CANNABIS IN CALIFORNIA

by | Apr 28, 0206 | Industry News | 0 comments

The Mammoth Momentum for legalization in 2016

According to cannabis research legal marijuana is the fastest growing industry in the United States, and it very well could keep this title, or stay very near the top in terms of growth for years to come. A compound annual growth rate for the legal marijuana industry of 30%. This would mean the estimated $5.4 billion in legal marijuana sales from 2015 could translate into north of $22 billion in legal sales by 2020, with or without federal legalization of the drug.

California is arguably the biggest prize for the marijuana industry. California was the first state to legalize medical marijuana back in 1996, so it seems like a logical choice to put a recreational ballot initiative in front of voters this fall.

California by itself is one of the largest economies in the world, so gaining approval would be a monumental leap forward for the marijuana industry. Medical marijuana is already a $1 billion-plus business in California, so we can only presume that recreational marijuana would more than likely top $1 billion in sales annually as well, resulting in an estimated $519.3 million in sales and excise tax revenue per year.

Americans also have a generalized softening of opinion from the general public toward marijuana. In a nationwide Gallup poll conducted in the mid-1990s, just a quarter of respondents wanted to see marijuana legalized. By October 2015, this figure had jumped to 58%, tying an all-time high in this particular Gallup poll. Favor-ability toward legalization is even higher for medical marijuana, with a CBS News poll in April 2015 showing support at 84%.

Needless to say, marijuana has a ton of wind in its sails at the moment. The key is whether or not it can keep up this momentum into and after the November elections.

So if you’re that Bud Tender, Hand Trimmer or Trimming machine operator in California, You my friend is very lucky to be in the cannabis industry! Yeah!

~ Michael Garay

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GMP refers to the Good Manufacturing Practice Regulations promulgated by the US Food and Drug Administration under the authority of the Federal Food, Drug, and Cosmetic Act (See Chapter IV for food, and Chapter V, Subchapters A, B, C, D, and E for drugs and devices.) These regulations, which have the force of law, require that manufacturers, processors, and packagers of drugs, medical devices, some food, and blood take proactive steps to ensure that their products are safe, pure, and effective. GMP regulations require a quality approach to manufacturing, enabling companies to minimize or eliminate instances of contamination, mixups, and errors. This in turn, protects the consumer from purchasing a product which is not effective or even dangerous. Failure of firms to comply with GMP regulations can result in very serious consequences including recall, seizure, fines, and jail time.

GMP regulations address issues including record keeping, personnel qualifications, sanitation, cleanliness, equipment verification, process validation, and complaint handling. Most GMP requirements are very general and open-ended, allowing each manufacturer to decide individually how to best implement the necessary controls. This provides much flexibility, but also requires that the manufacturer interpret the requirements in a manner which makes sense for each individual business.

GMP is also sometimes referred to as “cGMP”. The “c” stands for “current,” reminding manufacturers that they must employ technologies and systems which are up-to-date in order to comply with the regulation.