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SB-148 State Board of Equalization: counties: state agencies: collection of cash payments: cannabis-related businesses.(2017-2018)

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Date Published: 03/23/2017 09:00 PM
SB148:v98#DOCUMENT

Amended  IN  Senate  March 23, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 148


Introduced by Senators Wiener and Atkins

January 17, 2017


An act to add Part 13.5 (commencing with Section 31001) to Division 2 of, and to repeal the heading of Part 13.5 (commencing with Section 31020) to of Division 2 of, the Revenue and Taxation Code, relating to cannabis, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


SB 148, as amended, Wiener. State Board of Equalization: counties: state agencies: collection of cash payments: cannabis-related businesses.
Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election, exempts from specified criminal penalties the possession or cultivation of medical marijuana by patients and primary caregivers. The Control, Regulate and Tax Adult Use of Marijuana Act of 2016, an initiative measure enacted by the approval of Proposition 64 at the November 8, 2016, statewide general election, provides for the licensure and regulation of commercial adult marijuana activities by various state agencies. The Medical Cannabis Regulation and Safety Act provides for the licensure and regulation of commercial medical cannabis activity by various state entities.
This bill would enact the Cannabis State Payment Collection Law and would authorize the State Board of Equalization or a county to collect cash payments from cannabis-related businesses for a state agency that administers any fee, fine, penalty, tax, or other charge payable by a cannabis-related business, if that state agency has entered into an agreement with the board or county. This bill would require a county to collect only if both the board of supervisors of the county and the county tax collector or county treasurer-tax collector approves of entering into an agreement with a state agency to make those collections. The bill would similarly authorize the board to enter into an agreement with a county to collect cash payments from cannabis-related businesses for any fee, fine, penalty, tax, or other charge that is payable to the county. The bill would require the agreement to include specified provisions, including that the board or county transmit the collected moneys to the Treasurer to be deposited in the State Treasury to the credit of the funds or accounts in which the fees, fines, penalties, taxes, or other charges are otherwise required by law to be deposited, as specified.
For the collection by the board or a county of regulatory fees on the behalf of a state agency agency, or by the board of regulatory fees on behalf of a county, pursuant to an agreement, this bill would continuously appropriate to the board or county an amount equal to the amount necessary for its costs of collection, not to exceed 10% of the amounts collected, from the funds or accounts in which those regulatory fees are to be deposited. For the collection by the board or a county of fees, fines, penalties, taxes, or other charges on behalf of a state agency agency, or by the board on behalf of a county, pursuant to an agreement, the bill would require the board or county to be reimbursed for its costs of collection from the funds or accounts in which those fees, fines, penalties, taxes, or other charges are to be deposited, not to exceed 10% of the amounts collected, upon appropriation by the Legislature.
This bill would also allow a state agency that enters into an agreement with the board or a county county, or a county that enters into an agreement with the board, to impose a cash collection fee in an amount reasonably necessary to recover the collection costs to be incurred by the board or county in dealing with cash payments, not to exceed 10% of any amounts collected. The bill would require the cash collection fee to be determined by the state agency, agency that entered into the agreement, or by the county that entered into the agreement, as applicable, and would require any cash collection fees to be deposited into the funds or accounts in which the fees, fine, penalty, or other charge to be collected is deposited.
Vote: MAJORITY   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 The heading of Part 13.5 (commencing with Section 31020) of Division 2 of the Revenue and Taxation Code is repealed.

SEC. 2.

 Part 13.5 (commencing with Section 31001) is added to Division 2 of the Revenue and Taxation Code, to read:

PART 13.5. Cannabis State Payment Collection Law

31001.
 This part shall be known, and may be cited, as the Cannabis State Payment Collection Law.

31002.
 All of the following definitions shall apply for purposes of this part:
(a) “County” means a county and a city and county.
(b) “Regulatory fee” means a charge as defined in paragraph (3) of subdivision (b) of Section 3 of Article XIII A of the California Constitution.
(c) “State agency” means a state entity, as defined in Section 11000 of the Government Code, that administers any fee, fine, penalty, tax, or other charge payable by a cannabis-related business. As used in this part, “state agency” includes, but is not limited to, the following:
(1) The Bureau of Marijuana Control.
(2) The Department of Consumer Affairs.
(3) The Department of Fish and Wildlife.
(4) The Department of Food and Agriculture.
(5) The Department of Pesticide Regulation.
(6) The Employment Development Department.
(7) The Franchise Tax Board.
(8) The regional water boards described in Chapter 4 (commencing with Section 13200) of Division 7 of the Water Code.
(9) The State Department of Public Health.
(10) The State Water Resources Control Board.

