Training_Events

California Legislature Introduces 3 Cannabis Bills Ahead of 2019 Session: Banking, Cannabis Donations and Training Events

The California Legislature has started the 2019 legislative season by introducing three cannabis bills relating to banking, cannabis donations and training events. The California Legislature previously introduced all three bills during the 2018 legislative season. Governor Brown vetoed the cannabis training event and donation bills, which passed the Assembly and Senate with strong support . We believe that all three bills will quickly become law under Governor Newsom.


SB-51 Financial institutions: cannabis. The financial institutions bill would create the Cannabis Limited Charter Banking and Credit Union Law. The new law is a positive step towards filling the banking void in the cannabis industry. However, it does not solve the problem. The federal government has a responsibility to its citizens, investors and the business community to legalize marijuana and provide cannabis clients with access to banking services.  

AB-141 Cannabis: informational, educational, or training events. The bill permitted cannabis licensees to hold informational and training sessions with state and local employees, among others, without a temporary cannabis event license. Governor Brown vetoed the bill as nothing within the current legal framework would prohibit such an event.

SB-34 Cannabis: donations. The compassionate care bill permitted dispensaries to provide free marijuana products to medical marijuana patients. Governor Brown vetoed the bill indicating that it conflicted with the Control, Regulate and Tax Adult Use of Marijuana Act, and undermined the rules and the intent of voters. The bill is currently being considered by California’s Senate, and will need a 2/3 vote to become law.


California: 7 Cannabis Bills Vetoed Including Donated Cannabis and Common Space

California Governor Jerry Brown vetoed 7 cannabis bills including one allowing dispensaries to donate cannabis to patients, which is surprising given the level of public support and precedence in other states such as Washington.

The reasons cited for the Governor’s vetos showed a general deference to the cannabis regulatory agencies. So long as the regulatory agencies take action, the Governor’s approach may work as the industry will be able to provide meaningful input into the final rules.

Below is a description of the bills along with the Governor’s reason reason for vetoing.

  • AB-1863: Personal income tax: deduction: commercial cannabis activity: The bill provided individuals with the ability to deduct expenses associated with a cannabis business. Governor Brown vetoed the bill indicating that it should be considered as a part of the budget process due to the cost to the General Fund.

  • SB 829: Cannabis: Donations: The compassionate care bill permitted dispensaries to provide free marijuana products to medical marijuana patients. Governor Brown vetoed the bill indicating that it conflicted with the Control, Regulate and Tax Adult Use of Marijuana Act, and undermined the rules and the intent of voters. The bill is currently being considered by California’s Senate, and will need a 2/3 vote to become law.

  • AB-2255: Cannabis: distribution: deliveries: violations: The bill prohibits a licensed distributor from transporting marijuana product that exceeds the shipping manifest, and requires presentation of the shipping manifest upon request. The bill authorized law enforcement agencies to issue citations for violating these provisions. Governor Brown vetoed the bill due to the nascency of the enforcement process, and he indicated that the authority for enforcing the delivery regulations resided with the Bureau of Cannabis Control.

  • AB-2980: Cannabis: premises: common space: The bill allows multiple cannabis licensees to share common spaces in a building such as bathrooms, lunchrooms or hallways. Governor Brown vetoed the bill so that the regulators licensing these entities could address the issue in the regulations rather than in a statute.

  • AB-3069: Cannabis: informational, educational, or training events: The bill permitted cannabis licensees to hold informational and training sessions with state and local employees, among others, without a temporary cannabis event license. Governor Brown vetoed the bill as nothing within the current legal framework would prohibit such an event.

  • AB-2058: Vehicles: driving under the influence: cannabis: The bill required the Department of Motor Vehicles to capture instances in which an individual was driving under the influence of cannabis so that the data could be used for monitoring impact of legal cannabis. Governor Brown vetoed the bill due to the technology burden on the Department of Motor Vehicles and the demand of other priorities.

  • AB-1996: The California Cannabis Research Program: The bill allowed the program to cultivate cannabis for research purposes, expanded the scope of the research and authorized controlled clinical trials to focus on examining testing methods. Governor Brown vetoed the bill citing that it conflicted directly with the Control, Regulate and Tax Adult Use of Marijuana Act.

GOV. BROWN SIGNS ONE BILL AND VETOS ANOTHER

Governor Brown signed the Electronic Fund Transfer: Commercial Cannabis Exemption bill, which amended the Revenue and Tax Code was to exempt commercial cannabis businesses from the requirement that all persons with an average estimated tax liability of $10,000 per month must transmit the amounts owed using an electronic funds transfer  Persons engaging in commercial cannabis activity do not have to submit taxes due to the department by an electronic funds transfer until January 1, 2022.

Governor Brown also vetoed AB-3069 Cannabis Informational, Educational and Training Events bill, stating that this activity is not prohibited under current law.  Bill AB-3069 allowed commercial cannabis businesses to host informational, educational and training events for civic attendees that are over 21 including state and local officials and employees, employees of health care facilities and employees of private and public schools without obtaining a temporary cannabis event license.  The bill placed restrictions on the use of the cannabis products during the event including a prohibition on consumption.