Article: Greedy Politicians Are Already Wrecking the Legalized Cannabis Industry

Fee.org

Here’s what they say by way of introduction

So why has California failed to replicate the booming green economies of other states? Unfortunately, the answer to this question is the root of the majority of the state’s problems: too much regulation and taxation.

Setting up shop in California’s heavily regulated economy is hard enough for regular businesses, but when a substance like cannabis is involved, the process becomes all the more complicated.

California currently has a ban on marijuana delivery services, which has made it more difficult for “potrepreneurs.”

For starters, business owners have to seek approval not only from the state but from local municipalities as well. Unfortunately, many cities have instituted their own bans on recreational cannabis. Of California’s 482 different cities, only 89 actually allow recreational dispensaries. Other states have faced this problem, but many dispensaries have taken advantage of a loophole in the system.

By offering product delivery, many dispensaries have been able to expand their services to cities where the dispensaries themselves have been banned, but the use of the plant is still legal. California currently has a ban on marijuana delivery services, which has made it more difficult for “potrepreneurs” to meet the demands of those living in cities where dispensaries are still illegal. However, the Bureau of Cannabis Control is looking at a proposal that would put delivery of the plant back on the table, which would help boost sales across the state.

Even those living in one of the 89 cities where retail is permitted are still subjected to layers of regulation that make it difficult to get a business up and running. Having to seek licenses from both the state and the city is difficult enough on its own, not to mention expensive. But prospective dispensary owners must also comply with rules and regulations handed down not only from the text of the Medicinal and Adult-Use Cannabis Regulation and Safety Act but also from the Bureau of Cannabis Control and any local governments as well. This makes the whole process extremely tricky to navigate.

As Dale Gieringer, director of California NORML told the Los Angeles Times,

The cannabis industry is being choked by California’s penchant for over-regulation. It’s impossible to solve all of the problems without a drastic rewrite of the law, which is not in the cards for the foreseeable future.

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