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Trailer Bill to Implement Proposition 64 Scheduled for May 4 Hearing

April 28, 2017
The Administration trailer bill seeking to implement Proposition 64, the Adult Use of Marijuana Act, will be heard in a joint hearing of three Budget Subcommittees on Thursday, May 4.
 
The three committees are: Senate Budget Subcommittee 2 — Resources, Environmental Protection, Energy and Transportation, Senate Budget Subcommittee 3 — Health and Human Services and Senate Budget Subcommittee 4 — State Administration and General Government.

The trailer bill has yet to be amended and still contains a number of provisions that will frustrate local control and local enforcement efforts in relation to marijuana businesses. 
 
The following provisions from the Medical Cannabis and Regulation Safety Act of 2015, which the League and the California Police Chiefs Association supported and helped shepherd to Gov. Jerry Brown’s desk, do not conflict with Prop. 64, but are not included in the trailer bill:
  • A provision expressly empowering local governments to conduct enforcement of state health & safety and other standards, if they request and are granted that authority from the relevant state agency;
  • A provision expressly empowering local governments to inspect the books of cannabis businesses and conduct audits — vital with any all-cash business; and
  • A provision requiring a business’ ability to operate to be suspended upon revocation of a local permit, subsequent to the issuance of a state license (consistent with Prop. 64 provision providing that state licenses cannot be issued if they are in violation of local ordinances). 
Without these protections cities will be easy targets for litigation if they try to enforce existing law, and will be at the mercy of a state-only enforcement system similar to that currently in place for liquor stores.
 
The trailer bill repeals anti-concentration language from existing law which helps protect economically challenged neighborhoods in our cities from having a disproportionate number of marijuana businesses concentrated in such areas.
 
It also repeals the state medical marijuana ID card program, leaving only a doctor’s recommendation as the sole criteria to qualify for a sales tax exemption for medical marijuana.  This will encourage all consumers to obtain a doctor’s recommendation to avoid paying sales tax, regardless of the reason they are using marijuana. Cities can impose sales tax on recreational marijuana, but not on medical. Going forward, the recreational market can be expected to shrink, therefore cities will take a sales tax hit of over $20 million statewide in the short term, if the ID card program is eliminated.
 
Next Steps
 
Cities are urged to register opposition to the trailer bill with members of the committees. 
 
Senate Budget Subcommittee 2 — Resources, Environmental Protection, Energy and Transportation 
  • Chair Sen. Bob Wieckowski (D-Fremont) (916) 651-4010 Fax: (916) 651-4910
  • Sen. Mike McGuire (D-Healdsburg) (916) 651-4002 Fax: none listed 
  • Sen. Tony Mendoza (D-Artesia) (916) 651-4032 Fax: (916) 651-4932
  • Sen. Jim Nielsen (D-Gerber) (916) 651-4004 Fax: (916) 651-4904 
Senate Budget Subcommittee 3 — Health and Human Services 
  • Chair Sen. Richard Pan (D-Sacramento) (916) 651-4006 Fax: (916) 651-4906
  • Sen. Bill Monning (D-Carmel) (916) 651-4017 Fax: (916) 651-4917
  • Sen. Jeff Stone (R-Temecula) (916) 651-4028 Fax: (916) 651-4928 
Senate Budget Subcommittee 4 — State Administration and General Government 
  • Chair Sen. Richard Roth (D-Riverside) (916) 651-4031  Fax: (916) 651-4931
  • Sen. Steve Glazier (D-Orinda) (916) 651-4007  Fax: (916) 651-4907
  • Sen. Scott Wilk (R-Lancaster) (916) 651-4021  Fax: (916) 651-4921


 
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