CSAC Bulletin Article

Cannabis Regulations – Changes, Additions, and Considerations

May 11, 2017

As reported last week, the landscape of cannabis law and regulation is changing rapidly. Legislation is moving quickly, budget trailer bills are changing and developing, and draft regulations are evolving. This article serves as a roundup on all things cannabis – most importantly, new draft regulations to consider.

The comment period for draft regulations on cannabis cultivation, licensing, and other related topics is now open. The Bureau and other state agencies have noted that budget trailer bill language designed to align the Medical Cannabis Safety (MCRSA) and Regulation Act with Prop 64 is currently active. If the budget trailer bill passes, state agencies are expected to withdraw the set of recently proposed draft regulations and release new proposed regulations consistent with changes in the law. However, public comments on the draft regulations are still very important.

CSAC plans to submit comments on the proposed regulations. Please let Cara Martinson or Betsy Hammer know if you submit comments.

Comment Period on Draft CalCannabis Cultivation Regulations Extended

CalCannabis recently announced an extension of the public comment period for the Proposed Medical Cannabis Cultivation Regulations. The deadline for submitting written comments on these regulations is now Wednesday, June 14, 2017 at 5pm.

Medical Cannabis Testing Laboratories Draft Regulations Released

The Bureau of Marijuana Control released new draft regulations for proposed testing laboratories for medical cannabis. Workshops will be held in Eureka (June 1), Los Angeles (June 8), San Jose (June 13), and Sacramento (June 20). The written comment period will close on Tuesday, June 20, 2017.

Board of Equalization to Consider Cannabis Regulations

The Board of Equalization will undertake an emergency rulemaking process to clarify relevant provision related to Prop 64. The proposed emergency regulations will focus on clarifying issues with respect to the excise tax imposed on the retail sale of marijuana and the cultivation tax imposed on all harvested marijuana that enters the commercial market. The proposed process will not include issues related to cash payments. The BOE also offers a Tax Guide for Medical Cannabis Businesses.

The regulatory process will begin with the BOE’s Business Taxes Committee. Schedule information is available here. CSAC will keep counties updated on further developments. At this point, no draft language is available.

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