June 21, 2017 | Written By: An-Chi Tsou, PhD

Months after the original release of the Governor’s proposed trailer bill language (TBL) it was finalized for the Legislature’s vote and passed on June 15, 2017. The new language was inserted into SB 94 as part of the 2017-18 California budget. The TBL has several new and exciting updates. Lets dive into some of the highlights.

Repealed MCRSA Provisions Get a Second Chance in the TBL

In general, the TBL effectively repeals the Medical Cannabis Regulation and Safety Act of 2015(MCRSA). Despite being reversed, the MCRSA provisions didn’t go completely to waste. Many of the provisions from MCRSA were reinserted to the TBL. Not only that, the TBL clarifies that commercial cannabis activity is lawful in California so long as it is done under a valid state license, local approval (if any), and complies with state regulations. This is perhaps one of the most important additions given the current federal climate regarding cannabis.

Priority, Temporary and Unlimited licenses

Under the TBL, priority review license applications is to be given to applicants that demonstrate compliance with Prop 215 and its implementing laws before September 1, 2016. With every application, the state may issue a temporary license until the application is approved or denied. The state can award temporary licenses to applicants until January 1, 2019. Also notable, the Type 5 unlimited canopy licenses remained through the various versions of the TBL. Type 5, 5A, and 5B will not be available until 2023.

Local Approval Still Required for State Licensing

One of the most heated areas of debate is the state requirement of a local permit. Applicants will still need to check in with their local authorities prior to applying for a state license. In an effort to involve local officials, the TBL requires all jurisdictions to have a local contact that will be responsible for communicating any local permits/bans on commercial cannabis activity and the applicant’s compliance with local laws.

Notable Provisions in the TBL

While there is no way to cover the entire, almost 300 page, Trailer Bill, here are some big takeaways.

General Revisions

Cultivation

Delivery and Packaging

Distributors and Transportation

Testing

 Manufacturers

Cash Money

Although the budget has been passed and the new TBL will soon be law, there is still a great deal of work to be done in California. The deadlines for submission of public comments on the proposed regulations for the state’s medical cannabis laws passed earlier this month. The regulations will now be updated based public comments and the new laws, but we may not see any language until this fall. There is never a dull day in the regulation of California’s cannabis industry, so stay informed and have your voice heard!

Disclaimer: This article has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice.

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