| 1 | | - | Assembly Bill No. 2555 CHAPTER 920An act to amend Section 6414 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. [ Approved by Governor September 29, 2024. Filed with Secretary of State September 29, 2024. ] LEGISLATIVE COUNSEL'S DIGESTAB 2555, Quirk-Silva. Sales and use tax: exemption: medicinal cannabis: donations. 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. 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 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, under specified circumstances. Existing law requires the exemption to apply only if the cannabis retailer certifies in writing, as specified, that the medicinal cannabis or medicinal cannabis product will be used as specified. Existing law makes a licensee that uses the donated medicinal cannabis or medicinal 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. Existing law repeals these provisions 5 years after the specified operative date.This bill would extend these provisions until January 1, 2030. By expanding the scope of 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.Existing law requires a 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 require the Legislative Analysts Office, in order to enable the Legislature to determine whether the use tax exemption provided by the bill is meeting, failing to meet, or exceeding a specified goal and objective, to collect certain data regarding the tax exemption from specified entities, and to submit a report containing the data to the Legislature and the Governor annually each year that the tax exemption is in effect.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.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 6414 of the Revenue and Taxation Code is amended to read:6414. (a) The storage, use, or other consumption in this state of medicinal cannabis or medicinal cannabis product shall be exempt from the use tax in either of the following circumstances:(1) The medicinal cannabis or medicinal cannabis product is donated by a cannabis retailer licensed under Division 10 (commencing with Section 26000) of the Business and Professions Code to a medicinal cannabis patient.(2) The medicinal cannabis or medicinal 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 medicinal cannabis patient.(b) (1) The exemption specified in subdivision (a) shall apply only if the cannabis retailer certifies in writing to the licensee that donates the medicinal cannabis or medicinal cannabis product, in such a form as the department may prescribe, that the medicinal cannabis and medicinal cannabis product will be used in a manner and for a purpose specified in subdivision (a). The licensee that donates the medicinal cannabis or medicinal cannabis product shall keep a copy of the certification for no less than seven years. The certification in writing shall relieve the licensee that donates the medicinal cannabis or medicinal cannabis product of liability for use tax only if it is taken in good faith.(2) If a licensee uses the donated medicinal cannabis or medicinal cannabis product in some manner or for some 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) Medicinal cannabis and medicinal cannabis product shall have the same meaning as those terms are defined in Section 26001 of the Business and Professions Code.(d) Cannabis retailer shall have the same meaning as that term is defined in Section 34010.(e) Medicinal cannabis patient shall mean a qualified patient, as defined in Section 11362.7 of the Health and Safety Code, who possesses a physicians recommendation that complies with Article 25 (commencing with Section 2525) of Chapter 5 of Division 2 of the Business and Professions Code, or a qualified patient or primary caregiver for a qualified patient issued a valid identification card pursuant to Section 11362.71 of the Health and Safety Code.(f) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.SEC. 2. (a) It is the intent of the Legislature to apply the requirements of Section 41 of the Revenue and Taxation Code to this act. Therefore, the Legislature finds and declares the following with respect to the tax exemption provided by Section 6414 of the Revenue and Taxation Code, as amended by Section 1 of the act adding this section:(1) The goal and objective of the tax exemption provided by Section 6414 of the Revenue and Taxation Code, as amended by Section 1 of the act adding this section is to eliminate the tax burden placed on charitable cannabis donations to medicinal cannabis patients in order to minimize the need for those patients to turn to the illicit market in the state. By providing a tax exemption for medicinal cannabis products that are donated to medicinal cannabis patients, this act is intended to offset other financial burdens that cannabis licensees face that bar them from donating cannabis to medicinal cannabis patients 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 exemption provided by Section 6414 of the Revenue and Taxation Code, as amended by Section 1 of the act adding this section, is 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 the estimated tax revenue lost, the amount of medicinal cannabis products donated, and the number of medicinal cannabis patients 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 provide any available information requested pursuant to this subdivision to the Legislative Analysts Office. Notwithstanding Section 10231.5 of the Government Code, 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.(b) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.SEC. 3. 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. 4. 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. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. |
