The state’s new plan to rescue the cannabis industry comes just five years after voters approved recreational sales. But the state isn’t sure how to make it work. In order to spur growth, the government is offering $100 million to the state’s legal cannabis industry. But the money won’t go to any individual marijuana businesses – it will go to local agencies that issue provisional licenses. The money is intended to help California’s struggling legal marijuana industry by speeding up the process and allowing more companies to open. And, according to the announcement, the grants will only support local companies that allow for a licensed operation.
The $100 million plan is a welcome relief for the struggling marijuana industry in California. However, the state must provide a clear plan for marijuana businesses to make the transition from provisional licenses to regular licenses. And, growers must also review their negative environmental impact and develop a mitigation plan to minimize their impact. So far, 82% of California’s licensed businesses are operating under provisional licenses.
As of July 2018, there are only 700 fully licensed and regulated marijuana businesses in California. In addition, three-quarters of California’s cities have banned the retailing of cannabis products. So, how will the new state plan help those companies? Gov. Gavin Newsom’s new $100 million plan will help California’s growing cannabis industry get off the ground. The plan will help cannabis businesses move from provisional licenses to regular licenses.
The $100 million plan will give grants to cities and counties that are struggling with the process of transitioning from provisional to regular licenses. It is also a good way to support local businesses that are already up and running. But, it is important to remember that the money will only go to cities that already have a legal marijuana program. That way, it won’t incentivize local governments that have banned cannabis stores.
Gov. Newsom’s plan is unlikely to help struggling cannabis businesses because it won’t be enough to save the industry. The state’s legal marijuana laws already restrict the business of cannabis retailers and have been difficult to enforce. The funding from the $100 million plan would benefit Los Angeles and other cities across the state. Many of these businesses have been closed due to the high taxes and regulations that accompany the industry.
The state is concerned that the legal marijuana industry is still too expensive and too slow to compete. The initial costs to open a regulated dispensary start at $250,000, making them unaffordable for many smaller businesses. The cities didn’t roll out any programs to encourage legacy sellers to become licensed. The cities were worried that the state would be sued for helping the illegal sellers. Furthermore, the licensing process can be expensive. The state wants to keep the legal marijuana industry a stable and regulated market.
A recent announcement by the state’s legislature outlines a plan to rescue the state’s struggling legal marijuana industry. The state wants to keep the legal marijuana industry in California, despite the fact that many companies are still operating on provisional licenses. Nevertheless, the money will be used to streamline licensing and to support the legitimate companies. There are many challenges in the process of transition, so the money will be crucial for the success of the cannabis industry.
The state has also warned against leaving the system without renewing licenses. Its efforts to save the industry include grant funds for local governments and agencies that have tentative licenses. The money will also go to cities that offer equity financing to cannabis seeds us minority-owned cannabis companies. In addition to these funds, the state has also set up various initiatives for the cannabis industry to improve local operations and increase revenue. This is great news for all of us, but it also helps existing businesses.