AB 2420: Cannabis: donations: seniors.

Current Status:

In Progress

(2026-04-13: In committee: Set, first hearing. Hearing canceled at the request of author.)

Introduced

In Committee

Awaiting First Chamber Vote

Passed First Chamber

In Committee

Awaiting Second Chamber Vote

Passed Second Chamber

Enacted

Version:

The

(1)The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, 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. 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. MAUCRSA authorizes a licensee that is authorized to make retail sales to provide free cannabis or cannabis products to a medicinal cannabis patient or the patients primary caregiver if specified requirements are met.

AUMA imposes a cannabis excise tax upon purchasers of cannabis or cannabis products, as specified. Existing law exempts from the excise tax medicinal cannabis and medicinal cannabis products donated for no consideration to a medicinal cannabis patient, as specified.

This bill would state the intent of the Legislature to enact legislation that authorizes cannabis retailers to donate cannabis or cannabis products to persons 65 years of age and older and to provide a tax exemption for cannabis or cannabis products that are donated to persons 65 years of age and older. authorize a licensee that is authorized to make retail sales to provide free cannabis or cannabis products to a person 65 years of age or older or a senior caregiver, as defined, if specified requirements are met.

(2)Existing sales and use tax laws impose use taxes on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state, presumes tangible personal property purchased outside the state that is stored, used, or consumed in this state is purchased for use in this state, and provides various exemptions from those taxes. Existing law, until January 1, 2030, exempts from the use tax the storage, use, or other consumption in this state of medicinal cannabis or medicinal cannabis products that are donated for no consideration, as specified.

This bill, on and after a specified operative date, and until 5 years after that operative date, would exempt from the use tax the storage, use, or other consumption in this state of cannabis or cannabis products that are donated for no consideration to a person 65 years of age or older, as specified. The bill would require the exemption to apply only if the cannabis retailer certifies in writing, as specified, that the cannabis or cannabis product will be used as specified. The bill would make a licensee that uses the donated cannabis or cannabis product in some other manner, or for some other purpose, liable for the payment of use tax and subject to having their license suspended. By expanding the crime of perjury, the bill would impose a state-mandated local program.

The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws.

Existing law requires the state to reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions.

This bill would provide that, notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse any local agencies for sales and use tax revenues lost by them pursuant to this bill.

(3)AUMA imposes a cannabis excise tax upon purchasers of cannabis or cannabis products, as specified. Existing law requires that these provisions not be construed to impose an excise tax upon medicinal cannabis and medicinal cannabis products donated for no consideration to a medicinal cannabis patient, as specified.

The bill would also require that these provisions not be construed to impose an excise tax upon cannabis or cannabis products donated for no consideration to a person 65 years of age or older, as specified.

(4)This bill would require the Legislative Analysts Office, in order to enable the Legislature to determine whether the use tax exemption provided by the bill are meeting, failing to meet, or exceeding a specified goal and objective, to collect certain data regarding the tax exemptions from specified entities, and to submit a report containing the data to the Legislature and the Governor annually each year that the tax exemptions are in effect.

(5)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.

(6)The Control, Regulate and Tax Adult Use of Marijuana Act, an initiative measure, 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 specified purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.

Version:

The people of the State of California do enact as follows:SECTION 1.Section 26001 of the Business and Professions Code is amended to read:26001.

For purposes of this division, the following definitions apply:

(a)A-license means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation, or are intended for use on, or consumption by, animals.

(b)A-licensee means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physicians recommendation, or are intended for use on, or consumption by, animals.

(c)Animal does not include a food animal as defined in Section 4825.1 or livestock as defined in Section 14205 of the Food and Agricultural Code.

(d)Applicant means an owner applying for a state license pursuant to this division.

(e)Batch means a specific quantity of homogeneous cannabis, industrial hemp, or cannabis product that is one of the following types:

(1)Harvest batch means a specifically identified quantity of dried flower or trim, leaves, and other plant matter from either cannabis or industrial hemp that is harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals.

(2)Manufactured cannabis batch means either of the following:

(A)An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.

(B)An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.

(f)Cannabinoid means a chemical compound found in cannabis and industrial hemp that binds to or otherwise activates cannabinoid receptors in humans and animals. Cannabinoid includes, but is not limited to, tetrahydrocannabinol (THC) and cannabidiol (CBD).

