California Marijuana Laws Get Major Update.

California Marijuana Laws Get Major Update

The Golden State is now home to some of the most progressive marijuana laws in the country. On January 1, 2018, California legalized recreational marijuana use for adults and began issuing licenses to dispensaries, cultivators and manufacturers who wish to sell cannabis products. This has led to a massive growth of the cannabis industry in California, but it also caused legal grey areas.

However, recently lawmakers in California have proposed several bills that aim to update and regulate the state's marijuana industry. Some of the proposed updates include lower taxes for cannabis businesses, the ability for local governments to ban outdoor cultivation, and more stringent testing regulations for cannabis products.

These proposed updates are expected to have a big impact on California's cannabis industry, so it's important for everyone involved to stay informed on the latest updates and changes. In this post, we'll explore some of the major proposed updates to California's marijuana laws and how they might affect the industry moving forward.

Tax Breaks for Cannabis Businesses

One major proposed update to California's marijuana laws is the implementation of tax breaks for cannabis businesses. Currently, marijuana businesses are subject to state and local taxes, as well as a 15% excise tax imposed by the state. These high taxes have made it difficult for some businesses to turn a profit or operate without seeking outside investment.

If the proposed tax break bill is approved, cannabis businesses would be exempt from state sales taxes for up to five years after obtaining a license. This could provide significant relief to businesses struggling to keep up with the high taxes associated with the industry. Additionally, the bill would also allow for more liberal deductions for cannabis businesses, including rent and utility expenses. This could help to level the playing field for small businesses in the industry and promote growth and competition.

New Regulations for Cannabis Testing

Another proposed update to California's marijuana laws is the implementation of more stringent regulations for cannabis testing. Currently, the state requires testing for a variety of substances, including pesticides, heavy metals, and microbial contaminants. However, some within the industry have criticized the testing regulations for being too lax and allowing dangerous products to make it to market.

The proposed regulations aim to address these concerns by requiring more frequent and rigorous testing for contaminants, as well as increasing the number of licensed testing facilities in the state. If the bill passes, it could increase public safety by ensuring that all cannabis products on the market are safe and free of harmful substances. However, some worry that the increased costs associated with more frequent testing could put small businesses at a disadvantage and make it more difficult for them to compete in the market.

Local Governments Given Power to Ban Outdoor Cultivation

One of the major proposed updates to California's marijuana laws is the provision that would allow local governments to ban outdoor cannabis cultivation in their jurisdictions. Some officials have expressed concerns over the strong and unpleasant odor of cannabis plants, which can lead to conflicts with non-cannabis businesses and residents.

The proposed bill would give local governments the power to enact ordinances or regulations that prohibit outdoor cultivation, and provide that any violation of such a regulation is an infraction punishable by fines. This move could have a significant impact on small businesses and cultivators who rely on outdoor cultivation to operate. However, supporters of the bill argue that it is necessary to strike a balance between promoting the cannabis industry and protecting the rights and interests of non-cannabis businesses and residents in the state.

Expunging Marijuana Convictions

Another proposed change to California's marijuana laws is the expungement of marijuana-related criminal convictions. This would allow individuals who were previously convicted of marijuana-related crimes to have those convictions removed from their record, making it easier for them to find employment, housing, and other opportunities.

The proposed bill would require the courts to automatically expunge convictions for marijuana-related offenses that are no longer illegal and allow individuals currently serving sentences for those offenses to petition to have their sentences reduced or their convictions expunged. Supporters of the bill argue that it's a necessary step to address the impact that criminalization of marijuana has had on communities of color and other marginalized groups, who have been disproportionately affected by the war on drugs.

While some are concerned that expungement may be too lenient on those who broke the law when marijuana was still prohibited, others argue that it is a matter of equitable justice, particularly for those who were charged with non-violent offenses.

Delivery Services for Marijuana Products

Another important aspect of California's marijuana laws is the regulation of delivery services for cannabis products. The current law allows for the delivery of cannabis products, but some cities and counties have banned these services or placed restrictions on where deliveries can be made.

A proposed bill would clarify the current law by allowing for statewide deliveries of cannabis products, regardless of local bans or restrictions. The bill would also allow licensed businesses to deliver cannabis products to customers at their workplaces and designated hotels, opening up opportunities for businesses to expand their delivery services.

However, some critics of the bill argue that it could lead to an increase in crime, particularly for drivers who may be carrying large amounts of cash and valuable inventory. Others worry that it could lead to an increase in underage access to cannabis products, as delivery services may not verify the age of the recipient as thoroughly as a brick-and-mortar dispensary.

Investment in Cannabis Industry

Another important aspect of California's marijuana laws is the potential for investment in the industry. The legalization of marijuana has not only led to the growth of the cannabis industry in California but also opened up opportunities for investment. However, there are still some restrictions on investment in the industry that must be considered.

Currently, venture capitalists, private equity firms, and other traditional investors are prohibited from investing in cannabis businesses. This is because cannabis is still considered a Schedule I drug under federal law, which means it's illegal and carries harsh penalties for those involved in its production, sale or use.

However, there are options for investment, such as cannabis-focused hedge funds and real estate investment trusts. Additionally, some think tanks and advocacy groups are pushing for federal legalization and regulation of marijuana, which could open up more traditional investment opportunities in the industry.

Final Notes

California's legalization of recreational marijuana has brought many changes to the cannabis industry in the state. Some of the proposed updates to California's marijuana laws we've covered in this post include tax breaks for cannabis businesses, new regulations for cannabis testing, expungement of marijuana-related criminal convictions, local governments given power to ban outdoor cultivation and investment opportunities with restrictions.

As the industry continues to grow, it's important for both cannabis businesses and consumers to stay informed on the latest updates and changes to the state's marijuana laws. Staying up-to-date on the latest regulations and proposed bills can help ensure compliance with the law and promote the safe and responsible use of cannabis products.

California is leading the nation when it comes to cannabis law reform, and the proposed updates discussed in this post are just the beginning. With continued support from lawmakers and the public, the Golden State can create a thriving and equitable cannabis industry that serves the needs of all Californians.

Here's a quick summary of what we have covered in this post:

1. California Marijuana Laws Get Major Update
2. Tax Breaks for Cannabis Businesses
3. New Regulations for Cannabis Testing
4. Local Governments Given Power to Ban Outdoor Cultivation
5. Expunging Marijuana Convictions
6. Delivery Services for Marijuana Products
7. Investment in Cannabis Industry

References:

1. California Cannabis Portal. (n.d.). Proposition 64 - Adult Use of Marijuana Act. Retrieved September 23, 2021, from https://cannabis.ca.gov/proposition-64-the-adult-use-of-marijuana-act/
2. SB 67 - State Sales Tax Exemption for Qualified Sales of and Purchases by a Qualified Person of Certain Medical Cannabis or Cannabis Products. (n.d.). Retrieved September 23, 2021, from https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB67
3. State of California. (n.d.). Cannabis Regulations. Retrieved September 23, 2021, from https://cannabis.ca.gov/cannabis-regulations/

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