California Cannabis Agency Consolidation Will Affect Cannabis Contracts
Over the next few months, California’s three cannabis agencies are going to consolidate their authority over the entire state’s industry into one new mega-agency: the Department of Cannabis Control. This is undoubtedly a good idea as having three agencies overseeing the same industry has been cumbersome, ineffective, and inefficient for many licensees. many other states consolidate cannabis regulatory authority into one agency, and this is a welcome change for California.
That said, consolidation is going to have a lot of hiccups. Every aspect of licensees’ relation to the agencies will probably undergo some kind of transition: license numbers and certificates will change so they are uniform across all license types, information and documents will need to get transitioned over which will probably not be easy, and it’s unclear which of the agencies current web portals will be usable with the new agency.
We also don’t know a ton about what will happen from a regulatory point of view. Currently, there are three sets of regulations (other than tax regs) that were promulgated by the agencies. It’s likely that the regulations will get combined to some extent as there are a lot of places where there are no conflict. But there