“The taxes are just too, damn high,” is the sentiment from most Californians and it’s now true for medical cannabis patients, too.
PAN recently asked patients and providers how the new rules are affecting them. Many patients reported no longer using retail outlets due to the cost and now use some other source, the un-regulated market.
Shop owners are feeling this, too. They report lower numbers of visits since the new taxes and fees took effect. Some are frustrated with what they call rogue shops in their area, and state they know some of their patients have found growers to help supply them.
Cultivators appear to be the most disgruntled with the licensing process, on both the local and state level. In February of this year it was reported that only 0.78% of the estimated growers in California had been approved for a temporary license.
The California Growers Association has filed a lawsuit against California Department of Food and Agriculture, the state agency that issues cultivation licenses. The suit calls out new provisions in the regulations that allow a medium license holder to apply for an unlimited number of small cultivation licenses.
The suit goes on to argue that Prop. 64 allowed a 5-year window for small growers to get established before the state issues what many refer to as the mega-licenses. This new policy of “stacking” as the lawyers call it violates the intent of the voter initiative by basically creating a loophole to allow large-scale cultivation operations now.
California is not seeing the revenue it projected from the cannabis industry due to all of these issues.
California is not seeing the revenue it projected from the cannabis industry due to all of these issues.
PAN continues take feedback, monitor the cannabis industry, work with the California legislature and help patients with Compassionate access.
-----
Patient Advocacy Network is a charitable 501(c)(3) and needs your support.
Please click the Donate button on this page and make a $25.00 donation. You can also sign-up to be a monthly sponsor - $5 - $25 monthly donations go a long way!
All contributions directly benefit the programs and services of Patient Advocacy Network. A tax-deductible receipt will be provided.
Thank you!