Funding - - CA Business And Professions

Section § 26210

This law explains the financial management of cannabis-related funds in California. The Marijuana Control Fund has been renamed the Cannabis Control Fund, and any references to its old names should now refer to this new name. Loans that helped establish cannabis regulation must be repaid with fees collected from cannabis businesses by January 1, 2022. If these fees aren't enough, money will come from the Cannabis Fines and Penalties Account. Additionally, all fines and penalties collected under cannabis regulations will go into this account, which is set aside for use as directed by the Legislature.

(a) The Marijuana Control Fund, formerly known as the Medical Cannabis Regulation and Safety Act Fund and the Medical Marijuana Regulation and Safety Act Fund, is hereby renamed the Cannabis Control Fund. Notwithstanding Section 16305.7 of the Government Code, the fund shall include any interest and dividends earned on moneys in the fund.

(b) Upon the effective date of this section, whenever “Marijuana Control Fund,” “Medical Cannabis Regulation and Safety Act Fund,” or “Medical Marijuana Regulation and Safety Act Fund” appears in any statute, regulation, or contract, or in any other code, it shall be construed to refer to the Cannabis Control Fund.

(c) Any General Fund or special fund loan that was used to establish and support the regulatory activities of the state licensing entities pursuant to former Section 19351 shall be repaid by the initial proceeds from fees collected pursuant to this division or any rule or regulation adopted pursuant to this division, by January 1, 2022. Should the initial proceeds from fees not be sufficient to repay the loan, moneys from the Cannabis Fines and Penalties Account shall be made available to the department, by appropriation of the Legislature, to repay the loan.

(d) Except as otherwise provided, all moneys collected pursuant to this division as a result of fines or penalties imposed under this division shall be deposited directly into the Cannabis Fines and Penalties Account, which is hereby continued in existence, and shall be available, upon appropriation by the Legislature.

Cannabis Control Fund Marijuana Control Fund Cannabis Fines and Penalties Account regulatory activities fund renaming loan repayment state licensing entities fees collection fines and penalties legislative appropriation dividends and interest fund management General Fund loan Medical Cannabis Fund Medical Marijuana Fund

(Amended by Stats. 2021, Ch. 70, Sec. 87. (AB 141) Effective July 12, 2021. Note: This section was added on Nov. 8, 2016, by initiative Prop. 64.)

Section § 26210.5

By July 1, 2018, the Bureau of Cannabis Control and the Department of General Services needed to set up an office in Humboldt, Trinity, or Mendocino County to handle fees and taxes related to cannabis. This was to make sure they could safely collect cash payments in these areas.

By July 1, 2018, the Bureau of Cannabis Control, in coordination with the Department of General Services, shall establish an office to collect fees and taxes in the County of Humboldt, County of Trinity, or County of Mendocino in order to ensure the safe payment and collection of cash in those counties.

Bureau of Cannabis Control Department of General Services cash payment fees and taxes Humboldt County Trinity County Mendocino County cannabis regulation safe collection establish office tax collection coordination cash handling July 1 2018 California cannabis

(Amended by Stats. 2021, Ch. 70, Sec. 88. (AB 141) Effective July 12, 2021.)

Section § 26211

This law section outlines how California initially funded the regulatory activities related to cannabis control and taxation. To get things started, money was advanced from the General Fund, which is expected to be repaid by 2025 through fees and taxes related to cannabis. An initial amount of up to $30 million was determined for advance funding, and $5 million was specifically allocated to create a public information program run by the State Department of Health Care Services. This program must provide information about the legal, safety, and health issues related to cannabis, such as age restrictions, penalties, and the dangers of impaired driving or overuse. The funding for these activities is planned to continue annually from July 1, 2017.

(a) Funds for the initial establishment and support of the regulatory activities under this division, including the public information program described in subdivision (c), and for the activities of the California Department of Tax and Fee Administration under Part 14.5 (commencing with Section 34010) of Division 2 of the Revenue and Taxation Code until July 1, 2017, or until the 2017 Budget Act is enacted, whichever occurs later, shall be advanced from the General Fund and shall be repaid by the initial proceeds from fees collected pursuant to this division, any rule or regulation adopted pursuant to this division, or revenues collected from the tax imposed by Sections 34011 and 34012 of the Revenue and Taxation Code, by January 1, 2025.

(1) Funds advanced pursuant to this subdivision shall be appropriated to the department as necessary to implement the provisions of this division, and to the California Department of Tax and Fee Administration, as necessary, to implement the provisions of Part 14.5 (commencing with Section 34010) of Division 2 of the Revenue and Taxation Code.

(2) Within 45 days of November 9, 2016, the date this section became operative:

(A) The Director of Finance shall determine an amount of the initial advance from the General Fund to the Cannabis Control Fund that does not exceed thirty million dollars ($30,000,000); and

(B) There shall be advanced a sum of five million dollars ($5,000,000) from the General Fund to the State Department of Health Care Services to provide for the public information program described in subdivision (c).

(b) Notwithstanding subdivision (a), the Legislature shall provide sufficient funds to the Cannabis Control Fund to support the activities of the department under this division, and the California Department of Tax and Fee Administration to support its activities under Part 14.5 (commencing with Section 34010) of Division 2 of the Revenue and Taxation Code. It is anticipated that this funding will be provided annually beginning on July 1, 2017.

(c) The State Department of Health Care Services shall establish and implement a public information program no later than September 1, 2017. This public information program shall, at a minimum, describe the provisions of the Control, Regulate and Tax Adult Use of Marijuana Act of 2016, the scientific basis for restricting access of cannabis and cannabis products to persons under the age of 21 years, describe the penalties for providing access to cannabis and cannabis products to persons under the age of 21 years, provide information regarding the dangers of driving a motor vehicle, boat, vessel, aircraft, or other vehicle used for transportation while impaired from cannabis use, the potential harms of using cannabis while pregnant or breastfeeding, and the potential harms of overusing cannabis or cannabis products.

General Fund Cannabis Control Fund public information program tax and fee administration California Department of Tax and Fee Administration cannabis regulation Control Regulate and Tax Adult Use of Marijuana Act of 2016 impaired driving penalties age restrictions on cannabis effects of cannabis use State Department of Health Care Services initial funding cannabis tax revenues repayment deadline advance funding determination

(Amended by Stats. 2021, Ch. 70, Sec. 89. (AB 141) Effective July 12, 2021. Note: This section was added on Nov. 8, 2016, by initiative Prop. 64.)