California Passes Cannabis Bill that Includes Organic Cannabis Certification

The California Legislature passed cannabis legislation that includes an organic certification program that will be implemented by July 1, 2021. The organic certification program will be comparable to the National Organic Program and the California Organic Food and Farming Act. The organic certification program will help differentiate the California cannabis market and brands from national competitors.

The bill that was sent to Governor Newsom for his signature also contains the following changes to cannabis regulations:

  • The legislation allows a California licensing regulator to fine a licensee or unlicensed cannabis business for violations of the state regulatory requirements up to $5,000 per day per violation for licensees and $30,000 per day per violation for unlicensed cannabis businesses.

  • The Bureau of Cannabis Control Bureau may provide funding to local jurisdictions seeking help implementing social equity programs. The new law increases the amount of funding that is available to local jurisdictions, and permits the Bureau to utilize the Governor’s Office of Business and Economic Development to help administer the program.

  • The new law extends the repeal date for provisional licenses to January 1, 2022, and allows state regulators to revoke or suspend provisional licenses if the holder is not actively and diligently pursuing an annual license.