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California Cannabis Regulations: From Policy to Practice | Policy Matters | 02.08.24

Illuminating California’s Cannabis Regulations: Insights from Industry Leaders

Welcome to the fourth edition of our esteemed Policy Matters series, where we embark on a journey through the intricate landscape of California cannabis regulations. This series, made possible by the collaborative efforts of the National Cannabis Industry Association (NCIA) and its dedicated Policy Co-Chairs, Khurshid Khoja of Greenbridge Corporate Counsel and Michael Cooper of MadisonJay Solutions, serves as a beacon of insight and discourse in the ever-evolving landscape of cannabis regulation.

Building upon the foundational discussions initiated by our previous editions, this installment shines a spotlight on California’s pioneering strides in cannabis policy. In this blog post, we’ll delve deep into the dialogues and revelations shared during the recent webinar broadcast hosted by the NCIA, exploring the multifaceted dynamics of policy-making and enforcement in one of the nation’s most influential cannabis markets with Nicole Elliott, Director of the California Department of Cannabis Control.

In September, we had the privilege of featuring Will Tilburg from the Maryland Cannabis Administration, followed by John Hudak, Director of the Maine Office of Cannabis Policy, in October, and Brian Hanna from the Michigan Cannabis Regulatory Agency in December. Each edition has been a testament to the diverse array of regulatory approaches across states, enriching our collective understanding of the industry’s intricate tapestry.

Brian Gilbert, Deputy Director of Events and Education at NCIA, set the stage for the discussion, emphasizing the importance of dialogue and collaboration in navigating the complexities of California cannabis regulations. With California serving as a focal point, the webinar delved into the multifaceted aspects of cannabis policy and enforcement.

Understanding Cannabis Policy in California & Journey to the Role

Kicking off the conversation by recognizing the pivotal role of  Nicole as one of the longest serving and most experienced cannabis regulators in the country, Khurshid & Michael expressed gratitude for her contributions to the industry. Nicole then shared her journey from local government to cannabis regulation, highlighting her commitment to social justice and equity. Her firsthand experiences with the criminal justice system underscored the importance of inclusive policies and community engagement in shaping regulatory frameworks.

An emphasis was placed on the significance of California’s regulatory evolution from a pioneering medical marketplace and its impact on industry inclusivity and diversity. From supporting legacy operators to promoting market stability, California’s regulatory efforts have paved the way for innovative initiatives like the Appalachians of Origin program, reflecting a commitment to equitable industry growth.

Enforcement Strategies and Real California Cannabis Campaign

Throughout the conversation, Nicole emphasized the importance of aggressive enforcement strategies to combat the illicit market effectively. California’s Unified Cannabis Enforcement Task Force spearheads enforcement efforts, targeting illegal activities such as labor trafficking and environmental contamination. The introduction of the Real California Cannabis campaign aims to shift consumer purchases to legal markets, fostering accountability and consumer safety.

Commitment to Social Equity and Compliance

At a pivotal moment, Nicole Elliott acknowledged historical inequities in the cannabis industry, advocating for initiatives beyond licensing solutions. Fee waivers and promising practices are key components of California’s social equity programs, promoting inclusivity and supporting operators from marginalized communities.

With consumer safety at the forefront, the Department of Cannabis Control prioritizes compliance and transparency in enforcement actions. Operators must adhere to regulations to ensure product safety, with penalties imposed for non-compliance. Transparent enforcement actions empower operators to uphold regulatory standards and foster consumer trust.

Challenges and Opportunities, Partnerships and Collaboration

The influx of hemp-derived cannabinoid products presents regulatory challenges at the federal and state levels. Collaborative efforts between regulators and industry stakeholders are essential to address public health concerns and ensure regulatory compliance. Federal rescheduling efforts and cultivator regulations further underscore the need for adaptive regulatory frameworks that prioritize consumer safety and industry viability.

The webinar highlighted the importance of partnerships and collaboration in addressing regulatory challenges and fostering a safe and thriving cannabis market. Organizations like the Cannabis Regulators Association (CANNRA) play a pivotal role in facilitating dialogue and sharing best practices among regulators and industry stakeholders.

