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File #: BC 20-151    Name: 2020_11_19_CA Cannabis Authority
Type: Budget Committee Status: Agenda Ready
File created: 11/12/2020 In control: Budget Committee
On agenda: 12/16/2020 Final action:
Title: Receive an update on the recently adjusted California Cannabis Authority ("CCA") fee schedule for fiscal year 2020-21, and support authorizing the Auditor-Controller to amend the FY 2020-21 Adopted Budget for the Cannabis Program (001-1050-8533-CAO004) to increase appropriations by $120,000, where the financing source is the Cannabis Tax Assignment fund balance (001-3132).
Attachments: 1. Budget Committee Report
Title
Receive an update on the recently adjusted California Cannabis Authority ("CCA") fee schedule for fiscal year 2020-21, and support authorizing the Auditor-Controller to amend the FY 2020-21 Adopted Budget for the Cannabis Program (001-1050-8533-CAO004) to increase appropriations by $120,000, where the financing source is the Cannabis Tax Assignment fund balance (001-3132).
Report
RECOMMENDATION:
It is recommended that the Budget Committee:

a. Receive an update on the recently adjusted California Cannabis Authority ("CCA") fee schedule for fiscal year 2020-21;
b. Support authorizing the Auditor-Controller to amend the FY 2020-21 Adopted Budget for the Cannabis Program (001-1050-8533-CAO004) to increase appropriations by $120,000, where the financing source is the Cannabis Tax Assignment fund balance (001-3132); and
c. Provide direction to Program staff regarding CCA funding for future years.

SUMMARY
On October 30, 2020, the Cannabis Program ("Program") presented a report to the Board of Supervisors Cannabis Committee ("Committee") on the adjusted California Cannabis Authority ("CCA") fee schedule, and a recommendation to support the authorization of an augmentation request to fund the variance of approximately $120,000 to meet the anticipated CCA administrative fees for the current fiscal year. The Committee directed staff to move forward with the report to the Budget Committee and Board of Supervisors without a recommendation.

During the budget process in the spring of 2020, the Committee and the Board of Supervisors requested the Treasurer-Tax Collector ("TTC") to approach the CCA and request a modification to the fee schedule. The CCA Board subsequently voted and adopted a reduced fee structure that is tiered by volume to better allocate fees among its member counties and incentivize larger cultivation counties to join the joint powers agreement.

Despite the reduced fee structure, the County cost of the CCA will exceed the existing fiscal yea...

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