(g)Cannabis has the same meaning as in Section 11018 of the Health and Safety Code.

(h)Cannabis accessories has the same meaning as in Section 11018.2 of the Health and Safety Code.

(i)Cannabis beverage means a form of edible cannabis product that is intended to be consumed in its final state as a beverage.

(j)Cannabis concentrate has the same meaning as in Section 11006.5 of the Health and Safety Code.

(k)Cannabis event organizer means a person authorized to plan and organize temporary cannabis events as authorized in Section 26200.

(l)Cannabis products has the same meaning as in Section 11018.1 of the Health and Safety Code.

(m)CBD isolate means a compound extracted from cannabis or industrial hemp consisting of cannabidiol (CAS number 13956-29-1), with a purity level greater than 99 percent and that does not contain any form of tetrahydrocannabinol or synthetic cannabinoid.

(n)CBN isolate means a compound extracted from cannabis or industrial hemp consisting of cannabinol (CAS number 521-35-7), with a purity level greater than 99 percent, and that does not contain any form of tetrahydrocannabinol or synthetic cannabinoid.

(o)Child resistant means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.

(p)Combined activities license means a state license that authorizes two or more commercial cannabis activities at the same premises, with the exception of laboratory testing. A combined activities license shall conform with all requirements imposed by this division to the extent the licensee engages in those activities.

(q)Commercial cannabis activity includes the cultivation of cannabis or the possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this division, or acting as a cannabis event organizer for temporary cannabis events.

(r)Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

(s)Cultivation site means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.

(t)Customer means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physicians recommendation, or a primary caregiver.

(u)Daycare center has the same meaning as in Section 1596.76 of the Health and Safety Code.

(v)Delivery means the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform.

(w)Department means the Department of Cannabis Control within the Business, Consumer Services, and Housing Agency.

(x)Director means the Director of the Department of Cannabis Control.

(y)Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensees.

(z)Distributor means a licensee that is authorized to engage in the distribution of cannabis, industrial hemp, and cannabis products.

(aa)Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.

(ab)Edible cannabis product means a cannabis product that is intended to be used, in whole or in part, for human or animal consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, a processed pet food, as defined by Section 113025 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.

(ac)Fund means the Cannabis Control Fund established pursuant to Section 26210.

(ad)Industrial hemp has the same meaning as in Section 11018.5 of the Health and Safety Code.

(ae)Kind means applicable type or designation regarding a particular cannabis variant, origin, or product type, including, but not limited to, strain name, trademark, or production area designation.

(af)Labeling means any label or other written, printed, or graphic matter upon a cannabis or cannabis product, upon its container or wrapper, or that accompanies any cannabis or cannabis product.

(ag)Labor peace agreement means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the states proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicants employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicants employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.

(ah)License means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.

(ai)Licensed market means the California licensed market for cannabis, industrial hemp, and cannabis products that is subject to regulation by this division.

(aj)Licensee means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.

(ak)Licensing authority means the department and any state agency currently or formerly responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.

(al)Live plants means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.

(am)Local jurisdiction means a city, county, or city and county.

(an)Lot means a batch or a specifically identified portion of a batch.

(ao)M-license means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.

(ap)M-licensee means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.

(aq)Manufacture means to compound, blend, extract, infuse, package, label, or otherwise make or prepare a cannabis product.

(ar)Medicinal cannabis or medicinal cannabis product means cannabis or a cannabis product, respectively, intended to be sold or donated for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physicians recommendation, or in compliance with any compassionate use, equity, or other similar program administered by a local jurisdiction.

(as)Microbusiness means a licensee that is authorized to engage in cultivation of cannabis on an area less than 10,000 square feet and to act as a licensed distributor, Level 1 manufacturer, and retailer under this division, provided such licensee can demonstrate compliance with all requirements imposed by this division on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the licensee engages in such activities.

(at)Nursery means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.

(au)Operation means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.

(av)Owner means any of the following:

(1)A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.

(2)The chief executive officer of a nonprofit or other entity.

(3)A member of the board of directors of a nonprofit.

(4)An individual who will be participating in the direction, control, or management of the person applying for a license.

(aw)Package means any container or receptacle used for holding cannabis or cannabis products.

(ax)Person includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular.

(ay)Physicians recommendation means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code.

