New Marijuana Regulations in California Are Causing Major Stress
Legalizing it has been a tough road for the cannabis industry.
California Bureau of Cannabis Control (BCC) released its highly anticipated new proposed regulations late on Friday sending anyone with any stake whatsoever in Cali’s massive marijuana industry scrambling to grind up the 162 page document. To add to that they are only giving them a 15 day period to get it done.
New regulations have gotten lots of controversies, but one that has sparked a major internal debate within the California cannabis industry is § 5032 Commercial Cannabis Activity.
The highlights of this section read as follows:
All commercial cannabis activity shall be conducted between licensees.
Licensed retailers and licensed microbusinesses authorized to engage in retail sales may conduct commercial cannabis activity with customers in accordance with Chapter 3 of this division.
Licensees shall not conduct commercial cannabis activities on behalf of, at the request of, or pursuant to a contract with any person that is not licensed under the Act. Such prohibited commercial cannabis activities include, but are not limited to, the following:
- Procuring or purchasing cannabis goods from a licensed cultivator or licensed manufacturer.
- Manufacturing cannabis goods according to the specifications of a non-licensee
- Packaging and labeling cannabis goods under a non-licensee’s brand or according to the specifications of a non-licensee.
- Distributing cannabis goods for a non-licensee.
It is clear-cut, obtain a license according to what part you take in the cannabis industry. There are different types of shops on the supply chain – from cultivating, to processing and manufacturing, to transporting, distributing, and retailing. Everyone in that chain needs to hold a license. You want to make money participating in the legal cannabis industry, you must follow the laws. What section 5032 does it seems to squash the practice of unlicensed white labeling in an attempt to clamp down on what the state sees as tax – and regulation – evasion. They’ve discovered that they cannot enforce their rules on companies that have no BCC license at stake. Don’t try to cut corners and obtain your license.
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