Expanding Pains for California’s Weed Tracking Program — Cannabis Law Group’s Health-related Marijuana Legal Weblog — August five, 2019

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In January, the state of California kicked off an on the internet rollout of its marijuana inventory tracking method. At a glance, marijuana firms across the Golden State seem to be effectively reporting solution inventory every day, by means of the California Cannabis Track-and-Trace (CCTT) method. But not without the need of some expanding pains.

To start out, the concept of tracking marijuana traveling all through the provide chain sounds basic adequate. In theory, all cannabis items would be offered special identification numbers, noting from which ‘batch’ or ‘lot’ they have been born. Solutions would then be sent to labs for testing. Subsequent, authorized items would be passed from producer to distributor, and ultimately to retailers for sale. At every step, the state really should be in a position to track every piece of marijuana as it moves by means of the chain, creating certain practically nothing is getting redirected out of state, and making sure everyone is paying their expected taxes.

But in practice, a handful of hiccups immediately come to light. 1st up, only firms holding ‘provisional’ or ‘annual’ licenses are expected to subscribe to the track-and-trace method. And till final month, there have been extra than 600 marijuana firms operating on ‘temporary licenses,’ who would not have had to track-and-trace. This indicates, there was no way regulators could comprehensively account for each and every legal solution moving about the state.


Whilst these 600 short-term cannabis organization licenses all expired at the finish of July, and lots of of these cannabis organization owners await approvals on provisional or annual license applications (yet another story in and of itself), Lori Ajax, State Bureau of Cannabis Handle (BCC) chief, not too long ago mentioned it is a priority of the bureau to get all short-term licenses transitioned onto either provisional or annual licenses, as immediately as feasible, so these firms will not have to halt their operations.

It is accurate that when the provisional or annual licenses are authorized, these marijuana organization owners are right away expected to commence tracking-and-tracing. And as the CCTT is very difficult, lots of businesses currently expected to track-and-trace are hiring complete-time staff to traverse the method.

Tagging Solutions Has Established a Challenge
1 prevalent complaint from marijuana retailers holding provisional or annual licenses, is that they need to apply special identification tags to all items. And mainly because till really not too long ago, lots of holders of short-term licenses weren’t held to these very same requirements, items would attain retailers without the need of mentioned tags, leaving retailers getting to sticker and tag items, at their personal further labor charges.

But the challenge does not cease there. Now with 600 odd firms in line waiting for the state to approve their new license applications, and normally a will need to continue earning a living in the meantime, lots of are creating lots of paperwork for businesses adhering to CCTT specifications even though trading with firms not however in the method.

On the use of CCTT all through the marketplace, Josh Drayton, communications director for the California Cannabis Market Association (CCIA) says it is a patchwork at present. “We’re not seeing it function it is way all the way by means of the provide chain, which in the end indicates it is sort of a broken method at the moment,” he mentioned.

Software program Compatibility Also a Hurdle
A different shared grievance is that CCTT is not appropriately set up to function smoothly with a prevalent point-of-sale software program method utilized by retailers. CCTT also does not account for firms like growers or makers awaiting provisional or annual licenses, who may perhaps have missing information. As a outcome, some retailers employing that software program are forced to just ‘create’ data in order to move by means of to the subsequent step inside the CCTT platform.

So Was Track-and-Trace Just a Sweetener?
1 of the promises California’s 2016 Proposition 64 produced, was that the state would normally be in a position to find each and every piece of marijuana sold, all the way ‘from seed to sale.’ Producing a tracking method then, was normally going to be needed to meet this guarantee.

Assisting to avoid cannabis flowing out onto the black industry was yet another purpose. But so far, activity on the illicit industry has shown small indicators of slowing. 1 analyst estimates the underground cannabis industry in California totals $three.7 billion per year, which outdoes the legal industry fourfold.

Some think the track-and-trace method was only supplied up as a way of receiving legalized marijuana more than the line.

The Burden of Compliance
Other people think that requiring compliance with an inventory handle method areas a needless burden on legal cannabis firms committed to operating inside the law. Amid the lots of opinions on the matter, a single factor is particular, a slow transition to the new method has brought with it a complete lot of new red tape. And makers and vendors may perhaps just have to prepare for additional hiccups and delays as the sector presses ahead.

Legal Implications Therefore Far
Fortunately, marijuana firms nonetheless receiving up to speed with CCTT have been afforded some leeway. The BCC appears to realize this is a method, and hasn’t produced an instance of any person as however. But there are no assurances from the authorities that this is in reality the case. Most impacted by this concern are firms either moving to, or waiting on their, provisional and annual licenses following the expiration of their initial short-term licenses, as nicely as any new cannabis organization operators coming into the fold. As a outcome, all sector stakeholders will watch cautiously to see just how helpful the CCTT method can be as it becomes extra broadly embraced in the coming months.

Want Legal Assist Tracking and Tracing For Your Marijuana Small business?
Our California marijuana lawyers  can assist answer any inquiries you may perhaps have.

The Los Angeles CANNABIS LAW Group represents growers dispensaries, ancillary businesses, sufferers and these facing criminal marijuana charges. Get in touch with us at 714-937-2050.

Added Sources:
California’s Cannabis Track and Trace (CCTT) Program
Proposition 64

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