Courthouse News Service
Two nonprofits and two parents filed a petition saying recent legislative bills reduce tax revenue from the legal cannabis market that funds childcare programs.
SAN FRANCISCO (CN) — A Superior Court judge tentatively ruled Thursday that recently enacted California legislation reducing funding for programs subsidized by cannabis tax revenue and license fees is constitutional after a group of petitioners sought to void two bills they claim are amendments to Proposition 64 and violate the California Constitution.
San Francisco County Superior Court Judge Harold Kahn sustained a demurrer by state agencies against a petition brought by the nonprofits Youth Transforming Justice, the East Bay Asian Youth Center and two parents who say funding they rely on for childcare will evaporate under Assembly Bill 564 and Senate Bill 141.
Prop 64 is a 2016 voter-approved initiative that created a legalized cannabis market that would fund its own regulation through license fees, a cultivation tax and an excise tax on cannabis purchasers. The recipients of the tax revenue, after covering costs, are broken down into three tiers.
Tier three programs were designed to mitigate the environmental risks of cultivating cannabis, the social risks of making cannabis legally available, including childcare programs, and support law enforcement programs. Tier three programs receive the remaining revenue after the first two tiers are funded by a percentage, with 60% funding youth programs.
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Judge tentatively finds California cannabis tax revenue changes constitutional
