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The Sacramento Chapter of the California Cannabis Industry Association CCIA hosted the Sacramento Cannabis Business Mixer in Sacramento California.

CCIA Insights

On Monday, October 2, 2017, the Sacramento Chapter of the California Cannabis Industry Association (“CCIA”) partnered with Kennaday Leavitt Owensby to host the inaugural Sacramento Cannabis Business Mixer for cultivators, dispensaries, alternative therapists, insurance providers, CPA firms, lawyers, and doctors providing services within the cannabis industry.

Joe Devlin, the chief of policy and enforcement for cannabis for the City of Sacramento, spoke about developing regulations and application processes for Sacramento. He acknowledged January 1, 2018, as the first day recreational cannabis is legal in California, and mentioned the availability of temporary licenses to protect a cannabis business between the January 1 date and the issue date of individual permanent licenses.

Benjamin Bradley, the operations director of the CCIA, spoke about legislation for all of California, and what to expect for 2018. He mentioned the Rohrabacher-Farr Amendment of 2017, which prevents the Department of Justice from using funds to interfere with state or territory law regarding medical cannabis in 44 states and two territories.

The original Rohrabacher-Farr Amendment was introduced in 2003 and passed in 2014. It was then updated in 2015 and, more recently, in May 2017, which temporarily extended the expiration date to December 8, 2017. With the current expiration date less than two months away, industry professionals are moderately concerned, but are encouraged by the precedent of extensions and are expecting another extension before the amendment expires.

Additionally, BDS Analytics provided industry statistics in the form of a trivia contest, and included several interesting projections, including a sustained compound annual growth rate of 27% in state-legal cannabis markets through 2021. Several “fun facts” included the most popular ingestion method is gummies in California, and that 27% of the North American legal market is directly due to California.

The California cannabis climate is still maturing, and Sacramento, as the capitol, has been the center for new developments. The CCIA is a resource on the changing social, economic, and legal environments.

John Barrett is a Director in the Forensic, Litigation and Valuation Services Group providing consulting and forensic accounting services specializing in professional standards applicable to CPAs and commercial litigation matters.

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