Get Started

 Our Time Management module is now enabled with Time Kiosk, that allows employees to clock in and out using a shared device.

Learn More

California Cannabis Laws

California cannabis laws have evolved significantly since the legalization of medical marijuana in 1996 and the approval of recreational use through Proposition 64 in 2016. Today, adults aged 21 and over can purchase up to 28.5 grams of non-concentrated cannabis and 8 grams of concentrated cannabis per day, while medical marijuana patients have an 8-ounce purchase limit.

Every Dispensary Must Know

About UZIO

California Marijuana Laws at a Glance

  • Track and Trace System: California uses Metrc as its state track-and-trace system.
  • Regulatory Authority: The Department of Cannabis Control oversees the legal marijuana market in California.
  • Purchase Limits:
    • Adults can purchase up to 28.5 grams of non-concentrated cannabis, 8 grams of concentrated cannabis, and 6 immature cannabis plants per day.
    • Medical marijuana patients can purchase up to 8 ounces of medical cannabis per day.
  • Packaging and Labeling:
    • Cannabis labels must have a primary panel for important information and an information panel for other required details.
  • Taxation:
    • Recreational marijuana users pay a 15% excise tax.
  • Medical Marijuana Cards: Both in-state and out-of-state patients can receive a medical marijuana card if they meet the qualifying conditions.
  • Delivery Services:
    • Deliveries can only be made by licensed retailers, micro-businesses with a non-storefront retail license, or licensed nonprofits.

Track and Trace Requirements

Legal Reference:

(a) A licensee and their designated account manager(s) shall:

  1. Designate and train track and trace system users.
  2. Maintain an accurate list of track and trace system users.
  3. Remove unauthorized users from the track and trace system.
  4. Correct data entry errors within three days.
  5. Tag and enter all inventory in the track and trace system.
  6. Monitor and resolve system notifications.
  7. Notify the Department of any loss of access to the track and trace system exceeding 72 hours.
  8. Reconcile inventory with the track and trace system database at least once every 30 days.

Packaging and Labeling Requirements:

  • Packages and labels should not appeal to children and must include a unique identifier for tracking.
  • All labels must display required information in a clear and legible manner.
  • Cannabis flower labels must include the net weight, licensee’s contact information, packaging date, and government warning statements.
  • Labels must list cannabinoid content in percentages for THC, CBD, and other significant cannabinoids.

Purchase Limits

Legal Reference:

(a) A licensed retailer shall not sell more than:

  • 28.5 grams of non-concentrated cannabis.
  • 8 grams of cannabis concentrate.
  • 6 immature cannabis plants per day for adult-use customers.

(b) Medical cannabis patients or caregivers can purchase:

  • 8 ounces of medicinal cannabis per day.
  • 12 immature cannabis plants per day.

Taxes

Legal Reference:

(a) A 15% cannabis excise tax is imposed on purchasers at the point of sale.

  • Retailers are responsible for collecting and remitting the excise tax to the CDTFA quarterly.
  • The excise tax applies to gross receipts, including delivery fees and local cannabis business taxes, but excludes sales tax.

Advertising and Marketing

Legal Reference:

  • All advertisements must accurately identify the licensee responsible for the content by displaying the license number.
  • Advertisements can only be placed where at least 71.6% of the audience is expected to be 21 years of age or older.
  • Direct communication advertisements must verify that recipients are 21 or older.
  • Advertisements must not be false, misleading, or target individuals under 21 years of age.
  • Cannabis advertising is prohibited within 1,000 feet of schools, daycares, playgrounds, or youth centers.

Delivery Services

Legal Reference:

  • Deliveries can only be made by licensed retailers, micro-businesses, or nonprofits.
  • Delivery employees must carry a copy of the licensee’s current license and a government-issued photo ID.
  • Delivery request documentation must be available during delivery for inspection.
  • Local jurisdictions cannot prevent compliant cannabis deliveries on public roads.
  • The value limit for goods carried by a delivery employee is $10,000.

