SB 603: Cannabis license deferral and waiver fee program: tax credit.
- Session Year: 2021-2022
- House: Senate
- Latest Version Date: 2021-05-20
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 control and regulation of commercial medicinal and adult-use cannabis activities. MAUCRSA generally divides responsibility for the state licensure and regulation of commercial cannabis activity among the Department of Consumer Affairs, the Department of Food and Agriculture, and the State Department of Public Health. MAUCRSA requires these licensing authorities to establish a scale of application, licensing, and renewal fees, based upon the cost of enforcing MAUCRSA, as specified.
AUMA establishes the California Cannabis Tax Fund as a continuously appropriated fund consisting of specified taxes, interest, penalties, and other amounts imposed by AUMA. AUMA requires the Controller to make, as specified, disbursements from the fund for various purposes, including, among others, administering programs related to community reinvestment, youth education, prevention, early intervention and treatment, environmental restoration and protection, and public health and safety. AUMA prohibits the Legislature, prior to July 1, 2028, from changing the allocations to those programs. Before making those disbursements, AUMA requires the Controller to disburse funds to various state entities for reasonable costs in carrying out their duties under AUMA, including to the state licensing authorities for implementing, administering, and enforcing MAUCRSA to the extent those costs are not reimbursed by the application, licensing, and renewal fees.
MAUCRSA requires the Bureau of Cannabis Control in the Department of Consumer Affairs to administer a grant program to assist with the development of a local jurisdictions local equity program or to assist applicants and licensees in a local jurisdictions equity program, and authorizes the bureau to provide technical assistance to the local equity program. MAUCRSA defines local equity program for these purposes to mean a program adopted or operated by a local jurisdiction that 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.
MAUCRSA required a state licensing authority, on or before January 1, 2021, to develop and implement a program to provide a deferral or waiver for an application fee, a licensing fee, or a renewal fee for a needs-based applicant or needs-based licensee, as specified. Existing law made the operation of those provisions contingent upon an appropriation in the annual Budget Act or another statute for purposes of those provisions.
This bill would remove the above-mentioned date and the appropriation condition on the operation of those provisions date, thereby requiring a state licensing authority to develop and implement that fee deferral or waiver program. program upon an appropriation in the annual Budget Act or another statute for that purpose.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by that law. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2021, and before January 1, 2026, equal to the amount of state and local cannabis licensing fees paid or incurred by a local equity applicant or a local equity licensee, as those terms are defined by MAUCRSA, that are not otherwise reimbursed by a grant or other funds. The bill also would state the intent of the Legislature to comply with the additional information requirement for any bill authorizing a new income tax credit.
AUMA authorizes the Legislature to amend the act to further the purposes and intent of the act with a 2/3 vote of the membership of both houses of the Legislature, except as provided.
This bill would declare that its provisions further the purposes and intent of AUMA.
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 control and regulation of commercial medicinal and adult-use cannabis activities. MAUCRSA generally divides responsibility for the state licensure and regulation of commercial cannabis activity among the Department of Consumer Affairs, the Department of Food and Agriculture, and the State Department of Public Health. MAUCRSA requires these licensing authorities to establish a scale of application, licensing, and renewal fees, based upon the cost of enforcing MAUCRSA, as specified.
AUMA establishes the California Cannabis Tax Fund as a continuously appropriated fund consisting of specified taxes, interest, penalties, and other amounts imposed by AUMA. AUMA requires the Controller to make, as specified, disbursements from the fund for various purposes, including, among others, administering programs related to community reinvestment, youth education, prevention, early intervention and treatment, environmental restoration and protection, and public health and safety. AUMA prohibits the Legislature, prior to July 1, 2028, from changing the allocations to those programs. Before making those disbursements, AUMA requires the Controller to disburse funds to various state entities for reasonable costs in carrying out their duties under AUMA, including to the state licensing authorities for implementing, administering, and enforcing MAUCRSA to the extent those costs are not reimbursed by the application, licensing, and renewal fees.
MAUCRSA requires the Bureau of Cannabis Control in the Department of Consumer Affairs to administer a grant program to assist with the development of a local jurisdictions local equity program or to assist applicants and licensees in a local jurisdictions equity program, and authorizes the bureau to provide technical assistance to the local equity program. MAUCRSA defines local equity program for these purposes to mean a program adopted or operated by a local jurisdiction that 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.
MAUCRSA required a state licensing authority, on or before January 1, 2021, to develop and implement a program to provide a deferral or waiver for an application fee, a licensing fee, or a renewal fee for a needs-based applicant or needs-based licensee, as specified. Existing law made the operation of those provisions contingent upon an appropriation in the annual Budget Act or another statute for purposes of those provisions.
