The latest proposed California rule would deliver a raft of significant changes for MJ businesses, with changes that may prohibit third-party companies that do not have state MJ commercial licenses from participating through contract relationships.
The new rules would prohibit licensees from conducting commercial cannabis activities with any person that is not licensed under the Act. Such prohibited commercial cannabis activities include:
(1) Procuring or purchasing cannabis goods from a licensed cultivator or licensed manufacturer.
(2) Manufacturing cannabis goods according to the specifications of a non licensee.
(3) Packaging and labeling cannabis goods under a non-licensee’s brand or according to the specifications of a non-licensee.
(4) Distributing cannabis goods for a non-licensee.
The BaseCanna “Unfair Advantage”
This essentially puts contract manufacturing out of business. However, BaseCanna’s model where its members would operate within its facility and under its license as a separate “profit-center” would seem to be within the new regulations. That gives BaseCanna an “unfair advantage” to attract and retain Cannabis Operators.
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