Cannabis or cannabis products.
The amendments proposed in SB1318 are primarily non-substantive and focus on refining existing provisions of the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). The bill further solidifies protections against practices that could harm competition, such as selling products below cost to hinder competitors or engaging in discriminatory pricing practices that would disadvantage certain markets, communities, or geographic areas. This aligns with the state’s broader objectives of maintaining fair competition within the cannabis industry.
Senate Bill 1318, introduced by Senator Mendoza, aims to amend Section 26052 of the Business and Professions Code concerning cannabis and cannabis products. The bill derives its context from the Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), which allows licensed individuals to engage in commercial adult-use cannabis activities under specific regulations. SB1318 intends to clarify and update the existing language regarding unfair business practices surrounding the sale and marketing of cannabis products.
While the updates made by SB1318 are largely viewed as administrative changes, there could be points of contention regarding how strictly these provisions are enforced. Stakeholders in the cannabis industry may have differing opinions on whether the existing regulations sufficiently protect market competition or if they inhibit commercialization efforts. There may also be ongoing discussions regarding the balance between state regulations and local ordinances, as local governments may have their own rules pertaining to cannabis sales.