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Supply and Demand Curves Starting to Become Efficient in California as Thousands of Cannabis Growers Call It Quits

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The struggles that California’s cannabis companies have been grappling with have been no secret. Still, it wasn’t until this year that a noticeable decline in the legal marijuana market started to unfold. According to permit statistics from the California Department of Cannabis Control, the market has shrunk by approximately 29%.

 

As of October 24, the state had only 9,900 active business licenses, marking a 28.5% decrease since July 2022, when there were 12,719 active provisional and annual cannabis business licenses, as reported by the DCC.

What Does the Stat Says

During the COVID-19 pandemic, the state’s marijuana market exhibited robust growth, benefiting from stay-at-home orders and emergency financial assistance. In July 2021, the California Department of Cannabis Control (DCC) reported 11,335 active business licenses. Over the subsequent year, the market expanded by more than 12%.

 

The most significant changes were observed in the cultivation sector. In July 2021, there were 7,897 active marijuana cultivation permits, which increased to 8,453 within a year but subsequently dropped to 5,727 as of October 24 this year.

 

The manufacturing and distribution sectors also experienced substantial fluctuations. In July 2021, there were 877 cannabis manufacturers, and this number grew to 911 over the next 12 months before decreasing to 768 this month. Among distributors, there were 1,168 in July 2021, 1,448 in July 2022, and only 1,297 this month.

 

However, not all sectors have experienced a similar level of decline. The retail, delivery, and microbusiness permit categories have steadily grown over the past two years. Nonetheless, industry insiders suggest that the opening of new stores has been counterbalancing the closure of many well-established shops in oversaturated cities.

 

Recent examples of closures include Liberty Cannabis-owned shops in both San Francisco and Los Angeles, as highlighted by marijuana consultant Hirsh Jain of Ananda Strategy. Additionally, several multistate operators, such as Florida-based Trulieve Cannabis Corp. and Arizona-based 4Front Ventures Corp., have exited the California market. This is due to the challenging market conditions, a move echoed by numerous smaller companies and brands.

 

Despite the challenging trends, retail storefront permits showed remarkable resilience. In July 2021, they numbered 774, then surged to 1,056 a year later, and as of this month, they have reached 1,229, according to the DCC.

 

Delivery licenses, on the other hand, were at 322 in July 2021, increased to 475 in July 2022, and have since stabilized at around 477. Microbusiness permits, which often include retail operations, were at 297 in July 2021, grew to 376 within a year, and currently stand at 402.

Struggles To Pay Tax

 

The California cannabis industry is teetering on the edge of what some are calling an “extinction event” as cannabis shops struggle to stay afloat, grappling with missed tax payments and drowning in millions of dollars of debt.

 

Debt troubles have haunted the industry for years, with a 2022 report estimating that the collective debt burden exceeded $600 million. Nevertheless, a recent alteration in tax regulations, which took effect this year, has prompted stakeholders to worry that the burgeoning debt crisis could potentially culminate in a severe disaster.

 

In reaction to these apprehensions, a San Francisco lawmaker proposed a bill in the state legislature to enforce stricter measures on cannabis businesses that cannot fulfill their debt responsibilities.

 

A significant shift in state law has shifted the responsibility for paying cannabis excise taxes from distributors to retailers. Historically, retailers have faced the most challenges in meeting their financial obligations, and recent state tax data obtained by SFGATE indicates that many shops lack the necessary funds to cover their state excise taxes.

 

More than 13% of California’s retailers, equivalent to 265 cannabis dispensaries, did not remit any tax payments, as reported by the California Department of Tax and Fee Administration. These businesses are now confronting a 50% penalty on their outstanding tax obligations, a financial blow that could prove fatal for many shops.

 

Furthermore, the number of affected shops could potentially increase. The state agency has revealed that it is still handling 581 tax returns, which may include retailers that failed to meet their payment obligations.

 

According to Michelle Mabugat, a cannabis attorney at the Greenberg Glusker firm in Los Angeles, the debt-related challenges are likely to force the closure of numerous shops in the state. She remarked that there’s been a mounting debt bubble over the past few years, reaching a breaking point. She anticipates many retailers going out of business this year, much like we witnessed with cultivators last year.”

