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The cannabis industry and ‘labor peace’

cannabusiness retail seller license

Cannabis has emerged from the shadows from the archaic Reefer Madness propaganda of the past years to be an essential and legitimate multi-billion dollar industry.

Moving from an underground market to a complete, over-the-counter enterprise has been a hard-fought battle for leaders in the field. It was also expensive in terms of businesses not being able to navigate the rules or survive local bans and obstacles put in their ways. Small transactions between friends and family members have given way to more formal business arrangements.

Labor Resource Management (LRM), based in Sonoma County, California has been at the forefront of the movement. Dan Rush, LRM Senior Employment Consultant, explains Dan Rush, “LRM leads the way in the themes of Work Peace, Compliance, Training, Certification, Dignity and a guided program for apprenticeships in ‘Cannabis Industry’.

The September conference came out through numbers

The group will host a free event, Sept. 23 in Santa Rosa, to highlight the complex relationships in the industry.

  • California Assembly Act 141 was passed by Governor Newsom on July 12, 2021. AB 141 established the Department of Cannabis Control (DCC). Prior to the implementation of the past bill, there were three different monitoring programs, explained on the website of the Department of Cannabis Control, such as:
  • Bureau of Cannabis Control, in the Department of Consumer Affairs
  • Manufactured Cannabis Safety Branch, in the Department of Public Health
  • Cal Licensing Cultivation Licensing, in the Department of Food and Agriculture The transformation of a complete regulatory, inspection and licensing system into a type of shop combining the resources of the three state-sponsored programs is beneficial to the Cannabis operators in all 58 California counties. Potentially lowering exorbitant permit fees and extended approval waiting times are key goals.

Rush says, “We hope the state can redefine its tax levels, and we hope this will reduce the cost of doing business,” which is vital because the profit margin in the cannabis industry is low when you consider the associated rights, permits, materials, equipment, locations, distribution, branding, marketing and personnel in the equation.

Switch from temporary licenses to permanent licenses

The Department of Cannabis Control essentially, “will facilitate licensing activities and relocate more than 8,000 marijuana companies, representing about 83 percent of the state’s cannabis companies, from temporary permits to permanent permits. “, according to Cannabis Broadcast Station.

It solidifies the fact that the industry is a viable tax revenue stream for the government and offers a valuable ROI for investors. Equally, employers and employees who earn a living in the Cannabis industry also benefit. Proposition 215 in California, known as the Marijuana Medical Initiative, was approved by voters in 1996.

The Control, Regulation and Taxation Act for Senior Adult Marijuana of 2016 (AUMA) ushered in the era of legal recreational sale and consumption. Gone were the days of paranoia and persecution for having the audacity to smoke weed. The Medical and Adult Cannabis Regulation and Safety Act (MAUCRSA) was signed into law in California on June 27, 2017. These legislations are historically relevant to the evolution and reinforcement of the current climate of the United States. Cannabis industry.

Electoral initiative modified by the legislature

The Labor Movement’s involvement in the Cannabis industry is legally mandated via the Labor Peace Agreement (LPA) where companies with 20 or more unsupervised employees are required to sign a contractual agreement with a ‘ organization of work. “The Labor Movement is primarily responsible for the fact that we have a regulatory agency and legal, recreational and medical cannabis in California,” Rush says. Also, “I don’t think the industry should look at the Labor Movement as opponents but rather as partners.”

He added: “The unions have embraced the Cannabis industry. We are left for a member, as an international union, to take on this task of creating an industry, so that the industry could be regulated, taxed and controlled. ”Rush concludes,“ Now, we are on the part of the journey where many localities in California have ordered licensed trials which translates into a lot of dignity, a lot of safety, a lot of quality in cannabis. It’s another great reward; that is, good work, many of which will benefit from being unionized. ”

Major reforms regarding cannabis policies and laws mean that owners and operators need to navigate the Labor Peace Agreement and related obligations. “Working peace needs for cannabis owners are now a reality that the industry needs to embrace,” says Josh Inong, VP Marketing & Sales at LRM. Inong continues, “We are here to assist employers in the range of these APLs and in the traditional needs of banking and payroll, investors, regulatory compliance, human resources, label development and talent recruitment.”

Partnerships, not opponents

As for the underground market; including synthetic marijuana, says Rush, “the reason they are flourishing now is because of excessive taxation and weight for the Cannabis industry.” He continues, “Excessive taxation results in high prices in the dispensary. And it also limits companies on the amount of work they can employ and retain, and what they are able to produce legally. ”Rush crushes the misconception,“ There is no longer this huge profit margin rich in cash in industry, here’s what policy makers need to understand. They always try to tax and pay the industry as if it were a money-rich industry. ”

A comparison can be made with the Wine, Beer and Spirit Industries. Rush explains, “look at a winery that is a vertically integrated agricultural and production process” and applies the same concepts and standards to the Cannabis industry. Also, says Rush, “looking at the Distillery Industry, it’s a highly regulated, highly taxed and highly syndicated industry, almost uniformly across the board.” He added, “The Cannabis industry needs to understand what it is; that is, a vulnerability industry. It is a product for human consumption that needs to be regulated, taxed and controlled. It can also benefit from being syndicated.”

Rush adds: “When Cannabis owners start to conceive of themselves and operate in similar ways, they will also realize the same kind of profitability. If we hire artisans, traders, artisans, people who have been trained, certified, they have been through programs. of apprenticeship “creating” a productive industry that is profitable, that is very safe for the consumer, the worker and the communities we work in ”all reaps the benefits. Peace of Work is “the law today, but it is intended to create a transparent, peaceful, healthy, dignified environment for all involved and, it may be so,” Rush reflects.

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