California: Notice Regarding State Stay-At-Home Order Issued December 3, 2020

CALIFORNIA:  On Thursday, December 3, 2020, Governor Gavin Newsom issued a new Stay-at-Home Order to protect the health and well-being of all Californians and to continue facilitating a consistent approach across the state to slow the spread of COVID-19. This order goes into effect at 12:59 p.m. on December 5 and will be applied on a regional basis. If a region falls below the 15% ICU threshold, it will have 24 hours to implement the Stay-at-Home Order. The order will remain in effect for at least three weeks. Learn more about this order.

 

The order continues to identify certain services as essential and these services can continue operations while the Stay-at-Home Order is in effect. Cannabis businesses remain essential businesses under the order. To ensure public and employee safety, the order limits the number of people on a cannabis retail premises to 20% of the capacity of the retail location. Cannabis licensees can otherwise continue to operate in the same manner they are now, including activities allowed by approved disaster-relief requests, provided their operations comply with state and local rules and regulations. To determine if your region is subject to the stay-at-home order, please visit: COVID19.CA.GOV.

Any licensee that continues to operate must adopt social-distancing and anti-congregating measures, and must follow the CDC’s Interim Guidance for Businesses and Employers to Plan and Respond to Coronavirus Disease at all times.

The Governor recently announced  programs to provide financial assistance to certain small businesses. This includes immediate tax relief from the California Department of Tax and Fee Administration (CDTFA) in the form of automatic filing extensions, interest-free payment plans, or a hiring tax credit of up to $100,000 to offset income or sales and use taxes. Information about these programs can be found at CDTFA’s COVID-19 web page. You can also learn more about the Small Business COVID-19 Relief Grant, including availability and eligibility, by signing up for updates from the California Office of the Small Business Advocate. Below are resources for employers, employees, and public safety:

New Emergency Regulation For Cannabis Distributors And Retailers Requires California Cannabis Track-and-Trace

CALIFORNIA: The California Department of Tax and Fee Administration (CDTFA) recently adopted emergency Regulation 3702, California Cannabis Track-and-Trace, which requires distributors and retailers to enter the wholesale cost and the retail selling price of cannabis or cannabis products into the California Cannabis Track-and-Trace (CCTT) system. The emergency Regulation 3702 is now in effect.

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The Medicinal and Adult-Use Cannabis Regulations and Safety Act and regulations adopted by the Bureau of Cannabis Control (BCC) require all commercial cannabis activity be recorded in the CCTT system. Distributors and retailers that obtain an annual license with the BCC must begin recording commercial cannabis activity in the CCTT system. In addition to the existing requirements, each licensee must now enter the following information related to the cannabis excise tax.

Cannabis Distributors

A distributor is required to enter into the CCTT system the retailer’s wholesale cost of the cannabis or cannabis products that is sold or transferred to a  retailer in an arm’s length transaction.

In an arm’s length transaction, the distributor is required to calculate the average market price of the cannabis or cannabis products, which is the retailer’s wholesale cost plus a mark-up established by the CDTFA. The wholesale cost used to calculate the average market price is the amount entered into the CCTT system.

Cannabis Retailers

A cannabis retailer is required to enter into the CCTT system:

  • The wholesale cost of the cannabis or cannabis products. The wholesale cost is the amount paid by the retailer for
    the cannabis or cannabis products in an arm’s length transaction and is the amount used to calculate the average
    market price.
  • The retail selling price of the cannabis or cannabis products when the product is sold at retail.