July 2022 - California Leaf

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In a move that feels long overdue, the California Department of Cannabis Control (CDCC) has announced a new data tool that includes a map to assist consumers with finding their nearest licensed pot retailers. “ONLY 44% OF Though already available CITIES AND in modified forms on a COUNTIES ALLOW variety of popular sites THE LICENSING OF AT LEAST and platforms today, the ONE CANNABIS assurances that come with BUSINESS TYPE.” relying on an unbiased, authoritative source for locating a region’s dispensaries is a welcome addition to what’s thus far been a slow digital roll-out from the state’s end. Per the North Bay Business Journal, the process of building the data tool also led the CDCC to discover that “only 44% of cities and counties allow the licensing of at least one Cannabis business type […] and 56% prohibits the licensing of all types.” With numbers that low, making it as easy as possible for consumers located anywhere in California to find a licensed dispensary – and not turn instead to an illicit alternative – should remain a priority of the highest order.

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State Mapping Tool to Help Consumers Find Licensed Retailers

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CALIFORNIA Stu d y Pr ove s C a l ifo rn ia D i sp e n sar i e s V ig il a n t o n I D C h e c k C om pl ia n c e Are underage patrons being given access to California’s licensed Can“HARSH PENALTIES CAN INCLUDE nabis dispensaries? According to one new study, the answer is a definitive UP TO SIX MONTHS “no.” To take the pulse on how seriously retail pot shops across the state take IN JAIL AND the matter of checking IDs, researchers sent people who seemingly looked THE LOSS OF A LICENSE FOR A underage to 50, to randomly selected dispensaries throughout California. FIRST OFFENSE.” In findings published in the Journal of Safety Research, the study’s authors revealed that every dispensary they visited required proof of ID before permitting entry. This welcome result is unquestionably correlated with the harsh penalties – which can include up to six months in jail and the loss of a license for a first offense – that face any pot shop caught selling Cannabis to minors. Notably, the study’s authors stressed that their findings do not address the possibility of underage patrons using fake IDs. Overall, the issue is best summarized by last year’s federally-funded Monitoring the Future survey, which concluded that national underage Cannabis use “decreased significantly” in 2021.

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Newsom’s Latest State Budget Proposal W o u l d N i x C a n n a b i s C u l t i v a t i o n Ta x Could tax relief for California’s licensed Cannabis cultivators finally be on the way? That’s what Gov. Gavin Newsom is teasing as part of his proposed budget for the 2022-2023 fiscal year. Specifically, Newsom’s budget would nix the state’s cultivation tax. Usually assessed prior to a crop’s sale, California’s current cultivation tax costs growers $10.08 for every ounce of dried “CANNABIS CONSUMPTION Cannabis flower they produce. At present, the cultivation tax LOUNGES ARE is compounded by state and local excise taxes paid first by STILL LIMITED TO SMALL POCKETS licensed distributors, then again by customers at the point of OF THE STATE.” sale. Contrasted with unregulated retailers (who pay no taxes whatsoever), the windfall brought in by Cannabis tax revenue equated to $308 million for California’s coffers in the fourth quarter of 2021 alone. Further justifying Newsom’s move are the results of a recent study commissioned by the Reason Foundation and published in May, where researchers concluded that eliminating the cultivation tax would result not in a loss, but rather in a 123% monthly tax revenue increase for the state by 2024.

JULY 2022

Cannabis Industry is Sacramento’s Ninth Largest Employer According to a report commissioned by city officials, Sacramento’s Cannabis industry is now considered to be the city’s ninth largest employer. The findings confirm the state capitol has evolved into a legitimate stronghold for Cannabis-related jobs. To explain this spike, the report’s authors cited Sacramento’s proximity to several neighboring regions without permitted Cannabis sales, as well as the city’s appeal as a new hub for cultivation. In total, the Cannabis “THE CANNABIS industry workforce in Sacramento now employs INDUSTRY WORKFORCE IN 7,970 individuals. Since adult-use sales began in SACRAMENTO 2018, the report also found that home values have EMPLOYS 7,970 INDIVIDUALS.” not decreased, nor have crime rates spiked. Business, meanwhile, has been quite impressive – with gross annual receipts more than tripling within the same timeframe. The release of this report arrives as Sacramento’s City Council continues to weigh a proposal to approve consumption lounges, emphasizing the growing pains still being felt despite the region’s indisputable new commitment to Cannabis-related commerce.

STORIES by ZACK RUSKIN @ZACKRUSKIN for CALIFORNIA LEAF


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