 

Ali Jamalian, the owner of Sunset Connect, a cannabis manufacturer based in San Francisco, has observed pot shops with outstanding bills exceeding $500,000. He foresees the new tax structure triggering what he terms an “extinction event” for cannabis retailers in the state.

The persistent issue of debt has plagued the entire cannabis supply chain. Farmers have voiced concerns about not receiving payment for significant amounts of their products. Distributors have raised issues about non-payment by retailers and have resorted to blacklisting certain shops.

 

Furthermore, even the federal government has encountered payment issues. An analysis conducted last autumn by Green Market Report revealed that the ten largest cannabis companies in the country collectively owed over $500 million in unpaid taxes.

 

These financially strained retailers are now facing the possibility of closure due to the recent alteration in the state’s tax payment process. The state’s decision to transfer the responsibility for tax payments from distributors to retailers not only eliminated a source of financing (as retailers had been using excise tax collections to fund their operations) but also imposed a substantial penalty on cash-strapped retailers.

Conclusion

The California cannabis industry has faced significant challenges, with a 29% decline in active business licenses since July 2022. Despite growth during the COVID-19 pandemic, the cultivation sector saw fluctuations, and some multistate operators left the market due to its difficulty. However, the retail, delivery, and microbusiness sectors continued to grow, partly thanks to new store openings.

 

The shift in tax legislation, placing a heavier burden on retailers for paying excise taxes, has further strained the industry, with many retailers failing to meet their obligations. The industry’s future hinges on its ability to adapt to changing market conditions and proposed legislative solutions.

 

CALI WEED COMPANIES CAN’T PAY THEIR BILLS, READ ON…

DOPE DEADBEAT CANNABIS COMPANIES

DEADBEAT CANNABIS COMPANIES NOT PAYING THEIR BILLS IN CALI?



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Why are Women Buying So Much Weed?

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The conversation surrounding marijuana has transformed significantly over the past decade, particularly as legalization spreads across various regions. As societal attitudes shift, more women are exploring cannabis not just for recreational use but for its potential health and wellness benefits. A recent poll reveals that these benefits are a primary draw for women, while price remains a pivotal concern. This article delves into the reasons why women are increasingly turning to marijuana, the specific health benefits they seek, and the implications of pricing in this evolving market.

 

The Growing Interest in Cannabis Among Women

Historically, marijuana has been associated with negative stereotypes and stigma. However, as research highlights its medicinal properties, perceptions are changing. Women are at the forefront of this shift, seeking alternatives to traditional medications for managing health issues. The increasing acceptance of cannabis is reflected in various surveys indicating that women are more likely than men to use marijuana for therapeutic purposes.

 

Demographic Trends

 

Women aged 25-45 represent one of the fastest-growing segments of cannabis users. This demographic often seeks solutions for stress relief, chronic pain management, and mental health support—issues that significantly impact their quality of life. As more women become informed about the potential benefits of cannabis, their willingness to incorporate it into their wellness routines grows.

 

Health and Wellness Benefits of Marijuana

 

 1. Pain Relief

 

One of the most compelling reasons women turn to marijuana is for pain management. Cannabinoids, such as THC and CBD, interact with the body’s endocannabinoid system to help modulate pain perception. Conditions like endometriosis, fibromyalgia, and arthritis disproportionately affect women, making effective pain relief essential.

 

Studies have shown that medical marijuana can significantly reduce chronic pain symptoms. For instance, a study published in the *Journal of Pain Research* found that patients using medical cannabis reported a 64% reduction in pain. This evidence resonates with women seeking alternatives to opioids, which carry risks of addiction and adverse side effects.

 

 2. Anxiety Reduction

 

Anxiety is a prevalent issue among women, often exacerbated by societal pressures and responsibilities. Cannabis has been studied for its anxiolytic properties, making it an attractive option for those looking to manage anxiety without relying on prescription medications.

CBD is particularly noteworthy for its potential to alleviate anxiety without producing psychoactive effects. Research published in The Permanente Journal found that 79% of participants experienced reduced anxiety levels after using CBD oil. This finding is significant for women who may be hesitant to use THC-dominant products due to concerns about psychoactivity.

