CALIFORNIA NEWS

CALIFORNIA

Gov. Gavin Newsom Signs Bill Ending State Cultivation Tax

On June 30, with a flick of his pen, Gov. Gavin Newsom finally did away with the industry’s much-loathed cultivation tax on Cannabis sales. Prior to Newsom’s involvement, Assembly Bill 195 had already enjoyed robust bipartisan support from both houses of the state legislature, making it the rare issue on which all of California’s top lawmakers are seemingly in agreement. It also speaks to the scope of the problem. Moving forward, California’s cultivation tax – a sum totaling over $160 per pound of Cannabis flower – will be gone entirely. While the state’s excise tax rate of 15% is set to remain the same for at least the next three years, AB-195 does allow for that rate to be adjusted at the conclusion of that timeline. Other aspects of AB-195 include the creation of tax credits for eligible Cannabis businesses, lowering the number of workers a business can employ before a labor peace agreement is required, and moving the responsibility of collecting Cannabis excise taxes from distributors to retailers. Furthermore, the legislation creates a $10,000 tax credit for social equity Cannabis businesses. Arriving at a moment when the wholesale prices of Cannabis have already dropped by as much as 50%, the question now becomes: Did they act in time?

LA City Council Approves Licensed Cannabis Placard Program

Given their prevalence, it’s plausible that even the most prudent Cannabis consumers may occasionally mistake an unlicensed dispensary for one operating on the level. The problem is especially bad in Los Angeles, it appears, as L.A.’s City Council voted last month to approve a new ordinance requiring all licensed Cannabis businesses to display a placard proving they are in legal compliance with local and state laws. The mandatory placards will only be issued after a given business has successfully passed a health inspection. Expected to start appearing as soon as this fall, the placards must also be placed in a location that is clearly visible from the shop’s exterior.

CA State Fair Names First Crop of Cannabis Winners

At this year’s California State Fair, Cannabis wasn’t on the menu – but it did reach the winner’s circle. Recognizing Cannabis categories for the first time in the event’s 166-year history, the creation of the inaugural California State Cannabis Awards were announced last fall and ultimately drew submissions from over 300 licensed operators. On Thursday, June 23, ahead of the fair’s in-person festivities, organizers announced the winners of 60 awards for Cannabis flower across three divisions – indoor, outdoor and mixed light – with each division split into 10 categories focused on various cannabinoids and terpenes. Winners of the overall Best in California category included Eureka’s MOCA Humboldt, Hopland’s Esensia Gardens, and Sacramento’s North Country Pharms. Though things have not yet progressed to the point where attendees can look forward to buying product from this year’s champions while visiting the fair, the mere existence of the California State Cannabis Awards will hopefully serve to further legitimize the wonderful work of California’s Cannabis cultivators and cement their reputation as a viable, integral part of the state’s agricultural identity.

“WINNERS OF THE OVERALL BEST IN CALIFORNIA CATEGORY INCLUDED EUREKA’S MOCA HUMBOLDT, HOPLAND’S ESENSIA GARDENS, AND SACRAMENTO’S NORTH COUNTRY PHARMS.”

SF Premiere for Doc on Late Master Hashishin Frenchy Cannoli

The death of seminal hashmaker Frenchy Cannoli in 2021 at the age of 64 has left a void that his widow Kimberly, aka Madame Cannoli, now hopes to partially fill with the release of a new documentary devoted to her late husband. Revered throughout California and far beyond, Cannoli’s devotion to traditional hash-making techniques were perhaps best encapsulated in his adoration for temple ball hash. But along with his weed wizardry, Cannoli was also a vocal critic of California’s legal Cannabis industry and its failure to protect small farmers. To that end, the Jake Remington-directed “Frenchy Dreams of Hashish” will serve as both an ode on film and a call to activism. The latter comes in the form of a commitment to donate 20% of proceeds from all screenings to the small Cannabis business advocacy non-profit, the Origins Council. Additionally, Madame Cannoli has also announced the formation of the Frenchy Cannoli Foundation, which will help to facilitate efforts like the Lost Coast Farmers’ Guild’s current quest to be recognized under California’s new Cannabis appellation program. As Frenchy once said: “The way we treat that plant, the way we work with it, will define the future.”