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California Lawmaker Considers Delaying Recreational Marijuana Licenses

Amid concerns that California may not be ready to issue licenses for the sale of marijuana by next year, one state lawmaker raised the possibility Thursday of the Legislature stepping in to delay taxes and permits.

At a hearing Thursday, the Senate Budget and Fiscal Review Committee heard testimony from Legislative Analyst’s Office representatives who said it is unclear whether the Trump administration will enforce federal laws that designate pot as an illegal drug, complicating California’s rollout of Proposition 64, which legalized the sale of marijuana for recreational use.

State Sen. Holly Mitchell (D-Los Angeles), chairwoman of the committee, said she was concerned about banks being unwilling to handle marijuana sales revenue because the drug is still illegal under federal law, which could require license holders to transport large amounts of cash to pay state taxes and fees.

“Does the Legislature have the authority to delay implementation of either the tax collection or the Jan. 1 due date with regard to licensing?” Mitchell asked attorneys at the hearing. “Do we have the authority to pause this process given its complexity, given the lack of clear sense of direction from the federal government at this point?” [Read more at LA Times]

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