Greetings!
Last month, DCR launched its first public information campaign aimed at driving consumers to legal retail stores and away from the illicit market. While the “Legal, Local Cannabis” campaign is still in its first weeks, I am happy to report a significant surge in traffic to DCR’s map of legal retail stores. I am hopeful that this trend continues and that legal, local businesses benefit from this campaign.
Today, I want to take some time to encourage social equity applicants and licensees to take advantage of the resources and services available through the Social Equity Program (SEP). Specifically, the program offers one-on-one business coaching appointments at no cost to those needing guidance starting their own business and those who need specific tips on how to take their existing business to the next level. The SEP also offers a Pro Bono/Low Bono Legal Services Program in partnership with the L.A. County Bar Association that provides no cost or low cost legal services to social equity entrepreneurs. I urge qualifying individuals to learn more about and take advantage of these and other services through SEP. Whatever stage your business is in, these resources will meet your business where it’s at now. Read on in the bulletin for more specifics.
Finally, this month’s DCR News Bulletin includes updates on state and local legislation that may affect or relate to the cannabis industry. There is much to catch up on and I hope the information is useful to you.
Remember to shop legal, local cannabis.
Sincerely,
Michelle Garakian
Executive Director
The time has come for Compliance Inspections! Join DCR for an online webinar detailing DCR’s Compliance inspection process.
This webinar will review:
- How your inspection will be scheduled
- An overview of what to expect on your inspection day
- An introduction to and overview of the new Self-Assessment Checklist and the Rules and Regulations pertaining to operational requirements
- What happens after you pass
- What happens if you need to correct deficiencies
- Definitions of violation types
DCR has created this Self-Assessment Checklist to prepare you before a compliance inspection. DCR strongly recommends licensees use this self-assessment checklist to identify and rectify any deficiencies prior to an inspection. This checklist is provided as a courtesy and any self assessment is optional. You are not required to complete the checklist and it does not need to be returned to DCR; it is merely for your information and preparation.
To help guide applicants through the process, you are invited to join the Compliance Inspection 101 webinar from 5:00 PM to 6:30 PM on Wednesday, August 7, 2024, from. To RSVP click here and to join the webinar, click here. You can also watch the livestream here.
Read DCR’s message in the July 15, 2024, edition of the Los Angeles Times below. Find a legal, local cannabis retail store here.
If you qualified as a Social Equity Individual Applicant (SEIA) during DCR’s verification review periods in 2022 or 2019, there are many benefits to this status. Certain license types are reserved for only SEIAs until 2025. In addition, there are various programs and services offered through the Department’s Social Equity Program (SEP).
Specifically, the Business, Licensing and Compliance Assistance Program offers access to 165 hours worth of online business development courses via the Learning Management System. The program also offers free one-on-one business coaching to entrepreneurs with experts in various business areas. You can find out more about accessing these services here.
The Pro Bono - Low Bono Legal Assistance Program is a collaborative effort between DCR and the L.A. County Bar Association. This referral service is available to ALL Social Equity Individual Applicants who have passed the Pre-Application stage. These individuals are eligible to receive up to 40 hours of legal services -- 10 hours of free Pro Bono and 30 hours of Low Bono for only $35 per hour. Find out more here.
For more information on the Social Equity Program, click here.
Assembly Bill 1059
aims to alleviate some of the tax burdens placed on the cannabis industry by ensuring taxes are based on the actual goods being sold. In some jurisdictions, local cannabis taxes or fees are being calculated after the state excise tax is applied, increasing the amount of taxes owed by business owners and making it difficult to properly calculate and remit their taxes. If passed, this bill would change what local governments can include when calculating the cannabis tax base, essentially removing a “tax on a tax.”
Specifically, this bill:
- Prohibits a city or county from including any amount of excise tax collected under the State’s Cannabis Tax Law, the Sales and Use Tax Law, or the Transactions and Use Tax Law in the definition of “gross receipts.”
- Determines that this bill's restriction on cities addresses a matter of statewide concern, and therefore will be applied to all cities in the State, including charter cities.
- Requires the state to reimburse costs to local jurisdictions if the Commission on State Mandates decides that this bill contains costs mandated by the State.
Status
This bill has been passed in the Senate, the Assembly Revenue and Taxation Committee and the Assembly Business and Professions Committee. This bill was heard in the Assembly Appropriations Committee this morning, August 7, and was placed on the suspense calendar.
Assembly Bill 2223
would allow cannabis licensees to manufacture, distribute, or sell products that contain industrial hemp, so long as the product complies with all applicable state laws and regulations, and places additional restrictions on industrial hemp products containing tetrahydrocannabinol (THC) or comparable cannabinoids.
Specifically, this bill:
- Incorporates hemp into the Medicinal and Adult Use Cannabis Regulation and Safety Act (MAUCRSA), thereby integrating hemp into the cannabis marketplace.
- Prohibits a licensed retailer or distributor from selling or distributing cannabis, a cannabis product, or an industrial hemp product that contains THC or comparable cannabinoid that’s been converted from a hemp-derived cannabinoid.
- Ensures that all intoxicating products are treated, regulated and taxed as cannabis.
- Requires cannabis licensees that manufacture, distribute, or sell products that contain industrial hemp to record all transactions and relevant data in the state track and trace system. Hemp that’s purchased by a DCC licensee must be tracked as a separate batch in order to document the disposition of hemp or hemp product.
- Requires the DCC to implement a process by which a licensee that is also a registered hemp manufacturer may use the same premises.
- Requires out-of-state hemp manufacturers who produce food or beverage products for importation into CA to register with the California Department of Public Health.
Note: The above is only a snapshot of the proposed legislation in the bill. The full text contains 36 provisions, which can be read here.
Status:
This bill has passed in the Assembly, the Senate Business, Professions and Economic Development Committee and the Senate Health Committee. The bill will next be heard on August 12 in the Senate Appropriations Committee.
There are other pending bills to know about, click here to read more.
Join the special edition of DCR’s monthly Q&A Virtual Lunch session at noon, August 28, 2024, that will focus on the License Renewal Process. Please join Assistant Executive Director Jason Killeen to get answers to your questions.
You can RSVP here and join here.
The City of Los Angeles will host a forum to connect small and diverse businesses to procurement opportunities in Sports, Entertainment and Government. The Sports & Entertainment Supplier Diversity (SESD) Forum will be held on October 10 at the Los Angeles Convention Center.
For more information, click here. To RSVP, click here. Registration closes Oct 10, 2024, 3:00 PM PDT
City Program Helps Small Businesses Work through Permitting Processes
Small retail businesses can now count on a new program as a direct result of Mayor Bass’ Executive Directive 4. The Restaurant & Small Business Express Program (RSBEP) seeks to help business owners move through the permitting and inspection processes more efficiently. It was created by a network of City departments including City Planning, Fire Department (LAFD), Bureau of Sanitation, Public Health Department, Department of Water and Power, and the Department of Building and Safety (DBS).
When you request assistance from the Restaurant & Small Business Express Program, a Case Manager will be assigned to each establishment to assist with the various stages including: 1) design; 2) permitting; 3) construction; and 4) completion.
For more information on the program, click here and here. For the application to participate, click here.
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