This bill would remove the above-mentioned date and the appropriation condition on the operation of those provisions thereby requiring a state licensing authority to develop and implement that fee deferral or waiver program.
The Personal Income Tax Law allows and the Corporation Tax Law allow various credits against the taxes imposed by that law. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2021, and before January 1, 2026, equal to the amount of state and local cannabis licensing fees paid or incurred by a local equity applicant or a local equity licensee, as those terms are defined by MAUCRSA. MAUCRSA, that are not otherwise reimbursed by a grant or other funds. The bill also would state the intent of the Legislature to comply with the additional information requirement for any bill authorizing a new income tax credit.
AUMA authorizes the Legislature to amend the act to further the purposes and intent of the act with a 2/3 vote of the membership of both houses of the Legislature, except as provided.
This bill would declare that its provisions further the purposes and intent of AUMA.
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, Act (MAUCRSA), among other things, consolidates the control and regulation of commercial medicinal and adult-use cannabis activities. MAUCRSA generally divides responsibility for the state licensure and regulation of commercial cannabis activity among the Department of Consumer Affairs, the Department of Food and Agriculture, and the State Department of Public Health. MAUCRSA requires these licensing authorities to establish a scale of application, licensing, and renewal fees, based upon the cost of enforcing MAUCRSA, as specified.
AUMA establishes the California Cannabis Tax Fund as a continuously appropriated fund consisting of specified taxes, interest, penalties, and other amounts imposed by AUMA. AUMA requires the Controller to make, as specified, disbursements from the fund for various purposes, including, among others, administering programs related to community reinvestment, youth education, prevention, early intervention and treatment, environmental restoration and protection, and public health and safety. AUMA prohibits the Legislature, prior to July 1, 2028, from changing the allocations to those programs. Before making those disbursements, AUMA requires the Controller to disburse funds to various state entities for reasonable costs in carrying out their duties under AUMA, including to the state licensing authorities for implementing, administering, and enforcing MAUCRSA to the extent those costs are not reimbursed by the application, licensing, and renewal fees.
MAUCRSA requires the Bureau of Cannabis Control in the Department of Consumer Affairs to administer a grant program to assist with the development of a local jurisdictions local equity program or to assist applicants and licensees in a local jurisdictions equity program, and authorizes the bureau to provide technical assistance to the local equity program. MAUCRSA defines local equity program for these purposes to mean a program adopted or operated by a local jurisdiction that 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.
MAUCRSA required a state licensing authority, on or before January 1, 2021, to develop and implement a program to provide a deferral or waiver for an application fee, a licensing fee, or a renewal fee for a needs-based applicant or needs-based licensee, as specified. Existing law made the operation of those provisions contingent upon an appropriation in the annual Budget Act or another statute for purposes of those provisions.
This bill would remove the above-mentioned date and the appropriation condition on the operation of those provisions thereby requiring a state licensing authority to develop and implement that fee deferral or waiver program.
The Personal Income Tax Law allows various credits against the taxes imposed by that law. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2021, equal to the amount of state and local cannabis licensing fees paid by a local equity applicant or a local equity licensee, as those terms are defined by MAUCRSA. The bill also would state the intent of the Legislature to comply with the additional information requirement for any bill authorizing a new income tax credit.
AUMA authorizes the Legislature to amend the act to further the purposes and intent of the act with a 2/3 vote of the membership of both houses of the Legislature, except as provided.
This bill would declare that its provisions further the purposes and intent of AUMA.
This bill would make a nonsubstantive change to the provision that states this intent.Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act, among other things, consolidates the control and regulation of commercial medicinal and adult-use cannabis activities.
This bill would make a nonsubstantive change to the provision that states this intent.
(a)Notwithstanding Sections 26012 and 26180, a licensing authority shall develop and implement a program to provide a deferral or waiver for an application fee, a licensing fee, or renewal fee otherwise required by this division for a needs-based applicant or needs-based licensee.
(b)(1)At least 60 percent of the total dollar amount of deferrals of fees pursuant to the program developed and implemented by a licensing authority pursuant to subdivision (a) shall be allocated to the deferral of fees for local equity applicants and licensees.
(2)At least 60 percent of the total dollar amount of waivers of fees pursuant to the program developed and implemented by a licensing authority pursuant to subdivision (a) shall be allocated to the waiver of fees for local equity applicants and licensees.
