California Cannabis Regulators Release New Industry Draft Rules

Regulators with the California Department of Cannabis Control (DCC) released new draft rules for the industry on Wednesday that would loosen some restrictions and consolidate the responsibilities of cannabis operators.

The draft rules, first reported by Marijuana Business Daily, will next undergo a five-day public comment period before they are expected to formally take effect later this month.

Some of the proposed changes include letting certain operators (growers, manufacturers, and distributors) share product samples with other licensed cannabis companies—other operators including retailers, testing labs, and event hosts will still be banned from offering product samples. Additionally, the draft rules would narrow the definition of cannabis business owners in the state and allow for the sale of branded merchandise by non-vertically integrated cannabis companies.

DCC spokesperson Christina Dempsey told MJBizDaily that the product sample changes would better enable small businesses to compete in the industry by showcasing their products to other operators. Meanwhile, expanding merchandise sales is expected to level the playing field for non-vertically integrated companies.

She also suggested the updates were only the beginning of the agency’s upcoming regulatory adjustments:

“The intention of the DCC is to have more efforts at regulation, through the regular rulemaking process, to continue to streamline this. This is not the end.” — Dempsey, via MJBizDaily

The DCC was formed in July when California consolidated its three agencies with cannabis regulatory responsibilities into a single body under the state’s Department of Business, Consumer Services, and Housing.