Metrc – Distributors Can No Longer Receive Bulk Manufactured Products

Metrc released a Support Bulletin on November 17 outlining upcoming changes to Metrc functionality. Starting on January 19, 2021, Metrc will restrict the types of products that can be received by each license type. Metrc will be reconfigured to only allow licensees to receive packages with the Item Categories allowed for their license type, as outlined in Appendix A, copied below.

Licensees will no longer be able to receive products in Metrc that they are not permitted to have per the regulations. For example, distributors will no longer be able to receive bulk manufactured products. All manufactured products intended for transfer to a Distributor or Retailer, and all flower intended for transfer to a Retailer must be packaged using an Item Category with a Unit Measure of each. Manufactured products packaged using a Unit of Measure of bulk weight or volume will no longer be transferrable to a Distributor or Retailer. This configuration will change the ability to transfer some packages.

New Proposed Legislation on Provisional Licenses & Industrial Hemp

SB-59 was introduced by Senator Caballero on December 7. The bill proposes to extend provisional licenses until 2028. If licensees have not complied with the California Environmental Quality Act (“CEQA”) by January 2022 their provisional licenses will expire, and they will not be eligible for an annual license, so will need to cease operating. This bill is important for the industry because licensees are not eligible for an annual license until they complete CEQA. CEQA is a long and expensive process and many licensees are still several years away from complying with the Act. Given that January 2022 is now only a year away, this bill could provide necessary relief to licensees who will need more than a year to complete CEQA and would be forced to shut down in 2022. A significant number of licensees are in this position and losing them in 2022 would have a major impact on the overall health of the California cannabis market. The pandemic has caused municipal planning departments to shut down and work remotely, which has slowed the permitting and inspecting process and caused CEQA-related delays. This bill would give licensees some breathing room to complete CEQA over the next several years.
 
This is a good time to review the status of your project to ensure that you will be eligible to receive an annual license in 2022.
 
Following up on the hemp bill introduced last year, Assembly Member Aguiar-Curry introduced AB-45 regarding industrial hemp products. The bill would state that a dietary supplement, food, beverage, cosmetic, or pet food is not adulterated by the inclusion of industrial hemp or cannabinoids, extracts, or derivatives from industrial hemp if those substances meet specified requirements. We are tracking the progress of this bill closely and will keep you informed of any updates.
If your company is preparing to launch any marketing or advertising in the cannabis or hemp space, contact your Clark Howell attorney or call our main line at 877-257-2442.

UPCOMING EVENTS

Los Angeles County Bar Association (LACBA) Cannabis Law Section CLE
Attorney Elizabeth Barket-Kremser 
March 10, 2021 from 10-11am PST.
Join Ariel Clark and the LACBA Cannabis Law Section for a Q&A Discussion with Cat Packer, Executive Director of the LA City Department of Cannabis Regulation. Find out what the DCR is prioritizing in 2021 and receive an hour of CLE credit (if applicable) for attending!
 
Tuesday January 26, 2021; 10am-11am via Zoom

If you have any questions about how the above or would like to discuss how it could impact your business, please contact your attorney directly or call our main line at 877-257-2442.