You can’t simply dump hashish waste within the trash.  The hashish waste administration trade is going through environmental challenges due to improper waste disposal, failure to recycle, air air pollution and emissions of fuel or chemical substances attributable to hazardous supplies. To promote public well being and security, hashish waste haulers should observe particular hashish waste rules required by the Bureau of Cannabis Control, CalCannabis Cultivation Licensing, and Manufactured Cannabis Safety Branch (“licensing agencies”).

Licensing businesses enable both the licensee (hashish cultivator, producer, and so on.)  or a regionally authorized hauler to move hashish waste to a disposal web site (landfill) or a metamorphosis facility (recycling or processing middle). Locally authorized haulers are generally contracted or franchised by a metropolis by way of a franchise program.

A franchise program consists of a metropolis’s institution of a zone (often metropolis’s limits for smaller cities, however may be a number of zones for bigger cities) and contracting with a waste hauler (or a number of haulers for bigger cities), often on an unique foundation, to haul waste inside that zone.  Selection of the hauler or waste administration firm is usually executed by way of a aggressive bidding course of.  Contracting with a metropolis and limiting the variety of haulers can assist promote public well being and security, group of waste administration, and environmentally pleasant requirements. A franchise program additionally supplies waste administration assets and options for licensees by giving them entry to a licensed waste hauler.

The contract governing the connection between the town and waste hauler is known as a franchise settlement. A draft franchise settlement is often submitted by the hauler as a part of the bidding course of, and if the hauler is chosen, the finer phrases of the franchise settlement are negotiated with the town earlier than signing.

In brief, hashish franchise agreements often present that the hauler is granted the unique proper to haul hashish waste throughout the metropolis limits as long as the hauler maintains the correct {qualifications}, safely carries out its providers, and pays the town a periodic negotiated franchise charge. Here are 5 gadgets to incorporate in a franchise settlement for hashish waste administration:

1.) Encouragement of Diversion

Endless laws has been enacted in California requiring and inspiring diversion of waste, together with hashish waste.  Diversion happens when waste is diminished or eradicated—moderately than hauling waste to a landfill it’s as a substitute recycled, composted or in any other case handled. A well-drafted hashish waste franchise settlement will encourage diversion.

Franchise agreements in additional established industries can require a minimal diversion charge; nevertheless, given how new the hashish trade is, requiring a diversion charge is a giant ask. A softer method on the early phases is possible, which may embody submitting a diversion plan and requiring periodic diversion stories be submitted to the town.

2.) Promotion of Public Safety:

No cannabis-related settlement is full with out public security woven all through—particularly agreements with the town. Cannabis generally is a harmful materials when within the mistaken palms. MAUCRSA supplies the minimal necessities by which hashish waste should be disposed to, partially, promote security; nevertheless, like most new laws, there are numerous conditions the laws has not accounted for.  A well-drafted franchise settlement and customary working procedures (often submitted to the town in the course of the bidding course of) can cowl many gaps associated to providers, tools, and personnel. Additionally, the settlement can present each carrots and sticks to assist compliance with security necessities and tips.

3.) Scope of Services: A transparent delineation of roles between hauler’s providers and licensee’s tasks is necessary. Haulers shouldn’t be performing duties solely hashish licensees could carry out. One methodology to assist with this distinction is to make sure that there are clear definitions of “cannabis” and “cannabis waste”. Licensees are to deal with hashish, and haulers are to deal with hashish waste.

It can be necessary to make sure that the hashish waste hauler doesn’t carry out duties exterior hashish waste administration, similar to basic waste hauling, which can violate different franchise agreements between the town and its basic waste haulers.

4.) Franchise Fee Arrangement and Revenue Definition: The franchise charge paid to the town is often primarily based on income generated from the hauling providers or the amount of providers supplied. If the franchise charge relies on income generated, there ought to be a selected definition of “revenue”.  Revenue may be outlined as the whole lot below the solar generated by the hauler throughout the metropolis limits, however extra typically “revenue” has exceptions.  Exceptions can embody income made by way of diversion efforts, similar to recycling, to encourage the hauler to divert.

5.) Hauler Default and Remedies: There may be an countless variety of hauler defaults that happen below a franchise settlement. Categorizing these defaults as curable, non-curable, minor, or main can assist set the events’ expectations. Whether one thing is main or minor often pertains to the default’s influence on public security. Minor curable defaults that aren’t cured or minor non-curable defaults may end up in a comparatively small treatment, similar to a further charge paid to the town. Major defaults may end up in termination of the franchise settlement.

Properly drafted franchise agreements can create stable basis upon which hashish franchise packages may be constructed.  For all events, franchise packages present infrastructure to drive protected, compliant, and sustainable environmentally pleasant financial progress. For cities, franchise charges present a income to put money into social or youth providers, training, parks, and different neighborhood assets.

About the Author(s)

Tatev is an legal professional and regulatory compliance specialist as founder and CEO of The Oganyan Agency. She joined a household of hashish CPG startup firms (manufacturing, distribution) in 2016. With an entrepreneurial mindset. Tatev created the human assets, regulatory compliance, and authorized departments from the bottom up, constructing a basis for exponential enterprise progress that was instrumental in navigating the businesses by way of the legalization of leisure hashish. Tatev based The Oganyan Agency to offer scalability by way of compliance and company social accountability to companies, partnering with authorities affairs, authorized and technical consultants throughout the nation to deliver greater requirements of high quality, sophistication, and accountability to all industries. Tatev may be reached at [email protected] or 949-264-3247.


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