Amended in Assembly June 13, 2016

Amended in Senate May 31, 2016

Amended in Senate March 15, 2016

Senate Bill No. 987

Introduced by Senator McGuire

February 10, 2016

An act begin insert to amend Sections 11362.715, 11362.72, and 11362.735 of the Health and Safety Code, and end insert to add Part 17 (commencing with Section 37001) to Division 2 of the Revenue and Taxation Code, relating to medical marijuana, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

SB 987, as amended, McGuire. Medical marijuana: Marijuana User Fee Act.

Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election, begin delete allows the use of marijuana for medical purposes. end delete begin insert exempts from specified criminal penalties the possession or cultivation of medical marijuana by patients and primary caregivers. end insert begin insert The Medical Marijuana Program requires the State Department of Public Health to establish and maintain a voluntary program for the issuance of identification cards to qualified patients who satisfy specified requirements with respect to the use of medical marijuana. end insert The Medical Marijuana Regulation and Safety Act, operative beginning on January 1, 2016, provides for the licensure and regulation of commercial medical marijuana activity, as specified. The Fee Collection Procedures Law, the violation of which is a crime, provides procedures for the collection of certain begin delete fees and surcharges. end delete begin insert fees. end insert

begin insert

This bill would require an identification card issued pursuant to the Medical Marijuana Program to contain an indication that the cardholder has low income if that person’s income is less than 200% of the federal poverty guidelines.

end insert

This bill would enact the Marijuana User Fee Act. The bill, on and after January 1, 2018, unless a specified initiative is passed by the voters at the November 8, 2016, statewide general election, would impose a fee on the consumption or other use in this state of medical marijuana purchased from any retailer for the consumption or other use in this state at the rate of begin delete 15% end delete begin insert 10% end insert of the sales price of the medical marijuana. This bill would provide that a purchaser is liable for that fee begin insert unless the purchaser has an identification card indicating that the purchaser has low income, as described above, end insert and would require every retailer engaged in business in this state and making sales of medical marijuana to a purchaser for the consumption or other use in this state to separately state and collect the fee from a purchaser, begin insert unless the purchaser presents that identification card, end insert as specified. This bill would also make specific violations of this bill a crime, thereby imposing a state-mandated local program.

This bill would require the State Board of Equalization to administer and collect the fee in accordance with the Fee Collection Procedures Law. By expanding the application of the Fee Collection Procedures Law, the violation of which is a crime, this bill would impose a state-mandated local program. The bill would require a retailer to register for a permit with the board, to prepare and file with the board returns, and to remit the fee quarterly. The bill would require that all revenues, less refunds, be remitted to the begin delete State Board of Equalization end delete begin insert board end insert and deposited in the Marijuana User Fee Fund, which the bill would establish.

This bill would require moneys in the Marijuana User Fee Fund to be allocated by the Controller in specified percentages to the General Fund and, upon appropriation by the Legislature, to the Bureau of Medical Marijuana Regulation for the administration of a grant program to distribute grants to local agencies, as defined, that oversee or are affected by the regulation of cultivating, processing, manufacturing, distributing, and selling of medical marijuana, or that undertake enforcement activities pertaining to the cultivation of marijuana; the Department of Parks and Recreation for the stewardship, operation, maintenance, and preservation of state park units; and to counties, as defined, for drug and alcohol treatment programs. The bill, commencing in 2018, and at least every other year thereafter, would require the Legislative Analyst to review and evaluate the fee, and provide a report on the fee to specified committees of the Legislature. The bill would also require funds to be advanced to the Marijuana User Fee Fund as a General Fund or special fund loan, would authorize the Director of Finance to provide an initial operating loan from the General Fund, and would appropriate to the board funds so advanced or loaned to the board for the implementation and administration of the act.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: ²⁄₃. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

The Legislature finds and declares that edible
cannabis products, as defined in Section 19300.5 of the Business
and Professions Code and as applicable to Section 2 of this act,
are not considered a food product for purposes of Section 34 of
Article XIII of the California Constitution.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 11362.715 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

11362.715.  