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| 1 | + | Enrolled August 31, 2024 Passed IN Senate August 28, 2024 Passed IN Assembly May 22, 2024 Amended IN Assembly April 08, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2555Introduced by Assembly Member Quirk-SilvaFebruary 14, 2024An act to amend Section 6414 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 2555, Quirk-Silva. Sales and use tax: exemption: medicinal cannabis: donations. 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. 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 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, under specified circumstances. Existing law requires the exemption to apply only if the cannabis retailer certifies in writing, as specified, that the medicinal cannabis or medicinal cannabis product will be used as specified. Existing law makes a licensee that uses the donated medicinal cannabis or medicinal 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. Existing law repeals these provisions 5 years after the specified operative date.This bill would extend these provisions until January 1, 2030. By expanding the scope of 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.Existing law requires a 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 require the Legislative Analysts Office, in order to enable the Legislature to determine whether the use tax exemption provided by the bill is meeting, failing to meet, or exceeding a specified goal and objective, to collect certain data regarding the tax exemption from specified entities, and to submit a report containing the data to the Legislature and the Governor annually each year that the tax exemption is in effect.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.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 6414 of the Revenue and Taxation Code is amended to read:6414. (a) The storage, use, or other consumption in this state of medicinal cannabis or medicinal cannabis product shall be exempt from the use tax in either of the following circumstances:(1) The medicinal cannabis or medicinal cannabis product is donated by a cannabis retailer licensed under Division 10 (commencing with Section 26000) of the Business and Professions Code to a medicinal cannabis patient.(2) The medicinal cannabis or medicinal 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 medicinal cannabis patient.(b) (1) The exemption specified in subdivision (a) shall apply only if the cannabis retailer certifies in writing to the licensee that donates the medicinal cannabis or medicinal cannabis product, in such a form as the department may prescribe, that the medicinal cannabis and medicinal cannabis product will be used in a manner and for a purpose specified in subdivision (a). The licensee that donates the medicinal cannabis or medicinal cannabis product shall keep a copy of the certification for no less than seven years. The certification in writing shall relieve the licensee that donates the medicinal cannabis or medicinal cannabis product of liability for use tax only if it is taken in good faith.(2) If a licensee uses the donated medicinal cannabis or medicinal cannabis product in some manner or for some 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) Medicinal cannabis and medicinal cannabis product shall have the same meaning as those terms are defined in Section 26001 of the Business and Professions Code.(d) Cannabis retailer shall have the same meaning as that term is defined in Section 34010.(e) Medicinal cannabis patient shall mean a qualified patient, as defined in Section 11362.7 of the Health and Safety Code, who possesses a physicians recommendation that complies with Article 25 (commencing with Section 2525) of Chapter 5 of Division 2 of the Business and Professions Code, or a qualified patient or primary caregiver for a qualified patient issued a valid identification card pursuant to Section 11362.71 of the Health and Safety Code.(f) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.SEC. 2. (a) It is the intent of the Legislature to apply the requirements of Section 41 of the Revenue and Taxation Code to this act. Therefore, the Legislature finds and declares the following with respect to the tax exemption provided by Section 6414 of the Revenue and Taxation Code, as amended by Section 1 of the act adding this section:(1) The goal and objective of the tax exemption provided by Section 6414 of the Revenue and Taxation Code, as amended by Section 1 of the act adding this section is to eliminate the tax burden placed on charitable cannabis donations to medicinal cannabis patients in order to minimize the need for those patients to turn to the illicit market in the state. By providing a tax exemption for medicinal cannabis products that are donated to medicinal cannabis patients, this act is intended to offset other financial burdens that cannabis licensees face that bar them from donating cannabis to medicinal cannabis patients 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 exemption provided by Section 6414 of the Revenue and Taxation Code, as amended by Section 1 of the act adding this section, is 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 the estimated tax revenue lost, the amount of medicinal cannabis products donated, and the number of medicinal cannabis patients 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 provide any available information requested pursuant to this subdivision to the Legislative Analysts Office. Notwithstanding Section 10231.5 of the Government Code, 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.(b) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.SEC. 3. 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. 4. 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. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. |
