On November 8, 2016, California voters passed Proposition 64 – the Adult Use of Marijuana Act. This law has many effects for the use and sale of marijuana within California. While the guidelines for personal use are fairly clear within the law, cannabis business owners face greater uncertainty. Their challenge is to adapt their business model to the new forms of industry regulation.
Business experts expect California’s cannabis industry to quickly become the largest marijuana market in the country once the provisions of Proposition 64 take effect. For reference: Washington and Colorado had over one billion dollars’ worth of marijuana sales in the first half of 2017. California, by comparison, had over two billion dollars in sales of just medical marijuana in 2016, before the bill had even passed, The Hill reported. Financial experts claim that few industries offer the growth potential of legal marijuana. Yet this profitable and exciting market is also young and untested, and its regulations change almost daily. Successful cannabis businesses must adapt their business models and prepare for the coming effects of Proposition 64. Continue reading