The California bill would legalize the interstate cannabis trade, but isn’t that against federal law?

This article originally appeared on Cannabis.net and has been republished with permission.

California’s high rate of cannabis production has led to a bill to include cannabis exports. California is one of the states with the highest cannabis production in the country. It meets its residents’ demand for marijuana every month and still has a surplus to contend with. The state could make millions of dollars a year from this oversupply of products.

Almost every state in the United States has lifted its strict cannabis use and sale laws over the past decade. Cannabis laws are also constantly evolving in different regions of the world. Not all changes have been good, but more than enough have brought positive changes to the US cannabis industry. California cannabis operators have something to look forward to as the recent proposed cannabis law will bring them and the state more profits.

Photo by Matthew Hamilton via Unsplash

California: The forerunner of bold cannabis movements

California was one of the first states to pass cannabis reforms in the country. This, coupled with the state’s optimal weather and environmental conditions, has resulted in the state being the largest cannabis producer.

SB 1326 seeks to authorize interstate commercial transactions for cannabis products. This means that the introduced measure, if passed, would affect the import and export of cannabis products between California and other states. Legal cannabis states with low supply can contact the California state government to import cannabis to meet the demand of their residents. It doesn’t necessarily have to be a state of recovery. The bill would allow states with medical programs to import cannabis raw materials and finished products from California.

The main goal of the new bill is to reduce the state’s saturated leisure sector. There is a massive oversupply of cannabis that could be used by other states and it’s about time the state took advantage. Some also believe the bill was likely created to better position the state’s cannabis industry for future business once federal reforms are finally approved.

There are currently at least two national measures in both chambers of the legislature that could change national stances on cannabis. It’s more or less a win-win situation for the California cannabis sector.

afraid of the bill

Although House Bill 1326 brings good news for weed-friendly states across the US, critics say the bill could eliminate the current opt-out clause. Most weed-friendly states have opt-out clauses for municipalities not interested in allowing dispensaries and cannabis stores to open in their communities. The opt-out clause could be overshadowed by the new draft law. The bright spot in this situation is that lawmakers are beginning to believe that things can’t be that bad for cities after all. Instead, these municipalities will have more options than the opt-out clause provides.

RELATED: California government signals tax reform as marijuana industry struggles with state regulations

The LA Weekly reported that the bill would mean that companies and operators registered in other states would not be allowed to participate in the California cannabis market. All companies and individuals interested in conducting commercial cannabis activities in the state must obtain the state licenses, permits, and other necessary documentation before conducting business here. Simply put, small operators in the state will benefit the most since major industry players and several large cannabis companies cannot operate in some communities.

In addition, there are some provisions to amend health and tax regulations in the existing legislation. Very few changes will be made in other areas.

Photo by Sterling Davis via Unsplash

It took a long time

California Cannabis Industry Association executive director Lindsay Robinson said the association has been considering the issue for several months. According to the cannabis operator, the organization has been in discussion with various trade associations and key industry players about the idea of ​​a transstate or interstate cannabis trade. She stressed that the process itself is very delicate and needs to be handled with caution.

RELATED: 73% of all marijuana bought and sold in California is made in the illicit market

Lindsay Robinson also noted the association’s commitment to ensure the stabilization of the California cannabis industry. She said the state’s cannabis industry needs to be well-functioning and thriving before it can begin its multi-state commercial phase.

Senate Bill 1326 would go a long way in regulating the cannabis economy of several states. The agreements that would be signed would augment the receiving country’s supply lines without issuing production licenses. Cannabis exports are a compelling idea, and millions of dollars could be made with the right framework.

This article originally appeared on Cannabis.net and has been republished with permission.