Debating hundreds of bills, Sacramento just concluded California’s legislative session. Among the bills approved were changes to provisional licensing for temporary license holders, allowing businesses to continue operations beyond December 31, 2018 while securing their permanent licensure. Cannabis businesses also gained clarity on deductions they are able to take on state taxes.
Among things not approved was a state wide banking system for cannabis businesses, which would have alleviated major banking concerns for the industry. Reducing the state cannabis excise tax by 4% was also dropped from the docket.
As regulation moves forward, so must businesses adapt to the ever changing regulations and standards surrounding the industry. Compliance will be key for businesses to remain in good standing within the industry. Costly fines and fees associated with penalization could put rogue businesses out of commission.