CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 512Introduced by Senator BradfordFebruary 14, 2023 An act to amend Section 34010 of the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGESTSB 512, as introduced, Bradford. Taxation: Cannabis Tax Law.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, establishes the Cannabis Tax Law. That law imposes, among other taxes, a cannabis excise tax upon purchasers of cannabis or cannabis products at a specified rate. That law defines various terms for its purposes.This bill would make a nonsubstantive change to the provision defining those terms.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 34010 of the Revenue and Taxation Code is amended to read:34010. This part shall be known, and may be cited, as the Cannabis Tax Law. For purposes of this part: part, the following definitions apply:(a) 202021 fiscal year baseline means the total amount of funds disbursed in the sub-trust accounts in fiscal year 202122 for the third allocation of the fiscal year 202021 revenue, pursuant to subdivision (f) of Section 34019, as determined by the Department of Finance.(b) Arms length transaction shall mean a sale entered into in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction.(c) Average market price shall mean both of the following:(1) (A) In an arms length transaction, the average retail price determined by the wholesale cost of the cannabis or cannabis products sold or transferred to a cannabis retailer, plus a mark-up, as determined by the department on a biannual basis in six-month intervals.(B) Notwithstanding subparagraph (A), the department shall not increase the mark-up amount during the period beginning on and after the operative date of the act amending this section by adding this subparagraph and before July 1, 2021.(2) In a nonarms length transaction, the cannabis retailers gross receipts from the retail sale of the cannabis or cannabis products.(d) Cannabis has the same meaning as set forth in Section 11018 of the Health and Safety Code and shall also mean medicinal cannabis.(e) Cannabis products has the same meaning as set forth in Section 11018.1 of the Health and Safety Code and shall also mean medicinal concentrates and medicinal cannabis products.(f) Cannabis flowers means the dried flowers of the cannabis plant as defined by the department.(g) Cannabis leaves means all parts of the cannabis plant other than cannabis flowers that are sold or consumed.(h) Cannabis retailer means a person required to be licensed pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code as a retailer, non-storefront retailer, microbusiness, or nonprofit, or any other person otherwise authorized under Division 10 (commencing with Section 26000) of the Business and Professions Code to engage in retail sales.(i) Cultivator means all persons required to be licensed to cultivate cannabis pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.(j) Department means the California Department of Tax and Fee Administration or its successor agency.(k) Designated for donation means medicinal cannabis donated by a cultivator to a cannabis retailer for subsequent donation to a medicinal cannabis patient pursuant to Section 26071 of the Business and Professions Code.(l) Distributor means a person required to be licensed as a distributor pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.(m) Enters the commercial market means cannabis or cannabis products, except for immature cannabis plants and seeds, that complete and comply with a quality assurance review and testing, as described in Section 26110 of the Business and Professions Code.(n) Gross receipts has the same meaning as set forth in Section 6012.(o) Manufacturer means a person required to be licensed as a manufacturer pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.(p) Medicinal cannabis patient means 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.(q) Microbusiness has the same meaning as set forth in Section 26001 of the Business and Professions Code.(r) Nonprofit has the same meaning as set forth in Section 26070.5 of the Business and Professions Code.(s) Person has the same meaning as set forth in Section 6005.(t) Retail sale has the same meaning as set forth in Section 6007.(u) Sale and purchase mean any change of title or possession, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, for consideration.(v) Sub-trust accounts means the sub-trust accounts created under subdivision (f) of Section 34019.(w) Tax fund means the California Cannabis Tax Fund created by Section 34018.(x) Transfer means to grant, convey, hand over, assign, sell, exchange, or barter, in any manner or by any means, with or without consideration.(y) Unprocessed cannabis includes cannabis flowers, cannabis leaves, or other categories of harvested cannabis, categories for unprocessed or frozen cannabis or immature plants, or cannabis that is shipped directly to manufacturers.
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 512Introduced by Senator BradfordFebruary 14, 2023 An act to amend Section 34010 of the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGESTSB 512, as introduced, Bradford. Taxation: Cannabis Tax Law.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, establishes the Cannabis Tax Law. That law imposes, among other taxes, a cannabis excise tax upon purchasers of cannabis or cannabis products at a specified rate. That law defines various terms for its purposes.This bill would make a nonsubstantive change to the provision defining those terms.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Senate Bill
No. 512
Introduced by Senator BradfordFebruary 14, 2023
Introduced by Senator Bradford
February 14, 2023
An act to amend Section 34010 of the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 512, as introduced, Bradford. Taxation: Cannabis Tax Law.
