Today's Law As Amended

PDF |Add To My Favorites | print page

AB-924 Indian tribes: commercial cannabis activity.(2017-2018)

As Amends the Law Today

 The Legislature finds and declares all of the following:
(a) In November 1996, voters approved Proposition 215, which decriminalized the use of medicinal cannabis in California. Since the proposition was passed, most, if not all, of the regulation has been performed by local governments.
(b) In 2015, California enacted three bills (Assembly Bill 243 (Wood, Chapter 688 of the Statutes of 2015); Assembly Bill 266 (Bonta, Chapter 689 of the Statutes of 2015); and Senate Bill 643 (McGuire, Chapter 719 of the Statutes of 2015)) that collectively established a comprehensive state regulatory framework for the licensing and enforcement of cultivation, manufacturing, retail sale, transportation, storage, delivery, and testing of medicinal cannabis in California. This regulatory scheme is known as the Medical Cannabis Regulation and Safety Act (MCRSA).
(c) In November 2016, voters approved Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA). Under Proposition 64, adults 21 years of age or older may legally grow, possess, and use cannabis for nonmedicinal purposes, with certain restrictions. In addition, beginning on January 1, 2018, AUMA makes it legal under state law to sell and distribute cannabis through a regulated business.
(d) In 2017, California enacted Senate Bill 94 and Assembly Bill 133 (Chapters 27 and 253 of the Statutes of 2017), which enacted the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) to consolidate the license and regulation of commercial medicinal and adult-use cannabis activities under a single regulatory framework.
(e) Although California has chosen to legalize the cultivation, distribution, and use of cannabis, it remains an illegal Schedule I controlled substance under federal law. The intent of Proposition 64 and MAUCRSA was to ensure a comprehensive regulatory system that takes production and sales of cannabis away from an illegal market and curtails the illegal diversion of cannabis from California into other states or countries. The state has legalized cannabis through MAUCRSA and AUMA.
(f) The state has criminal jurisdiction over Indian land located within the state pursuant to federal law commonly known as Public Law 280 (PL-280).
(g) Indian tribes have inherent authority to engage in commercial activity on tribal land.
(h) MAUCRSA and Proposition 64 did not include provisions to address how Indian tribes would interact with the regulated California marketplace where state-licensed businesses are limited to conducting business only with other state-licensed businesses.
(i) California has an interest in ensuring the health and safety of the California consumers of cannabis products that were cultivated or manufactured on tribal land.
(j) California has an interest in promoting economic development and self-sufficiency by Indian tribes.
(k) Indian tribes have a vested interest in ensuring the protection of the public health, welfare, and safety in connection with commercial cannabis activity that occurs within a tribe’s jurisdiction, including, but not limited to, protecting minors, preserving environmental resources, and preventing the illegal diversion of cannabis or cannabis products outside of the regulated market.
(l) California is committed to interacting with Indian tribes on a mutually respectful government-to-government basis to enhance public health and safety, ensure a lawful and well-regulated cannabis market, encourage economic development in Indian country, and provide fiscal benefits to both California tribes and the state.
(m) Local governments serve a critical role in California’s program for the regulation of commercial cannabis activities, and should be afforded the ability to provide input concerning potential impacts from commercial cannabis activity occurring on lands adjacent to their jurisdiction.
(n) The purpose and intent of this measure is to establish a framework for affording full faith and credit between the State of California and federally recognized Indian tribes as an affirmation of tribal sovereignty, including, but not limited to, recognition of tribal laws, ordinances, resolutions, legislative acts, and regulations governing commercial cannabis activity in Indian country, and authorizing commercial cannabis activity between tribally licensed entities and state-licensed entities in a manner that protects public health and safety and the environment.
(o) The provisions of this bill authorizing the Governor to enter into government-to-government agreements with Indian tribes concerning the control, regulation, and taxation of commercial cannabis activity in Indian country, with ratification by the Legislature, further the purposes and intent of Proposition 64.

SEC. 2.

 Chapter 23 (commencing with Section 26240) is added to Division 10 of the Business and Professions Code, to read:

CHAPTER  23. Agreements with Tribal Governments
 This chapter shall be known, and may be cited, as the Cannabis Regulatory Enforcement Act for Tribal Entities or the “CREATE Act.”
 A tribe entering into a tribal cannabis regulatory agreement with the Governor, as ratified by the Legislature, shall establish a tribal cannabis regulatory commission or agency pursuant to the tribe’s established governmental process.