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Business News

Attorneys general urge Congress to incorporate cannabis industry into banking system

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Written by: Editor
Published: 18 January 2018
SACRAMENTO – California Attorney General Xavier Becerra has joined a bipartisan group of 18 state attorneys general in urging Congress to advance legislation that will enable the cannabis industry to participate in the banking system in states that have legalized medicinal or adult use of cannabis.

The recent decision by the Trump Department of Justice to rescind prior federal guidance rolled back critical protections for the legal cannabis industry.

“California voters have made it clear: when it comes to the cannabis industry, California is moving forward, not backwards," said Attorney General Becerra. “This is an issue that is impacting both red and blue states. The future of small and local licensed businesses has been clouded by the Trump Administration's relentless attacks on progress, in conflict with the will of voters. Congress has the power to protect a growing $6.7 billion industry and the public safety of our communities. My team at the Department of Justice is committed to implementing and enforcing the law in California in a way that most effectively protects the health and safety of our people.”

California, along with 28 other states and several U.S. territories, has legalized the medical use of cannabis.

However, under the Controlled Substance Act and certain federal banking statutes, banks providing services to state-licensed cannabis businesses can be subject to criminal and civil liability, as the federal government classifies cannabis as an illegal substance.

Accordingly, financial institutions are reluctant to provide services to cannabis businesses operating legally within their state jurisdiction.

Forced to operate on a cash basis, cannabis businesses are left vulnerable to criminal targeting.

Additionally, law enforcement is less able to track potential financial crimes, and it is more difficult for businesses to pay—and for the state to collect—tax deposits.

In their letter, the Attorneys General note that the enactment of legislation such as the Secure and Fair Enforcement Banking Act would not only bring billions of dollars into the banking sector, but would also give law enforcement greater ability to monitor transactions.

Moreover, compliance with tax requirements would be simpler and easier to enforce with a better-defined tracking of funds. This would, in turn, result in higher tax revenue.

Attorney General Becerra sues FCC over repeal of net neutrality rules

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Written by: Editor
Published: 17 January 2018
SACRAMENTO – California Attorney General Xavier Becerra has announced a lawsuit against the Federal Communications Commission challenging its attempt to repeal net neutrality rules.

Net neutrality allows consumers to access online content without any interference by an internet service provider, or ISP.

Without these rules, ISPs may force Web sites to pay fees for faster internet speeds, while limiting consumers’ ability to access the internet content of their choice.

The FCC’s action also purports to limit the rights of California and other states to impose their own net neutrality requirements.

“Internet access is a utility – just like water and electricity. And every consumer has a right to access online content without interference or manipulation by their internet service provider. However, in repealing the net neutrality rules, the FCC ignored consumers’ strong support for a free and open internet,” said Attorney General Becerra. “We are filing a lawsuit against the FCC’s illegal attempt to repeal common sense rules protecting net neutrality. A free and open internet drives innovation, economic growth, and consumer choice. As home to countless start-ups and technology giants alike, California knows this better than anywhere else. We will do everything we can to defend our vibrant Internet economy and consumer choice from the FCC’s attempt to curtail net neutrality.”

In 2015, the FCC enacted the Open Internet Order, which mandated equal treatment of internet traffic and promoted competition and innovation online. These rules prevented ISPs from forcing websites to pay fees for access to special internet “fast lanes” or relegate disfavored content to “slow lanes.”

Such differential access speed frustrates consumers and can affect which online companies succeed and which fail.

Reversing course, the FCC, now led by President Trump’s appointee Ajit Pai, decided to repeal these rules.

The FCC’s decision largely relies on comments submitted by ISPs and effectively ignores the overwhelming majority of the more than 20 million public comments that opposed repeal of the rules.

Joining Attorney General Becerra in filing the lawsuit were the Attorneys General of New York, Connecticut, Delaware, Hawai’i, Illinois, Iowa, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Mississippi, New Mexico, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington and the District of Columbia.

Open area of commercial rock crab fishery to be extended to Salt Point, Sonoma County

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Written by: Editor
Published: 17 January 2018
Following the recommendation of state health agencies, the California Department of Fish and Wildlife (CDFW) announced on Tuesday that it has extended the area open to commercial rock crab fishing from 38° 34' N. Lat. (Salt Point, Sonoma County) south to the California/Mexico border.

At the recommendation of the state Office of Environmental Health Hazard Assessment (OEHHA), CDFW Director Charlton H. Bonham submitted to the Office of Administrative Law an emergency rulemaking to close the commercial rock crab fishery north of Pigeon Point, San Mateo County on Nov. 8, 2016.

On Jan.1, 2017, new authority established in the Fish and Game Code, section 5523, allowed the Director to continue the closure.

Opportunistic sampling of rock crabs and continued high domoic acid levels have prevented the reopening of fishing grounds north of Bodega Bay, Sonoma County since Feb. 2017.

State and federal laws prohibit the commercial distribution of seafood products that contain domoic acid levels above the federal action level of 30 parts per million in the viscera.

The recreational fishery for rock crab remains open statewide with a warning from the California Department of Public Health (CDPH) to recreational anglers to avoid consuming the viscera of rock crab caught north of Salt Point, Sonoma County to the California/Oregon border.
Closure of the commercial rock crab fishery north of Salt Point, Sonoma County to the California/Oregon border shall remain in effect until the Director of OEHHA, in consultation with the Director of CDPH, determines that domoic acid levels no longer pose a significant risk to public health and recommends the fishery be opened.

CDFW will continue to coordinate with fishermen and CDPH and OEHHA to test domoic acid levels in rock crab within the closure area of the coast.

Domoic acid is a potent neurotoxin that can accumulate in shellfish, other invertebrates and sometimes fish. It causes illness and sometimes death in a variety of birds and marine mammals that consume affected organisms.

At low levels, domoic acid exposure can cause nausea, diarrhea and dizziness in humans. At higher levels, it can cause persistent short-term memory loss, seizures and can in some cases be fatal.

North Shore Business Association meets Jan. 17

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Written by: Editor
Published: 15 January 2018
UPPER LAKE, Calif. – The North Shore Business Association will hold its next regular meeting on Wednesday, Jan. 17.

The group will meet at Judy’s Junction, 375 Highway 20 in Upper Lake.

Come at 7 a.m. for the buffet breakfast or join them at 7:30 a.m. for networking.

District 3 Supervisor Jim Steele and Northshore Fire Chief Jay Beristianos will speak to the group about fire prevention and how to save money on your fire insurance as well.

For more about the association visit http://www.northshorebusinessassociation.com/.
  1. Middletown Area Merchants Association Board meets Jan. 16
  2. State treasurer launches California’s first online business development gateway
  3. CDFA announces vacancies on Standardization Advisory Committee
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