When voters approved the Compassionate Use Act in 1996, California became the first state to legalize the use of cannabis for medicinal purposes. Cannabis is now acceptable for adult (recreational) and medicinal use in California.

The cannabis sector is heavily controlled to ensure:

• Businesses run securely.
• Goods are free of contaminants and clearly labeled to let buyers know
• Cannabis is kept away from children.

Together, statutes, regulations, and ordinances comprise the legal framework that establishes guidelines for businesses and consumers.

What do Statutes, Regulations, and Ordinances Mean?

Statues: The state legislature drafts and passes statutes, which the governor then signs into law. They establish general guidelines that are applicable to all residents of the state.

Regulations: A state agency’s regulations are guidelines that clarify and further define a statute. Regulations are state-wide in effect, just like statutes. Regulations that are relevant to cannabis businesses are developed by the Department of Cannabis Control (DCC).

Ordinances: Cities and counties enact ordinances to establish even more detailed regulations for the community. They determine the hours, locations, and modes of operation that a business or a resident may use. An ordinance is only valid in the county or city in which it was enacted. Statutes and regulations can be more general than ordinances, but ordinances cannot be used in opposition to them. Find out if your county and city have approved any cannabis-related ordinances by contacting them.

Regulations

It’s critical that you comprehend DCC regulations if you manage, work for, or intend to launch a cannabis business.

Statutes

The main statute for cannabis businesses is in the Business and Professions Code. The Medicinal and Adult Use Cannabis Regulation and Safety Act (MAUCRSA) is the name of this legislation. A foundational framework for cannabis business licensing, supervision, and enforcement is established by MAUCRSA.

Businesses operating in the cannabis industry are subject to the same regulations as other businesses operating in California, in addition to laws unique to the industry. For instance, the statutes contain regulations pertaining to tax payment, vehicle registration, environmental protection, and waste disposal.

In California, there are also laws that establish guidelines for cannabis users. Cannabis is covered in the Health and Safety Code in the following ways:

• Regulations to prohibit the sale of cannabis to anyone younger than 21
• Restrictions on the amount of cannabis a person may possess at once
• Requirements for medicinal marijuana

DCC regulations

DCC creates laws pertaining to cannabis companies. These rules make clear:

• Things you need to send in to get a license.
• Guidelines for managing a cannabis business.
• What components can be used and what cannot be used to create cannabis products.
• Requirements for packaging to avoid contamination and notify customers about contents.
• The tests every product must pass in order to be sold.
• Enforcement actions that could be conducted in the event that a company violates the regulations.

Equity ordinances

Ordinances for equity programs have been passed in a few Californian cities and counties to assist those harmed by the War on Drugs and foster a more welcoming business environment. Every ordinance provides various forms of support to equity applicants, including:

• Quicker application procedures
• Support throughout the licensing procedure
• Assistance running your business. 
• Direct financial assistance

Approval of Local Jurisdictions for Equity Ordinances

• City of Coachella – Resolution No. 2019-15
• County of Humboldt – Ordinance No. 2623
• City of Rio Dell – Ordinance No. 375-2019
• City of Los Angeles – City of Los Angeles Municipal Code, Ch. 10, Art. 4, Sec. 104.20
• City of Long Beach – Ordinance No. ORD-18-0015
• City of Oakland – Ordinance No. 13504
• City and County of San Francisco – City and County of San Francisco Police Code, Art. 16, Sec. 1604
• City of Sacramento – Resolution No. 2018-0323
• City of San Jose – Ordinance No. 30234

To find out more about your county’s or city’s equity program, get in touch with the relevant office.