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Planning to cultivate cannabis? Emerging news will come as a breath of fresh air for you. Ever since cannabis became legal in California, it has induced a wave of new changes. The industry is continuously booming and is projected to be a $5.6 billion industry by 2020. This potential has attracted a healthy number of investors and growers alike.
While the prospect might be lucrative, continuously fluctuating laws have served as a challenge even for the most motivated bunch of licensed growers. Well, the latest update is sure to bring a sigh of relief
One of the major challenges for licensed cannabis cultivators has been the expiry of temporary licenses. The source of the problem is not just limited to this fact; it’s the inability of the state to replace these licenses which eliminates the growers from the legal marketplace.
The approval of the bill by Jim Wood and state senate Mike McGuire has changed the mechanics entirely. The bill earned a complete bipartisan approval providing much-needed relief for the 1000s of legal cultivators.
The bill received heavy support from over 200 organizations including Humboldt and Mendocino county boards. Passed on a 32-4 vote, the bill is now awaiting approval from the assembly which would extend temporary licenses until they are replaced.
Quoting the bill, Mike McGuire mentioned that this development would extend almost 7000 temporary licenses till September and will prevent the influx of the cultivators into the shady territory—black market. Falling into the illicit market can pose a serious threat to the aim of keeping the industry within legal boundaries.
The executive director of the California Cannabis Industry Association, Lindsay Robinson added that SB-67 is essential for stabilizing the cannabis industry and is a good way to prevent the impending crisis.
A considerable number of temporary permit holders have been growing cannabis for generations and expiry of licenses can push them into the illegal black market. Mcguire mentioned that this is a challenge that cannot be ignored.
For instance cultivators in Sonoma County have almost 98 temporary licenses and some have already expired.
Now, cultivators with expired licenses are not allowed to enter the legal marketplace and sell the product. This puts them on danger of being termed invalid and shut down.
Also, this entire loophole creates a backlog of license applications which further complicates the process. Considering the same, Sonoma County’s cannabis program manager, Tim Ricard said that the state needs to eliminate the backlog of applications or “create some sort of legal extension or fix”.
Licensing is a 2-step process which includes getting a local license and then applying for a state permit. But, the state and local officials failed to create a mechanism which could provide a streamlined process for licensing. As a result, this caused substantial backlog which prompted the need to pass the SB-67 bill.
Most cannabis growers were initially offered temporary licenses and the transition to provide annual licenses was rather slow. The bill is definitely an attempt to speed up this licensing process and mend the loopholes.
The cannabis industry is pacing up faster than ever. It marked an impact worth $16 billion in 2017. Moreover, the legal cannabis market place is projected to be worth $5.6 billion by 2020. The best thing about functioning within legal boundaries is that you are no longer restricted.
Another interesting fact which cannot be missed is that California attracted a whopping $100 million spending from leisure tourists in recent years. This proves that the industry is forever expanding and the legal marketplace is a good way to keep the profits and money influx in check.
The illegal market thrives on the failure of legalization. So, establishing a legal framework governing cannabis growth and use is a good way to cap the shady underground business. In the long run, it can completely eliminate the unlawful practice and make quality cannabis accessible to all.
The approval of SB 67 bill is definitely a welcome change for licensed cannabis growers. Extension of limit can reduce the backlog of applications and inject the marijuana cultivators with an optimistic vibe. In the long run, it can transform the entire working mechanism of the cannabis industry and enable cultivators to grow high-quality yield.