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| 3 | | - | Assembly Bill No. 2555 CHAPTER 920An act to amend Section 6414 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. [ Approved by Governor September 29, 2024. Filed with Secretary of State September 29, 2024. ] LEGISLATIVE COUNSEL'S DIGESTAB 2555, Quirk-Silva. Sales and use tax: exemption: medicinal cannabis: donations. 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. 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 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, under specified circumstances. Existing law requires the exemption to apply only if the cannabis retailer certifies in writing, as specified, that the medicinal cannabis or medicinal cannabis product will be used as specified. Existing law makes a licensee that uses the donated medicinal cannabis or medicinal 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. Existing law repeals these provisions 5 years after the specified operative date.This bill would extend these provisions until January 1, 2030. By expanding the scope of 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.Existing law requires a 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 require the Legislative Analysts Office, in order to enable the Legislature to determine whether the use tax exemption provided by the bill is meeting, failing to meet, or exceeding a specified goal and objective, to collect certain data regarding the tax exemption from specified entities, and to submit a report containing the data to the Legislature and the Governor annually each year that the tax exemption is in effect.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.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES |
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| 3 | + | Enrolled August 31, 2024 Passed IN Senate August 28, 2024 Passed IN Assembly May 22, 2024 Amended IN Assembly April 08, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2555Introduced by Assembly Member Quirk-SilvaFebruary 14, 2024An act to amend Section 6414 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 2555, Quirk-Silva. Sales and use tax: exemption: medicinal cannabis: donations. 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. 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 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, under specified circumstances. Existing law requires the exemption to apply only if the cannabis retailer certifies in writing, as specified, that the medicinal cannabis or medicinal cannabis product will be used as specified. Existing law makes a licensee that uses the donated medicinal cannabis or medicinal 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. Existing law repeals these provisions 5 years after the specified operative date.This bill would extend these provisions until January 1, 2030. By expanding the scope of 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.Existing law requires a 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 require the Legislative Analysts Office, in order to enable the Legislature to determine whether the use tax exemption provided by the bill is meeting, failing to meet, or exceeding a specified goal and objective, to collect certain data regarding the tax exemption from specified entities, and to submit a report containing the data to the Legislature and the Governor annually each year that the tax exemption is in effect.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.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES |
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| 14 | 24 | | |
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| 15 | 25 | | LEGISLATIVE COUNSEL'S DIGEST |
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| 16 | 26 | | |
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| 17 | 27 | | ## LEGISLATIVE COUNSEL'S DIGEST |
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| 18 | 28 | | |
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| 19 | 29 | | AB 2555, Quirk-Silva. Sales and use tax: exemption: medicinal cannabis: donations. |
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| 20 | 30 | | |
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| 21 | 31 | | 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. 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 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, under specified circumstances. Existing law requires the exemption to apply only if the cannabis retailer certifies in writing, as specified, that the medicinal cannabis or medicinal cannabis product will be used as specified. Existing law makes a licensee that uses the donated medicinal cannabis or medicinal 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. Existing law repeals these provisions 5 years after the specified operative date.This bill would extend these provisions until January 1, 2030. By expanding the scope of 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.Existing law requires a 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 require the Legislative Analysts Office, in order to enable the Legislature to determine whether the use tax exemption provided by the bill is meeting, failing to meet, or exceeding a specified goal and objective, to collect certain data regarding the tax exemption from specified entities, and to submit a report containing the data to the Legislature and the Governor annually each year that the tax exemption is in effect.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.This bill would take effect immediately as a tax levy. |
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| 22 | 32 | | |
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| 23 | 33 | | 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. 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. |
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| 24 | 34 | | |
