Having two systems for regulating medical and recreational marijuana in California has complicated licensing. To recap, the Medical Cannabis Regulation and Safety Act MCRSA was put in place to manage medicine. While the Control, Regulate, and Tax Adult Use of Marijuana Act AUMA that followed later focuses on recreational use.
This had been holding up the rules for licensing the recreational supply chain. Those problems thankfully belong to the past, now the California Senate has adopted the new hybrid Medicinal and Adult-Use Cannabis Regulation and Safety Act MAUCRSA. This repeals the MCRSA, while incorporating some of its provisions in this updated version of the AUMA.
We have more than a new acronym however to learn, since the changes are significant for California marijuana providers. In summary form:
- The Bureau of Cannabis Control is now the senior regulating authority
- Cannabis tax will be by average market price, as opposed to gross receipts.
- License applicants may submit proof of historic compliance with local laws. The obligation now falls on their county or city to indicate otherwise within 60 business days of license approval.
- The definition of owner is broadened to 20% or more ownership, ceo, board member, or anyone directing, managing, or controlling an applicant.
- The AUMA residency requirements have fallen away. Even overseas entities can operate freely. However individual cities may determine otherwise.
- The various AUMA license types remain, except these divide into adult use (A), and medicinal use (M) subclasses. In addition, there are several new niche licenses available.
- However, the old MCRSA transporter and producing dispensary licenses have fallen away.
- Multiple licenses are available to both A and M applicants, subject to safeguards for over-saturation, and protecting the interests of small licensees.
- The new MAUCRSA defines a solvent as producing a flammable gas or vapor that ignites or explodes ‘when present in the air in sufficient quantities.’
- Cultivators using water ‘from any diversion’ have until July 1 this year to lodge paperwork with the Water Sources Control Board.
- Retailers may now deliver marijuana from a physical shop that is otherwise closed to public access
- Quality assurance procedures are tighter. For example, distributors must have procedures for validating packaging and labeling.
- The MAUCRSA provides for future Department of Food and Agriculture standards, governing county origin appellations.
- There is also provision for a universal logo for edible marijuana, and for regulating advertising on the internet.
While the MAUCRSA puts regulatory agencies and some others back to square one, this is a defining moment for marijuana in California. Finally, the product begins to leave the political arena, and enter the mainstream business world, where it belongs.