Cannabis Businesses, Local Governments to Benefit from New Group
Mendocino County is the latest to sign an agreement with the California Cannabis Authority in an effort to help local governments with regulatory compliance and assist in creating a rich pool of data about the cannabis industry. Our attorneys know one of the most difficult things about establishing any new industry is lack of concrete data. There can be a lot of growing pains as authorities and economic leaders gather a foundation of facts that help in making critical decisions about public safety, regulations, and taxation. This is particularly true when dealing with a controlled substance, like marijuana. Even though marijuana has been legal for medical purposes in California since the passing of the Compassionate Use Act of 1996, the switch to recreational legalization in the state as of Jan. 1 was a real game changer. MAUCRSA, Medicinal and Adult-Use Cannabis Regulations and Safety Act, was created to combine guidelines for medical marijuana with all the new stringent licensing rules for recreational cannabis, so all regulations lived under one umbrella.
The mission of the newly formed California Cannabis Authority is to “develop and manage a statewide data platform that will gather, collect, and analyze information from a myriad of data sources into one resource.” The more local governments that participate, the more compelling and significant the data will be for everyone who accesses it.
The group was created by the California State Association of Counties Finance Corp. The group started with San Luis Obispo, Humboldt, and Monterey Counties on board, with Mendocino following suit. According to a report by the Ukiah Daily Journal, the platform will make it easier to track tax payments, provide compliance information to county departments, and allow health officials to access product information.
Our knowledgeable cannabis business attorneys in Riverside know this database is helpful for public officials, but also to the sustainability of cannabis businesses. Sharing this information can increase understanding between local governments and owners. Detailed tracking of finances, taxation, licensing and regulatory compliance could also pave the way for financial institutions to more easily work with cannabis-related businesses. Financial institutions must have an excessive amount of proof that a cannabis-related business is following all state guidelines before a relationship can form, so a database of this sort would be an excellent first step to easing this process significantly. In turn, this benefits the cannabis industry, which largely has to operate with cash. Any modern businessperson will tell you this is a gargantuan feat. The long-term stamina of the marijuana industry is dependent in part on allowing growers and distributors to move their platforms into the 21st century.
Cooperation between cannabis businesses and local governments is a positive thing, and the hope is we’ll soon see more of it in Southern California. Trust and communication are key factors to success going forward, which is why our marijuana attorneys work with cannabis businesses to establish a business framework that incorporates regulatory considerations and financial viability. We want to see your business start off on the right foot and continue to grow into the future.
The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients, defendants, workers and those facing criminal marijuana charges. Call us at 949-375-4734.
California Cannabis Authority (CCA), California State Association of Counties
More Blog Entries:
Cash-Only System Tough on Marijuana Businesses When Paying Taxes, March 27, 2018, Cannabis Law Group