California regulators announced dozens of changes to proposed rules for the state’s recreational and medicinal marijuana markets, kicking off a frenetic 15-day public comment period.
The amendments to proposed rules issued in July are tucked into 318 pages of documents released by the Bureau of Cannabis Control, the Department of Food and Agriculture and the Department of Public Health. The changes respond to some of the 6,000 public comments that were submitted to the state this summer.
- Cannabis delivery would be prohibited by third-party companies that do not have state MJ commercial licenses, but the rules do allow for tech platforms to help facilitate deliveries as long as there’s no direct profit-sharing based on sales. The move could undercut business models of companies such as Eaze and Weedmaps when it comes to delivery, both Figueroa and Crockett said.
- Licensed cannabis businesses would be required to disclose far more information about individuals and companies that hold ownership stakes – a move Figueroa said amounts to a “ban on silent partners.” Crockett added that the BCC “wants to know who’s standing to profit and who has a standing in each of these companies.”
- Licensed MJ events would no longer be confined to county fairgrounds, which means there would likely be a proliferation of cannabis events of various types.
- Testing requirements would be modified to ease the previously strict mandates that have led to a number of product failures and recalls.
As reported by Law.com, the latest BCC rules will not allow localities to ban deliveries within their jurisdictions and licensing fees have been reduced to $2,500 a year for businesses with sales under $500,000. Some more advertising and branding regulations have been proposed as well, such as no product can be shaped in a caricature or realistic depiction of a human being, no billboards are allowed within 15 miles of the California state line, and retailers are (for some reason) barred from giving away non-cannabis products (in addition to cannabis and cannabis-infused products).