License Fees - Cannabis - Business & Professions - CA

Section § 26180

This section explains how the department in charge will set up fees for cannabis business applications, licenses, and renewals to cover the costs of managing cannabis laws. The fees will vary based on the specific regulatory needs tied to different types of cannabis activities. They must be reasonable and reflect the department's real regulatory expenses. The fees are also proportionate to the size of the business, ensuring fair revenue to cover administration costs. All collected fees go into a specific fund for cannabis regulation purposes.

The department shall establish a scale of application, licensing, and renewal fees, based upon the cost of enforcing this division, as follows:

(a) The department shall charge each licensee a licensure and renewal fee, as applicable. The licensure and renewal fee shall be calculated to cover the costs of administering this division. The licensure fee may vary depending upon the varying costs associated with administering the various regulatory requirements of this division as they relate to the nature and scope of the different licensure activities, including, but not limited to, the track and trace program required pursuant to Section 26067, but shall not exceed the reasonable regulatory costs to the department.

(b) The total fees assessed pursuant to this division shall be set at an amount that will fairly and proportionately generate sufficient total revenue to fully cover the total costs of administering this division.

(d) The department shall deposit all fees collected in a fee account to be established in the Cannabis Control Fund. Moneys in the fee account shall be used, upon appropriation by the Legislature, by the department for the administration of this division.

cannabis licensing fees cost of enforcement licensure fee variance

Section § 26180.5

By January 1, 2018, the Secretary of Business, Consumer Services, and Housing must work with various state departments to find a safe way to handle cash payments for cannabis-related taxes and fees.

No later than January 1, 2018, the Secretary of Business, Consumer Services, and Housing or his or her designee shall initiate work with the Legislature, the Department of Consumer Affairs, the Department of Food and Agriculture, the State Department of Public Health, and any other related departments to ensure that there is a safe and viable way to collect cash payments for taxes and fees related to the regulation of cannabis activity throughout the state.

cannabis regulation cash payments tax collection

Section § 26181

The State Water Resources Control Board, the Department of Fish and Wildlife, and other agencies can charge fees to cover the expenses of managing cannabis-related programs.

The State Water Resources Control Board, the Department of Fish and Wildlife, and other agencies may establish fees to cover the costs of their cannabis programs.

State Water Resources Control Board Department of Fish and Wildlife cannabis programs