Almost 400 cannabis companies in California had their licenses suspended by the California Bureau of Cannabis Control last week because they didn’t enter the required “track-and-trace” system, reported KPBS-TV.
Track-and-trace was written into Proposition 64, the 2016 ballot measure that legalized recreational cannabis use.
The purpose of the system is to ensure that cannabis products from licensed cannabis companies don’t end up being sold in the illegal market.
Alex Traverso, a spokesman for Bureau of Cannabis Control, told KPBS-TV that the businesses were informed they must enter the system within five days of obtaining their provisional licenses.
The agency reminded the companies and then issued a final warning at the end of October, he said.
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"These are growing pains," Traverso told KPBS-TV. "I think we knew it was going to be a process and it was going to take some time, and that it was going to be an adjustment period for a lot of people who have been doing things one way for some time now."