Are you currently a cannabis business entrepreneur in California? Have you been just as confused as all your competition?
There’s a reason California is one of the hardest states to open up shop in. Below, we’ve laid out the latest details of the growing problem in California’s cannabis industry.
No More Temporary Licenses
For those who are unaware, California is looking to apply the state’s Metrc traceability program. This is huge and will affect every single licensed company within California as full annual business permits will replace the temporary licenses every business in the state runs under. The only problem is no one knows when this will be put into effect. There have been estimates of it taking place within the next two months, but nobody can be sure.
As of this time, there are about 2,800 people have filled out for the temporary licensing applications in early August this year. In early July, about 2,700 business received temporary licenses to being their dispensaries. To further this, most of those dispensaries need multiple licenses (such as licensed grow operations or transport-only distribution licenses).
With all these licenses, the concern (similar to Texas’ CBD laws) California has is there’s no statewide tracking system. Instead, businesses are expected to keep their own records of their inventory. This is why California is trying to apply the Metrc traceability program. As a means of tracking all records of cannabis businesses.
The confusion begins to set in when these companies begin asking questions that pertain to how Metrc will affect these licenses.
- What will happen for businesses who try to finalize business transactions if Metrc is put into play within the next two months? This is important considering most licenses go until November.
- What will happen if an audit is performed and inventory divergence from what’s on record is discovered? Will there be penalties? If you own a cannabis business, this Metrc traceability program can have an affect on your and your income. It’s important to seek out legal business advice in terms of these newly emerging policies.