Amended in Assembly March 18, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2385


Introduced by Assembly Member Jones-Sawyer

February 18, 2016


begin deleteAn act relating to medical marijuana. end deletebegin insertAn act to amend Section 19320 of the Business and Professions Code, relating to marijuana.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2385, as amended, Jones-Sawyer. begin deleteMedical marijuana: Los Angeles. end deletebegin insertMedical Marijuana Regulation and Safety Act: state licenses: Measure D.end insert

begin insert

Existing law, the Medical Marijuana Regulation and Safety Act, provides for the licensure and regulation of medical marijuana and authorizes licensing authorities to only issue state licenses to qualified applicants. Existing law prohibits a person from engaging in commercial cannabis activity without possessing both a state license and a local permit, license, or other authorization.

end insert
begin insert

This bill would prohibit licensing authorities from requiring a local license, permit, or other authorization, and would require the issuance of a state license, if the authorities determine that the applicant meets all of the requirements of the act and specified criteria relating to Measure D, which was approved by the voters of the City of Los Angeles at the May 21, 2013, general election. The bill would further provide that a license issued pursuant to the above provision has the same force and effect, and confers the same benefits and responsibilities, as licenses issued to licensees not subject to the above-described exception.

end insert
begin delete

Existing law of the City of Los Angeles, Proposition D, approved by voters on the May 21, 2013, ballot for that city, prohibits the operation of medical marijuana businesses, as defined, within the city limits and grants immunity from that prohibition to those businesses that have operated since September 2007, that previously registered in accordance with the city’s earlier medical marijuana registration law, and that comply with specified operational requirements.

end delete
begin delete

Existing state law, the Medical Marijuana Regulation and Safety Act, establishes the Bureau of Medical Marijuana Regulation within the Department of Consumer Affairs and under the supervision and control of the Director of Consumer Affairs. Existing law provides that the bureau’s licensure and regulation of dispensing facilities, cultivation sites, transporters, and manufacturers of medical marijuana and medical marijuana products is subject to express and specific authorization by the applicable local jurisdiction. Existing law also prohibits the issuance of a state license or a determination of compliance with local law by a licensing authority, in any way that limits the ability of the City of Los Angeles to enforce Proposition D. Existing law prohibits the issuance of a license or determination of compliance with local law by a licensing authority from being deemed to establish, or being relied upon in determining satisfaction with the immunity requirements of Proposition D or local zoning law, in court or in any other context or forum.

end delete
begin delete

This bill would state the intent of the Legislature to enact legislation to enable medical marijuana businesses in Los Angeles granted immunity from prosecution under Proposition D to apply for a state license to engage in commercial medical marijuana activities.

end delete

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

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

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 19320 of the end insertbegin insertBusiness and Professions
2Code
end insert
begin insert, as added by Section 4 of Chapter 689 of the Statutes of 2015,
3is amended to read:end insert

4

19320.  

(a) begin insert(1)end insertbegin insertend insertLicensing authorities administering this chapter
5may issue state licenses only to qualified applicants engaging in
6commercial cannabis activity pursuant to this chapter. Upon the
7date of implementation of regulations by the licensing authority,
8no person shall engage in commercial cannabis activity without
9possessing both a state license and a local permit, license, or other
10authorization. A licensee shall not commence activity under the
11authority of a state license until the applicant has obtained, in
P3    1addition to the state license, a license or permit from the local
2jurisdiction in which he or she proposes to operate, following the
3requirements of the applicable local ordinance.

begin insert

4(2) (A) Notwithstanding any other provision of this article, with
5regard to commercial cannabis activity in the City of Los Angeles,
6the licensing authorities shall not require a local license, permit,
7or other authorization and shall issue a state license to engage in
8commercial cannabis activity only if the licensing authorities
9determine the applicant satisfies all of the requirements of this act
10and demonstrates that it meets all of the following criteria
11established by Measure D, approved by the voters of the City of
12Los Angeles at the May 21, 2013, general election:

end insert
begin insert

13(i) The applicant was operating in the City of Los Angeles as a
14medical marijuana business by September 14, 2007, as evidenced
15by a business tax registration certificate issued by the City of Los
16Angeles on or before November 13, 2007.

end insert
begin insert

17(ii) The applicant registered with the City of Los Angeles city
18clerk by November 13, 2007, in accordance with all of the
19requirements of the City of Los Angeles’ Interim Control
20Ordinance.

end insert
begin insert

21(iii) The applicant obtained a City of Los Angeles business tax
22registration for taxation as a medical marijuana collective (class
23L050).

end insert
begin insert

24(B) A state license issued pursuant to this paragraph for
25commercial cannabis activity shall have the same force and effect
26 and shall confer the same benefits and responsibilities as licenses
27issued to licensees outside the City of Los Angeles that obtain a
28license, permit, or other authorization from the local jurisdiction.

end insert

29(b) Revocation of a local license, permit, or other authorization
30shall terminate the ability of a medical cannabis business to operate
31within that local jurisdiction until the local jurisdiction reinstates
32or reissues the local license, permit, or other required authorization.
33Local authorities shall notify the bureau upon revocation of a local
34license. The bureau shall inform relevant licensing authorities.