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, establishes the Cannabis Tax Law. That law imposes, among other taxes, a cannabis excise tax upon purchasers of cannabis or cannabis products at a specified rate. That law defines various terms for its purposes.This bill would make a nonsubstantive change to the provision defining those terms.
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, establishes the Cannabis Tax Law. That law imposes, among other taxes, a cannabis excise tax upon purchasers of cannabis or cannabis products at a specified rate. That law defines various terms for its purposes.
This bill would make a nonsubstantive change to the provision defining those terms.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 34010 of the Revenue and Taxation Code is amended to read:34010. This part shall be known, and may be cited, as the Cannabis Tax Law. For purposes of this part: part, the following definitions apply:(a) 202021 fiscal year baseline means the total amount of funds disbursed in the sub-trust accounts in fiscal year 202122 for the third allocation of the fiscal year 202021 revenue, pursuant to subdivision (f) of Section 34019, as determined by the Department of Finance.(b) Arms length transaction shall mean a sale entered into in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction.(c) Average market price shall mean both of the following:(1) (A) In an arms length transaction, the average retail price determined by the wholesale cost of the cannabis or cannabis products sold or transferred to a cannabis retailer, plus a mark-up, as determined by the department on a biannual basis in six-month intervals.(B) Notwithstanding subparagraph (A), the department shall not increase the mark-up amount during the period beginning on and after the operative date of the act amending this section by adding this subparagraph and before July 1, 2021.(2) In a nonarms length transaction, the cannabis retailers gross receipts from the retail sale of the cannabis or cannabis products.(d) Cannabis has the same meaning as set forth in Section 11018 of the Health and Safety Code and shall also mean medicinal cannabis.(e) Cannabis products has the same meaning as set forth in Section 11018.1 of the Health and Safety Code and shall also mean medicinal concentrates and medicinal cannabis products.(f) Cannabis flowers means the dried flowers of the cannabis plant as defined by the department.(g) Cannabis leaves means all parts of the cannabis plant other than cannabis flowers that are sold or consumed.(h) Cannabis retailer means a person required to be licensed pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code as a retailer, non-storefront retailer, microbusiness, or nonprofit, or any other person otherwise authorized under Division 10 (commencing with Section 26000) of the Business and Professions Code to engage in retail sales.(i) Cultivator means all persons required to be licensed to cultivate cannabis pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.(j) Department means the California Department of Tax and Fee Administration or its successor agency.(k) Designated for donation means medicinal cannabis donated by a cultivator to a cannabis retailer for subsequent donation to a medicinal cannabis patient pursuant to Section 26071 of the Business and Professions Code.(l) Distributor means a person required to be licensed as a distributor pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.(m) Enters the commercial market means cannabis or cannabis products, except for immature cannabis plants and seeds, that complete and comply with a quality assurance review and testing, as described in Section 26110 of the Business and Professions Code.(n) Gross receipts has the same meaning as set forth in Section 6012.(o) Manufacturer means a person required to be licensed as a manufacturer pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.(p) Medicinal cannabis patient means 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.(q) Microbusiness has the same meaning as set forth in Section 26001 of the Business and Professions Code.(r) Nonprofit has the same meaning as set forth in Section 26070.5 of the Business and Professions Code.(s) Person has the same meaning as set forth in Section 6005.(t) Retail sale has the same meaning as set forth in Section 6007.(u) Sale and purchase mean any change of title or possession, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, for consideration.(v) Sub-trust accounts means the sub-trust accounts created under subdivision (f) of Section 34019.(w) Tax fund means the California Cannabis Tax Fund created by Section 34018.