New Proposal in California Allowing Sellers And Growers To Work Side By Side
As we approach the expected due date in January for the first marijuana licenses to be issued in California, lawmakers last Thursday proposed a new change to the current law. As reported by the LA Times, the proposal would allow growers and sellers to group multiple licenses together. Here are the implications of such a change would become reality.
What This Means For The Industry
This would essentially allow a seller who is licensed to sell marijuana for medical use to also sell marijuana for recreational use if they have the appropriate licenses. Moreover, a marijuana store will also have the dual ability to not only sell for these two different purposes but also may run a manufacturing operation at the same location. And it doesn’t stop there. These stores would be able to further group multiple cultivation licenses at one facility, allowing them to grow medical marijuana next to recreational.
Licensing isn’t the only thing that is being looked at for possible changes. Included in the proposal is the repeal of a rule that licensed medical marijuana manufacturers to provide products only to medical marijuana sellers. Additionally, it would repeal the rule that a recreational cannabis retailer may only allow customers that are 21-years or older, lowering the age limit to 18-years or older. The assumed purpose of this change is so that these younger customers can gain access to a storefront that is also selling medical marijuana.
According to the LA Times report, California lawmakers stated in the bill by the Assembly Budget Committee that this would help remedy “inconsistencies and confusion created by past cannabis measure, [and] will provide flexibility for license holders and convenience for customers.”
Hezekiah Allen, the Executive Director of the California Growers Association, has stated that although his group is in favor of allowing sellers the licensing capability to provide recreational and medical marijuana products, they are worried that allowing these businesses to have multiple licenses will lead to a loophole to get around limits on cultivation licensing.
The idea of co-locating recreational and medical marijuana sales dates back to June, which was proposed by legislators and Governor Brown according to a different report by the LA Times. The main reasons for doing so included cutting down the operational costs of store owners as well as the enforcement costs for cities and the state. For now, it appears these changes are still in the proposal stage, and it is not clear when legislators will attempt to vote them into law.