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| 25 | 35 | | Existing law 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, under specified circumstances. Existing law requires the exemption to apply only if the cannabis retailer certifies in writing, as specified, that the medicinal cannabis or medicinal cannabis product will be used as specified. Existing law makes a licensee that uses the donated medicinal cannabis or medicinal 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. Existing law repeals these provisions 5 years after the specified operative date. |
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| 26 | 36 | | |
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| 27 | 37 | | This bill would extend these provisions until January 1, 2030. By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program. |
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| 28 | 38 | | |
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| 29 | 39 | | 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. |
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| 30 | 40 | | |
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| 31 | 41 | | Existing law requires the state to reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions. |
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| 32 | 42 | | |
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| 33 | 43 | | 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. |
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| 34 | 44 | | |
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| 35 | 45 | | Existing law requires a 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. |
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| 36 | 46 | | |
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| 37 | 47 | | 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 is meeting, failing to meet, or exceeding a specified goal and objective, to collect certain data regarding the tax exemption from specified entities, and to submit a report containing the data to the Legislature and the Governor annually each year that the tax exemption is in effect. |
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| 38 | 48 | | |
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| 39 | 49 | | 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. |
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| 40 | 50 | | |
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| 41 | 51 | | This bill would provide that no reimbursement is required by this act for a specified reason. |
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| 42 | 52 | | |
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| 43 | 53 | | This bill would take effect immediately as a tax levy. |
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| 44 | 54 | | |
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| 45 | 55 | | ## Digest Key |
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| 46 | 56 | | |
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| 47 | 57 | | ## Bill Text |
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| 48 | 58 | | |
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| 49 | 59 | | The people of the State of California do enact as follows:SECTION 1. Section 6414 of the Revenue and Taxation Code is amended to read:6414. (a) The storage, use, or other consumption in this state of medicinal cannabis or medicinal cannabis product shall be exempt from the use tax in either of the following circumstances:(1) The medicinal cannabis or medicinal cannabis product is donated by a cannabis retailer licensed under Division 10 (commencing with Section 26000) of the Business and Professions Code to a medicinal cannabis patient.(2) The medicinal cannabis or medicinal 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 medicinal cannabis patient.(b) (1) The exemption specified in subdivision (a) shall apply only if the cannabis retailer certifies in writing to the licensee that donates the medicinal cannabis or medicinal cannabis product, in such a form as the department may prescribe, that the medicinal cannabis and medicinal cannabis product will be used in a manner and for a purpose specified in subdivision (a). The licensee that donates the medicinal cannabis or medicinal cannabis product shall keep a copy of the certification for no less than seven years. The certification in writing shall relieve the licensee that donates the medicinal cannabis or medicinal cannabis product of liability for use tax only if it is taken in good faith.(2) If a licensee uses the donated medicinal cannabis or medicinal cannabis product in some manner or for some 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) Medicinal cannabis and medicinal cannabis product shall have the same meaning as those terms are defined in Section 26001 of the Business and Professions Code.(d) Cannabis retailer shall have the same meaning as that term is defined in Section 34010.(e) Medicinal cannabis patient shall mean a qualified patient, as defined in Section 11362.7 of the Health and Safety Code, who possesses a physicians recommendation that complies with Article 25 (commencing with Section 2525) of Chapter 5 of Division 2 of the Business and Professions Code, or a qualified patient or primary caregiver for a qualified patient issued a valid identification card pursuant to Section 11362.71 of the Health and Safety Code.