BILL NUMBER: AB 243 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 17, 2015
AMENDED IN SENATE JULY 2, 2015
AMENDED IN ASSEMBLY JUNE 1, 2015
AMENDED IN ASSEMBLY APRIL 22, 2015
AMENDED IN ASSEMBLY APRIL 8, 2015
INTRODUCED BY Assembly Member Wood
(Coauthors: Assembly Members Rendon and Williams)
FEBRUARY 5, 2015
An act to add Sections 11362.769 and 11362.777 to the Health and
Safety Code, to add Part 13.5 (commencing with Section 31001)
to Division 2 of the Revenue and Taxation Code, and to add
Section 13276 to the Water Code, relating to medical marijuana,
making an appropriation therefor, and declaring the urgency thereof,
to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 243, as amended, Wood. Medical marijuana cultivation.
(1) 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, authorizes the use and
cultivation of marijuana for medical purposes. Existing law makes it
a crime to plant, cultivate, harvest, dry, or process marijuana,
except as otherwise authorized by law. Under existing law, qualified
patients, persons with valid identification cards, and the designated
primary caregivers of qualified patients and persons with
identification cards, who associate in order collectively and
cooperatively to cultivate marijuana for medical purposes, are not
subject to criminal sanctions solely on the basis of that fact.
This bill would establish the Division of Medical Cannabis
Cultivation in the Department of Food and Agriculture. The bill would
authorize a county, city, or city and county to issue or deny a
conditional permit to cultivate medical marijuana and would require
an applicant to obtain both a conditional permit from the county,
city, or city and county and a state medical marijuana cultivation
license from the division prior to cultivation occurring. By
increasing the duties of local officials relative to issuing a
conditional permit to cultivate medical marijuana, the bill would
impose a state-mandated local program.
The bill would require the division to implement an identification
program for medical marijuana in consultation with the State Water
Resources Control Board and the Department of Fish and Wildlife. The
bill would authorize the division to charge a fee to cover the
reasonable costs of issuing the unique identifier and monitoring,
tracking, and inspecting each medical marijuana plant. The bill would
allow a county, city, or city and county to administer the unique
identifier program, in which case the bill would authorize the
county, city, or city and county, to charge a fee to cover the
reasonable costs of issuing the unique identifier and monitoring,
tracking, and inspecting each medical marijuana plant. The
bill would specify that the unique identifier program established
pursuant the bill's provisions does not apply to a county, city, or
city and county that has an existing ordinance pertaining to the
cultivation of marijuana that provides for the identification of
individual plants during the cultivation period.
This bill, on and after June 1, 2016, would impose a tax a
licensed medical marijuana cultivator, at the rate of $50 per medical
marijuana plant with a unique identifier. This bill would require
the tax to be administered by the State Board of Equalization, as
prescribed, and
The bill would impose a tax in an unspecified amount on
marijuana flowers, marijuana leaves, and immature marijuana plants
and would require a licensed medical marijuana
distributor designated entity, as specified, to
collect the tax from the licensed medical
marijuana cultivator and remit the amounts collected
cultivator. The bill would require the State Board of
Equalization to collect the tax pursuant to the procedures set
forth in the Fee Collection Procedures Law. By expanding the
application of the Fee Collection Procedures Law, a violation of
which is a crime, this bill would impose a state-mandated local
program. This The bill would require
all moneys less refunds, to be deposited into the Marijuana
Production and Environment Mitigation Fund, which this bill would
create in the State Treasury, and continuously appropriate those
moneys to the board for allocation, as specified. The bill
would require a licensed medical marijuana cultivator to sell his or
her medical marijuana products only to a licensed medical marijuana
distributor, and would prohibit any other sales of medical marijuana
by a licensed medical marijuana cultivator. The bill would also
prohibit the sale of medical marijuana plants that do not contain a
unique identifier by a licensed cultivator to a licensed distributor.
The bill would require the board to adopt a system for reporting
the movement of cannabis and cannabis products through the
distribution chain, as specified.
The bill would require the Legislative Analyst's Office to
regularly review the tax levels established under the above
provisions and make recommendations to the Legislature regarding
adjustments that would further the goal of addressing the public
safety and environmental impacts caused by the proliferation of
marijuana cultivation.
