Marijuana Business Factbook 2019

219 © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. Financial & Operational Data: Cannabis Product Manufacturers | Chapter 4 MJBIZDAILY.COM CHART 4.13: Sampling Of Changing Rules & Regulations For Cannabis Products Source: Marijuana Business Daily © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Sampling Of Changing Rules & Regulations For Manufactured Cannabis Products June 2018: Arizona's Court of Appeals rules cannabis extracts are illegal. The ruling has been challenged and is undergoing an appeal to the Arizona Supreme Court. Dispensaries are coninuing to sell extracts while they wait for a final decision. October 2016: All marijuana edibles in Colorado are required to have a THC stamp on each individual 10-milligram edible serving. October 2017: The state banned edible marijuana products shaped like animals, humans or fruits. October 2018: Regulators ordered edibles makers to cease production of cannabis-infused gummies and hard candies, warning they might appeal to children. December 2018: After fierce industry opposition, the state released new requirements for edibles. Cannabis-infused gummies and hard candies are no longer prohibited. Instead, “brightly colored” products and packaging are now against the rules. AZ CO July 2018: Legal cannabis companies in the state are mandated to sell only product that meets standard potency limits and has been properly tested, packaged and labeled. CA WA The testing-compliance crisis in California ― referred to as an “extinction event” by some industry insiders ― was not an isolated event. In fact, several states have amended cannabis product rules and regulations after the markets have already become established, creating uncertainty and revenue losses for manufacturers unable to comply with new rules quickly enough. Regulators in Washington state changed their regulations in October 2018, ordering infused gummy and hard candy manufacturers to cease production of these products under the belief they might appeal to children. In December, regulators pulled back, saying such products could continue to be manufactured so long as they are dull in color ― meaning brightly colored products and packaging are prohibited. The timeline for implementation was also extended, with the new rules set to go in place in January 2020. Although that timeline provides manufacturers and retailers more time to plan, industry players claim the uncertainty and delays cost manufacturers money on top of the additional costs of complying with the new rules, in terms of changing existing product recipes and purchasing new packaging materials. Manufacturers are also concerned that retailers will refuse to restock products in the old packaging materials, fearing they will be unable to sell them before the new regulations are in place. And in both Colorado and Oregon, regulators issued rules requiring a THC stamp on edibles after production and sales had begun, forcing manufacturers and retailers to develop innovative ways to move noncompliant product from shelves before the deadline.