CA SB1131

Establishes the "Sales Tax Enforcement Act of 2010" requiring growers, wholesalers, retailers, and transporters of cannabis and cannabis products to obtain annual certificates from the State Board of Equalization, with $1,300 certificate fees per location.

Prohibits the sale or transportation of cannabis and cannabis products without a valid certificate; violators subject to misdemeanor penalties up to $50,000 fine and/or one year imprisonment, plus certificate suspension or revocation.

Requires certificate holders to maintain detailed sales invoices and records for all cannabis transactions; authorizes board employees and peace officers to conduct inspections and seize non-compliant cannabis products.

Imposes wholesale sales tax prepayment requirements where wholesalers must collect and remit combined sales tax rates on cannabis gross receipts; retailers and consuming wholesalers receive tax credits for prepayments made.

Creates the Cannabis and Cannabis Products Compliance Fund to deposit all collected fees and penalties, with revenues used solely to reimburse the State Board of Equalization for administration and enforcement costs; operative July 1, 2011.