420 with CNW – California Proposes Tough Changes to Marijuana Regulations

October 26, 2018 03:20:47

The Bureau of Cannabis Control, together with the Department of Public Health and the Department of Food and Agriculture in California have released an updated draft set of rules that will form the permanent regulations which will govern the cannabis industry in the state.

The public has been invited to provide its input to that draft so that the regulators can finalize the document in early December. Public comments will be received until November 5.

Experts say the draft contains a number of “bombs” that will have a major impact on the way the industry operates.

For example, the draft set of permanent rules seeks to prevent third party entities from participating in the delivery of cannabis to consumers or retailers/distributors. Only third parties that have a cannabis license may get involved in the distribution of marijuana.

That measure would affect technological platforms which had come up to generate revenues from cannabis distribution. The draft regulations allow tech platform to facilitate the distribution as long as those platforms don’t earn from such an undertaking. This seems logical, since those tech platforms don’t have a marijuana license issued by the State of California.

Secondly, the draft rules seek to lower the quantity of cannabis that a delivery vehicle may transport during a single trip. Previously, delivery vehicles were allowed to carry cannabis or cannabis products worth a maximum of $10,000. That limit may now drop to $5,000 if that provision stays as it is in the draft rules.

Furthermore, at least $2,000-worth of cannabis from the $5,000 value loaded onto a delivery vehicle has to be for orders that have already been made. This provision may be intended to curb the practice of delivery vans moving with excess products in the hope that additional buyers will show up where the vehicle has gone to take products.

The third major change being introduced in the draft of permanent rules is the requirement for cannabis businesses to disclose everyone who has a stake in those businesses. The regulators want to know everyone who stands to benefit from the industry, so silent partners will become a thing of the past in the marijuana industry.

On a brighter note, the updated draft intends to reduce the stringent test requirements that previously resulted in many products failing those tests and being recalled from the market. This provision seems to be in response to a cry from the industry regarding the current testing protocols.

Additionally, licensed marijuana events will also no longer be restricted to county fairgrounds. This paves the way for a variety of cannabis events to crop up within the state as the years go by.

The updated draft rules seem to have been informed by the different situations on the ground as the industry evolves. Some areas have been tightened while other regulatory areas have seen restrictions eased somewhat. It remains to be seen what marijuana companies like Cannabis Strategic Ventures, Inc. (OTC: NUGS) and Canopy Rivers Inc. (TSX.V: RIV) make of those draft permanent regulations.

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