Prepare for License Renewals
Every year, like clockwork, licensees must renew and pay annual license fees. Here are the steps you can take now to feel calm and in control of your renewal.
Step 1: Look up your license expiration date (and add it to your calendar as a repeating yearly event). Subtract 60 days to find out when you can begin your license renewal process, which you should complete before the expiration date.
Step 2: Budget for renewal fees. These vary by agency and by revenue/size.
In general, BCC and CDPH fees vary by revenue (the higher the revenue, the higher the license fee). CDFA fees vary by size and type of grow (the bigger the grow and the more artificial light used, the higher the fee). A good starting point is to look up what you paid last year; then review the fee schedule to determine whether that is what you will owe this year. Cultivators whose license type stayed the same should expect to pay the same amount as in 2020.
Step 3: Complete tax filings with your CPA now. Gross revenue and tax documentation are required for renewals.
Step 4: Review and update your SOPs and premises/property diagram(s).
Step 5: Renew your surety bond and file the documentation.
Step 6: Review business owner and financial interest holder (FIH) information from 2020. Has anything changed that you must report?
Alert! Make sure you have disclosed every current owner (with completed live scan) and every current FIH. The agencies are auditing ownership and may issue fines for non-compliance.
Note: This was a general list to get you started. Your license type and/or circumstances may require additional steps or documentation. Reach out to us for personalized guidance.
The CEQA Saga Continues
The California Environmental Quality Act (CEQA, pronounced see-KWAH), as it pertains to cannabis licensing, is extremely confusing and varies by jurisdiction. To protect your sanity, we won’t chronicle the CEQA situation for every city/county. We will simply offer a question for you to answer.
Have you completed the CEQA process and received a final local permit?
Yes → Transition your provisional license to an annual.
No → Take an inventory of where your project stands in terms of CEQA and what steps remain to complete the process.
Our office can help.
Note: Provisional licenses (which essentially give licensees more time to comply with CEQA) sunset at the end of 2021. CEQA is a long and expensive process; many licensees are years away from complying with the Act. SB 59, introduced in December, would extend the time period by several years. If it does not pass, many may find themselves without a license while CEQA is sorted out locally. If SB 59 does pass, local governments and licensees can breathe a sigh of relief and continue to slowly work through the requirements at a pace commensurate with the complexity of the law and its implementation. We suggest you reach out to your CA Senator to urge them to pass this bill ASAP, even if you are fortunate enough to have completed CEQA.
Principal Nicole Howell is teaching the Law and Policy section of the Cannabaceae Studies classes on offer at College of the Siskiyous this spring.
Learn the history and so much more at our two-day Cannabacea Studies Virtual Conference. During the conference participants will have the chance to complete four, two-hour Community Education
Cannabacea Studies classes: Science of the Cannabacea Family; Federal vs. State Law; Politics and History; and Industrial Hemp
Essentials (From Planting, Harvesting, and Processing to Marketing Your Hemp).
Register for each class individually ($15/class) or for the bundle ($50/four classes) and save $10. Pay by credit card, or if you are purchasing with cash or check, choose ‘pay by check or cash’ in the lower right corner of the Review / Complete Purchase screen. Click Check or Cash and contact the Yreka office (530) 938-5833 to submit your payment.
From Boutiques to Big Law – Navigating the changing legal landscape of the cannabis industry.
May 4th-6th – Online
Featuring a diverse range of perspectives from boutiques to big law, in-house counsel, and subject matter experts from across the cannabis industry the Cannalaw Summit (May 4th-6th – online) will bring the legal profession and the cannabis supply chain together to provide critical insight into current and future laws and regulations, address key individual cannabis practice challenges, and examine core considerations for firms looking to start, or strategically grow their cannabis practices.
Join Clark Howell Partners, Ariel Clark and Nicole Howell, as they lead crucial panel discussions on Righting the Wrongs: Addressing Diversity, Equity & Inclusion in Cannabis Law and Psychedelics: Removing Barriers to Access through Legalization & Litigation.
Use discount code CLS2021ACCH.
If you have any questions about how the above or would like to discuss how it could impact your business, please contact your attorney directly or call our main line at 877-257-2442.