Today's Law As Amended


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AB-1569 Sales and use tax: medicinal cannabis: veterans.(2019-2020)



As Amends the Law Today


SECTION 1.

 Section 6377 is added to the Revenue and Taxation Code, to read:

6377.
 (a) Beginning on and after January 1, 2020, there are exempted from the taxes imposed by this part, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, medicinal cannabis or medicinal cannabis product purchased by a qualified patient or a primary caregiver of a qualified patient from a medicinal cannabis licensee if that qualified patient or primary caregiver provides an attending physician’s recommendation for that qualified patient, a valid state government-issued identification card for that qualified patient, and a valid Veteran Health Identification Card for that qualified patient.
(b) For purposes of this section, all of the following terms shall apply:
(1) “Attending physician” shall have the same meaning as in Section 11362.7 of the Health and Safety Code.
(2) “Licensee” shall have the same meaning as in Section 26001 of the Business and Professions Code.
(3) “Medicinal cannabis” and “medicinal cannabis product” shall have the same meaning as in Section 26001 of the Business and Professions Code.
(4) “Physician’s recommendation” means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code.
(5) “Primary caregiver” shall have the same meaning as in Section 11362.7 of the Health and Safety Code.
(6) “Qualified patient” shall have the same meaning as in Section 11362.7 of the Health and Safety Code.
(7) “Veteran Health Identification Card” means a valid Veteran Health Identification Card (VHIC) issued by the federal Department of Veteran Affairs with a service connected disability rating displayed on the identification card.
(c) This section shall become inoperative on January 1, 2030.
SEC. 2.
 (a) It is the intent of the Legislature to apply the requirements of Section 41 of the Revenue and Taxation Code to the sales and use tax exemption provided by Section 6377 of the Revenue and Taxation Code, as proposed to be added by Section 1 of this act.
(b) The primary goal of the sales and use tax exemption provided by Section 6377 of the Revenue and Taxation Code, as proposed to be added by Section 1 of this act, is to increase the sales of the licensed regulated cannabis market by incentivizing veterans with a medical condition to purchase cannabis products in the legal market.
(c) Success of the sales and use tax exemption provided by Section 6377 of the Revenue and Taxation Code, as proposed to be added by Section 1 of this act, shall be measured by the increase in the following metrics:
(1) The total annual and quarterly sales by retailers of medicinal cannabis or medicinal cannabis products.
(2) The annual number of sales and use tax exemptions taken pursuant to Section 6377 of the Revenue and Taxation Code, as proposed to be added by Section 1 of this act.
(d) The California Department of Tax and Fee Administration shall have the following data collection and reporting requirements:
(1) The total annual and quarterly sales by retailers of medicinal cannabis or medicinal cannabis products.
(2) The annual number of sales and use tax exemptions taken pursuant to Section 6377 of the Revenue and Taxation Code, as proposed to be added by Section 1 of this act.
(e) This section shall become inoperative on January 1, 2031.
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.
 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.