliance, a determination from the department that one of the following has been met:
(A) The lead agency for the license has prepared and circulated for public review a negative declaration or a mitigated negative declaration.
(B) The lead agency for the license has determined that an environmental impact
report is required pursuant to Section 21157 of the Public Resources Code and has either made substantial progress in preparing that environmental impact report or has a contract or contracts with consultants in place for the preparation of that environmental impact report.
(C) The lead agency has certified to the department that it has conducted a reasonably comprehensive site-specific review and has reviewed, prepared, and deemed complete an initial study, addendum, or checklist pursuant to Section 15063, 15164, 15168, or 15183 of Title 14 of the California Code of Regulations, which demonstrates consistency with a previously circulated and adopted negative declaration, mitigated negative declaration, or environmental impact report, in preparation for approval of an annual license.
(D) The lead agency for the license has reviewed, prepared, and deemed complete a notice of exemption pursuant to Section 21108 or 21152 of the Public Resources Code, except for ministerial projects not subject to the California Environmental Quality Act pursuant to paragraph (1) of subdivision (b) of Section 21080 of the Public Resources Code.
(f) A provisional license authorizing cultivation activities shall not be renewed if the department is notified of either or both of the following:
(1) The State Water Resources Control Board has notified the department that the provisional licensee is not in compliance with subdivision (a) or (b) of Section 26060.1 or the principles, guidelines, and requirements established pursuant to Section 13149 of the Water Code.
(2) The Department of Fish and Wildlife has notified the department that the provisional licensee is not in compliance with any final streambed alteration agreement, any conditions set forth in a signed draft streambed alteration agreement, or a condition established pursuant to subdivision (a) or paragraphs (1) and (2) of subdivision (b) of Section 26060.1.
(g) (1) After January 1, 2023, the department shall not renew a license pursuant to this section for cultivation activities if renewing the license would cause a licensee to hold multiple cultivation licenses on contiguous premises to exceed one acre of total canopy for outdoor cultivation or 22,000 square feet for mixed-light or indoor cultivation.
(2) After January 1, 2024, no provisional license that causes a licensee to hold multiple cultivation licenses on contiguous premises to exceed one acre of total canopy for outdoor cultivation or 22,000 square feet for mixed-light or indoor cultivation shall be in effect.
(h) The department, in its sole discretion, may allow a provisional licensee to move locations after the date provisional licenses can no longer be issued provided that the new location is approved in compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), and Chapter 6 (commencing with Section 1600) of Division 2 of the Fish and Game Code. If all other renewal requirements are satisfied, the department may also renew the license at the new location.
(i) The department may, in its sole discretion, revoke or suspend a provisional license if it determines the licensee failed to actively and diligently pursue requirements for the annual license. The department shall adopt regulations clarifying what constitutes actively and diligently pursuing requirements for the annual license.
(j) The department shall cancel a provisional license upon issuance of an annual license, denial of an annual license, abandonment of an application for licensure, or withdrawal of an application for licensure.
(k) Except as specified in this section, the provisions of this division shall apply to a provisional license in the same manner as to an annual license.
(l) Without limiting any other statutory exemption or categorical exemption, Division 13 (commencing with Section 21000) of the Public Resources Code does not apply to the issuance of a license pursuant to this section by the department, except as otherwise provided in this section.
(m) Refusal by the department to issue a license pursuant to this section or revocation or suspension by the department of a license issued pursuant to this section shall not entitle the applicant or licensee to a hearing or an appeal of the decision. Chapter 2 (commencing with Section 480) of Division 1.5 and Chapter 4 (commencing with Section 26040) of this division and Sections 26031 and 26058 shall not apply to licenses issued pursuant to this section.
(n) For purposes of this section, “streambed alteration agreement” has the same meaning as the term “agreement” is defined in Section 1601 of the Fish and Game Code, which includes both individual agreements and general agreements under Section 1617 of the Fish and Game Code.
(o) Except as otherwise provided in Section 26050.5, the Department shall not renew a provisional license after January 1, 2025, and no provisional license shall be effective after January 1, 2026.
(p) This section shall remain in effect only until January 1, 2026, and as of that date is repealed.
