Report Estimates AB 1356 Could Lead to $2.1 Billion More in Cannabis Sales in CA

UPDATE 5/30 – Assemblyman Ting could not muster the two-thirds vote of the Assembly required to alter the voter-approved initiative to prevent cities and counties from banning pot shops. Read more. 

A new report from Applied Development Economics (ADE) in Walnut Creek, CA estimates that the passage of AB 1356, a bill currently before the California Assembly, will allow between 1,195 and 3,472 additional cannabis retailers in the 392 incorporated cities and unincorporated county areas that voted in favor of Prop. 64.

The potential increase in sales of regulated and taxed cannabis could be $1.5 and 2.1 billion and potentially support up to $410.6 million to $586.8 million of additional state and local tax revenues (including local taxes).

The report comes as AB 1356, by Assemblyman Phil Ting, faces a floor vote in the California Assembly this week. The bill would require localities where Prop. 64 passed by a majority vote to permit 1/6 as many cannabis retailers as it does liquor retail outlets, or one retailer for every 15,000 residents.

Tax revenues from adult cannabis legalization have fallen short of estimates, in large measure because of bottlenecks at the local level, despite statewide support for legalization. A new report from (with data from shows that California is lagging behind other legalized states in local licensing.

ADE was founded in Berkeley in 1985, and conducted the first comprehensive socio-economic study of a major regional air quality plan in California. Their clients include numerous cities and towns, air quality districts, regional planning agencies, developers, and nonprofits.

All California bills must pass through the house where they were introduced by this Friday, May 31, or be put on hold until next year.

Read the ADE Report

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