Posts in bureau of cannabis contro
California Looking to Crack Down on Illegal Commercial Cannabis Activity
California Looking to Crack Down on Illegal Commercial Cannabis Activity

In California, black market cannabis is over a billion-dollar industry with lines blending between the legal and illegal market. Currently, the law states that any person caught engaging in unlicensed commercial cannabis activity may be fined three times the amount of the California state licensing fee or is determined by the business’ revenue. Blanca Rubio, a California Assemblywoman (D-Baldwin Park), looks to introduce new legislation that would increase the fines to $30,000 for each offense of those caught “aiding and abetting” illicit commercial cannabis activity.

“California’s illicit cannabis industry accounts for nearly 75 percent of all cannabis sales in the state, enticing often unknowing consumers with seemingly harmless products at lower prices, but the danger lurks beneath the surface,” she said. “I introduced (Assembly Bill) 2122 to help the state hold illegal operators accountable and protect California consumers from the serious health risks found in the untested and unregulated products from the illicit market.”

-Rubio (D-Baldwin Park)

As we know, unlicensed cannabis products are not subject to state testing standards, leading to potentially dangerous products being sold. Assembly Bill 2122 would crack down on businesses that support unlicensed cannabis operators.

California has had its fair share of cannabis seizures and raids on illegal commercial cannabis activities in Los Angeles and the entire state. The bureau is seeking to make it mandatory for cannabis retailers to display a QR code that provides consumers with licensing information.

“AB 2122 would put another tool in our enforcement toolbelt that we can use to limit access to the untested, untraceable, untaxed and often dangerous products flowing through illicit stores every single day,” said UCBA President Jerred Kiloh in a statement. “The size and scope of the illicit market is the number one issue facing California cannabis, posing not only an existential threat to the industry itself, but also putting the health and wellbeing of Californians at risk, it simply cannot be ignored – we look forward to supporting the assembly member in advancing this critical solution.”

Rubio’s bill drew support from industry group, the United Cannabis Business Association.

For Cannabis Business Licensing help, call at . We help cannabis business owners navigate the complex world of State and Local Cannabis Regulations while helping to develop and grow your business in the right direction. CAP can assist with projects large or small. Whether you’re looking for full-service state and local cannabis licensing or other services such as Cannabis Pro Forma, Cannabis Business Plan, Cannabis Business SOP, and Cannabis Investor Presentation development, we have you covered.

Cannabis Tax Strategy | 2020
Cannabis Tax Strategy | 2020
cannabis tax strategy.png

For Cannabis Tax Strategy help, call at . We help cannabis business owners navigate the complex world of State and Local Cannabis Regulations while helping to develop and grow your business in the right direction. CAP can assist with projects large or small. Whether you’re looking for full-service state and local cannabis licensing or other services such as Cannabis Pro Forma, Cannabis Business Plan, Cannabis Business SOP, and Cannabis Tax Strategy development, we have you covered.

Sales, Use, and Cannabis Taxes

The California Department of Tax and Fee Administration (CDTFA) is the state agency responsible for collecting cannabis taxes and issuing seller’s permits. If you own a business in California that sells cannabis and/or cannabis products, you must register with CDTFA for a seller’s permit and regularly file sales and use tax returns. For information about the requirements that apply to your business, please review the links listed below.

  • Legislative Analyst’s Office – Adjusting California’s Cannabis Taxes

  • Tax Guide for Cannabis Businesses

  • Cannabis Special Notice – Important Cannabis Excise Tax Reminders for Cannabis Retailers and Distributors

  • New Emergency Regulation for Cannabis Distributors and Retailers Requires California Cannabis Track-and-Trace

  • Important Information for Cannabis Distributors

  • Guidance on How Taxes Apply to Cannabis Inventory Beginning January 1, 2018

  • Notice of Proposed Emergency Regulation

  • New Proposed Cultivation Tax Category, Tax Application, and Invoicing Requirements for Cannabis Businesses

  • Cannabis – What you Need to Know about the Tax Rates and Registration

  • New Cannabis Taxes Begin January 1, 2018

Income Tax

California taxes its residents on all income, including income from cannabis business activities. California taxes non-residents on income from California sources. All income apportioned to California by business entities is taxable. Income from entities organized as not-for-profit is also taxable. For information about California income tax for cannabis business activities, visit Franchise Tax Board’s website at

