The current pandemic has delayed many things across the country including major efforts in California to transform the cannabis market. However, Governor Gavin Newsom’s budget for 2021-2022 opens the door to revisit these efforts and with the hope that they will be officially set for the coming year.
The budget includes $153.8 million to consolidate cannabis licensing over to a single new department called The Department of Cannabis Control to reside within the Business, Consumer Services, and Housing Agency as of July 1, 2021. This was previously overseen by the Bureau of Cannabis Control, the Department of Food and Agriculture, and the Department of Public Health. The consolidation would involve the transfer of 598 existing positions and create 23 new ones.
Two additional programs that were introduced but not yet implemented include OCal and Cannabis Appellations. These programs were designed to expand the cannabis market commercially within California and funding has now been set to come from cannabis tax revenue.
Going forward, the Department of Food and Agriculture will manage the Cannabis Appellations program while the California Department of Public Health (CDPH) will oversee the OCal program.
Both programs were set to launch in 2020 but were delayed due to COVID. The budget does mention them starting in 2021 but no specific dates have been set yet.
Additionally, the 2021-22 budget allocates cannabis-related tax revenue to the following:
Cannabis tax revenue will also be funding the Cannabis Equity Grants Program. This program was created by the Governor’s Office of Business and Economic Development and the California Bureau of Cannabis Control on December 1, 2020. It will offer grants, low-interest loans, and additional assistance for the cannabis industry in eligible local jurisdictions.
The budget also includes allocations for non-cannabis related items such as $44 million towards childcare funding, and $12.7 million for the Natural Resources Agency to assist with a program that supports youth access to natural and cultural resources.
The budget awaits approval in May. If all is approved, it is expected to be enacted in the summer of 2021.
Need expert help keeping up with rapidly changing compliance and regulations?
Payroll Systems has partnered with financial institutions to offer our full suite of payroll and HR services to the cannabis industry, including direct deposit, electronic tax payments, and tax filing.
Contact Payroll Systems to see how you can leverage our easily scalable solutions—from paperless new employee onboarding, paperless benefit enrollment, timekeeping systems with companion mobile app, physical clocks, and customized job costing and labor distribution reporting.
We pair human skills and empathy with the latest technology to take on our clients’ HR and payroll processes.
According to the Labor Center at UC Berkeley, sixty-one percent of private sector employees in California, do not have access to an employer-sponsored retirement plan CalSavers is a program designed...
In September of 2020, California passed Senate Bill 973- which requires private employers with over 100 employees to submit an annual Pay Data Report to the Department of Fair Employment and...
Form I-9 is used to verify the identity and employment authorization of individuals hired for employment in the United States and is required by the US Citizenship and Immigration Services (USCIS) ...
The 21st century is all about self-service and self-sufficiency We have an online account with just about all of the organizations we belong to- it has even extended over to the workplace HR...
The California Division of Occupational Safety and Health (Cal/OSHA) issued Emergency Temporary Standards (ETS) regulations that require employers to exclude certain employees from the physical...
At the start of the pandemic, the CARES act and the FFCRA were introduced on a federal level as a direct response to some of the hardships people were facing due to COVID-19 Both relief bills expired...
This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business. You can also contact Payroll Systems to inquire about our HR support services.