(a) A person who seeks an identification card shall
pay the fee, as provided in Section 11362.755, and provide all of
the following to the county health department or the county’s
designee on a form developed and provided by the department:

(1) The name of the person, and proof of his or her residency
within the county.

(2) Written documentation by the attending physician in the
person’s medical records stating that the person has been diagnosed
with a serious medical condition and that the medical use of
marijuana is appropriate.

(3) The name, office address, office telephone number, and
California medical license number of the person’s attending
physician.

(4) The name and the duties of the primary caregiver.

(5) A government-issued photo identification card of the person
and of the designated primary caregiver, if any. If the applicant is
a person under 18 years of age, a certified copy of a birth certificate
shall be deemed sufficient proof of identity.

begin insert

(6) Documentation of the person’s income.

end insert

(b) If the person applying for an identification card lacks the
capacity to make medical decisions, the application may be made
by the person’s legal representative, including, but not limited to,
any of the following:

(1) A conservator with authority to make medical decisions.

(2) An attorney-in-fact under a durable power of attorney for
health care or surrogate decisionmaker authorized under another
advanced health care directive.

(3) Any other individual authorized by statutory or decisional
law to make medical decisions for the person.

(c) The legal representative described in subdivision (b) may
also designate in the application an individual, including himself
or herself, to serve as a primary caregiver for the person, provided
that the individual meets the definition of a primary caregiver.

(d) The person or legal representative submitting the written
information and documentation described in subdivision (a) shall
retain a copy thereof.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 11362.72 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

11362.72.  

(a) Within 30 days of receipt of an application for
an identification card, a county health department or the county’s
designee shall do all of the following:

(1) For purposes of processing the application, verify that the
information contained in the application is accurate. If the person
is less than 18 years of age, the county health department or its
designee shall also contact the parent with legal authority to make
medical decisions, legal guardian, or other person or entity with
legal authority to make medical decisions, to verify the information.

(2) Verify with the Medical Board of California or the
Osteopathic Medical Board of California that the attending
physician has a license in good standing to practice medicine or
osteopathy in the state.

(3) Contact the attending physician by facsimile, telephone, or
mail to confirm that the medical records submitted by the patient
are a true and correct copy of those contained in the physician’s
office records. When contacted by a county health department or
the county’s designee, the attending physician shall confirm or
deny that the contents of the medical records are accurate.

(4) Take a photograph or otherwise obtain an electronically
transmissible image of the applicant and of the designated primary
caregiver, if any.

begin insert

(5) Determine whether the applicant has low income. For
purposes of this article, an applicant has low income if the
applicant’s income is less than 200 percent of the federal poverty
guidelines.

end insert begin delete

(5)

end delete

begin insert (6) end insert  Approve or deny the application. If an applicant who meets
the requirements of Section 11362.715 can establish that an
identification card is needed on an emergency basis, the county or
its designee shall issue a temporary identification card that shall
be valid for 30 days from the date of issuance. The county, or its
designee, may extend the temporary identification card for no more
than 30 days at a time, so long as the applicant continues to meet
the requirements of this paragraph.

(b) If the county health department or the county’s designee
approves the application, it shall, within 24 hours, or by the end
of the next working day of approving the application, electronically
transmit the following information to the department:

(1) A unique user identification number of the applicant.

(2) The date of expiration of the identification card.

(3) The name and telephone number of the county health
department or the county’s designee that has approved the
application.

(c) The county health department or the county’s designee shall
issue an identification card to the applicant and to his or her
designated primary caregiver, if any, within five working days of
approving the application.

(d) In any case involving an incomplete application, the
applicant shall assume responsibility for rectifying the deficiency.
The county shall have 14 days from the receipt of information
from the applicant pursuant to this subdivision to approve or deny
the application.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 11362.735 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

11362.735.  

(a) An identification card issued by the county
health department shall be serially numbered and shall contain all
of the following:

(1) A unique user identification number of the cardholder.

(2) The date of expiration of the identification card.

(3) The name and telephone number of the county health
department or the county’s designee that has approved the
application.

