Posts tagged federal and state marijuana laws

The moment cannabis became legal in a wide array of states including California for medical and recreational uses; Cannapreneurs as well as cannabis investors knew the game was changing. This change meant certain laws were enacted to govern and of course, ensure a level playing field for everyone in the industry.

Cannabis Compliance

The moment you’ve been granted a cannabis license in California to retail cannabis, means you are officially a member of the world’s largest legal cannabis trade. Being handed the opportunity to sell cannabis legally in this state or any other state in the US is a lifetime opportunity. This means, you now have the right to retail, distribute, and of course dispense cannabis.

All of which must be done in compliance with every Californian law and regulation applicable. Taking to mind the aforementioned tip, it should be worthy to note that, the moment the license is obtained, your ability to stay compliant with the laws and regulations shouldn’t be neglected. Operating contrary to this is tantamount to losing the license you worked so hard to gain.

California Cannabis Compliance Guide

With that in mind, enclosed below are some of the key California cannabis compliance aspects you’d need to know.

Documentation And Reconciliation of Inventory Requirements

The state of California requires that all legal cannabis retailers record and maintain detailed inventory records. Meaning you must reconcile your inventory physically, along site your internal records at least once every 2 weeks.


Customer Verification as well as Daily Purchase Limits

When it comes to cannabis compliance in California, nothing is for granted. All of which is evident considering you must verify your client's identities and their ages. This must be done to ensure you aren’t dealing minors, because doing so may place you at the wrong side of the law. Like the laws stipulates, Adult-use customers must be 21 or older and must present a valid identification document.

Medical patients or caregivers on the other hand must be 18 or older and must equally present a valid identification document. Unlike Adult-use customers, Medical patients or caregivers must present a recommendation from a certified physician.

Always Track and Trace All Reporting Requirements

Tagged as “seed to sale” reporting, track and trace reporting is a key cannabis compliance aspect in California. This method of cannabis compliance gives access to the state to monitor the cultivation, processing, transportation, and sales of every cannabis plant. With the aid of Metrc (MED Marijuana Inventory Tracking System), the whole process is made easy and stress-free.

Metrc Reporting

Once you’ve successfully created and had your account setup in Metrc, then you can either report your daily activities manually or automatically. With manual reporting, you’d be required to log in daily into your Metrc account. Specifically at the end of every business day, to input and or record all data from the different transactions carried out. With automated reporting, you’d have to use certain cannabis-related retail software solutions.

Most of which must be integrated with Metrc, to synchronize all data from your store's transactions so they can occur in real-time.

Compiling Reports With No Internet

Should you be faced with situations of this magnitude, which made you lose access to Metrc for daily reporting, endeavor to compile a detailed record of all of the data. When that is done, make sure it is backlogged into Metrc within three days of restored connectivity.

Final Note

Making it big in the legal cannabis trade isn’t all about venturing into the industry with a lot of capital. While capital is essential and tagged as the lifeblood of every business, your ability to make it big in the legal cannabis trade in California depends solely on how much you comply with the laws governing the cannabis trade within the state. Do that and you’d be thrilled with the outcome.


For Cannabis Business Licensing help, call at . We help cannabis business owners navigate the complex world of State and Local Cannabis Regulations while helping to develop and grow your business in the right direction. CAP can assist with projects large or small. Whether you’re looking for full-service state and local cannabis licensing or other services such as Cannabis Pro Forma, Cannabis Business Plan, Cannabis Business SOP, and Cannabis Investor Presentation development, we have you covered.

Requirements for California Cannabis Packaging | 2020
Requirements for California Cannabis Packaging | 2020

The California cannabis regulations require that all product packaging be

• child resistant

• tamper evident

• resealable (if the product has multiple uses).

Packaging for edibles must not only be opaque, but industry manufacturers are forbidden from showing the image of what the edible looks like in order to avoid appealing to children.

In addition, the labeling on the cannabis package may not:

• be attractive to children.

• make health claims.

• use the word “organic,” in violation of federal and state laws.

