Heya it’s Forethought Sunday,

Smoke and fires are on the mind, so too is the Humboldt County’s Office of Emergency Services and their expansion of emergency access allowance to include commercial cannabis businesses. In today’s newsletter we’ll cover this, DCC disaster relief regulations, and a few other considerations that may support your business specifically in the case of fire emergencies.

We are circling back on Labor Compliance, to update information gained at recent inspections and address additional questions about labor issues impacting small businesses. For this edition we had the pleasure of working with Sarah Smale, a Nevada County attorney who offers services in regulatory, business, and employment law for cannabis businesses. Sarah also handles dispute resolution, including civil litigation and administrative hearings. Sarah is available with the email link above to help answer all your labor questions!

Today we’re writing regarding energy usage and reporting. In state regulations, there are two sections that discuss power usage for "cultivation activity” that we wanted to bring attention to. The licensing regulations are being consolidated and renumbered, which means the section numbers quoted here are likely going to change, while the verbiage remains the same, for now. Learn more about this regulatory process here. May the new agency bring consistency and grace to the cannabis community.

All cultivation permit holders should have received a recent letter from the County regarding the Financial Security Requirement for Measure S “security.” This new requirement applies to all cultivation permit holders, and needs to be addressed prior by March 26th. The ordinance adding this requirement, passed October 6th by the Humboldt County Board of Supervisors, can be found here. (If you have not received a letter from the Planning Department, check that your address on file is correct).

The Bureau of Cannabis Control (BCC) 1st round of equity funding has been awarded, the portion allocated to Humboldt County is in the amount of $1,204,000. This funding is available for approved equity applicants through the County of Humboldt Office of Economic Development. The pre-application closes at 5pm on March 19th. The first round of grant funding will be awarded for up to $10,000 per qualifying applicant. This Trellis grant funding is likely to be directed for infrastructure needs.

Each year is an opportunity to learn new tricks, refine established methods, and bring beautiful cannabis plants through their life cycle to reach patients and consumers. Thinking through the harvest flow, we’ve considered how batches are tracked for entry into the regulated market. Tracking the trace, while considerably less sexy than the plant itself, can be a part of business development that builds upon successful strategies, supporting your long-term success. This edition of The Understory offers a quick guide to FAQs we’ve been hearing throughout the year.

We wanted to check in and offer this connection resource, in case farms need to move product off their premise without using the METRC/ transfer process. Gov. Newsom declared a statewide disaster this week, which kicks in the disaster relief section as needed. The following linked letter can be download and fill in the pertinent pieces and sent to CDFA, post transfer, to alert the agency, within 24 hours of the move. This is a live link with info as to licensees who are able/willing to receive product incoming.

We have all been thinking about ways we can continue to protect each other during this time. In the spirit of information and resource sharing, we’ve put together a basic guideline for a standard operating procedure (SOP) you may tailor to your farm and business needs. The CDFA and Cal-Osha recently released COVID-19 information for protecting ourselves and our neighbors during the pandemic. Our local healthcare providers and county planning also have an eye on providing endorsed guidelines specific to the industry.

With mid-summer harvests underway, it’s time to check in on sales compliance. There is a lot to cover in this edition of The Understory, and sales will move most smoothly with informed considerations and preparations in place. A little foresight in building relationships with buyers before you are ready to transfer cannabis can give direction to how the harvest is processed, as well as dictates your state cultivation tax implications, and record keeping requirements.