Taxpayers in California will hand-over at least $100 million to shore-up the state’s failing recreational marijuana industry; raising new questions over whether the legal market for drugs can support itself even on the Deep Blue West Coast.
“The largest U.S. state earmarked money last week to aid companies that are struggling financially in large part because of bureaucratic delays and missteps in transitioning them from temporary licenses into more stringent permanent ones. It’s a cautionary tale for other states that are figuring out how to balance social-equity provisions, tax rates and competing with an illicit market valued at $66 billion last year, according to New Frontier Data,” reports the Financial Post.
California offers $100 million to rescue its struggling legal marijuana industry https://t.co/wXpdPc7w5U
— Los Angeles Times (@latimes) June 14, 2021
“While California’s 15% tax on legal marijuana has been blamed for pushing consumers to the illicit market, it’s clear that much more has gone wrong. Legalization, which began in 2016, has been messy with rules varying by city and county. The process has also been slow and expensive. That weighed most on small operators, thus many haven’t transitioned to the regulated recreational market, which has more potential than medical,” adds the website.
Read the full report here.
BACKLASH: Dems $3 Trillion Spending Wish List Includes ‘Marijuana Banking Protections’
A growing backlash on social media grew Thursday after the Democrats’ $3 trillion spending bill included protections for the Marijuana-banking industry.
From Fox News:
Democrats’ $3 trillion proposal for yet another coronavirus relief bill includes measures that would allow state-legal marijuana businesses to access financial services — a provision that has been ridiculed by some on the right but hailed by those in the marijuana industry as welcome relief for their “essential” businesses.
The cannabis-related language, which appears on pages 1,066-1,091 of the massive 1,815-page legislation, mirrors the Secure and Fair Enforcement Banking Act – known as the SAFE Banking Act – which passed the House in September with bipartisan support but has languished in the Senate. The bill also includes productions for hemp and CBD manufacturers, which still exist on shaky legal ground in the U.S.
Essentially, the cannabis-related provisions would allow banks and other financial institutions to work with state-legal marijuana businesses and businesses that provide services to the marijuana industry without fear of federal retaliation — a specter that has forced such enterprises to work mainly in cash for years.
Read the full report here.
BREAKING NOW: Illinois Governor Signs Law Legalizing ‘Recreational Marijuana’ and ‘Commercial Sale’
Illinois Governor JB Pritzker signed into law new legislation Tuesday that will legalize the possession and consumption of recreational marijuana on January 1st, 2020.
“Supporters say it will be a game-changer for revenue in the state, while opponents say it makes the state more dangerous,” reports ABC Chicago. “Tuesday morning, the governor put pen to paper here in the Austin neighborhood, legalizing the recreational use of marijuana and it’s commercial sale in the state.”
NEW: Illinois has become the latest state to legalize marijuana. The bill, signed by Gov. JB Pritzker, will also "clear the cannabis-related records of nonviolent offenders." https://t.co/bwIk70AVqF
— ABC News (@ABC) June 25, 2019
“As the first state in the nation to fully legalize adult-use cannabis through the legislative process, Illinois exemplifies the best of democracy: a bipartisan and deep commitment to better the lives of all of our people,” said Gov. JB Pritzker. “Legalizing adult-use cannabis brings an important and overdue change to our state, and it’s the right thing to do. This legislation will clear the cannabis-related records of nonviolent offenders through an efficient combination of automatic expungement, gubernatorial pardon and individual court action. I’m so proud that our state is leading with equity and justice in its approach to cannabis legalization and its regulatory framework. Because of the work of the people here today and so many more all across our state, Illinois is moving forward with empathy and hope.”
“My office is proud to have helped develop this historic legislation, which will provide conviction relief to hundreds of thousands of Illinois residents in the most extensive and equitable way possible,” said Cook County State’s Attorney Kim Foxx. “The time for justice is now, especially for communities of color who have long been disproportionately impacted by low-level cannabis convictions and the failed war on drugs. We look forward to continuing our efforts to ensure the broadest relief possible under this revolutionary law.”
This is a developing story. Check back for updates.