Title
Adopt a resolution to authorize and direct 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, financed by a release of $120,000 from the Cannabis Tax assignment, BSA 001-3132, to pay fees to the California Cannabis Authority (4/5th vote required).
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Adopt a resolution to
i. Authorize and direct 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, financed by a release of $120,000 from the Cannabis Tax assignment, BSA 001-3132, to pay fees to the California Cannabis Authority (4/5th vote required).
b. Provide direction to staff as appropriate.
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 gave 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. On December 16, 2020, the Budget Committee approved the staff recommendation and directed staff to the Board of Supervisors for approval.
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 Cou...
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