Legal Weed: California Lawmakers Leave Many Marijuana Policies in Suspense

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California lawmakers returned from summer recess to a busy week of committee hearings. Seventeen cannabis bills had hearings in Sacramento for the week ending Friday, August 10, 2018. We’ve broken down the status of each bill and what steps are to follow.

AB 1744 — After-school Programs (Placed in suspense file)

AB 1744 would allocate cannabis tax revenues to provide grants for the After-School Education and Safety Program. Qualifying after-school programs are required to provide youth development activities that promote healthful lifestyle choices and behaviors in order to receive funding. AB 1744  was placed in the suspense file with a vote of 7-0 by the Senate Appropriations Committee Monday, Aug. 6, 2018. The suspense file is a holding placing for any bill with an annual cost to the state greater than $150,000. Bills are held in the suspense file before the fiscal deadline to offer each legislative chamber time to allocate funds. Bills that are moved out of the suspense file go to the floor for a final reading and vote, while bills held in suspense die.

AB 1793 — Resentencing for Cannabis Convictions (Placed in Suspense File)

AB 1793 would require the California Department of Justice (DOJ) to review all convictions that could potentially be eligible for resentencing under the Adult Use of Marijuana Act of 2016 (AUMA), or Proposition 64, before July 1, 2019. The bill would allow prosecutors to challenge convictions that do not fully meet the eligibility requirements. AB 1793 was also placed in the suspense file Monday, Aug. 6, 2018, with a 7-0 vote by the Senate Appropriations Committee.

AB 1863 — Personal Income Tax Deductions (Passed Committee)

AB 1863 would allow California-licensed, state-compliant cannabis businesses to deduct business expenses under the Personal Income Tax Law. If passed, the bill would go into effect immediately. The Senate Governance and Finance Committee voted 6-0 to pass AB 1863 on Wednesday, Aug. 8, 2018. The bill will proceed to the Senate Appropriations Committee.

AB 1996 — California Cannabis Research Program (Placed in Suspense File)

AB 1996 would establish the California Cannabis Research Program to develop studies and conduct cannabis research. The bill proposes to allocate resources from the California Tax Fund to cultivate cannabis for research purposes. The Senate Appropriations Committee placed AB 1996 in the suspense file Monday, Aug. 6, 2018.

AB 2020 — Temporary Event Licenses for Onsite Sales (Placed in Suspense File)

AB 2020 proposes a state temporary cannabis event license to be issued to a licensee for events to be held at any venue zoned or approved by a local licensing authority for events. Additionally, the bill would authorize onsite cannabis sales and consumption for adults 21 and older, as long as all participants in the event are licensed under the Medicinal and Adult-use Cannabis Regulation and Safety Act (MAUCRSA). AB 2020 was placed in the suspense file following a Senate Appropriations Committee hearing on Monday, Aug. 6, 2018.

AB 2215 — Veterinary Cannabis Medicine Ban (Ordered for Third  Reading)

AB 2215 proposes to prohibit a veterinarian from recommending or administering cannabis to an animal patient. The bill would authorize the Veterinary Medical Board to revoke or suspend a license, or to assess a fine for violating a controlled substances law. AB 2215 was read a second time Monday, Aug. 6, 2018, before the Senate Appropriations Committee, which ordered a third reading.

AB 2255 — Transportation Limits (Ordered for Third Reading)

AB 2255 would prohibit licensed distributors from transporting cannabis that exceeds the amount stated on a shipping manifest. Violations would result in fines. Additionally, the bill would prevent law enforcement officers from seizing cannabis in transport without probable cause. AB 2255 was read a second time Monday, Aug. 6, 2018, before the Senate Appropriations Committee, which ordered a third reading.

AB 2402 — Personal Information Privacy (Ordered for Third  Reading)

AB 2402 prohibits a MAUCRSA licensee from sharing a consumer’s personal information to a third party without the consumer’s consent. The bill would also prevent a licensee from denying a consumer a product or service if they do not consent to sharing their information. AB 2402 was read a second time Monday, Aug. 6, 2018, before the Senate Appropriations Committee, which ordered a third reading.