(x) Transfer means to grant, convey, hand over, assign, sell, exchange, or barter, in any manner or by any means, with or without consideration.(y) Unprocessed cannabis includes cannabis flowers, cannabis leaves, or other categories of harvested cannabis, categories for unprocessed or frozen cannabis or immature plants, or cannabis that is shipped directly to manufacturers.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 34010 of the Revenue and Taxation Code is amended to read:34010. This part shall be known, and may be cited, as the Cannabis Tax Law. For purposes of this part: part, the following definitions apply:(a) 202021 fiscal year baseline means the total amount of funds disbursed in the sub-trust accounts in fiscal year 202122 for the third allocation of the fiscal year 202021 revenue, pursuant to subdivision (f) of Section 34019, as determined by the Department of Finance.(b) Arms length transaction shall mean a sale entered into in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction.(c) Average market price shall mean both of the following:(1) (A) In an arms length transaction, the average retail price determined by the wholesale cost of the cannabis or cannabis products sold or transferred to a cannabis retailer, plus a mark-up, as determined by the department on a biannual basis in six-month intervals.(B) Notwithstanding subparagraph (A), the department shall not increase the mark-up amount during the period beginning on and after the operative date of the act amending this section by adding this subparagraph and before July 1, 2021.(2) In a nonarms length transaction, the cannabis retailers gross receipts from the retail sale of the cannabis or cannabis products.(d) Cannabis has the same meaning as set forth in Section 11018 of the Health and Safety Code and shall also mean medicinal cannabis.(e) Cannabis products has the same meaning as set forth in Section 11018.1 of the Health and Safety Code and shall also mean medicinal concentrates and medicinal cannabis products.(f) Cannabis flowers means the dried flowers of the cannabis plant as defined by the department.(g) Cannabis leaves means all parts of the cannabis plant other than cannabis flowers that are sold or consumed.(h) Cannabis retailer means a person required to be licensed pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code as a retailer, non-storefront retailer, microbusiness, or nonprofit, or any other person otherwise authorized under Division 10 (commencing with Section 26000) of the Business and Professions Code to engage in retail sales.(i) Cultivator means all persons required to be licensed to cultivate cannabis pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.(j) Department means the California Department of Tax and Fee Administration or its successor agency.(k) Designated for donation means medicinal cannabis donated by a cultivator to a cannabis retailer for subsequent donation to a medicinal cannabis patient pursuant to Section 26071 of the Business and Professions Code.(l) Distributor means a person required to be licensed as a distributor pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.(m) Enters the commercial market means cannabis or cannabis products, except for immature cannabis plants and seeds, that complete and comply with a quality assurance review and testing, as described in Section 26110 of the Business and Professions Code.(n) Gross receipts has the same meaning as set forth in Section 6012.(o) Manufacturer means a person required to be licensed as a manufacturer pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.(p) Medicinal cannabis patient means 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.(q) Microbusiness has the same meaning as set forth in Section 26001 of the Business and Professions Code.(r) Nonprofit has the same meaning as set forth in Section 26070.5 of the Business and Professions Code.(s) Person has the same meaning as set forth in Section 6005.(t) Retail sale has the same meaning as set forth in Section 6007.(u) Sale and purchase mean any change of title or possession, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, for consideration.(v) Sub-trust accounts means the sub-trust accounts created under subdivision (f) of Section 34019.(w) Tax fund means the California Cannabis Tax Fund created by Section 34018.(x) Transfer means to grant, convey, hand over, assign, sell, exchange, or barter, in any manner or by any means, with or without consideration.(y) Unprocessed cannabis includes cannabis flowers, cannabis leaves, or other categories of harvested cannabis, categories for unprocessed or frozen cannabis or immature plants, or cannabis that is shipped directly to manufacturers.
SECTION 1. Section 34010 of the Revenue and Taxation Code is amended to read:
