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420 with CNW — California Could Make Interstate Cannabis Commerce a Reality Sooner

Is the Golden State indeed facilitating cannabis cross-state trading? California marijuana regulators have had extensive discussions with the state’s attorney general. Top state officials from the Cannabis Control Department (DCC) laid out the lawsuit over how California might avoid federal restrictions if state authorities decide to approve marijuana exports throughout state boundaries in an eight-page memo to the state AG’s office on Jan. 27, 2023.

Executives in the cannabis sector and legal professionals expressed their opinions about the memo, labeling it a significant development that, if realized, would require more time.

Matthew Lee, DCC chief lawyer, and Nicole Elliott, DCC executive director, have requested that attorney general Rob Bonta express an opinion on whether exporting cannabis to other states would pose a significant legal risk to California, given the state’s law on controlled substances. They pointed out that Congress is prohibited from limiting how states manage their imports and exports by the constitution.

The move follows the September signing of Proposed Bill 1326 by California Governor Gavin Newsom, which might establish interstate trade agreements if the following factors were satisfied:

  • Nationwide legalization, which won’t happen anytime soon.
  • A law is passed prohibiting the government from allocating funds to stop cannabis shipment between states.
  • The United States Justice Department issues a statement or memo approving interstate marijuana trade.
  • The completion of an examination of the applicable legislation, which includes federal court rulings and executive regulations, incuding the attorney general providing a reasoned report stating that state laws enforcing clinical or adult-usage commercial cannabis activity would not pose a major legal hazard to California under the federal CSA law.

Several states have made efforts to allow interstate commerce, including Oregon, New Jersey and Washington, DC. The specifics of how interstate commerce may operate are not known, despite the fact that California’s move represents a significant stride toward permitting cannabis businesses to sell cannabis outside of the state.

Outdoor-grown marijuana has long been a staple of the Emerald Triangle area of California, and a number of those cultivators have gone legitimate to participate in the legal sector. To help reduce excessive production, those marijuana growers want to see the whole nation opened up to legal trading.

Additionally, they want to create an appellations system that would enable California marijuana to be handled and promoted similarly to the celebrated Champagne of France.

At the moment, since marijuana air travel is subject to federal regulation, California would have to find a neighboring state to be a willing trading partner. Additionally, even if the state succeeds in gaining a partner, it must accept all of the conditions outlined in SB 1326. The new law mandates, among other things, that the partnering state adhere to all of the same testing, packaging, and labeling requirements as California’s marijuana market.

Should interstate commerce commence, there is likely to be a flurry of activity among companies sending inquiries to companies such as REZYFi Inc. which specialize in providing alternative funding to marijuana entities in need of a cash injection to boost operations and take advantage of market opportunities.

NOTE TO INVESTORS: The latest news and updates relating to REZYFi, Inc. are available in the company’s newsroom at https://cnw.fm/REZY

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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