State Laws Governing the Sale and Distribution of Cannabis

Every state has its policies for the accessibility and criminalization of cannabis. There are severe repercussions if you fail to comply with these rules. Therefore, you should know all the regulations properly to avoid committing crimes under federal law.       

Many states have tweaked their laws to provide more flexibility and clarity for cannabis products. States like California, Utah, and Oregon have a substantial cannabis market, and their regulatory bodies are taking steps to provide a clean trade. After Section 280E, states and marijuana companies are changing their strategies to comply with the policies.

Here is a state-wise breakdown of the latest marijuana amendments.

1.   California

California is the largest marijuana market in the world. California's Department of Cannabis Control made several amendments to the laws governing cannabis laws. Some of the improvements from the past provisions are-

• The amount of cannabis permitted for delivery vehicles is doubled from $5,000 to $10,000.

• All licensed retailers can now carry out curbside delivery.

• The 15% excise tax previously liable to distributors by the state's Department of Tax and Fee Administration has now shifted to the retailers.

• There is no need for allocated or pre-purchased vehicle inventory. It is a step to ensure faster deliveries and more sales.

These regulations aim to offer more access to legal cannabis and meet the ever-increasing needs of the market.

2.   Oregon

Oregon Liquor and Cannabis Commission sought to improve the testing standards and packaging.

• Cannabis producers are required to label their products honestly. If the labels contain "untruthful or misleading content," the manufacturers will be fined up to $100,000. There is a penalty of $500,00 if the products pose a safety hazard to the public. The testing labs have to retain the sample for 30 days. Any discrepancy in the test results and later investigation can lead to product recalls.

• Now, retailers are allowed to sell products below their wholesale cost. The sales are expected to drive up after this provision.

3.   Utah

Here, the rules got a little more stringent. Marijuana manufacturers need to focus on their product packaging. After Jan 1, the brands must seek approval from the state's Department of Agriculture and Food for their brand name and logo design. The department has laid down several rules, like the logo cannot account for more than 20% of the packaging.

The laws and regulations of the legal marijuana market are changing faster than companies can adapt. Hence the marijuana business needs to keep a dynamic business model that can accommodate the changing policies. These policies affect how businesses run operations and sales. It is challenging to run a company where you are one wrong transaction away from a federal crime. In this case, it is best to consult a financing firm that knows these laws so that you don't have to worry about them. A financial expert will turn your business more profitable by helping you set objectives and reach your target numbers within the specified time frame.