The bill would require, on or before January 1, 2021, specified
state agencies, including, among others, the board, the
division, division and the Department of
Justice, to submit reports to the Legislature regarding
implementation of the bill.
The bill would specify that its provisions regarding the unique
identifier program and cultivation do not apply to certain qualified
patients cultivating marijuana if the patient cultivates marijuana
for his or her personal medical use and does not sell, distribute,
donate, or provide marijuana to any other person or entity, or to
certain primary caregivers cultivating marijuana if the primary
caregiver cultivates marijuana exclusively for the personal medical
use of no more than 5 specified qualified patients for whom he or she
is the primary caregiver and who does not receive remuneration,
except as specified.
The bill would also require indoor and outdoor medical marijuana
cultivation to be conducted in accordance with state and local laws
and best practices related to land conversion, grading, electricity
usage, water usage, water quality, woodland and riparian habitat
protection, agricultural discharges, and similar matters. This bill
would require state agencies to address environmental impacts of
medical marijuana cultivation and coordinate, when appropriate, with
cities and counties and their law enforcement agencies in enforcement
efforts.
The bill would state the intent of the Legislature
require that the multiagency task force, the
Department of Fish and Wildlife and State Water Resources Control
Board pilot project to address the Environmental Impacts of Cannabis
Cultivation, to continue its enforcement efforts on a
statewide level and permanent basis.
(2) Under existing law, the Porter-Cologne Water Quality Control
Act, the State Water Resources Control Board and the California
regional water quality control boards are the principal state
agencies with responsibility for the coordination and control of
water quality in the state.
This bill would require each regional board, and would allow the
state board, to address discharges of waste resulting from medical
marijuana cultivation and associated activities.
(3) 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, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
(4) This bill would declare that it is to take effect immediately
as an urgency statute.
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. It is the intent of the Legislature
that the multiagency task force, the Department of Fish and Wildlife
and State Water Resources Control Board pilot project to address the
Environmental Impacts of Cannabis Cultivation, assigned to respond to
the damages caused from marijuana cultivation on public and private
lands in California, will continue its enforcement efforts on a
statewide level and permanent basis to ensure the reduction of the
adverse impacts of marijuana cultivation on water quality and fish
and wildlife throughout the state.
SEC. 2. SECTION 1. Section 11362.769
is added to the Health and Safety Code, to read:
11362.769. Indoor and outdoor medical marijuana cultivation shall
be conducted in accordance with state and local laws and best
practices related to land conversion, grading, electricity usage,
water usage, water quality, woodland and riparian habitat protection,
agricultural discharges, and similar matters. State agencies,
including, but not limited to, the State Board of Forestry and Fire
Protection, the Department of Fish and Wildlife, the State Water
Resources Control Board, the California regional water quality
control boards, and traditional state law enforcement agencies shall
address environmental impacts of medical marijuana cultivation and
shall coordinate, when appropriate, with cities and counties and
their law enforcement agencies in enforcement efforts.
SEC. 3. SEC. 2. Section 11362.777 is
added to the Health and Safety Code, to read:
11362.777. (a) The Division of Medical Cannabis Cultivation is
established within the Department of Food and Agriculture. The
division shall be administered by a person appointed by the Governor
and, except as specified in subdivision (c), shall administer this
section as it pertains to the cultivation of medical marijuana.
(b) (1) A person or entity shall not cultivate medical marijuana
without first obtaining both of the following:
(A) A license, permit, or other entitlement
entitlement, specifically permitting cultivation pursuant to
these provisions, from the county, city, or city and county in
which the cultivation will occur.
(B) A license issued by the state pursuant to this section.
(2) A person or entity shall not submit an application for a
license issued by the state pursuant to this section unless that
person or entity has received a license, permit, or other
entitlement entitlement, specifically permitting
cultivation pursuant to these provisions, from the county,
city, or city and county in which the cultivation will occur.
(3) A person or entity shall not submit an application for a
license issued by the state pursuant to this section if the
proposed cultivation of marijuana will violate the provisions of any
local ordinance or regulation, or if medical marijuana is
prohibited by the county, city, or city and county in which the
cultivation is proposed to occur. occur,
either expressly or otherwise under principles of permissive zoning.
