California Seed-Sale Halloween

California Seed-Sale Halloween

California Seed-Sale by Halloween – California will soon have one of the world’s most tightly-regulated marijuana markets, as the state in the next few weeks launches a long-awaited digital tracking system intended to follow every plant grown and sold through the licensed cannabis industry.

Many licensed marijuana business owners are applauding the so-called “seed-to-sale” tracking system California Seed-Sale Halloweenas a way to cut down on competition from the state’s still-massive black market.

But many also say a lack of information about how the new tracking system will work — and the abrupt shift from what has been a fairly lax attitude about tracking product — is causing chaos in a fledgling industry that’s reeling from hefty new taxes and regulations.

California Seed-Sale Halloween

“This is our livelihood. This is how we feed our children,” said Terra Carver, executive director of the Humboldt County Growers Alliance, which represents nearly 200 businesses in the heart of California’s cannabis country.

“We’ve worked so hard to get to where we are,” Carver added. “To have such a key piece (of the industry) be so uncertain is very concerning.”

Part of the deal

The new rules aren’t surprising. Proposition 64, which legalized recreational marijuana use, included a requirement that marijuana businesses put a tag on every plant and digitally monitor each gram of cannabis as it makes its way from farms to consumers. The stringent requirement was a key selling point to voters when the law was passed two years ago.

One reason for tracking plants is to reduce the flow of cannabis to states where marijuana laws are more stringent. The system also can help keep black market weed — which likely hasn’t been taxed or tested for safety — from ending up on shelves at licensed dispensaries.

The digital tracking system also figures to generate important new data about California’s marijuana market, including identifying which parts of the state have the most growers and which have the most consumers. Such information will make it easier for state regulators to halt shipments if a marijuana product is recalled for contamination or any other health reason — something not currently feasible with food, cigarettes or alcohol.

State officials initially hoped the digital system would be active when legal marijuana sales kicked off on Jan. 1, but so far this year cannabis businesses have complied with product tracking rules by putting data on everything from private software to handwritten invoices.

California Seed-Sale Halloween

“It’s utter madness,” said Hezekiah Allen, executive director of the California Growers Association, the state’s largest trade group for cannabis cultivators.

“We are tracking hundreds of millions of dollars of a consumer product by the paper in a market that’s never been regulated before.”

The digital tracking system has actually been ready to go since Jan. 2, according to Richard Parrott, director of CalCannabis, the Department of Food and Agriculture division that oversees cannabis cultivation. But per state code, regulators can’t make companies start using the tracking system until they’ve been issued full annual licenses. So far, the state has issued only temporary licenses to more than 6,000 marijuana businesses.

The state hopes to approve its first annual licenses “within the next month,” Parrot said Monday. That means California’s tracking system could be online by Halloween.

A big change for the industry

For two decades, attorneys and industry experts discouraged anyone involved in California’s gray medical marijuana market from keeping written records to make it tougher for prosecutors if the business was raided by federal or state authorities.

“Every single piece of paper would be something they could use against you,” said Ryan Jennemann, founder of the Los Angeles-based cultivation company THC Design and a board member on the Southern California Coalition, a cannabis trade group.

Source: Marijuana merchants, growers squirm as California gets into the seed-to-sale tracking system

California Seed-Sale Halloween

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