Official Summary Text
AB 2420, as amended, Caloza.
Cannabis: donations: seniors.
The
(1) The
Control, Regulate and Tax Adult Use of Marijuana Act (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 authorizes a licensee that is authorized to make retail sales to provide free cannabis or cannabis products to a medicinal cannabis patient or the patient’s primary caregiver if specified requirements are met.
AUMA imposes a cannabis excise tax upon purchasers of cannabis or cannabis products, as specified.
Existing law exempts from the excise tax medicinal cannabis and medicinal cannabis products donated for no consideration to a medicinal cannabis patient, as specified.
This bill would
state the intent of the Legislature to enact legislation that authorizes cannabis retailers to donate cannabis or cannabis products to persons 65 years of age and older and to provide a tax exemption for cannabis or cannabis products that are donated to persons 65 years of age and older.
authorize a licensee that is authorized to make retail sales to provide free cannabis or cannabis products to a person 65 years of age or older or a senior caregiver, as defined, if specified requirements are met.
(2) Existing sales and use tax laws impose use taxes on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state, presumes tangible personal property purchased outside the state that is stored, used, or consumed in this state is purchased for use in this state, and provides various exemptions from those taxes. Existing law, until January 1, 2030, exempts from the use tax the storage, use, or other consumption in this state of medicinal cannabis or medicinal cannabis products that are donated for no consideration, as specified.
This bill, on and after a specified operative date, and until 5 years after that operative date, would exempt from the use tax the storage, use, or other consumption in this state of cannabis or cannabis products that are donated for no consideration to a person 65 years of age
or older, as specified. The bill would require the exemption to apply only if the cannabis retailer certifies in writing, as specified, that the cannabis or cannabis product will be used as specified. The bill would make a licensee that uses the donated cannabis or cannabis product in some other manner, or for some other purpose, liable for the payment of use tax and subject to having their license suspended. By expanding the crime of perjury, the bill would impose a state-mandated local program.
The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax
laws.
Existing law requires the state to reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions.
This bill would provide that, notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse any local agencies for sales and use tax revenues lost by them pursuant to this bill.
(3) AUMA imposes a cannabis excise tax upon purchasers of cannabis or cannabis products, as specified. Existing law requires that these provisions not be construed to impose an excise tax upon medicinal cannabis and medicinal cannabis products donated for no consideration to a medicinal cannabis patient, as specified.
The bill would also require that these provisions not be construed to impose an excise tax upon cannabis or
cannabis products donated for no consideration to a person 65 years of age or older, as specified.
(4) This bill would require the Legislative Analyst’s Office, in order to enable the Legislature to determine whether the use tax exemption provided by the bill are meeting, failing to meet, or exceeding a specified goal and objective, to collect certain data regarding the tax exemptions from specified entities, and to submit a report containing the data to the Legislature and the Governor annually each year that the tax exemptions are in effect.
(5)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.
(6) The Control, Regulate and Tax Adult Use of Marijuana Act, an initiative measure, 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, except as provided.
This bill would declare that its provisions further specified purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.