(f) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.SEC. 2. (a) It is the intent of the Legislature to apply the requirements of Section 41 of the Revenue and Taxation Code to this act. Therefore, the Legislature finds and declares the following with respect to the tax exemption provided by Section 6414 of the Revenue and Taxation Code, as amended by Section 1 of the act adding this section:(1) The goal and objective of the tax exemption provided by Section 6414 of the Revenue and Taxation Code, as amended by Section 1 of the act adding this section is to eliminate the tax burden placed on charitable cannabis donations to medicinal cannabis patients in order to minimize the need for those patients to turn to the illicit market in the state. By providing a tax exemption for medicinal cannabis products that are donated to medicinal cannabis patients, this act is intended to offset other financial burdens that cannabis licensees face that bar them from donating cannabis to medicinal cannabis patients 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 exemption provided by Section 6414 of the Revenue and Taxation Code, as amended by Section 1 of the act adding this section, is 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 the estimated tax revenue lost, the amount of medicinal cannabis products donated, and the number of medicinal cannabis patients 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 provide any available information requested pursuant to this subdivision to the Legislative Analysts Office. Notwithstanding Section 10231.5 of the Government Code, 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.(b) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.SEC. 3. 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. 4. 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. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. |
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| 50 | 60 | | |
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| 51 | 61 | | The people of the State of California do enact as follows: |
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| 52 | 62 | | |
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| 53 | 63 | | ## The people of the State of California do enact as follows: |
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| 54 | 64 | | |
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| 55 | 65 | | SECTION 1. Section 6414 of the Revenue and Taxation Code is amended to read:6414. (a) The storage, use, or other consumption in this state of medicinal cannabis or medicinal cannabis product shall be exempt from the use tax in either of the following circumstances:(1) The medicinal cannabis or medicinal cannabis product is donated by a cannabis retailer licensed under Division 10 (commencing with Section 26000) of the Business and Professions Code to a medicinal cannabis patient.(2) The medicinal cannabis or medicinal 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 medicinal cannabis patient.(b) (1) The exemption specified in subdivision (a) shall apply only if the cannabis retailer certifies in writing to the licensee that donates the medicinal cannabis or medicinal cannabis product, in such a form as the department may prescribe, that the medicinal cannabis and medicinal cannabis product will be used in a manner and for a purpose specified in subdivision (a). The licensee that donates the medicinal cannabis or medicinal cannabis product shall keep a copy of the certification for no less than seven years. The certification in writing shall relieve the licensee that donates the medicinal cannabis or medicinal cannabis product of liability for use tax only if it is taken in good faith.(2) If a licensee uses the donated medicinal cannabis or medicinal cannabis product in some manner or for some 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) Medicinal cannabis and medicinal cannabis product shall have the same meaning as those terms are defined in Section 26001 of the Business and Professions Code.(d) Cannabis retailer shall have the same meaning as that term is defined in Section 34010.(e) Medicinal cannabis patient shall mean a qualified patient, as defined in Section 11362.7 of the Health and Safety Code, who possesses a physicians recommendation that complies with Article 25 (commencing with Section 2525) of Chapter 5 of Division 2 of the Business and Professions Code, or a qualified patient or primary caregiver for a qualified patient issued a valid identification card pursuant to Section 11362.71 of the Health and Safety Code.(f) This section shall remain in effect only until January 1, 2030, and as of that date is repealed. |
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| 56 | 66 | | |
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| 57 | 67 | | SECTION 1. Section 6414 of the Revenue and Taxation Code is amended to read: |
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| 58 | 68 | | |
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| 59 | 69 | | ### SECTION 1. |
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| 60 | 70 | | |
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| 61 | 71 | | 6414. (a) The storage, use, or other consumption in this state of medicinal cannabis or medicinal cannabis product shall be exempt from the use tax in either of the following circumstances:(1) The medicinal cannabis or medicinal cannabis product is donated by a cannabis retailer licensed under Division 10 (commencing with Section 26000) of the Business and Professions Code to a medicinal cannabis patient.(2) The medicinal cannabis or medicinal 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 medicinal cannabis patient.(b) (1) The exemption specified in subdivision (a) shall apply only if the cannabis retailer certifies in writing to the licensee that donates the medicinal cannabis or medicinal cannabis product, in such a form as the department may prescribe, that the medicinal cannabis and medicinal cannabis product will be used in a manner and for a purpose specified in subdivision (a). The licensee that donates the medicinal cannabis or medicinal cannabis product shall keep a copy of the certification for no less than seven years. The certification in writing shall relieve the licensee that donates the medicinal cannabis or medicinal cannabis product of liability for use tax only if it is taken in good faith.