California Cannabis Transition Period Comes to an End

California cannabis businesses have until July 1st to bring all of their products up to final state compliance. Come July 1st, it’d be the formal end of the six-month transition period for California’s newly regulated marijuana market.

In compliance with Marijuana Business Daily, as of July 1st, businesses will not be able to sell product that hasn’t passed testing lab standards mandated by regulators. They’ll need to ensure that all products are packaged and labeled properly. Lastly, edibles will need to comply with potency limits—100 milligrams per edibles package, 1,000 milligrams per recreational cannabis topical package, and 2,000 milligrams per medical cannabis topical package.

As a result, retailers could face supply shortages if they haven’t line up dependable supply chains with distributors that will guarantee product that will pass lab tests. They’d also face shortages if they haven’t’ stocked up on lab-tested products in advance of July 1st.

However, for some businesses, this transition period will not be an issue for them as they’ve been preparing for the change for months, if not years. Big businesses such as, Canndescent has been having their products test by labs, prepped, and complied with all regulations to meet July standards.  

A huge issue for many retailers may be finding product that’s fully compliant because there are only 28 licenses labs in California. There will be a shortage of fully compliant products because the handful of labs won’t be able to handle all of the testing workload. Wait times at testing labs will drastically increase, possible from one week to three.

For companies that have everything up and ready by July 1st, July and August will provide them with major opportunities to make sales with customers as their unprepared competitors struggle to stay in the market.

Leave a Comment