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California Cannabis Regulations During the Transition Period

During the transition period of California's new cannabis regulations (from now until July), there are a few questions cannabusiness owners may have. Here, we go over a few of the regulations that will help you stay compliant as your business grows.

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Business must always be conducted between licensees

Once you have your temporary license, you're required to only do business with other licensees — this is true, for example, even if the manufacturer you've been working with for years on the medicinal side hasn't yet gotten their temporary license. 

You can (for now) do business with both license types

For now, the emergency regulations allow you to do business with medicinal (M) businesses if you deal with adult-use (A) cannabis, and vice versa. After the transition period ends (July 7, 2018), you're required to only do business with those who have the same type (M or A) as you do. 

You can sell transition period products

If you have products on hand that were in stock before you received your temporary license, you can sell it — but the products must conform to retail regulations (for example, it must be in an opaque package, it must be in child-resistant packaging, and it must have a specific government warning on the packaging).

You can't sell your products to any type of customer

While you can do business with other licensees, A-type retailers cannot sell to qualified M-type patients, and M-type retailers cannot sell to just any adult who is 21 or over.

You must participate in tracking and tracing — to a point

While temporary licensees aren't required to record cannabis activity in the state's official track-and-trace system, you'll still be responsible for tracking and recording all cannabis commercial activities — on paper at a minimum. Once you've received your annual license, you'll have a limited amount of time to get on board with the state official system. 

CCA will help you through these regulations

CCA will help your cannabis business become compliant by guiding you through these new regulations every step of the way. We offer advocacy at the state and local level to help ensure regulators are confident our clients meet — and exceed — compliance standards.
 

Monica Beyer