AB 2925 California Cannabis Tax Fund: spending reports

This bill is part of the 2022 Cannabis Bills section of our ongoing update on California Cannabis Legislation – see the full California Cannabis Law Legislative Update which includes information on cannabis bills from other years.

AB 2925 (Cooper D) California Cannabis Tax Fund: spending reports.

[Note: On May 19, 2022, this bill was amended to delete the provisions that would have changed the composition of the California Cannabis Control Appeals Panel.]

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. 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.

AUMA, as additionally amended by statute, establishes the California Cannabis Tax Fund as a continuously appropriated fund consisting of specified taxes, interest, penalties, and other amounts related to commercial cannabis activity. Each fiscal year AUMA requires the Controller to make disbursements from the fund pursuant to a specified schedule, including, but not limited to, amounts to the Youth Education, Prevention, Early Intervention and Treatment Account.

AUMA requires the Controller to disburse funds from the Youth Education, Prevention, Early Intervention and Treatment Account to the State Department of Health Care Services for programs for youth that are designed to educate about and to prevent substance use disorders and to prevent harm from substance use. AUMA requires the State Department of Health Care Services to enter into interagency agreements with the State Department of Public Health and the State Department of Education to implement and administer these programs, and authorizes the departments to contract with each county behavioral health program for the provision of services.

This bill would require the State Department of Health Care Services, on or before July 10, 2023, to provide to the Legislature a spending report of funds from the Youth Education, Prevention, Early Intervention and Treatment Account for the 2021–22 and 2022–23 fiscal years. The bill would require the department, on or before July 10, 2024, and annually thereafter, to provide that spending report for the prior fiscal year.

Read more about California Cannabis Legislation – see the full California Cannabis Law Legislative Update.

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