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Governor Newsom Signs Law Mandating Terroir-Driven Cannabis Appellations

September 30, 2020

by Omar Figueroa

Palo Verde Appellation: the Heart and Soul of the Emerald Triangle.

Proposed Palo Verde Appellation seal, courtesy of Robert Steffano

On September 30, 2020, Governor Gavin Newsom signed Senate Bill 67, urgency legislation which expands geographical indicators under California law to include cities of origin and also mandates that cannabis appellations be grounded in terroir by requiring the practice of planting in the ground and excluding the practices of using any structures or artificial light.   The language of Senate Bill 67 effectively allows only licensed outdoor cultivators — as opposed to mixed-light cultivators or indoor cultivators — to establish officially recognized cannabis appellations.

We discussed the potential impact of Senate Bill 67 upon cannabis appellations in our recent blog post, entitled “Senate Bill 67 Would Mandate Terroir-Driven Cannabis Appellations.”  We also explained the proposed regulatory framework for cannabis appellations in our previous blog post, entitled “Overview of Proposed Regulations for Cannabis Appellations.”

This legislative change is in harmony with public comments directed to the California Department of Food and Agriculture (CDFA) by numerous organizations, including the Origins Council, the International Cannabis Bar Association, and the Law Offices of Omar Figueroa, advocating for terroir-based appellations regulations.

The final language of Senate Bill 67 amends Section 26063 of the Business and Professions Code by adding a new subdivision (c) which states:

An appellation of origin shall not be approved unless it requires the practice of planting in the ground in the canopy area and excludes the practices of using structures, including a greenhouse, hoop house, glasshouse, conservatory, hothouse, and any similar structure, and any artificial light in the canopy area.

Now that Senate Bill 67 has been signed into law, it is anticipated that final regulations incorporating these latest updates to the regulatory framework will be issued in the near future by the California Department of Food and Agriculture.  Hopefully, the appellations regulations will incorporate the many other suggestions made during the public comment period, such as changing the fee structure to provide for funding in future decades and adopting official seals.  No matter what form the final regulations take, the excitement is palpable as the day approaches when the  Cannabis Appellations Program will be ready to accept petitions seeking to establish the world’s first cannabis appellations of origin.

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