California Governor Annual Budget Proposal Could Simplify the Life for Marijuana Business

Facebook
Twitter
LinkedIn


California Governor Annual Budget Proposal Could Simplify the Life for Marijuana Business 

January/16/2020

Marijuana businesses in California could soon start enjoying better proceeds through the proposed regulatory and tax collection system. 

It could also be an indication that this year, more legislative help would be accorded to the struggling legal marijuana market in California. 

On January 10, California Governor Gavin Newson announced his annual budget proposal and said that he wants to;

  • Combine three regulatory agencies into one by July 2021. These agencies include the Bureau of Cannabis Control (BCC), the Department of Food and Agriculture (FDA), and the Department of Cannabis Control (DCC).
  • Restructure cannabis tax collection system

Industry stakeholders are in favor of both proposals; however, since the budget is yet to be approved by the state legislators, a lot of details remain unannounced.

Communications chief for the California Cannabis Industry Association (CCIA) Josh Drayton said that when talking about the budget proposal, there are more unknowns than the knowns. But he noted there is a possibility that both plans will be definite for the legal market.

Drayton further noted the merging of the three agencies would be a huge shift as it will unify three agencies’ powers under one unit, the DCC.

The Bureau of Cannabis Control duties includes overseeing the retailers, delivery services, distributors, microbusinesses, events, and testing laboratories. While marijuana manufacturers oversight is the responsibility of the Department of Public Health and the Department of Food and Agriculture regulates the growers.

 When the proposed DCC is approved and operational, it will be the lead regulator for every licensed marijuana business within the state of California.

Drayton further said that since the market for legal recreational marijuana was launched in California, one of the major problems has been contradictory messages from the state authorities to marijuana companies that are trying to adhere to the rules, particularly vertically integrated firms that have business licenses from more than one agency.

Drayton also added that the proposed revamp of the tax collection system would simplify the life of the state revenue collection protocol more than that of the cannabis industry. But with the governor’s support, there is the likelihood of lower marijuana taxes.

Drayton further said that the outbreak of the Vaping-related illness in 2019, was a wake-up call as many legislators realized the severity of the black market products concerning the general public health. This might have contributed to the argument of lowering marijuana taxes to attract marijuana customers to the legal market.

During a budget news conference held last week, Gov. Newsom said that his team is open to receiving more input about marijuana tax reform as well as the possibility of lowering the taxes, which showed that they are willing to review the entire tax process, said Drayton.

Drayton further anticipates that last year’s attempt by Assembly Member Rob Bonta to reduce state excise tax from 15% to 11% and suspension of the cultivation tax till 2022 may be revived. 

If the proposed changed to the law are approved, they will be effective as soon as 1st July. 

PUFF PARTY SIGNUPS

Medcare 2023 event

Terms and Conditions for Entry into Medcare Farms Puff Party(Required)
| Age Requirement: You confirm that you are 21 years of age or older at the time of entering the Event. Valid government-issued photo identification must be presented upon request. | Compliance with Laws: You agree to comply with all federal, state, and local laws and regulations, including those pertaining to the use, possession, and distribution of any substances allowed or provided at the Event. | Liability Waiver: You acknowledge that participation in the Event is at your own risk. Medcare Farms, its affiliates, sponsors, representatives, and employees are not liable for any personal injury, loss, damages, or expenses incurred by you or any person accompanying you to the Event. | No Resale or Transfer: Your entry to the Event is personal to you; tickets or invitations cannot be sold, transferred, or exchanged for any compensation without the express permission of Medcare Farms. | Conduct: You agree to conduct yourself in a manner that is respectful and safe. Medcare Farms reserves the right to remove any participant from the Event for behavior deemed inappropriate, disruptive, or dangerous, without refund or compensation. | Use of Likeness: You grant Medcare Farms and its affiliates the right to use your likeness, image, and voice in photographs, videos, or other digital media taken at the Event, in any and all of its publications, including web-based publications, without payment or other consideration. | Privacy: Personal information collected during the survey and registration process will be used in accordance with Medcare Farms’ Privacy Policy. This information will be used for event management and, unless you opt-out, for informing you of future events and promotions. | Indemnification: You agree to indemnify and hold harmless Medcare Farms and its affiliates, officers, employees, and agents from and against any claims, liabilities, damages, losses, and expenses, including without limitation, reasonable attorney fees and costs, arising out of or in any way connected with your participation in the Event. | Acceptance of Risk: You acknowledge that there are inherent risks involved in attending the Event and that you voluntarily assume those risks. | Severability: If any term or provision of these Terms and Conditions is found to be invalid, illegal, or unenforceable, the remainder of the Terms and Conditions will remain in full force and effect. | Governing Law: These Terms and Conditions shall be governed by and construed in accordance with the laws of the state in which the Event is held, without giving effect to any principles of conflicts of law. | By checking this box, I confirm that I have read, understood, and agree to be bound by these Terms and Conditions.

Related Articles

Puff Party 2023

Medcare Farm’s Puff Party 2023 Welcome to Medcare Farms’ 2023 Puff Party, Complete our brief entry form to enjoy live

Read More »
Med CareLogo large

Are you over 21 years old?

Call Now Button