Bill Text: CA AB1548 | 2015-2016 | Regular Session | Introduced
Bill Title: Medical marijuana: taxation: marijuana production and environment mitigation.
Spectrum: Bipartisan Bill
Status: (Failed) 2016-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1548 Detail]
Download: California-2015-AB1548-Introduced.html
BILL NUMBER: AB 1548 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Wood
(Coauthor: Senator Runner)
SEPTEMBER 11, 2015
An act to add Part 13.5 (commencing with Section 31001) to
Division 2 of the Revenue and Taxation Code, relating to medical
marijuana, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1548, as introduced, Wood. Medical marijuana: taxation:
marijuana production and environment mitigation.
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, authorizes the use and cultivation
of marijuana for medical purposes. Existing law makes it a crime to
plant, cultivate, harvest, dry, or process marijuana, except as
otherwise authorized by law. Under existing law, qualified patients,
persons with valid identification cards, and the designated primary
caregivers of qualified patients and persons with identification
cards, who associate in order collectively and cooperatively to
cultivate marijuana for medical purposes, are not subject to criminal
sanctions solely on the basis of that fact.
The Fee Collection Procedures Law, among other things, provides
for the administration of fee programs by the State Board of
Equalization, establishes procedures for collection, reporting,
return, refund, and appeals, and authorizes the board to adopt
regulations relating to administration and enforcement of the law.
The Fee Collection Procedures Law establishes criminal penalties for
specified acts, including making it a misdemeanor to knowingly or
willfully file a false return and making it a felony to willfully
evade or attempt to evade or defeat the payment of a fee.
This bill would impose a tax in specified amounts on the
distribution in this state by a cultivator, as defined, of marijuana
flowers, marijuana leaves, and immature marijuana plants to a
licensed distributor, as specified, and would require the licensed
distributor to collect the tax from the cultivator and remit it to
the board. The bill would require the board to collect the tax
pursuant to the procedures set forth in the Fee Collection Procedures
Law. The bill would require all moneys, less refunds and costs of
administration, to be deposited into the Marijuana Production and
Environment Mitigation Fund, which this bill would establish in the
State Treasury, and would continuously appropriate the moneys in that
fund to the board for allocation, as specified.
By expanding the application of the Fee Collection Procedures Law,
which imposes criminal penalties for various acts, this bill would
impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
This bill would include a change in state statute that would
result in a taxpayer paying a higher tax within the meaning of
Section 3 of Article XIII A of the California Constitution, and thus
would require for passage the approval of 2/3 of the membership of
each house of the Legislature.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Part 13.5 (commencing with Section 31001) is added to
Division 2 of the Revenue and Taxation Code, to read:
PART 13.5. Medical Marijuana Tax Law
CHAPTER 1. GENERAL PROVISIONS AND DEFINITIONS
31001. This part shall be known and may be cited as the Medical
Marijuana Tax Law.
31002. As used in this part, the following terms have the
following definitions:
(a) "Cultivator" means a person that is licensed as a cultivator
for purposes of medical marijuana regulation under the Business and
Professions Code.
(b) "Distribution" has the same meaning as that term is defined
for purposes of medical marijuana regulation in the Business and
Professions Code.
(c) "Licensed distributor" means a person that is licensed as a
distributor for purposes of medical marijuana regulation under the
Business and Professions Code.
(d) "Sale" means the transfer of title or possession for
consideration in any manner or by any means whatever.
(e) "Qualified nonprofit organization" means an organization
exempt from tax as an organization described in Section 501(c)(3) of
the Internal Revenue Code .
CHAPTER 2. IMPOSITION OF TAX
31005. (a) On and after the operative date set forth in Section
31030, for the privilege of distributing marijuana flowers, marijuana
leaves, and immature marijuana plants, a tax is hereby imposed upon
all cultivators at a rate of $9.25 per ounce of marijuana flowers,
$2.75 per ounce of marijuana leaves, and $1.25 per immature marijuana
plant from the sale of all marijuana flowers, marijuana leaves, and
immature marijuana plants distributed to a licensed distributor in
this state.
(b) The licensed distributor shall collect the tax from the
cultivator and shall separately state the amount of the tax imposed
under this part on the purchase order, which shall be given by the
licensed distributor to the cultivator at the time of sale.
(c) There are exempted from the taxes imposed by this part, sales
by a cultivator that the state is prohibited from taxing under the
Constitution or laws of the United States or the Constitution of this
state. Any claim for exemption from the tax imposed by this part
shall be made to the board in the manner prescribed by the board.
31006. The Legislative Analyst's Office shall regularly review
the tax levels established under this part, at a minimum of every
other year, beginning in 2018, and make recommendations to the
Legislature, as appropriate, regarding adjustments that would further
the goal of addressing public safety and the environmental impacts
caused by the proliferation of marijuana cultivation.
CHAPTER 3. ADMINISTRATION
31010. (a) The board shall administer and collect the tax imposed
by this part pursuant to the Fee Collection Procedures Law (Part 30
(commencing with Section 55001) of Division 2 of the Revenue and
Taxation Code) with those changes as may be necessary to conform to
this section. For purposes of this part, the references in the Fee
Collection Procedures Law to "fee" shall include the tax imposed by
this part, and references to "feepayer" shall include a person
required to pay the tax imposed by this part.
