AB2420 - Cannabis: donations: seniors.

Amended IN Assembly March 19, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 2420 Introduced by Assembly Member Caloza February 20, 2026 An act to amend Sections 26001, 26153, and 26161 of, and to add Section 26072 to, the Business and Professions Code, and to amend Section 34011.2 of, and to add and repeal Section 6414.1 to, the Revenue and Taxation Code, relating to cannabis. LEGISLATIVE COUNSEL'S DIGEST AB 2420, as amended, Caloza. Cannabis: donations: seniors. The (1) 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. MAUCRSA authorizes a licensee that is authorized to make retail sales to provide free cannabis or cannabis products to a medicinal cannabis patient or the patient’s primary caregiver if specified requirements are met. AUMA imposes a cannabis excise tax upon purchasers of cannabis or cannabis products, as specified. Existing law exempts from the excise tax medicinal cannabis and medicinal cannabis products donated for no consideration to a medicinal cannabis patient, as specified. This bill would state the intent of the Legislature to enact legislation that authorizes cannabis retailers to donate cannabis or cannabis products to persons 65 years of age and older and to provide a tax exemption for cannabis or cannabis products that are donated to persons 65 years of age and older. authorize a licensee that is authorized to make retail sales to provide free cannabis or cannabis products to a person 65 years of age or older or a senior caregiver, as defined, if specified requirements are met. (2) Existing sales and use tax laws impose use taxes on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state, presumes tangible personal property purchased outside the state that is stored, used, or consumed in this state is purchased for use in this state, and provides various exemptions from those taxes. Existing law, until January 1, 2030, exempts from the use tax the storage, use, or other consumption in this state of medicinal cannabis or medicinal cannabis products that are donated for no consideration, as specified. This bill, on and after a specified operative date, and until 5 years after that operative date, would exempt from the use tax the storage, use, or other consumption in this state of cannabis or cannabis products that are donated for no consideration to a person 65 years of age or older, as specified. The bill would require the exemption to apply only if the cannabis retailer certifies in writing, as specified, that the cannabis or cannabis product will be used as specified. The bill would make a licensee that uses the donated cannabis or cannabis product in some other manner, or for some other purpose, liable for the payment of use tax and subject to having their license suspended. By expanding the crime of perjury, the bill would impose a state-mandated local program. The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws. Existing law requires the state to reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions. This bill would provide that, notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse any local agencies for sales and use tax revenues lost by them pursuant to this bill. (3) AUMA imposes a cannabis excise tax upon purchasers of cannabis or cannabis products, as specified. Existing law requires that these provisions not be construed to impose an excise tax upon medicinal cannabis and medicinal cannabis products donated for no consideration to a medicinal cannabis patient, as specified. The bill would also require that these provisions not be construed to impose an excise tax upon cannabis or cannabis products donated for no consideration to a person 65 years of age or older, as specified. (4) This bill would require the Legislative Analyst’s Office, in order to enable the Legislature to determine whether the use tax exemption provided by the bill are meeting, failing to meet, or exceeding a specified goal and objective, to collect certain data regarding the tax exemptions from specified entities, and to submit a report containing the data to the Legislature and the Governor annually each year that the tax exemptions are in effect. (5)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. (6) The Control, Regulate and Tax Adult Use of Marijuana Act, an initiative measure, authorizes the Legislature to amend the act to further the purposes and intent of the act with a 2 / 3 vote of the membership of both houses of the Legislature, except as provided. This bill would declare that its provisions further specified purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act. Digest Key Vote: MAJORITY 2/3 Appropriation: NO Fiscal Committee: NO YES Local Program: NO YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 26001 of the Business and Professions Code is amended to read: 26001. For purposes of this division, the following definitions apply: (a) “A-license” means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physician’s recommendation, or are intended for use on, or consumption by, animals. (b) “A-licensee” means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physician’s recommendation, or are intended for use on, or consumption by, animals. (c) “Animal” does not include a food animal as defined in Section 4825.1 or livestock as defined in Section 14205 of the Food and Agricultural Code. (d) “Applicant” means an owner applying for a state license pursuant to this division. (e) “Batch” means a specific quantity of homogeneous cannabis, industrial hemp, or cannabis product that is one of the following types: (1) “Harvest batch” means a specifically identified quantity of dried flower or trim, leaves, and other plant matter from