(c)A licensing authority may adopt emergency regulations to implement this section. The adoption, amendment, repeal, or readoption of a regulation authorized by this section is deemed to address an emergency, for purposes of Sections 11346.1 and 11349.6 of the Government Code, and the licensing authorities are hereby exempted from the requirements of subdivision (b) of Section 11346.1 of the Government Code.
(d)The operation of this section is contingent upon an appropriation in the annual Budget Act or another statute for purposes of this section.
SEC. 2.Section 17053.71 is added to the Revenue and Taxation Code, to read:17053.71.(a)For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed against the net tax, as defined by Section 17039, a cannabis equity business tax credit equal to the amount of state and local cannabis licensing fees paid or incurred by a qualified taxpayer that are not otherwise reimbursed by a grant or other funds.
(b)For purposes of this section, qualified taxpayer means either a local equity applicant or local equity licensee as defined in Section 26240 of the Business and Professions Code.
(c)In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding six taxable years if necessary, until the credit is exhausted.
SEC. 3.Section 23687.5 is added to the Revenue and Taxation Code, to read:23687.5.(a)For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed against the tax, as defined by Section 23036, a cannabis equity business tax credit equal to the amount of state and local cannabis licensing fees paid or incurred by a qualified taxpayer that are not otherwise reimbursed by a grant or other funds.
(b)For purposes of this section, qualified taxpayer means either a local equity applicant or local equity licensee as defined in Section 26240 of the Business and Professions Code.
(c)In the case where the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following taxable year, and succeeding six taxable years if necessary, until the credit is exhausted.
SEC. 4.It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code.
SEC. 5.The Legislature finds and declares that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.
(a)Notwithstanding Sections 26012 and 26180, a licensing authority shall develop and implement a program to provide a deferral or waiver for an application fee, a licensing fee, or renewal fee otherwise required by this division for a needs-based applicant or needs-based licensee.
(b)(1)At least 60 percent of the total dollar amount of deferrals of fees pursuant to the program developed and implemented by a licensing authority pursuant to subdivision (a) shall be allocated to the deferral of fees for local equity applicants and licensees.
(2)At least 60 percent of the total dollar amount of waivers of fees pursuant to the program developed and implemented by a licensing authority pursuant to subdivision (a) shall be allocated to the waiver of fees for local equity applicants and licensees.
(c)A licensing authority may adopt emergency regulations to implement this section. The adoption, amendment, repeal, or readoption of a regulation authorized by this section is deemed to address an emergency, for purposes of Sections 11346.1 and 11349.6 of the Government Code, and the licensing authorities are hereby exempted from the requirements of subdivision (b) of Section 11346.1 of the Government Code.
SEC. 2.Section 17053.71 is added to the Revenue and Taxation Code, to read:17053.71.(a)For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed against the net tax, as defined by Section 17039, a cannabis equity business tax credit equal to the amount of state and local cannabis licensing fees paid or incurred by a qualified taxpayer. taxpayer that are not otherwise reimbursed by a grant or other funds.
(b)For purposes of this section, qualified taxpayer means either a local equity applicant or local equity licensee as defined in Section 26240 of the Business and Professions Code.
(c)In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding six taxable years if necessary, until the credit is exhausted.
SEC. 3.Section 23687.5 is added to the Revenue and Taxation Code, to read:23687.5.(a)For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed against the tax, as defined by Section 23036, a cannabis equity business tax credit equal to the amount of state and local cannabis licensing fees paid or incurred by a qualified taxpayer that are not otherwise reimbursed by a grant or other funds.
(b)For purposes of this section, qualified taxpayer means either a local equity applicant or local equity licensee as defined in Section 26240 of the Business and Professions Code.
(c)In the case where the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following taxable year, and succeeding six taxable years if necessary, until the credit is exhausted.
SEC. 3.SEC. 4.It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code.
SEC. 4.SEC. 5.The Legislature finds and declares that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.
(a)Notwithstanding Sections 26012 and 26180, on or before January 1, 2021, a licensing authority shall develop and implement a program to provide a deferral or waiver for an application fee, a licensing fee, or renewal fee otherwise required by this division for a needs-based applicant or needs-based licensee.
(b)(1)At least 60 percent of the total dollar amount of deferrals of fees pursuant to the program developed and implemented by a licensing authority pursuant to subdivision (a) shall be allocated to the deferral of fees for local equity applicants and licensees.
(2)At least 60 percent of the total dollar amount of waivers of fees pursuant to the program developed and implemented by a licensing authority pursuant to subdivision (a) shall be allocated to the waiver of fees for local equity applicants and licensees.
