California to provide financial support to cannabis capital companies through fee waivers
SACRAMENTO, Calif .– (COMMERCIAL THREAD) – Cannabis entrepreneurs affected by the war on drugs may have their license or renewal fees waived, following the approval of emergency regulations issued by the Department of Cannabis Control (DCC). These regulations implement Senate Bill (SB) 166, promulgated on September 23, 2021, which sets out general criteria for exemptions and requires DCC to put in place a fee waiver program by January 1, 2022.
Read the approved regulations.
DCC will begin processing fee waiver requests on January 1, 2022 and plans to roll out additional guidance to licensees and applicants in the coming weeks. $ 30 million has been set aside to fund these fee waivers.
“Access to capital is the number one challenge for private equity operators, and the approval of these regulations immediately puts much needed financial support in the hands of companies, âsaid Nicole Elliott, Director of DCC. “While this is a critical first step, we recognize that there is still work to be done to refine these rules. Therefore, DCC will immediately begin to engage directly with capital operators and stakeholders to begin developing regulations for the permanent regulatory package. ”
Here’s what equity operators and local equity program leaders had to say about today’s approval of state equity fee exemption regulations:
“The equity fee waivers will allow me to create additional business opportunities in my community. The high fees are a barrier to fair participation, and I am excited about the opportunity offered by the state. – Ali Jamalian, Sunset Connect (Capital Business Owner)
“The state fee waivers provided by SB 166 to qualified applicants and licensees as well as locally verified applicants and licensees will provide much needed financial assistance to individuals and communities disproportionately affected by the prohibition of cannabis and its application seeking to enter the legal commercial cannabis industry. “- Los Angeles Department of Cannabis Regulations
“The fee waivers for stock sellers are an important and tangible expression of California’s commitment to ensuring that those who have been previously harmed by the war on drugs can participate in the sale of cannabis today. Fee waiver is an effective method of providing meaningful assistance to equity seekers as they navigate the costly process of starting a business. San Francisco is waiving the capital applicant fees for this purpose, and we are delighted and support the state’s intention to do the same. – San Francisco Cannabis Office
“The City of Oakland’s 2017 Cannabis Fairness Analysis identified access to capital as the main barrier to entry for capital applicants into the regulated market, âsaid Greg Minor, Assistant of the City of Oakland Municipal Administrator. “Waiving state licensing fees for equity claimants is a critical step in addressing disparities within the cannabis industry and supporting communities that have been disproportionately affected by cannabis-related arrests and systemic racism. “- Oakland Cannabis Office
“The regulations developed by the Department of Cannabis Control to waive state cannabis licensing fees are eagerly awaited and will have an immediate and profound impact on the ability of cannabis capital firms in California to become operational and remain operational. This is an important step in ensuring that those most affected by the war on drugs can open their businesses and operate in the regulated cannabis market. “- Sacramento Cannabis Management Office
Learn more about the equity fee waiver regulations.
The Department of Cannabis Control (DCC) authorizes and regulates the commercial activity of cannabis in California. DCC works closely with all stakeholders, including businesses and local jurisdictions, to create a sustainable legal cannabis industry and a safe and fair market. DCC develops and implements progressive cannabis policies with strong protections for public health, safety and the environment. DCC was recently formed by amalgamating the three state cannabis programs.
To learn more about the California cannabis market, licensing, or state laws, visit www.cannabis.ca.gov.