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, 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 The bill would require the exemption to the local licensing requirement provided by these provisions to be superseded by a subsequent initiative authorizing the City of Los Angeles to issue local licenses to medical marijuana businesses in the city if the voters of Los Angeles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.begin insert This bill would make a technical amendment by repealing a duplicate state licensing provision.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) 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
P3 1by a business tax registration certificate issued by the City of Los
2Angeles on or before November 13, 2007.
3(ii) The applicant registered with the City of Los Angeles city
4clerk by November 13, 2007, in accordance with all of the
5requirements of the City of Los Angeles’ Interim Control
6Ordinance.
7(iii) The applicant
obtained a City of Los Angeles business tax
8registration for taxation as a medical marijuana collective (class
9L050).
10(B) A state license issued pursuant to this paragraph for
11commercial cannabis activity shall have the same force and effect
12
and shall confer the same benefits and responsibilities as licenses
13issued to licensees outside the City of Los Angeles that obtain a
14license, permit, or other authorization from the local jurisdiction.
15(C) The determination of the licensing authority that an applicant
16for a state license meets the criteria listed in subparagraph (A)
17shall be based on a written or electronic notification provided to
18the licensing authority by the City of Los Angeles that the applicant
19has met the criteria. If the City of Los Angeles does not provide
20written or electronic notification to the licensing authority
21confirming an applicant has met the criteria, the licensing authority
22shall not issue a state license.
23(3) Notwithstanding paragraph (2), if the voters of Los Angeles
24approve an
initiative, after January 1, 2016, but prior to the time
25that the State of California begins issuing state licenses, that
26authorizes the City of Los Angeles to issue local licenses to medical
27marijuana businesses in the City of Los Angeles, the exemption
28for local licensing in Los Angeles as set forth in paragraph (2)
29shall be superseded by the local licensing requirements as enacted
30by that initiative.
31(b) Revocation of a local license, permit, or other authorization
32shall terminate the ability of a medical cannabis business to operate
33within that local jurisdiction until the local jurisdiction reinstates
34or reissues the local license, permit, or other required authorization.
35Local authorities shall notify the bureau upon revocation of a local
36license. The bureau shall inform relevant licensing authorities.
37(c) Revocation of a state license shall terminate the ability of a
38medical cannabis licensee to operate within California until the
39licensing authority reinstates or reissues the state license. Each
40licensee shall obtain a separate license for each location where it
P4 1engages in commercial medical cannabis activity. However,
2transporters only need to obtain licenses for each physical location
3where the licensee conducts business while not in transport, or any
4equipment that is not currently transporting medical cannabis or
5medical cannabis products, permanently resides.
6(d) In addition to the provisions of this chapter, local
7jurisdictions retain the power to assess fees and taxes, as applicable,
8on facilities that are licensed pursuant to this chapter and the
9business activities of
those licensees.
10(e) Nothing in this chapter shall be construed to supersede or
11limit state agencies, including the State Water Resources Control
12Board and Department of Fish and Wildlife, from establishing fees
13to support their medical cannabis regulatory programs.
Section 19320 of the Business and Professions Code,
15as added by Section 8 of Chapter 719 of the Statutes of 2015, is
16amended to read:
(a) (1) Licensing authorities administering this chapter
18may issue state licenses only to qualified applicants engaging in
19commercial cannabis activity pursuant to this chapter. Upon the
20date of implementation of regulations by the licensing authority,
21no person shall engage in commercial cannabis activity without
22possessing both a state license and a local permit, license, or other
23authorization. A licensee shall not commence activity under the
24authority of a state license until the applicant has obtained, in
25addition to the state license, a license or permit from the local
26jurisdiction in which he or she proposes to operate, following the
27requirements of the applicable local ordinance.
28(2) Notwithstanding any other provision of this chapter:
29(A) With regard to commercial cannabis activity in the City of
30Los Angeles, the licensing authorities shall not require a local
31license, permit, or other authorization and shall issue a state license
32to engage in commercial cannabis activity only if the licensing
33
authorities determine the applicant satisfies all of the requirements
34of this act and demonstrates that it meets all of the following
35criteria established by Measure D, approved by the voters of the
36City of Los Angeles at the May 21, 2013, general election:
37(i) The applicant was operating in the City of Los Angeles as a
38medical marijuana business by September 14, 2007, as evidenced
39by a business tax registration certificate issued by the City of Los
40Angeles on or before November 13, 2007.
P5 1(ii) The applicant registered with the City of Los Angeles city
2clerk by November 13, 2007, in accordance with all of the
3requirements of the City of Los Angeles’ Interim Control
4Ordinance.
5(iii) The applicant obtained a
City of Los Angeles business tax
6registration for taxation as a medical marijuana collective (class
7L050).
8(B) A state license issued pursuant to this paragraph for
9commercial cannabis activity shall have the same force and effect
10
and shall confer the same benefits and responsibilities as licenses
11issued to licensees outside the City of Los Angeles that obtain a
12license, permit, or other authorization from the local jurisdiction.
13(C) The determination of the licensing authority that an applicant
14for a state license meets the criteria listed in subparagraph (A)
15shall be based on a written or electronic notification provided to
16the licensing authority by the City of Los Angeles that the applicant
17has met the criteria. If the City of Los Angeles does not provide
18written or electronic notification to the licensing authority
19confirming an applicant has met the criteria, the licensing authority
20shall not issue a state license.
21(3) Notwithstanding paragraph (2),
if the voters of Los Angeles
22approve an initiative, after January 1, 2016, but prior to the time
23that the State of California begins issuing state licenses, that
24authorizes the City of Los Angeles to issue local licenses to medical
25marijuana businesses in the City of Los Angeles, the exemption
26for local licensing in Los Angeles as set forth in paragraph (2)
27shall be superseded by the local licensing requirements as enacted
28by that initiative.
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
P6 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.
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
14repealed.end insert
(a) Licensing 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.
26(b) Revocation of a
local license, permit, or other authorization
27shall terminate the ability of a medical cannabis business to operate
28within that local jurisdiction until the local jurisdiction reinstates
29or reissues the local license, permit, or other required authorization.
30Local authorities shall notify the bureau upon revocation of a local
31license. The bureau shall inform relevant licensing authorities.
32(c) Revocation of a state license shall terminate the ability of a
33medical cannabis licensee to operate within California until the
34licensing authority reinstates or reissues the state license. Each
35licensee shall obtain a separate license for each location where it
36engages in commercial medical cannabis activity. However,
37transporters only need to obtain licenses for each physical location
38where the licensee conducts business while not in transport, or any
39equipment that is not currently transporting medical cannabis or
40medical cannabis products, permanently
resides.
P7 1(d) In addition to the provisions of this chapter, local
2jurisdictions retain the power to assess fees and taxes, as applicable,
3on facilities that are licensed pursuant to this chapter and the
4business activities of those licensees.
5(e) Nothing in this chapter shall be construed to supersede or
6limit state agencies, including the State Water Resources Control
7Board and Department of Fish and Wildlife, from establishing fees
8to support their medical cannabis regulatory programs.
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95