California Department of Cannabis Control
In 2017, ERA Economics prepared a comprehensive economic impact analysis for Standardized Regulatory Impact Analysis (SRIA) of Cannabis Cultivation Regulations, which affect both adult use and medical cannabis cultivation. The economic framework included a linked model of primary cannabis cultivation, including indoor, outdoor, and mixed-light cultivators, and a regional (IMPLAN) model used to estimate indirect and induced economic impacts. A significant part of the project involved a stakeholder survey of cannabis cultivators to determine financial statements, in addition to a survey of various local offices to gather local-sale primary production data. ERA worked closely with the California Department of Food and Agriculture (CDFA), their consultants, and Department of Finance (DOF) economists. In addition, ERA worked in parallel with economists working for the Department of Consumer Affairs and the Department of Public Health. The Standardized Regulatory Impact Assessment (SRIA), SRIA summary form (DF 131), and STD 399 were successfully submitted to DOF, which provided positive comments on the analysis. The SRIA is included in the Initial Statement of Reasons for proposed permanent regulations posted by CDFA in July 2018.
In 2019 and 2020, ERA Economics prepared economic impact analyses of the OCal Program, a state certification program, and the Cannabis Appellations Program. This included working with CDFA staff to establish the project timeline and assisting in development of alternatives and alternative fee structures. ERA prepared preliminary analysis to demonstrate that the proposed changes were not major regulations and coordinated with DOF to review these conclusions.
In 2021 and 2022, ERA worked with industry stakeholders and the newly-formed Department of Cannabis Control to assess market trends, price pressures, and costs. ERA prepared documents to support rulemaking for various ongoing regulatory packages being considered by the DCC.