(c)A licensing authority may adopt emergency regulations to implement this section. The adoption, amendment, repeal, or readoption of a regulation authorized by this section is deemed to address an emergency, for purposes of Sections 11346.1 and 11349.6 of the Government Code, and the licensing authorities are hereby exempted from the requirements of subdivision (b) of Section 11346.1 of the Government Code.
(d)The operation of this section is contingent upon an appropriation in the annual Budget Act or another statute for purposes of this section.SEC. 2.Section 17053.71 is added to the Revenue and Taxation Code, to read:17053.71.(a)For each taxable year beginning on or after January 1, 2021, there shall be allowed against the net tax, as defined by Section 17039, a cannabis equity business tax credit equal to the amount of state and local cannabis licensing fees paid by a qualified taxpayer.
(b)For purposes of this section, qualified taxpayer means either a local equity applicant or local equity licensee as defined in Section 26240 of the Business and Professions Code.
(c)In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding years if necessary, until the credit is exhausted.
SEC. 3.It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code.
SEC. 4.The Legislature finds and declares that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.
SECTION 1.Section 26000 of the Business and Professions Code is amended to read:26000.(a)This division shall be known, and may be cited, as the Medicinal and Adult-Use Cannabis Regulation and Safety Act.(b)The purpose and intent of this division is to establish a comprehensive system to control and regulate the cultivation, distribution, transport, storage, manufacturing, processing, and sale of both of the following:(1)Medicinal cannabis and medicinal cannabis products for patients with valid physicians recommendations.(2)Adult-use cannabis and adult-use cannabis products for adults 21 years of age and over.(c)In the furtherance of subdivision (b), this division sets forth the powers and duties of the state agencies responsible for controlling and regulating the commercial medicinal and adult-use cannabis industry.(d)The Legislature may, by majority vote, enact laws to implement this division, provided those laws are consistent with the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.(a)This division shall be known, and may be cited, as the Medicinal and Adult-Use Cannabis Regulation and Safety Act.
(b)The purpose and intent of this division is to establish a comprehensive system to control and regulate the cultivation, distribution, transport, storage, manufacturing, processing, and sale of both of the following:
(1)Medicinal cannabis and medicinal cannabis products for patients with valid physicians recommendations.
(2)Adult-use cannabis and adult-use cannabis products for adults 21 years of age and over.
(c)In the furtherance of subdivision (b), this division sets forth the power powers and duties of the state agencies responsible for controlling and regulating the commercial medicinal and adult-use cannabis industry.
(d)The Legislature may, by majority vote, enact laws to implement this division, provided those laws are consistent with the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.
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Date
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Status
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| Jun 13, 2022 | June 13 hearing postponed by committee. |
| Jun 6, 2022 | June 6 set for first hearing canceled at the request of author. |
| Jun 10, 2021 | Referred to Coms. on REV. & TAX. and B. & P. |
| Jun 2, 2021 | In Assembly. Read first time. Held at Desk. |
| Jun 1, 2021 | Read third time. Passed. (Ayes 34. Noes 1. Page 1324.) Ordered to the Assembly. |
| May 24, 2021 | Read second time. Ordered to third reading. |
| May 20, 2021 | From committee: Do pass as amended. (Ayes 5. Noes 0. Page 1198.) (May 20). |
| May 14, 2021 | Set for hearing May 20. |
| May 4, 2021 | May 3 hearing: Placed on APPR suspense file. |
| Apr 21, 2021 | Set for hearing May 3. |
| Apr 19, 2021 | Read second time and amended. Re-referred to Com. on APPR. |
| Apr 15, 2021 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 814.) (April 15). |
| Apr 9, 2021 | Set for hearing April 15. |
| Apr 5, 2021 | From committee: Do pass and re-refer to Com. on GOV. & F. (Ayes 9. Noes 0. Page 670.) (April 5). Re-referred to Com. on GOV. & F. |
| Mar 24, 2021 | Set for hearing April 5. |
| Mar 18, 2021 | Re-referred to Coms. on B., P. & E.D. and GOV. & F. |
| Mar 10, 2021 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. |
| Mar 3, 2021 | Referred to Com. on RLS. |
| Feb 22, 2021 | Joint Rule 55 suspended. (Ayes 32. Noes 4. Page 272.) |
| Feb 19, 2021 | From printer. May be acted upon on or after March 21. |
| Feb 18, 2021 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
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Date
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Description
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Location
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Votes
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| Jun 1, 2021 | Senate 3rd Reading SB603 Bradford | Senate Floor |
Passed |
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Bill Author
Bill Co-Author(s):