(az)Premises means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted.

(ba)Primary caregiver has the same meaning as in Section 11362.7 of the Health and Safety Code.

(bb)Processor means a person authorized to engage in only trimming, drying, curing, grading, packaging, and labeling of cannabis and nonmanufactured cannabis products.

(bc)Purchaser means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.

(bd)Retailer means a person authorized to engage in the retail sale and delivery of cannabis or cannabis products to customers.

(be)Sell, sale, and to sell include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.

(bf)Senior caregiver means the individual, at least 21 years of age, designated by a person 65 years of age or older, who has consistently assumed responsibility for the housing, health, or safety of that person, and may include any of the following:

(1)In a case in which a person 65 years of age or older receives medical care or supportive services, or both, from a clinic licensed pursuant to Chapter 1 (commencing with Section 1200), a health care facility licensed pursuant to Chapter 2 (commencing with Section 1250), a residential care facility for persons with chronic life-threatening illness licensed pursuant to Chapter 3.01 (commencing with Section 1568.01), a residential care facility for the elderly licensed pursuant to Chapter 3.2 (commencing with Section 1569), a hospice, or a home health agency licensed pursuant to Chapter 8 (commencing with Section 1725) of Division 2 of the Health and Safety Code, the owner or operator, or no more than three employees who are designated by the owner or operator, of the clinic, facility, hospice, or home health agency, if designated as a senior caregiver by that person 65 years of age or older.

(2)An individual who has been designated as a senior caregiver by more than one person 65 years of age or older if every person 65 years of age or older who has designated that individual as a senior caregiver resides in the same city or county as the senior caregiver.

(3)An individual who has been designated as a senior caregiver by a person 65 years of age or older who resides in a city or county other than that of the senior caregiver, if the individual has not been designated as a senior caregiver by any other person 65 years of age or older.

(bf)

(bg)Synthetic cannabinoid means a cannabinoid or cannabinoid-like compound that is produced by using biosynthesis, bioconversion, or chemical synthesis, reaction, modification, conversion, or a similar process. This includes, but is not limited to, any form of tetrahydrocannabinol that was produced by the conversion of cannabidiol (CBD) (CAS number 13956-29-1), or any other chemical substance identified by the department in regulation. Synthetic cannabinoid does not include any of the following:

(1)A cannabinoid produced by the decarboxylation of acidic phytocannabinoids without the use of chemical reagents or chemical catalysts. This includes, but is not limited to, the conversion of cannabidiolic acid (CBDA) into cannabidiol (CBD) without the use of chemical reagents or catalysts.

(2)A cannabinoid that occurs naturally in the Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis plant that was produced with the use of heat, light, or pressure from other phytocannabinoids, and without the use of any chemical reagents or catalysts. This includes, but is not limited to, the conversion of tetrahydrocannabinol into cannabinol (CBN) with the use of heat, light, or pressure, and without the use of any chemical reagents or catalysts.

(3)Any other chemical substance identified by the department in regulation.

(bg)

(bh)Testing laboratory means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:

(1)Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.

(2)Licensed by the department.

(bh)

(bi)Unique identifier means an alphanumeric code or designation used in reference to a specific quantity of cannabis or cannabis products that is issued pursuant to the track and trace program established by the department.

(bi)

(bj)Youth center has the same meaning as in Section 11353.1 of the Health and Safety Code.

SEC. 2.Section 26072 is added to the Business and Professions Code, to read:26072.

(a)To provide access to persons 65 years of age or older, a licensee that is authorized to make retail sales may provide free cannabis or cannabis products if all of the following criteria are met:

(1)Free cannabis or cannabis products are provided only to a person 65 years of age or older or a senior caregiver.

(2)(A)A licensed retailer providing cannabis or cannabis products pursuant to this section to a person 65 years of age or older shall ensure that the person is 65 years of age or older or that the senior caregiver is acting on behalf of a person 65 years of age or older by following the procedures described in subparagraph (B) before providing the person 65 years of age or older or the senior caregiver with any cannabis or cannabis products that are exempt from the use tax pursuant to Section 6414.1 of the Revenue and Taxation Code.

(B)(i)In order to verify the person is 65 years of age or older, the licensed retailer shall keep a copy of the drivers license or other government-issued identification of the person 65 years of age or older.

