California Cannabis Industry May See Loosened Regulations

The Bureau of Cannabis Control‘s Cannabis Advisory Committee approved recommendations that would relax several regulations for the California cannabis industry, aimed at helping struggling cannabis businesses. The recommendations were included in the state panel’s annual report.

While arguably the largest state market for cannabis in the United States, California legal cannabis businesses struggle with competition from illegal cannabis sellers, among many other obstacles to expanded profitability. Though classified as essential services by the state, the businesses also have been affected by the COVID-19 pandemic and new public health requirements for retail and manufacturing industries.

“The state has faced unprecedented circumstances in 2020: the global COVID-19 pandemic and resulting recession, a record-breaking wildfire season, and the nationwide fight for racial justice and equality,” the seventeen-member panel reported. “With the additional pressures the cannabis industry faces during this challenging time in mind, the Advisory Committee sought to recommend policies that promote public health, set the stage for the proposed consolidation of the licensing authorities, and lead to economic recovery.”

Recommendations made by the panel included lifting the $5,000 limit on the cannabis products can be carried by delivery vans, which would allow retail businesses to offer a greater variety of products. The panel also recommended that cannabis lounges eventually be allowed to serve food and beverages.

The committee has not yet posted it’s final report, but a draft is available here.