Three new tax laws took effect on Jan. 1 to regulate the growing industry around cannabis distribution industry under the California State Board of Equalization (BOE). They include a new law that puts in place a “comprehensive statewide regulatory framework for commercial medical cannabis activity,” according to a press release from the BOE’s Office of Public Affairs.
The first of the three bills, AB 266, was introduced by Assemblyman Rob Bonta in early 2015. The law will enact the Medical Marijuana Regulation and Safety Act within the Department of Consumer Affairs and establish within that department the Bureau of Medical Marijuana Regulation.
Provisions in the bill require, before March 1, 2023, and on or before every March thereafter, to prepare an annual report to be made available to the Legislature and to the public via the licensing authority's website. It also requires the BOE to adopt a system for reporting the movement of commercial cannabis and related products through the distribution chain.
The BOE said the legislation “establishes a comprehensive statewide regulatory framework for commercial medical cannabis activity to protect patients, promote public safety, and further enhance compliance with state laws in the medical cannabis industry.”
The other two bills, AB 243 and SB 643 further regulate the medical marijuana industry and provide for ongoing licensure. The BOE states they will work with the departments of Consumer Affairs, Food and Agriculture, Public Health and other state agencies as these laws are implemented and become effective as of Jan. 1, 2018.
AB 243, by Assemblyman Jim Wood now requires a state licensing authority to charge each licensee under the act a licensure and renewal fee, as applicable, and further requires the deposit of those collected fees into an account specific to that licensing authority in the Medical Marijuana Regulation and Safety Act Fund, which the bill established.
SB 643, by Sen. Mike McGuire, establishes standards for a physician and surgeon prescribing medical cannabis and requires the Medical Board of California to further scrutinize physicians and surgeons that have repeatedly recommended excessive cannabis to patients for medical purposes without a good faith examination.
AB 266 required the enactment of both AB 243 and SB 643 before it could be made operative.
