The legal marijuana market in California is slated to open on Jan. 1 2018, a landmark for the state, but there are still several concerns on how the market will function.
The top pot regulator Lori Ajax has been working to develop a legal framework for the state’s pot economy which is estimated at $7 billion. According to her, transitioning into a legal economy will need lots of education and patience.
Regulations For Buying Pot
Buying legal pot will be possible in selected parts of the state since some counties have banned commercial cannabis activity while others have “embraced it.”
Under the state laws, businesses need to have local permits and a state license to offer recreational pot sales. The licensing process is slow-moving because of which availability may not be uniform across the state.
For example Kern County has banned all forms of commercial activity related to pot , but Santa Cruz, Oakland, San Diego and Shasta Lake are among the areas that have will have licensed operators open for sales starting Jan. 1.
Legal pot sales in San Francisco will be delayed till end of the first week, while in Los Angeles, the city is expected to start accepting applications for licenses to sell recreational pot starting Jan. 3, but the shops may open only weeks later.
Rules Surrounding Smoking Of Pot
A basic rule according to Ajax is that pot smoking should not be done in public. She highlighted another general guideline of not smoking anyplace where tobacco is banned.
Legally, state laws details a list of places where smoking cannabis is banned which includes within 1000 feet of a daycare center or a school and while driving.
However local governments have been given the right to decide regarding onsite consumption. Therefore rules will vary by city. She has suggested that consumers looking to make a purchase look up local rules as they will vary.
Transition To Regulated Industry Challenging
Ajax has warned that the transition to a legal pot economy will involve a lot of adjustment.
The medical and illegal industry has existed in the state for a long time with little to no regulation.
Under the new regime, a host of state and local rules become applicable which can be a challenge. Ajax noted that the regulator will be working closely to help the businesses comply.
Slow Pace Of Licensing A Worry
Ajax expressed worry at the pace of licensing in the state as several categories of participants are involved in the industry’s supply chain – retailers distributors, cultivators, testing companies, manufacturers.
Licensing in the state started only in December. Ajax said she is worried if the state has “licensed enough people throughout the supply chain, “ and across the state for the industry’s operations to continue uninterrupted.
Education Key For Regulation In Early Phases
Ajax also highlighted that enforcement efforts initially would focus on educating businesses in the market rather than penalizing them.
She noted that if anyone “is causing a public nuisance or a public safety problem,” then strong enforcement was necessary
But if a person was trying to comply but was unable to because “they are completely overwhelmed” and “they just don’t know what to do“, then the regulator must work to help the businesses.
Black Economy Could Hamper Legal Economy
Addressing worries about the legal economy being hampered by the black market, Ajax said that education was the only way to encourage illegal operators to “come out of the shadows” and join the legal industry.
One of the aims of the regulator she said would be to encourage businesses to get adjusted to regulation by convincing them that “this is the best way for California.”
She said that the state must be initially flexible with compliance, as businesses try to adjust to the new system.
