Compare Versions


Bill PDF |Add To My Favorites | print page

AB-1420 Cannabis: licensing fees.(2019-2020)



Current Version: 06/20/19 - Amended Senate

Compare Versions information image


AB1420:v97#DOCUMENT

Amended  IN  Senate  June 20, 2019
Amended  IN  Senate  June 06, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1420


Introduced by Assembly Member Obernolte

February 22, 2019


An act to amend Section 26180 of the Business and Professions Code, relating to cannabis.


LEGISLATIVE COUNSEL'S DIGEST


AB 1420, as amended, Obernolte. Cannabis: licensing fees.
The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities. MAUCRSA generally divides responsibility for the state licensure and regulation of commercial cannabis activity among the Department of Consumer Affairs, the Department of Food and Agriculture, and the State Department of Public Health. MAUCRSA requires those licensing authorities to establish a scale of application, licensing, and renewal fees based upon the cost of enforcing MAUCRSA and upon the size of the business of the licensee or applicant, as specified.
Under existing administrative law, the licensing authorities have adopted regulations setting application fees and annual license fees that vary depending on license category as well as the size of the business for certain annual license fees.
This bill would remove the requirement that the licensing authorities charge a renewal fee, and would prohibit licensing authorities from setting application and license fees that exceed certain specified amounts that are consistent with regulations adopted as of January 1, May 17, 2019.
AUMA authorizes the Legislature to amend the act to further the purposes and intent of the act with a 2/3 vote of the membership of both houses of the Legislature.
This bill would declare that its provisions further specified purposes and intent of AUMA.
Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 26180 of the Business and Professions Code is amended to read:

26180.
 Each licensing authority shall establish a scale of application, licensing, and renewal application and licensing fees, based upon the cost of enforcing this division, as follows:
(a) Each licensing authority shall charge each licensee a licensure and renewal fee, as applicable. The licensure and renewal fee shall be calculated to cover the costs of administering this division. division, but shall not exceed the amounts specified in subdivisions (e) and (f). The licensure fee may vary depending upon the varying costs associated with administering the various regulatory requirements of this division as they relate to the nature and scope of the different licensure activities, including, but not limited to, the track and trace program required pursuant to Section 26067, but shall not exceed the reasonable regulatory costs to the licensing authority.
(b) The total fees assessed pursuant to this division shall be set at an amount that will fairly and proportionately generate sufficient total revenue to fully cover the total costs of administering this division.
(c) All application, license, and renewal application and license fees shall be set on a scaled basis by the licensing authority, dependent on the size of the business, not to exceed the amounts specified in subdivisions (e) and (f).
(d) The licensing authority shall deposit all fees collected in a fee account specific to that licensing authority, to be established in the Cannabis Control Fund. Moneys in the licensing authority fee accounts shall be used, upon appropriation by the Legislature, by the designated licensing authority for the administration of this division.
(e) A licensing authority shall charge an application fee in an amount that does not exceed the following:
(1) For a Specialty Cottage Outdoor license, as described in Section 8201(a)(1) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, one hundred thirty-five dollars ($135).
(2) For a Specialty Cottage Indoor license, as described in Section 8201(a)(2) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, two hundred five dollars ($205).
(3) For a Specialty Cottage Mixed-Light Tier 1 license, as described in Section 8201(a)(3) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, three hundred forty dollars ($340).
(4) For a Specialty Cottage Mixed-Light Tier 2 license, as described in Section 8201(a)(3) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, five hundred eighty dollars ($580).
(5) For a Specialty Outdoor license, as described in Section 8201(b)(1) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, two hundred seventy dollars ($270).
(6) For a Specialty Indoor license, as described in Section 8201(b)(2) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, two thousand one hundred seventy dollars ($2,170).
(7) For a Specialty Mixed-Light Tier 1 license, as described in Section 8201(b)(3) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, six hundred fifty-five dollars ($655).
(8) For a Specialty Mixed-Light Tier 2 license, as described in Section 8201(b)(3) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, one thousand one hundred twenty-five dollars ($1,125).
(9) For a Small Outdoor license, as described in Section 8201(c)(1) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, five hundred thirty-five dollars ($535).
(10) For a Small Indoor license, as described in Section 8201(c)(2) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, three thousand nine hundred thirty-five dollars ($3,935).
(11) For a Small Mixed-Light Tier 1 license, as described in Section 8201(c)(3) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, one thousand three hundred ten dollars ($1,310).
(12) For a Small Mixed-Light Tier 2 license, as described in Section 8201(c)(3) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, two thousand two hundred fifty dollars ($2,250).
(13) For a Medium Outdoor license, as described in Section 8201(d)(1) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, one thousand five hundred fifty-five dollars ($1,555).
(14) For a Medium Indoor license, as described in Section 8201(d)(2) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, eight thousand six hundred fifty-five dollars ($8,655).
(15) For a Medium Mixed-Light Tier 1 license, as described in Section 8201(d)(3) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, two thousand eight hundred eighty-five dollars ($2,885).
(16) For a Medium Mixed-Light Tier 2 license, as described in Section 8201(d)(3) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, four thousand nine hundred forty-five dollars ($4,945).
(17) For a Nursery license, as described in Section 8201(e) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, five hundred twenty dollars ($520).
(18) For a Processor license, as described in Section 8201(f) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, one thousand forty dollars ($1,040).
(19) For a Type 6-Manufacturer 1 license, a Type 7-Manufacturer 2 license, a Type N Manufacturer license, as described in Section 40118 of Title 17 of the California Code of Regulations, as that section read on May 17, 2019, or a Type P license, as described in Section 40118(d) of Title 17 of the California Code of Regulations, as that section read on May 17, 2019, one thousand dollars ($1,000).
(20) For a Type S license, as described in Section 40118(e) of Title 17 of the California Code of Regulations, as that section read on May 17, 2019, five hundred dollars ($500).