(2) If a licensee uses the donated medicinal cannabis or medicinal cannabis product in some manner or for some 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) Medicinal cannabis and medicinal cannabis product shall have the same meaning as those terms are defined in Section 26001 of the Business and Professions Code.(d) Cannabis retailer shall have the same meaning as that term is defined in Section 34010.(e) Medicinal cannabis patient shall mean a qualified patient, as defined in Section 11362.7 of the Health and Safety Code, who possesses a physicians recommendation that complies with Article 25 (commencing with Section 2525) of Chapter 5 of Division 2 of the Business and Professions Code, or a qualified patient or primary caregiver for a qualified patient issued a valid identification card pursuant to Section 11362.71 of the Health and Safety Code.(f) This section shall remain in effect only until January 1, 2030, and as of that date is repealed. |
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| 62 | 72 | | |
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| 63 | 73 | | 6414. (a) The storage, use, or other consumption in this state of medicinal cannabis or medicinal cannabis product shall be exempt from the use tax in either of the following circumstances:(1) The medicinal cannabis or medicinal cannabis product is donated by a cannabis retailer licensed under Division 10 (commencing with Section 26000) of the Business and Professions Code to a medicinal cannabis patient.(2) The medicinal cannabis or medicinal 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 medicinal cannabis patient.(b) (1) The exemption specified in subdivision (a) shall apply only if the cannabis retailer certifies in writing to the licensee that donates the medicinal cannabis or medicinal cannabis product, in such a form as the department may prescribe, that the medicinal cannabis and medicinal cannabis product will be used in a manner and for a purpose specified in subdivision (a). The licensee that donates the medicinal cannabis or medicinal cannabis product shall keep a copy of the certification for no less than seven years. The certification in writing shall relieve the licensee that donates the medicinal cannabis or medicinal cannabis product of liability for use tax only if it is taken in good faith.(2) If a licensee uses the donated medicinal cannabis or medicinal cannabis product in some manner or for some 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) Medicinal cannabis and medicinal cannabis product shall have the same meaning as those terms are defined in Section 26001 of the Business and Professions Code.(d) Cannabis retailer shall have the same meaning as that term is defined in Section 34010.(e) Medicinal cannabis patient shall mean a qualified patient, as defined in Section 11362.7 of the Health and Safety Code, who possesses a physicians recommendation that complies with Article 25 (commencing with Section 2525) of Chapter 5 of Division 2 of the Business and Professions Code, or a qualified patient or primary caregiver for a qualified patient issued a valid identification card pursuant to Section 11362.71 of the Health and Safety Code.(f) This section shall remain in effect only until January 1, 2030, and as of that date is repealed. |
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| 64 | 74 | | |
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| 65 | 75 | | 6414. (a) The storage, use, or other consumption in this state of medicinal cannabis or medicinal cannabis product shall be exempt from the use tax in either of the following circumstances:(1) The medicinal cannabis or medicinal cannabis product is donated by a cannabis retailer licensed under Division 10 (commencing with Section 26000) of the Business and Professions Code to a medicinal cannabis patient.(2) The medicinal cannabis or medicinal 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 medicinal cannabis patient.(b) (1) The exemption specified in subdivision (a) shall apply only if the cannabis retailer certifies in writing to the licensee that donates the medicinal cannabis or medicinal cannabis product, in such a form as the department may prescribe, that the medicinal cannabis and medicinal cannabis product will be used in a manner and for a purpose specified in subdivision (a). The licensee that donates the medicinal cannabis or medicinal cannabis product shall keep a copy of the certification for no less than seven years. The certification in writing shall relieve the licensee that donates the medicinal cannabis or medicinal cannabis product of liability for use tax only if it is taken in good faith.(2) If a licensee uses the donated medicinal cannabis or medicinal cannabis product in some manner or for some 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) Medicinal cannabis and medicinal cannabis product shall have the same meaning as those terms are defined in Section 26001 of the Business and Professions Code.(d) Cannabis retailer shall have the same meaning as that term is defined in Section 34010.(e) Medicinal cannabis patient shall mean a qualified patient, as defined in Section 11362.7 of the Health and Safety Code, who possesses a physicians recommendation that complies with Article 25 (commencing with Section 2525) of Chapter 5 of Division 2 of the Business and Professions Code, or a qualified patient or primary caregiver for a qualified patient issued a valid identification card pursuant to Section 11362.71 of the Health and Safety Code.(f) This section shall remain in effect only until January 1, 2030, and as of that date is repealed. |
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| 66 | 76 | | |
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| 67 | 77 | | |
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| 68 | 78 | | |