  • Cannabis Business Income Tax

  • Cannabis Business Ownership Tax Information Guide

Payroll Taxes

California businesses that hire employees to perform services are required by law to withhold, report, and pay payroll taxes. For information about cannabis industry payroll tax and reporting, visit the Employment Development Department’s website at

  • Cannabis Industry Payroll Tax Reporting

cannabis tax, cannabis excise tax, cannabis tax strategy, tax strategy, 1080e, tax season, cannabis advising partner, cannabis business, local cannabis tax, state cannabis tax, cannabis news, cdtfa, cannabis tax rates, cannabis industry, cannabis community, cannabis income tax, cannabis payroll tax, adult use cannabis, bcc, bureau of cannabis contro, business application, business licensing, ca cannabis regulations, california business, california cannabis, california cannabis tax, cannabis, cannabis application, cannabis business license, cannabis business plan, cannabis business sop, cannabis business tax, cannabis compliance, cannabis consulting, cannabis cultivation, cannabis delivery, cannabis dispensary, cannabis distribution, cannabis distributors, cannabis history, cannabis industry growth, cannabis investor, cannabis law, cannabis legalization, cannabis legislation, cannabis license, cannabis licensing, cannabis manufacturing, cannabis microbusiness, cannabis pro forma, cannabis regulation, cannabis regulations, cannabis retail, consulting services, commercial cannabis, federal cannabis laws, federal marijuana laws, legalization, marijuana news, marijuana law, new cannabis law, news, recreational cannabis, state and federal taxes, weed news, weed politics, weed tax, weed dispensaryIzzy Guarrasicannabis tax strategy, cannabis, tax strategy, tax season, cannabis advising partners, cannabis business, state cannabis laws, state and local cannabis regulations, local cannabis law, cannabis news, cannabis pro forma, cannabis business permit, cannabis business plan, cannabis business sop, cannabis tax, california cannabis tax, the california department of tax and fee administration, cdtfa, cannabis taxes, cannabis legislation, tax guide, cannabis excise tax, cannabis retail storefront, cannabis distributors, cannabis regulations, cannabis dispensary, cannabis inventory, cannabis inventory management, cannabis tax rates, cannabis business entity, franchise tax board, income tax, payroll tax, employment development department, cannabis industry, 1080e
Cannabis Legislation Timeline
Cannabis Legislation Timeline
cannabis legislation timeline cannabis advising partners.jpg

The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), which was signed into law in June 2017, creates the general framework for the regulation of commercial medicinal and adult-use cannabis in California. The text of MAUCRSA is available on the California Legislative Information website.

MAUCRSA also established a dual licensing structure in which both the state and local governments participate in setting guidelines and public health standards for the industry. The state sets minimum requirements that all licensees must follow, and local governments are able to set additional requirements.

Cannabis Legislation Timeline

2017 – The California State Legislature passed a budget trailer bill, Senate Bill 94, that integrated MCRSA with AUMA to create the Medicinal and Adult‐Use Cannabis Regulation and Safety Act (MAUCRSA). Under MAUCRSA, a single regulatory system governs the medicinal and adult-use cannabis industry in California.

  • Senate Bill 94

  • Assembly Bill 133

2016 – California voters passed Proposition 64, the Adult Use of Marijuana Act (AUMA). Under Proposition 64, adults 21 years of age or older can legally grow, possess, and use cannabis for non-medicinal purposes, with certain restrictions. Additionally, AUMA also made it legal to sell and distribute cannabis through a regulated business as of January 1, 2018.

  • Proposition 64 

  • Proposition 64 Official Title and Summary

2015 – The legislature passed the Medical Cannabis Regulation and Safety Act (MCRSA), a series of three bills that created a state licensing and regulatory system for the existing medical market. MCRSA also established the state’s three cannabis licensing authorities – (Bureau of Cannabis Control, CalCannabis Cultivation Licensing, and Manufactured Cannabis Safety Branch). These bills were repealed when MAUCRSA was passed in 2017.

