Wednesday, August 10, 2022

California Bill Would Legalizes Interstate Cannabis Commerce, But Isn’t That Against Federal Law?

Cannabis operators in CA could be in for a treat as the most recent proposed cannabis bill will generate more profit for them and the state.

This article originally appeared on Cannabis.net and has been reposted with permission.

California’s high rate of cannabis production has inspired a bill to commence cannabis exports. California is one of the highest cannabis producing states in the country. It meets its residents’ demand for marijuana every month and still has a surplus to go around. The state could be generating millions of dollars from this product oversupply annually.

Almost all states in the United States have revoked their strict laws on cannabis use and sales in the last decade. Even in different regions of the world, cannabis laws are constantly evolving. Not all the changes have been good, but more than enough have brought positive changes to the U.S. cannabis industry. California’s cannabis operators could be in for a treat as the most recent proposed cannabis bill will generate more profit for them and the state.

California Gov.: Marijuana Legalization is a 'Civil Rights' Issue
Photo by Matthew Hamilton via Unsplash

California: The Forerunner of Bold Cannabis Moves

California was one of the first states to adopt cannabis reforms in the country. This, coupled with the state’s optimal weather and environmental conditions, has led to the state’s being the highest producer of cannabis.

SB 1326 seeks to approve interstate commercial transactions for cannabis products. This means that the introduced measure, if passed, would affect the import and export of cannabis products between California and other states. Legal cannabis states with low supplies can liaise with the Californian state government to import cannabis to meet the demand of their residents. It doesn’t necessarily have to be a recreational state. The bill would permit states with medical programs to import cannabis raw materials and finished products from California.

The primary objective of the new bill is to reduce the state’s saturated recreational sector. There’s a massive oversupply of cannabis that could be used by other states, and it’s time for the state to tap into this. Some also reckon that the bill was likely created to better position the state’s cannabis industry for future business deals once the federal reforms are finally approved.

At the moment, there are at least two national measures in both chambers of the legislature that could enact a change in the national stance on cannabis. It’s more or less a win-win situation for California’s cannabis sector.

Fears Over the Bill

Although House Bill 1326 brings good tidings for weed-friendly states in the U.S, critics say that the bill could eliminate the opt-out clause that is currently in place. Most weed-friendly states have opt-out clauses for municipalities that have no interest in allowing the establishment of dispensaries and cannabis businesses in their localities. The opt-out clause could be overshadowed by the new bill. The silver lining in this situation is that lawmakers are starting to believe that it couldn’t be such a bad thing for the towns after all. Instead, these municipalities will have more options than the opt-out clause provides.

RELATED: California Gov. Signals Tax Reform As Marijuana Industry Struggles With State’s Regulations

The L.A. Weekly reported that the bill states that businesses and operators registered in other states will not be allowed to participate in California’s cannabis market. All entities and individuals who are interested in conducting commercial cannabis activities in the state must procure the state’s licenses, permits, and other necessary paperwork before they will be allowed to do business here. Simply put, small-scale operators in the state stand to benefit the most, as major industry players and several large cannabis-related companies will be unable to operate in some municipalities.

In addition to this, there are a few provisions to amend health and tax regulations in the existing legislation. Very few changes will be made in other areas.

california
Photo by Sterling Davis via Unsplash

It Has Taken a Long Time

The Executive Director of the California Cannabis Industry Association, Lindsay Robinson, said that the association has been pondering the issue for some months now. According to the cannabis operator, the organization has been talking with various trade associations and key players in the industry about the idea of multi-state or interstate cannabis commerce. She stressed that the process itself is very delicate and must only be handled with caution.

RELATED: 73% Of Marijuana Bought And Sold In California Is Done On The Illicit Market

Lindsay Robinson also noted the association’s commitment to ensuring the California cannabis industry is stabilized. She said that the state’s cannabis industry has to function well and thrive before it can begin its multistate commerce phase.

Senate Bill 1326 would go a long way in settling the cannabis economy of multiple states. The agreements that would be signed would top up the supply lines of the receiving state without production licenses being issued. Cannabis exports are a compelling idea, and with the proper framework, millions of dollars could be made.

This article originally appeared on Cannabis.net and has been reposted with permission.

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