### SECTION 1.
34010. This part shall be known, and may be cited, as the Cannabis Tax Law. For purposes of this part: part, the following definitions apply:(a) 202021 fiscal year baseline means the total amount of funds disbursed in the sub-trust accounts in fiscal year 202122 for the third allocation of the fiscal year 202021 revenue, pursuant to subdivision (f) of Section 34019, as determined by the Department of Finance.(b) Arms length transaction shall mean a sale entered into in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction.(c) Average market price shall mean both of the following:(1) (A) In an arms length transaction, the average retail price determined by the wholesale cost of the cannabis or cannabis products sold or transferred to a cannabis retailer, plus a mark-up, as determined by the department on a biannual basis in six-month intervals.(B) Notwithstanding subparagraph (A), the department shall not increase the mark-up amount during the period beginning on and after the operative date of the act amending this section by adding this subparagraph and before July 1, 2021.(2) In a nonarms length transaction, the cannabis retailers gross receipts from the retail sale of the cannabis or cannabis products.(d) Cannabis has the same meaning as set forth in Section 11018 of the Health and Safety Code and shall also mean medicinal cannabis.(e) Cannabis products has the same meaning as set forth in Section 11018.1 of the Health and Safety Code and shall also mean medicinal concentrates and medicinal cannabis products.(f) Cannabis flowers means the dried flowers of the cannabis plant as defined by the department.(g) Cannabis leaves means all parts of the cannabis plant other than cannabis flowers that are sold or consumed.(h) Cannabis retailer means a person required to be licensed pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code as a retailer, non-storefront retailer, microbusiness, or nonprofit, or any other person otherwise authorized under Division 10 (commencing with Section 26000) of the Business and Professions Code to engage in retail sales.(i) Cultivator means all persons required to be licensed to cultivate cannabis pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.(j) Department means the California Department of Tax and Fee Administration or its successor agency.(k) Designated for donation means medicinal cannabis donated by a cultivator to a cannabis retailer for subsequent donation to a medicinal cannabis patient pursuant to Section 26071 of the Business and Professions Code.(l) Distributor means a person required to be licensed as a distributor pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.(m) Enters the commercial market means cannabis or cannabis products, except for immature cannabis plants and seeds, that complete and comply with a quality assurance review and testing, as described in Section 26110 of the Business and Professions Code.(n) Gross receipts has the same meaning as set forth in Section 6012.(o) Manufacturer means a person required to be licensed as a manufacturer pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.(p) Medicinal cannabis patient means 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.(q) Microbusiness has the same meaning as set forth in Section 26001 of the Business and Professions Code.(r) Nonprofit has the same meaning as set forth in Section 26070.5 of the Business and Professions Code.(s) Person has the same meaning as set forth in Section 6005.(t) Retail sale has the same meaning as set forth in Section 6007.(u) Sale and purchase mean any change of title or possession, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, for consideration.(v) Sub-trust accounts means the sub-trust accounts created under subdivision (f) of Section 34019.(w) Tax fund means the California Cannabis Tax Fund created by Section 34018.(x) Transfer means to grant, convey, hand over, assign, sell, exchange, or barter, in any manner or by any means, with or without consideration.(y) Unprocessed cannabis includes cannabis flowers, cannabis leaves, or other categories of harvested cannabis, categories for unprocessed or frozen cannabis or immature plants, or cannabis that is shipped directly to manufacturers.
34010. This part shall be known, and may be cited, as the Cannabis Tax Law. For purposes of this part: part, the following definitions apply:(a) 202021 fiscal year baseline means the total amount of funds disbursed in the sub-trust accounts in fiscal year 202122 for the third allocation of the fiscal year 202021 revenue, pursuant to subdivision (f) of Section 34019, as determined by the Department of Finance.(b) Arms length transaction shall mean a sale entered into in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction.(c) Average market price shall mean both of the following:(1) (A) In an arms length transaction, the average retail price determined by the wholesale cost of the cannabis or cannabis products sold or transferred to a cannabis retailer, plus a mark-up, as determined by the department on a biannual basis in six-month intervals.(B) Notwithstanding subparagraph (A), the department shall not increase the mark-up amount during the period beginning on and after the operative date of the act amending this section by adding this subparagraph and before July 1, 2021.(2) In a nonarms length transaction, the cannabis retailers gross receipts from the retail sale of the cannabis or cannabis products.(d) Cannabis has the same meaning as set forth in Section 11018 of the Health and Safety Code and shall also mean medicinal cannabis.(e) Cannabis products has the same meaning as set forth in Section 11018.1 of the Health and Safety Code and shall also mean medicinal concentrates and medicinal cannabis products.(f) Cannabis flowers means the dried flowers of the cannabis plant as defined by the department.(g) Cannabis leaves means all parts of the cannabis plant other than cannabis flowers that are sold or consumed.(h) Cannabis retailer means a person required to be licensed pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code as a retailer, non-storefront retailer, microbusiness, or nonprofit, or any other person otherwise authorized under Division 10 (commencing with Section 26000) of the Business and Professions Code to engage in retail sales.