CCMA Political greenBrief
Friday, December 28, 2018
Jerred Kiloh, Owner Of Higher Path Dispensary, Prepares A Trip To Pay His Monthly Tax Payment In Cash In Los Angeles. A Report Released By State Treasurer John Chiang, Concluded That CA Would Likely Lose Money & Face Federal Hurdles If It Tried To Create A State-Backed Bank For The Cannabis Industry.
“It is not only unfair, but a public safety risk to require a legal industry to haul duffel bags of cash to pay taxes, employees, and utility bills. The reliance on cash has painted a target on the backs of cannabis operators, and has made them and the general public vulnerable to violence and organized crime.”CA State Treasurer John Chiang On Cannabis Banking
“The state licensing process this past year has been a painful one. I recognize that this has been a significant undertaking for the state, and you combine that with the cannabis industry learning how to navigate the process — it’s been difficult for them both.”Assemblyman Jim Wood (D-Healdsburg) On The Struggles CA’s Cannabis Industry Faced In 2018
Cannabis Industry’s Hope For California Public Bank Derailed (CA – Cannabis Banking)
The Press Democrat (December 27, 2018) The cannabis industry’s hope for California to establish a bank for the sector was dashed Thursday with the release of a highly anticipated report that said such a move would place state funds and workers at risk with no guarantee of success. The conclusions of the 151-page report delivered to a cannabis banking working group led by state Treasurer John Chiang derail attempts to establish a public bank for marijuana companies when state lawmakers reconvene in Sacramento in January.
Cannabis Businesses Face Huge Risk Due To Lack Of Banking Access (CA – Cannabis Banking)
ABC 30 (December 27, 2018) The lack of banking access poses major problems for the cannabis industry in California. But on Thurday in Sacramento, an independent report indicated a public “cannabis-only bank” would pose too big a financial and legal risk for the state. Cannabis-related businesses which have opened in California have run into problems finding banks willing to accept industry deposits because recreational use of marijuana remains illegal at the federal level.
‘Death By A Thousand Cuts:’ California’s First Year Of Legalized Pot Is No Smooth Trip (CA – Cannabis Industry)
San Fransisco Chronicle (December 27, 2018) The legal marijuana market, so long a twinkle in the eye of the cannabis cognoscenti, has hit hard times in California, where high prices, red tape and competition from the black market have cast a pall over what was supposed to be a triumphant first year of recreational sales. The focus now seems to be on making the recreational market viable, but efforts to ease the tax burden, including proposals to cut excise taxes from 15 percent to 11 percent, have gotten little traction.
State-Sponsored Study Says California Cannabis Bank Is Unrealistic (CA – Cannabis Banking)
CBS 13 Sacramento (December 27, 2018) The industry’s been pushing for a state-run bank long before California legalized cannabis last year. But a new state report reinforces what they already knew, it’s too big of a financial risk. Perhaps the most popular idea is to set up an exclusive bank to provide services only to the cannabis industry. But even cannabis advocates have their doubts.
One Year Of Legal Pot Sales And California Doesn’t Have The Bustling Industry It Expected. Here’s Why (CA – Cannabis Industry)
Los Angeles Times (December 27, 2018) As the first year of licensed sales comes to a close, California’s legal market hasn’t performed as state officials and the cannabis industry had hoped. Retailers and growers say they’ve been stunted by complex regulations, high taxes and decisions by most cities to ban cannabis shops. At the same time, many residents are going to city halls and courts to fight pot businesses they see as nuisances, and police chiefs are raising concerns about crime triggered by the marijuana trade.
‘Cannabis Equity’ Runs Into Roadblocks (CA – Equity Programs)
Pew (December 28, 2018) The programs provide business development, loan assistance and mentorships to eligible owners. Hundreds have applied in the past year. But “pot equity” has struggled with growing waitlists, and some participants allege that the programs aren’t fair to the people they’re meant to be helping. Cities such as Oakland have created incubator programs that pair an established marijuana company, called a non-equity business, with an equity cannabis business — run by an entrepreneur whose background might otherwise make it hard to get into the pot industry.
California’s Cannabis Edibles Market (CA – Cannabis Products)
Investing News (December 26, 2018) While the cultivation and concentrates markets are getting most of the buzz, it’s the edibles market that represents one of the strongest sectors for growth in the cannabis space. This market sector is driven in large part by new users and those focused on health and wellness who want a smoke-free cannabis experience. There are signs this consumer segment is already flooding into the California cannabis market.
Legal Marijuana Industry Celebrates A Year Of High Times Amid Global Gains (USA – Cannabis Growth)
TIME Magazine (December 27, 2018) The last year was a 12-month champagne toast for the legal marijuana industry as the global market exploded and cannabis pushed its way further into the financial and cultural mainstream. Liberal California became the largest legal U.S. marketplace, while conservative Utah and Oklahoma embraced medical marijuana. Canada ushered in broad legalization, and Mexico’s Supreme Court set the stage for that country to follow. With buzz building across the globe, the momentum will continue into 2019.
Growing Like A Weed: A Look At Marijuana Milestones In 2018 (USA – Cannabis Industry)
CBS News (December 28, 2018) It took less than a week for the Trump administration to kill the considerable buzz created last Jan. 1 when California’s broad marijuana legalization law took effect, creating the largest legal U.S. cannabis marketplace. Then-U.S. Attorney General Jeff Sessions rescinded a policy shielding state-licensed medical marijuana operators from federal drug prosecutions. The move sent a chill through the nascent legal industry. But ultimately it had little impact because federal prosecutors around the country showed little interest in going after legal operators.
What’s Really Behind Americans’ Increased Support For Marijuana Legalization? Study Sheds Light (USA – Cannabis Support)
Marijuana Moment (December 27, 2018) Americans’ views on marijuana have rapidly evolved in recent years, with a strong majority now in favor of legalization. But what’s really been behind the attitude shift? While shifting attitudes toward various issues can often be interpreted as generational shifts—with younger people replacing older ones and having their views more strongly represented—that’s not the case with marijuana. The study found that “changes in cannabis legalization support since the 1980s are largely the result of intra-cohort changes in attitudes as opposed to cohort succession,” meaning that views shifted across generations at roughly the same time.
Farm Bill’s Hemp Legalization Is Poised To Boost These 2 Stocks (USA – Cannabis Investments)
The Street (December 26, 2018) The passage of the 2018 Farm Bill, formally known as the Agriculture Improvement Act of 2018, last week has inspired investors at a time of a decidedly non-inspiring stock market. Even though stocks are sliding at a rate not seen since the Great Depression, people are still looking for ways to play the new legalization of hemp.