Cannabis Knowledge & Insights

Weekly California Cannabis Regulation Update: April 15

This week in California was relatively quiet, with a few updates related to Los Angeles cannabis ordinances.

On the state level, legislators shelved a bill related to cannabis delivery while also making moves to legalize CBD.

Here’s what you need to know to start your week:

Update to Los Angeles Cannabis Operators

The Los Angeles Rules, Elections and Intergovernmental Relations committee met this week on a few cannabis-related issues. There were six agenda items discussed at the meeting, including:

  1. Amending the LA Municipal Code in regards to a first-come, first-serve application process for recreational cannabis retailers, as well as Phase 3 storefront retail applicants, the deadlines for Phase 2 applicants, and other regulatory rules.
  2. Support for maximum resentencing of cannabis related convictions; as well as asking the DA’s office to find all cannabis-related cases eligible for expungement and provide conviction relief to those eligible.
  3. The committee proposed provisional licenses for licensees with an expired, temporary  licenses who applied for an annual state license before their temporary license expired.
  4. Members of the committee expressed support for SB 51, a bill providing licenses and regulations underpinning limited charter banks and credit unions for the cannabis industry.
  5. Support for expanded access of Track and Trace, with a statewide cannabis emblem to be displayed on safe and legal cannabis businesses
  6. The committee proposed prohibiting an online platform from displaying ads for cannabis products unless the operator’s license number is shown in the advertisement.

These agenda items are good indicators of the city council’s stance and outlook toward the cannabis industry overall. While the agenda didn’t lead to any new concrete measures, keep an eye on these agenda items as industry regulations change constantly.

California Shelves Bill to Block Cannabis Delivery

California state legislators put off voting on a bill that would have allowed cities to restrict home delivery of cannabis.

Earlier in April, 24 cities sued the state over the standing regulation that allows for home delivery of cannabis state-wide, including in cities and municipalities that prohibit cannabis dispensaries.

The states argue that home deliveries in cities that outlaw cannabis sales could lead to illegal sellers blending in with licensed delivery operators, as well as a potential spike in car robberies.

As result, state legislators had proposed a bill that would limit cannabis delivery for those customers who live in so-called “cannabis deserts.” This would not only limit access for recreational users, but also medical cannabis consumers. The bill was deadlocked, and therefore shelved until the lawsuit could be concluded.

California and Texas Move to Legalize CBD

California and Texas are two states taking the lead to push for federal recognition of CBD as a legal substance.

CBD is becoming very popular nationwide, and sold more commonly than most cannabis products. However, federal regulation mandates that CBD products are illegal; some local authorities are forcing retailers to pull CBD products from their shelves.

California and Texas are campaigning to legalize the cannabis compound, starting with a hearing by the FDA on the matter in May. For CBD retailers, this is big news that could impact the security of your business.

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