AB 1420 Cannabis: licensing fees

This bill is part of the 2019 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 1420  (Obernolte R)   Cannabis: licensing fees.

The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, generally divides responsibility for the state licensure and regulation of commercial cannabis activity among the Department of Consumer Affairs, the Department of Food and Agriculture, and the State Department of Public Health.  MAUCRSA requires those licensing authorities to establish a scale of application, licensing, and renewal fees based upon the cost of enforcing MAUCRSA and upon the size of the business of the licensee or applicant, as specified.

Under existing administrative law, the licensing authorities have adopted regulations setting application fees and annual license fees that vary depending on license category as well as the size of the business for certain annual license fees.

This bill would prohibit licensing authorities from setting application and license fees that exceed certain specified amounts that are consistent with regulations adopted as of January 1, 2019.

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

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