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 authoritiesbegin delete determineend deletebegin insert determine, as specified,end insert 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. The bill would require the exemption to the local licensing requirement provided by these provisions to be superseded by a subsequent initiative authorizing the City of Los Angeles to issue local licenses to medical marijuana businesses in the city if the voters of Los Angeles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.
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) Notwithstanding any other provision of this chapter:
16(A) With regard to commercial cannabis activity in the City of
17Los Angeles, the licensing authorities shall not require a local
18license, permit, or other authorization and shall issue a state license
19to engage in commercial cannabis activity only if the licensing
20
authorities determine the applicant satisfies all of the requirements
21of this act and demonstrates that it meets all of the following
22criteria established by Measure D, approved by the voters of the
23City of Los Angeles at the May 21, 2013, general election:
24(i) The applicant was operating in the City of Los Angeles as a
25medical marijuana business by September 14, 2007, as evidenced
26by a business tax registration certificate issued by the City of Los
27Angeles on or before November 13, 2007.
28(ii) The applicant registered with the City of Los Angeles city
29clerk 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
(C) The determination of the licensing authority that an
12applicant for a state license meets the criteria listed in
13subparagraph (A) shall be based on a written or electronic
14notification provided to the licensing authority by the City of Los
15Angeles that the applicant has met the criteria. If the City of Los
16Angeles does not provide written or electronic notification to the
17licensing authority confirming an applicant has met the criteria,
18the licensing authority shall not issue a state license.
19(3) Notwithstanding paragraph (2), if
the voters of Los Angeles
20approve an initiative, after January 1, 2016, but prior to the time
21that the State of California begins issuing state licenses, that
22authorizes the City of Los Angeles to issue local licenses to medical
23marijuana businesses in the City of Los Angeles, the exemption
24for local licensing in Los Angeles as set forth in paragraph (2)
25shall be superseded by the local licensing requirements as enacted
26by that initiative.
27(b) Revocation of a local license, permit, or other authorization
28shall terminate the ability of a medical cannabis business to operate
29within that local jurisdiction until the local jurisdiction reinstates
30or reissues the local license, permit, or other required authorization.
31Local authorities shall notify the bureau upon revocation of a local
32license. The bureau shall inform relevant licensing
authorities.
33(c) Revocation of a state license shall terminate the ability of a
34medical cannabis licensee to operate within California until the
35licensing authority reinstates or reissues the state license. Each
36licensee shall obtain a separate license for each location where it
37engages in commercial medical cannabis activity. However,
38transporters only need to obtain licenses for each physical location
39where the licensee conducts business while not in transport, or any
P4 1equipment that is not currently transporting medical cannabis or
2medical cannabis products, permanently resides.
3(d) In addition to the provisions of this chapter, local
4jurisdictions retain the power to assess fees and taxes, as applicable,
5on facilities that are licensed pursuant to this chapter and the
6business
activities of those licensees.
7(e) Nothing in this chapter shall be construed to supersede or
8limit state agencies, including the State Water Resources Control
9Board and Department of Fish and Wildlife, from establishing fees
10to support their medical cannabis regulatory programs.
Section 19320 of the Business and Professions Code,
12as added by Section 8 of Chapter 719 of the Statutes of 2015, is
13amended to read:
(a) (1) Licensing authorities administering this chapter
15may issue state licenses only to qualified applicants engaging in
16commercial cannabis activity pursuant to this chapter. Upon the
17date of implementation of regulations by the licensing authority,
18no person shall engage in commercial cannabis activity without
19possessing both a state license and a local permit, license, or other
20authorization. A licensee shall not commence activity under the
21authority of a state license until the applicant has obtained, in
22addition to the state license, a license or permit from the local
23jurisdiction in which he or she proposes to operate, following the
24requirements of the applicable local ordinance.
25(2) Notwithstanding any other provision of this chapter:
26(A) With regard to commercial cannabis activity in the City of
27Los Angeles, the licensing authorities shall not require a local
28license, permit, or other authorization and shall issue a state license
29to engage in commercial cannabis activity only if the licensing
30
authorities determine the applicant satisfies all of the requirements
31of this act and demonstrates that it meets all of the following
32criteria established by Measure D, approved by the voters of the
33City of Los Angeles at the May 21, 2013, general election:
34(i) The applicant was operating in the City of Los Angeles as a
35medical marijuana business by September 14, 2007, as evidenced
36by a business tax registration certificate issued by the City of Los
37Angeles on or before November 13, 2007.
38(ii) The applicant registered with the City of Los Angeles city
39clerk by November 13, 2007, in accordance with all of the
P5 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
(C) The determination of the licensing authority that an
12applicant for a state license meets the criteria listed in
13subparagraph (A) shall be based on a written or electronic
14notification provided to the licensing authority by the City of Los
15Angeles that the applicant has met the criteria. If the City of Los
16Angeles does not provide written or electronic notification to the
17licensing authority confirming an applicant has met the criteria,
18the licensing authority shall not issue a state license.
19(3) Notwithstanding paragraph (2),
if the voters of Los Angeles
20approve an initiative, after January 1, 2016, but prior to the time
21that the State of California begins issuing state licenses, that
22authorizes the City of Los Angeles to issue local licenses to medical
23marijuana businesses in the City of Los Angeles, the exemption
24for local licensing in Los Angeles as set forth in paragraph (2)
25shall be superseded by the local licensing requirements as enacted
26by that initiative.
27(b) Revocation of a local license, permit, or other authorization
28shall terminate the ability of a medical cannabis business to operate
29within that local jurisdiction until the local jurisdiction reinstates
30or reissues the local license, permit, or other required authorization.
31Local authorities shall notify the bureau upon revocation of a local
32license. The bureau shall inform relevant licensing
authorities.
33(c) Revocation of a state license shall terminate the ability of a
34medical cannabis licensee to operate within California until the
35licensing authority reinstates or reissues the state license. Each
36licensee shall obtain a separate license for each location where it
37engages in commercial medical cannabis activity. However,
38transporters only need to obtain licenses for each physical location
39where the licensee conducts business while not in transport, or any
P6 1equipment that is not currently transporting medical cannabis or
2medical cannabis products, permanently resides.
3(d) In addition to the provisions of this chapter, local
4jurisdictions retain the power to assess fees and taxes, as applicable,
5on facilities that are licensed pursuant to this chapter and the
6business
activities of those licensees.
7(e) Nothing in this chapter shall be construed to supersede or
8limit state agencies, including the State Water Resources Control
9Board and Department of Fish and Wildlife, from establishing fees
10to support their medical cannabis regulatory programs.
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96