Cannabis State Payment Collection Law Introduced
February 23, 2017
SB 148 (Wiener), also known as the Cannabis State Payment Collection Law, would authorize a county or the State Board of Equalization to collect cash payments from cannabis-related businesses for a state agency that administers any fee, fine, penalty, or other charge. The bill requires a county to collect only if both the board of supervisors and the county tax collector (or treasurer-tax collector) approve of entering into an agreement with a state agency to make the collections. In cases where the county is collecting on behalf of a state agency, the bill would continuously appropriate to the county an amount needed for the costs of collection, not to exceed 10 percent. Finally, the bill allows a state agency to impose a cash collection fee reasonably necessary to recover the collection costs incurred.
CSAC supports SB 148. The implementation of cannabis policy is challenging, and the impact of cash payments is large and presents significant challenges to local governments and businesses alike. SB 148 attempts to mitigate and streamline some of the issues associated with handling large amounts of cash. SB 148 is currently awaiting a hearing in the Senate Governance and Finance Committee.