Uncertainty Lingers With California’s Lawful Marijuana

October 31, 2017 California

Legalized, recreational marijuana will be on sale in the state of California from January 1, 2018. But it seems as if marijuana establishments in the two major cities of Los Angeles and California will face difficulties in operating from the announced date because local rules haven’t been established yet. Federal Affairs Manager of California State Association of Counties states admitted that most of marijuana establishments in the state would not be ready by January 1.

With the start of New Year, the state will finally witness the legalized sale of adult-use cannabis. People 21 years old and above are allowed to acquire up to an ounce of marijuana and can grow 6 cannabis plants in their homes.

Even though marijuana is going to be all-out legalized but still it feels like the state is not prepared for this new development. Many things still need to be addressed regarding cannabis supply chain in the state. Likewise, the state looks underprepared about the financial prospects of this new industry which will going to be the leading cannabis economy of the country with the estimated value of $7 billion dollars. If state doesn’t issue license to businesses and doesn’t formulate a clear strategy, then it will only faces loses of revenue of the legalized sale.

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Cannabis operators have shown their reservations about the conflicts and contradictions in many existing laws regarding the business. Operators are not sure how state laws would work in cities that don’t have marijuana law. Banks are still adamant in doing business with cannabis business and insurance companies are also not offering their services since marijuana is still illegal as per federal law. Executive director of cannabis industry group complained about the state’s undercooked strategy regarding marijuana.

Legalization of recreational marijuana was the outcome of Adult Use of Marijuana Act approved by voters of the state. However, the difference in legal framework of state, counties and cities is going to deject cannabis operators to become part of the legalized economy and that will result in an unregulated parallel black market.

All are not the Same Page

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Before getting the state’s license, one must have a local permit to do business in a specific neighborhood highlighting the importance of local laws for operators. The third largest city of the state, San Jose has put a temporary ban on the adult-use cannabis. Kern County, with the population of around 1 million people has also barred the sale of cannabis. Even the cities which have approved the legalization of marijuana are facing the deadlocks with formulation of local rules. Los Angeles has a proposition for certificates of compliance with very strict criteria which will be very difficult for many cannabis operators to meet. San Francisco is still arguing over rules regarding legalization.

Due to vagueness of the laws and disharmony among state, cities and counties, current distribution system has not the capacity to serve the needs of immense new prospects of cannabis market.

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