7 Reasons Why The US Canabis Industry Is About To Be "Rocked"
As DataTrek's Nicholas Colas reminds us, recreational marijuana sales become legal in California starting on New Year’s Day 2018. Given that one in eight Americans live in the state, this move will have major implications for the entire US legal cannabis industry.
So, to address any pent up investor questions, Colas has put together a list of 7 major points about the rollout in terms of regulations, taxes, revenue estimates, potential banking solutions, and employment consequences.
Dispensaries in California can finally start selling recreational cannabis on January 1st after voters passed Proposition 64 in November 2016. Even though some other states already allow legal retail cannabis (like Colorado and Washington), this is a game changer for the industry as one in eight Americans live in California. The state will have to go through a transition period, as recreational marijuana sales merge with the existing medical marijuana market. The latter is nearly two decades old and will also face stricter regulations. Nevertheless, the new market should help California’s economy and budget deficit.
Here are 7 major points we think you should know for the rollout:
#1 Who can buy and how much: Consumers have to be 21 or older to buy retail marijuana, can possess up to 28.5 grams of flower or 8 grams of cannabis concentrate, and can grow up to six plants. As in other states where retail cannabis is legal, people cannot smoke in public, only in a private home or a business licensed for on-site smoking.
#2 Number of licenses issued thus far: California’s Bureau of Cannabis Control has given some temporary licenses to retailers, distributors, microbusinesses and testing laboratories through its online licensing system. As of the Bureau’s press release on December 14th, it has issued just 20 licenses, but said it plans to issue “many more” before the 1st. Not only do dispensaries need a license, but also approval from local authorities. Here is the press release.
Retail cannabis won’t be available everywhere starting on the 1st of next month, however. It will take longer in some cities and counties, while some have banned cannabis stores. Leafly put together a helpful list on the status of California’s major cities. Although stores in San Diego, San Jose and Sacramento are expected to open on New Year’s, those in Los Angeles and San Francisco are delayed. LA will become the biggest US city with legal recreational marijuana sales. Here’s the list.
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