(i) Cultivator means all persons required to be licensed to cultivate cannabis pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.(j) Department means the California Department of Tax and Fee Administration or its successor agency.(k) Designated for donation means medicinal cannabis donated by a cultivator to a cannabis retailer for subsequent donation to a medicinal cannabis patient pursuant to Section 26071 of the Business and Professions Code.(l) Distributor means a person required to be licensed as a distributor pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.(m) Enters the commercial market means cannabis or cannabis products, except for immature cannabis plants and seeds, that complete and comply with a quality assurance review and testing, as described in Section 26110 of the Business and Professions Code.(n) Gross receipts has the same meaning as set forth in Section 6012.(o) Manufacturer means a person required to be licensed as a manufacturer pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.(p) Medicinal cannabis patient means 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.(q) Microbusiness has the same meaning as set forth in Section 26001 of the Business and Professions Code.(r) Nonprofit has the same meaning as set forth in Section 26070.5 of the Business and Professions Code.(s) Person has the same meaning as set forth in Section 6005.(t) Retail sale has the same meaning as set forth in Section 6007.(u) Sale and purchase mean any change of title or possession, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, for consideration.(v) Sub-trust accounts means the sub-trust accounts created under subdivision (f) of Section 34019.(w) Tax fund means the California Cannabis Tax Fund created by Section 34018.(x) Transfer means to grant, convey, hand over, assign, sell, exchange, or barter, in any manner or by any means, with or without consideration.(y) Unprocessed cannabis includes cannabis flowers, cannabis leaves, or other categories of harvested cannabis, categories for unprocessed or frozen cannabis or immature plants, or cannabis that is shipped directly to manufacturers.
34010. This part shall be known, and may be cited, as the Cannabis Tax Law. For purposes of this part: part, the following definitions apply:(a) 202021 fiscal year baseline means the total amount of funds disbursed in the sub-trust accounts in fiscal year 202122 for the third allocation of the fiscal year 202021 revenue, pursuant to subdivision (f) of Section 34019, as determined by the Department of Finance.(b) Arms length transaction shall mean a sale entered into in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction.(c) Average market price shall mean both of the following:(1) (A) In an arms length transaction, the average retail price determined by the wholesale cost of the cannabis or cannabis products sold or transferred to a cannabis retailer, plus a mark-up, as determined by the department on a biannual basis in six-month intervals.(B) Notwithstanding subparagraph (A), the department shall not increase the mark-up amount during the period beginning on and after the operative date of the act amending this section by adding this subparagraph and before July 1, 2021.(2) In a nonarms length transaction, the cannabis retailers gross receipts from the retail sale of the cannabis or cannabis products.(d) Cannabis has the same meaning as set forth in Section 11018 of the Health and Safety Code and shall also mean medicinal cannabis.(e) Cannabis products has the same meaning as set forth in Section 11018.1 of the Health and Safety Code and shall also mean medicinal concentrates and medicinal cannabis products.(f) Cannabis flowers means the dried flowers of the cannabis plant as defined by the department.(g) Cannabis leaves means all parts of the cannabis plant other than cannabis flowers that are sold or consumed.(h) Cannabis retailer means a person required to be licensed pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code as a retailer, non-storefront retailer, microbusiness, or nonprofit, or any other person otherwise authorized under Division 10 (commencing with Section 26000) of the Business and Professions Code to engage in retail sales.(i) Cultivator means all persons required to be licensed to cultivate cannabis pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.(j) Department means the California Department of Tax and Fee Administration or its successor agency.(k) Designated for donation means medicinal cannabis donated by a cultivator to a cannabis retailer for subsequent donation to a medicinal cannabis patient pursuant to Section 26071 of the Business and Professions Code.(l) Distributor means a person required to be licensed as a distributor pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.(m) Enters the commercial market means cannabis or cannabis products, except for immature cannabis plants and seeds, that complete and comply with a quality assurance review and testing, as described in Section 26110 of the Business and Professions Code.(n) Gross receipts has the same meaning as set forth in Section 6012.(o) Manufacturer means a person required to be licensed as a manufacturer pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.(p) Medicinal cannabis patient means 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.(q) Microbusiness has the same meaning as set forth in Section 26001 of the Business and Professions Code.(r) Nonprofit has the same meaning as set forth in Section 26070.5 of the Business and Professions Code.(s) Person has the same meaning as set forth in Section 6005.(t) Retail sale has the same meaning as set forth in Section 6007.(u) Sale and purchase mean any change of title or possession, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, for consideration.(v) Sub-trust accounts means the sub-trust accounts created under subdivision (f) of Section 34019.(w) Tax fund means the California Cannabis Tax Fund created by Section 34018.(x) Transfer means to grant, convey, hand over, assign, sell, exchange, or barter, in any manner or by any means, with or without consideration.(y) Unprocessed cannabis includes cannabis flowers, cannabis leaves, or other categories of harvested cannabis, categories for unprocessed or frozen cannabis or immature plants, or cannabis that is shipped directly to manufacturers.