 

3. Improved Sleep Quality

 

Many women struggle with sleep disorders due to hormonal fluctuations, stress, or lifestyle factors. Cannabis has been shown to improve sleep quality by promoting relaxation and reducing anxiety.

A study from the University of Colorado Boulder indicated that participants who used cannabis before bedtime reported better sleep quality compared to those who did not use it. This is particularly relevant for women juggling multiple responsibilities that can interfere with restful sleep.

 

4. Menstrual Health Support

 

Menstrual discomfort is another area where many women find relief through cannabis use. The muscle-relaxing properties of marijuana can alleviate cramps and other menstrual symptoms.

While more research is needed in this area, many women report finding relief from menstrual symptoms through cannabis use. Some companies have developed products specifically targeting menstrual discomfort, such as CBD-infused creams and edibles designed for this purpose.

 

The Appeal of Natural Remedies

 

A Shift Toward Holistic Health Approaches

The growing interest in natural remedies reflects a broader trend toward holistic health among women. Many are seeking alternatives to traditional pharmaceuticals due to concerns about side effects and long-term dependency on medications. Cannabis is often viewed as a natural option that can provide relief without the risks associated with conventional treatments.

 

Empowerment Through Self-Care

The rise of self-care culture empowers women to take control of their health choices actively. By choosing cannabis as a wellness tool, many feel they are making informed decisions about their bodies and well-being an essential aspect of fostering a positive relationship with health management.

 

Pricing: A Barrier to Access

Despite the numerous benefits associated with marijuana use among women, price remains a significant barrier to access. As the market evolves with increased competition among producers, understanding pricing dynamics becomes crucial for both consumers and businesses.

 

 

The cost of cannabis products can vary widely based on factors such as location, product type (flower vs. edibles vs. concentrates), and quality. High prices can deter many women from trying or continuing to use cannabis for therapeutic purposes.

 

 

As of late 2023, average prices for cannabis products have fluctuated due to market changes. In some legal states, prices have dropped significantly averaging around $5 per gram which could enhance accessibility for consumers. However, premium products often command much higher prices.

 

The Impact of Legalization on Pricing

 

Legalization has led to increased competition among dispensaries and growers, which can drive prices down over time. However, taxes imposed on legal cannabis sales can also contribute to higher retail prices. Women seeking affordable options may find themselves navigating a complex landscape where product quality must be weighed against cost.

 

The Future Landscape of Cannabis Use Among Women

 

Increasing Acceptance and Education

 

As research continues to highlight the benefits of marijuana for various health issues, acceptance among women is likely to grow further. Education plays a critical role in this process; as more information becomes available about safe usage practices and product options tailored specifically for women’s health needs.

 

Tailored Products for Women’s Health

 

The cannabis industry is beginning to recognize the unique needs of female consumers by developing products specifically designed for women’s health issues from menstrual relief products infused with CBD to formulations aimed at reducing anxiety or enhancing sleep quality.

 

Market Trends Indicating Growth

 

Market trends indicate an increasing demand for female-focused cannabis products. Companies are starting to create brands that cater specifically to women’s wellness needs offering everything from tinctures designed for hormonal balance to edibles aimed at stress relief.

 

Conclusion

The growing interest among women in the health and wellness benefits of marijuana underscores a significant shift in societal attitudes toward this once-stigmatized plant, with its potential applications ranging from pain management to anxiety relief and menstrual health support, making cannabis an appealing alternative for those seeking natural remedies; however, pricing remains a critical concern that cannot be overlooked, as addressing affordability will be essential in ensuring that all consumers can access these beneficial products amidst an evolving market characterized by increased competition and changing regulations. Ultimately, education about both the benefits and costs associated with cannabis use will empower women—and all consumers—to make informed decisions regarding their health choices, highlighting that both awareness and accessibility will play vital roles in shaping the future landscape of cannabis consumption among women, a landscape defined by empowerment through informed self-care practices.

