A recent report by the University of the Pacific in Stockton revealed that California’s capital region of Stockton could be on the receiving end of some 20,000 jobs and $4.2 billion in business revenue if the state approves legalized marijuana for recreation.
The study comes several weeks before voters are slated to decide whether to legalize the drug. The research was commissioned by Truth Enterprises, a marijuana investment company – one of hundreds that are hoping voters turn out and vote “Yes” on this issue next week.
Daniel Conway, former chief of staff to the mayor in Sacramento as well as to former NBA star Kevin Johnson, is now the managing partner at TE. He says California (and Sacramento in particular) should be to marijuana what Detroit, MI is to automobiles or what Sonoma and Napa are to wine. However, should local leaders in that region chose to stifle the number and types of cannabis companies that are allowed to operate, researchers found that legalization at the state level would bring only about 1,600 jobs and revenue/ wages/ economic growth of about $322 million.
The more positive numbers indicate the cannabis industry might be able to draw in as much as $2 billion in revenue annually for the city, with a total economic output exceeding $4 billion if the region develops a cluster model that would include not just sales but microbusinesses, transportation, commercial cultivation and product manufacturing for both local and outside markets.
If the polls are any indication, it seems likely Californians are going to approve Proposition 64, the pro-marijuana ballot measure Nov. 8th.
However, in order for any region to see a boom in marijuana business, our cannabis attorneys know that policy makers – and investors – would need evidence that a bustling marijuana industry – including cultivation and processing – wouldn’t simultaneously attract crime, teen drug use rates and more.
Still, both political and business leaders in Sacramento have a strong incentive to give it a fair shot. These groups for years have been looking for ways to revitalize the area. The area is littered with abandoned homes with boarded up windows and empty storefronts in once busy shopping plazas. Although some of this could be attributed to the hit this area took when the housing market tanked, it’s been nearly 10 years since the Great Recession. Sacramento has been slower than most to recover.
There are some positive changes happening. Downtown, the NBA Kings are getting a new arena. The area around that feature is being spruced up, and there are more than a dozen new shops and restaurants planned. The city is on the cusp of scoring a major league soccer franchise. Plus, the restaurant scene is starting to become something of a destination in the region.
So in this light, what may have been looked at with far more hesitation 20 years ago suddenly just makes good business sense. The prospect of that many new opportunities for employment simply isn’t something that can be ignored. Plus, it doesn’t hurt that more Americans support the legalization of marijuana than either of the two major political party’s candidates for president.
If you are interested in exploring the possibility of opening a marijuana business in California, our experienced marijuana attorneys can help you navigate the legal patchwork.
The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.
Additional Resources:
Study: Sacramento region’s pot economy could soar with legalization, Oct. 17, 2016, By Peter Hecht, Sacramento Bee
More Blog Entries:
Consultants on First U.S. Marijuana Resort Arrested on Drug Charges, Aug. 10, 2016, California Marijuana Lawyer Blog