Curtains Drawn: Reflecting on Insights, Looking Forward to Action

As we draw the curtains on yet another insightful edition of our Policy Matters series, we extend our heartfelt gratitude to our readers, esteemed speakers, and the unwavering guidance of NCIA’s Policy Co-Chairs, Khurshid Khoja and Michael Cooper. Their steadfast commitment to fostering dialogue and collaboration has been instrumental in shaping the discourse surrounding cannabis regulation and policy.

To delve deeper into these discussions and gain comprehensive insights on California cannabis regulations, we encourage you to view the complete recording of the webinar on our YouTube channel. There, you’ll find a wealth of information and perspectives from our esteemed speakers, shedding light on the complexities and opportunities within the California cannabis regulatory landscape.

From the corridors of Maryland to the rugged landscapes of Maine, and the vibrant markets of Michigan and California, each edition has illuminated the diverse spectrum of regulatory frameworks and industry dynamics shaping the cannabis landscape. As we eagerly anticipate future editions, let us continue our pursuit of knowledge, empathy, and innovation, forging a path towards a more equitable and prosperous cannabis industry for all stakeholders involved.

California Stakeholder Summit: Bridging Policy and Practice

We hope you’ve made plans to join us for our California Stakeholder Summit, taking place later this month on Thursday, February 22nd in Sacramento, CA. This event promises to be a pivotal moment for stakeholders across the California cannabis industry as we convene to explore topics including proposed state legislation affecting hemp-derived cannabinoid products and the impact of federal rescheduling on state-legal markets.

Nicole Elliott will be speaking on a panel alongside Congresswoman Barbara Lee (D-Oakland) and moderated by NCIA Director of Government Relations Michelle Rutter Friberg. Together, they will delve into the complexities of federal rescheduling and its implications for California’s cannabis regulations and dynamic marketplace.

Join us as we bridge the gap between policy and practice, forging meaningful connections and driving forward progress in one of the nation’s most influential cannabis markets. Don’t miss this opportunity to be part of the conversation shaping the future of cannabis regulation in California and beyond. Register now to secure your place at the California Stakeholder Summit 2024.

Member Blog: California’s Gold Standard – Navigating Cannabis Testing Regulations

By Harrison Bard, Co-Founder and CEO, Custom Cones USA

Understanding California’s Regulatory Landscape & Comprehensive Testing Requirements

While every state has its own testing requirements for the cannabis industry, few markets require more than California, which has been on the leading edge of cannabis testing and regulation since voters approved the state’s recreational market. 

In the Golden State, all cannabis products must be tested by a licensed laboratory in their final form, or how the product will be sold to customers at retail, not just the flower. That means that not only does your flower have to be clean, but so does all of your other ingredients or components, since anything can trigger a failure, including the paper in your pre-rolls. 

Testing Parameters: Ensuring Safety

Both flower and pre-rolls, for example, must be tested for:  

  • Moisture Content and water activity; 
  • Residual solvents and processing chemicals; 
  • Residual pesticides; 
  • Microbial impurities; 
  • Mycotoxins; 
  • Foreign materials; 
  • The “big four” heavy metals (arsenic, cadmium, lead and mercury); 
  • Cannabinoids; and
  • Terpenes (if requested). 

Almost all of these tests get at a safety issue.  

Moisture content and water activity, for example, relate to mold growth. Water activity is a measure of the percentage of water in your cannabis product. In California, a cannabis sample cannot have a water activity of more than 0.65 Aw (or 0.85 Aw for solid edible products). This is because anything above 0.70 Aw creates the conditions for mold to grow, which can be dangerous if consumed. 

Addressing Safety Concerns: Mycotoxins and Pesticides

Mycotoxins are also a safety issue. Mycotoxins are a toxic compound produced by molds, such as Aspergillus, and can damage the liver and even suppress the immune system. The two classes of mycotoxins that California requires testing for, Aflatoxins and Ochratoxins, have properties that can alter our DNA and even spur the formation of cancer cells.  Mycotoxin testing ensures that products are safe for human consumption and inhalation.  In California, samples may not exceed 20 micrograms of either aflatoxins and ochratoxins. 

