Legislative Update – July 4, 2018

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Upcoming at the State Capitol

Senate Floor Schedule

The Senate will be in session on July 5, at noon. The Senate goes on Summer recess July 6 and will return on Monday, August 6.

Assembly Floor Schedule

The Assembly will be in session on July 5, at noon. The Senate goes on Summer recess July 6 and will return on Monday, August 6.

Committee Hearings

Fiscal and policy committee hearings will resume after the Summer recess.

Other Events

Happy Independence Day!

On Tuesday, July 10, the National Cannabis Industry Association (NCIA) will hold their third Northern California Quarterly Cannabis Caucus in San Francisco, CA.

On Thursday, July 12, the NCIA will head down south and hold their Southern California Quarterly Cannabis Caucus in sunny San Diego, CA.


Week in Review: July 1st Packaging and Testing Requirement Deadline Leaves Dispensary Shelves Bare

On July 1, the temporary grace period for cannabis dispensaries to offer untested cannabis products ended, forcing an estimated $90 million+ worth of products to be destroyed. The new rules require all cannabis products be tested and meet all regulatory and statutory packaging standards before it can be offered by a retailer.

Prior to the implementation of the permanent rules, a group of cannabis businesses and trade associations made a last minute plea to Governor Jerry Brown to extend the temporary grace period. Chief among their concerns was the limited availability of state licensed testing facilities; creating a bottleneck that would force legal operators to destroy a significant part of their inventory. Once the legal untested supply was destroyed, the group argued, consumers would turn to the illicit market to meet their cannabis needs. Several online pictures and videos emerged of cannabis retailers with empty shelves on July 1. The fallout of the transition should become clearer over the next few months.

The Mercury News: “California pot shops struggle to keep shelves stocked as new state rules roll out”

Marijuana Business Daily: “Last-minute California cannabis industry ‘Hail Mary’ to delay July 1 transition”

California Bureau of Cannabis Control: Transition Fact Sheet

California Department of Public Health: Packaging Requirements Fact Sheet


Week Ahead: The Legislature Goes on Recess for Some R&R and the Industry Prepares for the Final Leg of the 2018 Legislative Session

With legislators are out on recess, many in the industry will use this time to catch up on their own rest while also shoring up support for any remaining bills that are still alive. Among the top bills that are moving through the legislative process include:

SB 829 (Wiener), would exempt qualifying compassion care programs from the cultivation and excise tax enacted by Proposition 64. Supporters argue that the new taxes have forced compassionate use programs to close their doors because they can no longer afford to donate the cannabis and cover the tax liability. The bill is currently in the Assembly Appropriations Committee and will be heard in mid-August as a part of the final Suspense File hearing.

SB 930 (Hertzberg), would establish a state-chartered banking system to allow financial institutions to offer basic banking services. The bill has passed several significant legislative hurdles and may be facing its toughest challenge yet. The bill will be heard in the Assembly Appropriations Committee mid-August as a part of the final Suspense File hearing.

SB 1294 (Bradford), would require the Bureau of Cannabis Control to create a statewide cannabis equity program taskforce, and offer assistance to state and local cannabis entities that have been disproportionately impacted by the War on Drugs. Many in the industry believed that Proposition 64 would create new opportunities for all Californians to engage in the cannabis industry; including those that been marginalized or criminalized under previous state marijuana laws. However, since January 1, entities with significant financial resources have dominated the cannabis industry leaving many of the disadvantaged individuals without resources or an opportunity to enter the market. The bill will be heard in the Assembly Appropriations Committee mid-August as a part of the final Suspense File hearing.

AB 2020 (Quirk), would expand where cannabis events could be held, as long as the local governing entity approves. Current law limits cannabis events to the state’s 23 county fairgrounds or 52 active district agricultural associations, and many in the industry argue that these limits have stifled economic opportunities for both cannabis businesses and the local governments that support commercial cannabis activities in their communities.The bill will be heard in the Senate Appropriations Committee mid-August as a part of the final Suspense File hearing.

AB 2641 (Wood), similar to AB 2020, would also allow the Bureau of Cannabis Control to issue a temporary retailer license for cultivators and manufacturers to sell their products at events. The bill will be heard in the Senate Appropriations Committee mid-August as a part of the final Suspense File hearing.


Questions about any of the bills or events mentioned above? Contact us at info@thecannabisfile.com or here.

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