California Here “Weed” Come, by the Billions You may have heard it before, but the great and most populous state in the nation is poised to generate 4.5-5 BILLION annual retail sales within just a few years of its launch. Yes, that’s Billion with a capital ‘B’ and that’s also more revenue than the entire nation’s legal cannabis industry.
California’s Proposition 64, called the Adult Use Marijuana Act (AUMA) lays out some groundwork for the state’s regulatory system and also creates a business tax on both cultivation and retail sales.
As with other states where recreational marijuana is legal, opportunities abound for plant companies, cultivators, retailers, manufacturers and all sorts of other ancillary businesses like tech ventures and cannabis attorneys. With no residency requirements, out of state entrepreneurs will certainly flood California’s gates.
The medical marijuana licensing in the state is happening now after the governor and lawmakers created the Medical Cannabis Regulation and Safety Act (MCRSA) that took effect in January of 2016. The rollout of this newly regulated medical marijuana industry ‘will set the tone for the implementation of the adult use industry under the Adult Use Marijuana Act’.
The state is already seeing businesses emerging and seeking expert advice in order to meet compliance and regulations of the state. There seems to be more of a proliferation of apps as the technology concept in the non-cannabis world can also apply here. Many culinary companies seeking to enhance your gastro experience. Food products, cannabis event planning, and food pairings are popping up in northern California. California based companies with seed to sale tracking systems are going to become essential as the state is requiring that type of compliance. And there is already a National Cannabis Bar Association for those new cannabis attorneys.
With so much work to be done in developing these statewide regulations, officials do not see recreational stores to open until mid 2018. In the meantime, it is suggested that those aspiring business owners should grab a medical marijuana license now if they ultimately want a state medical or adult use license. Vertical integration will not be allowed unless it was already existing and grandfathered in before 2015. The unsettled nature of the regulatory framework may also make it difficult for entrepreneurs to attract investors at this time.
Despite the uncertain nature of California’s adult use regulations, no one has any doubt the golden state will be worth its weight.