Track and Trace System

The track and trace system is crucial for maintaining compliance in California’s cannabis industry. The Department of Cannabis Control (DCC) uses Metrc, a state-of-the-art track-and-trace system that monitors the movement of cannabis products from “seed-to-sale.” Here’s what you need to know:

Legal Requirements:

  1. Designate and Train Users:
    • Licensees must designate track and trace system users.
    • Users must be trained in the proper and lawful use of the system before access is granted.
  2. Maintain Accurate User Records:
    • Keep an updated list of all track and trace system users, including full names and usernames.
    • Remove users who are no longer authorized to represent the licensee.
  3. Correct Data Entry Errors:
    • Correct any data entry errors within three calendar days of discovery.
  4. Tagging and Inventory Entry:
    • All inventory must be tagged and entered into the track and trace system as required.
    • Use only plant and package tags provided by the Department or its designee.
    • Tags must be recorded within three days of receipt.
  5. Monitor System Notifications:
    • Monitor all system notifications and resolve issues identified without dismissing them before resolution.
  6. Report Loss of Access:
    • Notify the Department of any loss of access to the track and trace system that exceeds 72 hours.
  7. Inventory Reconciliation:
    • Reconcile the inventory of cannabis and cannabis products with the track and trace system database at least once every 30 calendar days.

Specific Actions to Record in the System within 24 Hours:

  1. Receipt of Cannabis or Cannabis Products:
    • Record the type, weight, volume, or count, date of receipt, and unique identifier (UID).
  2. Rejection of Transferred Products:
    • Record partial or full rejection details.
  3. Manufacturing Activities:
    • Record details of manufacturing activities, including product type, weight, volume, and date.
  4. Internal Testing or R&D:
    • Record the use of products for internal quality control or research and development.
  5. Destruction or Disposal:
    • Record details of any destruction or disposal, including the reason and method.
  6. Packaging or Repackaging:
    • Record details of packaging activities.
  7. Laboratory Testing:
    • Include testing results and details.
  8. Sales or Donations:
    • Record sales or donations, including type, quantity, and date.

Additional Key Points:

  1. Tags Management:
    • Maintain a sufficient supply of tags.
    • Discard tags after use.
    • Only use tags assigned to your license and do not transfer them to other licensees.
  2. Recordkeeping:
    • Maintain detailed records of all track and trace activities.
    • Ensure data accuracy and timely updates.
  3. Compliance:
    • Regular audits and reconciliations to ensure compliance.
    • Immediate action to correct discrepancies.

 

By following these guidelines, California cannabis businesses can ensure they are compliant with state regulations and maintain an accurate and transparent record of all cannabis products from seed to sale.

Next, we will cover the packaging and labeling requirements for California cannabis businesses.

Packaging and Labeling

Packaging and labeling are critical aspects of compliance for cannabis products in California. The Department of Cannabis Control (DCC) sets strict guidelines to ensure consumer safety and product transparency. Here’s what you need to know:

Legal Requirements for Packaging:

  1. Resealable, Tamper-Evident, and Child-Resistant:
    • All cannabis and cannabis products must be packaged in a resealable, tamper-evident, and child-resistant container before delivery to a retailer or microbusiness authorized for retail sales.
  2. Non-Attractive to Children:
    • Packages and labels must not be designed in a way that is attractive to children.
  3. Unique Identifier:
    • Each package must include a unique identifier for tracking purposes.

Information Required on Labels:

  1. Primary Panel (Front or Top of the Package):
    • Product Identifier: Common or usual name or description of the item.
    • Net Weight: Listed in both metric and U.S. customary units.
    • Universal Symbol: California’s universal symbol for cannabis, printed in black or white with a contrasting background, at least 0.5 inches by 0.5 inches in size.
  2. Information Panel (Any Part of the Label that is not the Primary Panel):
    • UID Number: Tracking number issued by California’s track-and-trace system.
    • Licensee Information: Name as listed on the license certificate (legal business name or DBA), and phone number or website.
    • Packaging Date: The date (month, day, and year) the product was packaged for retail sale.
    • Government Warning Statement: The following in bold, capital letters:
      • For cannabis flower and uninfused pre-rolls: “GOVERNMENT WARNING: THIS PACKAGE CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.”
      • For manufactured cannabis products: “GOVERNMENT WARNING: THIS PRODUCT CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS PRODUCTS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. THE INTOXICATING EFFECTS OF CANNABIS PRODUCTS MAY BE DELAYED UP TO TWO HOURS. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS PRODUCTS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.”
  3. Additional Information:
    • Cannabinoid Content: List of ingredients, including THC, CBD, and other cannabinoids present in concentrations of 5% or greater, expressed as a percentage for flower products and in milligrams per serving and per package for manufactured products.
    • Allergen Warnings: If nuts or other known allergens are used.
    • Brand Information: Information associated with the unique identifier issued by the Department.
    • Medical Use Statement: For medicinal cannabis products sold at a retailer, the statement “FOR MEDICAL USE ONLY.”
    • Edible Products: The words “cannabis-infused” or “cannabis infused” must be placed immediately above the product identity in bold type and in a text size larger than the text size used for the product identity.