(4) A 24-hour, toll-free telephone number, to be maintained by
the department, that will enable state and local law enforcement
officers to have immediate access to information necessary to
verify the validity of the card.

(5) Photo identification of the cardholder.

begin insert

(6) An indication that the cardholder has low income, if
applicable.

end insert

(b) A separate identification card shall be issued to the person’s
designated primary caregiver, if any, and shall include a photo
identification of the caregiver.

begin delete SEC. 2. end delete

begin insert SEC. 5. end insert   

Part 17 (commencing with Section 37001) is added to
Division 2 of the Revenue and Taxation Code, to read:

 

PART 17.  Marijuana User Fee Act

 

37001.  

This part is known, and may be cited, as the “Marijuana
User Fee Act.”

37002.  

For purposes of this part, the following definitions shall
apply:

(a) “Local agency” includes any city, county, special district,
authority, or other political subdivision of the state.

(b) “Medical marijuana” means medical cannabis as defined in
Section 19300.5 of the Business and Professions Code.

(c) “Person” means person as defined in Section 55002.

(d) “Primary caregiver” means a person who is exempt from
the licensure requirements of the Medical Marijuana Regulation
and Safety Act (Chapter 3.5 (commencing with Section 19300) of
Division 8 of the Business and Professions Code) pursuant to
subdivision (b) of Section 19319 of the Business and Professions
Code.

(e) “Purchaser” means a person that purchases medical
marijuana for consumption or other use in this state.

(f) “Qualified patient” means a person who is entitled to the
protections of the Compassionate Use Act of 1996 (Section 11362.5
of the Health and Safety Code).

(g) “Retail sale” or “sale at retail” means a sale for any purpose
other than resale in the regular course of business in the form of
medical marijuana.

(h) (1) “Retailer” includes every person that makes any retail
sale or sales of medical marijuana. “Retailer” also includes a person
holding a dispensary license issued pursuant to the Medical
Marijuana Regulation and Safety Act (Chapter 3.5 (commencing
with Section 19300) of Division 8 of the Business and Professions
Code).

(2) Every person making more than two retail sales of medical
marijuana during any 12-month period shall be considered a retailer
within the provisions of this part.

(i) “Retailer engaged in business in this state” means any retailer
that has substantial nexus with this state for purposes of the
commerce clause of the United States Constitution and any retailer
upon whom federal law permits this state to impose a fee collection
duty.

(j) (1) “Sale” or “purchase” means and includes any transfer
of title or possession, exchange, or barter, conditional or otherwise,
in any manner or by any means whatsoever, of medical marijuana
for a consideration. “Transfer of possession” includes only
transactions found by the board to be in lieu of a transfer of title,
exchange, or barter.

(2) Notwithstanding paragraph (1), “sale” or “purchase” does
not include the transfer of title or possession, exchange, or barter
of medical marijuana for a consideration between a qualified patient
and his or her primary caregiver.

(k) “Sales price” means the total amount for which medical
marijuana is sold, valued in money, whether paid in money or
otherwise, without any deduction on account of the cost of any
expenses.

(l) “Use” includes the exercise of any right or power over
medical marijuana incident to the ownership of that medical
marijuana, except that it does not include the sale of that medical
marijuana in the regular course of business.

37003.  

On and after January 1, 2018, there is hereby imposed
a fee on the consumption or other use in this state of medical
marijuana purchased from any retailer for the consumption or other
use in this state at the rate of begin delete 15 end delete begin insert 10 end insert percent of the sales price of
the medical marijuana.

37004.  

