HomeMy WebLinkAbout5.16.22 Board Correspondence - FW_ BOS correspondence FW_ DCC Re news for cannabis in Governor’s Budget
From:Paulsen, Shaina
To:BOS
Subject:Board Correspondence - FW: BOS correspondence FW: DCC Re news for cannabis in Governor’s Budget
Date:Monday, May 16, 2022 8:06:59 AM
Attachments:Good news for cannabis in Governors Budget.msg
Importance:High
Please see Board Correspondence below.
Shaina Paulsen
Associate Clerk of The Board
Butte County Administration
25 County Center Drive, Suite 200, Oroville, CA 95965
T: 530.552.3304 | F: 530.538.7120
From: Bennett, Robin <RBennett@buttecounty.net>
Sent: Friday, May 13, 2022 5:36 PM
To: Reaster, Kayla <kreaster@buttecounty.net>; Paulsen, Shaina <SPaulsen@buttecounty.net>
Cc: Honea, Kory <KHonea@buttecounty.net>; Teeter, Doug <DTeeter@buttecounty.net>; Pickett,
Andy <APickett@buttecounty.net>
Subject: BOS correspondence FW: DCC Re news for cannabis in Governor’s Budget
Importance: High
Please see the attached DCC announcement regarding the State budget and Cannabis regulation, for
your records.
Sincerely,
Executive Assistant to
Supervisor Doug Teeter, District 5
Butte County Board of Supervisors
O: 530-762-2186
From: Department of Cannabis Control <outreach@cannabis.ca.gov>
Sent: Friday, May 13, 2022 3:27 PM
To: Bennett, Robin <RBennett@buttecounty.net>
Subject: Good news for cannabis in Governor’s Budget
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California Department of Cannabis Control
May 13, 2022
Good afternoon,
The Governor’s Office today released a revised 2022-23 state budget proposal,
building on the state’s ongoing work to make historic investments in California’s
future, including efforts to create a safe, sustainable, and equitable legal
cannabis market.
Governor Newsom delivered on his commitment to help simplify the tax
structure by moving forward a proposal that, if approved by the Legislature, will
remove unnecessary administrative burdens and costs, temporarily reduce the
tax rate to support shifting consumers to the legal market, and stabilize the
cannabis market.
We have heard from many of you who have said that the current cannabis tax
framework is overly complex. We know that current tax policies
disproportionately burden cannabis farmers and small businesses and create
instability throughout the supply chain, ultimately undermining the societal
benefits of a taxed and regulated market.
The May Revision proposes statutory changes to reform cannabis taxes and
help reduce burdens for legal operators. Some changes include:
Setting the cultivation tax rate at zero beginning July 1, 2022.
Shifting the point of collection and remittance for excise tax from
distribution to retail on January 1, 2023, maintaining a 15 percent excise
tax rate.
Setting Allocation 3 funding for youth education/intervention/treatment,
environmental restoration, and state and local law enforcement programs
at a baseline of $670 million annually for three years. Up to $150 million
one-time General Fund is available as needed through 2025-26 to backfill
Allocation 3 funding, along with the authority to increase the excise tax
rate through 2024-25 if tax revenues fall below the baseline for Allocation
3.
Strengthening tax enforcement policies to increase tax compliance and
collection and reduce unfair competition.
In addition, the Governor’s budget proposal includes a one-time allocation of
$20.5 million to help expand access to legal retail throughout California. The
grant program will assist cities and counties that do not currently license
storefront or delivery-only cannabis retailers. If approved, the funds will aid
localities with the development and implementation of local retail licensing
programs and helping more of California’s existing consumers gain access to
regulated and tested products through licensed and legal retailers.
You can learn more about the cannabis retail access grant proposal on page
138 in the Governor’s May Revise Budget Proposal here.
I share this information because I wanted you all to know about the work the
Governor’s Office is doing to support our collective efforts. Creating a
sustainable, safe, equitable, and legal cannabis market in our state is no small
feat — it is a labor of love, and it takes all of us working together to help make
this a reality.
Thank you,
Nicole Elliott,
DCC Director
About the Department of Cannabis Control
The Department of Cannabis Control (DCC) licenses and regulates commercial cannabis activity within
California. DCC works closely with all stakeholders, including businesses and local jurisdictions, to create
a sustainable legal cannabis industry and a safe and equitable marketplace. DCC develops and
implements progressive cannabis policies with robust protections for public health, safety and the
environment. DCC was recently formed by merging the three state cannabis programs.
Learn more
Integrity • Fairness • Innovation • Knowledge • Collaboration • Support
Department of Cannabis Control (DCC) - Rancho Cordova, CA
Department of Cannabis Control (DCC) - Rancho Cordova, CA
2920 Kilgore Rd
Rancho Cordova, CA 95670-6157
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