SBX6 17 Senate Bill, 6th Ext. Session

BILL NUMBER: SBX6 17	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Calderon

                        APRIL 6, 2010

   An act to add Division 8.9 (commencing with Section 22992) to the
Business and Professions Code, relating to cannabis licensing.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 17, as introduced, Calderon. Cannabis Licensing Act.
   Existing law provides for the imposition of various taxes with
respect to the distribution of certain products, including cigarettes
and other tobacco products, and provides for the licensure by the
State Board of Equalization of sellers of those products that are
engaged in business in California.
   This bill would, on and after the effective date of an imposition
of a tax on the distribution of cannabis, establish a Cannabis
Licensing Act, which would require a seller to have in place and
maintain a license from the State Board of Equalization to engage in
the sale of cannabis, and would require the license to be renewed
every 12 months, as provided.
   This bill would require an applicant for a license to fill out a
form providing specified information. This bill would also require
applicants to pay a one-time license fee of and a renewal fee, as
specified.
   This bill would require all moneys collected to be deposited in
the Cannabis Compliance Fund, which would be created in the State
Treasury, and all funds therein would be available for appropriation
by the Legislature solely for the purpose of implementing, enforcing,
and administering the Cannabis Licensing Act.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Division 8.9 (commencing with Section 22992) is added
to the Business and Professions Code, to read:

      DIVISION 8.9.  CANNABIS LICENSING ACT


      CHAPTER 1.  GENERAL PROVISIONS AND DEFINITIONS


   22992.  This division shall be known, and may be cited, as the
Cannabis Licensing Act.
   22992.1.  The board shall administer a statewide program to
license sellers of cannabis.
   22992.2.  For purposes of this division, the following terms shall
have the following meanings:
   (a) "Board" means the State Board of Equalization.
   (b) "Cannabis" means all parts of the plant Cannabis sativa L.,
whether growing or not; the seeds thereof; the resin extracted from
any part of the plant; and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds or resin.
It 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.
   (c) "License" means a license issued by the board pursuant to this
division.
   (d) "Licensee" means any person holding a license issued by the
board pursuant to this division.
   (e) "Medical marijuana" means marijuana that is regulated under
Article 2.5 (commencing with Section 11362.7) of Chapter 6 of
Division 10 of the Health and Safety Code.
   (f) "Person" means a person as defined in Section 30010 of the
Revenue and Taxation Code.
   (g) "Sale" or "sold" includes any transfer of title or possession
for a consideration, barter, or exchange, by any manner or by any
means whatsoever.
   (h) "Seller" means any person making a sale in this state of
cannabis.
   22992.3.  The board shall administer and enforce the provisions of
this division and may prescribe, adopt, and enforce rules and
regulations relating to the administration and enforcement of this
division.
   22992.4.  No person is subject to the requirements of this
division if that person is exempt from regulation under the United
States Constitution, the laws of the United States, or the California
Constitution.
      CHAPTER 2.  LICENSE FOR SELLERS OF CANNABIS


   22992.5.  (a) On and after the effective date of an imposition of
a tax on the sale of cannabis, a seller shall have in place and
maintain a license to engage in the sale of cannabis.
   (b) A license is not assignable or transferable. A person who
obtains a license as a seller who ceases to sell as specified in the
license, or who never commenced selling, or whose license is
suspended or revoked, shall immediately surrender the license to the
board.
   (c) A license shall be valid for a 12-month period, and shall be
renewed annually.
   22992.6.  (a) An application for a license shall be filed on a
form prescribed by the board and shall include the following:
   (1) The name, address, and telephone number of the applicant.
   (2) The signature of the applicant.
   (3) Any other information the board may require.
   (b) The board may investigate to determine the truthfulness and
completeness of the information provided in the application.
   (c) The board shall provide electronic means for applicants to
download and submit applications.
   (d) (1) A one-time license fee of ____ dollars ($____) shall be
submitted with each application.
   (2) A fee of ____ dollars ($____) shall be submitted for each
application for renewal of a license. If a license is reinstated
after its expiration, the seller, as a condition precedent to its
reinstatement, shall pay a reinstatement fee of ____ dollars ($____).

   22992.7.  Whenever any seller fails to comply with any provision
of this division or any rule or regulations of the board prescribed
and adopted under this division, the board upon hearing, after giving
the seller at least 10 days' notice in writing specifying the time
and place of hearing and requiring him or her to show cause why his
or her license should not be revoked, may revoke the license held by
him or her. The notice may be served personally or by United States
mail, postage prepaid, to the seller at his or her last known address
or place of business in this state. The board shall not issue a new
license to a seller whose license has been revoked unless it is
satisfied that the seller will comply with the provisions of this
division and the rules and regulations of the board.
      CHAPTER 3.  DISPOSITION OF FUNDS


   22992.8.  (a) All moneys collected pursuant to this division shall
be deposited in the Cannabis Compliance Fund, which is hereby
created in the State Treasury.
   (b) All moneys in the Cannabis Compliance Fund are available for
expenditure, upon appropriation by the Legislature, solely for the
purpose of implementing, enforcing, and administering the Cannabis
Licensing Act.