In November 2016, California passed Proposition 64, the Adult Use of Marijuana Act (AUMA), legalizing marijuana use for adults aged 21 and over. The Medicinal and Adult Use Cannabis Regulation and Safety Act (MAUCRSA) went into effect on January 1, 2018, which made legal the sale of cannabis to adults for recreational use. Dispensaries wishing to sell cannabis to customers must follow a host of regulations under the new laws, as do individuals who want to possess and/or grow marijuana for personal use. Read on for details about some of California’s cannabis cultivation and purchase limits, and contact a knowledgeable California cannabis business lawyer with any questions.
Cannabis Cultivation Limits
Although personal use and cultivation of marijuana is legal in California, there are limits. Adults over 21 are allowed to possess up to 28.5 grams of marijuana flower and up to 8 grams of marijuana concentrate. Additionally, adults can have up to 6 living cannabis plants within their private residences for recreational use. No more than 6 plants are allowed per residence at any given time. Patients prescribed medicinal marijuana have higher limits: They may cultivate up to six 6 mature marijuana plants, 12 immature marijuana plants, or more with a doctor’s recommendation.
California issues licenses for cultivation sites for growing larger amounts, for purposes of sale. The applicable code sections set out different licenses for different indoor and outdoor cultivation sites, depending on the square footage of the intended growth space and the type of lighting used. The current available licenses top out at one acre, and the state may only issue a certain number of licenses up to that size. Although licenses for larger cultivation areas exist in the statute, under current law, regulators may not issue cultivation licenses for more than one acre of land until January 1, 2023. The regulations also lay out the standards and procedures a cultivator of marijuana must follow in cultivating cannabis for sale.
Dispensaries must be licensed to sell cannabis, and the licensing fee changes depending on the projected value of the business operation. For business up to $750,000, the license fee is $4,000; between $750,000 – $2.5 million, the fee is $20,000; between $2.5 million and $7.5 million, the fee is $64,000; and for more than $7.5 million, the fee is $120,000.
Dispensary Purchase Limit
Cannabis businesses must adhere to state law regarding individual purchase limits. For individual sales, adults 21 years of age or older with a valid, government-issued ID are able to purchase up to 28.5 grams of marijuana flower and up to 8 grams of marijuana concentrate.
California’s new laws create great business opportunities in the booming cannabis market, yet the above represents only some of the regulations dispensaries must comply with in order to operate. If you are interested in establishing or maintaining a cannabis dispensary in Los Angeles or southern California or have any questions about the legal sale of cannabis, call McReynolds Vardanyan, LLP in Glendale at 818-855-2115 for a free consultation with one of our knowledgeable and successful cannabis licensing attorneys.