California Implements New Cannabis Regulations

California announced new rules regarding the growing, transportation, and sale of marijuana before licensing issuing begins in January. This includes requirements that every plant be traced from farm to sale while security is also required at farms, pot shops, and trucks and a strong rule of no cannabis marketing towards minors. The license application fee for sellers will be $1,000 annually with an additional fee of $4,000 to $72,000 based on how much is sold. Additional fees for testing firms will range between $20,000 to $90,000 with an another charge for distribution licenses starting from $1,200 to $125,000 depending on the amount of product transported.

The Bureau of Cannabis Control is to issue temporary 120 day licenses to retailers and growers who have permission from their city or county as a preparation for the new regulations. After annual licenses are issued, those are then required to pass background checks. Retailers for medical use must gain an M-license while sellers for recreational uses must receive an A-license. Regulations also require child resistant packaging and must prohibit marketing to minors while also requiring limits on THC content for the cannabis. Growers will be charged a one-time fee ranging from $135 to $8,655 in order to review an annual cultivation license application. Small pots will start off at a price of $1,205 while big farms have a starting price of $77,905. Manufacturers of edibles will be charged a $1,000 application processing fee as well as a license fee depending on the size of operation which will range from $2,000 to $75,000.

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