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Can the California Cannabis Industry be Saved? An Update

Can the California Cannabis Industry be Saved? An Update


On Wednesday, June 26, Hirsh Jain of Ananda Technique and I did an hourlong presentation the place we examined a laundry listing of issues dealing with the California hashish business. We had loads of questions on whether or not a replay can be obtainable and are comfortable to report that you could watch it right here.

In the course of the webinar, Hirsh and I talked a couple of host of issues dealing with the business, together with:

What structural authorized points make substantive adjustments to California regulation difficult
How federal rescheduling could have an effect on California
Over-regulation on the state and native degree
California’s poor gross sales efficiency as in comparison with different mature adult-use states
The results of burdensome taxation on the federal, state, and native degree
California’s lack of retail licenses
The festering unlawful market and minimal enforcement,
Competitors from poorly regulated intoxicating hemp merchandise
Why we don’t suppose interstate commerce will occur quickly or repair all of California’s issues

This was loads to unpack in an hour and, sadly, we didn’t get an excessive amount of time to handle potential options we expect might make things better. So I wished to do this right here, after talking with Hirsh.

Beneath are a couple of concepts we every have, which we expect may be begin in the direction of bettering the California hashish business. We each admire that loads of these adjustments might not be possible with out one other voter initiative, however are itemizing some anyway.

Cut back, not enhance, excise taxes
Cut back license charges
Cap gross receipts taxes by counties and cities
Eradicate extreme penalties for late excise tax funds to CDTFA, and retroactively waive any penalties charged by CDTFA prior to now
Streamline DCC rules and eradicate necessities which are cumbersome for the business (e.g., prohibition on gross sales after 10 PM, pointless change of possession prohibitions, and so forth)
Create “computerized referendums” so voters (not politicians) have say on whether or not hashish companies are allowed of their jurisdiction
Cut back regulatory burden on supply companies (e.g. elevated case pack worth, prohibit supply bans, prohibit “a number of taxation” of supply companies)
Cut back burdensome CUP processes (that result in lengthy delays)
Cities can’t impose extra restrictive zoning than the state
Permit “farmers markets” on restricted foundation to create extra retail distribution factors
Permit “drive throughs”
Permit “curbside pickup”

California has a option to make. It might probably both make participation within the authorized market simpler by dropping pointless and burdensome legal guidelines and guidelines, or make participation within the unlawful market more durable (i.e., enforcement). Proper now the state just isn’t doing both of these issues very effectively.

We’ll maintain you up to date on adjustments that will influence the business. So keep tuned.



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