CA OAL Issues Readopted Emergency Regs

CA OAL Issues Readopted Emergency Regs

CA OAL Issues Readopted Emergency Regs

Source: California regulatory reversal: New marijuana delivery rules highlight Eaze’s political pull

CA OAL Issues Readopted Emergency Regs
Office of Administrative Law

New cannabis rules in California released Tuesday highlight again how fractious the state’s industry remains. The regulations also put the spotlight on the political influence wielded by a technology company that isn’t governed by the rules it has been lobbying to change.

Several cannabis industry insiders say the updated regulations – issued by the state Bureau of Cannabis Control – favor a business model championed by Eaze, which runs a website and smartphone app through which consumers can place delivery orders for cannabis.

But unlike cannabis delivery companies and retailers, Eaze isn’t required to possess state permits because orders placed with the firm are filled by licensed retailers. That situation has turned the business into a divisive flashpoint for many licensed companies that have had to deal with the red tape and costs of obtaining state permits.

The new rules are also an about-face from May 18 regulations, some industry insiders say, indicating that Eaze has significant political pull with state officials who are overseeing the rulemaking process.

At the center of the storm is the Bureau of Cannabis Control’s rules in Section 5418, which was intended to clarify last year’s emergency regulations prohibiting the so-called “ice cream truck” model of delivery, industry insiders said.

But the updated regulations announced Tuesday appear to allow that model, a move that would permit delivery companies to operate roving trucks that are stocked like a retail store and fill orders as they are placed online.

[Abbreviations – California Dept. of Public Health (“CDPH”), the California Dept. of Food and Agriculture (“CDFA”), the California Department of Tax and Fee Administration (“CDFTA”); and the Bureau of Cannabis Control (“BCC”)]

BCC Title 16  Section: 5000 – 5814, 

Second Section of above

CDPH – MCSB – Manufacturing – Title 17 Adopt Section: 40100 – 40601,

Part 2 – FDA Defective Levels Handbook

Part 3 – USFDA, 21 Code of Federal Regulations, Part 120, subpart B

CDFA – Cal Cannabis – Cultivation Title 3 Adopt Sections: 8000 – 8608

“In previous discussions (with regulators),” Domingo said, “it was said the intention of the regulation was to be prepackaged orders from the point of origin to the point of sale, but now, (Section) 5418 has completely removed all of those requirements.“It actually explicitly says you’re only required to have one designated order, and you can carry up to $10,000 worth of product. So if that’s a $60 order, you can have $9,940 worth of loose product in your car, which is pretty crazy.”

Cannabis Licensing

Author: abizcannabis

Managing Director & CEO of integrated transactional financial advisory, tax, and technology consulting firm - aBIZinaBOX Inc New York, Chicago, and OaklandCPA.CITP.CISM.CGEIT.CGMAExpertise with: Alt. Investments/Private Equity, Real Estate, Professional Services, CA Cannabis, Tech Start-Ups and Distressed Assets/DebtTechnology Certifications including:Advanced & High Complexity Cloud Integrator AICPA PCPS, CAQ,, IMTA, CITP ISACA CGEIT, CISMState CPA Societies in California, Florida, Illinois, New York and TexasExpertise with Regulatory Compliance - US - HIPAA, FINRA, SEC Rule 17(a)(3)/(4), eDiscovery, FINCEN - EU- EBA, ESMA, EIOPA UK - BoE, PRA, FCA