(b) The tax that is required to be collected by the licensed
distributor, and any amount unreturned to the medical marijuana
cultivator that is not owed as part of the tax, but was collected
from the cultivator under the representation by the licensed
distributor that it was owed as a tax, constitutes debts owed by the
licensed distributor to the state.
(c) A cultivator is liable for the tax until it has been paid to
the state, except that payment to the licensed distributor relieves
the cultivator from further liability for the tax. Any tax collected
from a cultivator that has not been remitted to the board shall be a
debt owed to the state by the licensed distributor required to
collect and remit the tax. This part does not impose any obligation
upon the licensed distributor to take any legal action to enforce the
collection of the tax imposed by this part.
31011. (a) The board may prescribe, adopt, and enforce
regulations relating to the implementation, administration, and
enforcement of this part, including, but not limited to, applicant
requirements, collections, reporting, refunds, and appeals.
(b) The board may prescribe, adopt, and enforce any emergency
regulations as necessary to implement this part. Any emergency
regulation prescribed, adopted, or enforced pursuant to this section
shall be adopted in accordance with Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code, and, for purposes of that chapter, including Section 11349.6 of
the Government Code, the adoption of the regulation is an emergency
and shall be considered by the Office of Administrative Law as
necessary for the immediate preservation of the public peace, health
and safety, and general welfare.
31012. (a) The tax is due and payable to the board quarterly on
or before the last day of the month following each calendar quarter.
(b) On or before the last day of the month following each calendar
quarter, a return for the preceding calendar quarter shall be filed
with the board.
(c) Returns shall be authenticated in a form or pursuant to
methods as may be prescribed by the board.
31013. (a) The Marijuana Production and Environment Mitigation
Fund is hereby created in the State Treasury. All taxes, interest,
penalties, and other amounts collected and paid to the board pursuant
to this part, less payments of refunds and costs of administration,
shall be deposited in the fund.
(b) Notwithstanding Section 13340 of the Government Code, all
moneys deposited in the Marijuana Production and Environment
Mitigation Fund are hereby continuously appropriated, without regard
to fiscal years, in the following manner:
(1) Thirty-five percent to the Department of Food and Agriculture
for disbursement for local law enforcement-related activities
pertaining to illegal marijuana cultivation. Funds allocated pursuant
to this paragraph shall be allocated on a competitive grant
application process administered by the Department of Food and
Agriculture. The Department of Food and Agriculture shall promulgate
guidelines for the grant process as soon as administratively
possible, but no later than April 1, 2017.
(2) Thirty-five percent to the Natural Resources Agency to fund a
competitive grant program for environmental cleanup restoration, and
protection of public and private lands that have been damaged by
illegal marijuana cultivation. Where appropriate, the agency may
administer funds using programs established pursuant to Section 5750
of the Public Resources Code, subdivision (a) and paragraph (1) of
subdivision (l) of Section 75050 of the Public Resources Code. Funds
allocated pursuant to this paragraph shall be prioritized to
restoration and cleanup projects, on public or private lands, based
on the level of damages that have occurred. Not less than 35 percent
of the funds shall be used for these purposes related to public
lands, and not less than 20 percent of the funds shall be used for
these purposes related to private lands. The agency shall consult and
partner with counties, cities, or cities and counties, and may
partner with qualified nonprofit organizations, other appropriate
state agencies, and the appropriate federal entities, including, but
not limited to, the United States Department of Agriculture and the
United States Department of the Interior, for the purposes of
awarding grants to state or local government entities and qualified
nonprofit organizations that engage in environmental cleanup and
restoration. The agency shall promulgate guidelines for the grant
process as soon as administratively possible, but no later than April
1, 2017.
(3) Thirty percent to the multiagency task force, the Department
of Fish and Wildlife and State Water Resources Control Board pilot
project, to address the environmental impacts of marijuana
cultivation on public and private lands in California and other state
enforcement-related activities from illegal marijuana cultivation.
CHAPTER 4. REPORT TO THE LEGISLATURE
31020. (a) The board shall submit a report to the Legislature on
the total amount of revenue that was collected for the two-year
period commencing on the operative date of this part. The report is
due to the Legislature on or before the last day of the month
commencing 180 days after the two-year period commencing on the
operative date of this part.
(b) The report required by this section shall be submitted in
compliance with Section 9795 of the Government Code.
CHAPTER 5. OPERATIVE DATE AND FUNDING
31030. This part shall become operative on or after the first day
of the first calendar quarter commencing more than 270 days after
adequate funding has been received by the board to implement and
administer this part. The board shall post a notice on its Internet
Web site when this condition has been satisfied.
31031. Funds for the establishment and support of the activities
required pursuant to this part shall be advanced as a General Fund or
special fund loan, and shall be repaid by the board from the initial
proceeds from taxes collected pursuant to this part, no later than
six months after the operative date specified in Section 31030.
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
