Four years after recreational
cannabis was legalized in California, the Humboldt County Civil Grand Jury has
a released report entitled "A Growing Concern." The report focuses on
the Planning and Building Department's record keeping and cash handling
procedures for the cannabis industry.
"There is a notable
lack of in-depth reporting of revenues and expenditures that would accurately
show the citizens of Humboldt County the effectiveness and the operational and
fiscal efficiency of the Cannabis Planning program," the report states.
Part of the problem,
according to the report, is that cannabis remains a Schedule 1 substance under
federal law, meaning banks will not allow cannabis cultivators to open accounts
or establish lines of credit. As a result, permit fees and abatement fines collected
by the county are often paid in cash.
"The Planning and
Building Department assumes the risk inherent in the storage and handling of
large sums of cash," the report states, requiring "a highly
transparent, very accurate system of accounting."
The report concludes with
the recommendation that the Planning and Building Department take the following
actions: Update the website to reflect changes in regulations and offer
relevant information regarding permit applications; undergo an audit by the Auditor/Controller
of all incoming receipts, and make the results public; hire a qualified
accountant to organize and maintain financial records; and direct customers who
pay in cash through the Treasurer-Tax Collector's office.
North Coast Journal
BY ASHLEY HARRELL,
JULY 6, 2020
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