California has no shortage of issues with its legalized cannabis marketplace. For a couple of years now, an open secret in California (and a cautionary tale for other states) is the concept of “burner licenses“. These are licenses issued to a company by the Department of Cannabis Control (“DCC”) that are used to conduct illegal, interstate trafficking of cannabis.
This burner license issue has gotten so bad that The Green Market Report recently detailed how a California cannabis entrepreneur found his own, branded cannabis products on the shelves of a New York dispensary. The dispensary let him know that it came from a “burner distro” in California. The Green Market Report also quoted New York cannabis regulator, Axel Bernabe, saying “[b]urner distros are the bane of our existence.”
This kind of situation begs the question: should states be charged with greater enforcement against this particular kind of illegal activity, or would interstate cannabis agreements (assuming they ever come to fruition) actually help? The answer is likely, yes, states need to ramp up enforcement for unlawful interstate commerce (otherwise, what is the point of even getting a state license). And, yes, interstate cannabis agreements could help mitigate these issues (but we
California has no shortage of issues with its legalized cannabis marketplace. For a couple of years now, an open secret… Continue reading
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