(a)  begin insert (1) end insert begin insert   end insert Every purchaser consuming or otherwise using
in this state medical marijuana that the purchaser purchased from
a retailer for consumption or other use in this state is liable for the
fee imposed by Section 37003. That purchaser’s liability is not
extinguished until the fee has been paid to this state except that a
receipt from a retailer engaged in business in this state given to a
purchaser pursuant to paragraph (2) of subdivision (b) is sufficient
to relieve the purchaser from further liability for the fee to which
the receipt refers.

begin insert

(2) Notwithstanding paragraph (1), a purchaser is not liable
for the tax if the purchaser has an identification card issued
pursuant to Article 2.5 (commencing with Section 11362.7) of
Chapter 6 of Division 10 of the Health and Safety Code indicating
that the purchaser has low income.

end insert

(b) (1) Every retailer engaged in business in this state and
making sales of medical marijuana to a purchaser shall, at the time
of making such a sale, collect the fee as a charge separate from,
and not included in, any other fee, charge, or other amount paid
by the purchaser.

(2) Every retailer engaged in business in this state shall collect
the fee from the purchaser and give to the purchaser a receipt
therefor in the manner and form prescribed by the board.

begin insert

(3) Notwithstanding paragraphs (1) and (2), a retailer engaged
in business in this state shall not collect the tax from a purchaser
who, at the time of the sale, presents the retailer with an
identification card issued pursuant to Article 2.5 (commencing
with Section 11362.7) of Chapter 6 of Division 10 of the Health
and Safety Code indicating that the purchaser has low income.

end insert

(c) The board shall administer and collect the fee imposed by
this part pursuant to the Fee Collection Procedures Law (Part 30
(commencing with Section 55001)), except that Article 1.1
(commencing with Section 55050) of Chapter 3 of that part shall
not apply.

(d) (1) The fee required to be collected by the retailer engaged
in business in this state, any fee collected from a purchaser that
has not been remitted to the board, and any amount unreturned to
a purchaser which is not the fee, but was collected from the
purchaser under the representation by the retailer that it was the
fee, constitutes debts owed by the retailer to this state.

(2) A retailer is relieved from liability to collect the fee that
became due and payable, insofar as the measure of the fee is
represented by accounts that have been found to be worthless and
charged off by the retailer in accordance with generally accepted
accounting principles. A retailer that has previously paid the
amount of the fee may, under rules and regulations prescribed by
the board, take as a deduction on its return the amount found
worthless and charged off by the retailer. If these accounts are
thereafter in whole or in part collected by the retailer, the amount
collected shall be included in the first return filed after the
collection and the amount of the fee shall be paid with the return.

(3) The board may by regulation promulgate such other rules
with respect to uncollected or worthless accounts as it shall deem
necessary to the fair and efficient administration of this part.

(e) It is unlawful for any retailer to advertise or hold out or state
to the public or to any purchaser, directly or indirectly, that the fee
or any part thereof will be assumed or absorbed by the retailer or
that it will not be added to the selling price of the medical
marijuana sold or that if added it or any part thereof will be
refunded. Any person violating this subdivision is guilty of a
misdemeanor.

(f) (1) The fee required to be collected by the retailer engaged
in business in this state from the purchaser shall be displayed
separately from the price of the medical marijuana on the sales
check or other proof of sales. Any person violating this paragraph
is guilty of a misdemeanor.

(2) Except as otherwise required by paragraph (1), the fee
required to be collected by the retailer engaged in business in this
state from the purchaser shall be included in any list price, marked
price, or any other advertised or quoted price of medical marijuana
provided or displayed by the retailer engaged in business in this
state.

(g) (1) The board may prescribe, adopt, and enforce regulations
relating to the administration and enforcement of this part.

(2) The board may prescribe, adopt, and enforce any emergency
regulations as necessary to implement this part. Any emergency
regulation prescribed, adopted, or enforced pursuant to this section
shall be adopted in accordance with Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code, and, for purposes of that chapter, including
Section 11349.6 of the Government Code, the adoption of the
regulation is an emergency and shall be considered by the Office
of Administrative Law as necessary for the immediate preservation
of the public peace, health and safety, and general welfare.

(h) (1) The fee imposed by this part is due and payable to the
board quarterly on or before the last day of the month next
succeeding each quarterly period.

(2) On or before the last day of the month following each
quarterly period, a return for the preceding quarterly period shall
be filed using electronic media with the board. Returns shall be
authenticated in a form or pursuant to methods as may be
prescribed by the board.

37005.  

