Personal Use

• Goes into effect immediately
• Anyone over the age of 21
  • Can purchase, possess, or give away up to 28.5 grams of cannabis (not in the form of concentrated cannabis) or up to 8 grams of concentrated cannabis
  • Can possess up to 6 plants, as well as the cannabis produced from the plants in accordance with any reasonable local regulation or ordinance
  • Can purchase, possess, manufacture, or give away cannabis accessories to anyone over 21
  • Can smoke or ingest cannabis or cannabis products

• Cannabis and cannabis products cannot be smoke or ingested
  • In public place
  • Anywhere where smoking tobacco is prohibited
  • Within 100 feet of a school, daycare center, or youth center (unless in a private residence)
• Cannot ingest or possess an open container of cannabis or cannabis product while either driving or riding as a passenger in a motor vehicle

Medical Cannabis Patients

• Beginning on January 1, 2018, a qualified patient must possess a new identification card supported by a physician’s recommendation
• Personal information of patients and their primary caregivers are considered “medical information” and enjoys the same protection as all other forms of confidential medical information
• The status as a qualified patient cannot be used to restrict parental rights in any proceeding before a family or juvenile court

Cannabis businesses and Licensing

• State licensing authorities are required to begin issuing licenses to recreational cannabis business no later than January 1, 2018
• Commercial recreational cannabis activity is lawful if the business (1) is in possession of both a state issued license and locally issued license, and (2) operate in accordance with all applicable regulations
• There are nineteen different license classifications to be issued by the state, they are:
  • Type I = Cultivation; specialty outdoor; Small.
  • Type IA = Cultivation; Specialty indoor; small.
  • Type IB = Cultivation; Specialty mixed-light; Small.
  • Type 2 = Cultivation; Outdoor; Small
  • Type 2A = Cultivation; Indoor; Small
  • Type 2B = Cultivation; Mixed-light; Small.
  • Type 3 = Cultivation; Outdoor; Medium.
  • Type 3A = Cultivation; Indoor; Medium.
  • Type 3B = Cultivation; Mixed-light; Medium
  • Type 4 = Cultivation; Nursery.
  • Type 5 = Cultivation; Outdoor; Large.
  • Type 5A = Cultivation; Indoor; Large.
  • Type 5B = Cultivation; Mixed-light; Large.
  • Type 6 = Manufacturer 1.
  • Type 7 = Manufacturer 2.
  • Type 8 = Testing.
  • Type 10 = Retailer.
  • Type 11 = Distributor.
  • Type 12 = Microbusiness.
• All licenses are valid for 12 months, and must be renewed annually
• A separate license is required for each location where the applicant operates
• A single recreational cannabis business can obtain multiple licenses of different types,
• The exception is that an entity holding a license for testing is prohibited from holding any other license
• The same business can hold both recreational and medicinal licenses
• A recreational cannabis business cannot also be a licensed retailer of alcohol
• No cannabis business can be located within 600 feet of a school or daycare center (although this can be increased or decreased by local ordinances)
• Until December 19, 2018, an applicant must demonstrate five years of continuous California residency to be eligible for a license
• Licensing Authorities will give priority to applicants that can demonstrate they operated in compliance with the Compassionate Use Act prior to September 1, 2016, or is currently in compliance with the Medical Cannabis Regulation and Safety Act (MSCRA)
• Regulations governing commercial cultivation will be issued and enforced by the State Department of Food and Agriculture
• Regulations governing commercial manufacturing will be issued and enforced by The Department of Public Health

Product and Labeling Requirements

• Recreational cannabis and cannabis products cannot be sold to anyone under the age of 21
• Medical cannabis can be sold to persons 18 and older who possess a valid identification card
• All cannabis and cannabis products must be sold in child resistant packaging and display a specific government warning in bold letters
• Cannabis products cannot contain more than 10 milligrams of THC per serving
• Edible cannabis products must be divided into standardized serving sizes, and producers must ensure uniform distribution of THC and other cannabinoids throughout the product
• All cannabis and cannabis products for sale must contain a label stating the manufacture and/or cultivation date, source, and net weight of the cannabis contained in the package
• The labeling of all cannabis and cannabis products must list the pharmacologically active ingredients and the amount of such ingredients per serving and per package
• The labeling of all cannabis and cannabis products must list any solvents, nonorganic pesticides, herbicides, and fertilizers that were used during cultivation and manufacturing
• Labeling for cannabis products must comply with all other state and federal nutritional labeling requirements

Local Regulations

• Local governments can enact their own zoning, land use, licensing, and other reasonable requirements
• Local governments can ban any and all forms of commercial cannabis activities
• Local governments can allow cannabis to be smoked and ingested on the premises of a retailer if access is restricted to those 21 years of age or older, cannabis is not visible from a public place, and no alcohol or tobacco are served

Taxes

• Retail sales of cannabis and cannabis products are subject to a state excise tax of 15% of gross receipts
• Cannabis cultivation is subject to a state tax of $9.25 per dry-ounce weight of cannabis flowers, and $2.75 per dry-ounce weight for leaves (these amounts are subject to adjustment and categories can be added or changed by the state)
• Cities and counties can enact and collect their own taxes on commercial cannabis activity in addition to the taxes established by the state

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