If the California government Newsom is voted out today, the cannabis industry could suffer

On Tuesday, California voters will decide whether Governor Gavin Newsom will continue his first term or be removed from office.

If Gavin loses his position as governor, the decision will have a huge impact on California’s future, with ramifications likely to be felt in almost every area of ​​the country’s most populous state … and cannabis is no exception.

First, let’s take a look at an FAQ that the NY Times calls “one of the most remarkable secrets of the moment”: How did a Democratic star in the bluest states face a recall?

Photo by Patrick Tomasso via Unsplash

Newsom’s recall was fueled in part by a public humiliation event when the exposed governor was caught on camera eating publicly with a group of friends and lobbyists at a high-end restaurant during the height of California’s strict lockdown. The event catalyzed the Republican base, which continues to rage against lockdowns and the use of face masks across the country.

How will the state’s legal cannabis industry be affected if Newsom is ousted?

Newsom has historically been pro-cannabis. He was an outspoken supporter of Proposition 64, which legalized adult cannabis use nationwide in 2016.

Conrad Gregory, president of the California Cannabis Industry Association, noted that Newsom stood up as a leader in cannabis reform during its 2018 campaign, beginning its mandate with an initial regulatory system aimed at uniting adult laws and pharmaceuticals .

However, the governor was soon overwhelmed with competing, pandemic-related priorities.

“As the largest and one of the oldest cannabis markets in the country, California should lead the nation when it comes to a well-regulated and successful market, but that takes a lot more effort and political commitment,” said Gregory, who is also the senior vice president of Compliance and Government Relations at Harborside Inc.

RELATED: California Gov. Gavin Newsom: Marijuana Legalization Is A “Civil Rights Problem”

While Newsom’s approach to the cannabis industry is deemed satisfactory, taxes, regulatory hurdles, retail access, and the illegal marketplace all have a significant impact on the ability of businesses large and small to thrive in California, Gregory said in an interview with Benzinga.

Kyle Kazan, co-founder, chairman and CEO of Glass House Brands, said the industry has been calling for tax breaks and enforcement to make the legal market more competitive with the illegal.

“Unfortunately, this hasn’t happened on any scale that has put a lot of pressure on businesses, especially mums and dads,” Kazan told Benzinga, adding that California operators have paid $ 2.8 billion in taxes since 2018.

Photo by Animaflora / Getty Images

“California needs long-term preparation and work to shape the national landscape before it shapes us,” added Gregory of Harborside, who warned that Newsom’s recall would most likely halt or destroy any progress that has already been made.

“As it stands now, the governor recently merged all three regulators into one that will manage the entire cannabis supply chain. The process of clearing this consolidation is currently underway, including appointments and rulemaking, ”said Gregory.

The switch of horses could now seriously disrupt that process and further hamper licensing, enforcement and regulatory tightening efforts, he added.

RELATED: Industrial hemp products, including CBD, are finally legal in California

Gregory also pointed out a number of hemp regulations that were successfully passed by the state legislature last week and are now coming to Newsom’s desk.

“The bill will again create new regulations and increased agency activity to implement and oversee the hemp industry and its interactions with the cannabis industry,” said Gregory.

The law allows, among other things, the addition of hemp extracts with CBD to foods, beverages and cosmetic products; sets new rules for hemp growers and businesses; holds new standards for non-state hemp products and bans Delta-8-THC outside of regulated cannabis sales channels.

“It would be best for the hemp and cannabis industries to see these changes through and get to the other side,” concluded Gregory.

Meanwhile, a poll released Friday by UC Berkeley’s Institute of Governmental Studies clears Newsom with 60% support. notes, however, that a slight slant on the balance sheet could result in a majority voting him out, resulting in the candidate with the most votes taking the job.

The polling stations open at 7 a.m. and close on Tuesday at 8 p.m. local time. Voters and the rest of us can see the preliminary results for their district live on the California Secretary of State’s website starting at 8:00 p.m. local time.

This article originally appeared on Benzinga and was republished with permission.