Members of the 4/20 club in California have been waiting for regulators to release the rules governing the pot economy, well, it’s a done deal.
The rules, which will govern the fields of sales, were unleashed by California regulators on Thursday. The recreational use of marijuana was legalized by voters last year; creating the way for a legal market that has been valued at $7 billion and within several years could bring the state $1 billion in new taxes.
The new rules will facilitate the issuance of temporary licenses for growers, sellers, and distributors next year. This comes just 45 days before legal sales can kick off, and many problems remain.
There’s speculation that the high taxes will drive consumers to the black market. Majority of the banks will not do business with cannabis companies, and Los Angeles and San Francisco are among many cities without local rules in place.
In the meantime, there are huge gaps that exist in the system intended to move cannabis from the field to distribution centers, then to testing labs and eventually retail shops.
Generally, California will treat cannabis like alcohol, allowing people 21 and older to legally possess up to an ounce and grow six marijuana plants at home.
The state’s two-decade-old medical marijuana market will merge with the newly legalized recreational sales come January.