AB 2555 — Legal Language of Cannabis (Ordered for Third Reading)

AB 2555 proposes to amend sections of the California Business and Professions code by adding definitions for the terms “immature cannabis plant,” “mature cannabis plant,” and “plant.” Additionally, instead of requiring a unique identifier to be issued for each cannabis plant, the bill would require a unique identifier for each mature cannabis plant. AB 2555 was read a second time Monday, Aug. 6, 2018, before the Senate Appropriations Committee, which ordered a third reading.

AB 2641 — Temporary Event Licenses for Sales (Ordered for Third Reading)

AB 2641 proposes for the Bureau of Cannabis Control (BCC) to issue a temporary cannabis retailer license to qualified licensees for the transportation and sale of any cannabis products at a licensed temporary cannabis event. The bill would require an application be sent to the BCC, including a list of all licensed participating business. AB 2641 was read a second time, and ordered to a third reading following a Senate Appropriations Committee hearing on Monday, Aug. 6, 2018.

AB 2899 — Cannabis Advertisement Restrictions (Ordered for Third Reading)

AB 2899 would prohibit a licensee from publishing advertisements or marketing materials for cannabis and cannabis products under a suspended license. The bill was read a second time Monday, Aug. 6, 2018, before the Senate Appropriations Committee, which ordered a third reading.

AB 2914 — Cannabis in Alcoholic Beverages (Ordered for Third Reading)

AB 2914 would prohibit a cannabis licensee from producing or selling cannabis products in alcoholic beverages. Additionally, this bill would prevent any alcoholic beverage licensee from selling, offering, or providing cannabis or cannabis products. AB 2914 would authorize the Department of Alcohol Beverage Control (ABC) to suspend or revoke a license if a violation is found. The bill was read a second time Monday, Aug. 6, 2018, before the Senate Appropriations Committee, which ordered to a third reading.

AB 2980 — Common Areas Shared by Cannabis Businesses (Ordered for Third Reading)

AB 2980 would require that sections of the MAUCRSA not be misinterpreted in a manner that would prevent two or more licensed premises from sharing common-use areas, as long as all licensees comply with the requirements of the act. The bill was read a second time Monday, Aug. 6 2018, before the Senate Appropriations Committee, which ordered to a third reading.

AB 924 — Commercial Cannabis Regulation on Native American Tribal Lands (Hearing Postponed by Committee)

AB 924 would establish the Cannabis Regulatory Enforcement Act for Tribal Entities (CREATE Act). Under the CREATE Act, participating tribes would be required to enter a tribal cannabis regulatory agreement with the governor for the purpose of establishing a tribal cannabis regulatory commission or agency. All tribal cannabis regulatory agreements and subsequent tribal commissions and agencies must be approved by the Legislature. A hearing for AB 924 was rescheduled for Monday, Aug.13, 2018, before the Senate Appropriations Committee.

SB 1459 — County Agricultural Commission Reporting (Passed Committee)

SB 1459 would require county agricultural commissioners to include cannabis among reports of the condition, acreage, production, and value of agricultural products submitted to the secretary of Food and Agriculture. SB 1459 passed the Assembly Appropriations Committee 13-4 and has been ordered for a third reading on the Senate floor.

SB 829 — Compassionate-care Licenses (Placed in Suspense File)

SB 829 proposes the BCC issue and regulate compassionate-care licenses, which are issued to donors of medicinal cannabis or marijuana products to qualified patients who possess a physician’s recommendation. SB 829 was placed in following an Assembly Appropriations Committee hearing Wednesday, Aug. 8, 2018.   

SB 930 — State-chartered Financial Institutions for Cannabis (Placed in Suspense File)

SB 930 would create a state charter for privately financed banks and credit unions for the purpose of offering banking services to licensed cannabis businesses. Administered by the Commissioner of Business Oversight and the Department of Business Oversight, the program would also create the Cannabis Limited Charter Bank and Credit Union Advisory Board to include the treasurer, the controller and the chief of the BCC as policy directors. SB 930 was placed in the suspense file Wednesday, Aug. 8, 2018, by the Assembly Appropriations Committee.

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