Cannabis: tribal-state agreements.

All amendments to existing Sections 26300, 26301, 26303, and 26304 of the Business and Professions Code were removed. The previous version would have modified definitions (adding 'Indian tribe' and 'contracting state'), agreement authorization criteria, regulatory requirements, and enforcement provisions in existing law. These changes are no longer part of the bill.

The bill's operative description changed from 'amend Sections 26300, 26301, 26303, and 26304 add Chapter 27' to simply 'add Chapter 27,' confirming the bill now functions as a standalone addition rather than a combined amendment-and-addition measure.

In new Section 26357(a)(4), the Attorney General opinion requirement now references 'foreign tribal licensees' instead of the broader term 'foreign licensees,' narrowing the scope of the legal risk assessment to specifically tribal-licensed entities rather than any foreign licensee.

New Chapter 27 (Sections 26350-26357) is added to Division 10 of the Business and Professions Code, creating a standalone statutory framework specifically for tribal cannabis agreements, separate from the existing interstate agreement provisions in Sections 26300-26304.

The Assembly version's amendment to Section 26053 is entirely removed. That provision would have allowed a state licensee to engage in commercial cannabis activity with a tribal licensee if the Department of Cannabis Control certified that the tribe's requirements met or exceeded state standards. The Senate version replaces this department-certification mechanism with a Governor-negotiated agreement framework.

Section 26351(a) authorizes the Governor or their designee to enter into tribal agreements, adding the 'or their designee' language not present in the Assembly version's treatment of tribal agreements under Section 26053.

Section 26352(b) provides that a tribal licensee shall not engage in commercial cannabis activity outside of Indian country (as defined in 18 U.S.C. Section 1151) without a license, permit, or other authorization issued by the local jurisdiction.

Section 26357 adds four federal preconditions under which an agreement may take effect: (1) federal law is amended to allow interstate transfer, (2) federal law specifically prohibits expenditure of federal funds to prevent such transfer, (3) DOJ issues an opinion or memorandum allowing or tolerating the transfer, or (4) the Attorney General issues a written opinion that state law authorization will not result in significant legal risk under the federal Controlled Substances Act. The department must notify the Governor and legislative policy committees upon occurrence of any qualifying event.

Section 26352(c) provides that if a tribal licensee engages in commercial cannabis activity outside of Indian country, the tribal licensee is subject to California state jurisdiction for violations of California commercial cannabis laws and regulations.

Section 26356 exempts the Governor from Administrative Procedure Act rulemaking procedures when entering into tribal agreements, but requires submission to the Joint Legislative Budget Committee for a 60-day review period (with written recommendations requiring majority agreement) and posting on the department's website for 30 days of public comment.

Section 26355 requires that any tribal agreement provide for collection of all applicable taxes.

Section 26351(c) clarifies that the new chapter does not prohibit a tribe from obtaining a state license, preserving tribes' ability to participate in the existing state licensing system.

The bill now amends Sections 26300, 26301, 26303, and 26304 in addition to Section 26053, expanding from a single-section tribal licensure fix into a full chapter on tribal-state and interstate cannabis agreements.

New Section 26301 authorizes the Governor to enter into agreements with another state or states OR an Indian tribe, broadening the original bill which only addressed tribal licensees. The agreement must ensure activities are lawful and subject to licensure under the other jurisdiction's laws.

New Section 26300 defines key terms: 'Agreement,' 'Contracting state,' 'Foreign license,' 'Indian tribe,' and 'State license' to establish the legal vocabulary for the new framework.

New Section 26301(a)(2) adds transportation restrictions: agreements must prohibit transporting cannabis by unauthorized means and through jurisdictions that do not authorize such transportation.

New Section 26303 requires agreements to impose specific standards on foreign licensees including public health and safety standards, mandatory tracking system participation, testing standards, packaging and labeling requirements, quality assurance, marketing restrictions, and adulterated product identification processes.

New Section 26301(b) exempts the execution and compliance with an agreement from California Environmental Quality Act (CEQA) review, treating it as not a 'project' under CEQA.

A severability clause was added, stating that if any provision is held invalid, the remaining provisions continue in effect.

New Section 26304 requires agreements to include provisions for addressing public health emergencies (including prompt recall or embargo of adulterated products) and mutual cooperation on investigations between California and the contracting state or tribal government.

The fiscal committee designation changed from 'no' to 'yes,' indicating the bill now carries a fiscal impact that requires fiscal committee review.

New subdivision (e) to Section 26053 defines 'tribal licensee' as an entity licensed by a federally recognized Indian tribe located within the state, and permits state licensees to engage in commercial cannabis activity with tribal licensees if the department certifies the tribe's requirements meet or exceed state standards.

Seven specific certification criteria are listed: (A) enforceable public health and safety standards equivalent to state law, (B) mandatory participation in a tracking system identical to the state's seed-to-sale system, (C) testing standards meeting or exceeding state lab standards, (D) packaging and labeling requirements meeting or exceeding Chapter 12 standards, (E) quality assurance and inspection requirements meeting or exceeding state standards, (F) marketing/labeling/advertising restrictions meeting or exceeding Section 26063 and Chapter 15, and (G) a process for identifying and destroying adulterated or misbranded products using standards meeting or exceeding state procedures.

New Section 2 declares that the act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), which is necessary because AUMA can only be amended by a two-thirds vote of both houses.

The required vote was changed from 'majority' to 'majority 2/3,' meaning the bill now requires a two-thirds supermajority in both houses to pass, consistent with AUMA's constitutional amendment threshold.

Fiscal committee review changed from 'no' to 'yes,' indicating the bill now has fiscal implications requiring committee analysis.

Minor drafting corrections in subdivision (d): removed a duplicated 'and' and replaced the pronoun 'it' with 'the applicant or licensee' for clarity.