Analyst Warns About Uncertainty Over Size California’s Marijuana industry, as Well as Possible Federal Crackdown

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Gov. Jerry Brown’s proposal to merge regulations of medical and recreational marijuana sales in California is a wise move, but officials should be careful in allocating large amounts of money to the new system, the state Legislative Analyst’s Office concluded Tuesday.

In this file photo, a bowl of medicinal marijuana is displayed in a booth at The International Cannabis and Hemp Expo April 18, 2010, in Daly City. (Credit: Justin Sullivan/Getty Images)

In this file photo, a bowl of medicinal marijuana is displayed in a booth at The International Cannabis and Hemp Expo April 18, 2010, in Daly City. (Credit: Justin Sullivan/Getty Images)

The analyst urged caution, saying it is difficult to estimate how many marijuana businesses will pop up, and there is a chance the new Trump administration may choose to start enforcing federal laws that classify marijuana as an illegal drug.

“We find that determining the level of resources needed in 2017-18 and beyond is complicated by the significant uncertainty caused by other issues, such as the future size of the cannabis industry and potential federal actions,” the analyst’s report said.

The report endorsed merging a system for regulating medical marijuana approved by the Legislature in 2015 and one for recreational pot approved by voters when they passed Proposition 64 in November. Having one system will save money, reduce duplication and create less confusion for the industry, the report said.

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