By Michael R. Blood | Dec 5, 2016 | Policy
California Treasurer John Chiang has appealed to President-elect Donald Trump for guidance on how the state’s projected $7-billion marijuana industry can participate in the nation’s banking system while cannabis remains illegal under U.S. law.
California voters last month approved Proposition 64, which legalized the recreational use of marijuana, beginning in 2018. Largely at issue is how the state will collect an estimated $1-billion in annual taxes from legal pot sales and cultivation, when cannabis businesses can face obstacles opening bank accounts, getting loans or obtaining insurance.
“[The] conflict between federal and state rules creates a number of difficulties for states that have legalized cannabis use, including collecting taxes, increased risk of serious crime and the inability of a legal industry under state law to engage in banking and commerce,” Chiang wrote to Trump.
THE REMAINDER OF THE ARTICLE CAN BE FOUND AT: https://www.civilized.life/articles/california-trump-economy-laws/
DEC. 2, 2016, 9:31 A.M. LA TIMES
Just weeks after Californians voted to legalize recreational use of marijuana, State Treasurer John Chiang on Friday appointed a working group to figure out how to address problems caused by the unwillingness of federally regulated banks to handle money from pot businesses.
Chiang also sent a letter to President-elect Donald Trump and members of California’s congressional delegation seeking guidance in finding a solution.
Marijuana remains an illegal drug under federal law, and banks regulated by the U.S. government have refused to provide financial services to cannabis-related firms.
“This conflict between federal and state rules creates a number of problems for the states that have legalized cannabis use, including difficulties collecting tax revenue, increased risk of serious crime, and the inability of a newly legal industry under state law to effectively engage in banking and commerce,” Chiang wrote to Trump and those he asked to serve on the working group.
The working group is made up of representatives from law enforcement, the marijuana industry, banks, taxing authorities and local government agencies, said Chiang, who is a candidate for governor.
THE REMAINDER OF THE ARTICLE CAN BE FOUND AT: http://www.latimes.com/politics/essential/la-pol-ca-essential-politics-updates-california-treasurer-asks-1480699532-htmlstory.html
States are the laboratories of democracy, so let them experiment.
Corrections & Clarifications: An earlier version of this column misidentified one of the states that legalized non-medical marijuana sales.
As of last week, voters in California and seven other states have passed ballot initiatives to allow for-profit companies to produce, distribute and sell non-medical marijuana. With more than 65 million people living in states that have passed marijuana legalization, and a Gallup poll showing that 60% of the country supports legalizing marijuana use, national legalization may seem inevitable.
As goes California, so goes the nation, right?
the remainder of this article can be found at: http://www.usatoday.com/story/opinion/2016/11/30/marijuana-legalize-states-medical-recreational-column/94553192/
BY MARCY KREITER @MARCY KREITER ON 11/30/16 AT 8:59 PM
Legalization of recreational use of marijuana could mean a tax bonanza for California with tax collectors already taking the first steps toward getting a handle on the emerging industry.
The California Board of Equalization approved a proposal Tuesday to ask for funds to hire staff in anticipation of 2018 when legalization of recreational use kicks in after California voters decided Nov. 8 to approve Proposition 64. As many as 25,000 cultivators are expected to register and begin paying taxes. The board expects to need $20 million by 2021 to support a staff of 114.
People have been growing weed illegally in California for decades, some grows operated by drug cartels. Board member Diane Harkey said no one knows how the state is going to bring them into the system.
“It’s just going to be the wild, wild West out there,” board member Jerome Horton told Medical Xpress. Horton said he thinks the board will need a lot more staff and funding than what was approved this week.
Because of federal prohibitions, the board and local taxing bodies will have to figure out how to collect those taxes. Federal law prohibits banks and credit card companies from handling money associated with the drug trade, forcing many marijuana businesses to operate on a cash-only basis.
Marijuana currently is still listed as a Schedule I drug and earlier this year the Drug Enforcement Agency refused to reclassify it.
More than 65 million people now live in states that allow some form of marijuana use. A recent Gallup poll indicates 60 percent of Americans support legalization compared with 12 percent in 1969.
