Cannabis in California

Medical cannabis has been legal in California since 2003, and patients and caregivers have been allowed to grow it collectively or cooperatively since 2003. However, it wasn’t until 2015 that a licensing and regulatory system was put in place.

In 2016, adult-use cannabis was legalized through a ballot initiative, and in 2016, the state’s medical and recreational programs merged with regulations defined in the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). Legal cannabis sales began in California in 2018.

Overview of Key California Cannabis Laws

Is medical cannabis allowed? Yes

Is adult-use cannabis allowed? Yes

Personal Laws

With both medical and recreational cannabis approved and regulated under the same system, possession laws and cultivation laws have loosened in recent years for adults age 21 and older. Since recreational cannabis is legal in California, possession laws apply to both California residents and non-residents.

Personal Possession

Registered Medical Patient or Caregiver Possession: Up to 8 oz.

Adult-Use Possession: Up to 1 oz.

Personal Growing

Adults age 21 and older are permitted to grow cannabis in California under certain limitations. They can also gift up to 1 oz. of cannabis to another adult age 21 or older.

Registered Medical Patient or Caregiver Growing: No more than 6 mature plants or 12 immature plants

Adult-Use Growing: No more than 6 plants

Medical Cannabis Patient Qualification and Registry

Medical cannabis patients with valid medical marijuana identification cards can purchase cannabis products from dispensaries without having to pay the same high taxes as recreational consumers are required to pay.

Qualifying medical conditions include:

  • Anorexia
  • Arthritis
  • Cachexia, or wasting syndrome
  • Cancer
  • Chronic migraine
  • Chronic pain
  • Epilepsy and other seizure conditions
  • Glaucoma
  • HIV/AIDS
  • Multiple Sclerosis
  • Persistent muscle spasms, including but not limited to or caused by Multiple Sclerosis
  • Severe nausea
  • Any other chronic or persistent medical symptom that either:
    • Limits the ability of the patient to conduct one or more major life activities.
    • If not alleviated, may cause serious harm to the patient’s safety or physical or mental health.

Business Laws

Vertical integration or “license stacking” is not required but it is allowed, which means a company can hold multiple licenses across the California cannabis supply chain (e.g., both cultivation and dispensary licenses). Residency is not required to apply for a cannabis business license in California.

Currently, state regulators have no plans to limit the number of licenses issued. However, local municipalities can ban cannabis businesses or limit the number of local licenses they award.

License Types

  1. Cultivation licenses
  2. Manufacturing licenses
  3. Retail/Dispensary licenses
  4. Distributor licenses
  5. Delivery licenses
  6. Microbusiness licenses
  7. Testing licenses
  8. Event licenses

In addition to the eights license types above, there are a variety of sub-categories. For example, there are 18 types of cultivation licenses.

License Fees

License fees vary by license type and within each license type, fees vary based on gross revenue.

Cultivation: $1,250 to $77,905

Manufacturing: $2,000 to $75,000

Retail/Dispensary: $2,500 to $96,000

Distributor: $1,500 to $240,000 (Transport only self-distribution license fees range from $200 to $1,000)

Delivery: $800 to $6,000

Microbusiness: $5,000 to $300,000

Testing: $3,000 to $112,000

Event: $3,000 to $20,000

License Timeline

California had been issuing temporary permits to cannabis businesses, but those are expiring. Currently, all three licensing agencies are accepting applications:

Testing

Testing is required in California based on the lab testing chart from the Bureau of Cannabis Control.

Training

Cannabis license holders are not required to attend specific training.

Learn More about Cannabis in California and How to Work or Start a Business in the California Cannabis Industry

Leafy Green Agency offers a variety of certification seminars for people who want to start businesses, find jobs, get promotions, or invest in the cannabis industry in California and across the country. Follow the link to learn more about our educational seminars.

Sources and More Information

Data current as of 9/26/19.