BILL NUMBER: SBX8 53INTRODUCED BILL TEXT INTRODUCED BY Senator Calderon FEBRUARY 12, 2010 An act to add Division 8.9 (commencing with Section 22992) to the Business and Professions Code, relating to medical marijuana. LEGISLATIVE COUNSEL'S DIGEST SB 53, as introduced, Calderon. Medical Marijuana Licencing Act. Existing law provides for the imposition of various taxes with respect to the distribution of certain products, including cigarettes and other tobacco products, and provides for the licensure by the State Board of Equalization of sellers of those products that are engaged in business in California. This bill would, on and after the effective date of an imposition of a tax on the distribution of medical marijuana, require a distributor, as defined, to have in place and maintain a license from the State Board of Equalization to engage in the distribution of medical marijuana, and would require the license to be renewed every 12 months, as provided. This bill would require an applicant for a license to fill out a form providing specified information, including a statement by the applicant affirming that the applicant is in compliance with state laws that regulate or control the sale of medical marijuana. This bill would also require applicants to pay a one-time fee of $____, and a renewal fee of $____. This bill would require all moneys collected to be deposited in the Medical Marijuana Compliance Fund, which would be created in the State Treasury, and all funds therein would be available for appropriation by the Legislature solely for the purpose of implementing, enforcing, and administering the Medical Marijuana Licensing Act. The California Constitution authorizes the Governor to declare a fiscal emergency and to call the Legislature into special session for that purpose. The Governor issued a proclamation declaring a fiscal emergency, and calling a special session for this purpose, on January 8, 2010. This bill would state that it addresses the fiscal emergency declared by the Governor by proclamation issued on January 8, 2010, pursuant to the California Constitution. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Division 8.9 (commencing with Section 22992) is added to the Business and Professions Code, to read: DIVISION 8.9. Medical Marijuana Licencing Act CHAPTER 1. GENERAL PROVISIONS AND DEFINITIONS 22992. This division shall be known, and may be cited, as the Medical Marijuana Licencing Act. 22992.1. The board shall administer a statewide program to license distributors of medical marijuana. 22992.2. For purposes of this division, the following terms shall have the following meanings: (a) "Board" means the State Board of Equalization. (b) "Distribution" means the sale of untaxed medical marijuana, other than the lawful sale of untaxed medical marijuana to a collective or cooperative, as described in Article 2.5 (commencing with Section 11362.7) of Chapter 6, of Division 10 of the Health and Safety Code. (c) "Distributor" means a person who engages in this state in the distribution of medical marijuana. (d) "License" means a license issued by the board pursuant to this division. (e) "Licensee" means any person holding a license issued by the board pursuant to this division. (f) "Medical marijuana" means marijuana that is regulated under Article 2.5 (commencing with Section 11362.7) of Chapter 6 of Division 10 of the Health and Safety Code. (g) "Person" means a person as defined in Section 30010 of the Revenue and Taxation Code. (h) "Sale" or "sold" means a sale as defined in Section 30006 of the Revenue and Taxation Code. 22992.3. The board shall administer and enforce the provisions of this division and may prescribe, adopt, and enforce rules and regulations relating to the administration and enforcement of this division. 22992.4. No person is subject to the requirements of this division if that person is exempt from regulation under the United States Constitution, the laws of the United States, or the California Constitution. CHAPTER 2. LICENSE FOR DISTRIBUTORS OF MEDICAL MARIJUANA 22992.5. (a) On and after the effective date of an imposition of a tax on the distribution of medical marijuana, a distributor shall have in place and maintain a license to engage in the distribution of medical marijuana. (b) A license is not assignable or transferable. A person who obtains a license as a distributor who ceases to do business as specified in the license, or who never commenced business, or whose license is suspended or revoked, shall immediately surrender the license to the board. (c) A license shall be valid for a 12-month period, and shall be renewed annually. 22992.6 (a) An application for a license shall be filed on a form prescribed by the board and shall include the following: (1) The name, address, and telephone number of the applicant. (2) A statement by the applicant affirming that the applicant is in compliance with state laws that regulate or control the sale of medical marijuana, including, but not limited to, Article 2.5 (commencing with Section 11362.7) of Chapter 6 of Division 10 of the Health and Safety Code. (3) A statement by the applicant that the contents of the application are complete, true, and correct. (4) The signature of the applicant. (5) Any other information the board may require. (b) The board may investigate to determine the truthfulness and completeness of the information provided in the application. (c) The board shall provide electronic means for applicants to download and submit applications. (d) (1) A one-time license fee of ____ dollars ($____) shall be submitted with each application. (2) A fee of ____ dollars ($____) shall be submitted for each application for renewal of a license. If a license is reinstated after its expiration, the distributor, as a condition precedent to its reinstatement, shall pay a reinstatement fee of one hundred dollars ($100). 22992.7. The board shall revoke the license, pursuant to the provisions applicable to the revocation of a license as set forth in Section 30148 of the Revenue and Taxation Code, of any distributor that fails to comply with this division or any rule or regulation of the board prescribed and adopted under this part. CHAPTER 3. DISPOSITION OF FUNDS 22978.8. (a) All moneys collected pursuant to this division shall be deposited in the Medical Marijuana Compliance Fund, which is hereby created in the State Treasury. (b) All moneys in the Medical Marijuana Compliance Fund are available for expenditure, upon appropriation by the Legislature, solely for the purpose of implementing, enforcing, and administering the Medical Marijuana Licensing Act. SEC. 2. This act addresses the fiscal emergency declared by the Governor by proclamation on January 8, 2010, pursuant to subdivision (f) of Section 10 of Article IV of the California Constitution.