In Colorado, the first state to allow recreational use of marijuana and with a population a seventh the size of California’s, tax revenue from both medical and recreational sales totaled $134 million in the first nine months of this year.
the remainder of the article can be found at: http://www.ibtimes.com/marijuana-legalization-california-looking-1b-tax-bonanza-legal-pot-2453069
Andrew Seng Sacramento Bee file
In the weeks since Californians voted to legalize marijuana for recreational use, the phones have been ringing more intensely and the flow of walk-in patients has picked up at 420 Med Evaluations, a midtown Sacramento clinic specializing in medicinal pot referrals.
The passage of Proposition 64 on Nov. 8 instantly allowed adults 21 and older to consume marijuana, regardless of medical need. Along with that, went the thinking, people seeking pot for pleasurable pursuit no longer had to endure the inconvenience of going to a doctor and citing a physical ailment to get a medical recommendation to legally light up a joint.
But the cannabis hopefuls showing up at marijuana dispensaries got a bummer of a realization: Marijuana stores won’t be selling recreational weed anytime soon. Proposition 64 will be phased in over the next year, as state officials and willing local governments set up regulations for retail sales. Estimates are that retail licenses could be available by mid-2017 – or maybe as late as Jan. 1, 2018.
Read more here: http://www.sacbee.com/news/state/california/california-weed/article117403263.html#storylink=cpy
LOS ANGELES — MedMen likens itself, as many cannabis companies do, to an early tech startup. Its West Hollywood dispensary looks a bit like an Apple store, with samples of product in polished glass cases and information about each on iPads. In a grow facility in Sun Valley, north of Los Angeles, marijuana plants grow in coconut fiber, sustained by drip irrigation and marked by thin plastic labels stuck in soil. Beyond the dispensary and cultivation center, the company offers “turnkey management services” to others in the cannabis space and boasts a $100 million venture capital fund.
This is the future of legal marijuana in California: Diversification, slick branding and professional investment.
Marijuana is already as big a business as coffee and Indian gaming, with analysts estimating $30 billion in annual consumer spending. The trouble is, only one in every five of those dollars are currently spent on legal products. The rest, some $24 billion annually, ends up in black-market pockets, according to a 2016 cannabis report from the Cowen Group, a New York-based market research firm.
But more and more of that money will come out of the shadows in the next two years. This month, voters legalized recreational marijuana use in four states and medical marijuana in four more. California, home to 12 percent of Americans, is expected to triple the size of the legal market when the state begins issuing licenses in 2018. Vivien Azer, a cannabis analyst with Cowen, believes the nation’s legal market will grow ninefold over the next decade, with consumer spending on recreational and medical marijuana hitting $50 billion by 2026.
“Formalizing the informal market alone is a $25 billion opportunity,” Azer wrote in a September report.
the remainder of the article can be found @ http://www.usatoday.com/story/money/nation-now/2016/11/18/california-marijuana-industry-25-billion-opportunity/94074848/
SUNDAY, NOVEMBER 13, 2016 AT 11:01 A.M.
Medical pot advocates chose from more than 50 weed vendors.
Californians have been pushing for the legalization of recreational weed for a long time now. And last week their weed dreams came true. Proposition 64, which legalizes the use of recreational marijuana, was passed last week and we’re here to give you all the background info on the proposition and tell you what exactly this means for California now.
California Legalizes Recreational Marijuana
After a long battle, Proposition 64, California’s recreational marijuana legalization initiative, has been approved by California voters.
the remainder of the article can be found at@ http://www.laweekly.com/news/everything-you-need-to-know-about-the-legalization-of-marijuana-in-california-7593952
Cannabis will be taxed more than tobacco, marketed like wine, funded like the riskiest of start-ups and grown under bank-like security.
That’s the emerging vision of what California’s consumer market for marijuana, expected to be worth $6 billion by 2020, is going to look like after voters on Tuesday approved recreational use of cannabis.
Big money won’t be made overnight — it will take at least a year to roll out a state licensing system that will boost investor confidence in California cannabis.
Acreage limits, federal laws that bar banks from participating in the cannabis economy and block interstate movement of the product, and many local political issues are likely to cause big corporations to stand on the sidelines for a while, according to industry experts.