5 Ways the Permanent California Cannabis Regulations will Affect Dispensaries and Delivery

For years, marijuana businesses across the state anticipated the approval of the permanent California cannabis regulations. Indeed, the agency now known as the Department of Cannabis Control submitted the proposed rules to the California Office of Administrative Law, which reviewed them for any potential legal loopholes or pitfalls.

After the regulations were released for public viewing and ultimately approved, several significant changes took effect. As a result, marijuana dispensaries have had to adhere to a more detailed compliance framework. The sections below outline the key areas that continue to shape day-to-day operations.

Owner and Investor Disclosures

Under the permanent California cannabis regulations, a licensee must disclose information on all owners and investors of the marijuana business. Specifically, anyone receiving 20% or more of the profits from the licensed cannabis business must provide their information in the interest of transparency.

Moreover, this rule also applies to entities that would previously conceal the personal identities of investors. Now, every owner and investor associated with the entity has to make the state aware of their involvement. While this may complicate things for anonymous backers, it levels the playing field by holding all investors and owners accountable.

Cannabis Advertising Rules

California marijuana dispensaries have dealt with advertising restrictions for a long time, and they have learned to be creative when marketing to consumers. However, the permanent regulations further define what is and isn’t allowed in advertisements and marketing campaigns. Above all, regulators remain primarily concerned with preventing cannabis marketing from targeting or appealing to minors.

For instance, cannabis companies must be reasonably confident that their marketing campaigns and ads reach consumers who are expected to be over the age of 21. In addition, the regulations prohibit the use of toys, movie characters, or cartoons that would be seen as appealing to minors. Cannabis retailers are also not allowed to promote free giveaways to attract clientele, and this mandate includes both cannabis and non-cannabis products.

Marijuana Delivery Services

One major regulation change proved extremely beneficial for California marijuana delivery services. Drivers can make deliveries to customers in local jurisdictions that had previously banned all cannabis sales. By contrast, under the earlier emergency rules, marijuana delivery drivers were only allowed to pass through these jurisdictions to drop off orders.

There was some legal pushback from the League of California Cities, which accused regulators of superseding their authority. Nevertheless, statewide delivery access remained in place, and cannabis delivery services have been able to expand their range into jurisdictions with local bans.

Metrc Track & Trace Reporting

One aspect of the California cannabis industry that continues to define compliance is track-and-trace reporting. After a cannabis business obtains an annual business license, it must report all inventory and sales using the Metrc track-and-trace reporting system. Consequently, businesses must familiarize themselves with the system to stay compliant.

While some dispensaries attempt to submit these compliance reports manually, the process is extremely tedious and cumbersome considering what is at stake. Small discrepancies could quickly result in a compliance violation. Fortunately, advanced dispensary POS software can fully automate this process. Therefore, investing in a point-of-sale system that offers full Metrc integration saves time and avoids inevitable human errors.

Compliant POS Software

Staying compliant with the permanent California cannabis regulations is paramount to avoiding inspections, investigations, and possible violations. Indeed, there are many facets of compliance that pertain specifically to dispensaries. As a result, using 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 simplifies transactions and administrative tasks. Sign up for a free demo and schedule a walkthrough to see how it works.