Inventory Situation Could Get Sticky for Marijuana Businesses

Time is almost up for marijuana business owners to achieve full compliance of testing and packaging regulations. For six months, businesses have enjoyed a grace period that allowed them to sell marijuana products that were not in total compliance so long as they included a label indicating any safety standards the product did not meet. As of July 1, owners must clear their shelves of all product that does not meet regulations, resulting in an influx of cannabis sales in the month of June and could lead to an impending shortage, according to the Orange County Register.

When Proposition 64 went into effect Jan. 1, it brought with it new sets of rules in regards to recreational marijuana sales. Because marijuana products were already in production long before then, having served the medical marijuana market for almost 20 years, California imposed a grace period in which production and labeling regulations could catch up. This led to retailers bulking up on less expensive products that were not in total compliance at the end of 2017 to keep their stores well stocked in the first half of the year. Now they will need to clear their shelves of any remnants of that stock. Meanwhile, owners will be clamoring to replace that inventory with new products that meet regulations. 

As our Los Angeles cannabis business attorneys can explain, the new rules entail several aspects of marijuana production. First of all, products must go through a licensed lab to be tested. These labs will test for pesticides and fungus. They will also ascertain levels of THC and CBD in the product. This rule in particular will be a challenge as the state has licensed only 28 labs, with many still not opened.

The tests will be used to determine if the products meet the legal threshold of THC, with only 100 milligrams allowed per package for edibles. For non-edibles, 1,000 milligrams are allowed for adult-use and 2,000 milligrams for medical marijuana patients. This resolves an ongoing issue where customers would purchase products that were either too weak or too strong with little way to tell what they were getting.

Labels have to be more thorough going forward, and must include test results, the date the product was made and regulatory symbols, warnings and ingredients and nutritional information for edibles. In addition to proper labeling, packages must be child resistant before they arrive in the stores. Before July 1, marijuana business owners could place products in child resistant packages at the point of sale. Owners could work around the other regulations with labels warning that new standards were not met. Now they will need to follow the rules to the letter, and the Bureau of Cannabis Control plans on dropping by businesses for check-ins.

This is a time where having an experienced cannabis business owner on your side can be extremely beneficial. Our team has the skill to ease your business into new guidelines while helping you keep an eye on your long-term goals and objectives. Trying to manage compliance issues and business plans on your own can be risky. Our know-how can give you the confidence to make smart decisions today that will build a smarter future for your business tomorrow.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients, defendants, workers and those facing criminal marijuana charges. Call us at 949-375-4734.

Additional Resources:

Stock Up Now, California. A Lot of Cannabis Is About to Disappear From Stores, June 12, 2018, By David Downs, Leafly

More Blog Resources:

Fresno Law Enforcement Doesn’t Kid Around With Marijuana, May 12, 2018, Cannabis Law Group