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KENNEDY: WE KNOW HOW TO PARTY
BUT THE GOVERNMENT KNOWS HOW TO
SCREW EVERYTHING UP.
EVEN LEGAL WEED.
THOUGH SUPPOSED TO BE GREAT BUT
ACCORDING TO POLITICO, THE
GOLDEN STATE LEGAL CANNABIS
INDUSTRY IS FRUSTRATED WITH ALL
THE RED TAPE AND REGULATIONS AND
TAXES.
BUSINESSES WILL PROMISE A MUCH
BETTER DEAL BUT IT WAS LEGALIZED
IN 2016.
GAVIN NEWSOM’S PROPOSED TAX CUT
HAVE BARELY CHANGED THE PRICE OF
MARIJUANA.
THE BLACK MARKET OFFERING
CUSTOMERS BETTER BARGAINS SO HOW
CAN THE STATE HELP THEM SHOP?
TWENTY ME TO DISCUSS FOUNDER IN
CALIFORNIA CANNABIS CHAMBER OF
COMMERCE CHAIR, FIRST JANE IS
BACK.
WELCOME BACK.
>> THANKS FOR HAVING ME.
KENNEDY: THIS WAS ALWAYS A BAD
IDEA AND THEY’D SEEN OTHER
STATES LEGALIZE RECREATIONAL
MARIJUANA LIKE COLORADO BUT
CALIFORNIA HAD TO GET TOO GREEDY
WITH TAXES AND THEY’VE KNOWN FOR
SOME TIME IT’S MAKING THE
ENVIRONMENT WORSE AND LESS SAFE.
THERE’S A LITTLE EASING OF THE
CANNABIS TAX BUT NOT ENOUGH, IS
IT?
>> IT ISN’T AND FOR CONTEXT,
WHEN VOTERS LEGALIZED CANNABIS
VIA PROP 64 IN 2016, THEIR
INTENT WAS TO REPLACE THE
ILLEGAL CANNABIS MARKET WITH
LEGAL REGULATED SAFE CANNABIS
MARKET BUT YEARS LATER, THE
ILLEGAL MARKET RATHER THAN
SHRINKING HAS GROWN, IT’S
ESTIMATED $10 BILLION IN THIS
BECAUSE CANNABIS TAX FIVE OR SIX
TIMES BEFORE IT REACHES THE
CONSUMER IN CALIFORNIA AS A
RESULT, IT’S ALMOST IMPOSSIBLE
TO RUN A LEGAL CANNABIS BUSINESS
IN CALIFORNIA AND MAKE MONEY AND
CONSUMERS OFTEN PRICE-SENSITIVE
DISINCENTIVE TO PURCHASE ON THE
LEGAL MARKET SO WHERE WE ARE
TODAY, THERE ARE HUGE SPOTS IN
THE STATE DOMINATED BY CARTEL,
GROWING CANNABIS ILLEGALLY,
DESTROYING CALIFORNIA’S
ENVIRONMENT AND SELLING SAFE
UNTESTED PRODUCTS TO CONSUMERS.
KENNEDY: YOU ALSO DON’T KNOW
WHAT KIND OF FERTILIZERS OR
ANTIMICROBIALS THEY ARE SPRING.
THEY ARE CERTAINLY NOT USING
PRODUCTS THAT HAVE BEEN TESTED
THEY ARE USING STUFF TO KILL THE
THINGS THAT MIGHT INFRINGE UPON
THEIR CROPS AND THAT COULD BE
BAD FOR CONSUMERS BECAUSE YOU
DON’T KNOW WHAT IS IN IT.
THAT WAS THE REASON FOR HAVING A
LEGAL SYSTEM, YOU COULD GO TO A
DISPENSARY AND GET WHAT YOU
WANTED THE RATIO YOU WANT TO THE
PACKAGING WOULD BE ADORABLE BUT
WHEN IT’S THREE TIMES AS MUCH AS
WHAT YOU CAN GET FROM A DEALER,
WHY WOULD YOU SPEND THAT KIND OF
MONEY?
IDEA OF STAKEHOLDERS, EVERYONE
IN CALIFORNIA HAS THEIR HAND UP
AND THEY HAVE BEEN PROMISED
THEY’D BE ENRICHED BY THE CANVAS
INDUSTRY FOR ESSENTIALLY DOING
NOTHING AND THEY ARE THE ONES
LOBBY TO KEEP THE TAXES IN PLACE
AND THEY ARE MAKING THE
ENVIRONMENT LESS SAFE.
>> ABSOLUTELY AND AS YOU NOTED,
CALIFORNIA DID JUST PASS A
CULTIVATION TAX CUT SO OUT OF
THE FIVE OR SIX TAXES IMPOSED ON
WE WILL CANNABIS, THEY
ELIMINATED ONE AND THAT IS A
GOOD THING.
LEGAL CANNABIS IS NOW SELLING
$300 A POUND IN CALIFORNIA AND
THAT CULTIVATION TAX WAS $160 A
POUND MAKING IT NEARLY
IMPOSSIBLE TO CULTIVATE CANNABIS
PROFITABLY SO IT’S A GOOD THING
CULTIVATION TAX WAS ELIMINATED
AND I’LL NOTE ALL OTHER STATES
THAT HAVE LEGAL CANNABIS IMPOSE
THAT CULTIVATION TAX.
NO OTHER AGRICULTURAL COMMODITY
IN CALIFORNIA IS SUBJECT TO THAT
TAX SO THE GOOD THING THE CANVAS
TAX IS GONE BUT IT HASN’T SOLVED
THE PROBLEM.
LEGAL CANNABIS IN CALIFORNIA IS
STILL SUBJECT TO 15% EXCISE TAX
AND EIGHT TO 10% GLOBAL EXCISE
TAX, 10% SALES TAX AND LOCAL
CULTIVATION MANUFACTURING AND
DISTRIBUTION TAXES SO LEGAL
CANNABIS IS STILL NOT COST
COMPETITIVE SO ALTHOUGH IS A
GOOD THING THEY ARE ELIMINATED,
MANY FOLKS IN SACRAMENTO ACT AS
IF THE PROBLEM HAS BEEN SOLVED
BUT IT HASN’T BEEN.
CALIFORNIANS DO MUCH MORE TO
ADDRESS THAT.
KENNEDY: AND I KNOW YOUR GROUP
IS WORKING TO GET ON THE BALLOT
AND HOPEFULLY THERE WILL BE
REFORMS BECAUSE YOU WANT TO KEEP
PEOPLE SAFE AND THE INDUSTRY
ALIVE.
IT’S A GREAT TAX BASE WHEN THERE