(21) For an annual license issued by the bureau, including a Type 8-Testing laboratory license, a Type 9-Non-storefront Retailer license, as described in Section 5414 of Title 16 of the California Code of Regulations, as that section read on May 17, 2019, a Type 10 Retailer license, a Type 11-Distributor license, a Type 13-Distributor Transport Only license, as described in Section 5315 of Title 16 of the California Code of Regulations, as that section read on May 17, 2019, and or a Type 12-Microbusiness license, one thousand dollars ($1,000).
(22) For a cannabis event organizer license, as described in Section 5600 of Title 16 of the California Code of Regulations, as that section read on May 17, 2019, one thousand dollars ($1,000).
(23) For a temporary cannabis event license, as described in Section 5601 of Title 16 of the California Code of Regulations, as that section read on May 17, 2019, one thousand dollars ($1,000).
(24) For a physical modification of premises, as described in Section 5027 of Title 16 of the California Code of Regulations, as that section read on May 17, 2019, five hundred dollars ($500).
(f) A licensing authority shall charge an annual license fee in an amount not to exceed the following:
(1) For a Specialty Cottage Outdoor license, as described in Section 8201(a)(1) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, one thousand two hundred five dollars ($1,205).
(2) For a Specialty Cottage Indoor license, as described in Section 8201(a)(2) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, one thousand eight hundred thirty dollars ($1,830).
(3) For a Specialty Cottage Mixed-Light Tier 1 license, as described in Section 8201(a)(3) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, three thousand thirty-five dollars ($3,035).
(4) For a Specialty Cottage Mixed-Light Tier 2 license, as described in Section 8201(a)(3) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, five thousand two hundred dollars ($5,200).
(5) For a Specialty Outdoor license, as described in Section 8201(b)(1) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, two thousand four hundred ten dollars ($2,410).
(6) For a Specialty Indoor license, as described in Section 8201(b)(2) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, nineteen thousand five hundred forty dollars ($19,540).
(7) For a Specialty Mixed-Light Tier 1 license, as described in Section 8201(b)(3) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, five thousand nine hundred dollars ($5,900).
(8) For a Specialty Mixed-Light Tier 2 license, as described in Section 8201(b)(3) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, ten thousand one hundred twenty dollars ($10,120).
(9) For a Small Outdoor license, as described in Section 8201(c)(1) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, four thousand eight hundred twenty dollars ($4,820).
(10) For a Small Indoor license, as described in Section 8201(c)(2) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, thirty-five thousand four hundred ten dollars ($35,410).
(11) For a Small Mixed-Light Tier 1 license, as described in Section 8201(c)(3) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, eleven thousand eight hundred dollars ($11,800).
(12) For a Small Mixed-Light Tier 2 license, as described in Section 8201(c)(3) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, twenty thousand two hundred thirty-fifty dollars ($20,235).
(13) For a Medium Outdoor license, as described in Section 8201(d)(1) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, thirteen thousand nine hundred ninety dollars ($13,990).
(14) For a Medium Indoor license, as described in Section 8201(d)(2) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, seventy-seven thousand nine hundred five dollars ($77,905).
(15) For a Medium Mixed-Light Tier 1 license, as described in Section 8201(d)(3) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, twenty-five thousand nine hundred seventy dollars ($25,970).
(16) For a Medium Mixed-Light Tier 2 license, as described in Section 8201(d)(3) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, forty-four thousand five hundred seventeen dollars ($44,517).
(17) For a Nursery license, as described in Section 8201(e) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, four thousand six hundred eighty-five dollars ($4,685).
(18) For a Processor license, as described in Section 8201(f) of Title 3 of the California Code of Regulations, as that section read on May 17, 2019, nine thousand three hundred seventy dollars ($9,370).
(19) For a Type 6-Manufacturer 1 license, a Type 7-Manufacturer 2 license, a Type N Manufacturer license, as described in Section 40118 of Title 17 of the California Code of Regulations, as that section read on May 17, 2019, a Type P license, as described in Section 40118(d) of Title 17 of the California Code of Regulations, as that section read on May 17, 2019, or a Type S license, as described in Section 40118(e) of Title 17 of the California Code of Regulations, as that section read on May 17, 2019, the following amount that is determined by the expected gross revenue of the business for the 12-month license period:
(A) For a licensed premises with expected gross annual revenue of one hundred thousand dollars ($100,000) or less, two thousand dollars ($2,000).
(B) For a licensed premises with expected gross annual revenue over one hundred thousand dollars ($100,000) and up to five hundred thousand dollars ($500,000), seven thousand five hundred dollars ($7,500).
(C) For a licensed premises with expected gross annual revenue over five hundred thousand dollars ($500,000) and up to one million five hundred thousand dollars ($1,500,000), fifteen thousand dollars ($15,000).
(D) For a licensed premises with expected gross annual revenue over one million five hundred thousand dollars ($1,500,000) and up to three million dollars ($3,000,000), twenty-five thousand dollars ($25,000).
