BILL NUMBER: AB 2385	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 12, 2016
	AMENDED IN ASSEMBLY  APRIL 5, 2016
	AMENDED IN ASSEMBLY  MARCH 18, 2016

INTRODUCED BY   Assembly Member Jones-Sawyer

                        FEBRUARY 18, 2016

   An act to amend Section 19320 of the Business and Professions
Code, relating to marijuana.


	LEGISLATIVE COUNSEL'S DIGEST


   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
  determine, as specified,  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superseded by a subsequent initiative authorizing the City of Los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 1.  Section 19320 of the Business and Professions Code, as
added by Section 4 of Chapter 689 of the Statutes of 2015, is amended
to read:
   19320.  (a) (1) Licensing authorities administering this chapter
may issue state licenses only to qualified applicants engaging in
commercial cannabis activity pursuant to this chapter. Upon the date
of implementation of regulations by the licensing authority, no
person shall engage in commercial cannabis activity without
possessing both a state license and a local permit, license, or other
authorization. A licensee shall not commence activity under the
authority of a state license until the applicant has obtained, in
addition to the state license, a license or permit from the local
jurisdiction in which he or she proposes to operate, following the
requirements of the applicable local ordinance.
   (2) Notwithstanding any other provision of this chapter:
   (A) With regard to commercial cannabis activity in the City of Los
Angeles, the licensing authorities shall not require a local
license, permit, or other authorization and shall issue a state
license to engage in commercial cannabis activity only if the
licensing authorities determine the applicant satisfies all of the
requirements of this act and demonstrates that it meets all of the
following criteria established by Measure D, approved by the voters
of the City of Los Angeles at the May 21, 2013, general election:
   (i) The applicant was operating in the City of Los Angeles as a
medical marijuana business by September 14, 2007, as evidenced by a
business tax registration certificate issued by the City of Los
Angeles on or before November 13, 2007.
   (ii) The applicant registered with the City of Los Angeles city
clerk by November 13, 2007, in accordance with all of the
requirements of the City of Los Angeles' Interim Control Ordinance.
   (iii) The applicant obtained a City of Los Angeles business tax
registration for taxation as a medical marijuana collective (class
L050).
   (B) A state license issued pursuant to this paragraph for
commercial cannabis activity shall have the same force and effect and
shall confer the same benefits and responsibilities as licenses
issued to licensees outside the City of Los Angeles that obtain a
license, permit, or other authorization from the local jurisdiction.