 

FEMALE CONSUMERS BUYING WEED, READ ON…

WOMEN 19 TO 30 BUYING CANNABIS AT RECORD RATE

FEMALES AGED 19 TO 30 ARE BUYING MARIJUANA AT A RECORD PACE!

 



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True or False, Matt Gaetz, Trump’s Pick for Attorney General, Will Legalize Marijuana in America?

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The winds of change are blowing through the cannabis landscape once again, and this time they’re coming from an unexpected direction. As we stand on the precipice of what could be a transformative period for cannabis policy in America, the appointment of Matt Gaetz as Attorney General under Trump’s incoming administration has raised both eyebrows and hopes across the cannabis community.

For those who remember the dark days of Jeff Sessions’ tenure as AG, when federal prosecutors were given free rein to interfere with state-legal cannabis operations, Gaetz represents a dramatic shift in perspective. Unlike his would-be predecessor, the Florida congressman has consistently supported cannabis reform, even voting in favor of federal legalization through the MORE Act – a rare stance among his Republican colleagues.

But before we break out the celebratory pre-rolls, it’s worth taking a closer look at what Gaetz’s appointment might really mean for the future of cannabis in America. While some industry veterans fear that any Trump administration will inevitably spell trouble for progress, others see reason for optimism. After all, Gaetz isn’t just cannabis-friendly by Republican standards – he’s been actively pushing for reform throughout his political career, from his time in the Florida legislature to his current role in Congress.

As someone who’s watched the evolution of cannabis policy for years, I find myself intrigued by this unexpected turn of events. Could a Trump-appointed, pro-legalization Attorney General be the key to finally ending federal prohibition? Or will the realities of partisan politics and bureaucratic inertia continue to keep cannabis in legal limbo?

In this article, we’ll dig deep into Matt Gaetz’s background, examine his track record on cannabis policy, and analyze what his potential appointment as Attorney General could mean for the future of legalization in America. Whether you’re a cannabis advocate, industry professional, or simply a curious observer, understanding this pivotal moment in cannabis politics has never been more important.

 

 

To be completely honest, before writing this article, I couldn’t have told you much about Matt Gaetz beyond recognizing his name from headlines. As someone who focuses primarily on cannabis policy and its broader societal impacts, I tend to avoid diving too deep into individual political careers. However, given his potential appointment as Attorney General and its implications for cannabis reform, I decided to take a comprehensive, unbiased look at who Matt Gaetz really is.

To achieve this, I compiled information from various sources across the political spectrum – from his own congressional biography to critical media coverage – and analyzed them to build a clearer picture of the man who might become America’s top law enforcement official.

What emerges is a fascinating study in contrasts. On the surface, Gaetz presents as a typical child of privilege turned political firebrand. Born into a wealthy and politically connected Florida family (his father Don Gaetz was a state Senate president and made millions in the healthcare industry), Matt grew up in a house famous for being featured in “The Truman Show” and followed his father’s footsteps into politics.

But dig deeper, and you find someone more complex than the typical MAGA politician he’s often portrayed as. While he’s earned nicknames like the “Trumpiest Congressman” and built his brand on fierce loyalty to Donald Trump, Gaetz has shown surprising independence on certain issues – particularly cannabis reform. As a Florida state representative, he helped draft medical marijuana legislation and has been openly supportive of broader reform efforts, with some former colleagues describing him as a “big-time proponent of marijuana.”

His political record is equally mixed. On one hand, he’s been a vocal advocate for criminal justice reform and cannabis legalization, voting in favor of the MORE Act to end federal prohibition – one of only three Republicans to do so. On the other hand, he’s been a controversial figure, making headlines for everything from storming secure impeachment hearings to facing serious allegations (though ultimately no charges) regarding sexual misconduct.

Personally, Gaetz seems to defy easy categorization. While his public persona is that of a conservative firebrand, his private actions tell a different story. He’s supported same-sex adoption rights, convinced his conservative father to do the same, and quietly raised a Cuban immigrant teenager named Nestor for years before publicly acknowledging their relationship. These actions suggest someone more nuanced than his public image might indicate.

