CHUMA HOLDINGS INC
LOS ANGELES, CA--(Marketwired - Sep 23, 2015) - The following is a statement by Chuma Holdings, Inc. (
At Chuma, we have a unique perspective on California's Assembly Bill 266 (AB 266) regulating medical cannabis production and sale in California. Our perspective comes from our business of providing seed-to-sale compliance advisory services to the lawful California marijuana industry. We deal daily with the regulations and guidelines, which continue to evolve within the industry.
There is a deep concern that the statewide regulation of the medical marijuana industry is in jeopardy because of a failure to address the "nuts and bolts" of a regulatory system in a timely fashion. Passing the regulatory framework legislation is an important first step and we look forward to Governor Brown signing it into law. But this is only a first step.
California needs to move forward expeditiously on new regulations that protect not only the interest of the state in increased tax revenues, but which also protect patients and those operating in the industry from prosecution at the city, county and state levels.
"We have worked with over 500 dispensaries in California and we have worked with growers. I've seen the evolution of the regulated medical marijuana business over the last decade and a half. Getting marijuana regulation right is not easy," states Paul Shively, Chuma's Chief Compliance Officer states.
"If California is serious about regulating medical marijuana, proper regulations must be in place by January 1st, 2016, not several months down the road. While Chuma recognizes the political obstacles such regulations present, the medical marijuana industry cannot move forward in a regulatory vacuum. Nor can the proposed legalization of recreational marijuana take place without a fully operational, statewide, regulatory system being in place."
"Regulatory uncertainty has its own, very significant, costs," states Shively. "Across the state of California, local law enforcement continues to react to the marijuana industry with inconsistent and often misguided local interpretations of the intent of Prop 215. Hundreds, if not thousands of California residents have been prosecuted for possessing, cultivating, transporting and dispensing medical marijuana under the current system."
Since 1996 medical marijuana dispensaries operated for several years under the vague guidelines offered under Prop 215. In January 2004, Assembly Bill 420 (AB 420) established guidelines for the cultivation, transportation and dispensing of medical marijuana to California residents with doctor recommendations. Prop 215 and AB 420 created a series of guidelines that were never in fact enacted in to law. For almost a decade while operating under these poorly structured guidelines, medical marijuana dispensaries were obligated to pay sales tax and income tax at municipal, state and federal levels; all the while, the dispensary owners and employees faced the risk of arrest and imprisonment.
Rather than becoming mired in political haggling, Californians need a clear, comprehensive set of regulations for the medical marijuana industry and which could form the basis for regulating the recreational market.
"Waiting until November 2016 to vote on one of the ballot initiatives supporting recreational use legalization before creating real regulations for the marijuana industry is short sighted," said Shively. "California needs to have its medical marijuana regulatory structures in place now so they can be tested and evaluated prior to the possible legalization for recreational use.
"Regulation and compliance are tough issues for all of the participants in the marijuana business. By bringing in statewide regulations for the medical marijuana industry as soon as possible, growers, dispensaries and state officials will have the opportunity to 'stress test' a statewide system before the next green wave of recreational legalization hits the shore," said Shively.
Chuma looks forward to working with our medical marijuana dispensary clients, and the growing community, as well as state and local officials to build a compliance ready, state wide medical marijuana regulatory system. We believe that if the State of California can effectively regulate medical marijuana, the State will be prepared for the challenges recreational legalization presents.
About Chuma Holdings, Inc.
Chuma and our wholly owned subsidiaries provide turnkey financing and support solutions to the rapidly evolving and growing legal cannabis industry. We provide "seed to sale" key business services including financing, compliance consulting, dispensary solutions, banking and payment processing solutions, and marketing and sales consulting. Chuma's experienced team has over thirty-five years combined experience in the lawfully organized cannabis industry in California, and we are currently generating revenue from existing financing and service solutions. We are planning on expanding throughout California and bringing our array of services to each new state that legalizes the use of cannabis. For more information, please visit www.chuma.us.
Safe Harbor Statement
This release contains "forward-looking statements" that include information related to future events and future financial and operating performance. The words "may", "would", "will", "expect", "estimate", "can", "believe", "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause these differences include, but are not limited to: the ability of Chuma to secure appropriate funding to implement its business plan, the demand for Chuma's services, Chuma's ability to maintain customer and strategic business relationships, the regulation of legal cannabis on both state and federal levels, the impact of competitive products and pricing, growth in targeted markets, and other information that may be detailed from time-to-time in Chuma's filings with the United States Securities and Exchange Commission. Chuma undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
