As much as 8,000 pounds of cannabis will be obliterated in Sacramento, with even more expected to be destroyed in Los Angeles
This Sunday, new regulations are set to take effect in California that will result in cannabis products being demolished to the value of $350 million – an estimate from the United Cannabis Business Alliance. Under California’s new cannabis rules, anything that is not contained in child-proof packaging or lab-tested for contaminants and potency cannot legally be sold in California.
In addition to the aforementioned rules, THC content will be restricted to 100mg per package. The total 100mg must be split into 10mg servings.
California’s new cannabis rules are long-awaited
Cannabis vendors have been eagerly waiting for California’s new cannabis rules, with a large number of dispensaries being forced to sell non-compliant products for significantly less than the original asking price.
Notably, dispensaries who stocked up on non-compliant items prior to being informed about the new law will feel the full impact of the long-anticipated rule change.
“We’re sort of at the point where the rubber meets the road. It’s a rough transition for a lot of people across the state,” said Los Angeles cannabis business attorney, Ariel Clark.
This change in rules draws attention to the obstacles that The Golden State has been facing since the state’s multi-billion dollar industry launched in January of this year.
Since this time, stores have been actively selling cannabis products that breach the latest requirements.
A spokesman for the California Cannabis Industry Association, Josh Drayton, believes that as much as 8,000 pounds of cannabis will now be obliterated in Sacramento, with even more expected to be destroyed in Los Angeles.
New cannabis products must be tested for contaminants and potency
There is concern regarding potential shortages once the changeover is complete.
“We just don’t have enough labs. A lot of the brands we know may not get through in time to get on shelves,” said the CEO of San Francisco-based cannabis startup Meadow, David Hua.
Hua was referring to product testing, which must be carried out on all new products to replenish store shelves once they have been stripped of the non-compliant products.
According to the spokesman for the State Bureau of Cannabis Control (BCC), Alex Traverso, a total of 31 licensed testing labs are scattered throughout the state.
“We’d obviously love to have more, but I think we’re cautiously optimistic,” writes Traverso.
California’s new cannabis rules won’t negatively impact everyone, however. Certain businesses praise the rules for eliminating the competition from non-compliant product creators. The executive director of the California Growers Association, Hezekiah Allen, thinks that the rule changes will benefit his 1,000+ members, who won’t have to worry about “competing with growers who cut corners and sell dirty product.”
On the other hand, California’s new cannabis rules could cause a major inconvenience for growers residing in areas that have not yet permitted licenses. Los Angeles is a prime example. Despite being the biggest market in California, cannabis companies based in the City of Angels will not legally be allowed to introduce products to the market.
As if that wasn’t enough to worry about, other law-abiding industry players may find themselves competing against businesses that don’t intend to obtain a license.