On Friday, July 13, 2018, 315 pages of draft regulations for California’s cannabis industry were read, reread and issued by three state agencies responsible for overseeing the cannabis market/

Regulators are working hard to compile a final draft of regulatory framework for the multi-billion dollar cannabis market in California. Industry experts claim that, under the new rules, the most significant amendments will relate to packaging, delivery, concentrates and edibles.

Last November, emergency regulations were issued and since this time, California’s cannabis industry has been operating under these regulations.

The highly-anticipated first draft of permanent cannabis industry rules for California include the following:

• Allow marijuana products to be delivered into any jurisdiction in California, a move that will expand the market for delivery companies and allow MJ businesses to serve more consumers.
• Permit an increase in potency for some manufactured edible products.
• Update the requirements covering child-resistant packaging for products.

Khurshid Khoja is a veteran industry attorney who has already reviewed the rules set forth by the Bureau of Cannabis Control (BCC).

“There’s some pretty monumental stuff in there,” said Khoja.

Max Mikalonis is a legislative cannabis advocate who works at K Street Consulting in Sacramento. He also agrees with Khoja, saying that California’s draft cannabis regulations will clear the smoke clouds for companies who are unsure about how to proceed in the state’s new industry, which is set to outperform the rest of the world.

“Each set of regulations has tried to be more clear than the previous set,” Mikalonis revealed.

Cannabis delivery will be permitted in any California jurisdiction

Perhaps the most notable adjustment to the draft regulations for California’s cannabis industry, according to Mikalonis and Khoja, was a clear-cut explanation from the Bureau that permits cannabis delivery in any California jurisdiction.

“That’s a big win,” Mikalonis pronounced.

Before these changes had been made to the draft regulations for California’s cannabis industry, consumers living in regions that had restricted medicinal or recreational cannabis were left with no other option but to journey to a weed-friendly area.

The marketplace is predicted to swell as a result of the Bureau’s decision to permit cannabis deliveries in any jurisdiction within the State of California.

“It’s also going to do wonders for … businesses that need more of an entry point into the industry. They don’t need to have the kind of bankroll you need to have for several cultivation licenses.” Khoja explained.

“You can get your foot in the door through these delivery-only retail licenses.”

Potency increase for some products

Also contained in the updated draft regulations for California’s cannabis industry is information pertaining to product potencies. A maximum of 500 milligrams will now be allowed for individual packages of “orally dissolving” medical cannabis products.

This is 400 milligrams more than what the Department of Public Health had previously allowed. However, doses must be fixed to 10 milligrams.

Cannabis product packaging must be child-proof

Under the new draft regulations for California’s cannabis industry, the BCC has updated the child-resistant packaging rules for exit packaging. This type of packaging is what the actual cannabis product is contained inside when a consumer walks out of a dispensary.

Exit packaging should be opaque, resealable and child-proof, Mikalonis said.

Safety is the key here, but the new draft regulations for California’s cannabis industry aren’t necessarily good news for everyone; particularly the “cannapreneurs” who have spent a lot of money on child-resistant packaging.

“So for some folks who work on packaging or for some companies that spent heavily on their packaging, they may experience a bit of whiplash from how fast the proposed regs changed again,” Mikalonis added.

California’s first draft of cannabis regulations provide clarity for distributors

Regulators must be paying close attention to the industry, because they have cleared the smoke surrounding California’s cannabis industry regulations. Distributors had many questions, of which the majority have now been answered.  

“Those are the kinds of things distributors have been asking, ‘Can we do this, can we do this?’” Khoja said.

“They’re accommodating some business practices that are just rational and make sense.”

For example, distributors are now aware of the fact that they can manufacture pre-rolled joints and that they are not limited to transporting lab-tested products to retailers. Under the updated guidelines, distributors can now transport cannabis products to other distributors, too. The subject of advertising remains to be discussed and clarified by the BCC.

“If all goes well, we should see these permanent regs adopted before year’s end. But between now and then, there are going to be comment periods,” he concluded.