CA SB195

Discontinues the cultivation tax on cannabis effective January 1, 2023, and replaces it with an increased cannabis excise tax on retail sales (15% of gross receipts, adjustable up to 19% every two years starting 2025-26).

Transfers cannabis excise tax collection responsibility from distributors to cannabis retailers beginning January 1, 2023, requiring retailers to collect and remit tax to the state quarterly.

Increases labor peace agreement requirements from 20+ employees to 10+ employees (effective July 1, 2024) and establishes enforcement mechanisms including license suspension or revocation for non-compliance.

Imposes civil penalties up to $10,000 per day on property owners who knowingly rent commercial space for unlicensed cannabis cultivation, manufacturing, or distribution.

Provides cannabis tax credits for high-road employers (25% of qualified expenditures, capped at $250,000 annually) and equity licensees ($10,000 annual credit), both expiring January 1, 2028, with a combined $20,000,000 aggregate cap.