As California’s recreational cannabis market marks 10 years, a Sacramento dispensary owner says the industry has become more established — but significant challenges remain.For cannabis businesses, April 20 is one of the busiest days of the year. At Crystal Nugs in Sacramento, CEO Maisha Bahati said customer traffic was steady throughout the day.“We’ve had a line since we opened at 9 a.m. It’s been consistent,” Bahati said.This year’s 4/20 celebration comes as California marks a decade of legal recreational marijuana. Voters approved Proposition 64 in 2016, legalizing adult-use cannabis in the state.Bahati said the industry has changed dramatically over that time.“It’s really business now,” Bahati said.She said tighter oversight and higher expectations have reshaped how cannabis companies operate.“Everyone has expectations, making sure your business is running correctly,” Bahati said. “So I think it’s tightened up as far as how you run these businesses.”Bahati said one of the biggest challenges has been balancing compliance in a highly regulated industry while still serving customers effectively. She said communication with local leaders has been critical.“It’s been a lot of communication with our city leaders to ensure that, ‘Hey, we’re doing a good job here,’” Bahati said. “Let’s open up some more opportunities, or even voicing our concerns, or maybe what’s not working. ‘Hey, how can we get this to work better?’”Taxes remain one of the biggest threats to survival for cannabis operators, Bahati said, adding that many businesses that launched around the same time as hers are no longer operating.“The taxes have been really tough,” Bahati said. “And again, you don’t want to raise prices on your customers because then they’ll go to the black market. You don’t want that to happen.”Since the passage of Proposition 64, the state says it has cleared more than 215,000 cannabis convictions, disrupted more than $1.2 billion in illicit cannabis activity, and used cannabis tax revenue to help fund local projects.Despite the hurdles, Bahati said she is optimistic about the future, especially the possibility of cannabis consumption lounges in Sacramento.“We’re trying to appeal to the area we’re in,” Bahati said. “So it’s going to be upscale. We’re going to appeal to, like, the celebrity clientele.”Bahati said her business is prepared if the city allows those lounges to move forward.“We have positioned ourselves very well,” Bahati said. “We’re just waiting for the green light.”For now, she said, she remains encouraged by the direction of both the city and the industry.“The industry is growing, Sacramento is growing,” Bahati said. “And so I think that we welcome all that.”Although cannabis is legal in California, cities and counties still have the authority to ban cannabis businesses, creating a patchwork across the state where licensed retailers are allowed in some communities and prohibited in others.See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel

SACRAMENTO, Calif. —

As California’s recreational cannabis market marks 10 years, a Sacramento dispensary owner says the industry has become more established — but significant challenges remain.

For cannabis businesses, April 20 is one of the busiest days of the year. At Crystal Nugs in Sacramento, CEO Maisha Bahati said customer traffic was steady throughout the day.

“We’ve had a line since we opened at 9 a.m. It’s been consistent,” Bahati said.

This year’s 4/20 celebration comes as California marks a decade of legal recreational marijuana. Voters approved Proposition 64 in 2016, legalizing adult-use cannabis in the state.

Bahati said the industry has changed dramatically over that time.

“It’s really business now,” Bahati said.

She said tighter oversight and higher expectations have reshaped how cannabis companies operate.

“Everyone has expectations, making sure your business is running correctly,” Bahati said. “So I think it’s tightened up as far as how you run these businesses.”

Bahati said one of the biggest challenges has been balancing compliance in a highly regulated industry while still serving customers effectively. She said communication with local leaders has been critical.

“It’s been a lot of communication with our city leaders to ensure that, ‘Hey, we’re doing a good job here,’” Bahati said. “Let’s open up some more opportunities, or even voicing our concerns, or maybe what’s not working. ‘Hey, how can we get this to work better?’”

Taxes remain one of the biggest threats to survival for cannabis operators, Bahati said, adding that many businesses that launched around the same time as hers are no longer operating.

“The taxes have been really tough,” Bahati said. “And again, you don’t want to raise prices on your customers because then they’ll go to the black market. You don’t want that to happen.”

Since the passage of Proposition 64, the state says it has cleared more than 215,000 cannabis convictions, disrupted more than $1.2 billion in illicit cannabis activity, and used cannabis tax revenue to help fund local projects.

Despite the hurdles, Bahati said she is optimistic about the future, especially the possibility of cannabis consumption lounges in Sacramento.

“We’re trying to appeal to the area we’re in,” Bahati said. “So it’s going to be upscale. We’re going to appeal to, like, the celebrity clientele.”

Bahati said her business is prepared if the city allows those lounges to move forward.

“We have positioned ourselves very well,” Bahati said. “We’re just waiting for the green light.”

For now, she said, she remains encouraged by the direction of both the city and the industry.

“The industry is growing, Sacramento is growing,” Bahati said. “And so I think that we welcome all that.”

Although cannabis is legal in California, cities and counties still have the authority to ban cannabis businesses, creating a patchwork across the state where licensed retailers are allowed in some communities and prohibited in others.

See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel