Synopsis: California’s Marijuana Industry Needs An Intervention To Avoid An ‘Extinction Event
“California’s marijuana industry needs an intervention to avoid an ‘extinction event,” gives us this week’s Hot #Zinfo. Written by Andrew Sheeler and published by Sacbee, the article discusses the looming extinction of California’s cannabis industry.
Rumor has it that cannabis is set to become a multi-billion dollar industry in California.
But what happens if nearly 10,000 growers lose their license?
No, your eyes aren’t playing tricks on you…
The cannabis industry in California is on the brink of extinction if lawmakers don’t pass Senate Bill 67.
How did it happen?
Under Proposition 64, temporary licenses were granted to give growers an opportunity to operate while awaiting approval for a full annual license.
There have been over 6,900 applications submitted to the California Department of Farm and Agriculture, and only 52 applicants have been granted an annual license.
Even worse, many temporary license holders are now entering into their expiration period. Please note, extensions are only granted to applications received by December 31, 2018.
If this bill doesn’t pass, many growers will instantly be transitioned into the black market.
Senator Mike McGuire, one of the sponsors for Senate Bill 67 states, “This is the worst way to transition a multibillion-dollar agricultural crop, which employs thousands of Californians.” Furthermore, “Without legal licenses, there isn’t a legal, regulated market in California.”
What will SB 67 Change?
- It allows license holders to remain operational by granting a new deadline date of December 31, 2019.
- It will require every state licensing agency to give a monthly report with detailed info broken out by city and county as well as the number of pending and approved license applications
Cannabis advocates such as Jackie McGowan with K Street Consulting, a firm that represents the cannabis industry in California, feel if Senate Bill 67 isn’t passed with a retroactive clause, it will bring forth the death of the industry in California. She’s also worried if regulatory agencies don’t support the bill, it won’t pass.
Without licensed growers in the mix, retailers will be forced to rely on the black market for product needs.
If nothing is done, over 1,000 growers are in jeopardy of losing their license this month alone.
“In a time where the Golden State is working overtime to bring the cannabis industry out of the black market and into the light of
a legal regulatory environment,” he said, “we can’t afford to let good actors who want to comply with state law fall out of our regulated market just because timelines are too short and departments have been unable to process applications in time due to the sheer number of applications.” – Senator Mike McGuire
What do you think will happen to the cannabis market in California if Senate Bill 67 doesn’t pass? Let us know on our Facebook page.