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The Cal NORML/ASA Lobby Day yesterday in Sacramento brought in a score of citizen lobbyists from across the state to meet with legislators or their staffers in support of AB 564 (Haney), to halt a pending cannabis tax increase from 15% to 19% on July 1.
Christina Dempsey, Deputy Director of Government Affairs at the CA Dept. of Cannabis Control, spoke to the group about the report the DCC just issued on the state of the cannabis market in California. In particular, she highlighted the finding that an estimated 60% of cannabis sold in the state comes from the illicit market, with only 40% from the legal, licensed and taxed market. “That tells me we have a long way to go in terms of shifting people over from their old sources, or maybe the only sources they have available in their communities, to a licensed market. And policies like AB 564 are really important in that conversation because, from our perspective, the unlicensed market poses a lot of public health and safety risks. So we want to do all we can to shift those consumers over to the licensed market. And so, things like tax policy certainly affect consumer buy in.”
“In the [Capitol] building there are a lot of issues that legislators are dealing with for Californians, and in order for cannabis to be high on their list, it needs to be on their radar,” Dempsey said. “So, your presence in the building, your conversations, puts a face to a subject that they heard about, and it gives them someone to reach out to when they have questions. So, it is incredibly important that you’re here today.” She thanked the group for coming, and invited us to reach out to her office with any questions or concerns about legislation. DCC generally doesn’t take public positions on bills, Dempsey said, but they a lot do work with legislators to help them understand understand how their policy proposals might affect the state, the industry, and Californians.
Asm. Matt Haney, the “proud author of AB 564,” spoke at a rally and press conference on the Capitol steps, with a large crowd of lobby day attendees cheering him on. “We are here to say very simply that cannabis culture, cannabis community, the craft of cannabis—that’s been California’s. We created so much of this in our state. The folks who stand behind me, for decades have been working to say not only that this product should be legal—which it is, by the way—it also should thrive in California.”
“This an opportunity for California,” he continued. “Billions in revenue, thousands and thousands of jobs….All around the world, if you say cannabis, people think California. So just like with technology, just like with wine, just like with beer, let’s support this home-grown industry. Let’s take full advantage of what it can offer our state and support it so it can fully thrive.”
“The cannabis industry, the folks who are doing the right thing, paying taxes, following the regulations, playing by the rules, following health and safety laws—and ther are a lot of them—are struggling. In fact, if we don’t act to support them, many of them are dying. We see more and more businesses that are closing, sales revenue that’s going down, all at the same time that the legal, illicit market is growing.
“We’re also seeing other states now are growing their cannabis markets faster than California. We are in danger of losing out to Michigan, which now has more cannabis sales than California. We’re in danger of losing out to Wisconsin, and Colorado, and Washington State. These are states who are doing the right thing by actually creating an environment where these businesses can thrive. Instead California continues to put more and more taxes and more and more regulations that are going to put this industry out of business if we continue down that failed path.
“This bill would do something very simple. It simply says, ‘Let’s not put a 25% tax increase on an industry that is still struggling to survive.’ Let’s actually invest in them and support them, not tax them to force them all to close. It’s not a sustainable approach, if we really want this industry to thrive, and for the revenue that’s going to come from it for our state….This is not the time to put a 25% tax increase on this industry. California should lead on cannabis….This bill will provide a critical lifeline to give this industry at least a fighting chance to survive.”
At several points during Haney’s speech the crowd cheered, waving stop signs that read, “STOP HIGHER TAXES! YES ON AB 564.”
Haney also noted that cannabis advocacy groups are (uncharacteristically) unified in their support for AB 564. Co-sponsors are California NORML, the California Cannabis Industry Assn., CA Cannabis Operators Assn., Origins Council, United Cannabis Business Alliance, and United Food and Commercial Workers – Western States Council. Other supporters include Americans for Safe Access, Good Farmers Great Neighbors, Nevada County Cannabis Alliance, San Francisco Cannabis Alliance, and the City of Placerville.
In answer to questions from the press, Haney said that he was working with Budget committees, and would “love it” if the Governor suggested dropping the tax increase in his next proposed budget. “He has one more chance,” Haney said. He also said he was working with groups who benefit from cannabis taxes to ensure that their funding remains intact. As Cal NORML director Dale Gieringer pointed out, AB 564 would keep funding levels intact since it isn’t proposing a tax decrease, even though that would be desirable, especially for medical marijuana patients.
Caryn Woodson from the CCIA, small cannabis business owner Kimberly Cargile of A Therapeutic Alternative in Sacramento, and Octavia Crockett, a worker at Embarc and a UFCW member also spoke at the rally about how critical AB 564 is to them and their businesses.
Sponsors of Lobby Day included Gold Sponsor Growise Certified Public Accountants, Silver Sponsor Meadow, and Bronze Sponsors The Green Cross, Law Offices of Omar Figueroa, Glass House Brands, Ian Rassman, BMDC SF, Marin Alliance for Medical Marijuana, Good Farmers Great Neighbors, and Cannabis Aligned.