(c) (1) Except as specified in paragraph (2), and without
limiting any other local regulation, a county, city, or city
and county, through its current or future land use regulations or
ordinance, may issue or deny a conditional permit to cultivate
medical marijuana. marijuana pursuant to this
section. A county, city, or city and county may inspect the
intended cultivation site for suitability prior to issuing a
conditional permit. After the city, county, or city and county have
approved a conditional permit, the applicant shall apply for a state
medical marijuana cultivation license from the division. A locally
issued conditional cultivation permit shall only become active upon
licensing by the division and receiving final local approval. A
person shall not cultivate medical marijuana prior to obtaining both
a conditional permit from the county, city, or city and county and a
state medical marijuana cultivation license from the division.
(2) If a county, city, or city and county does not have land use
regulations or ordinances pertaining to
regulating or prohibiting the cultivation of
marijuana, does not have a local cultivation permit process in place,
marijuana, either expressly or otherwise under
principles of permissive zoning, or chooses not to administer a
conditional permit program, program pursuant
to this section, then commencing March 1, 2016, the division
shall be the sole licensing authority for medical marijuana
cultivation applicants in that county, city, or city and county.
(d) (1) The division, in consultation with, but not limited to,
the State Water Resources Control Board and the Department of Fish
and Wildlife, shall implement a unique identification program for
medical marijuana. In implementing the program, the division shall
consider issues, including, but not limited to, water use and
environmental impacts. In implementing the program, the division
shall ensure that individual and cumulative effects of water
diversion and discharge associated with cultivation do not affect the
instream flows needed for fish spawning, migration, and rearing, and
the flows needed to maintain natural flow variability. The division
shall ensure that cultivation will not negatively impact springs,
riparian wetlands, and aquatic habitats.
(2) The division shall establish a program for the identification
of permitted medical marijuana plants at a cultivation site during
the cultivation period. The unique identifier shall be attached at
the base of each plant. A unique identifier, such as, but not limited
to, a zip tie, shall be issued for each medical marijuana plant.
(3) The division may charge a fee to cover the reasonable costs of
issuing the unique identifier and monitoring, tracking, and
inspecting each medical marijuana plant.
(e) (1) On and after June 1, 2016, there is hereby imposed a tax
on a licensed medical marijuana cultivator at the rate of $50 per
medical marijuana plant with a unique identifier. The unique
identifiers shall serve as the indicator for quantity purposes of
sales.
(2) A licensed medical marijuana distributor shall charge the
licensed medical marijuana cultivator the amount of the tax as a
charge that is separate from, and not included in, any other fee,
charge, or other amount paid by the medical marijuana distributor.
(3) The licensed medical marijuana distributor shall collect the
tax from the licensed medical marijuana cultivator at the time of
sale, and may retain reimbursement pursuant to regulations that shall
be approved by the State Board of Equalization before June 1, 2016,
for startup costs associated with the collection of the tax, to be
taken on the first return or next consecutive returns until the
entire reimbursement amount is retained.
(4) The licensed medical marijuana distributor shall separately
state the amount of the tax imposed under this subdivision on the
sales receipt given by the licensed medical marijuana distributor to
the licensed medical marijuana cultivator at the time of sale.
(5) The State Board of Equalization shall administer and collect
the tax imposed by this subdivision pursuant to the Fee Collection
Procedures Law (Part 30 (commencing with Section 55001) of Division 2
of the Revenue and Taxation Code) with those changes as may be
necessary to conform to this section. For purposes of this
subdivision, the references in the Fee Collection Procedures Law to
"fee" shall include the tax imposed by this subdivision, and
references to "feepayer" shall include the licensed medical marijuana
distributor.
(6) (A) The tax is required to be collected by a licensed medical
marijuana distributor and any amount unreturned to the licensed
medical marijuana cultivator who paid an amount in excess of the tax,
but was collected from the licensed medical marijuana cultivator
under the representation by the licensed medical marijuana
distributor that it was owed as a tax, constitutes debts owed by the
licensed medical marijuana distributor to this state.