(ii)In order to verify that a senior caregiver is acting on behalf of a person 65 years of age or older, the licensed retailer shall do all of the following:

(I)Keep a copy of a notarized document signed by a person 65 years of age or older that includes all of the following:

(ia)The legal name and date of birth of the person 65 years of age or older.

(ib)The legal name of the senior caregiver.

(ic)A statement that the person 65 years of age or older designates the person providing the notarized document to the licensed retailer as their senior caregiver.

(id)A copy of the drivers license or other government-issued identification of the person 65 years of age or older.

(II)Keep a copy of senior caregivers drivers license or other government-issued identification.

(3)The cannabis or cannabis products comply with all applicable requirements for cultivation, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or donation under this division.

(4)A licensee intending to donate the cannabis or cannabis products shall designate the cannabis or cannabis products for donation in the track and trace system.

(5)Before being provided to the person 65 years of age or older or senior caregiver, the cannabis or cannabis products have been properly recorded in the track and trace system as belonging to the retailer.

(6)The cannabis or cannabis products provided to a person 65 years of age or older or senior caregiver in a single day shall not exceed the possession limits prescribed by Section 11357 of the Health and Safety Code.

(7)(A)The event shall be properly recorded in the retailers inventory records and the track and trace system.

(B)For at least four years, the retailer shall include in its inventory a copy of the drivers license or other government-issued identification and notarized document, if applicable, required by subparagraph (B) of paragraph (2).

(8)A licensed retailer that donates cannabis or cannabis products shall note the donation in their sales invoice or receipt pursuant to Section 26161.

(b)In addition to the provision of free cannabis or cannabis products in subdivision (a), a licensee that is authorized to make retail sales may donate cannabis or cannabis products and the use of equipment in compliance with any compassionate use, equity, or other similar program administered by a local jurisdiction.

(c)A licensee that is authorized to make retail sales may contract with an individual or organization to coordinate the provision of free cannabis or cannabis products on the retailers premises. Licensed retailers that are solely authorized to engage in retail sales by means of delivery may provide free cannabis or cannabis products by means of delivery.

(d)This section shall become operative upon completion of the necessary changes to the track and trace program in order to implement the act adding this section, as determined by the Department of Cannabis Control, or on March 1, 2027, whichever occurs first.

SEC. 3.Section 26153 of the Business and Professions Code is amended to read:26153.

(a)A licensee shall not give away any amount of cannabis or cannabis products, or any cannabis accessories, as part of a business promotion or other commercial activity.

(b)For purposes of this section, the donation of cannabis or cannabis products by a licensee to a either of the following shall not be considered a business promotion or other commercial activity:

(1)A patient or the primary caregiver of a patient pursuant to Section 26071 shall not be considered a business promotion or other commercial activity. 26071.

(2)A person 65 years of age or older or senior caregiver pursuant to Section 26072.

(c)For purposes of this section, the provision of cannabis or cannabis products by a licensee pursuant to Section 26153.1 shall not be considered a business promotion or other commercial activity.

SEC. 4.Section 26161 of the Business and Professions Code is amended to read:26161.

(a)Every sale or transport of cannabis or cannabis products from one licensee to another licensee must be recorded on a sales invoice or receipt. Sales invoices and receipts may be maintained electronically and must be filed in such manner as to be readily accessible for examination by employees of the department or California Department of Tax and Fee Administration and shall not be commingled with invoices covering other commodities.

(b)Each sales invoice required by subdivision (a) shall include the name and address of the seller and shall include the following information:

(1)Name and address of the purchaser.

(2)Date of sale and invoice number.

(3)Kind, quantity, size, and capacity of packages of cannabis or cannabis products sold.

(4)The cost to the purchaser, together with any discount applied to the price as shown on the invoice.

(5)The place from which transport of the cannabis or cannabis product was made unless transport was made from the premises of the licensee.

(6)Whether the cannabis or cannabis products are designated for donation to a medicinal cannabis patient. patient pursuant to Section 26071 or a person 65 years of age or older pursuant to Section 26072.

(7)Any other information specified by the department.

SEC. 5.Section 6414.1 is added to the Revenue and Taxation Code, to read:6414.1.