(E) For a licensed premises with expected gross annual revenue over three million dollars ($3,000,000) and up to five million dollars ($5,000,000), thirty-five thousand dollars ($35,000).
(F) For a licensed premises with expected gross annual revenue over five million dollars ($5,000,000) and up to ten million dollars ($10,000,000), fifty thousand dollars ($50,000).
(G) For a licensed premises with expected gross annual revenue over ten million dollars ($10,000,000), seventy-five thousand dollars ($75,000).
(20) For a Type 8-Testing laboratory license the following amount that is determined by the gross revenue of the business for the 12-month license period:
(A) For a licensed premises with expected gross annual revenue of one hundred sixty thousand dollars ($160,000) or less, three thousand dollars ($3,000).
(B) For a licensed premises with expected gross annual revenue over one hundred sixty thousand dollars ($160,000) and up to three hundred twenty thousand dollars ($320,000), six thousand dollars ($6,000).
(C) For a licensed premises with expected gross annual revenue over three hundred twenty thousand dollars ($320,000) and up to four hundred eighty thousand dollars ($480,000), eight thousand dollars ($8,000).
(D) For a licensed premises with expected gross annual revenue over four hundred eighty thousand dollars ($480,000) and up to eight hundred thousand dollars ($800,000), thirteen thousand dollars ($13,000).
(E) For a licensed premises with expected gross annual revenue over eight hundred thousand dollars ($800,000) and up to one million two hundred thousand dollars ($1,200,000), twenty thousand dollars ($20,000).
(F) For a licensed premises with expected gross annual revenue over one million two hundred thousand dollars ($1,200,000) and up to two million dollars ($2,000,000), thirty-two thousand dollars ($32,000).
(G) For a licensed premises with expected gross annual revenue over two million dollars ($2,000,000) and up to two million eight hundred thousand dollars ($2,800,000), forty-eight thousand dollars ($48,000).
(H) For a licensed premises with expected gross annual revenue over two million eight hundred thousand dollars ($2,800,000) and up to four million four hundred thousand dollars ($4,400,000), seventy-two thousand dollars ($72,000).
(I) For a licensed premises with expected gross annual revenue over four million four hundred thousand dollars ($4,400,000), one hundred twelve thousand dollars ($112,000).
(21) For a Type 9-Non-storefront Retailer license, as described in Section 5414 of Title 16 of the California Code of Regulations, as that section read on May 17, 2019, or a Type 10 Retailer license, the following amount that is determined by the gross revenue of the business for the 12-month license period:
(A) For a licensed premises with expected gross annual revenue of five hundred thousand dollars ($500,000) or less, two thousand five hundred dollars ($2,500).
(B) For a licensed premises with expected gross annual revenue over five hundred thousand dollars ($500,000) and up to seven hundred fifty thousand dollars ($750,000), five thousand five hundred dollars ($5,500).
(C) For a licensed premises with expected gross annual revenue over seven hundred fifty thousand dollars ($750,000) and up to one million dollars ($1,000,000), seven thousand five hundred dollars ($7,500).
(D) For a licensed premises with expected gross annual revenue over one million dollars ($1,000,000) and up to one million five hundred thousand dollars ($1,500,000), eleven thousand dollars ($11,000).
(E) For a licensed premises with expected gross annual revenue over one million five hundred thousand dollars ($1,500,000) and up to two million dollars ($2,000,000), fourteen thousand five hundred dollars ($14,500).
(F) For a licensed premises with expected gross annual revenue over two million dollars ($2,000,000) and up to three million dollars ($3,000,000), twenty-two thousand five hundred dollars ($22,500).
(G) For a licensed premises with expected gross annual revenue over three million dollars ($3,000,000) and up to four million dollars ($4,000,000), thirty thousand five hundred dollars ($30,500).
(H) For a licensed premises with expected gross annual revenue over four million dollars ($4,000,000) and up to five million dollars ($5,000,000), thirty-eight thousand five hundred dollars ($38,500).
(I) For a licensed premises with expected gross annual revenue over five million dollars ($5,000,000) and up to six million dollars ($6,000,000), forty-six thousand five hundred dollars ($46,500).
(J) For a licensed premises with expected gross annual revenue over six million dollars ($6,000,000) and up to seven million five hundred thousand dollars ($7,500,000), fifty-seven thousand dollars ($57,000).
(K) For a licensed premises with expected gross annual revenue over seven million five hundred thousand dollars ($7,500,000), ninety-six thousand dollars ($96,000).
(22) For a Type 11-Distributor license or a Type 13-Distributor Transport Only license that transports cannabis goods cultivated or manufactured by other licensees, as described in Section 5315 of Title 16 of the California Code of Regulations, as that section read on May 17, 2019, the following amount that is determined by the gross revenue of the business for the 12-month license period:
(A) For a licensed premises with expected gross annual revenue of one million dollars ($1,000,000) or less, one thousand five hundred dollars ($1,500).
(B) For a licensed premises with expected gross annual revenue over one million dollars ($1,000,000) and up to two million five hundred thousand dollars ($2,500,000), six thousand dollars ($6,000).