(B) A licensed medical marijuana cultivator is liable for the tax
until it has been paid to the state, except that payment to a
licensed medical marijuana distributor relieves the licensed medical
marijuana cultivator from further liability for the tax. Any tax
collected from a licensed medical marijuana cultivator that has not
been remitted to the State Board of Equalization shall be a debt owed
to the state by the licensed medical marijuana distributor required
to collect and remit the tax. This subdivision does not impose any
obligation upon a licensed medical marijuana distributor to take any
legal action to enforce the collection of the tax imposed by this
subdivision.
(7) The State Board of Equalization may prescribe, adopt, and
enforce regulations relating to the administration and enforcement of
this subdivision, including, but not limited to, collections,
reporting, refunds, and appeals. The State Board of Equalization may
consult with the division, and the division shall provide to the
board any information necessary for the proper administration of the
tax imposed by this subdivision.
(8) (A) The tax imposed by this subdivision is due and payable to
the State Board of Equalization quarterly on or before the last day
of the month next succeeding each quarterly period.
(B) On or before the last day of the month following each
quarterly period, a return for the preceding quarterly period shall
be filed with the State Board of Equalization using electronic media,
in the form prescribed by the State Board of Equalization. Returns
shall be authenticated in a form or pursuant to methods, as
prescribed by the State Board of Equalization.
(9) (A) A licensed medical marijuana cultivator required to pay
the tax imposed under this subdivision shall register with the State
Board of Equalization. Every application for registration shall be
made in a form prescribed by the State Board of Equalization and
shall set forth the name under which the applicant transacts or
intends to transact business, the location of the person's place or
places of business, and any other information that the State Board of
Equalization may require. An application for registration shall be
authenticated in a form or pursuant to methods as may be prescribed
by the State Board of Equalization.
(B) An application for registration filed pursuant to this section
may be filed using electronic media as prescribed by the State Board
of Equalization. Electronic media includes, but is not limited to,
computer modem, magnetic media, optical disc, facsimile machine, or
telephone.
(10) A licensed medical marijuana cultivator shall sell his or her
medical marijuana products only to a licensed medical marijuana
distributor and shall not make any other sales of medical marijuana.
Medical marijuana plants that do not contain a unique identifier
shall not be sold by a licensed cultivator to a licensed distributor.
(11) The State Board of Equalization shall deposit all revenues,
less refunds, collected pursuant to this subdivision into the
Marijuana Production and Environment Mitigation Fund, which is hereby
created in the State Treasury. Notwithstanding Section 13340 of the
Government Code, all moneys deposited in the fund are hereby
continuously appropriated, without regard to fiscal years, to the
State Board of Equalization for the purposes of this section, to be
allocated by the board in the following manner:
(A) Five dollars ($5) shall go to the division to administer the
unique identifier program described in subdivision (d).
(B) Fifteen dollars ($15) shall go to the division for
disbursement to local law enforcement-related activities, state law
enforcement-related activities, or both, pertaining to illegal
marijuana cultivation. Funds allocated pursuant to this subparagraph
shall be allocated on a competitive grant application process
administered by the division. The division shall promulgate
guidelines for the grant process as soon as administratively
possible, but no later than April 1, 2016.
(C) Fifteen dollars ($15) shall go to the Natural Resources
Agency to fund a competitive grant program for environmental cleanup
and restoration of public and private lands that have been damaged
from illegal marijuana cultivation. Funds allocated pursuant to this
subparagraph shall be prioritized to restoration and cleanup
projects, on public or private lands, based on the level of damages
that have occurred. Not less than 35 percent of the funds shall be
used for these purposes related to public lands, and not less than 20
percent of the funds collected shall be used for these purposes in
regard to private lands. The agency shall consult and partner with
counties, cities, or cities and counties, and may partner with
nonprofit organizations recognized by the California Attorney General'
s office, other appropriate state agencies, and the appropriate
federal entities within the United State Department of Interior, for
the purposes of awarding grants to state or local government entities
and nonprofit organizations that engage in environmental cleanup and
restoration. The agency shall promulgate guidelines for the grant
process as soon as administratively possible, but no later than April
1, 2016.
(D) Fifteen dollars ($15) shall go to the multiagency task force,
the Department of Fish and Wildlife, and the State Water Resources
Control Board project to address the Environmental Impacts of
Cannabis Cultivation and to respond to the damages caused from
marijuana cultivation on public and private lands in California.
