The California Department of Cannabis Control (DCC) is the state department in charge of licensing and regulating cannabis businesses. DCC regulates cannabis plant cultivation, cannabis product manufacturing, cannabis product transit and monitoring across the state, cannabis product sale, cannabis events, and retail labeling.
According to Nate Bradley, executive director of the Cannabis Consumer Policy Council (CCPC), “When California voters approved Proposition 64 in 2016, they did so based on the idea that a legal cannabis market would be a thriving cannabis market. Our goal was to create a California cannabis industry that was poised to be a national model.” he goes on to say, “And, if the right moves were made at the federal level and marijuana were to be legalized, California cannabis would be as sought after worldwide as California wine.”
Though the DCC may appear to have the best intentions at heart for the cannabis industry, such is not the current reality, as outlined by Bradley; “Fast-forward to today, and California’s legal market is teetering on the brink of disaster, hindered by a thriving illicit market, high taxes and burdensome regulations.”
Ball Still Firmly In DCC Court
California has a long way to go before it can be considered a regulated cannabis market. There are many issues with the state’s regulations, and these issues have been holding back legal businesses from operating effectively. The California Department of Cannabis Control (DCC) needs to make some changes in order for businesses to be profitable and continue growing in the state.
The black market is thriving because of the high taxes and licensing fees. It’s too expensive to pay for a license in California. Another aspect to consider is the complicated regulations and long wait times. Medical marijuana regulations are so complicated they even caused people who wanted to work in the industry to stop trying, as it seemed like they would never get their licenses.
The federal government also has to step in to provide more protection. The state won’t protect you or your business against raids by federal agents unless you have cannabis products that are produced under a state approved license, so if your business only sells products on paper with no physical proof then, there’s nothing stopping them from raiding your business whenever they wish.
These are just a few factors the DCC can influence to positively impact California cannabis business owners.
Owners hoping DCC Takes The Higher Ground
Taxes and licensing fees are different. Taxes are the same for all businesses in a given industry, while licensing fees differ depending on the type of business you’re running. The California Department of Tax and Fee Administration (CDTFA) oversees taxes and collects them from businesses that sell cannabis or related products.
Licensing fees are charged by many agencies at different rates depending on what type of entity you’re registering as; those costs vary widely across industries like agriculture or construction materials manufacturing for example.
The process for issuing state licenses is lengthy, expensive, and convoluted. The application process is not transparent, so it’s difficult to know what you need to do or what the requirements are. This lack of transparency makes the whole process seem unfair.
In addition, DCC should also block interference from the federal government to prevent interference with California’s cannabis industry. That means not only removing cannabis from the list of controlled substances, but also ensuring national cannabis policy does not interfere with state laws, regulations, and licensing.
We must review the mandate of the DCC, make a wish list of concerns to be addressed, and at this point, we should probably cross our fingers too. The track record has not been pretty and while things may seem dire, there is still reason to keep the spark of hope alive.
California’s cannabis industry is at a crossroads. As the state moves into its fourth year of legal adult-use sales, policymakers have an opportunity to take a step back and reevaluate how they can support this rapidly growing sector. Some of the best ideas for reform come from those who have been most affected by the current system: entrepreneurs and consumers alike.
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