Cannabis and cannabis products: certificate: taxation.

Existing law provides for the licensure by the State Board of Equalization of manufacturers, distributors, wholesalers, importers, and retailers of cigarettes or tobacco products that are engaged in business in California, and prohibits retailers, manufacturers, distributors, and wholesalers from distributing or selling those cigarette and tobacco products unless they are licensed. Existing law also imposes a tax on the gross receipts from the sale in this state of, or 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. This bill would create the Sales Tax Enforcement Act of 2010 and provide for the certification by the State Board of Equalization of growers, wholesalers, retailers, and transporters of cannabis or cannabis products that are engaged in business in California. The bill would require these certificated growers, wholesalers, retailers, and transporters to keep records of every sale, transfer, or delivery of cannabis or cannabis products, as specified. The bill would authorize any peace officer and specified employees of the board to conduct inspections, as provided. It would prohibit growers, wholesalers, retailers, and transporters from selling or purchasing cannabis or cannabis products without a certificate. The bill would provide for the seizure of cannabis or cannabis products that are sold or purchased in violation of specified provisions and impose specified penalties therefor, including certificate revocation or suspension, civil penalties, and criminal penalties. By imposing criminal penalties, the bill would create a state-mandated local program. The bill would require each wholesaler to prepay the retail sales tax on its gross receipts derived from the sale of cannabis and cannabis products, as specified. This bill would create the Cannabis and Cannabis Products Compliance Fund, as specified. 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.