34010. This part shall be known, and may be cited, as the Cannabis Tax Law. For purposes of this part: part, the following definitions apply:
(a) 202021 fiscal year baseline means the total amount of funds disbursed in the sub-trust accounts in fiscal year 202122 for the third allocation of the fiscal year 202021 revenue, pursuant to subdivision (f) of Section 34019, as determined by the Department of Finance.
(b) Arms length transaction shall mean a sale entered into in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction.
(c) Average market price shall mean both of the following:
(1) (A) In an arms length transaction, the average retail price determined by the wholesale cost of the cannabis or cannabis products sold or transferred to a cannabis retailer, plus a mark-up, as determined by the department on a biannual basis in six-month intervals.
(B) Notwithstanding subparagraph (A), the department shall not increase the mark-up amount during the period beginning on and after the operative date of the act amending this section by adding this subparagraph and before July 1, 2021.
(2) In a nonarms length transaction, the cannabis retailers gross receipts from the retail sale of the cannabis or cannabis products.
(d) Cannabis has the same meaning as set forth in Section 11018 of the Health and Safety Code and shall also mean medicinal cannabis.
(e) Cannabis products has the same meaning as set forth in Section 11018.1 of the Health and Safety Code and shall also mean medicinal concentrates and medicinal cannabis products.
(f) Cannabis flowers means the dried flowers of the cannabis plant as defined by the department.
(g) Cannabis leaves means all parts of the cannabis plant other than cannabis flowers that are sold or consumed.
(h) Cannabis retailer means a person required to be licensed pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code as a retailer, non-storefront retailer, microbusiness, or nonprofit, or any other person otherwise authorized under Division 10 (commencing with Section 26000) of the Business and Professions Code to engage in retail sales.
(i) Cultivator means all persons required to be licensed to cultivate cannabis pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.
(j) Department means the California Department of Tax and Fee Administration or its successor agency.
(k) Designated for donation means medicinal cannabis donated by a cultivator to a cannabis retailer for subsequent donation to a medicinal cannabis patient pursuant to Section 26071 of the Business and Professions Code.
(l) Distributor means a person required to be licensed as a distributor pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.
(m) Enters the commercial market means cannabis or cannabis products, except for immature cannabis plants and seeds, that complete and comply with a quality assurance review and testing, as described in Section 26110 of the Business and Professions Code.
(n) Gross receipts has the same meaning as set forth in Section 6012.
(o) Manufacturer means a person required to be licensed as a manufacturer pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.
(p) Medicinal cannabis patient means 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.
(q) Microbusiness has the same meaning as set forth in Section 26001 of the Business and Professions Code.
(r) Nonprofit has the same meaning as set forth in Section 26070.5 of the Business and Professions Code.
(s) Person has the same meaning as set forth in Section 6005.
(t) Retail sale has the same meaning as set forth in Section 6007.
(u) Sale and purchase mean any change of title or possession, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, for consideration.
(v) Sub-trust accounts means the sub-trust accounts created under subdivision (f) of Section 34019.
(w) Tax fund means the California Cannabis Tax Fund created by Section 34018.
(x) Transfer means to grant, convey, hand over, assign, sell, exchange, or barter, in any manner or by any means, with or without consideration.
(y) Unprocessed cannabis includes cannabis flowers, cannabis leaves, or other categories of harvested cannabis, categories for unprocessed or frozen cannabis or immature plants, or cannabis that is shipped directly to manufacturers.