As the standoff between the state of California and Cannabis continues, the state made some major moves to stomp out illegal sales. After sending over 1000 cease-and-desist letters to illicit shops in April, most made no changes.
In defense, however, some struggled to gain licensing in the new recreational market. The choice is to stop sales immediately or try your luck against prosecution. The option to go along or fail is a lose-lose for anyone stuck in the crosshairs of legalities. The state was overwhelmed with applications for license to sell but, with only a handful of employees, it’s taking longer than expected to keep up or even start in some areas.
More than anything, these businesses can appeal to locals and tourist alike with their lower prices but with a lack of license also means lack of proper product testing or safety and health procedures for the shop.
Despite California being the countries cannabis-capital, it hasn’t taken off in the recreational market as many would have hoped. Partially due to these legal issues and grey areas. The state operated in a medical market for nearly 20 years and continued to be the leaders in North American cannabis reform.
In an effort to alleviate financial issues brought to state-licensed stores, some cities have started to target shops that aren’t playing by the rules. Los Angeles prosecutors moved forward with 142 arrest and 32 criminal charges spanning from various cannabis businesses. With only 147 licensed stores in the city of Los Angeles, prosecutors are only going after shops that commit crimes or create problems for the surrounding community.
As some cities are still on the fences about whether cannabis should be in the neighborhood, the. Weedmaps has been the states focus as a cause of this problem. The dispensary locator list many of these unlicensed shops, funding black market further. The high taxes currently imposed on shops become worse when they can’t get enough customers in the door to keep the lights on. Weedmaps claims no fault and has refused to comply with the cease-and-desist from the state.
At the beginning of June,lawmakers were presented bills to neutralize some of the issues. Separate legislation was presented to lower taxes, among other things, but lawmakers killed the the bill to lower taxes before it got far. Though much is being done to further the state’s efforts in the long run, most are in limbo at the moment.
The state which is slated to be the biggest market in the US, has further go to protect state’s revenue. While the fight against the black market is hazy, one of those discussed bills will make the banking front less stressful.
Bill 930 would permit banks that are regulated by California’s Department of Business Oversight to provide limited services to the cannabis industry. At the moment, it’s a cash-only industry, causing problems for companies. The services would not permit any business outside of the state, however. The state perceives this notion as a temporary means to an end. Lawmakers in the state are hoping to achieve federally legalization sooner than later.
The bill passed the Senate 29-6 and will move to Assembly now. As do all states, the road after legalization is always little bumpy. This industry is new and comes with many complex problems. Some cite that issues come from the original legislation and it’s intent. Either way, we have to stay active to educate for cannabis to be handled properly, in the retail front and politically as well.