(a) A retailer required to collect the fee imposed under
this part shall register for a permit with the board. Every application
for registration shall be made in a form prescribed by the board
and shall set forth the name under which the applicant transacts
or intends to transact business, the location of the retailer’s place
or places of business, and any other information that the board
may require. An application for registration shall be authenticated
in a form or pursuant to methods as may be prescribed by the
board.

(b) The board shall grant and issue to each applicant that
complies with subdivision (a) a separate permit for each place of
business within the state.

(c) A permit issued pursuant to this section is not assignable
and is valid only for the person in whose name it is issued and for
the transaction of business at the place designated therein. It shall
at all times be conspicuously displayed at the place for which it is
issued.

37005.3.  

Whenever any retailer fails to comply with any
provision of this part or any rules or regulations of the board
prescribed and adopted under this part, the board upon hearing,
after giving the retailer at least 10 days’ notice in writing specifying
the time and place of the hearing and requiring the retailer to show
cause why the permit should not be revoked, may revoke or
suspend the permit held by the retailer. The board shall give to the
retailer written notice of the suspension or revocation of any of
the retailer’s permits. The notices herein required may be served
personally or by mail in the manner prescribed for service of notice
of a deficiency determination. The board shall not issue a new
permit after the revocation of a permit unless it is satisfied that the
former holder of the permit will comply with the provisions of this
part and the regulations of the board prescribed and adopted under
this part.

37005.5.  

(a) The board may refuse to issue a permit to any
person submitting an application for a permit as required in Section
37005 if the person desiring to engage in or conduct business as
a retailer within this state has an outstanding final liability with
the board for any amount due under this part.

(b) The board may also refuse to issue a permit if the person
desiring to engage in or conduct business as a retailer within this
state is not a natural person or individual and any person controlling
the person desiring to engage in or conduct business as a seller
within this state has an outstanding final liability with the board
as provided in subdivision (a). For the purposes of this section,
“controlling” has the same meaning as defined in Section 22971
of the Business and Professions Code.

(c) For purposes of this section, a liability will not be deemed
to be outstanding if the person has entered into an installment
payment agreement pursuant to Section 55209 for any liability
and is in full compliance with the terms of the installment payment
agreement.

(d) If the person submitting an application for a permit pursuant
to Section 37005 has entered into an installment payment
agreement as provided in subdivision (c) and fails to comply with
the terms of the installment payment agreement, the board may
seek revocation of the person’s permit pursuant to this section.

(e) (1) Whenever any person desiring to engage in or conduct
business as a retailer within this state is denied a permit pursuant
to this section, the board shall give to the person written notice of
the denial. The notice of the denial may be served personally, by
mail, or by other means deemed appropriate by the board. If served
by mail, the notice shall be placed in a sealed envelope, with
postage paid, addressed to the person at the address as it appears
in the records of the board. The giving of notice shall be deemed
complete at the time of deposit of the notice at the United States
Postal Service, or a mailbox, subpost office, substation or mail
chute, or other facility regularly maintained or provided by the
United States Postal Service, without extension of time for any
reason. In lieu of mailing, a notice may be served personally by
delivering to the person to be served and service shall be deemed
complete at the time of the delivery. Delivery of notice by other
means deemed appropriate by the board may include, but is not
limited to, electronic transmission. Personal service or delivery by
other means deemed appropriate by the board to a corporation may
be made by delivery of a notice to any person listed on the
application as an officer.

(2) Any person that is denied a permit pursuant to this section
may request reconsideration of the board’s denial of the permit.
This request shall be submitted in writing within 30 days of the
date of the notice of denial. Timely submission of a written request
for reconsideration shall afford the person a hearing in a manner
that is consistent with a hearing provided for by Section 37005.3.
If a request for reconsideration is not filed within the 30-day period,
the denial becomes final at the end of the 30-day period.

(f) The board shall consider offers in compromise when
determining whether to issue a permit.

37006.  

(a) The Marijuana User Fee Fund is hereby established
in the State Treasury. All revenues, less refunds, collected pursuant
to this part shall be made in remittances to the board and shall be
deposited in the Marijuana User Fee Fund.