either cannabis or industrial hemp that is harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals. (2) “Manufactured cannabis batch” means either of the following: (A) An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures. (B) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures. (f) “Cannabinoid” means a chemical compound found in cannabis and industrial hemp that binds to or otherwise activates cannabinoid receptors in humans and animals. “Cannabinoid” includes, but is not limited to, tetrahydrocannabinol (THC) and cannabidiol (CBD). (g) “Cannabis” has the same meaning as in Section 11018 of the Health and Safety Code. (h) “Cannabis accessories” has the same meaning as in Section 11018.2 of the Health and Safety Code. (i) “Cannabis beverage” means a form of edible cannabis product that is intended to be consumed in its final state as a beverage. (j) “Cannabis concentrate” has the same meaning as in Section 11006.5 of the Health and Safety Code. (k) “Cannabis event organizer” means a person authorized to plan and organize temporary cannabis events as authorized in Section 26200. (l) “Cannabis products” has the same meaning as in Section 11018.1 of the Health and Safety Code. (m) “CBD isolate” means a compound extracted from cannabis or industrial hemp consisting of cannabidiol (CAS number 13956-29-1), with a purity level greater than 99 percent and that does not contain any form of tetrahydrocannabinol or synthetic cannabinoid. (n) “CBN isolate” means a compound extracted from cannabis or industrial hemp consisting of cannabinol (CAS number 521-35-7), with a purity level greater than 99 percent, and that does not contain any form of tetrahydrocannabinol or synthetic cannabinoid. (o) “Child resistant” means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly. (p) “Combined activities license” means a state license that authorizes two or more commercial cannabis activities at the same premises, with the exception of laboratory testing. A combined activities license shall conform with all requirements imposed by this division to the extent the licensee engages in those activities. (q) “Commercial cannabis activity” includes the cultivation of cannabis or the possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this division, or acting as a cannabis event organizer for temporary cannabis events. (r) “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. (s) “Cultivation site” means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs. (t) “Customer” means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physician’s recommendation, or a primary caregiver. (u) “Daycare center” has the same meaning as in Section 1596.76 of the Health and Safety Code. (v) “Delivery” means the commercial transfer of cannabis or cannabis products to a customer. “Delivery” also includes the use by a retailer of any technology platform. (w) “Department” means the Department of Cannabis Control within the Business, Consumer Services, and Housing Agency. (x) “Director” means the Director of the Department of Cannabis Control. (y) “Distribution” means the procurement, sale, and transport of cannabis and cannabis products between licensees. (z) “Distributor” means a licensee that is authorized to engage in the distribution of cannabis, industrial hemp, and cannabis products. (aa) “Dried flower” means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems. (ab) “Edible cannabis product” means a cannabis product that is intended to be used, in whole or in part, for human or animal consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, a processed pet food, as defined by Section 113025 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code. (ac) “Fund” means the Cannabis Control Fund established pursuant to Section 26210. (ad) “Industrial hemp” has the same meaning as in Section 11018.5 of the Health and Safety Code. (ae) “Kind” means applicable type or designation regarding a particular cannabis variant, origin, or product type, including, but not limited to, strain name, trademark, or production area designation. (af) “Labeling” means any label or other written, printed, or graphic matter upon a cannabis or cannabis product, upon its container or wrapper, or that accompanies any cannabis or cannabis product. (ag) “Labor peace agreement” means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the state’s proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicant’s business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicant’s employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicant’s employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization. (ah) “License” means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license. (ai) “Licensed market” means the California licensed market for cannabis, industrial hemp, and cannabis products that is subject to regulation by this division. (aj) “Licensee” means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license. (ak) “Licensing authority” means the department and any state agency currently or formerly responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee. (al) “Live plants” means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants. (am) “Local jurisdiction” means a city, county, or city and county. (an) “Lot” means a batch or a specifically identified portion of a batch. (ao) “M-license” means a state license issued under this division for commercial cannabis activity involving medicinal cannabis. (ap) “M-licensee” means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis. (aq) “Manufacture” means to compound, blend, extract, infuse, package, label, or otherwise make or prepare a c [Text truncated for display. Full text available on Congress.gov.]