Proposition 64, the California marijuana legalization proposal, changed the way medical and recreational cannabis is grown, marketed, and sold in the state.
Prop 64 introduced climate-controlled growing facilities and regulated sales channels for first-time growers as well as established vendors. It also allowed for cross-licensed products such as hydroponic plants being sold as herb or flower.
By introducing new ways to market and sell cannabis, including becoming a member of a government-recognized guild or “cannabis cartel,” new owners are more likely to comply with laws governing drugs and regulation of a business.
This has been especially important for start-up sellers, who might not have access to this level of autonomy unless they join a cartel.
More licenses available
Prop 64 introduced more licenses into the cannabis industry, making it easier for start-ups to succeed. There were originally three major categories of companies in the industry: dispensaries, grow facilities, and retail stores.
Now, there are over a dozen different types of dispensary outlets and over five different types of grow facility locations. This is great for early stage startups as it provides easy access to capital and success.
Many new businesses were able to obtain funding through investment platforms like Kickstarter and/or GoFundMe, two well-known crowdfunding sites. With more easily accessible capital available, startup growth was faster than before Prop 64.
Additionally, more businesses were forced to change their business model to comply with Prop 64. Some had to reevaluate where they wanted to be in the market and how they wanted to reach their goals before launching so as not to lose valuable market share due to changes in the industry.
Marijuana tourism
Another tourism mode is marijuana tourism. You can stay in marijuana-themed hotels, have marijuana-infused food at cannabis restaurants and cafes, and even try CBD, the non-psychoactive component of Marijuana that makes you feel calm.
To learn more about how Prop 64 changes the cannabis industry in California, visit www.prop64ca.com/tourism. This website includes information on how to sign up for a marijuana stay program and tips on what to do if you decide to try this out.
While it is fun to go out with friends and indulge in some good pot, young adults who need help with their stress or who are feeling socialistic can retreat to the couch with a good bowl. The effects last longer than if you were to go outside or shared a smoke with someone else.
You can also visit dispensaries that are inspired by different plants such asTHC because they look like medical devices.
Sales tax revenue
Prop 64 introduced a sales tax of twenty-five percent on all cannabis-related sales. This is calculated as a point on the purchase price, where you pay tax at twenty-five percent of every dollar you spend.
This is a significant change for the cannabis industry, as most companies had to reevaluate their business models and start charging sales tax. This has led to more transparency in the market and more quality products being available to consumers.
Some companies have even raised their prices due to increased costs, which is not healthy for consumers looking for quality products at lower cost. This has been a issue when finding quality products can be an issue of budgeting or reaching a trust agreement between friends and professionals.
Helps eliminate illegal drug trafficking
Prop 64 reduced the amount of things that are considered legal drugs in California by helping track and regulate them. This is a big deal because it decreases the amount of illegal drug trafficking in the state.
Some drugs are controlled substances, which are government-regulated substances that can be bought and sold. These types of drugs include prescription medications, over-the-counter medications, and hormone replacement therapies.
Prop 64 limits how much each person can have of each substance, so there is a limited amount of cannabis in your system at one time. This is called disincentivizing drug use.
Many people who are looking to beat an addiction to cannabis do so by finding ways to have it disincentivized. Prop 64 helps with this by making it more difficult to obtain.
Millions of dollars have been spent on legal counsel
In addition to the large number of dispensaries that have opened, there are more marketing firms offering cannabis consulting, design services, and marketing campaigns.
This has had a positive effect on spreading the word about cannabis and creating brand recognition. More businesses are coming into the industry to offer their services, which increases overall revenue for all parties.
Many new businesses have begun to open around California as a result of Prop 64. Many continue to operate as legal entities even after receiving state licenses, however. This continues until enough people obtain licenses that there is a monopoly onnecting businesses in California.
This is not a problem that can be fixed with more licensees! It takes time for new businesses to find out if they are legal or not in California, which is why it is important to have an initial set of operations in place by then.
Personal consumption grows
Between 2008 and 2014, the number of medical marijuana dispensaries grew from just over a hundred to over two thousand. This growth was due in part to the 2008 ruling, which allowed for smaller businesses to operate multiple storefronts to sell their product.
This growth was fueled by new businesses finding ways to profit off of the medical marijuana industry. Prop 64 added another layer of business expansion, bringing wider accessibility and lower cost for patients. Today, there are more than a dozen large cannabis corporations in California with billions of dollars invested in them, providing much needed diversity to the market.
These larger cannabis companies have become essential parts of the system as they expand their reach and pay back investors. Prop 64 made it easier for new businesses to enter the market, creating more opportunities for diversity and paying back investors.
Cannabis companies attract higher investment values
Increased demand has driven up prices in the past year, making it harder for new companies to gain market share. This has been most visible in the sales channel where established businesses have increased their prices to capitalize on increased demand.
This is creating a marketwide shortage of products that are popular with consumers, driving more people into illegal markets to acquire products. This has led to potentially dangerous product mixing and seizures of substandard cannabis.
With fewer competitors flowing into the market, customers are more likely to cooperate on a product name and logo to ensure they are getting quality product. This creates an advantage for veterans of the cannabis industry who know how to make quality cannabis consumable.
This increases competition which can lead to better products and services being available, resulting in more value for customers and income for those running businesses.
Consumers are aware of their consumption rates
These days, people know when they are too stoned to use or where they are at when they use cannabis, thanks to the widespread usage of smartphones.
Consumers have access to a wide variety of strains, times, and products through apps and website notifications. They can also find information about how much they need and where to obtain it, such as at a cannabis club or farmer’s market.
How people consume cannabis has changed as well. At present, people enjoy their dabs around an hour to two hours before smoking and getting high. Now that consumers have the option to buy their cannabis at different hours than before, businesses get ready for business!
More people are learning about dabs being easier and faster than smoking flower, which is why there is such a demand for products that are not convenient or quick alike to obtain.
