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California cannabis advertising, water and banking

Writer's picture: Team HighroadTeam Highroad

We have three items of note for cannabis businesses in California to share with you today.


First, we have received guidance from the Bureau of Cannabis Control regarding advertising regulations for licensees and non-licensees. Regulations require cannabis advertisements to list all licenses held by any company responsible for the advertisement. This means you may need to list multiple licenses, even if that seems counter-intuitive.


Second, the California Water Boards sent out a five-day notice of impending emergency regulations that may result in raised water fees for cannabis businesses. See copy from the notice related to cannabis businesses below. This likely represents a fee increase.


Third, the SAFE Banking Act made it through the US House of Representatives. We’re excited about this step in the right direction. Even though it won’t solve interstate banking problems, it will help cannabis businesses within their home states.

If you have questions about these issues, we can help you figure out next steps for your business.



 

From the five-day notice of emergency legislation to be submitted to the CA OAL:

e) A person who registers an appropriation of water for small irrigation use pursuant

to Water Code section 1228.3, for which cannabis cultivation is an intended use and for

which no onstream reservoir will be constructed or used, shall pay to the board a nonrefundable annual fee of $750.


(f) A person who registers an appropriation of water for small irrigation use for

cannabis that involves construction or use of an onstream reservoir shall pay a nonrefundable filing fee of $4,750.


(g) A person who registers an appropriation of water for small irrigation use for

cannabis that involves construction or use of an onstream reservoir shall pay an annual

fee of $1,000 in each year after the year in which they pay the filing fee identified in

subdivision (f).14


(h) A person who registers both an appropriation of water for small irrigation use

other than for cannabis use and an appropriation of water for small irrigation use for

cannabis that use the same diversion shall receive a 50 percent discount on the fees

required pursuant to subdivisions (c) and (d).


Note: Authority cited: Sections 1058 and 1530, Water Code. Reference: Sections

1228.3, 1228.5, and 1525, Water Code.

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