Cannabis Industry Pushes Back Against Strict Mold Testing Rules, High Cost Of Compliance & More Regs

As the Benzinga Cannabis Capital Conference gears up for Chicago on Sept. 27-28, gathering top CEOs, investors and leaders in the industry, let’s scroll through the latest regulatory updates. Some of these will undoubtedly be among the topics during the two-day event.

The High Cost Of Compliance: California Cannabis Companies Could Face Labeling Challenges

California lawmakers sent two bills to the desk of Gov. Gavin Newsom (D) on Tuesday, both carrying potentially expensive consequences regarding cannabis product labeling, reported the North Bay Business Journal.

Under Assembly Bill 1207 from Assemblymember Jacqui Irwin, D-Camarillo - titled Cannabis Candy Child Safety Act - the sale, distribution or production of cannabis products with packaging and labeling attractive to children that display “humans, animals, fruits and vegetables” will be prohibited.

If Gov. Newsom signs, cannabis businesses must pay between $100,000 and $300,000 each to develop new labels.

Senate Bill 540 directs the California Department of Cannabis Control to reassess packaging and labeling restrictions to align with new scientific findings and also seeks the creation of “a brochure encouraging responsible cannabis use,” according to a letter that statewide cannabis trade groups sent to the governor.

Besides these two pieces of legislation, state policymakers have also advanced two bills that seek to expand the rights of cannabis consumers.

Rhode Island Cannabis Advocates Are Polishing Up New Marijuana Law

A group of marijuana workers in Rhode Island met on Monday to discuss the implementation of social equity initiatives that cater to potential marijuana business owners who have been disproportionately affected by the consequences of the war on drugs, reported the Rhode Island Current.

Marijuana became legal in the state in 2022. Under that law, 24 retail licenses are permitted, of which six are reserved for social equity applicants and another six for worker-owned cooperatives.

Zara Salmon, who has been working on closing loopholes in the enacted cannabis law for months, says they’ve been on “a hefty endeavor.”

“But nothing is impossible—with community and organizing, we can go against Big Cannabis,” the founder of the Providence-based plant-lifestyle brand CRAVEInfused, told the group. “We got this.”

Cannabis Industry Fights Back Against Strict Mould Testing Rules

Meanwhile, the Oregon Health Authority has recently filed a temporary rule suspending the need to conduct mold tests on cannabis products in response to a stay granted by the Court of Appeals, reported Business of Cannabis.

The move follows an attempt from Oregon officials to enact regulations that required all cannabis products to be tested for four strains of the mold Aspergillus including A. flavus, A. fumigatus, A. niger and A. terreus. The products that tested positive for any of the mold strains would not reach shelves under that rule.

Cannabis industry stakeholders in Oregon, led by the Cannabis Industry Alliance of Oregon (CIAO), legally challenged the rule. According to them, the rule has a “devastating and irreparable” effect on the companies operating within the market, as the mold is “endemic in the air.”

These issues and much more are on the menu at the Benzinga Cannabis Capital Conference in Chicago on Sept 27-28. Get your tickets today before prices go up and secure a spot at the epicenter of cannabis investment, culture, politics and branding.

Photo: Courtesy of succo, mrkukuruznik5 by Pixabay