Smaller farmers, mom-and-pop businesses and existing medical marijuana companies will have a place in California’s recreational cannabis industry if voters pass a legalization measure this fall.
That’s the message California Lt. Gov. Gavin Newsom, a big supporter of the legalization measure, gave marijuana business professionals, speaking to roughly 1,000 attendees gathered at a conference hosted by the National Cannabis Industry Association. Newsom clearly tried to sway fears within California’s cannabis sector, and beyond, that a small number of corporate interests will dominate the state’s market. “We have got to protect the small cultivators” as well as entrepreneurs who don’t have access to millions of dollars, said Newsom.
To that end, the Adult Use of Marijuana Act – as the California initiative is called – includes language meant to protect the industry “against monopolistic practices” for five years, noted Newsom, the highest-ranking state politician to support the legalization measure.
For example, any adult-use cultivation business that operates an outdoor facility larger than one acre or an indoor building that exceeds 22,000 square feet would be prohibited from getting a license until January 2023. All legal rec growers prior to that date would have to fall within those limits.
Under the proposed law, state licensing authorities also would be required to consider whether issuing a particular applicant a permit might stifle competition or create a monopoly.
Newsom stressed the need to ensure minorities have a place in the cannabis industry, and he also said existing medical marijuana businesses that have proven they can operate responsibly will have a leg up in obtaining a recreational license.
“For those who have been good actors in the state of California, you’re going to be prioritized,” he said.
Newsom’s assurances come as both supporters and critics of legalization around the nation have voiced concerns about the possible emergence of “Big Marijuana” that puts profit first, much like Big Tobacco.
But not everyone shares that view. A new study contends those fears are overblown, and that policy makers should instead focus on harmful practices – such as marketing to minors.
While California is already ripe for legalization, Newsom cautioned businesses about the dangers of overestimating the chances of success. Potential headwinds on the horizon could sink the entire effort, he warned.
“It’s not a done deal by any stretch of the imagination,” Newsom said. “Don’t just think that … this is going to be easy. We’ve got work to do” Newsom urged the industry to take these concerns seriously, adding that the legalization measure is structured in a way that it can incorporate changes going forward.
“It allows us to make fixes without going back through voters,” Newsom said. “We will make fixes, we will adjust, we will address legitimate concerns.”
In the meantime, for all them Hand trimmers, Bud Tenders, Trim machine Operators, presently working for those smaller cultivators, you heard it from the 2nd man in command in California, you’re in good hands, but work hard, and don’t get complacent, competition from the big boys maybe knocking on the door, down the road!
Michael Garay ~