• use a California county name unless 100% of the cannabis was grown in that county.

It must carry the aforementioned California government warnings — the California Cannabis warning and, if the product contains one of the 900 chemicals currently on the Prop. 65 list, a Prop. 65 warning. Finally, every layer of the packaging must carry what is known, in properly cosmic lingo, as the Universal Symbol — a triangle with the silhouette of a cannabis leaf and an exclamation point.

For Cannabis Business Licensing help, call at . We help cannabis business owners navigate the complex world of State and Local Cannabis Regulations while helping to develop and grow your business in the right direction. CAP can assist with projects large or small. Whether you’re looking for full-service state and local cannabis licensing or other services such as Cannabis Pro Forma, Cannabis Business Plan, Cannabis Business SOP, and Cannabis Investor Presentation development, we have you covered.

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The Latest in Cannabis Banking
The Latest in Cannabis Banking

For years and years, the cannabis industry has had contradicting state and federal cannabis laws. Despite all of the complexities between the two, the industry is looking to take the next steps to bridge the gap. The Safe Banking Act 2019 passed by the House, allows the banking sector to serve cannabis businesses without fear of legal action. This gives cannabis businesses a sense of safety and helps them avoid moving large amounts of cash or be tempted to money launder.

Issues in the cannabis industry and the banking system stem from counteracting existing laws. Cannabis laws are constantly changing in hopes to better the city or state as a whole. But at the end of the day, the muddiness comes from the different set of laws and regulations on a state and federal level. Cannabis may be legal on a state level, but it is illegal on the federal. Cannabis cultivation and possession is still illegal under federal law.

Cannabis being legal at a state level and still illegal on a federal level creates conflicts when it comes to transactions because it is still illegal on highest level. Because of this many banks have stayed away from the cannabis industry.

Many workers in the cannabis industry face adversity and fight for the same rights as other business owners. Hemp companies are just starting to be accepted by the banking sector, but are limited to clothes that are hemp derived and other hemp-based CBD products. Any business or products that contain a trace of THC will not be able to create a deal with the banks.

New 2020 California Cannabis Laws
New 2020 California Cannabis Laws
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New year, new laws, new taxes. Starting January 1st, 2020, two new cannabis laws went into effect. Both laws will change how the legal cannabis business will be taxed. These laws help clarify the state and federal tax laws.

The first of the two bills allows legally licensed cannabis retailers to donate free cannabis to medical patients who have a hard time accessing it through compassionate care programs. This bill was created to help give sick veterans and low-income people access to medical cannabis. Existing retailers must partner with compassionate care programs to dispense the donation of cannabis products to medical patients.

The second of the two bills is called Assembly Bill 37 and works to help equalize the treatment of taxpayers related to the Personal Income Tax Law with the Corporate Income Tax Laws of the state and the federal laws. Commercial cannabis businesses in California are not allowed to claim deductions and credits available to other legal businesses in the state of California due to existing IRS and federal income tax laws. This bill was presented to bring clarity and equality to the tax laws for California businesses involved.

According to the bill's author, Reggie Jones-Sawyer, representing the 59th district; "The cannabis industry has multiple barriers to entry – limited access to banking, compliance with complex state regulations and a high tax burden. In addition to these challenges, the federal government continues to treat our state's legal industry as a criminal activity. Current state law conforms to federal policies that disallow tax deductions for businesses that "traffic" controlled substances, resulting in higher taxes for legal cannabis businesses. Californians voted overwhelmingly to make cannabis a legal enterprise in our state and to benefit from the tax revenue brought in by this new industry. High taxes imposed on legal cannabis products are putting the legal industry at a disadvantage in competing with the illicit market, which results in less tax revenue for the state. AB 37 will ensure that cannabis businesses are taxed like any other legal industry in our state and will help legal businesses thrive in California." 

The support for the bill included the sponsor of the bill, California Cannabis Industry Association, along with other groups including; CMG/Caliva, Osiris Ventures dba NorCal Cannabis, Rural County Representatives of California, Southern California Coalition, and State Treasurer Fiona Ma.