Additional Specifications for Different Product Types:

  1. Edible Products:
    • Each edible must be individually sealed in plain, opaque, and white wrapping marked only with the marijuana universal symbol.
    • The packaging must include a list of all ingredients in order of prominence, storage instructions, expiration date, and warnings to keep away from children and pets.
  2. Usable Products for Smoking:
    • Receptacles must be plain, opaque, and white.
    • Labels must include warnings about keeping the product away from children and that marijuana smoke contains carcinogens and may negatively affect health.
  3. Derivative Products (Non-Edibles):
    • Receptacles must be one single solid color with one additional accent color, avoiding neon colors.
    • Text on the package must be a single solid color, not neon.
    • The universal symbol must be no less than 10% of the overall surface area of the package.

By adhering to these detailed packaging and labeling requirements, cannabis businesses in California can ensure compliance with state regulations, promote consumer safety, and maintain product integrity.

Next, we will discuss the purchase limits for cannabis in California.

Purchase Limits

Understanding purchase limits is crucial for both dispensaries and consumers to ensure compliance with California cannabis laws. Here’s a breakdown of the purchase limits for both adult-use and medical cannabis in California:

Legal Reference

Adult-Use Cannabis:

  • Non-Concentrated Cannabis: Adults 21 years of age and older with a valid government-issued ID can purchase and possess up to 28.5 grams (approximately one ounce) of non-concentrated cannabis (flower) per day.
  • Concentrated Cannabis: Adults can purchase up to 8 grams of concentrated cannabis (including vape cartridges and extracts) per day.
  • Immature Cannabis Plants: Adults can purchase up to 6 immature cannabis plants per day.

Medical Cannabis:

  • Medical Cannabis Flower: Qualified patients or their primary caregivers can purchase and possess up to 8 ounces of dried mature flowers per day.
  • Immature Cannabis Plants: Medical cannabis patients can purchase up to 12 immature cannabis plants per day.
  • Exceptions: If a patient’s valid physician’s recommendation specifies a different amount, they may purchase an amount consistent with their needs as recommended by the physician and documented in the physician’s recommendation.

Summary of Purchase Limits

  • Adults (21+):
    • 28.5 grams of non-concentrated cannabis per day.
    • 8 grams of concentrated cannabis per day.
    • 6 immature cannabis plants per day.
  • Medical Cannabis Patients:
    • 8 ounces of cannabis per day.
    • 12 immature cannabis plants per day.
    • Exceptions: Amount consistent with physician’s recommendation.

Important Notes:

  • These limits are per day, and exceeding them can result in legal consequences.
  • Dispensaries must ensure that sales do not exceed these limits to remain compliant with state regulations.
  • Accurate records must be maintained to track daily sales and ensure adherence to these limits.

By understanding and adhering to these purchase limits, both consumers and dispensaries can ensure compliance with California’s cannabis laws and contribute to a safe and regulated cannabis market.

Next, we will discuss the taxes associated with cannabis sales in California.

Taxes

Understanding the tax structure is essential for both cannabis businesses and consumers in California. The following section outlines the key aspects of cannabis taxation in the state.

