CA AB2243

Imposes a tax on distributors for all medical cannabis and medical cannabis products distributed to dispensaries in California, with rates varying by cultivation type: $4.75-$13.25 per ounce of flowers, $1.25 per immature plant, and sales tax rate on manufactured products.

Requires distributors to register for permits with the State Board of Equalization, which administers the tax under the Fee Collection Procedures Law and may suspend or revoke permits for non-compliance.

Creates the Cannabis Production and Environment Mitigation Fund and continuously appropriates collected revenue: 30% to local law enforcement grants for illegal cannabis cultivation enforcement, 30% to environmental cleanup of lands damaged by illegal cultivation, 8% to open space conservation, 2% to Regional Marijuana Enforcement Officers, and 30% to state enforcement agencies.

Becomes inoperative on January 1, 2018, if Proposition 64 (Control, Regulate and Tax Adult Use of Marijuana Act) is approved by voters on November 8, 2016; entire law repeals on January 1, 2025.

Takes effect immediately as an urgency statute.