Proposed Bill Estimated to Cost $250 Million in State Sales Tax Revenue and Up to
41,000 Jobs
LOS
ANGELES, Aug. 8, 2024 /PRNewswire/ -- In a
blow to California's already
strained budget deficit, Assembly Bill 2223 is projected to have a
negative fiscal impact across sectors. The proposed legislation
aims to monopolize the state's hemp market by granting exclusive
full spectrum hemp retail control to marijuana dispensaries.
If passed unamended, AB 2223 will force the closure of
California hemp retailers,
jeopardizing approximately $250
million in sales tax revenues and 41,210 jobs, according to
the 2023 National Cannabinoid Report by Whitney Economics, the most
comprehensive analysis based on state-level data.
Chad Paydo, owner of Petaluma, Lafayette, and Concord Sunmed | Your CBD Store
locations, stated, "Proponents of AB 2223 argue that any fiscal
losses will be offset by increased sales at dispensaries. Since all
of my stores are located where dispensaries are banned, this claim
is simply false and misleading."
According to the California Department of Cannabis Control, 54%
(289 out of 539) of cities and counties in California do not allow dispensaries. Of the
18 independently owned and operated Sunmed | Your CBD Store
locations in the state, 15 are situated in areas where dispensaries
are banned.
"Since October 2021, California
Sunmed | Your CBD Store locations have generated an estimated
$11.5 million in hemp CBD product
sales and contributed approximately $410,000 in state taxes alone, creating hundreds
of jobs," said Marcus Quinn, CEO of
Sunmed | Your CBD Store. "Every one of these stores is expected to
close if AB 2223 passes unamended."
Quinn continues, "Bad actors are already violating existing
regulations. AB 2223 does nothing but monopolize the industry,
causing economic concerns and punishing responsible businesses like
ours that follow strict guidelines to keep consumers safe."
Historically, government enforcement against bad actors in
California has been markedly
insufficient. Concerns are mounting that the state may be
underestimating the actual cost of enforcement necessary for AB
2223 to achieve its goals, as a comprehensive financial impact
analysis has yet to be publicly released.
Without a publicly available plan for budget allocation, cost
analysis, or oversight, AB 2223 appears to be a bill advancing
through the legislative process with minimal scrutiny, raising
serious concerns about its potential financial impact and
effectiveness.
Sunmed | Your CBD Store supports existing regulations and
advocates for increased funding for the California Department of
Public Health (CDPH) to enhance its enforcement capabilities. An
increased budget for CDPH, supported by an excise tax, could
address existing deficiencies and ensure effective enforcement.
To prevent further financial loss for California residents and counteract
monopolistic incentives in the state, Sunmed | Your CBD Store urges
the community to oppose AB 2223 through social media advocacy and
direct engagement with local politicians.
Contact
Patrick Shatzer
Sunmed | Your CBD Store
customersupport@getsunmed.com
About Sunmed™ | Your CBD
Store®
Sunmed | Your CBD Store, an affiliate of Sunflora, Inc., is the
largest hemp retailer in the United
States and the exclusive home of award-winning, hemp-derived
Sunmed products. With 300+ nationwide locations across 42 states,
the brand offers a premium in-store customer experience with access
to 150+ nonpharmaceutical wellness formulas, including clinically
proven sleep gummies, pain relief topicals, USDA-organic oil
tinctures, and CBD for pets. Through in-store education, community
involvement, and groundbreaking clinical research, Sunmed strives
to empower modern wellness and enhance people's lives with natural
science-backed products. Learn more at getsunmed.com
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SOURCE Sunmed