(q) It is the intent of the Legislature that no further exemptions from annual licenses be adopted and that any licenses issued under this
division after January 1, 2025, be issued in compliance with all relevant environmental laws.
(r) It is the intent of the Legislature that funds appropriated in Item 1115-101-0001 of the Budget Act of 2021 shall be promptly deployed to allow local jurisdictions to meet the deadlines in this act.
SEC. 2.
Section 26050.5 is added to the Business and Professions Code, to read:26050.5.
(a) Until January 1, 2031, the department may, in its sole discretion, issue a provisional license for a local equity applicant, as defined in Chapter 23 (commencing with Section 26240), for retailer activities, if the applicant has submitted a completed license application to the department, provided that the applicant meets the following requirements:(1) If compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) is not complete, evidence that compliance is underway.
(2) If compliance with local ordinances enacted pursuant
to Section 26200 is not complete, evidence that compliance is underway.
(3) Compliance with paragraphs (5) and (11) of subdivision (a) of Section 26051.5.
(b) A provisional license issued pursuant to this section shall be valid for no more than 12 months from the date it was issued or renewed. If the department issues or renews a provisional license, it shall include the outstanding items needed to qualify for an annual license specific to the licensee.
(c) The department may, in its sole discretion, renew a provisional license for a local equity applicant for retailer activities issued pursuant to this section or Section 26050.2 until it issues or denies the provisional licensee’s annual license, subject to the requirements
of this section, or until five years from the date the provisional license was originally issued pursuant to this section or Section 26050.2, whichever is earlier.
(d) If compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) is not yet complete, the department shall not renew a provisional license pursuant to this section unless the department has determined that one of the following requirements has been met:
(1) The lead agency is in the process of preparing a site-specific initial study, addendum, or checklist pursuant to Section 15063, 15164, 15168, or 15183 of Title 14 of the California Code of Regulations to demonstrate whether it is consistent with a previously circulated and adopted negative
declaration, mitigated negative declaration, or environmental impact report.
(2) If a local jurisdiction is the lead agency, the lead agency has made substantial progress during the previous 12-month licensure term toward completing project-specific environmental review by drafting, preparing, or circulating for public review an environmental document pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(3) If the department is the lead agency, information requested by the department of the provisional licensee demonstrates the furtherance of environmental review.
(4) Information submitted to the department by the provisional licensee
applicant demonstrates evidence of substantial progress toward compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) during the previous 12-month licensure term.
(e) The department, in its sole discretion, may allow a provisional licensee to move locations after the date provisional licenses can no longer be issued provided that the new location is approved in compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), and Chapter 6 (commencing with Section 1600) of Division 2 of the Fish and Game Code. If all other renewal requirements are satisfied, the department may also renew the license at the new location.
(f) The
department may, in its sole discretion, revoke or suspend a provisional license if it determines the licensee failed to actively and diligently pursue requirements for the annual license. The department shall adopt regulations clarifying what constitutes actively and diligently pursuing requirements for the annual license.
(g) The department shall cancel a provisional license upon issuance of an annual license, denial of an annual license, abandonment of an application for licensure, or withdrawal of an application for licensure.
(h) Except as specified in this section, the provisions of this division shall apply to a provisional license in the same manner as to an annual license.
(i) Without limiting any other statutory
exemption or categorical exemption, Division 13 (commencing with Section 21000) of the Public Resources Code does not apply to the issuance of a license pursuant to this section by the department, except as otherwise provided in this section.
(j) Refusal by the department to issue a license pursuant to this section or revocation or suspension by the department of a license issued pursuant to this section shall not entitle the applicant or licensee to a hearing or an appeal of the decision. Chapter 2 (commencing with Section 480) of Division 1.5 and Chapter 4 (commencing with Section 26040) of this division and Sections 26031 and 26058 do not apply to licenses issued pursuant to this section.
(k) (1) On or before January 1, 2030, the department shall report
to the appropriate committees of the Legislature on the number of provisional licenses that have been granted under this section, the number of provisional licenses that have been canceled for each of the circumstances provided in subdivision (g), and the number of provisional licenses granted under this section that remain active at the time of the report.
(2) The requirement for submitting a report imposed under this subdivision is inoperative on January 1, 2034, pursuant to Section 10231.5 of the Government Code.
(3) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
