Department of Cannabis Control: licensure: fee waivers and deferrals.

Existing law, 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. Existing law, 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 requires the Department of Cannabis Control within the Business, Consumer Services, and Housing Agency to administer the act, except as specified. The California Cannabis Equity Act of 2018 requires the Department of Cannabis Control, on or before January 1, 2021, to develop and implement a program to provide a deferral or waiver for an application fee, a licensing fee, or renewal fee otherwise required by MAUCRSA for a needs-based applicant or needs-based licensee. This bill would instead require the department, on or before January 1, 2022, to develop and implement a program to provide waivers for application fees, licensing fees, and renewal fees required by MAUCRSA. The bill would further require the department, on or before January 1, 2023, to develop and implement a program to provide deferrals for application fees, licensing fees, and renewal fees required by MAUCRSA. The California Cannabis Equity Act of 2018 requires at least 60% of the total dollar amount of deferrals of fees pursuant to the program for a deferral or waivers, as described above, to be allocated for local equity applicants and licensees. The act also requires at least 60% of the total dollar amount of waivers of fees to be allocated to the deferral of fees for local equity applicants and licensees. This bill would delete the term "local," used in the above provisions, and would instead refer to "equity applicants and licensees." The bill would specify that, for purposes of these provisions, the term "equity applicants and licensees" means applicants and licensees that satisfy all of specified criteria. These conditions would include, among others, that applicants and licensees individually or in combination with other persons who qualify as equity applicants or licensees own no less than 50% of the business that is in the process of being licensed or is licensed. MAUCRSA, until June 30, 2023, authorizes the Department of Cannabis Control, in its sole discretion, to issue a provisional license for a local equity license application that includes cultivation activities, provided that the applicant meets specified requirements. These requirements include, among others, that the local equity applicant is not a cultivation license applicant for a premises that exceeds one acre of total canopy for outdoor cultivation or 22,000 square feet for mixed-light or indoor cultivation. The bill, in the above-described provisions on issuing a provisional license for a local equity license application, would delete the reference to that application including "cultivation activities." This bill would appropriate $10,000 from the General Fund to the Department of Cannabis Control for purposes of implementing the provisions of the bill. AUMA authorizes the Legislature to amend its provisions with a 23 vote of both houses to further its purposes and intent. This bill would state that the bill furthers 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.