The End of the California Cannabis Transition Period

At the start of the year, cannabis businesses were allowed to operate within a transition period when the rules and expectations were less stringent as these organizations became established under California’s legal Cannabis market.

As of July 1, however, the regulatory provisions that had been initially eased for the first half of the year will be going into full effect.

Here are five major areas of Cannabis business that will be fully enforced as of July 1, 2018.

Laboratory Testing Requirements

Moving forward, all cannabis products must be tested and have passed all requirements at the time of testing as mandated by state regulations.
Starting on July 1:
  • Retailers must destroy all untested cannabis goods. Additionally, untested product can not be sent to a lab or distributor for testing after the deadline.
  • Distributors must destroy any of their own untested cannabis products that were manufactured or harvested prior to January 1, 2018.
  • Distributors may test or return any untested cannabis products manufactured or harvested prior to January 1, 2018 if it is owned by manufacturer or cultivator.

Packaging and Labeling Requirements

There are three major areas that packaging and labeling requirements will be enforced for both manufacturers and retailers.
Starting on July 1:
  • Consumer Cannabis products need to be properly packaged and labeled prior to being delivered to retailers. Unlabeled and improperly packaged materials can not be sold, even if they were within a retailer’s inventory prior to July 1. However, products for medicinal cannabis sales can be sold as long as they’re labeled for medical use only.
  • Any unlabeled or improperly packaged materials for sale or within inventory can not be newly relabeled or packaged and will need to be destroyed.
  • All cannabis products will need to be contained in child-resistant packaging before being delivered retailers.

Edible’s THC Limits

After several well-reported edible marijuana mishaps over the years, edibles have developed strong restrictions. Starting on July 1 all cannabis edible producers will be required to comply with a limit of 10mg of THC per serving and a maximum of 100mg of THC per package.

Non-Edible’s THC Limits

Moving forward, THC limits for other Cannabis products will be regulated in two major categories. Those products for sale to the adult commercial market will be limited to 1,000/mg of THC per package. Additionally, those items for sale for the medicinal market will be limited to 2,000/mg of THC per package.

Product Appearance

Starting on July 1, all cannabis products will need to comply with the California Department of Public Health requirements for ingredients or appearance. You can see more here at the CDPH website.

If you have additional questions about greater cannabis legalization and how it may affect your business, please feel free to check out our Cannabis Industry page, call me at my office at 626.703.1556 or just email me.

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About Corey Tobin

With close to a decade of industry experience, Corey has worked with a number of small and medium-sized businesses and is knowledgeable about property and casualty, life and health insurance. Corey specializes in working with elevator contractors, manufacturing, distributing, healthcare and construction. Additionally, he is focused on the unique needs and challenges facing cannabis related business, including dispensaries, cultivators, extractors, developers and much more.

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