Today's Law As Amended


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SB-603 Cannabis license deferral and waiver fee program: tax credit.(2021-2022)



As Amends the Law Today


SECTION 1.

 Section 26249 of the Business and Professions Code is amended to read:

26249.
 (a) Notwithstanding Sections 26012 and 26180:
(1) (a)  On or before January 1, 2022, the department Notwithstanding Sections 26012 and 26180, a licensing authority  shall develop and implement a program to provide waivers for application fees, licensing fees, and renewal fees  a deferral or waiver for an application fee, a licensing fee, or renewal fee otherwise  required by this division. division for a needs-based applicant or needs-based licensee. 
(2) On or before January 1, 2023, the department shall develop and implement a program to provide deferrals for application fees, licensing fees, and renewal fees required by this division.
(b) (1) At least 60 percent of the total dollar amount of deferrals of fees pursuant to the program developed and implemented by the department  a licensing authority  pursuant to subdivision (a) shall be allocated to the deferral of fees for local  equity applicants and licensees.
(2) At least 60 percent of the total dollar amount of waivers of fees pursuant to the program developed and implemented by the department  a licensing authority  pursuant to subdivision (a) shall be allocated to the waiver of fees for local  equity applicants and licensees.
(c) For purposes of this section, “equity applicants and licensees” means applicants and licensees that demonstrate all of the following:
(1) (A) For applicants and licensees in local jurisdictions with local equity programs, that they are locally verified equity applicants and licensees; or
(B) For applicants and licensees in local jurisdictions without local equity programs, that they are local applicants and licensees.
(2) That they, either individually or in combination with other persons who qualify as equity applicants or licensees pursuant to this section, own no less than 50 percent of the business that is in the process of being licensed or is licensed.
(3) That they satisfy one of the following:
(A) They have previously been convicted of an offense related to the sale, possession, use, manufacture, or cultivation of cannabis, under past criminal justice policies implementing cannabis prohibition.
(B) They have previously been arrested for an offense related to the sale, possession, use, manufacture, or cultivation of cannabis, under past criminal justice policies implementing cannabis prohibition.
(C) Residence in a household with a household income less than or equal to 60 percent of the area median income for the applicable local jurisdiction.
(D) Residence in an area with a population disproportionately impacted by past criminal justice policies implementing cannabis prohibition.
(4) The eligibility for those that qualify pursuant to the criteria listed under subparagraphs (A) to (D), inclusive, of paragraph (3) may be further refined by the department through regulations, including, but not limited to, regulations regarding the following:
(A) Criteria regarding the license or licenses an applicant or licensee may seek or hold.
(B) Criteria regarding the time period or length of time in which an applicant or licensee resided in a low-income household for purposes of subparagraph (C) of paragraph (3), or in an area with a population disproportionately impacted by past criminal justice policies implementing cannabis prohibition for purposes of subparagraph (D) of paragraph (3).
(d) (c)   The department A licensing authority  may adopt regulations, including  emergency regulations to implement this section. The adoption, amendment, repeal, or readoption of a regulation authorized by this section is deemed to address an emergency, for purposes of Sections 11346.1 and 11349.6 of the Government Code, and the department is  licensing authorities are  hereby exempted from the requirements of subdivision (b) of Section 11346.1 of the Government Code.
(e) (d)  The operation of this section is contingent upon an appropriation in the annual Budget Act or another statute for purposes of this section.  

SEC. 2.

 Section 17053.71 is added to the Revenue and Taxation Code, to read:

17053.71.
 (a) For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed against the “net tax,” as defined by Section 17039, a cannabis equity business tax credit equal to the amount of state and local cannabis licensing fees paid or incurred by a qualified taxpayer that are not otherwise reimbursed by a grant or other funds.
(b) For purposes of this section, “qualified taxpayer” means either a local equity applicant or local equity licensee as defined in Section 26240 of the Business and Professions Code.
(c) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following taxable year, and succeeding six taxable years if necessary, until the credit is exhausted.

SEC. 3.

 Section 23687.5 is added to the Revenue and Taxation Code, to read:

23687.5.
 (a) For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed against the “tax,” as defined by Section 23036, a cannabis equity business tax credit equal to the amount of state and local cannabis licensing fees paid or incurred by a qualified taxpayer that are not otherwise reimbursed by a grant or other funds.
(b) For purposes of this section, “qualified taxpayer” means either a local equity applicant or local equity licensee as defined in Section 26240 of the Business and Professions Code.
(c) In the case where the credit allowed by this section exceeds the “tax,” the excess may be carried over to reduce the “tax” in the following taxable year, and succeeding six taxable years if necessary, until the credit is exhausted.
SEC. 4.
 It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code.
SEC. 5.
 The Legislature finds and declares that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.