Articles Tagged with California cannabis licensing

San Jose, a city known for its thriving cannabis industry, is facing a significant drop in cannabis tax revenue this year. The decline, projected to be in the millions, is attributed to the growing competition from the black market and cannabis delivery services. With a predicted $19 million budget shortfall for next year, boosting tax revenue from the cannabis sector remains crucial.

The city’s budget surplus currently stands at $35 million. However, the decline in cannabis tax revenue is a significant concern. In response, the San Jose City Council has shown interest in easing the regulatory burden on cannabis businesses. Recent moves include loosening cannabis business licensing laws governing where dispensaries can establish themselves and reevaluating penalties placed on legal businesses.

Illegal sellers appear to be capitalizing on the market, often operating as seemingly legitimate delivery services, without generating any tax revenue for the city. Sean Kali-rai, a lobbyist and founder of the Silicon Valley Cannabis Alliance, expressed his concern over the growing prevalence of unauthorized dealers. He stressed the importance of the city’s Division of Cannabis Regulation in overseeing and regulating the cannabis market.

State regulators have suspended hundreds of marijuana business permits, in effect halting some 5 percent of the state’s legal cannabis business operations, disrupting supply chains and retail/distribution networks statewide. Los Angeles cannabis business licensing

Some 400 companies have been ordered to halt all transactions until they ensure their licenses are brought up to “active” status.

The notices were issued by the California Bureau of Cannabis Control on Nov. 1st, directed to delivery services, retailers, microbusinesses and distributors, informing them they will no longer be allowed to lawfully conduct business until they implement the appropriate track-and-trace system credentialing and training mandated by the state.

The state agency oversees more than 2,500 marijuana businesses, each of which hold either an annual or provisional license. Meanwhile, the California Department of Public Health is in charge of handling oversight of more than 930 marijuana manufacturers and the California Department of Food and Agriculture is responsible for managing regulations and oversight of more than 3,800 cannabis farmers. Continue reading

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