AB 2385, as amended, Jones-Sawyer. Medical Marijuana Regulation and Safety Act: state licenses: Measure D.
Existing law, the Medicalbegin delete Marijuanaend deletebegin insert Cannabisend insert Regulation and Safetybegin delete Act,end deletebegin insert Act (MCRSA),end insert provides for the licensure and regulation of medicalbegin delete marijuanaend deletebegin insert cannabisend insert andbegin insert requires all commercial cannabis activity to be conducted between licensees.
Existing law establishes the Bureau of Medical Cannabis Regulation within the Department of Consumer Affairs. Existing lawend insert authorizes licensing authorities to only issue state licenses to qualified applicants. Existingbegin delete lawend deletebegin insert law, end insertbegin insertupon the date of implementation of regulations by the licensing authority,end insert 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 wouldbegin insert instead prohibit a person from engaging in commercial cannabis activity without possessing both
a state license and a local permit, license, or other authorization one year after the bureau posts a notice on its Internet Web site that the licensing authorities have commenced issuing licenses. The bill would alsoend insert 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 ofbegin delete the actend deletebegin insert MCRSAend insert 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 The bill would require the exemption to the local licensing requirement provided by these provisions to be superseded by a subsequent initiative authorizing the City of Los Angeles to issue local licenses to medical marijuana businesses in the city if the voters of Los Angeles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 delete This bill would make a technical amendment by repealing a duplicate state licensing provision.end delete
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
begin insertSection 19320 of the end insertbegin insertBusiness and Professions
2Codeend insertbegin insert is amended to read:end insert
(a) All commercial cannabis activity shall be conducted
4between licensees, except as otherwise provided in this chapter.
5(b) Licensing authorities administering this chapter may issue
6state licenses only to qualified applicants engaging in commercial
7cannabis activity pursuant to this chapter.begin delete Upon the date of begin insert One year
8implementation of regulations by the licensing authority,end delete
9after the Bureau of Medical Cannabis Regulation posts a notice
10on its Internet Web site that the licensing authorities have
11commenced issuing licenses,end insert no person shall engage in commercial
12cannabis
activity without possessing both a state license and a
13local permit, license, or other authorization.begin insert end insertbegin insertAn entity seeking
14licensure pursuant to this chapter shall obtain a local license,
P3 1permit, or other authorization prior to applying for state licensure.
2State licensing entities shall not issue a license to any applicant
3that is unable to provide documentation confirming authorization
4to operate from the local government in which the applicant
5proposes to operate.end insert A licensee shall not commence activity under
6the authority of a state license until the applicant has obtained, in
7addition to the state license, a local license, permit, or other
8authorization from the local jurisdiction in which he or she
9proposes to operate, following the requirements of the applicable
10local ordinance.
11(c) Each licensee shall obtain a separate license for each location
12where it engages in commercial medical cannabis activity.
13However, transporters only need to obtain licenses for each
14physical location where the licensee conducts business while not
15in transport or where any equipment that is not currently
16transporting medical cannabis or medical cannabis products
17permanently resides.
18(d) Revocation of a local license, permit, or otherbegin insert requiredend insert
19 authorization shall terminate the ability of a medical cannabis
20business to operate within that local jurisdiction until the local
21jurisdiction reinstates or reissues the local license, permit, or other
22authorization. Local authorities shall notify the bureau upon
23revocation of a local license, permit, or other authorization. The
24bureau
shall inform relevant licensing authorities.
25(e) 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.
28(f) In addition to the provisions of this chapter, local jurisdictions
29retain the power to assess fees and taxes, as applicable, on facilities
30that are licensed pursuant to this chapter and the business activities
31of those licensees.
32(g) Nothing in this chapter shall be construed to supersede or
33limit state agencies, including the Department of Food and
34Agriculture, the State Water Resources Control Board, and the
35Department of Fish and Wildlife, from establishing fees to support
36their medical cannabis regulatory programs.
37
(h) (1) Notwithstanding any other provision of this chapter:
38
(A) With regard to commercial cannabis activity in the City of
39Los Angeles, the licensing authorities shall not require a local
40license, permit, or other authorization and shall issue a state
P4 1license to engage in commercial cannabis activity only if the
2licensing authorities determine the applicant satisfies all of the
3requirements of this act and demonstrates that it meets all of the
4following criteria established by Measure D, approved by the
5voters of the City of Los Angeles at the May 21, 2013, general
6election:
7
(i) The applicant was operating in the City of Los Angeles as a
8medical marijuana business by September 14, 2007, as evidenced
9by a business tax registration certificate issued by the City of Los
10Angeles on or before November 13, 2007.