(a)The storage, use, or other consumption in this state of cannabis or cannabis product shall be exempt from the use tax in either of the following circumstances:

(1)The cannabis or cannabis product is donated by a cannabis retailer licensed under Division 10 (commencing with Section 26000) of the Business and Professions Code to a person 65 years of age or older.

(2)The cannabis or cannabis product is donated by a person licensed under Division 10 (commencing with Section 26000) of the Business and Professions Code to a cannabis retailer for subsequent donation to a person 65 years of age or older.

(b)(1)The exemption specified in subdivision (a) shall apply only if the cannabis retailer certifies in writing under penalty of perjury to the licensee that donates the cannabis or cannabis product, in a form the department may prescribe, that the cannabis and cannabis product will be used in a manner and for a purpose specified in subdivision (a). The licensee that donates the cannabis or cannabis product shall keep a copy of the certification for at least seven years. The certification in writing shall relieve the licensee that donates the cannabis or cannabis product of liability for use tax only if it is taken in good faith.

(2)If a licensee uses the donated cannabis or cannabis product in a manner or for a purpose other than those specified in subdivision (a), the licensee shall be liable for the payment of use tax, the measure of tax to the licensee shall be deemed that licensees purchase price for similar product, and the licensee shall be subject to having their license suspended by the Department of Cannabis Control pursuant to Section 26031 of the Business and Professions Code.

(c)For purposes of this section, the following definitions shall apply:

(1)Cannabis shall have the same meaning as that term is defined in Section 11018 of the Health and Safety Code.

(2)Cannabis product shall have the same meaning as that term is defined in Section 11018.1 of the Health and Safety Code.

(3)Cannabis retailer shall have the same meaning as that term is defined in Section 34010.

(4)Person 65 years of age or older shall include a senior caregiver, as that term is defined in Section 26001 of the Business and Professions Code.

(d)It is the intent of the Legislature to apply the requirements of Section 41 to this section. Therefore, the Legislature finds and declares the following with respect to the tax exemptions provided by this section:

(1)The goal and objective of the tax exemptions provided by this section, is to eliminate the tax burden placed on charitable cannabis donations to persons 65 years of age or older in order to minimize the need for those persons to turn to the illicit market in the state. By providing tax exemptions for cannabis products that are donated to persons 65 years of age or older, this section is intended to offset other financial burdens that cannabis licensees face that bar them from donating cannabis to persons 65 years of age or older who are unable to afford and access safe and tested cannabis in the legal market.

(2)In order to enable the Legislature to determine whether the tax exemptions provided by this section are meeting, failing to meet, or exceeding the goal and objective specified in paragraph (1), the Legislative Analysts Office shall collect data from the California Department of Tax and Fee Administration and the Department of Cannabis Control, including, but not limited to, data on tax revenue lost, the amount of cannabis products donated, and the number of persons 65 years of age or older served, as a result of the tax exemptions, as that data becomes available. The California Department of Tax and Fee Administration and the Department of Cannabis Control shall make any information requested pursuant to this subdivision available to the Legislative Analysts Office. The Legislative Analysts Office shall submit an annual report containing this data to the Legislature and the Governor each year that the tax exemptions are in effect. A report submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.

(e)(1)This section shall become operative upon completion of the necessary changes to the track and trace program in order to implement the act adding this section, as determined by the Department of Cannabis Control, or on March 1, 2027, whichever occurs first.

(2)This section shall remain in effect only until five years after it becomes operative, and as of that date is repealed.

SEC. 6.Section 34011.2 of the Revenue and Taxation Code is amended to read:34011.2.

(a)(1)Effective on and after January 1, 2023, a cannabis excise tax shall be imposed upon purchasers of cannabis or cannabis products sold in this state at 15 percent of the gross receipts of any retail sale by a cannabis retailer.

(2)Notwithstanding paragraph (1), on and after July 1, 2025, and before October 1, 2025, the cannabis excise tax rate imposed in paragraph (1) shall be 19 percent of the gross receipts of any retail sale by a cannabis retailer as determined by the department, in consultation with the Department of Finance, pursuant to this section, as added by Section 22 of Chapter 56 of the Statutes of 2022.

