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California wants to throw $100m at its mismanaged retail cannabis sector

Lawmakers want to pay cities to help cannabis businesses navigate the state’s oppressive bureaucracy.

California’s nascent legal recreational marijuana industry is so heavily taxed and regulated that the black market still dominates. It’s so burdensome to try to get conventional permission to grow and sell marijuana the “legal” way that thousands of dispensaries operate without proper licenses. Government officials have been attempting to crack down on the problem and force them to close their doors.

On Monday California lawmakers attempted to address this problem in a very California way: Assembly members authorized a $100 million subsidy to help potential marijuana vendors get properly licensed.

As the Los Angeles Times explains, the subsidy isn’t going to the dispensaries or growers themselves—not that it should. The $100 million is instead going to local government agencies and cities so they can “hire experts and staff to assist businesses in completing the environmental studies and transitioning the licenses.”

California’s environmental regulations, most specifically the California Environmental Quality Act (CEQA), make it extremely expensive (and sometimes even impossible) to build anything new or improve anything in the state. CEQA requires businesses, entrepreneurs, and developers to pay for extensive environmental impact studies. It also permits pretty much anybody to file suit to try to stop construction using any sort of claim of potential environmental harm, no matter how tenuous. It is being used by opponents of marijuana operations (typically neighbors who don’t want them around) to try to block cannabis operations.

To Read The Rest Of This Article By Scott Shackford on Reason

Published: June 16, 2021

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