HB 2241

Present law imposes a tax on the sale of hemp-derived cannabinoid products (HDCPs) at a wholesale amount of $0.02 per milligram of hemp-derived cannabinoid in each HDCP sold at wholesale in this state. This bill lowers the tax amount to $0.01 per millig ram. DELIVERY SALES Present law requires that all sales of HDCPs and transfers of product from a retailer to a consumer take place at a licensed retail location in a face-to-face transaction, and prohibits delivery or shipping of HDCPs to consumers in this state. This bill authorizes a licensed retailer to supply, sell, deliver, and install products authorized to be sold by the retailer to locations outside of the licensed premises. Further, this bill authorizes a licensed retailer to deliver HDCPs to a consumer , without the consumer purchasing the products at the physical location of the retailer in a face-to-face transaction. The retailer, or its agent, must require the consumer to present a valid government-issued photo identification, confirm the consumer i s at least 21, and have the consumer sign a verification at the time of delivery. Further, a retailer must maintain a record of the delivery, which includes the name of the consumer who placed and received the order; the products delivered; the time of del ivery; and the place of delivery. Delivery Services This bill generally authorizes a delivery service to deliver sealed packages of HDCPs sold by a retailer to the delivery service's customers during the hours that HDCPs may be legally sold. However, the delivery address must be in the same county or a c ounty contiguous to the county in which the retailer is located; the delivery location must not be more than 50 miles from the licensed premises of the retailer; and all of the following requirements must be met:  The amount of HDCPs delivered to a customer is in such an amount to satisfy the customer's order.  At least 50% of the delivery service's gross sales come from the delivery of food products or prepared food.  A delivery service employee who delivers HDCPs must be at least 21 and be licensed, as explained below.  The delivery service must be licensed, as explained below.  The delivery service must have a written agreement with the retailer to serve as the retailer's agent for purposes of delivery of the retailer's HDCPs to customers.  The delivery service and delivery service employee must require the consumer to present a valid government-issued photo identification, confirm the consumer is at least 21, and have the consumer sign a verification at the time of delivery. As used in this bill, "delivery service"" means a technology services company that provides software or an application for connecting customers, retailers, or restaurants to a delivery driver. However, such term does not include (i) a technology services company that does not employ or contract with delivery drivers but rather provides software or an application that connects licensed retailers with consumers for the delivery of hemp-derived cannabinoid products from a retailer to a co nsumer, (ii) a compan y that ships hemp-derived cannabinoid products to a retailer, (iii) a motor carrier or freight forwarder as those terms are defined by federal law, or (iv) an air carrier as defined by federal law. This bill authorizes a delivery service to charge a delivery fee to customers or retailers with whom the delivery service has a written agreement. Such a delivery fee may be based on a percentage of the sales price of the HDCPs being delivered, but must not b e more than 10% of the price of each HDCP sold. This bill clarifies that the retailer, and not the delivery service, is responsible for remitting applicable taxes on HDCPs. However, a retailer is not subject to penalties for the conduct of a delivery se rv ice driver after the driver picks up and receives a HDCP from the retailer Delivery Service Licenses This bill requires the alcoholic beverage commission (""commission"") to establish and issue delivery service licenses. The commission may issue a license to a delivery service that delivers or facilitates delivery of prepared food from restaurants or ite ms from a retail store to customers as part of the delivery service's business and seeks to deliver sealed packages of HDCPs sold by any licensed retailer. However, an applicant for a delivery service license must be at least 21 and must not have been co nn ected of a felony involving moral turpitude in the 10 years prior to the application. This bill imposes an initial application fee of $300, and a license renewal fee of $150. Further, a delivery service licensee must pay an additional fee based on the total number of delivery service employees or independent contractors used by the deliv ery service to deliver HDCPs, according to the following schedule:  $50 for zero to 15 delivery drivers.  $100 for 16 to 30 delivery drivers.  $150 for 31 to 45 delivery drivers.  $200 for 46 to 60 delivery drivers.  $250 for 61 to 100 delivery drivers.  $300 for 101 to 150 delivery drivers.  $350 for 151 to 200 delivery drivers.  An additional $50 for every 50 delivery drivers over 200, up to a maximum of $1, 000. Delivery Service Employees This bill authorizes a delivery service to use either employees or independent contractors to deliver HDCPs. However, a delivery service licensee must conduct a state and national criminal history background check on any potential employee or independen t contractor that seeks to deliver HDCPs. Such a background check must include a multistate criminal records locator or other similar commercial nationwide database with validation. Further, this bill requires a person used or employed by a delivery ser vi ce licensee to deliver an HDCP must (i) be at least 21, (ii) have passed a background check to ensure the person has not been convicted of a crime involving the sale and distribution of HDCPs or controlled substances within the last seven years and has no t been convicted of any felony in the last five years, and (iii) have a valid driver license. Annual Report This bill requires a licensed delivery service to submit an annual report, beginning on January 15, 2028, and every January 15 thereafter, detailing the number of delivery drivers used by the delivery service to deliver HDCPs in the prior calendar year. Further, the delivery service must maintain, for each driver covered by the delivery service license, records sufficient to verify identity, a copy of the driver license for each delivery driver, and a copy of the background check conducted for that deli ve ry driver. This bill authorizes a delivery service licensee to be subject to fines or the suspension or revocation of its license by the commission for a delivery driver's violation of this bill. RULEMAKING This bill authorizes the commission to promulgate rules to effectuate this bill."