July Could Be a Rough Month For Cannabis Businesses
At the beginning 2018, California began the 6 month transition period for the recreational marijuana market. The end of that period is only a few weeks away and can cause complications for some marijuana businesses.
According to the Transition Period Requirements published by the Bureau of Cannabis Control, beginning July 1, 2018, all cannabis goods must meet all statutory and regulatory requirements. In other words, cannabis goods that are not tested and verified as compliant is not be allowed to be sold.
This can be a tricky time for dispensaries. In an effort to avoid the cultivation tax, many shops stocked up on product before the New Year. Starting July those marijuana products will no longer be permitted to be sold legally. As such licensed companies in California are obligated to:
- Sell product that has been tested and approved by a licensed lab.
- Follow the proper packaging and labeling guidelines.
- And comply with potency limits for edibles.
You can learn more about the approved practices with this transition period fact sheet from the Bureau of Cannabis Control.
Within the next few weeks cultivators and product brands are suggested to contact licensed testing laboratories to pass all the requirements in order to distribute their products to dispensaries. It’s fair to assume that many of these labs have a long line of operators waiting to get their product tested and approved.
Who knows what this could spell for the consumer market. There is a possibility that many shops will be in short supply. Some might even continue to sell their un-tested product in an effort to get a return. One thing is for sure: the cannabis industry in California is taking a big second step into uncharted territory.
The demand for marijuana is high in California and the goal is to supply the demand in an efficient and monitored manner.