FLOOR ALERT
AB 1111 – Threatens Cannabis Retailers Sustainability For Nothing In Return
AB 1111 (Pellerin) – Cannabis: small producer event sales license OPPOSE
Review the FULL FLOOR ALERT HERE!
UCBA & our coalition of cannabis trade associations, representing the overwhelming majority of cannabis retailers, both equity and non-equity, as well as unionized retailers, formally oppose AB 1111. The majority of licensed retailers have opposed this legislation for 8 years. Every year we get the same bill offering nothing new to remove the harm inflicted on the entire cannabis industry, we only get another self-serving attempt to remove people from the existing and established supply chain. For the following reasons we continue to oppose AB 1111.
1) AB 1111 lacks the guidance & tools for enforcement of cannabis laws on farmer’s market sales.
2) AB 1111 Exacerbates Major Public Health Threat – Currently LA Times has exposed that legal cannabis
cultivators have misrepresented the pesticides and toxic chemicals they are using in their products.
3) The Enforcement Budget and oversight from the Department of Cannabis Control has been significantly reduced
and the entire cannabis market has suffered. This bill requires significant additional enforcement when existing
laws have not been enforced to reduce the diversion of legal products into the illicit market.
4) AB 1111 would do further harm to struggling legal retailers who are falling into debt, reducing staff, closing
their doors or leaving California altogether because of the reduced demand for pricey regulated products.
5) AB 1111 Jumps in front of existing applications for local retail and undermines local retail business owners
from establishing a sustainable local market share. It can take years to get approval for a local retail license and in 90 days this bill encourages a competitor to jump to the front of the line. New cannabis retailers are having increased costs related to acquiring customers to move to the legal cannabis market.
6) AB1111 is set up to fail the people it says it’s going to help. The provided business plan estimates to bring negative economic benefit to cultivators (See chart p.3)
7) The ability to sell products as a cultivator, at a special event already exists.
8) AB 1111 undermines the existing supply chain by cutting out retailers.
9) AB 1111 threatens Union Jobs
10) AB 11111 does not expand legal market access 11) AB 1111 only dilutes the existing legal markets
12) The Legislation Violates Proposition 64
13) Not a small farmer bill. 80% of the licensees could be allowed to be retailers
Join our letter writing to Gov Gavin Newsom encouraging him to VETO AB 1111