(f)
(e) (1) On or before January 1, 2021, the following
entities shall submit a report to the Legislature:
(A) The State Board of Equalization shall submit a report on the
total amount of revenue that was collected over the five-year time
period from the tax imposed pursuant to subdivision (e).
(B)
(A) The multiagency task force, the Department of Fish
and Wildlife, and the State Water Resources Control Board, shall
submit a report on the project to address the Environmental Impacts
of Cannabis Cultivation and how funds allocated to those entities
pursuant to subdivision (e) Section 31013 of
the Revenue and Taxation Code have been used for those
purposes.
(C)
(B) The Department of Justice shall submit a report on
how local and state law enforcement agencies have used funds
allocated pursuant to subdivision (e) Section
31013 of the Revenue and Taxation Code to address illegal
marijuana cultivation and related activates.
(D)
(C) The Natural Resources Agency shall submit a report
on how funds allocated to it pursuant to subdivision (e)
Section 31013 of the Revenue and Taxation Code
have been used for environmental cleanup and restoration of public
and private lands that have been damaged from illegal marijuana
cultivation.
(2) It is the intent of the Legislature to use the reports
required by this subdivision to determine the necessity of a
readjustment to the tax imposed pursuant to subdivision (e).
Part 13.5 (commencing with Section 31001) of Division
2 of t he Revenue and Taxation Code.
(3) The reports required by this subdivision shall be submitted in
compliance with Section 9795 of the Government Code.
(g) (1) Except as specified in paragraph (3), no later than March
1, 2016, a county, city, or city and county
(f) A county board of supervisors or
city council may adopt a resolution or ordinance to be the
responsible entity for purposes of administering the unique
identification program specified in subdivision (d), in which case,
the county, city, or city and county county
board of supervisors or city council shall designate the
appropriate entity to issue the unique identifiers. Counties may
designate the local agricultural commissioner, sheriff, or other
appropriate entity. Cities may designate the city planning and
building department, the Chief of Police, or other appropriate
entity. A county, city, or city and county may charge a fee to cover
the reasonable costs of issuing the unique identifier and monitoring,
tracking, and inspecting each medical marijuana plant.
plant, in addition to any other local fees or taxes
imposed by the county. Upon adoption of an ordinance or resolution by
the county board of supervisors or city council, the
division shall cooperate with that local jurisdiction to phase out
the division's operation of the program.
(2) Licensed cultivators and licensed distributors shall comply
with subdivision (e) in a county, city, or city and county that
elects to administer the unique identification program pursuant to
paragraph (1).
(3) If a county, city, or city and county decides at a later date
to be the responsible entity for purposes of administering the unique
identification program specified in subdivision (d), the county,
city, or city and county may adopt an ordinance or resolution to
participate in the provisions of this subdivision at a later date,
but no later than July 1, 2018, in which case the division shall
cooperate with that local jurisdiction to phase out the division's
operation of the program.
(h) The unique identifier program established pursuant to this
section does not apply to a county, city, or city and county that has
an existing ordinance pertaining to the cultivation of marijuana
that provides for the identification of individual plants during the
cultivation period. A county, city, or city and county may choose to
opt in to the unique identifier program administered by the division
to be eligible for funds pursuant to subdivision (e). A county, city,
or city and county that does not participate in a unique identifier
program pursuant to this section shall not be eligible for funds
pursuant to subdivision (e).
(i)
(g) This section does not apply to a qualified patient
cultivating marijuana pursuant to Section 11362.5 if he or she
cultivates marijuana for his or her personal medical use and does not
sell, distribute, donate, or provide marijuana to any other person
or entity. This section does not apply to a primary caregiver
cultivating marijuana pursuant to Section 11362.5 if he or she
cultivates marijuana exclusively for the personal medical use of no
more than five specified qualified patients for whom he or she is the
primary caregiver within the meaning of Section 11362.7 and who does
not receive remuneration for these activities, except for
compensation provided in full compliance with subdivision (c) of
Section 11362.765. This section does not preclude a county,
city, or city and county from regulating or banning the cultivation,
possession, storage, manufacture, transport, provision, distribution,
donation, or sale of marijuana, or any other activity, by a person
specified in this subdivision, or impair the enforcement of the same.
