Gov. Gavin Newsom Seeks Interstate Cannabis Trade: Could California Supply The Nation?

In September, during the Oakland International Film Festival, Governor Gavin Newsom (D) talked about the benefits of Federal legalization for California growers, who could potentially supply the nation with premium legal cannabis. 

He also thanked cannabis advocates and activists for their leadership and for helping reach the "important milestone" of legalizing cannabis in California in 2016.

Federal Reform Is Needed

Newsom noted that the state still needs to work on "imperfections" in the legislation. “We know, as I’ve said, the fight is not over. We have so much more work to do—not just here in the state, but also at the federal level, to move forward with decriminalization to end federal prohibition,” he said.

The governor is interested in the interstate cannabis market in the US and the fact that his state could “legally supply the rest of the nation.”

Federal legalization would “allow our farmers to legally supply the rest of the nation—that’s critical,” Newsom added, as long as the authorities certify that this does not result in "a significant legal risk" for the state.

Cannabis Growers First In The Supply Chain

Newsom recently signed a bill, among nine other marijuana-related laws, that establishes a framework for interstate commerce, which is critical for cannabis growers in the state.

Under SB 1326 by Sen. Anna Caballero (D-Merced), California can enter into agreements with other states to allow cannabis transactions with entities outside state lines.

As reported by Marijuana Moment, unlocking interstate trade in marijuana could prove especially lucrative for California, where the climate is ideal for outdoor cultivation, which could help meet demand in other states.

According to a legislative analysis the new legislation "would prohibit an entity with a commercial cannabis license issued under the laws of another state from engaging in commercial cannabis activity within the boundaries of this state without a state license, or within a local jurisdiction without a license, permit, or other authorization issued by the local jurisdiction.”

Currently, under federal prohibition, only commercial marijuana exports that cross state lines constitute illegal trafficking, thus, authorizing interstate commerce could help further control the illicit market by reducing demand for unregulated products and allowing farmers to earn a living legally.

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Photo: Courtesy Of Dimitri MARRIE by Shutterstock and Wikimedia Commons // Edited by Benzinga