California Cannabis Tax Fund: Department of Cannabis Control: Board of State and Community Corrections grants.

Plain English Breakdown

The official source material does not provide specific details on how much money will be disbursed or which local governments might apply for grants, leaving these points uncertain.

California Cannabis Tax Fund: Department of Cannabis Control: Board of State and Community Corrections grants

This law changes how money from the California Cannabis Tax Fund is used, allowing grants to local governments that ban cannabis cultivation or retail sales under certain conditions.

What This Bill Does

• Requires the Controller to give money from the California Cannabis Tax Fund to the Department of Cannabis Control for costs related to tracking and tracing cannabis activity and enforcing laws against unauthorized commercial cannabis activities.
• Allows the Board of State and Community Corrections to give grants to local governments that ban both indoor and outdoor commercial cannabis cultivation or retail sale of cannabis, as long as these places allow some form of legal cannabis sales.
• Requires local governments applying for grants to prioritize enforcement against illegal cannabis activity.
• Gives the Board of State and Community Corrections more ways to award grants, including competitive awards and formula-based funding.

Who It Names or Affects

• The Department of Cannabis Control
• Local governments in California
• The Board of State and Community Corrections

Terms To Know

California Cannabis Tax Fund

A fund that collects money from taxes, penalties, and other fees related to commercial cannabis activities.

Track and Trace Program

A system used by the Department of Cannabis Control to monitor and record information about cannabis products as they move through the supply chain.

Limits and Unknowns

• The bill does not specify how much money will be given from the California Cannabis Tax Fund.
• It is unclear which local governments will apply for grants or what specific programs they might fund with these grants.
• The exact impact on illegal cannabis activity enforcement is uncertain.

Official Summary Text

SB 141, Committee on Budget and Fiscal Review.
California Cannabis Tax Fund: Department of Cannabis Control: Board of State and Community Corrections grants.
Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure, 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.
Existing law establishes the California Cannabis Tax Fund as a continuously appropriated fund consisting of specified taxes, interest, penalties, and other amounts related to commercial cannabis activity. Each fiscal year, AUMA requires the Controller to make specified disbursements from the fund,
including, through the 2022–23 fiscal year, reasonable costs incurred by the Department of Cannabis Control for implementing, administering, and enforcing MAUCRSA.
This bill would require the Controller to make a disbursement from the fund for reasonable costs incurred by the Department of Cannabis Control for maintaining and operating the track and trace program and for conducting civil or criminal enforcement against unauthorized commercial cannabis activity, as specified. By requiring moneys in the California Cannabis Tax Fund, a continuously appropriated fund, to be used for a new purpose, the bill would make an appropriation.
AUMA also requires the Controller to make a disbursement from the fund to the Board of State and Community Corrections for making grants to local governments to assist with law enforcement, fire protection, or other local programs addressing public health and safety associated with the
implementation of AUMA. AUMA prohibits the board from making grants to local governments that ban both indoor and outdoor commercial cannabis cultivation, or ban retail sale of cannabis or cannabis products.
This bill would repeal that prohibition, thereby authorizing the Board of State and Community Corrections to make grants to local governments that ban both indoor and outdoor commercial cannabis cultivation or ban retail sale of cannabis or cannabis products. In order to be eligible for a grant, the bill would require a local government either to allow the retail sale of cannabis in storefronts or, for jurisdictions with a population of 10,000 residents or less, to allow cannabis delivery, as specified. The bill would require the board to prioritize grant awards for local governments whose grant application includes illicit cannabis enforcement, and would authorize the board to award grants both competitively and based on a formula to provide consistent and
ongoing funding for local governments, as provided.
AUMA authorizes the Legislature to amend its provisions with a
2
/
3
vote of both houses to further its purposes and intent, except as specified.
This bill would declare that its provisions further the purposes and intent of AUMA.
This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Current Bill Text

Download Bill PDF