Exemption from the requirements of this section does
not limit or prevent a city, county, or city and county from
regulating or banning the cultivation, storage, manufacture,
transport, provision, or other activity by the exempt person, or
impair the enforcement of that regulation or ban.
(h) This section does not prevent a city, county, or city and
county from doing any of the following:
(1) Adopting local ordinances, whether consistent or inconsistent
with this section, that do either of the following:
(A) Regulate the location, operation, or establishment of a
licensed medical marijuana cultivator or a person that cultivates,
processes, possesses, stores, manufactures, tests, transports,
distributes, or sells medical marijuana.
(B) Prohibit medical marijuana activity within its jurisdiction.
(2) Providing for the administrative, civil, or criminal
enforcement of the ordinances described in paragraph (1).
(3) Enacting and enforcing other laws or ordinances pursuant to
the authority granted by Section 7 of Article XI of the California
Constitution.
(i) This section does not preclude a county from establishing a
fee for the operation of a licensed medical marijuana cultivator
within the jurisdiction of the county.
(j) This section does not preempt any local ordinance regulating
or banning cultivation of medical marijuana, or otherwise prevent or
limit a city, county, or city and county from adopting or enforcing a
zoning ordinance or other law, ordinance, or regulation, that bans
or regulates the location, operation, or establishment of an entity
that cultivates medical marijuana.
SEC. 3. Part 13.5 (commencing with Section 31001)
is added to Division 2 of the Revenue and Taxation Code
, to read:
PART 13.5. Medical Marijuana Tax
CHAPTER 1. GENERAL PROVISIONS AND DEFINITIONS
31001. This part shall known and may be cited as the Medical
Marijuana Tax Law.
31002. As used in this part, the following terms have the
following definitions:
(a) "Marijuana" means all parts of the plant Cannabis sativa L.,
Cannabis indica, or Cannabis ruderalis, whether growing or not; the
seeds thereof; the resin, whether crude or purified, extracted from
any part of the plant; and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds, or
resin. "Cannabis" does not include the mature stalks of the plant,
fiber produced from the stalks, oil or cake made from the seeds of
the plant, any other compound, manufacture, salt, derivative,
mixture, or preparation of the mature stalks (except the resin
extracted therefrom), fiber, oil, or cake, or the sterilized seed of
the plant which is incapable of germination. "Cannabis" also means
the separated resin, whether crude or purified, obtained from
marijuana. Without limiting the definition, "cannabis" also means
marijuana as defined by Section 11018 of the Health and Safety Code,
as enacted by Chapter 1407 of the Statutes of 1972.
(b) "Marijuana flowers" means the flowers of the plant specified
in subdivision (a). "Marijuana flowers" does not include any part of
the plant other than the flowers.
(c) "Marijuana leaves" means the leaves of the plant specified in
subdivision (a). "Marijuana leaves" does not include any part of the
plant other than the leaves.
(d) "Medical marijuana tax" means the tax imposed pursuant to this
part.
(e) "Cultivation" means any activity involving the planting,
growing, harvesting, drying, curing, grading, or trimming of
marijuana.
(f) "Cultivator" means a person that plants, grows, cultivates,
harvests, dries, cures, grades, or trims medical marijuana, or that
does all or any combination of those activities.
(g) "Designated entity" means an entity defined by Section ___ of
the Business and Professions Code, or an entity designated by the
board.
(h) "Immature marijuana plant" means a marijuana plant with no
observable flowers or buds.
(i) "Medical marijuana," "medical marijuana product," or
"marijuana product" means a product containing marijuana, including,
but not limited to, concentrates and extractions intended to be sold
for use by medical marijuana patients in California pursuant to the
Compassionate Use Act of 1996 (Section 11362.5 of the Health and
Safety Code).
(j) "Sale" means the transfer of title or possession for
consideration in any manner or by any means whatever.
CHAPTER 2. IMPOSITION OF TAX
31005. (a) A marijuana tax shall be imposed upon each cultivator
and shall be collected by the designated entity at the time of
distribution at the following rates:
(1) $___ per ounce on all cannabis flowers.
