California Legislature Adopts Cannabis Trailer Bill, AB-195

June 30, 2022

By Lauren Mendelsohn

 

Yesterday, the California legislature adopted Assembly Bill 195, a budget “trailer bill” specifically regarding cannabis-related items. The bill is now headed to Governor Newsom’s desk, where he is expected to sign it into law.

AB-195 makes a number of changes to cannabis policy, in particular discontinuing the cannabis cultivation tax as of 1/1/23; moving the collection point for the cannabis excise tax from the distributor to the retailer; and  allowing the excise tax to increase to up to 19% beginning in 2025 to make up for losses from the discontinuation of the cultivation tax. The bill also lowers the number of employees needed before a licensee must provide a labor peace agreement from 20 to 10; provides financial incentives for certain retail licensees and equity operators; and makes some changes related to criminal and civil penalties.

The bill would take place immediately if approved by the Governor.

This is a developing story; stay tuned for more details.

 

This  information is provided as a public educational service and is not intended, nor  should be construed, as legal advice. For specific legal questions regarding California’s cannabis laws and regulations, contact the Law Offices of Omar Figueroa at 707-829-0215 or info@omarfigueroa.com to  schedule a confidential legal consultation.