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Business

California Proposes Permanent Regulation Changes for Marijuana Businesses

LAST WEEK, the California Bureau of Cannabis Control released their latest version of the proposed permanent cannabis regulations. The most recent amendments will affect marijuana delivery and dispensaries in several ways so business owners take note.

The most dramatic changes pertain to child-resistant packaging and marijuana delivery requirements, but their are also changes to testing and licensing. We’ve highlighted some of the most important changes that marijuana delivery and dispensaries will feel if the proposed permanent cannabis regulations are approved.

Marijuana Delivery Regulations

No longer will third party companies be able to deliver cannabis for licensed dispensaries. However they will allow tech companies like Weedmaps, Potify, and Eaze to facilitate marijuana delivery services as long as there is no profit generated from sales. This will mean a huge shift in how these tech companies assist cannabis retailers.

Another big change that delivery drivers and dispatchers should be aware of is the limits for the driver’s onboard inventory. Currently the max value to be carried by cannabis couriers is set at $10,000 but new regulations reduce that number to $5,000 and at least $2,000 must already be assigned to delivery orders before departing the dispensary.

This is why it’s so important to use a delivery software that can assign delivery orders based on the onboard inventory and traffic condition. Having the ability to view what each driver is carrying will allow delivery services to fulfill orders on time despite the new regulations.

Child-Resistant Marijuana Packaging

The new proposed permanent cannabis regulations for California stipulate that manufacturers will be given until 2020 to comply with child-resistant packaging standards. Once again, this responsibility and expense will be passed on to cannabis retailers who will have to provide exit packaging for every customer purchase. Not only will this add to monthly costs, it will likely affect pricing for marijuana consumers as a consequence.

Some slight changes will also be made to improve the testing protocol for cannabis manufacturers. The state will now authorize distributors to label the THC and CBD content after the testing process to avoid rejections and provide more precise labelling for consumers. Distributors would be required to add the label with the correct testing results before selling it to California marijuana dispensaries.

Cannabis Business Licensing

Once the new permanent cannabis regulations are passed, there will be no more temporary business licenses issued to marijuana delivery or dispensaries. Additionally the licensing fees will now be based on the estimated yearly income of the cannabis business. The BCC has released an annual license fee table for businesses to consult to understand their licensing fees.

Marijuana dispensaries will also be required to include examples of how they will operate in their premises diagram when applying for a new annual license. Detailing how new packages are accepted from the distributor, prepared for retail, and sold to customers will need to explained in the premises diagram.

Track and Trace System

The Bureau of Cannabis Control has also made amendments regarding the Track-and-Trace system for California, Metrc. Licensees will now have five business day to complete the Metrc training rather than 5 calendar days. This will help make the training more consistent with all state licensing authorities so that there are no delays on the completion of Metrc training.

Cannabis retailers will also be required to report the destruction and disposal of marijuana products through the state’s track-and-trace system. The BCC want to ensure that business owners report both the destruction and disposal and recording only one of these will not remove the need to report the other. Fortunately this can be reported using your dispensary point-of-sale if it’s integrated with Metrc’s track-and-trace software.

 

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