Game-Changing Measure to Serve As a Model for Nation, California,  States, and Counties

 LOS ANGELES—Southern California Coalition (SCC), the largest, most inclusive cannabis industry trade organization in the world’s largest cannabis marketplace, Southern California, announced that its recent efforts spearheaded in concert with the Los Angeles City Council has resulted in the passing of the world’s most comprehensive legalization measure—Proposition M. Proposition M is a holistic approach to legalization, which provides Los Angeles City Council with a comprehensive, yet fluid regulatory framework, along with the ability to address issues in real time while fairly licensing, taxing and regulating the city’s state-legal marijuana industry. The measure’s passing will also help create an opportunity to determine the appropriate number of operators needed in order to help meet Los Angeles’ patient and consumer needs in a responsible and sensible way.

Today, Los Angeles’ medical marijuana market alone is roughly $1B, easily overshadowing Colorado’s medical and adult-use market. Proposition M will create thousands of more well-paying jobs for Los Angeles workers—jobs, which on average pay more than $20 per hour or nearly double California’s minimum wage, and a whopping 65% higher than the national average.

By laying out a comprehensive framework to license the various sectors of the cannabis industry, fairly taxing and regulating the legal sale of marijuana, enforcing the marketplace, giving communities a voice in what happens in their own neighborhoods regarding zoning, the location of stores, the number of shops in an area, store hours, and how products will be marketed and advertised—and most importantly, taking the time upfront to truly understand the issues and concerns of the stakeholders—Proposition M has struck a remarkable balance that no city, state or government has been able to achieve to date.

For more information, please visit http://www.southerncaliforniacoalition.com.

About Southern California Coalition

Southern California Coalition (SCC) is the largest, most inclusive cannabis industry trade organization representing stakeholders across all licensing categories, advocacy organizations, minority groups, veterans, communities and others in Southern California. SCC’s mission is to ensure comprehensive marijuana policies are implemented in an inclusive and responsible way in the world’s largest state-legal cannabis market, Southern California and beyond.


Proposition M Background

Recreational Tax Structure:
Retail sales of cannabis: 10%

Medical Cannabis Tax Structure

Retail sales of medical cannabis: 5%

Other Taxing Categories

Tax for Transporters: 1%

Tax on Testing: 1%

Tax on Research: 1%

Tax on Manufacturers: 2%

Tax on Cultivation: 2%

Tax on Other Categories Not Mentioned Above: 2%

Enhanced Enforcement
Fines are raised to $20,000.00 a day per violation.
Individuals who operate unpermitted entities will be fined $1,000.00 per day, and may face other penalties.

Utilities at the illegal entity may be shut off by the city.

Media Contact:

Ellen Mellody