Update on California's upcoming cannabis regulation
California's cannabis regulations were recently released, but each local government seems to be in different stages of sorting out their regulations. Here's what we know so far about how the process is going for adult-use cannabis businesses and what they have to work through to meet the January 1, 2018 launch date.
California cannabis businesses are ramping up efforts to regulate and streamline their efforts as the big launch date draws near. While state-level laws are crucial to the health of cannabis businesses, local magistrates are key to how the California cannabis industry will develop.
Currently, California is testing their online licensing system to ensure there are no bugs that could potentially pop up during this process. California cannabis regulators will start to hand out temporary business licences to existing companies starting January 1 — licenses that will expire after 120 days. This will allow current businesses to continue operating without interruption while they go through the process to get a full state license.
At the local level
The state is also asking local governments for updates on where each municipality and county stands in the process of establishing local regulations. California's 58 counties and 480 cities seem to be in different stages of the process — with some further along than others.
Some areas, such as Berkeley, Oakland, Sacramento and Desert Hot Springs may be the first cities to legalize adult-use cannabis. Also, consider the state's goal of not disrupting medicinal cannabis businesses — those companies should have a faster route for licensing.
There will be no state limits on licenses, but it won't be a surprise if local governments create caps. Additionally, licenses will be categorized as either medicinal or adult-use, and will be separated into the state's track-and-trace system.
Don't forget that there are a number of different cultivation licenses that will be granted by the state — 17, in fact. These start small, with 25-plant speciality cottage outdoor licenses, and go up according to business size.
CONTACT CCA TODAY TO MAKE SURE YOU'RE READY FOR THE TAX REGULATIONS GOING INTO EFFECT ON JANUARY 1, 2018.