San Diego is the first city in the state to legalize cannabis cultivation, embracing the California Green Rush “more fully than almost any other community in California, including San Francisco and Los Angeles,” according to the San Diego Union Tribune.
The San Diego community is moving with renewed force, pushing cannabis business opportunity legislation rapidly forward for the first time since medical marijuana was legalized in 1996. A dozen stores in San Diego will be legally allowed to sell recreational marijuana in January, thanks to Proposition 64.
Other cities haven’t moved as fast, and in some cases moved in the opposite direction. Agoura Hills, Hermosa Beach, Fresno and Riverside opted out from the green rush by banning the sale of medical and recreational cannabis completely within city limits. Those in opposition cite public safety reasons for banning the sale of cannabis.
“I bet you it’s easier for a young person to buy marijuana than it is to buy alcohol,” said Fresno City Councilman Oliver Baines, who supports banning the sale of cannabis for public safety reasons.
For those interested in how to start a cannabis business, San Diego regulation has proved to be conveniently unambiguous. Dispensaries here are very diligent about adhering to cannabis regulation. It is standard for a San Diego dispensary to employ security personnel, or for staff to individually escort medical cannabis patients through the store. Patients remain in a waiting room during high-traffic hours, and identification verification is thorough.
San Diego Moves Forward With Cannabis Regulation
San Diego City Council voted 6-3 to legalize cultivation, manufacturing and testing of marijuana within the city limits on Sept 11. Earlier this year the council voted to permit licensed marijuana dispensaries to sell to recreational customers.
Despite opposition, the council decided to move the industry forward for several reasons:
- The local supply chain for local dispensaries will boost San Diego’s economy.
- The creation of a local supply chain will create jobs.
- Local sourcing will improve the quality and safety of marijuana for customers.
When first introduced, the city considered a cap of two cultivating, manufacturing and testing facilities per district. Ultimately they chose to set a city-wide cap at 40 businesses. Similar proposals that would have limited the number of facilities through other means were also voted down by the city.
“This is fantastic news for growers, manufacturers, distributors and cannabis testing laboratories who would like to put down roots in California’s second largest city,” said Kimberly R. Simms, Esq., a civil attorney who specializes in and advocates for the medical cannabis community.
The legal marijuana industry is still relatively new, and is deeply dependent upon logistical infrastructure to survive. Local manufacturing and distribution is essential. The city’s decision will allow other peripheral vendors to boost their business by providing services to marijuana growers, manufacturers and vendors. Some of these vendors may have the opportunity to create their own niche, and would benefit from thinking about how to start a cannabis-related business.
Cannabis Business Opportunities: Jump into the Green Rush
Cannabis business entrepreneurs who want to jump in on the newest open avenue in the green rush, and join the San Diego cannabis supply chain, will begin submitting applications to open production facilities in November. These production facilities must be located in industrial zones, and cannot be in close proximity to schools, daycare centers or public parks.
When San Diego began permitting medical cannabis dispensaries, cannabis business entrepreneurs jumped at the opportunity and camped outside the city’s Development Services Department to get their applications in first. It’s likely that recreational cannabis sales will create a similar stir. Businesses who could provide supply or logistical needs to the front end of the industry should start marketing to growers and distributors as soon as possible.
What services will the new players in the green rush provide or need?
- Delivery services
- Cannabis growing equipment and tools
- Testing equipment
- Distillation equipment
- Security services
- Packaging and branding
- Real estate
The continued movement of marijuana legalization opens up new opportunities for multiple markets. San Diego is now the model for local green rush industry. We are thrilled to be located in the city at the forefront of cannabis innovation.
If you would like more information on how to start a cannabis-related business, 4blooms can help you develop a strategy to market your company. Call us today to get a piece of the California green rush.