(b) Except as otherwise provided in Section 37006.3, moneys
in the Marijuana User Fee Fund shall be allocated by the Controller
annually as follows:

(1) Thirty percent to the General Fund.

(2) Thirty percent to the Bureau of Medical Marijuana
Regulation for the administration of a grant program to distribute
grants to local agencies that oversee or are affected by the
regulation of cultivating, processing, manufacturing, distributing,
and selling of medical marijuana, that undertake enforcement
activities pertaining to the cultivation of marijuana in violation of
state law or local ordinance, or that are involved in a fire
suppression, emergency medical, or other “all-risk” response to a
marijuana cultivation, processing, manufacturing, or distribution
incident, upon appropriation by the Legislature. The grants shall
be made available beginning on or before July 1, 2018. No more
than 5 percent of any funds allocated may be used for
administrative costs of the grant program by the bureau or for any
administrative costs of the local agency awarded the grant.

(3) Twenty percent to the Department of Parks and Recreation
for the stewardship, operation, maintenance, and preservation of
state park units, including units operated on behalf of the state by
local or regional agencies or by nonprofit organizations, upon
appropriation by the Legislature. The department shall allocate to
those local or regional agencies or nonprofit organizations a
percentage of the funds received pursuant to this paragraph that is
roughly proportional to the ratio of the number of units operated
by the agencies or organizations to the number of units operated
by the department.

(4) (A) Twenty percent to counties for drug and alcohol
treatment programs, distributed based on the ratio of each county’s
population to the total population of all counties, as set forth in
the most recent E-1 Cities, Counties, and the State Population
Estimates published by the Department of Finance, upon
appropriation by the Legislature. Any funds appropriated shall be
used for drug and alcohol treatment and recovery and case
management services.

(B) For purposes of this paragraph, “county” means a county
mental health department, two or more county mental health
departments acting jointly, or a city-operated program receiving
funds pursuant to Section 5701.5 of the Welfare and Institutions
Code.

37006.3.  

(a) Funds for the implementation and administration
of this part shall be advanced to the Marijuana User Fee Fund as
a General Fund or special fund loan, and shall be repaid by the
initial revenues, less refunds, collected pursuant to this part.

(b) Funds advanced or loaned to the Marijuana User Fee Fund
pursuant to this section are hereby appropriated to the board for
the implementation and administration of this part.

(c) The Director of Finance may provide an initial operating
loan from the General Fund to the Marijuana User Fee Fund that
does not exceed five million dollars ($5,000,000).

37006.5.  

Commencing begin insert in end insert 2018, and at least every other year
thereafter, the Legislative Analyst shall review and evaluate the
fee imposed by this part, and shall provide to the Senate
Committees on Governance and Finance, Appropriations, and
Budget and Fiscal Review, and to the Assembly Committees on
Revenue and Taxation, Appropriations, and Budget, a report that
makes recommendations regarding the rate of, allocations of
revenue from, and any other adjustments to, the fee imposed by
this part. The report shall include, but not be limited to, all of the
following:

(a) Annual revenues.

(b) Annual costs of implementing this part.

(c) Annual amounts allocated to all of the following:

(1) The General Fund.

(2) The Bureau of Medical Marijuana Regulation.

(3) The Department of Parks and Recreation.

(4) Counties, for drug and alcohol programs.

(d) Fee compliance rates.

(e) Board recommendations to improve effective and efficient
administration and enforcement of this part.

37007.  

Nothing in this part shall be interpreted to preclude a
city, county, or city and county from enacting or continuing to
enforce a local ordinance that imposes any fees, taxes, or other
charges on the consumption or other use of medical marijuana, as
may be otherwise authorized by law.

37008.  

This part shall only become operative if Secretary of
State Initiative Number 1762, also known as the Control, Regulate
and Tax Adult Use of Marijuana Act, is not approved by the voters
at the November 8, 2016, statewide general election and does not
take effect.

begin delete SEC. 3. end delete

begin insert SEC. 6. end insert   

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.