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California Bill Would Legalizes Interstate Cannabis Commerce, But Isn’t That Against Federal Law?

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

California’s high rate cannabis production inspired a bill to start cannabis exports. California is one of the top cannabis producing states in the country. It meets its residents’ demand for marijuana each month and still has a surplus to make. The state could generate millions of dollars each year from this excess supply of products.

Almost every state in the United States has repealed their strict cannabis use and sale laws over the past decade. Even in different parts of the world, cannabis laws are constantly changing. Not all of the changes have been good, but more than enough have brought positive changes to the US cannabis industry. California cannabis operators could be spoiled because the newest cannabis bill will generate more profit for them and for the state.

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California: The Forerunner of Bold Cannabis Movements

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

SB 1326 seeks to approve 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 supplies can liaise with the California state government to import cannabis to meet the demand of their residents. It doesn’t have to be a recreational state. The bill would allow states with medical programs to import raw materials and finished cannabis products from California.

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

Currently, there are at least two national measures in both houses of the legislature that could enact a change in the national position on cannabis. It’s more or less a win-win situation for the cannabis industry in California.

Fears of the bill

Although House Bill 1326 brings good news for weed-friendly states in the United States, critics say the bill could eliminate the opt-out clause that is currently in place. Most weed-friendly states have opt-outs for municipalities that have no interest in allowing dispensaries and cannabis businesses to be established in their localities. The opt-out clause could be overshadowed by the new bill. The silver lining in this situation is that lawmakers are starting to believe it might not be such a bad thing 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 Report that the bill states that companies and operators registered in other states will not be permitted to participate in the cannabis market in California. All entities and individuals interested in conducting cannabis-related business activities in the state must obtain the necessary state licenses, permits, and other documents before being permitted to do business here. Simply put, smaller operators in the state stand to benefit the most, as major industry players and several large cannabis-related businesses will be unable to operate in certain municipalities.

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

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It took a long time

California Cannabis Industry Association executive director Lindsay Robinson said the association has been considering the issue for a few months now. According to the cannabis operator, the organization has discussed with various trade associations and key industry players the idea of ​​a multi-state or inter-state cannabis trade. She pointed out that the process itself is very delicate and should only be handled with caution.

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

Lindsay Robinson also noted the association’s commitment to ensuring the stabilization of the California cannabis industry. She said the state’s cannabis industry needs to function well and thrive before it can begin its multi-state commerce phase.

Senate Bill 1326 would go a long way to fixing the cannabis economy in several states. The agreements that would be signed would complement the supply lines of the host state without production licenses being issued. Cannabis exports are a compelling idea, and with the right framework, millions of dollars could be made.

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

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