(2) $___ per ounce on all cannabis leaves.
(3) $___ per immature cannabis plant.
(b) The tax imposed by this section shall be measured by the
quantities of cannabis flowers, cannabis leaves, and immature
cannabis plants sold by any cannabis cultivator to the designated
entity.
(c) The designated entity shall separately state the amount of the
tax imposed under this part on the sales receipt given by the
designated entity to the licensed medical marijuana cultivator at the
time of sale.
(d) Any claim for exemption from the tax pursuant to this part
shall be made to the board in the manner prescribed by the board.
31006. The Legislative Analyst's Office shall regularly review
the tax levels established under this part and make recommendations
to the legislature, as appropriate, regarding adjustments that would
further the goal of addressing public safety and the environmental
impacts caused by the proliferation of marijuana cultivation.
CHAPTER 3. ADMINISTRATION
31010. (a) The board shall administer and collect the tax imposed
by this part pursuant to the Fee Collection Procedures Law (Part 30
(commencing with Section 55001) of Division 2 of the Revenue and
Taxation Code) with those changes as may be necessary to conform to
this section. For purposes of this part, the references in the Fee
Collection Procedures Law to "fee" shall include the tax imposed by
this part, and references to "feepayer" shall include a person
required to pay the cannabis tax imposed by this part.
(b) The tax that is required to be collected by the designated
entity, and any amount unreturned to the medical marijuana cultivator
that is not owed as part of the tax, but was collected from the
medical marijuana cultivator under the representation by the
designated entity that it was owed as a tax, constitutes debts owed
by the designated entity to the state.
(c) A medical marijuana cultivator is liable for the tax until it
has been paid to the state, except that payment to the designated
entity relieves the medical marijuana cultivator from further
liability for the tax. Any tax collected from a medical marijuana
cultivator that has not been remitted to the board shall be a debt
owed to the state by the designated entity required to collect and
remit the tax. This part does not impose any obligation upon the
designated entity to take any legal action to enforce the collection
of the tax imposed by this part.
31011. (a) The board may prescribe, adopt, and enforce
regulations relating to the implementation, administration, and
enforcement of this part, including, but not limited to, applicant
requirements, collections, reporting, refunds, and appeals.
(b) 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.
31012. (a) The marijuana tax is due and payable to the board
quarterly on or before the last day of the month following each
calendar quarter.
(b) On or before the last day of the month following each calendar
quarter, a return for the preceding calendar quarter shall be filed
using electronic media with the board.
(c) Returns shall be authenticated in a form or pursuant to
methods as may be prescribed by the board.
31013. (a) The Marijuana Production and Environment Mitigation
Fund is hereby created in the State Treasury. The fund shall consist
of all medical marijuana taxes, interest, penalties, and other
amounts collected and paid to the board pursuant to this part, less
payments of refunds and reimbursement to the board for expenses
incurred in the administration and collection of the medical
marijuana tax.
(b) Notwithstanding Section 13340 of the Government Code, all
moneys deposited in the Marijuana Production and Environment
Mitigation Fund are hereby continuously appropriated, without regard
to fiscal years, in the following manner:
(1) Ten percent to the Division of Medical Cannabis Cultivation to
administer the unique identifier program specified in Section
11362.777 of the Health and Safety Code.
(2) Thirty percent to the Division of Medical Cannabis Cultivation
for disbursement to local law enforcement-related activities, state
law enforcement-related activities, or both, pertaining to illegal
marijuana cultivation. Funds allocated pursuant to this subparagraph
shall be allocated on a competitive grant application process
administered by the Division of Medical Cannabis Cultivation. The
Division of Medical Cannabis Cultivation shall promulgate guidelines
for the grant process as soon as administratively possible, but no
later than April 1, 2016.
(3) Thirty percent to the Natural Resources Agency to fund a
competitive grant program for environmental cleanup and restoration
of public and private lands that have been damaged by illegal
marijuana cultivation. Funds allocated pursuant to this subparagraph
shall be prioritized to restoration and cleanup projects, on public
or private lands, based on the level of damages that have occurred.
