The California Legislature has presented Assembly Bills 1741 (Cannabis: Taxation: Electronic Fund Transfer) and 3069 (Cannabis: Information, Educational, Training Events) to the Governor for signing.
The Electronic Fund Transfer: Commercial Cannabis Exemption:
The Revenue and Tax Code was amended to exempt commercial cannabis businesses from the requirement that all persons with an average estimated tax liability of $10,000 per month must transmit the amounts owed using an electronic funds transfer
Amendment Applies to: A person licensed to engage in commercial cannabis activity under the Business and Professions Code
Impact on Business: Persons engaging in commercial cannabis activity do not have to submit taxes due to the department by an electronic funds transfer until January 1, 2022.
Impact on Compliance: Commercial cannabis businesses should submit tax payments to the department in compliance with the Revenue and Tax Code.
Cannabis Informational, Educational and Training Events:
The new law allows commercial cannabis businesses to host informational, educational and training events for civic attendees that are over 21 including state and local officials and employees, employees of health care facilities and employees of private and public schools without obtaining a temporary cannabis event license. The law places restrictions on the use of the cannabis products during the event including a prohibition on consumption.
Law Applies to: Licensed Retailers, Cultivators and Manufacturers
Impact on Business: The new law provides retailers, cultivators and manufactures with a means of hosting events to educate and train individuals who interact with customers in numerous capacities. This will provide a beneficial forum for answering questions related to product safety and responsible consumption. The law also permits the co-hosting of events with state and local agencies.
Impact on Compliance: Commercial cannabis businesses create processes and procedures for ensuring compliance with the restrictions when hosting an event including:
preventing the sale or consumption of cannabis product that is displayed during the event;
entering the displayed cannabis product into track an trace appropriately;
preventing onsite consumption, sale or the provision of free samples
Using a licensed distributor to deliver the cannabis product to the event