Hide Transcript Show Transcript

FOR THE FIRST TIME EVER, THE STATE OF CALIFORNIA IS NOW CULTIVATING CANNABIS JOBS. >> ANYWHERE FROM HYDROPONICS, TO SECURITY, TRANSPORTATION. >> IF YOU ARE INTERESTED YOU CAN SIGN UP. MIKE: AND TODAY HUNDREDS OF PEOPLE LINED UP FOR NEW OPPORTUNITIES, IN AN INDUSTRY THAT USED TO BE ILLEGAL UNTIL CALIFORNIA VOTERS APPROVED PROP 64 NEARLY THREE YEARS AGO. >> I’M JUST CURIOUS. I’VE BEEN INTERESTED IN THE CANNABIS INDUSTRY FOR SOME YEARS, AND SINCE THE LEGALITY HERE IN CALIFORNIA, THERE’S JUST A WORLDWIDE EXPLOSION. MIKE: AN EXPLOSION THAT IS NOW GENERATING JOB GROWTH FOR COMPANIES LIKE NORTHSTAR HOLISTIC. >> WE HAVE EIGHT OPEN POSITIONS AND WE ARE LOOKING TO FULFILL THEM ALL. MIKE: TAYLOR JORDAN IS IN CHARGE OF COMPLIANCE FOR NORTHSTAR HOLISTIC, MAKING SURE HER COMPANY HAS ALL THE NECESSARY STATE PERMITS, BUT IT’S HARD TO COMPETE AGAINST THE UNDERGROUND MARKET. JUST THIS WEEK, DEPUTIES CONFISCATED 828 MARIJUANA PLANTS FROM AN ILLEGAL GROW IN BUTTE COUNTY. >> THE BLACK MARKET IS THRIVING BECAUSE THEY DON’T HAVE TO PAY UP TO 30% IN TAXES ON THEIR PRODUCT. AND SO A LOT OF PEOPLE WOULD RATHER GO TO THE BLACK MARKET AND GET UNTESTED, UNSAFE MATERIALS. MIKE: CANNABIS IS COSTLY IN CALIFORNIA FOR A REASON. >> THE TAXES ARE REALLY HIGH. MIKE: STATE TREASURER FIONA MA BELIEVES THOSE HIGH TAXES ON CANNABIS ARE THWARTING THE INDUSTRY’S ABILITY TO GROW. >> IT COULD BE ANYWHERE FROM A $6 BILLION TO $20 BILLION INDUSTRY HERE IN CALIFORNIA. AND WE CLEARLY ARE NOT COLLECTING ALL THE TAXES DUE. IT IS VERY HARD AS A STATE AGENCY TO BE ABLE TO AUDIT THIS INDUSTRY, ESPECIALLY WHEN IT’S AN ALL CASH BUSINESS. MIKE: BUCKETS OF CASH NEEDED FOR CANNABIS COMPANIES TO PAY THEIR TAXES AND PAY THEIR WORKERS. >> WE HAVE TO PAY OUT IN CASH. WE CAN’T PAY BY CHECK. WE CAN’T PAY BY DIRECT DEPOSIT, AND OUR BANK ACCOUNTS ARE ALWAYS GETTING SHUT DOWN. AND SO WE’RE CONSTANTLY JU

Advertisement State-sponsored cannabis job fair draws hundreds in Sacramento Lack of banking and high taxes are obstacles Share Shares Copy Link Copy

Hundreds of people lined up for jobs Thursday in Sacramento seeking employment in an industry that used to be illegal. Now the state of California is cultivating cannabis careers. The Employment Development Department is now actively helping job seekers in the marijuana industry. “Anywhere from hydroponics to security, transportation," said Thomas Biorn, a manager with EDD. The cannabis industry was illegal until California voters approved Proposition 64 in 2016. “I’m looking for a cultivation job,” Joshua Duncan said. Duncan explained he’s “been in the industry about four years now, and I’m just kind of looking for something else, looking to expand.”“I’m just curious. I’ve been interested in the cannabis industry for some years, and since the legality here in California, there’s just a worldwide explosion,” said Lisa Lemons, one of the job seekers. It’s an explosion that is now generating job growth for companies like Northstar Holistic.“We have eight open positions, and we are looking to fulfill them,” said Taylor Jordan, of Northstar Holistic.Jordan's job is to make sure her company has all the necessary permits. But it’s hard to compete against the underground market.Just this week, deputies confiscated 828 marijuana plants from an illegal grow in Butte County. “The black market is thriving because they don’t have to pay up to 30% in taxes on their product,” Jordan said. “And so a lot of people would rather go to the black market and get untested, unsafe materials.”Cannabis is costly in California for a reason.“The taxes are really high,” said California Treasurer Fiona Ma.Ma believes those high taxes on cannabis are thwarting the industry’s ability to grow.“It could be anywhere from a $6 (billion) to $20 billion industry in California,” Ma said. “And we clearly are not collecting all the taxes due. It is hard as a state agency to audit this industry, especially when it’s an all-cash business.”Buckets of cash are needed for cannabis companies to pay their taxes and pay their workers.“We have to pay out in cash,” Jordan said. “We can’t pay by check. We can’t pay by direct deposit and our bank accounts are always getting shut down. And so we are constantly juggling how we pay our taxes.”Cannabis is an all-cash business that puts companies at risk.“We take large sums of cash into buildings all the time,” Jordan said. “From having to put it into your car, to walk into the building, there’s a lot of vulnerability and getting robbed – safety is at risk, yes.”Marijuana is big business in California, generating some $317 million last year in excise taxes for the state, according to figures provided by the Department of Finance. But because banks are federally insured, they are reluctant to do business with cannabis companies since marijuana is not legal in all 50 states. But Ma is sponsoring Senate Bill 51, which would allow state-chartered banks to apply for a cannabis-specific license in what she calls a closed-loop system. “If you were a cannabis business, you could open up an account with that bank,” Ma said. “You could pay your landlord, you could pay your vendors, you could pay your employees. So closed loop, meaning it wouldn’t be just any bank out there, but it would be banks in the network.”The cannabis banking bill is on hold until next year, and Ma said she is working with the governor’s office to make changes to the bill that will win broader support.