(C) For a licensed premises with expected gross annual revenue over two million five hundred thousand dollars ($2,500,000) and up to five million dollars ($5,000,000), eleven thousand two hundred fifty dollars ($11,250).
(D) For a licensed premises with expected gross annual revenue over five million dollars ($5,000,000) and up to ten million dollars ($10,000,000), twenty-two thousand five hundred dollars ($22,500).
(E) For a licensed premises with expected gross annual revenue over ten million dollars ($10,000,000) and up to twenty million dollars ($20,000,000), forty-five thousand dollars ($45,000).
(F) For a licensed premises with expected gross annual revenue over twenty million dollars ($20,000,000) and up to thirty million dollars ($30,000,000), seventy-five thousand dollars ($75,000).
(G) For a licensed premises with expected gross annual revenue over thirty million dollars ($30,000,000) and up to fifty million dollars ($50,000,000), one hundred twenty thousand dollars ($120,000).
(H) For a licensed premises with expected gross annual revenue over fifty million dollars ($50,000,000) and up to seventy million dollars ($70,000,000), one hundred eighty thousand dollars ($180,000).
(I) For a licensed premises with expected gross annual revenue over seventy million dollars ($70,000,000), two hundred forty thousand dollars ($240,000).
(23) For a Type 13-Distributor Transport Only Self-Distribution license that transports only cannabis goods that the licensee has cultivated or manufactured, as described in Section 5315 of Title 16 of the California Code of Regulations, as that section read on May 17, 2019, the following amount that is determined by the gross revenue of the business for the 12-month license period:
(A) For a licensed premises with expected gross annual revenue of one thousand dollars ($1,000) or less, two hundred dollars ($200).
(B) For a licensed premises with expected gross annual revenue over one thousand dollars ($1,000) and up to three thousand dollars ($3,000), five hundred dollars ($500).
(C) For a licensed premises with expected gross annual revenue over three thousand dollars ($3,000), one thousand dollars ($1,000).
(24) For a Type 12-Microbusiness license, the following amount that is determined by the gross revenue of the business for the 12-month license period:
(A) For a licensed premises with expected gross annual revenue of one million dollars ($1,000,000) or less, five thousand dollars ($5,000).
(B) For a licensed premises with expected gross annual revenue over one million dollars ($1,000,000) and up to two million dollars ($2,000,000), twelve thousand dollars ($12,000).
(C) For a licensed premises with expected gross annual revenue over two million dollars ($2,000,000) and up to three million dollars ($3,000,000), twenty thousand dollars ($20,000).
(D) For a licensed premises with expected gross annual revenue over three million dollars ($3,000,000) and up to four million dollars ($4,000,000), thirty-two thousand dollars ($32,000).
(E) For a licensed premises with expected gross annual revenue over four million dollars ($4,000,000) and up to six million dollars ($6,000,000), forty-five thousand dollars ($45,000).
(F) For a licensed premises with expected gross annual revenue over six million dollars ($6,000,000) and up to seven million dollars ($7,000,000), sixty thousand dollars ($60,000).
(G) For a licensed premises with expected gross annual revenue over seven million dollars ($7,000,000) and up to ten million dollars ($10,000,000), eighty thousand dollars ($80,000).
(H) For a licensed premises with expected gross annual revenue over ten million dollars ($10,000,000) and up to twenty million dollars ($20,000,000), one hundred thousand dollars ($100,000).
(I) For a licensed premises with expected gross annual revenue over twenty million dollars ($20,000,000) and up to thirty million dollars ($30,000,000), one hundred twenty thousand dollars ($120,000).
(J) For a licensed premises with expected gross annual revenue over thirty million dollars ($30,000,000) and up to forty million dollars ($40,000,000), one hundred forty thousand dollars ($140,000).
(K) For a licensed premises with expected gross annual revenue over forty million dollars ($40,000,000) and up to fifty million dollars ($50,000,000), one hundred sixty thousand dollars ($160,000).
(L) For a licensed premises with expected gross annual revenue over fifty million dollars ($50,000,000) and up to sixty million dollars ($60,000,000), one hundred eighty thousand dollars ($180,000).
(M) For a licensed premises with expected gross annual revenue over sixty million dollars ($60,000,000) and up to eighty million dollars ($80,000,000), two hundred twenty thousand dollars ($220,000).
(N) For a licensed premises with expected gross annual revenue over eighty million dollars ($80,000,000), three hundred thousand dollars ($300,000).
(25) For a cannabis event organizer license, as described in Section 5600 of Title 16 of the California Code of Regulations, as that section read on May 17, 2019, the following amount that is determined by the planned number of operations for the 12-month license period:
(A) For five or fewer planned events, three thousand dollars ($3,000).
(B) For 6 to 10 planned events, five thousand dollars ($5,000).
(C) For 11 to 20 planned events, nine thousand dollars ($9,000).
(D) For 21 or more planned events, twenty thousand dollars ($20,000).

SEC. 2.

 The Legislature finds and declares that Section 1 of this act, amending Section 26180 of the Business and Professions Code, furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act of 2016.