Cannabis is still considered a Schedule 1 drug under the Controlled Substances Act and illegal under federal law. 40 of 50 states have legalized cannabis for medical use. 24 of 50 states have legalized the possession and sale of cannabis for recreational use.
West Hollywood was one of the first in the nation to develop a city-wide cannabis licensing program which would limit the amount of distributors in WeHo. The application process chose winners and losers based on a set of criteria that included gender and commitment to WeHo ‘values’ to ensure diversity in WeHo’s cannabis industry.
President Trump announced yesterday that he is weighing the descheduling of cannabis from a schedule 1 drug. The move would be a game changer for the cannabis industry and WeHo’s dispensaries who have openly discussed the problems they face. Cannabis operators cannot lease properties in which the landlord has a mortgage. Cannabis operators must deal in cash or debit cards because of its current classification. From Banking to Taxation, the Cannabis industry is tied up in regulation.
Scott Schmidt, Executive Director of Emerald Village reacted to the news that Trump was ready to support the cannabis industry. “The best case scenario for the industry will be to deschedule cannabis and not reclassify it.” he said.
“Descheduling would allow states and cities to decide policies locally and allow for interstate commerce and international trade between countries where cannabis is legal. ” “For the California cannabis industry, the ability to sell to other markets will be a game changer. California flower, like what we sell in West Hollywood is coveted around the world.”
West Hollywood’s Cannabis businesses have mostly struggled. Both MedMen and Statehouse Holdings which include Urbn Leaf have filed bankruptcy. Aeon Botanika is also operating under court supervised receivership. CALMA, located on La Brea also changed hands. Zen restructured. There has been a wholesale change in most of WeHo’s Cannabis owners since licenses were issued.
The Biden Administration was on the verge of de-scheduling cannabis until the re-election of Donald Trump. The move by Trump would be a welcome change from his earlier position to WeHo’s cannabis industry.
Pot and gambling. These appeal to mostly poor and lost people. Nothing good ever comes of it.
In a few years….things will be so bad that they’ll have to reverse all of this.