New regulations from the California Dept. of Tax and Fee Administration (CDTFA) affect the operations of the CA cannabis industry. Rules adopted on April 26, 2021, entitled CA Cannabis Track-and-Trace, specify information that certain distributors or retailers of cannabis must enter into the Track-and-Trace system. Those who are required to record commercial cannabis activity in the system must list wholesale cost and retail selling price of the product. The CDTFA uses the information to determine (for cannabis excise tax purposes) the mark-up rate for cannabis and cannabis products sold in arm’s length transactions. The newly adopted rules are the same as previous emergency regulations.