Marijuana Business Magazine July 2018

CANNABUS¬NESS BY THE NUMBERS Source: U.S. Census Bureau, The Cannifornian Local Governments Behind California’s Lack of Recreational Marijuana Stores F ewer than one in seven cities in California allows recreational marijuana stores, and industry experts say that’s a major reason the state’s new rec industry is off to a slower-than-expected start. California’s licensing system is relatively unique: Entrepreneurs looking to open an adult-use retail store in the Golden State must obtain authorization from local officials before they can even apply for a state business license. But only a small percentage of local governments have greenlighted recreational cannabis shops. The scarcity of retail outlets has pumped new life into the state’s well-entrenched gray- and black-market opera- tors, who can capitalize on consumers’ lack of access to legal marijuana. It’s also created significant hurdles for the hundreds of previously existing medical cannabis dispensaries in California, many of which want to enter the rec market and operate in compliance with the law. Many are unable to do so, however, because some local govern- ments refuse to license rec shops. Here’s a closer look at the situation: California cities that allow adult-use retail stores, or 15% of the state’s 482 cities. Portion of California residents who live in a city where recreational marijuana stores are allowed. Number of municipalities – out of the 10 most-populous cities in California – that prohibit adult-use sales. The four are Fresno, Long Beach, Bakersfield and Anaheim, which have a combined popula- tion of approximately 1.7 million residents. Number of state-licensed retail marijuana stores throughout California as of May 1, 2018. By comparison, 529 retail cannabis store licenses have been issued in Colorado, a state with less than a seventh of California’s total population. 70 326 30 % 4 10 • Marijuana Business Magazine • July 2018