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Among the bills signed into law by California Gov. Gavin Newsom on September 18 was SB 1326, which addresses the interstate cannabis business ban. Overall, the legislation is significant progress for the Golden State’s cannabis market and towards achieving federal legalization.
However, California cannabis businesses may not be able to legally do business with other states yet, as SB 1326 requires one of these four options to occur first: the federal government amends its cannabis prohibition law, or the U.S. Department of Justice issues a memorandum permitting the activity, or federal law is passed that prohibits funding preventing interstate sales, or the U.S. Attorney General declares that the State of California has this right and that it will not be prosecuted by the federal government.