11
(ii) The applicant registered with the City of Los Angeles city
12clerk by November 13, 2007, in accordance with all of the
13requirements of the City of Los Angeles’ Interim Control
14Ordinance.
15
(iii) The applicant obtained a City of Los Angeles business tax
16registration for taxation as a medical marijuana collective (class
17L050).
18
(B) A state license issued pursuant to this paragraph for
19commercial cannabis activity shall have the same force and effect
20and shall confer the same benefits and responsibilities as licenses
21issued to licensees outside the City of Los Angeles that obtain a
22license, permit, or other authorization from the local jurisdiction.
23
(C) The determination of the licensing
authority that an
24applicant for a state license meets the criteria listed in
25subparagraph (A) shall be based on a written or electronic
26notification provided to the licensing authority by the City of Los
27Angeles that the applicant has met the criteria. If the City of Los
28Angeles does not provide written or electronic notification to the
29licensing authority confirming an applicant has met the criteria,
30the licensing authority shall not issue a state license.
31
(2) Notwithstanding paragraph (1), if the voters of Los Angeles
32approve an initiative, after January 1, 2016, but prior to the time
33that the State of California begins issuing state licenses, that
34authorizes the City of Los Angeles to issue local licenses to medical
35marijuana
businesses in Los Angeles, the exemption for local
36licensing in Los Angeles as set forth in paragraph (1) shall be
37superseded by the local licensing requirements as enacted by that
38initiative.
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
30requirements of the City of Los Angeles’ Interim Control
31Ordinance.
32(iii) The applicant obtained a
City of Los Angeles business tax
33registration for taxation as a medical marijuana collective (class
34L050).
35(B) A state license issued pursuant to this paragraph for
36commercial cannabis activity shall have the same force and effect
37
and shall confer the same benefits and responsibilities as licenses
38issued to licensees outside the City of Los Angeles that obtain a
39license, permit, or other authorization from the local jurisdiction.
P6 1(C) The determination of the licensing authority that an applicant
2for a state license meets the criteria listed in subparagraph (A)
3shall be based on a written or electronic notification provided to
4the licensing authority by the City of Los Angeles that the applicant
5has met the criteria. If the City of Los Angeles does not provide
6written or electronic notification to the licensing authority
7confirming an applicant has met the criteria, the licensing authority
8shall not issue a state license.
9(3) Notwithstanding paragraph (2), if the voters of Los Angeles
10approve an
initiative, after January 1, 2016, but prior to the time
11that the State of California begins issuing state licenses, that
12authorizes the City of Los Angeles to issue local licenses to medical
13marijuana businesses in the City of Los Angeles, the exemption
14for local licensing in Los Angeles as set forth in paragraph (2)
15shall be superseded by the local licensing requirements as enacted
16by that initiative.
17(b) Revocation of a local license, permit, or other authorization
18shall terminate the ability of a medical cannabis business to operate
19within that local jurisdiction until the local jurisdiction reinstates
20or reissues the local license, permit, or other required authorization.
21Local authorities shall notify the bureau upon revocation of a local
22license. The bureau shall inform relevant licensing authorities.
23(c) Revocation of a state license shall terminate the ability of a
24medical cannabis licensee to operate within California until the
25licensing authority reinstates or reissues the state license. Each
26licensee shall obtain a separate license for each location where it
27engages in commercial medical cannabis activity. However,
28transporters only need to obtain licenses for each physical location
29where the licensee conducts business while not in transport, or any
30equipment that is not currently transporting medical cannabis or
31medical cannabis products, permanently resides.
32(d) In addition to the provisions of this chapter, local
33jurisdictions retain the power to assess fees and taxes, as applicable,
34on facilities that are licensed pursuant to this chapter and the
35business activities of those
licensees.
36(e) Nothing in this chapter shall be construed to supersede or
37limit state agencies, including the State Water Resources Control
38Board and Department of Fish and Wildlife, from establishing fees
39to support their medical cannabis regulatory programs.
Section 19320 of the Business and Professions Code,
2as added by Section 8 of Chapter 719 of the Statutes of 2015, is
3repealed.
O
94