Major Changes Coming to CA Cannabis Market Under Gov. Newsom’s Budget

Friends,

California Governor Newsom announced his proposed budget for the
coming year, which included some important developments for the cannabis
industry.

1.      The Governor has proposed consolidating the
three cannabis licensing agencies into one new agency under a new Department of
Cannabis Control by 2021. This will lead to significant regulatory
simplification of the licensing process and other issues for the industry.

2.      The Governor’s plan will alter the way cannabis
taxes are collected in an effort to simplify the process: moving the
responsibility for the cultivation excise tax from the final distributor to the
first distributor, and for the retail excise tax from the distributor to the
retailer.

McAllister Garfield remains actively involved in the California
cannabis industry, representing a mix of legacy operators and new entrants into
the industry. The Firm presents a compelling value proposition in the
California market, combining deep experience with both regulatory compliance
issues with deep experience in corporate law.

If you have questions about the California market, contact me for
more information.

Sincerely,

Sean T. McAllister