With so much at stake for the cannabis industry, ensuring compliance with all regulations is an absolute necessity. Every producer who expects to build a flourishing distribution business in California must work within these regulations. However, no company's best effort at compliance is a guarantee against regulatory retaliation.
What Do Cannabis Regulations Cover?
Cannabis regulations for producers and sellers in California cover a significant portion of the business, including the following:
- Point-of-sale premises
These comprehensive regulations penalize cannabis distributors in ways that other businesses simply do not have to consider.
How Strict Are Cannabis Industry Regulations?
The California Bureau of Cannabis Control (BCC) provides regulatory oversight to the Cannabis industry. Without this oversight, no one in the cannabis industry would have the legal authority to conduct business. However, current regulations are extremely restrictive, and a court decision from January has made them even more limiting. We will take a closer look at the case, Farmer v. Bureau of Cannabis Control (Bureau) & Lori Ajax, and its effects below.
Why Are Regulations Becoming More Restrictive?
The BCC maintains that their regulations are for the safety of Californians when it comes to the expectations of product safety and public protection. Indeed, public protection was a central issue in the recent rule change further restricting advertisement placements.
Prior to Farmer v. Bureau of Cannabis Control, advertisements had been allowed on interstate highways, as long as they were not within fifteen feet of the border to another state. In a filing by a concerned party, this regulation was challenged, and now ads cannot be on any interstate highway or state highway crossing the border.
This is a prime example of current regulations becoming even more restrictive as time goes on. That is why it is imperative to not only remain knowledgeable regarding this ever evolving area of the law, but also have skilled attorneys on your team.
The Best Offense Is a Strong Defense
Cannabis is still not legal at the federal level. As cannabis regulations make it harder to reach customers and run an effective operation, business owners are doing their best to comply while keeping an eye on the bottom line. However, if a regulation becomes too restrictive "doing your best" may not be good enough.
When a cannabis company faces disciplinary action that may not seem warranted, there is little choice but to take a legal stand. While the experience of fighting for your clear rights as a business owner can be challenging, it is often the only way to stay in the game. That fight can become much easier if you work with skilled attorneys who know the cannabis industry and are well-versed in the latest legal and regulatory issues.
Originally published 30 July 2021.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.