SEPTEMBER 2018 - Capitol Corner

On August 31st, the Legislature adjourned for the 2017-18 legislative session.  Of the hot end-of-session bills, like wildfire liability and net neutrality, some cannabis bills were still being debated on the Floor. Of the many cannabis-related bills, three have already been signed and one vetoed by the Governor.  Twenty-three never made it fully through the legislative process, and these are the fourteen bills pending Governor action before the September 30th deadline:

AB 1793 (Bonta) - This bill expedites the identification, review, and notification of individuals who may be eligible for recall or dismissal, dismissal and sealing, or redesignation of specified cannabis-related convictions.

AB 1863 (Jones-Sawyer) - This bill allows taxpayers subject to Personal Income Tax Law to deduct ordinary and necessary business expenses attributable to commercial cannabis activity by a licensee.

AB 2020 (Quirk) - This bill would authorize the Bureau of Cannabis Control to issue a temporary state license to provide on-site sales and consumption of cannabis at a temporary event located at a fairground, district agricultural association event, or at another venue expressly approved by a local jurisdiction. 

AB 2255 (Lackey) - Would allow law enforcement to seize and potentially destroy cannabis, in consultation with the Bureau of Cannabis Control (BCC), if a licensed distributor is found to be transporting cannabis or cannabis product that is significantly in excess of the amount stated on the shipping manifest.  Clarifies that transportation of cannabis or cannabis product with a counterfeit shipping manifest is unlawful.

AB 2799 (Jones-Sawyer) - Requires an applicant for a state license under the Medicinal and Adult Use Cannabis Regulation and Safety Act (MAUCRSA) to provide a statement that the applicant employs, or will employ within one year of receiving a license, an employee who has successfully completed a training course offered by a training provider authorized by an Occupational Safety and Health Administration (OSHA) Training Institute Education Center.  Exempts applicants with only one employee.

AB 2899 (Rubio) - Prohibits a cannabis licensee from publishing or disseminating advertising or marketing while the licensee's license is suspended.

AB 2914 (Cooley) - Prohibits an alcoholic beverage licensee from selling, offering, or providing cannabis or cannabis products, including the sale of an alcoholic beverage that contains cannabis, and clarifies existing law banning alcoholic beverages containing tetrahydrocannabinol or cannabinoids, regardless of source.

AB 2980 (Gipson) - Redefines "premises" for purposes of licensed cannabis businesses to allow for the sharing of common use areas, such as bathrooms, breakrooms, locker rooms, hallways, or loading docks wherein no license privileges are exercised.

SB 311 (Pan) - This bill authorizes a distributor to transport cannabis and cannabis products to another distributor.

SB 829 (Wiener) - This bill allows specified cannabis licensee holders to donate medicinal cannabis and medicinal cannabis products to qualified patients, and allows such donations to be exempt from the cultivation tax, the use tax, and the excise tax.

SB 1294 (Bradford) - This bill establishes the California Cannabis Equity Act of 2018, which will allow, upon appropriations by the Legislature, a local jurisdiction to submit an application to the Bureau of Cannabis Control (Bureau) for a grant to assist local equity applicants and local equity licensees through that local jurisdiction’s equity program; requires the Bureau to post model ordinances; and requires the Bureau to publish a report on local jurisdiction equity programs, as specified.

SB 1409 (Wilk) - This bill updates existing California law pertaining to the production and cultivation of industrial hemp. 

SB 1453 (McGuire) - This bill provides that an action under Section 4601.1 of the Public Resources Code for specified violations of the Z’berg-Nejedly Forest Practice Act of 1973 involving the conversion of timberland to nonforestry-related agricultural uses must be commenced within three years.  

SB 1459 (Cannella) - This bill establishes a provisional cannabis license that may be issued at the sole discretion of a licensing authority, as specified, until January 1, 2020.

Regulations –

The Bureau of Cannabis Control held their last of three public meetings for public comment on their draft permanent regulations.  Among the broad array of topics brought by the public were: dynamic delivery, compassionate care tax breaks, adopting compositing rules for testing to allow more strains, ability to use 3rd party testing to refute false-positive testing, undoing “exit packaging”, delivery origination vs. destination, etc. 

The Bureau anticipates permanent regulations will be complete by December, but until then the emergency readopted regulations remain in effect.

Here is a summary of the proposed regulatory changes.

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