35(c) Revocation of a state license shall terminate the ability of a
36medical cannabis licensee to operate within California until the
37licensing authority reinstates or reissues the state license. Each
38licensee shall obtain a separate license for each location where it
39engages in commercial medical cannabis activity. However,
40transporters only need to obtain licenses for each physical location
P4    1where the licensee conducts business while not in transport, or any
2equipment that is not currently transporting medical cannabis or
3medical cannabis products, permanently resides.

4(d) In addition to the provisions of this chapter, local
5jurisdictions retain the power to assess fees and taxes, as applicable,
6on facilities that are licensed pursuant to this chapter and the
7business activities of those licensees.

8(e) Nothing in this chapter shall be construed to supersede or
9limit state agencies, including the State Water Resources Control
10Board and Department of Fish and Wildlife, from establishing fees
11to support their medical cannabis regulatory programs.

12begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 19320 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert,
13as added by Section 8 of Chapter 719 of the Statutes of 2015, is
14amended to read:end insert

15

19320.  

(a) begin insert(1)end insertbegin insertend insertLicensing authorities administering this chapter
16may issue state licenses only to qualified applicants engaging in
17commercial cannabis activity pursuant to this chapter. Upon the
18date of implementation of regulations by the licensing authority,
19no person shall engage in commercial cannabis activity without
20possessing both a state license and a local permit, license, or other
21authorization. A licensee shall not commence activity under the
22authority of a state license until the applicant has obtained, in
23addition to the state license, a license or permit from the local
24jurisdiction in which he or she proposes to operate, following the
25requirements of the applicable local ordinance.

begin insert

26(2) (A) Notwithstanding any other provision of this article, with
27regard to commercial cannabis activity in the City of Los Angeles,
28the licensing authorities shall not require a local license, permit,
29or other authorization and shall issue a state license to engage in
30commercial cannabis activity only if the licensing authorities
31determine the applicant satisfies all of the requirements of this act
32and demonstrates that it meets all of the following criteria
33established by Measure D, approved by the voters of the City of
34Los Angeles at the May 21, 2013, general election:

end insert
begin insert

35(i) The applicant was operating in the City of Los Angeles as a
36medical marijuana business by September 14, 2007, as evidenced
37by a business tax registration certificate issued by the City of Los
38Angeles on or before November 13, 2007.

end insert
begin insert

39(ii) The applicant registered with the City of Los Angeles city
40clerk by November 13, 2007, in accordance with all of the
P5    1requirements of the City of Los Angeles’ Interim Control
2Ordinance.

end insert
begin insert

3(iii) The applicant obtained a City of Los Angeles business tax
4registration for taxation as a medical marijuana collective (class
5L050).

end insert
begin insert

6(B) A state license issued pursuant to this paragraph for
7commercial cannabis activity shall have the same force and effect
8 and shall confer the same benefits and responsibilities as licenses
9issued to licensees outside the City of Los Angeles that obtain a
10license, permit, or other authorization from the local jurisdiction.

end insert

11(b) Revocation of a local license, permit, or other authorization
12shall terminate the ability of a medical cannabis business to operate
13within that local jurisdiction until the local jurisdiction reinstates
14or reissues the local license, permit, or other required authorization.
15Local authorities shall notify the bureau upon revocation of a local
16license. The bureau shall inform relevant licensing authorities.

17(c) Revocation of a state license shall terminate the ability of a
18medical cannabis licensee to operate within California until the
19licensing authority reinstates or reissues the state license. Each
20licensee shall obtain a separate license for each location where it
21engages in commercial medical cannabis activity. However,
22transporters only need to obtain licenses for each physical location
23where the licensee conducts business while not in transport, or any
24equipment that is not currently transporting medical cannabis or
25medical cannabis products, permanently resides.

26(d) In addition to the provisions of this chapter, local
27jurisdictions retain the power to assess fees and taxes, as applicable,
28on facilities that are licensed pursuant to this chapter and the
29business activities of those licensees.

30(e) Nothing in this chapter shall be construed to supersede or
31limit state agencies, including the State Water Resources Control
32Board and Department of Fish and Wildlife, from establishing fees
33to support their medical cannabis regulatory programs.

begin delete
34

SECTION 1.  

It is the intent of the Legislature to enact
35legislation to enable medical marijuana businesses in Los Angeles
36granted immunity from prosecution under Proposition D to apply
37for a state license to engage in commercial medical marijuana
38activities.

end delete


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