Five Years Since Prop 64, California's Cannabis Industry Is in Disarray

It’s been five years since California legalized marijuana under Proposition 64 and opened the doors to a new legal market. Yet today, the majority of cannabis consumed here is not legal. A key reason: it’s difficult and costly to start and maintain a state-licensed cannabis business. Meanwhile, a robust system for setting up shop as part of the illicit market has been in place long before voters approved Prop 64. Last week cannabis farmers, business owners and advocates gathered at the State Capitol to demand reform to the burdensome tax system that’s frustrating businesses and growers of all sizes but making small businesses and farms especially vulnerable to collapse. In outlining next year’s state budget proposal this month, Gov. Gavin Newsom said he “supports cannabis tax reform and plans to work with the Legislature to make modifications to California’s cannabis tax policy to help stabilize the market.” We’ll take stock of California’s cannabis industry and proposed reforms.