Score: +4 (4/0/0)
Monterey County Grand Jury • 2021-2022

Monterey County’s Cannabis Industry Up in Smoke

Published: May 12, 2022 24 pages
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Findings and Recommendations 12 findings

F1
The estimated price for finished cannabis product dropped from $1,600 per pound in 2020, to under $500 per pound in 2021, due to a glut in the state cannabis supply.
No recommendations for this finding
F2
The major source of cannabis revenue in Monterey County comes from assessed square footage of cultivation.
No recommendations for this finding
F3
Growers paid around $19 million in assessed taxes in 2021. An additional $1.4 million in taxes were collected from other cannabis businesses, including dispensaries processors, quality assurance testing, delivery, transportation, and disposal.
No recommendations for this finding
F4
In the past five years, just under $70 million has been collected in Cannabis tax revenues.
No recommendations for this finding
F5
Even with the glut of cannabis on the open market, Monterey County is still actively processing a nine-fold increase of provisional licenses over the active/complete licenses.
No recommendations for this finding
F6
County FTEs (staff) have increased from 6 to 28 in fiscal 2021-22 involving multiple agencies that regulate, inspect legal cannabis, and enforce the eradication of illegal cannabis in the County.
No recommendations for this finding
F7
The County Cannabis Program is the county regulatory infrastructure with a budget of $6.3 million, a third of the cannabis tax revenue in 2021.
No recommendations for this finding
F8
Consumers also pay state Sales Tax, state Excise Tax, and county or city sales taxes which results in a four-fold increase in price compared to unlicensed/illegal cannabis.
No recommendations for this finding
F9
Allocation of the Cannabis Tax/Assignment Fund (CTF) is difficult to track. The increase of property values due to requirements of the Cannabis Program has not been available to the public. 16
Related Recommendations (4)
R1
Require the Monterey County Cannabis Program to provide a comprehensive annual report detailing all CTF revenues, allocations, and reserves. This report should include detailed information including budget and distributions to community service agencies. The Cannabis Program must publish its annual report on their website. Implementation
R2
Revise Monterey County Cannabis Program webpage to include easy-to-follow directions for accessing revenues and expenditures. Implementation
R3
Monterey County to monitor and report on improved property value and tax re- assessment due to Cannabis Compliance Regulations. Implementation
R5
Include in the Cannabis Program annual report, an accounting of all FTEs funded by the CTF. Implementation
F10
To help the passage of AUMA, the Board of Supervisors stated the new industry would bring new economic development and jobs to counter losses from NAFTA twenty-two years prior.
No recommendations for this finding
F11
Monterey County did not hire an Economic Development Manager and staff until November 2021, five years after the Cannabis Program was established. The number of new jobs remains unknown.
Related Recommendations (1)
R4
Direct the Economic Development Manager to complete a study on new jobs created by the cannabis industry and its impact on the local economy. Implementation
F12
Many inspections do not operate in a consistent manner nor with a standardized check list.
Related Recommendations (1)
R6
Cannabis Program adopt a consistent process for inspection and check list. Implementation

Agency Responses 5

Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.

No Responses Found 2

Government entities assigned to respond to this report. No response documents have been linked in our database.

Monterey County County
Monterey County Board of Supervisors Elected County Office