AB 1616 California Cannabis Tax Fund: Board of State and Community Corrections grants

This bill is part of the 2023 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 1616 (Lackey R) California Cannabis Tax Fund: Board of State and Community Corrections grants.

Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure, 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.

Existing law 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 specified disbursements from the fund, including amounts to the Board of State and Community Corrections for making grants to local governments to assist with law enforcement, fire protection, and other local programs addressing public health and safety associated with the implementation of AUMA. AUMA prohibits the board from making grants to local governments that ban both indoor and outdoor commercial cannabis cultivation, or ban retail sale of cannabis or cannabis products.

This bill would require the Board of State and Community Corrections to prioritize local governments whose programs seek to address the unlawful cultivation and sale of cannabis. The bill would also authorize the board to make grants to local governments that ban both indoor and outdoor commercial cannabis cultivation, or ban retail sale of cannabis or cannabis products.

AUMA authorizes the Legislature to amend its provisions with a 2/3 vote of both houses to further its purposes and intent, except as specified.

This bill would declare that its provisions further the purposes and intent of AUMA.

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

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