   (C) The determination of the licensing authority that an applicant
for a state license meets the criteria listed in subparagraph (A)
shall be based on a written or electronic notification provided to
the licensing authority by the City of Los Angeles that the applicant
has met the criteria. If the City of Los Angeles does not provide
written or electronic notification to the licensing authority
confirming an applicant has met the criteria, the licensing authority
shall not issue a state license. 
   (3) Notwithstanding paragraph (2), if the voters of Los Angeles
approve an initiative, after January 1, 2016, but prior to the time
that the State of California begins issuing state licenses, that
authorizes the City of Los Angeles to issue local licenses to medical
marijuana businesses in the City of Los Angeles, the exemption for
local licensing in Los Angeles as set forth in paragraph (2) shall be
superseded by the local licensing requirements as enacted by that
initiative.
   (b) Revocation of a local license, permit, or other authorization
shall terminate the ability of a medical cannabis business to operate
within that local jurisdiction until the local jurisdiction
reinstates or reissues the local license, permit, or other required
authorization. Local authorities shall notify the bureau upon
revocation of a local license. The bureau shall inform relevant
licensing authorities.
   (c) Revocation of a state license shall terminate the ability of a
medical cannabis licensee to operate within California until the
licensing authority reinstates or reissues the state license. Each
licensee shall obtain a separate license for each location where it
engages in commercial medical cannabis activity. However,
transporters only need to obtain licenses for each physical location
where the licensee conducts business while not in transport, or any
equipment that is not currently transporting medical cannabis or
medical cannabis products, permanently resides.
   (d) In addition to the provisions of this chapter, local
jurisdictions retain the power to assess fees and taxes, as
applicable, on facilities that are licensed pursuant to this chapter
and the business activities of those licensees.
   (e) Nothing in this chapter shall be construed to supersede or
limit state agencies, including the State Water Resources Control
Board and Department of Fish and Wildlife, from establishing fees to
support their medical cannabis regulatory programs.
  SEC. 2.  Section 19320 of the Business and Professions Code, as
added by Section 8 of Chapter 719 of the Statutes of 2015, is amended
to read:
   19320.  (a) (1) Licensing authorities administering this chapter
may issue state licenses only to qualified applicants engaging in
commercial cannabis activity pursuant to this chapter. Upon the date
of implementation of regulations by the licensing authority, no
person shall engage in commercial cannabis activity without
possessing both a state license and a local permit, license, or other
authorization. A licensee shall not commence activity under the
authority of a state license until the applicant has obtained, in
addition to the state license, a license or permit from the local
jurisdiction in which he or she proposes to operate, following the
requirements of the applicable local ordinance.
   (2) Notwithstanding any other provision of this chapter:
   (A) With regard to commercial cannabis activity in the City of Los
Angeles, the licensing authorities shall not require a local
license, permit, or other authorization and shall issue a state
license to engage in commercial cannabis activity only if the
licensing authorities determine the applicant satisfies all of the
requirements of this act and demonstrates that it meets all of the
following criteria established by Measure D, approved by the voters
of the City of Los Angeles at the May 21, 2013, general election:
   (i) The applicant was operating in the City of Los Angeles as a
medical marijuana business by September 14, 2007, as evidenced by a
business tax registration certificate issued by the City of Los
Angeles on or before November 13, 2007.
   (ii) The applicant registered with the City of Los Angeles city
clerk by November 13, 2007, in accordance with all of the
requirements of the City of Los Angeles' Interim Control Ordinance.
   (iii) The applicant obtained a City of Los Angeles business tax
registration for taxation as a medical marijuana collective (class
L050).
   (B) A state license issued pursuant to this paragraph for
commercial cannabis activity shall have the same force and effect and
shall confer the same benefits and responsibilities as licenses
issued to licensees outside the City of Los Angeles that obtain a
license, permit, or other authorization from the local jurisdiction.

   (C) The determination of the licensing authority that an applicant
for a state license meets the criteria listed in subparagraph (A)
shall be based on a written or electronic notification provided to
the licensing authority by the City of Los Angeles that the applicant
has met the criteria. If the City of Los Angeles does not provide
written or electronic notification to the licensing authority
confirming an applicant has met the criteria, the licensing authority
shall not issue a state license. 
   (3) Notwithstanding paragraph (2), if the voters of Los Angeles
approve an initiative, after January 1, 2016, but prior to the time
that the State of California begins issuing state licenses, that
authorizes the City of Los Angeles to issue local licenses to medical
marijuana businesses in the City of Los Angeles, the exemption for
local licensing in Los Angeles as set forth in paragraph (2) shall be
superseded by the local licensing requirements as enacted by that
initiative.
   (b) Revocation of a local license, permit, or other authorization
shall terminate the ability of a medical cannabis business to operate
within that local jurisdiction until the local jurisdiction
reinstates or reissues the local license, permit, or other required
authorization. Local authorities shall notify the bureau upon
revocation of a local license. The bureau shall inform relevant
licensing authorities.
   (c) Revocation of a state license shall terminate the ability of a
medical cannabis licensee to operate within California until the
licensing authority reinstates or reissues the state license. Each
licensee shall obtain a separate license for each location where it
engages in commercial medical cannabis activity. However,
transporters only need to obtain licenses for each physical location
where the licensee conducts business while not in transport, or any
equipment that is not currently transporting medical cannabis or
medical cannabis products, permanently resides.
   (d) In addition to the provisions of this chapter, local
jurisdictions retain the power to assess fees and taxes, as
applicable, on facilities that are licensed pursuant to this chapter
and the business activities of those licensees.
   (e) Nothing in this chapter shall be construed to supersede or
limit state agencies, including the State Water Resources Control
Board and Department of Fish and Wildlife, from establishing fees to
support their medical cannabis regulatory programs.