2018 Legislation

The state legislature continues to lead on cannabis policy reform. In 2018 CalGrowers is tracking more than 100 pieces of legislation. Several of the priority issues we identified in our strategic planning process are moving forward in legislation.

Working through a deliberative two-step process our policy positions are clear and decided in a transparent and inclusive process. This process ensures we are accountable to our membership and our mission. All members are welcome to participate in the process.

High Priority

AB 2641: Temporary Events: Producer Sales.

Allows cultivators and manufacturers to sell their own products at permitted cannabis events. Currently, only licensed retailers can sell at cannabis events.

AB 2020: Temporary Events: Any permitted location.

Allows cannabis events to be held at any locally permitted venue. Currently, events can only be held at county fairgrounds or district agricultural associations.

AB 3157: Tax reduction.

Decreases the state cannabis excise tax from 15% to 11%, and waives the cultivation tax entirely. Both tax reductions would be effective until June 1, 2021.

  • The bill was held in appropriations committee and is dead for the year. However, CGA continues to support tax reform based on its tax platform.
  • Position: Support.
  • Related documents:
    • CalGrowers Tax Platform - key principles include a progressive cultivation tax based on size, and a tax waiver for cottage growers and medical cannabis.
    • Cumulative Tax Analysis - analyzes combined state and local taxes in California, and compares them to cumulative taxes in other states. Concludes that California taxes average around 39.5%, substantially higher than taxes in all other cannabis-legal states aside from Washington.

SB 311: Commercial cannabis activity: licensed distributors

Allows a cannabis product to be transferred between licensed distributors after certified testing. Currently, a product can only be transported from a distributor to a retailer following testing.

Medium Priority

AB 924: Indian Tribes: commercial cannabis activity.

Authorizes the Governor to enter into compacts with Indian tribes for commercial cannabis activity.

  • Position: Support.

AB 1741: Cannabis: taxation: electronic funds transfer.

Monthly tax payments over $10,000 are currently subject to a penalty if they're paid in cash. This bill would waive that penalty for licensed cannabis businesses.

AB 1793: Cannabis convictions.

Creates a process that would automatically expunge or resentence prior cannabis convictions that have been reclassified by Prop 64.

AB 1863: Tax deductions: 280E

Allows cannabis businesses to deduct expenses on state taxes that would otherwise be prohibited by IRS Section 280E.

  • Position: Support in concept.

AB 2255: Distribution: deliveries: violations

Clarifies law enforcement procedures when interacting with cannabis distributors.

  • Position: Support.

AB 2377: Agriculture: Technical Assistance Grant Program

Provides technical grants for climate mitigation to farmers and ranchers, with priority for small and moderate-sized farms/ranches and farms/ranches owned by people from socially disadvantaged groups.

  • Position: Support, and seek clarification that cannabis farms are eligible.

AB 2402: Cannabis: personal information

Prohibits a cannabis licensee from disclosing a consumer's personal information to a third party.

AB 2422: Anticoagulants (rodenticide).

Prohibits the use of certain anticoagulant rodenticides.

AB 2555: Cannabis: mature plants.

Defines a mature plant at eighteen inches of height or width and requires a UID to be affixed at that point.

  • Position: Oppose unless amended.
  • Priority amendments include requiring a UID to be affixed at eighteen inches, but keeping the current definition of "mature plant" in place, which would prevent impacts affecting canopy size and nurseries.

AB 2899: Cannabis: advertisements: license number 

Clarifies that a state cannabis license number must be shown on cannabis advertisements displayed by a technology platform.

  • Position: Support.

AB 2914: Cannabis and Alcohol Retailers

Prohibits a licensed alcohol or tobacco retail from holding a cannabis license.

  • Position: Support if amended to exempt small businesses, include alcohol distributors, and narrow the scope of limitation.

AB 2980: Cannabis: premises: common space

Clarifies that licensees may share common use areas such as a bathrooms, breakrooms, locker rooms, or hallways.

  • Position: Support if amended to include commercial kitchens.

AJR 27: Relative to Cannabis

Encourages the federal government to respect California state law on cannabis.

SB 829: Compassionate Care Licenses

Creates a new "compassionate care" license, available to M-licensees, for businesses that donate cannabis for free. Donated cannabis would be exempt from state taxes.

SB 930: Cannabis Banking

Creates a limited-charter state bank that would accept cannabis-related cash and allow businesses to pay rent, other cannabis businesses, and state fees and taxes. The bank would not be able to provide full banking services and would work more like a depository institution.

SB 1294: Cannabis: state and local equity programs.

Creates a state equity program that includes technical assistance, low-interest loans and grants, and the establishment of a state equity task force to advise on additional equity incentives.

  • Position: Support in concept.

SB 1409: Industrial Hemp

Streamlines hemp cultivation by removing the requirement that it be grown as a "fiber or oilseed crop" and removing the prohibition on pruning and culling. Allows city and county governments to limit or prohibit hemp cultivation.

  • Position: Support pending clarification on exact language.

SB 1459: Cannabis cultivation: county agricultural commissioners: reporting

Allows county agricultural commissions to include cannabis information in their annual crop reports

(Updated: July 17, 2018)