California's marijuana market was supposed to be the industry gold standard — a multibillion-dollar success story and template for others to follow. Not only did the state fall short of expectations, but it has turned into a cautionary tale of an overregulated, overtaxed disaster.
That is bad news for Gov. Gavin Newsom (D-CA), who supported the push to legalize marijuana and has bragged about San Francisco's Amsterdam-style cafes. The harsh reality is that more and more cannabis producers and dispensary owners are being driven out of business, and the once-thriving industry is in serious need of a lifeline.
"The cost of compliance is just too high," Joshua Kesselman, publisher of High Times magazine, told the Washington Examiner. A string of broken promises by the government, legislative missteps, and burdensome regulations and taxes have left many growers and dispensary owners struggling.
For the first time since adult-use marijuana was legalized nearly a decade ago, more people are leaving California's cannabis industry than entering it. There are now 10,828 inactive and surrendered cannabis licenses in the state and only 7,975 active ones, according to the Department of Cannabis Control's data dashboard.
Read more at Washington Examiner