31003.
 (a) (1) The board or a county may enter into an agreement with a state agency to collect cash payments for any fee, fine, penalty, tax, or other charge payable to the state agency by a person that is a cannabis-related business in accordance with provisions of this part.
(2) The board may enter into an agreement with a county to collect cash payments in accordance with provisions of this part for any fee, fine, penalty, tax, or other charge payable to the county relating to the cultivating, dispensing, producing, processing, preparing, storing, providing, donating, selling, or distributing of cannabis.
(b) (1) The board shall collect fees, fines, penalties, taxes, and other charges if the board enters into an agreement with a state agency to make those collections described in paragraph (1) of subdivision (a).
(2) A county shall collect fees, fines, penalties, taxes, and other charges only if both the board of supervisors of the county and the county tax collector or county treasurer-tax collector approves of entering into an agreement with a state agency to make those collections described in paragraph (1) of subdivision (a).
(3) The board shall collect fees, fines, penalties, taxes, and other charges if the board enters into an agreement with a county to make those collections described in paragraph (2) of subdivision (a).
(c) (1) For the collection by the board or a county of regulatory fees on the behalf of a state agency agency, or by the board on behalf of a county, pursuant to an agreement authorized by this part, the board or county shall be reimbursed for its costs of collection from the funds or accounts in which those regulatory fees are to be deposited, not to exceed 10 percent of the amounts collected. Notwithstanding Section 13340 of the Government Code, there is hereby continuously appropriated to the board or county an amount equal to the amount necessary for its costs of collection of regulatory fees on the behalf of a state agency agency, or by the board on behalf of a county, pursuant to an agreement authorized by this part, not to exceed 10 percent of the amounts collected, from the funds or accounts in which those regulatory fees are to be deposited.
(2) For the collection by the board or a county of fines, penalties, taxes, or other charges on the behalf of a state agency agency, or by the board on behalf of a county, pursuant to an agreement authorized by this part, the board or county shall be reimbursed for its costs of collection from the funds or accounts which those fines, penalties, taxes, or other charges are to be deposited, not to exceed 10 percent of the amounts collected, upon appropriation by the Legislature.
(d) (1) A state agency that enters into an agreement with the board or a county county, or a county that enters into an agreement with the board, pursuant to the authorization of this part may impose a cash collection fee in an amount reasonably necessary to recover the collection costs to be incurred by the board or county in dealing with cash payments, which may include, but are not limited to, the costs of processing and securing the cash payments, but shall not exceed 10 percent of any amounts collected.
(2) The amount of the cash collection fee shall be determined by the state agency and the board or county. agency with respect to an agreement described in paragraph (1) of subdivision (a), or by the board of supervisors of a county with respect to an agreement described in paragraph (2) of subdivision (a). A state agency shall not make reimbursement of the board or county under subdivision (c) contingent upon the imposition of a cash collection fee by the state agency or the amount of revenue derived by the state agency from those fees, fines, penalties, or other charges.
(3) A cash collection fee shall not be imposed pursuant to this subdivision if the fee, fine, penalty, or other charge already includes amounts reasonably necessary to recover the collection costs of cash payments.
(4) Any cash collection fees imposed shall be deposited into the funds or accounts which the fee, fine, penalty, or other charge to be collected is deposited.
(5) This subdivision does not authorize a cash collection fee to be imposed for the collection of a tax, as defined in Section 3 of Article XIII A or as defined in Section 1 of Article XIII C of the California Constitution.
(e) An agreement between the board or a county and a state agency agency, or between the board and a county, shall include all of the following:
(1) A provision that the board or county be reimbursed for the administrative costs of the collection from the funds or accounts which the fees, fines, penalties, taxes, or other charges are otherwise required by law to be deposited, and shall specify whether that reimbursement is continuously appropriated or made upon appropriation by the Legislature, as described in subdivision (c).
(2) A provision that the board or county transmit the collected moneys to the Treasurer to be deposited in the State Treasury to the credit of the funds or accounts which the fees, fines, penalties, taxes, or other charges are otherwise required by law to be deposited.
(3) A provision that describes the administrative costs the board or county will incur in carrying out the collection, which costs shall not exceed 10 percent of the moneys collected.

(4)If the state agency decides to impose a cash collection fee pursuant to subdivision (d), the amount of the cash collection fee and how that amount was determined by the state agency and the board or county.

(4) A provision identifying the specific fees, fines, penalties, taxes, and other charges that will be collected by the board or county under the agreement.
(5) Any other provisions the board or county and state agency determines is necessary to properly implement the collection of the fees, fines, penalties, taxes, or other charges.
(f) Any agreement to collect those fees, fines, penalties, taxes, or other charges shall not impede or otherwise preclude a county from collecting its own lawfully authorized fees, fines, penalties, taxes, or other charges on a cannabis-related business.

31004.
 Any requirement to pay a state agency via electronic funds transfer shall be deemed to have been met when funds are transferred electronically from a county or the board.