So what does this mean for cannabis reform? Based on his record, Gaetz as Attorney General could actually be a positive development for the legalization movement. Unlike his predecessor Jeff Sessions, who was openly hostile to cannabis reform, Gaetz has consistently supported expanding access and ending federal prohibition. His understanding of the industry and its challenges, combined with his firsthand experience drafting cannabis legislation in Florida, suggests he could be an effective advocate for reform within the administration.

However, there are legitimate concerns. Gaetz’s controversial nature and polarizing personality could make it difficult for him to build the broad coalition necessary to achieve meaningful reform. Additionally, his close alignment with Trump might make some Democratic lawmakers hesitant to work with him, even on issues where they agree.

Rating his potential impact as Attorney General on cannabis reform, I’d give it a cautiously optimistic 7/10. While his personal support for legalization is clear and consistent, his effectiveness will largely depend on his ability to work across the aisle and maintain focus on reform efforts amid the many other responsibilities of his position.

One thing seems certain: having someone who openly supports cannabis reform leading the Department of Justice would be unprecedented. Whether Gaetz can translate that support into meaningful policy change remains to be seen, but at the very least, it suggests that federal cannabis enforcement wouldn’t be a priority under his leadership – and that alone would be a significant shift from previous administrations.

As the cannabis community grapples with the implications of Matt Gaetz’s potential appointment as Attorney General, I think it’s crucial that we all take a collective deep breath before jumping to conclusions. In my years covering cannabis policy, I’ve learned that snap judgments often miss the nuanced reality of political developments – and this situation is no different.

Yes, Matt Gaetz is a controversial figure with his share of personal and political baggage. But then again, who among us doesn’t have flaws? What interests me more than his controversies are the core principles he claims to champion – smaller government, increased personal liberty, and a more rational approach to drug policy. These aren’t just talking points; his voting record on cannabis reform actually backs up these stated beliefs.

Unlike previous Republican AGs who viewed cannabis as a moral evil to be stamped out, Gaetz brings practical experience in crafting marijuana legislation. His involvement in Florida’s medical cannabis program gives him firsthand knowledge of both the challenges and opportunities in creating effective cannabis policy. This experience could prove invaluable in navigating the complex landscape of federal legalization.

Moreover, Gaetz seems to understand something that many politicians miss: the current Schedule III proposal is a half-measure that could potentially do more harm than good. His previous statements expressing concern about Big Pharma’s potential takeover of the cannabis industry suggest he grasps the bigger picture. Perhaps having someone in the AG’s office who understands these nuances could help push us toward more comprehensive reform.

Looking ahead, I’m cautiously optimistic. While Gaetz’s appointment might not be the ideal scenario some cannabis advocates hoped for, it certainly isn’t the doomsday scenario others feared. The momentum behind cannabis reform hasn’t slowed – if anything, it’s accelerating. What we need now is to move past Band-Aid solutions like rescheduling and push for true legalization that serves the interests of both consumers and small businesses.

Whether Matt Gaetz turns out to be a champion for cannabis reform or just another political disappointment remains to be seen. But one thing is clear: the fight for legalization will continue regardless of who holds the position of Attorney General. Our focus should remain on pushing for meaningful reform that addresses the real issues facing the cannabis community – not just reshuffling the deck chairs on the prohibition ship.

The next few years will be crucial for cannabis policy in America. Let’s hope that having someone with actual cannabis policy experience in the AG’s office helps more than it hurts. And if not? Well, we’ve overcome tougher obstacles before.

 

GAETZ ON WEED POLICY, READ ON…

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NO MORE WEED TESTING IN THE MILITARY SAYS MATT GAETZ



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Another Setback for Recreational Marijuana in Florida…

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In the 2024 election, Florida’s Amendment 3, which sought to legalize recreational marijuana for adults aged 21 and over, garnered 55.9% support —falling short of the 60% supermajority required for constitutional amendments in the state. This outcome has left proponents of marijuana reform contemplating the next steps to achieve legalization.

 

Understanding the Defeat of Amendment 3

Amendment 3 aimed to permit adults to possess up to three ounces of marijuana and five grams of cannabis concentrate for personal use. It also proposed allowing existing Medical Marijuana Treatment Centers to sell marijuana to adults for recreational purposes.

