AB 2385, as amended, Jones-Sawyer. Medical Marijuana Regulation and Safety Act: state licenses: Measure D.
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.
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.begin insert The bill would require the exemption to the local licensing requirement provided by these provisions to be superseded by a subsequent initiative authorizing the City of Los Angeles to issue local licenses to medical marijuana businesses in the city if the voters of Los Angeles approve the initiative prior to the time the State of California begins issuing state licenses.end insert
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 19320 of the Business and Professions
2Code, as added by Section 4 of Chapter 689 of the Statutes of
32015, is amended to read:
(a) (1) Licensing 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
12addition to the state license, a license or permit from the local
13jurisdiction in which he or she proposes to operate, following the
14requirements of the applicable local ordinance.
15(2) begin delete(A)end deletebegin delete end deleteNotwithstanding any other provision of thisbegin delete article, begin insert chapter:end insert
16withregardend delete
17begin insert(A)end insertbegin insert end insertbegin insertWith regardend insert to commercial cannabis activity in the City of
18Los Angeles, the licensing authorities shall not require a local
19license, permit, or other authorization and shall issue a state license
20to engage in commercial cannabis activity only if the licensing
21
authorities determine the applicant satisfies all of the requirements
22of this act and demonstrates that it meets all of the following
23criteria established by Measure D, approved by the voters of the
24City of Los Angeles at the May 21, 2013, general election:
25(i) The applicant was operating in the City of Los Angeles as a
26medical marijuana business by September 14, 2007, as evidenced
27by a business tax registration certificate issued by the City of Los
28Angeles on or before November 13, 2007.
29(ii) The applicant registered with the City of Los Angeles city
30clerk by November 13, 2007, in accordance with all of the
P3 1requirements of the City of Los Angeles’ Interim Control
2Ordinance.
3(iii) The applicant obtained a City of
Los Angeles business tax
4registration for taxation as a medical marijuana collective (class
5L050).
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.
11
(3) Notwithstanding paragraph (2), if the voters of Los Angeles
12approve an initiative, after January 1, 2016, but prior to the time
13that the State of California begins issuing state licenses, that
14authorizes the City of Los Angeles to issue local licenses to medical
15marijuana businesses in the City of Los Angeles, the exemption
16for local licensing in Los Angeles as set forth in paragraph (2)
17shall be superseded by the local licensing requirements as enacted
18by that initiative.
19(b) Revocation of a local license, permit, or other
authorization
20shall terminate the ability of a medical cannabis business to operate
21within that local jurisdiction until the local jurisdiction reinstates
22or reissues the local license, permit, or other required authorization.
23Local authorities shall notify the bureau upon revocation of a local
24license. The bureau shall inform relevant licensing authorities.
25(c) Revocation of a state license shall terminate the ability of a
26medical cannabis licensee to operate within California until the
27licensing authority reinstates or reissues the state license. Each
28licensee shall obtain a separate license for each location where it
29engages in commercial medical cannabis activity. However,
30transporters only need to obtain licenses for each physical location
31where the licensee conducts business while not in transport, or any
32equipment that is not
currently transporting medical cannabis or
33medical cannabis products, permanently resides.
34(d) In addition to the provisions of this chapter, local
35jurisdictions retain the power to assess fees and taxes, as applicable,
36on facilities that are licensed pursuant to this chapter and the
37business activities of those licensees.
38(e) Nothing in this chapter shall be construed to supersede or
39limit state agencies, including the State Water Resources Control
P4 1Board and Department of Fish and Wildlife, from establishing fees
2to support their medical cannabis regulatory programs.
Section 19320 of the Business and Professions Code,
4as added by Section 8 of Chapter 719 of the Statutes of 2015, is
5amended to read:
(a) (1) Licensing authorities administering this chapter
7may issue state licenses only to qualified applicants engaging in
8commercial cannabis activity pursuant to this chapter. Upon the
9date of implementation of regulations by the licensing authority,
10no person shall engage in commercial cannabis activity without
11possessing both a state license and a local permit, license, or other
12authorization. A licensee shall not commence activity under the
13authority of a state license until the applicant has obtained, in
14addition to the state license, a license or permit from the local
15jurisdiction in which he or she proposes to operate, following the
16requirements of the applicable local ordinance.
17(2) begin delete(A)end deletebegin delete end deleteNotwithstanding any other provision of thisbegin delete article, begin insert chapter:end insert
18withregardend delete
19begin insert(A)end insertbegin insert end insertbegin insertWith regardend insert to commercial cannabis activity in the City of
20Los Angeles, the licensing authorities shall not require a local
21license, permit, or other authorization and shall issue a state license
22to engage in commercial cannabis activity only if the licensing
23
authorities determine the applicant satisfies all of the requirements
24of this act and demonstrates that it meets all of the following
25criteria established by Measure D, approved by the voters of the
26City of Los Angeles at the May 21, 2013, general election:
27(i) The applicant was operating in the City of Los Angeles as a
28medical marijuana business by September 14, 2007, as evidenced
29by a business tax registration certificate issued by the City of Los
30Angeles on or before November 13, 2007.
31(ii) The applicant registered with the City of Los Angeles city
32clerk by November 13, 2007, in accordance with all of the
33requirements of the City of Los Angeles’ Interim Control
34Ordinance.
35(iii) The applicant obtained a City
of Los Angeles business tax
36registration for taxation as a medical marijuana collective (class
37L050).
38(B) A state license issued pursuant to this paragraph for
39commercial cannabis activity shall have the same force and effect
40
and shall confer the same benefits and responsibilities as licenses
P5 1issued to licensees outside the City of Los Angeles that obtain a
2license, permit, or other authorization from the local jurisdiction.
3
(3) Notwithstanding paragraph (2), if the voters of Los Angeles
4approve an initiative, after January 1, 2016, but prior to the time
5that the State of California begins issuing state licenses, that
6authorizes the City of Los Angeles to issue local licenses to medical
7marijuana businesses in the City of Los Angeles, the exemption
8for local licensing in Los Angeles as set forth in paragraph (2)
9shall be superseded by the local licensing requirements as enacted
10by that initiative.
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.
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