Legal Reference

Cannabis Excise Tax:

  • Rate: A 15% excise tax is imposed on purchasers of cannabis or cannabis products.
  • Collection: Retailers are responsible for collecting this excise tax from consumers and remitting it to the California Department of Tax and Fee Administration (CDTFA). This shift from distributor to retailer took effect on January 1, 2023.
  • Calculation: For 2023, the excise tax is based on 15% of the retailer’s gross receipts from the retail sale of cannabis or cannabis products. This includes the sales price after discounts and all charges related to the sale, such as delivery fees and any local cannabis business taxes listed separately on the invoice or receipt provided to the purchaser. The rate is subject to change on July 1, 2025.
  • Exemptions: Non-cannabis items, sales tax, and donations of medicinal cannabis are exempt from the excise tax.

State and Local Sales Tax:

  • State Sales Tax: In addition to the excise tax, cannabis sales are subject to state sales tax. The standard rate is 7.25%, though it can vary depending on local jurisdictions.
  • Local Sales Tax: Local municipalities may impose additional sales taxes, which can vary widely across different regions in California.

Business Tax:

  • Local Business Tax: Many cities and counties impose their own business taxes on cannabis operations. These taxes are typically a percentage of gross receipts and can vary significantly by location.

Cultivation Tax:

  • Discontinued: As of July 1, 2022, the cultivation tax has been eliminated, providing tax relief to cannabis cultivators in California.

Summary of Taxes:

  • 15% Cannabis Excise Tax:
    • Collected by retailers and applied to gross receipts.
  • State Sales Tax:
    • Standard rate of 7.25%, subject to local variations.
  • Local Sales Tax:
    • Additional taxes imposed by municipalities, varying by region.
  • Local Business Tax:
    • Percentage of gross receipts, varying by jurisdiction.
  • Cultivation Tax:
    • Discontinued as of July 1, 2022.

Compliance:

  • Retailers: Must include the excise tax as part of the total cost to the consumer and ensure it is clearly itemized on receipts. They are responsible for remitting the collected tax to the CDTFA.
  • Consumers: Should be aware of the taxes included in their purchase price, as these taxes can significantly impact the total cost of cannabis products.

By understanding the tax obligations, cannabis businesses can maintain compliance and consumers can make informed purchasing decisions. Next, we will cover advertising and marketing regulations for cannabis businesses in California.

Advertising and Marketing

Advertising and marketing are crucial for the success of cannabis businesses, but they come with strict regulations to ensure compliance and protect public interest. The following section outlines the key rules and guidelines for advertising and marketing cannabis products in California.

Legal Reference

Identification and Transparency:

  • License Number: All advertisements must clearly display the licensee’s license number.
  • Responsible Party: Advertisements must identify the licensee responsible for the content.

Audience Restrictions:

  • Age Requirement: Advertisements must target audiences reasonably expected to be 21 years of age or older. This is determined by reliable, up-to-date audience composition data showing that at least 71.6% of the audience meets this age requirement.

Media Restrictions:

  • Broadcast and Digital Media: Advertisements can only be placed in broadcast, cable, radio, print, and digital communications if the audience composition meets the age requirement.
  • Age Verification: Direct, individualized communication or dialogue controlled by the licensee must use a method of age affirmation (e.g., user confirmation, birth date disclosure) to verify that the recipient is 21 years of age or older before engagement.

Content Restrictions:

  • Truthfulness: All advertising must be truthful and appropriately substantiated.
  • Prohibited Content:
    • False or misleading information.
    • Statements inconsistent with product labeling.
    • Implications that cannabis originated from a specific place unless labeled accordingly.
    • Content attractive to children, including cartoons or mascots.
    • Display or promotion of cannabis consumption in a way that encourages use by minors.
    • Health claims without substantial evidence.

Location Restrictions:

  • Proximity Limits: Advertising is prohibited within 1,000 feet of a daycare center, school providing instruction from kindergarten through 12th grade, playground, or youth center.
  • Billboard Restrictions: As of January 2021, advertising cannabis on billboards located on Interstate Highways or State Highways crossing the California border is illegal.

Promotional Restrictions:

  • Free Products: Licensees cannot give away cannabis products or accessories as part of a business promotion or other commercial activity. Donations to patients are allowed under specific conditions.

Social Media and Online Advertising:

  • Age Screening: Cannabis-related websites and social media pages must employ age-screening mechanisms to verify that users are at least 21 years old before they can view any content or before collecting personal information for advertising purposes.
  • Social Media Notifications: Advertisements on social media or mobile applications must include a notification that the content is for individuals 21 years of age or older.

