Ron Strider
Well-Known Member
As all cannabis-related California businesses – from the growers to the distributors – make the jump from the black market to the free market in the coming year, they will need to officially register their entity with the Secretary of State's office.
When new state regulations allowing consumers to buy recreational marijuana go in place Jan. 1, industry experts estimate that tens of thousands of informal cannabis-related businesses will have to transition into the regulated market. On Monday, the Secretary of State announced a digital tool to help streamline that process: Cannabizfile, a new online portal where entrepreneurs can officially register their business with the state.
Marijuana businesses in California exist on a spectrum from incorporated, tax-paying, locally licensed operators – all the way to fly-by-night delivery services that have black market roots and are medical in name alone. Once the state issues the first licenses after Jan. 1, California's vast mix of informal medical marijuana collectives have 18 months to conform to the new business rules.
"We are making sure we are as prepared as possible for new applications," Secretary of State Alex Padilla said in an interview. "It's more efficient for the entrepreneur, and it's more efficient on our end."
After the new regulations go in place, the University of California Agricultural Issues Center projects that about half the demand that is currently in the illegal adult-use industry will shift over to the legal entities.
This will "avoid the inconvenience, stigma, and legal risks of buying from an unlicensed seller," according to the study, which was reported by the Los Angeles Times in June.
Zeta Ceti, founder and CEO of Green Rush Consulting, said the new online portal will make it much easier for his cannabis consulting company to help its clients obtain permits and licenses.
"Otherwise you would need to turn in (the application) in person, or mail it in," he said. "It makes it a lot easier for us, and on the back end for those folks as well."
Still, about 29 percent of cannabis consumers will initially stay in the illegal market to avoid the cost of adhering to new regulations, such as increased taxes, the study said.
When Nat Buttrick, CEO of cannabis farmer collective Madrone, officially registers with the state, he said he will have to deal with increased costs and operating hurdles.
"Compliance is costly," he said. "This is a culture that turned into an industry almost over night, and the culture is not used to dealing with (regulators)."
But, he said, he is left with little choice.
"Once you go for a state license, then you can only work with another state license holder," he said. "And the majority of the dispensaries we work with are getting a license."
News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: State offers new tool to help cannabis businesses go legit - San Francisco Chronicle
Author: Trisha Thadani
Contact: Customer Service - San Francisco Chronicle
Photo Credit: John Burgess
Website: San Francisco Chronicle - Bay Area news, sports, tech, food - San Francisco Chronicle
When new state regulations allowing consumers to buy recreational marijuana go in place Jan. 1, industry experts estimate that tens of thousands of informal cannabis-related businesses will have to transition into the regulated market. On Monday, the Secretary of State announced a digital tool to help streamline that process: Cannabizfile, a new online portal where entrepreneurs can officially register their business with the state.
Marijuana businesses in California exist on a spectrum from incorporated, tax-paying, locally licensed operators – all the way to fly-by-night delivery services that have black market roots and are medical in name alone. Once the state issues the first licenses after Jan. 1, California's vast mix of informal medical marijuana collectives have 18 months to conform to the new business rules.
"We are making sure we are as prepared as possible for new applications," Secretary of State Alex Padilla said in an interview. "It's more efficient for the entrepreneur, and it's more efficient on our end."
After the new regulations go in place, the University of California Agricultural Issues Center projects that about half the demand that is currently in the illegal adult-use industry will shift over to the legal entities.
This will "avoid the inconvenience, stigma, and legal risks of buying from an unlicensed seller," according to the study, which was reported by the Los Angeles Times in June.
Zeta Ceti, founder and CEO of Green Rush Consulting, said the new online portal will make it much easier for his cannabis consulting company to help its clients obtain permits and licenses.
"Otherwise you would need to turn in (the application) in person, or mail it in," he said. "It makes it a lot easier for us, and on the back end for those folks as well."
Still, about 29 percent of cannabis consumers will initially stay in the illegal market to avoid the cost of adhering to new regulations, such as increased taxes, the study said.
When Nat Buttrick, CEO of cannabis farmer collective Madrone, officially registers with the state, he said he will have to deal with increased costs and operating hurdles.
"Compliance is costly," he said. "This is a culture that turned into an industry almost over night, and the culture is not used to dealing with (regulators)."
But, he said, he is left with little choice.
"Once you go for a state license, then you can only work with another state license holder," he said. "And the majority of the dispensaries we work with are getting a license."
News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: State offers new tool to help cannabis businesses go legit - San Francisco Chronicle
Author: Trisha Thadani
Contact: Customer Service - San Francisco Chronicle
Photo Credit: John Burgess
Website: San Francisco Chronicle - Bay Area news, sports, tech, food - San Francisco Chronicle
