SB 51: Cannabis provisional licenses: local equity applicants.

Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities, and establishes the Department of Cannabis Control to administer its provisions.

Under existing law, the California Cannabis Equity Act, a local equity applicant is an applicant who has submitted, or will submit, an application to a local jurisdiction to engage in commercial cannabis activity and who meets the requirements of that jurisdictions local equity program, which focuses on inclusion and support of individuals and communities in Californias cannabis industry who are linked to populations or neighborhoods that were negatively or disproportionately impacted by cannabis criminalization, as specified.

MAUCRSA, until June 30, 2023, authorized the department, in its sole discretion, to issue a provisional license for a local equity license application if the applicant meets specified requirements. MAUCRSA prohibits the department from renewing a provisional license after January 1, 2025, and provides that no provisional license is effective after January 1, 2026.

This bill, until January 1, 2031, would additionally authorize the department, in its sole discretion, to issue a provisional license for a local equity applicant for retailer activities if the applicant meets specified requirements. The bill would authorize the department, in its sole discretion, to renew a provisional license for a local equity applicant for retailer activities until it issues or denies the provisional licensees annual license, subject to specified requirements, or until 5 years from the date the provisional license was originally issued, whichever is earlier. By extending provisional licensure, the applications for which are required to be signed under penalty of perjury, the bill would expand the scope of the crime of perjury, and would thereby impose a state-mandated local program. The bill would require the department to report to the appropriate committees of the Legislature on, among other things, the number of provisional licenses that have been granted under the bills provisions.

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.

AUMA authorizes the Legislature to amend its provisions by a ²/₃ vote of each house if the amendment furthers its purposes and intent, except as provided.

This bill would declare that its provisions further the purposes and intent of AUMA.