By adhering to these advertising and marketing guidelines, cannabis businesses can effectively promote their products while remaining compliant with California’s regulations. Next, we will explore the rules for delivery services limits in the state.

Delivery Services

Cannabis delivery is legal in California, with strict regulations in place to ensure compliance and safety. Licensed retailers, microbusinesses with a non-storefront retail license, and licensed nonprofits are allowed to conduct delivery services.

Legal Reference

Delivery Authorization:

  • Only licensed retailers, microbusinesses with a non-storefront retail license, and licensed nonprofits can make deliveries.
  • All delivery employees must carry a copy of the licensee’s current license and a government-issued photo ID.

Employee Identification:

  • Employees delivering cannabis products must present their license and ID upon request to law enforcement, regulatory authorities, and other state and local agencies enforcing cannabis regulations.

Delivery Documentation:

  • The licensee must keep a copy of the delivery request during the delivery and make it available upon request by licensing authorities and law enforcement officers.
  • Delivery requests must comply with state and federal laws regarding the protection of confidential medical information.
  • Customers must also keep a copy of the delivery request and present it upon request by licensing authorities and law enforcement officers.

Jurisdictional Restrictions:

  • Local jurisdictions cannot prevent the delivery of cannabis or cannabis products on public roads by a licensed, compliant entity.

Delivery Limits:

  • The value of goods carried by a delivery employee is limited to $10,000.
  • Taxes are assessed based on the customer’s delivery location, not the dispensary location.

Curbside Delivery:

  • Curbside delivery is allowed for storefront retailers. Cannabis purchased from the retailer can be delivered to customers in a vehicle parked outside the licensed premises.
  • Curbside deliveries must occur under video surveillance, with retail employees verifying each customer’s age.

Safety and Compliance:

  • Delivery vehicles should not have markings indicating they are carrying cannabis products to ensure safety.
  • Deliveries must comply with all local and state regulations, including ensuring that no sales are made to minors or unauthorized individuals.

By adhering to these detailed delivery regulations, cannabis businesses in California can provide safe and compliant delivery services, expanding their reach and customer convenience while maintaining strict adherence to the state’s legal framework.

California Cannabis Laws FAQs

Is recreational cannabis legal in California?

Yes, recreational cannabis is legal in California. Proposition 64, also known as the Adult Use of Marijuana Act (AUMA), legalized the use and possession of cannabis for adults aged 21 and over in 2016.

What is the tax on cannabis in California?

Recreational cannabis users in California pay a 15% excise tax. Beginning January 1, 2023, this tax is collected by retailers and charged directly to purchasers. Additionally, California imposes state sales tax and business tax for recreational sales, though specific rates may vary by location.

How much weed can I buy in California?

Adults aged 21 and over can purchase up to:

  • 28.5 grams of non-concentrated cannabis per day
  • 8 grams of concentrated cannabis per day
  • 6 immature cannabis plants per day

Medical marijuana patients can purchase up to:

  • 8 ounces of medical cannabis per day

Where can I buy cannabis in California?

Cannabis can be purchased from licensed retailers throughout the state. These retailers must comply with state regulations and maintain proper licensing to sell cannabis and cannabis products.

What are the qualifying conditions for medical cannabis in California?

Qualifying conditions for medical cannabis in California include, but are not limited to:

  • Cancer
  • Anorexia
  • AIDS
  • Chronic pain
  • Spasticity
  • Glaucoma
  • Arthritis
  • Migraine
  • Any other illness for which marijuana provides relief, as determined by a physician

Where can I use cannabis in California?

Cannabis use is permitted in private residences and certain licensed establishments. However, it is illegal to use cannabis in public places, while driving, or in any location where smoking tobacco is prohibited. Local jurisdictions may have additional restrictions on cannabis use.

Disclaimer: The material contained on this website and any attached or referenced pages has been compiled by UZIO for informational purposes only. It is not intended to be and is not considered to be legal advice. This post is current as of [04-July-2024]. Cannabis regulations are rapidly changing, and legal advice of any nature should be sought from legal counsel.

Redirecting...