(3)For the 202829 fiscal year and every two years thereafter, the department, in consultation with the Department of Finance, shall, on or before May 1 of the fiscal year immediately preceding the applicable fiscal year, adjust the cannabis excise tax rate upon purchasers of cannabis or cannabis products imposed in paragraph (1) by the additional percentage of the gross receipts of any retail sale by a cannabis retailer that the department estimates will generate an amount of revenue equivalent to the amount that would have been collected in the previous fiscal year pursuant to the weight-based cultivation tax imposed under Section 34012 as it read on June 29, 2022. In no case shall the cannabis excise tax exceed 19 percent of the gross receipts of retail sale. The department shall round the rate calculated under this subdivision to the nearest one-quarter of 1 percent. The adjusted rate shall become operative the following July 1.

(4)On or before May 1, 2028, and each May 1 every two years thereafter, the department, in consultation with the Department of Finance, shall estimate the amount of revenue that would have been collected in the previous fiscal year pursuant to the weight-based cultivation tax imposed under Section 34012 as it read on June 29, 2022. The department shall estimate this amount by projecting the revenue from weight-based cultivation taxes that would have been collected in the previous calendar year based on information available to the department, including, but not limited to, information in the track and trace system required pursuant to Chapter 6.5 (commencing with Section 26067) of Division 10 of the Business and Professions Code, or any implementing regulations, as a percentage of gross receipts from the retail sale of cannabis and cannabis products by cannabis retailers in the previous calendar year.

(b)A purchasers liability for the cannabis excise tax is not extinguished until the cannabis excise tax has been paid to this state, except that an invoice, receipt, or other document from a cannabis retailer given to the purchaser pursuant to this section is sufficient to relieve the purchaser from further liability for the tax to which the invoice, receipt, or other document refers.

(c)A cannabis retailer shall be responsible for collecting the cannabis excise tax from the purchaser and remitting that tax to the department in accordance with this division.

(d)The cannabis retailer shall provide each purchaser with an invoice, receipt, or other document that separately states the cannabis excise tax.

(e)The cannabis excise tax imposed by this section shall be in addition to the sales and use tax imposed by the state and local governments.

(f)Gross receipts from the sale of cannabis or cannabis products for purposes of assessing the sales and use taxes under Part 1 (commencing with Section 6001) shall include the tax levied pursuant to this section.

(g)Cannabis or cannabis products shall not be sold to a purchaser unless the cannabis excise tax imposed by this section has been paid by the purchaser at the time of sale.

(h)This section shall not be construed to impose a cannabis excise tax upon medicinal cannabis, or medicinal cannabis product, donated for no consideration to a medicinal cannabis patient pursuant to Section 26071 of the Business and Professions Code.

(i)This section shall not be construed to impose a cannabis excise tax upon cannabis or cannabis product donated for no consideration to a person 65 years of age or older pursuant to Section 26072 of the Business and Professions Code.

(i)

(j)(1)This section shall not be construed to impose a cannabis excise tax upon cannabis or cannabis products designated as a trade sample pursuant to Section 26153.1 of the Business and Professions Code.

(2)A person licensed under Division 10 (commencing with Section 26000) of the Business and Professions Code that sells cannabis or cannabis products designated as a trade sample pursuant to Section 26153.1 of the Business and Professions Code shall be liable for the cannabis excise tax imposed by this section as if the person were a cannabis retailer at the time of sale.

SEC. 7.

Notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any sales and use tax revenues lost by it under this act.

SEC. 8.

No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.

SEC. 9.

The Legislature finds and declares that this act is consistent with, and furthers the purposes and intent of, the Control, Regulate and Tax Adult Use of Marijuana Act, as stated in Section 3 of that act, by allowing persons 65 years of age or older to receive donated cannabis for personal use.

SECTION 1.It is the intent of the Legislature to enact legislation that authorizes cannabis retailers to donate cannabis or cannabis products to persons 65 years of age and older. It is further the intent of the Legislature to enact legislation to provide a tax exemption for cannabis or cannabis products that are donated to persons 65 years of age and older.

Date	Status
Apr 13, 2026	In committee: Set, first hearing. Hearing canceled at the request of author.
Mar 23, 2026	Re-referred to Com. on B. & P.
Mar 19, 2026	From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & P. Read second time and amended.
Mar 19, 2026	Referred to Coms. on B. & P. and REV. & TAX.
Feb 21, 2026	From printer. May be heard in committee March 23.
Feb 20, 2026	Read first time. To print.

Authors shown for version:
Amended Assembly (3/19/2026)