3 min read
5 Ways the Permanent California Cannabis Regulations will Affect Dispensaries and Delivery
Marijuana businesses across state are anticipating the approval of the permanent California cannabis regulations as they enter the final stages. The Bureau of Cannabis Control submitted the proposed regulations to the California Office of Administrative Law who will review them for any potential legal loopholes or pitfalls.
At the end of 2018, the BCC finally released the current version of the permanent California cannabis regulations for public viewing and businesses are making preparation for implementation. Once the regulations are approved there will be some significant changes that marijuana dispensaries will need to adhere to just to stay compliant.
Owner and Investor Disclosures
After the permanent California cannabis regulations are implemented the licensee must disclose information on all owners and investors of the marijuana business. Anyone receiving 20% or more of the profits from the licensed cannabis business will need to provide their information in an effort to provide transparency.
This new regulation will also apply to entities that would previously conceal the personal identities of investors. Now every single owner and investor associated with the entity will have to make the state aware of their involvement. While this may make thing complicated for anonymous backers, it will level the playing field holding all investors and owners accountable.
Cannabis Advertising Rules
California marijuana dispensaries have been dealing with advertising restrictions for a long time, and have learned to be creative when marketing to consumers. The new permanent regulations will further define what is and isn’t allowed in advertisements and marketing campaigns. The BCC is primarily concerned with cannabis consumers targetting or appealing to minors.
Cannabis companies will need to be at least 71% confident that there marketing campaigns and ads are catered to consumers who are reasonably expected to be over the age of 21. There are also new regulations that prohibit the use of toys, movie characters or cartoons that would be seen appealing to minors. Additionally, cannabis retailers will not be allowed to promote ‘free giveaways’ to attract clientele. This mandate includes both cannabis products and non-cannabis products.
Marijuana Delivery Services
There is one major regulation change that will be extremely beneficial for California marijuana delivery services. Drivers can now make deliveries to customers in local jurisdictions that have previously banned all cannabis sales. Currently under the emergency regulations, marijuana delivery drivers are only allowed to pass through these jurisdictions to drop off orders, but if the permanent California cannabis regulations hold up as is, this will all change.
There is already some legal pushback from the League of California Cities who are accusing the BCC of supercedeing their authority. It’s possible that this provision could ultimately be decided in court but if all goes well, cannabis delivery services can expand their range into these jurisdictions with local bans.
Metrc Track + Trace Reporting
One aspect of the California cannabis industry that will certainly change is the track and trace reporting. After a cannabis business obtains an annual business license they will be required to report all inventory and sales using the Metrc track-and-trace reporting system. More California businesses are acquiring their annual business license and are familiarizing themselves with the system.
While some dispensaries are attempting to manually submit these compliance reports, it’s extremely tedious and cumbersome considering what’s at stake. Small discrepancies could quickly result in a compliance violation, but fortunately advanced dispensary POS software can completely automate this process. Investing in a point-of-sale that offer full Metrc integration will save time and avoid inevitable human errors.
Compliant POS Software
Staying compliant with the permanent California cannabis regulations will be paramount to avoiding inspections, investigations, and possible violations. There are many facets of compliance that pertain specifically to dispensaries. Utilizing software that can manage age verification, purchase limits, delivery, taxes, and reporting is essential to running a successful retailer.
We make it easy to safeguard your marijuana dispensary with compliant POS software that reports sales in real-time. IndicaOnline provides an all-in-one solution that will simplify transactions and administrative tasks. Sign up for a free two week trial and schedule a demo to learn more our advanced dispensary and delivery features.