Weekly News in Cannabis - 1st Week in FebruaryCalifornia is slashing taxes, salaries are on the rise, and the WHO says it's time to reschedule cannabis worldwide.
California to Slash Cannabis Taxes
Cannabis taxes might be reduced with a new bill introduced by lawmakers in California, aiming to eliminate the black market and boost legal cannabis businesses. According to The Sacramento Bee, Assembly Bill 286, if approved, is going to reduce both excise and cultivation taxes.
More specifically, cannabis goods’ excise tax is going to drop from 15 to 11%, while legal growers will be completely freed from the three-year cultivation tax. The price of legal cannabis goods in California can at times reach 45% of the products’ actual costs, while local taxes might also be added to the amount. The tax income has thus been below average. Due to the high prices, citizens prefer the illicit market instead.
According to The Sacramento Bee, Rob Bonta, assemblyman, and co-sponsor of the bill highlighted the need for change saying that “Those good businesses, those good actors, are not able to compete with the black market product if they cannot be competitive on price and cost.”
Cannabis Jobs Paying 11% Than the US Median, Driving Demand Up by 76%
As states change their legislation on cannabis cultivation and use, the industry producing the goods has started to flourish. More and more jobs with 11% ( $5,648 ) above US average salaries are opening in the field. According to Glassdoor, from December 2017 to December 2018 vacancies reached 76%.
The nature of the jobs vary. From retail and technical workers, people that tend the crop, to product and marketing managers. Yet, the roles most in demand are those in the field of retail or service, such as sales associates and brand ambassadors. While most positions are concentrated in large cities such as New York City and Seattle, there are also small to medium size businesses dispersed across the country.
Public support has also played an essential role in this direction. The October 2018 Gallup Poll showed that about 2/3 of Americans are pro-national legalization. By now, 33 states, including Washington D.C, allow for medical and legalized recreational marijuana use.
WHO Recommends Rescheduling of Cannabis and Clearing of CBD
The recommendations report on cannabis by the World Health Organization Expert Committee on Drug Dependencies (ECDD), expected originally in December, has arrived at the headquarters of Member states of the United Nations Commission on Narcotic Drugs (CND) according to Marijuana Business Daily.
Aiming to simplify cannabis-based products’ scheduling, the report suggests some changes, based on which all THC forms are going to be grouped into one category, cannabis and cannabis resin, as the dangers they encompass are similar.
According to the report, the WHO suggests cannabis should be withdrawn from the most dangerous substances category, Schedule IV of the 1961 Convention. Its scheduling would be less restrictive, and THC would be placed along with cannabis in Schedule I. Moreover, CBD with no more than 0.2% THC would be exempted entirely from international drug control conventions.
Although the cannabis rescheduling was going to take place in March 2019 by the CDN, the delay of the ECDD report might result in a later date, most likely in 2020.
Baby Boomers a Ripe Market for the Cannabis Industry
The Silent Generation and Baby Boomers (that is, people born between 1928 and 1964) are the leading power in the legalization of cannabis in the U.S. Although somewhat unexpected; this group is, in fact, one of the consumer segments growing the fastest. It’s the generation that gave us Woodstock, the flower power and the Summer of Love. However, instead of the mellow groove, they are now seeking to find relief for health problems such as chronic pain, inflammation, and arthritis.
4% of the Silent Generation, people aged 65 and older, use cannabis at least once yearly. While, Baby Boomers, people aged 55 to 64, are likely to be consuming more than teens aged 12 to 17. Boomers are primarily interested in alternative goods to smoking flower. In this age range, cannabis pills, edibles, and topicals are as popular as vaping devices. Why? The answer is simple. These products fill some of this generation’s requirements, that is, they are approachable, discrete and most importantly low-dose.
Eight Cannabis Stocks To Watch After the Passing of Farm Bill
Cannabis products containing THC of 0.3% or less are now excluded from the Controlled Substances Act. The exemption was introduced Dec. 20, with the 2018 Farm Bill, by President Donald Trump. In practice, this means legalization of hemp-derived cannabidiol (CBD) production and distribution across the United States according to Canaccord Genuity, reported by CNBC.
CBD, the non-psychoactive cannabis-based compound, that is “poised to flourish” in 2019, has various medical applications. So far, it is billed to treat some conditions, including epilepsy, chronic pain, and anxiety. As such, according to analysts, its legalization will boost the growth of the cannabidiol industry. Eight stocks of mass-market retailers are already identified, with MJardin Group Inc. (MJAR), being most likely the biggest beneficiaries. However, analysts pointed out that despite the FDA’s initial caution, they expect many new mass-market retailers to enter the CBD market in 2019.