Like many states California also requires testing for residual pesticides, including 21 “Category I” chemicals that are not allowed in any amount and 45 “Category II” chemicals that include “action levels” that the sample may not exceed. These chemicals can be very harmful to humans, causing damage to organs and other long-term health issues. 

The state provides a list of acceptable pesticides through its Department of Pesticide Regulation website. 

The state also requires testing for the heavy metals mercury, cadmium, lead and arsenic. All four of those metals are toxic to humans, even at small doses, and can damage all the body’s vital systems, including pulmonary, reproductive and even the central nervous system. For inhalable products, the state sets the pass/fail actionable level at 0.1 micrograms for mercury, 0.2 micrograms for arsenic and cadmium and 0.5 micrograms for lead.  

These tests for heavy metals are especially important because cannabis plants are a well-known bio-accumulator that absorbs and collects heavy metals from the soil in which it grows. 

Regulatory Updates and Standardization

In 2024, California also created standardized operating procedures and test methods for testing cannabis flower and pre-rolls and requires all of its licensed laboratories to use the new SOPs to ensure testing is consistent across the state. 

Key Considerations for Manufacturers: Paper Suppliers

But one of the keys to California’s regulations is the need to test all products in their final form, which means that not only does your flower have to pass all tests, but every other part of your product as well. For pre-rolls, this includes your rolling papers and cones. And there have been instances of the papers causing batches of products to fail testing.  

There are also examples of rolling papers that, when tested on their own, have actionable levels of heavy metals or pesticides, for example. 

Ensuring Compliance: Pre-Roll Manufacturers Beware

SC Labs, one of California’s licensed testing labs, found that 11% of rolling papers tested during a recent study would fail testing. The lab purchased 118 products from Amazon and several smoke shops in the Santa Cruz area. Its scientists tested 101 for heavy metals and 112 for pesticide contamination. At least one heavy metal was detected in 90% of the rolling paper products with 8% containing at least one heavy metal in concentrations above the allowable limits. Pesticides were detected in 16% of the samples with 5% coming in over the allowable action limits. 

Because of this, pre-roll manufacturers need to be especially careful in their choice of paper supplier to ensure that the cones you pack your pre-rolls in don’t cause an entire batch of product to need to be destroyed, or worse. 

Expert Insights and Recommendations

“Take due diligence to make sure your product is viable. Any one issue can be detrimental to your brand reputation,” says André Bayard, Compliance Manager at Custom Cones USA.  

Bayard says it’s important to find a pre-roll supplier that focuses on testing and compliance and can provide a Certificate of Analysis to back up its products so your finished pre-rolls are as clean as the flower you put in them. 

“In highly regulated markets, work with a company that focuses on those requirements and are trying to set the industry standard with their products,” Bayard says. 

Conclusion: Upholding Standards

A testing failure can be cumbersome and costly, especially for smaller businesses, and can follow a company and its products even after the issue is corrected. You put a lot of care and effort into growing the best cannabis you can, so make sure your pre-roll supplier does too.   

Join Us for More Exclusive Insights on California Marketplace

Striving to stay informed about California’s dynamic cannabis industry? We’re thrilled to invite you to two exciting NCIA events tailored for California’s vibrant cannabis industry. Mark your calendars for our upcoming California Stakeholder Summit being held in Sacramento, CA on Thursday, February 22nd and the California-focused edition of our Policy Matters webinar series being broadcast on Thursday, February 8th.

• California Stakeholder Summit 2024: Dive deep into the latest trends, regulations, and opportunities shaping California’s cannabis landscape. Join featured speakers United States Representative Congresswoman Barbara Lee (D-Oakland), Director of California Department of Cannabis Control, Nicole Elliot, and California Assembly Majority Leader Cecilia Aguiar-Curry (D-Winters). All industry professionals are invited; NCIA members attend free and have exclusive access to participate in the Q&A session. Register here to secure your spot.

• Policy Matters: Golden State Green – Regulating California’s Cannabis Industry: Join us for an insightful discussion on the evolving policies and regulations impacting California’s cannabis sector. Gain valuable insights from experts and thought leaders driving change in the Golden State. Register now to reserve your virtual seat.

Don’t miss out on these invaluable opportunities to stay informed, network, and shape the future of cannabis in California. Register today and be part of the conversation!

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