It goes with out saying, however 2020 was a fairly wild yr for the California hashish and hemp industries. We predict 2021 can be a fairly energetic yr and need to listing out some issues to be careful for as we kick off the brand new yr.
Company Consolidation: It was announced in January 2020 that California’s three hashish companies’ regulatory authority could be consolidated right into a single, new company, the Division of Hashish Management. We count on that there can be vital efforts in 2021 to make this occur, which can be an enormous shake-up for California’s regulated hashish business.
Hemp Manufacturing Plan Adoption: California submitted a hemp manufacturing plan to the U.S. Division for Agriculture just lately, and it’s nonetheless below review. The plan will finally be permitted (although USDA could require some modifications) in early 2021, necessitating modifications for the regulation of California’s hemp business.
Enforcement: We predicted on the finish of 2019 that 2020 could be the yr the place California’s hashish companies started enforcement actions and efforts in earnest. Largely, that was delayed resulting from COVID-19, however we nonetheless noticed some enforcement efforts (i.e., the BCC’s lawsuit for civil penalties). We count on that enforcement efforts and actions will improve considerably in 2021.
Prop. 65 Litigation: With the expansion of Prop. 65 to cowl further hashish and hemp merchandise, we count on to see increasingly more lawsuits and demand letters going out to companies that allegedly fail to adjust to these necessities.
Commerce Samples: One of many largest holes in California regulation relative to hashish is the failure to offer an environment friendly mechanism to take care of commerce samples. Efforts had been undertaken in 2019 to move a regulation that might enable for commerce sampling, however these efforts failed. We count on there to be further efforts in 2021 to control commerce samples.
CBD Laws: For the previous few years, the state has tried (and failed) to move laws that might “legalize” CBD. Most recently, the state tried within the eleventh hour to move a CBD invoice, AB-2028, however failed. A part of this was once more resulting from COVID-19–the invoice wasn’t actually debated till the tip of the legislative session. We count on CBD laws to be launched in early 2021. Hopefully this time, one thing works out.
Native Management Debates: The previous few years have seen a variety of debates between the state companies and native jurisdictions relative to native management. Mainly, state regulation provides cities and counties a variety of latitude to resolve whether or not to permit hashish operations inside their borders, which has led to many localities opting to not enable them. This just lately culminated within the BCC backing down in a lawsuit by cities difficult a rule that allowed supply operators to ship wherever within the state (even in cities that didn’t enable deliveries), successfully offering a win for native management. On condition that there are nonetheless so many cities during which hashish actions are forbidden or restricted, we count on to see the native management debate proceed, and probably even introduction of statewide laws geared at paring again native management.
Psychedelics Decriminalization: Okay, okay, this has nothing to do with hashish or hemp. However, California stands out as the subsequent state to undertake some type of statewide psychedelics decriminalization measure, as state senator Scott Wiener beforehand announced he would introduce laws within the subsequent legislative session.
Whereas 2020 was a busy yr, we count on that to proceed in 2021. Please keep tuned to the Canna Regulation Weblog to see how issues end up within the new yr.