Gavin Newsom has been really working hard on making the legal cannabis market grow and thrive. The removal of the cultivation tax was a huge step forward. Although there are other things the state is focused on that will work really well for the CA cannabis market.
In a recent article, Newsom has quoted what his vision if for the changes he is working on:
“This is [the] beginning of a process from my humble perspective, in terms of my thinking,” Newsom continued. “This will be a multi-year process to get that black market, get it on the retreat—not the ascendancy—and to get the retail and responsible adult-use market on steady ground.”
If the state focused on getting the legal market to be able to compete with the illegal market, then we are in a really strong place. CA has a thriving illegal market. The focus on growing the legal market is going to go a long way in allowing the CA cannabis market to grow.
“It is my goal to look at tax policy to stabilize markets; at the same time, it’s also my goal to get these municipalities to wake up to the opportunities to get rid of the illegal market and the illicit market and provide support and a regulatory framework for the legal market,” Newsom said
The local municipalities have been dragging their feet on approving dispensaries. If Newsom can get them to approve more retail locations, the improved access will allow the legal market to grow and even eat away at the illegal market.
I’m bullish on CA cannabis market. I think we are at the start of an amazing fun ride in the CA cannabis market.