Overview of Cannabis Laws in California

California was a pioneer in legalizing medicinal cannabis with the Compassionate Use Act of 1996. Today, cannabis is legal for both medicinal and adult use (recreational) in the state, but the cannabis industry is heavily regulated to ensure safety, prevent contamination, and keep cannabis away from minors.

How Laws Are Structured

California’s cannabis laws come in different forms, including statutes, regulations, and ordinances. These types of laws work together to create a comprehensive legal framework for both businesses and consumers.

• Statutes: Laws passed by the state legislature and signed by the Governor. These laws apply across the entire state and set broad rules for everyone. For example, the Medicinal and Adult Use Cannabis Regulation and Safety Act (MAUCRSA) is the main statute for cannabis businesses.
• Regulations: More specific rules created by state agencies, like the Department of Cannabis Control (DCC). These regulations interpret statutes and provide detailed guidance for cannabis businesses, such as packaging and testing requirements.
• Ordinances: Local laws created by cities and counties that set additional rules, such as where and when businesses can operate. Ordinances can’t contradict state statutes or regulations but can impose more specific requirements.

Statutes

The Medicinal and Adult Use Cannabis Regulation and Safety Act (MAUCRSA) forms the foundation of cannabis law for businesses in California. This statute outlines licensing procedures, business oversight, and enforcement policies. It also includes statutes for environmental protection, waste disposal, and taxes that apply to all businesses in the state, including cannabis businesses.

For individuals, California’s Health and Safety Code sets rules regarding:

• Age restrictions (21 and over for adult use)
• Possession limits
• Medical cannabis regulations

Regulations for Cannabis Businesses

If you plan to operate or work for a cannabis business, it’s essential to understand the DCC’s regulations, which include:

• Licensing requirements
• Rules for cannabis product ingredients and packaging
• Testing standards that products must meet before being sold
• Enforcement actions for businesses that don’t comply with the rules

Equity Ordinances

Several California cities and counties have established equity programs to assist individuals disproportionately affected by the War on Drugs. These equity ordinances offer support like faster application processing, help during the licensing process, and direct financial assistance.

Cities and counties with equity ordinances include:

• County of Humboldt
• City of Coachella
• City of Los Angeles
• City of San Francisco
• City of Oakland, among others

To learn more about equity programs in your area, contact your local government office.