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| 69 | 79 | | 6414. (a) The storage, use, or other consumption in this state of medicinal cannabis or medicinal cannabis product shall be exempt from the use tax in either of the following circumstances: |
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| 70 | 80 | | |
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| 71 | 81 | | (1) The medicinal cannabis or medicinal cannabis product is donated by a cannabis retailer licensed under Division 10 (commencing with Section 26000) of the Business and Professions Code to a medicinal cannabis patient. |
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| 72 | 82 | | |
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| 73 | 83 | | (2) The medicinal cannabis or medicinal 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 medicinal cannabis patient. |
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| 74 | 84 | | |
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| 75 | 85 | | (b) (1) The exemption specified in subdivision (a) shall apply only if the cannabis retailer certifies in writing to the licensee that donates the medicinal cannabis or medicinal cannabis product, in such a form as the department may prescribe, that the medicinal cannabis and medicinal cannabis product will be used in a manner and for a purpose specified in subdivision (a). The licensee that donates the medicinal cannabis or medicinal cannabis product shall keep a copy of the certification for no less than seven years. The certification in writing shall relieve the licensee that donates the medicinal cannabis or medicinal cannabis product of liability for use tax only if it is taken in good faith. |
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| 76 | 86 | | |
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| 77 | 87 | | (2) If a licensee uses the donated medicinal cannabis or medicinal cannabis product in some manner or for some 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. |
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| 78 | 88 | | |
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| 79 | 89 | | (c) Medicinal cannabis and medicinal cannabis product shall have the same meaning as those terms are defined in Section 26001 of the Business and Professions Code. |
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| 80 | 90 | | |
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| 81 | 91 | | (d) Cannabis retailer shall have the same meaning as that term is defined in Section 34010. |
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| 82 | 92 | | |
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| 83 | 93 | | (e) Medicinal cannabis patient shall mean a qualified patient, as defined in Section 11362.7 of the Health and Safety Code, who possesses a physicians recommendation that complies with Article 25 (commencing with Section 2525) of Chapter 5 of Division 2 of the Business and Professions Code, or a qualified patient or primary caregiver for a qualified patient issued a valid identification card pursuant to Section 11362.71 of the Health and Safety Code. |
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| 84 | 94 | | |
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| 85 | 95 | | (f) This section shall remain in effect only until January 1, 2030, and as of that date is repealed. |
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| 86 | 96 | | |
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| 87 | 97 | | SEC. 2. (a) It is the intent of the Legislature to apply the requirements of Section 41 of the Revenue and Taxation Code to this act. Therefore, the Legislature finds and declares the following with respect to the tax exemption provided by Section 6414 of the Revenue and Taxation Code, as amended by Section 1 of the act adding this section:(1) The goal and objective of the tax exemption provided by Section 6414 of the Revenue and Taxation Code, as amended by Section 1 of the act adding this section is to eliminate the tax burden placed on charitable cannabis donations to medicinal cannabis patients in order to minimize the need for those patients to turn to the illicit market in the state. By providing a tax exemption for medicinal cannabis products that are donated to medicinal cannabis patients, this act is intended to offset other financial burdens that cannabis licensees face that bar them from donating cannabis to medicinal cannabis patients 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 exemption provided by Section 6414 of the Revenue and Taxation Code, as amended by Section 1 of the act adding this section, is 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 the estimated tax revenue lost, the amount of medicinal cannabis products donated, and the number of medicinal cannabis patients 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 provide any available information requested pursuant to this subdivision to the Legislative Analysts Office. Notwithstanding Section 10231.5 of the Government Code, 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.(b) This section shall remain in effect only until January 1, 2030, and as of that date is repealed. |
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| 88 | 98 | | |
