If you are an investor looking to get into the California cannabis industry, there are aspects of the new laws that should catch your attention. There are no restrictions against outside investors. One business can own all, or part, of any other license type, except testing, which must standalone. If multiple licenses are owned by one entity, the businesses must be in separate and distinct facilities. This would seem to forestall a large facility that engages in many activities. However, having a “campus” where many separate buildings can come within the curtilage of a secure location seems a possibility. Some groups are already opening such premises so economy can come to the stream of commerce.
Already, it appears there will not be enough testing facilities with ISO/IEC 17025 certification so there will be difficulty getting fully tested product through the supply chain and into retail businesses. Delivery dispensaries are now to be licensed and no local city or county can prevent deliveries from public roadways. It remains to be seen if a city or county can prevent deliveries into their jurisdictions and I expect that issue will be litigated. Distribution remains a
little understood activity in the new industry. No more turkey bags in a broker’s trunk. A licensed distributor must do all transport, facilitate testing by a lab, store the product until it passes testing, and destroy the product if it fails. They are also responsible for collecting, and accounting for, taxes on product coming from a cultivator.
A great deal of effort was put into creating Cannabis Cooperative Associations so that small farmers can work together to maximize the value of their product. They can collectively purchase equipment and products for cultivation, collectively process and market. This was pushed for by small cultivators from the Emerald Triangle, but many traditional cultivation areas should benefit.
68 LEGALIZATION
LEGALIZATION