Despite receiving a majority vote, the amendment did not meet Florida’s stringent 60% threshold for constitutional changes.

 

Several factors likely contributed to the amendment’s defeat. Governor Ron DeSantis led a robust campaign against the measure by utilizing state funds and significant donations, including $12 million from billionaire Ken Griffin, to fund opposition efforts. The opposition’s messaging focused on concerns about public safety, potential increases in crime, and the societal impact of legalizing recreational marijuana.

 

Legal Perspectives on the Outcome

Criminal attorney Joshua Padowitz, who has extensive experience in drug-related cases, both as prosecutor and defense attorney, offers insights into the implications of the amendment’s failure. “The defeat of Amendment 3 means that individuals in Florida will continue to face criminal penalties for possession of marijuana, even in small amounts,” Padowitz explains. “This perpetuates a flawed, unjust system where non-violent offenders are subjected to legal consequences that can have lasting effects on their lives.”

 

Padowitz astutely emphasizes the need for reform, stating, “The current legal framework appears to disproportionately affect minority communities and contributes to the overburdening of our criminal justice system. Legalizing recreational marijuana could alleviate some of these issues by reducing the number of individuals prosecuted and jailed for minor drug offenses. Here in Broward County, Florida, elected State Attorney Harold Pryor has boldly and commendably enacted a policy in his office to not prosecute most minor marijuana possession cases, which effectively discourages law enforcement from pursuing these types of arrests. Unfortunately, Pryor’s forward-thinking directive is not uniform throughout the State of Florida and it remains a criminal offense, subjecting a person to a deprivation of their liberty and a criminal record if convicted.”

 

Steps Forward for Advocates of Recreational Marijuana

Despite the setback, supporters of marijuana legalization in Florida are exploring various avenues to advance their cause:

  1. Legislative Advocacy: Engaging with state legislators to introduce and support bills that decriminalize or legalize marijuana. Building coalitions with lawmakers who recognize the benefits of legalization is crucial.

  2. Public Education Campaigns: Informing the public about the benefits of legalization, including economic growth, job creation, and the potential for tax revenue. Addressing concerns about public safety and health through evidence-based information can shift public opinion.

  3. Future Ballot Initiatives: Analyzing the shortcomings of Amendment 3 to craft a more comprehensive proposal for future elections. Gathering broader support and ensuring clear, concise language can improve the chances of meeting the 60% threshold.

  4. Legal Challenges: Exploring the possibility of challenging existing marijuana laws in court, arguing that they are unconstitutional, outdated, or do not reflect current societal norms and scientific understanding.

 

The Role of Medical Marijuana Providers

Companies like Trulieve, Florida’s largest medical marijuana operator, have been significant proponents of legalization efforts. Trulieve contributed nearly $145 million to the campaign supporting Amendment 3. Their involvement underscores the potential economic benefits of a legal recreational market.

 

However, the defeat of Amendment 3 has financial implications for these companies. Following the election, cannabis stocks experienced a sharp decline, reflecting investor disappointment. This economic impact may motivate continued advocacy from industry stakeholders.

 

Public Opinion and Future Prospects

Public support for marijuana legalization has been growing nationwide. A 2023 Gallup poll indicated that approximately 70% of Americans support legalizing marijuana. In Florida, the 55.9% support for Amendment 3 demonstrates a majority favoring legalization, even if it did not meet the required threshold.

 

Advocates can leverage this support by mobilizing grassroots campaigns, engaging in community outreach, and highlighting successful legalization efforts in other states. By addressing concerns and presenting a unified, well-organized front, proponents can work towards achieving legalization in future elections.

 

Concluding Thoughts

The defeat of Florida’s Amendment 3 in the 2024 election is certainly a major setback for proponents of recreational marijuana legalization. However, the majority support it received indicates a shifting perspective among Floridians. By learning from this experience and employing strategic advocacy, public education, and legislative efforts, supporters can continue to push for reform. As attorney Joshua Padowitz encouragingly  notes, “Change is often a gradual process, but with persistent effort and a focus on justice and equity, we can move towards a legal framework that reflects the will of the people and the realities of modern society.”

 



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