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| 89 | 99 | | SEC. 2. (a) It is the intent of the Legislature to apply the requirements of Section 41 of the Revenue and Taxation Code to this act. Therefore, the Legislature finds and declares the following with respect to the tax exemption provided by Section 6414 of the Revenue and Taxation Code, as amended by Section 1 of the act adding this section:(1) The goal and objective of the tax exemption provided by Section 6414 of the Revenue and Taxation Code, as amended by Section 1 of the act adding this section is to eliminate the tax burden placed on charitable cannabis donations to medicinal cannabis patients in order to minimize the need for those patients to turn to the illicit market in the state. By providing a tax exemption for medicinal cannabis products that are donated to medicinal cannabis patients, this act is intended to offset other financial burdens that cannabis licensees face that bar them from donating cannabis to medicinal cannabis patients 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 exemption provided by Section 6414 of the Revenue and Taxation Code, as amended by Section 1 of the act adding this section, is 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 the estimated tax revenue lost, the amount of medicinal cannabis products donated, and the number of medicinal cannabis patients 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 provide any available information requested pursuant to this subdivision to the Legislative Analysts Office. Notwithstanding Section 10231.5 of the Government Code, 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.(b) This section shall remain in effect only until January 1, 2030, and as of that date is repealed. |
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| 90 | 100 | | |
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| 91 | 101 | | SEC. 2. (a) It is the intent of the Legislature to apply the requirements of Section 41 of the Revenue and Taxation Code to this act. Therefore, the Legislature finds and declares the following with respect to the tax exemption provided by Section 6414 of the Revenue and Taxation Code, as amended by Section 1 of the act adding this section: |
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| 92 | 102 | | |
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| 93 | 103 | | ### SEC. 2. |
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| 94 | 104 | | |
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| 95 | 105 | | (1) The goal and objective of the tax exemption provided by Section 6414 of the Revenue and Taxation Code, as amended by Section 1 of the act adding this section is to eliminate the tax burden placed on charitable cannabis donations to medicinal cannabis patients in order to minimize the need for those patients to turn to the illicit market in the state. By providing a tax exemption for medicinal cannabis products that are donated to medicinal cannabis patients, this act is intended to offset other financial burdens that cannabis licensees face that bar them from donating cannabis to medicinal cannabis patients who are unable to afford and access safe and tested cannabis in the legal market. |
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| 96 | 106 | | |
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| 97 | 107 | | (2) In order to enable the Legislature to determine whether the tax exemption provided by Section 6414 of the Revenue and Taxation Code, as amended by Section 1 of the act adding this section, is 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 the estimated tax revenue lost, the amount of medicinal cannabis products donated, and the number of medicinal cannabis patients 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 provide any available information requested pursuant to this subdivision to the Legislative Analysts Office. Notwithstanding Section 10231.5 of the Government Code, 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. |
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| 98 | 108 | | |
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| 99 | 109 | | (b) This section shall remain in effect only until January 1, 2030, and as of that date is repealed. |
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| 100 | 110 | | |
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| 101 | 111 | | SEC. 3. 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. |
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| 102 | 112 | | |
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| 103 | 113 | | SEC. 3. 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. |
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| 104 | 114 | | |
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| 105 | 115 | | SEC. 3. 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. |
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| 106 | 116 | | |
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| 107 | 117 | | ### SEC. 3. |
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| 108 | 118 | | |
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| 109 | 119 | | SEC. 4. 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. |
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| 110 | 120 | | |
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| 111 | 121 | | SEC. 4. 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. |
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| 112 | 122 | | |
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| 113 | 123 | | SEC. 4. 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. |
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| 114 | 124 | | |
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| 115 | 125 | | ### SEC. 4. |
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| 116 | 126 | | |
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| 117 | 127 | | SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. |
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| 118 | 128 | | |
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| 119 | 129 | | SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. |
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| 120 | 130 | | |
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| 121 | 131 | | SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. |
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| 122 | 132 | | |
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| 123 | 133 | | ### SEC. 5. |
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