Not less than 35 percent of the funds shall be used for these
purposes related to public lands, and not less than 20 percent of the
funds collected shall be used for these purposes in regard to
private lands. The agency shall consult and partner with counties,
cities, or cities and counties, and may partner with nonprofit
organizations recognized by the California Attorney General's office,
other appropriate state agencies, and the appropriate federal
entities, including, but not limited to, the United States Department
of Agriculture and the United States Department of the Interior, for
the purposes of awarding grants to state or local government
entities and nonprofit organizations that engage in environmental
cleanup and restoration. The agency shall promulgate guidelines for
the grant process as soon as administratively possible, but no later
than April 1, 2016.
(4) Thirty percent to the multiagency task force, the Department
of Fish and Wildlife and State Water Resources Control Board pilot
project to address the Environmental Impacts of Cannabis Cultivation
and to respond to the damages caused by marijuana cultivation on
public and private lands in California, specified in Section 13276 of
the Water Code.
CHAPTER 4. TRACK AND TRACE PROCESS
31020. The board shall adopt a system for reporting the movement
of cannabis and cannabis products throughout the distribution chain.
The system shall also employ secure packaging and be capable of
providing information to the board. This system shall capture, at a
minimum, all of the following:
(a) The amount of tax due by the designated entity.
(b) The name, address, and license number of the designated entity
that remitted the tax.
(c) The name, address, and license number of the succeeding entity
receiving the product.
(d) The transaction date.
(e) Any other information deemed necessary by the board for the
taxation and regulation of marijuana and marijuana products.
31021. (a) The board shall submit a report to the Legislature on
the total amount of revenue that was collected for the five-year
period from the operative date of the tax imposed pursuant to this
part. The report is due to the Legislature on or before the last day
of the month commencing 180 days after the 5-year period from the
operative date of the tax imposed under this part.
(b) The report required by this section shall be submitted in
compliance with Section 9795 of the Government Code.
CHAPTER 5. OPERATIVE DATE AND FUNDING
31030. This part shall become operative on or after the first day
of the first calendar quarter commencing more than 270 days after
adequate funding has been received by the board to implement and
administer this part, or on or after the first day of the first
calendar quarter commencing more than 180 days from the adoption and
funding of the cannabis track and trace process required pursuant to
Section 31020, whichever is later. The board shall post a notice on
its Internet Web site when this requirement has been satisfied.
31031. Funds for the establishment and support of the regulatory
activities required pursuant to this part shall be advanced as a
General Fund or special fund loan, and shall be repaid by the board
from the initial proceeds from fees collected pursuant to this part
or any rule or regulation adopted pursuant to this part, no later
than six months after the operative date specified in Section 31030.
SEC. 4. Section 13276 is added to the Water Code, to read:
13276. (a) The multiagency task force, the Department of
Fish and Wildlife and State Water Resources Control Board pilot
project to address the Environmental Impacts of Cannabis Cultivation,
assigned to respond to the damages caused by marijuana cultivation
on public and private lands in California, shall continue its
enforcement efforts on a permanent basis and expand them to a
statewide level to ensure the reduction of adverse impacts of
marijuana cultivation on water quality and on fish and wildlife
throughout the state.
Each
(b) Each regional board shall,
and the State Water Resources Control Board may, address discharges
of waste resulting from medical marijuana cultivation and associated
activities, including by adopting a general permit, establishing
waste discharge requirements, or taking action pursuant to Section
13269. In addressing these discharges, each regional board shall
include conditions to address items that include, but are not limited
to, all of the following:
(a)
(c) Site development and maintenance, erosion control,
and drainage features.
(b)
(d) Stream crossing installation and maintenance.
(c)
(e) Riparian and wetland protection and management.
(d)
(f) Soil disposal.
(e)
(g) Water storage and use.
(f)
(h) Irrigation runoff.
(g)
(i) Fertilizers and soil.
(h)
(j) Pesticides and herbicides.
(i)
(k) Petroleum products and other chemicals.
(j)
(l) Cultivation-related waste.
(k)
(m) Refuse and human waste.
(l)
(n) Cleanup, restoration, and mitigation.
SEC. 5. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.
SEC. 6. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to address the damage done by illegal marijuana
cultivation at the earliest time possible, it is necessary that this
act take effect immediately.