  • Assembly Bill 266

  • Assembly Bill 243

  • Senate Bill 643

1996 – California voters passed Proposition 215, the Compassionate Use Act (CUA) – the first voter-approved state ballot initiative for medical marijuana in the United States. CUA allowed qualified patients and approved caregivers to possess and cultivate medical cannabis and ultimately led to the formation of collectives and cooperatives to serve medical patients throughout the state.

  • Proposition 215

  • Senate Bill 420

Los Angeles Cannabis Disaster
Los Angeles Cannabis Disaster

Los Angeles, California has been the epicenter of corruption and disasters in the cannabis industry. The Department of Cannabis Regulations was created with poor executive hire while being severely underfunded. With the DCR seeming to do the right thing, Social Equity backfired and did the opposite of what was intended. The list of failures continues with it taking over a year for Business Tax Registration Certificate Holders to obtain licenses. The social equity program provides little resources and made the applicants pay and lock in property, in which case they have no money to do so. Therefore, they had to team up with investors. Some applicants were tied with political officials corrupting the system by accessing the application portal early. During this entire process, the DCR and city attorney lacked enforcement of the cannabis regulations in the City of Los Angeles.

Governor Newsom Looks to Bridge the Gap Between Cannabis License Owners and Local Government
Governor Newsom Looks to Bridge the Gap Between Cannabis License Owners and Local Government
Screen Shot 2020-01-14 at 3.23.02 PM.png

Governor of California, Gavin Newsom wants to combine multiple state agencies into one department to simplify the cannabis licensing processes and have oversight of all commercial cannabis activity. This new department which Governor Newsom calls the “Department of Cannabis Control,” will act as a centralized force as opposed to the current three which are the Bureau of Cannabis Control, Manufactured Cannabis Safety Branch, and CalCannabis. Newsom works to bridge the gap between cannabis license holders and local governments.

METRC Update Effective January 15th, 2020
METRC Update Effective January 15th, 2020

To All Interested Parties,

Metrc has recently published an industry bulletin to all Metrc user accounts regarding the retirement of external transfers.

Effective January 15, 2020, external transfers can no longer be used in California to ship or receive cannabis and cannabis products. Licensees should refer to the Metrc bulletin for details on how this impacts transfers within the Metrc system, and the action required before January 15, 2020.

To retrieve the industry bulletin from Metrc, please log into your Metrc account and click on the envelope in the upper left-hand side.

Please feel free to contact support at  or 877-566-6506 with any questions you may have. Thank you.  

Information Regarding Posting of QR Codes by Commercial Cannabis Retail Licensees
Information Regarding Posting of QR Codes by Commercial Cannabis Retail Licensees
Screen Shot 2020-01-02 at 10.13.47 AM.png

The Bureau of Cannabis Control (Bureau) is encouraging retailers open to the public to post a QR Code certificate that consumers may scan with their smartphone camera when visiting a commercial cannabis storefront retailer to confirm licensure. Participation in this effort by retail licensees will assist consumers in purchasing legal cannabis goods. Licensees are also encouraged to educate their customers on how to use the QR Code and the importance of shopping at a licensed retailer. The Bureau is providing licensees with an enlarged version of their individual QR Code (QR Code certificate). Storefront cannabis retailers are encouraged to assist the public by prominently displaying their QR Code certificate on the licensed premises in the following manner:

• The QR Code certificate should be visible and scannable from outside the premises.

• The QR Code certificate should be printed on paper not less than 8 ½” by 11”.

• The QR Code itself should not be less than 3.75” by 3.75”.

• The QR Code should be posted in the front window of the licensed premises or in a locked display case mounted on the outside wall of the licensed premises within three (3) feet of any public entrance to the licensed facility.

• The QR Code should be posted in a manner that is clearly visible from outside of the licensed premises by all persons entering the premises and shall be of sufficient clarity that the code can be read by a smartphone or device capable of reading QR Codes from a distance of at least three (3) feet.

Consumers can confirm that the retail location is properly licensed by using a phone camera or QR Code app to scan the QR Code certificate. Once scanned, the consumer will automatically link to a URL that confirms the cannabis retailer’s license status. The website will display the address and business license of the location to ensure that the retailer at that location is licensed. By providing commercial cannabis consumers with an easy method for verifying licensure status, the Bureau and its licensees can work together to reduce the potential risks that may come from the purchase of non-compliant cannabis goods from unlicensed retailers.

Click the video below: