It goes with out saying, however 2020 was a fairly wild yr for the California hashish and hemp industries. We predict 2021 will probably be a fairly lively yr and need to checklist 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 anticipate that there will probably be important efforts in 2021 to make this occur, which will probably 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 lately, and it’s nonetheless beneath review. The plan will finally be permitted (although USDA could require some adjustments) in early 2021, necessitating adjustments 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 attributable to COVID-19, however we nonetheless noticed some enforcement efforts (i.e., the BCC’s lawsuit for civil penalties). We anticipate that enforcement efforts and actions will enhance considerably in 2021.
Prop. 65 Litigation: With the expansion of Prop. 65 to cowl extra hashish and hemp merchandise, we anticipate to see an increasing number of lawsuits and demand letters going out to companies that allegedly fail to adjust to these necessities.
Commerce Samples: One of many greatest 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 may enable for commerce sampling, however these efforts failed. We anticipate there to be extra efforts in 2021 to control commerce samples.
CBD Laws: For the previous couple of years, the state has tried (and failed) to move laws that may “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 attributable to COVID-19–the invoice wasn’t actually debated till the top of the legislative session. We anticipate CBD laws to be launched in early 2021. Hopefully this time, one thing works out.
Native Management Debates: The previous couple of years have seen lots of debates between the state companies and native jurisdictions relative to native management. Principally, state regulation provides cities and counties lots 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 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 wherein hashish actions are forbidden or restricted, we anticipate 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 will be the subsequent state to undertake some sort 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 anticipate that to proceed in 2021. Please keep tuned to the Canna Legislation Weblog to see how issues prove within the new yr.