Regulating Cannabis as a Revenue Generator

California is considering expanding legalized marijuana. It estimates an expanded marijuana market would represent a $1.2 Billion industry.

The regulatory structure will resemble that of the alcohol market.

Where are parties aligning?

• California Teamsters advocate the multitier model to regulate marijuana
• Police CHief Association also calls for multi layer regulation so as to “…separate the cultivation, the processing, the distribution or sales for the accountability piece.” 
• Farmers and others support multi tier to prevent “large-scale operations from monopolizing the market”
• California Cannabis Industry Association is concerned that a multi tier system will allow distributors to monolpoize the system in the same way they do for alcohol
• Emerald Growers Association support giving distributors a greater role would minimize the possibility that “a retailer can fill their shelves with only their product (and) can push anyone else out of the market
   

Assembly Bill 266

Sacramento Bee