Estabilishing a Legal Cannabis Business – What To Know

Estabilishing a Legal Cannabis Business – What To Know

September 27th, 2018 // 2:19 pm @

Cannabis is a big business in the US states that have made its recreational use legal, even though it is still defined at the federal level as a Schedule 1 controlled substance. The US government generally is not intervening in the states that allow legal cannabis businesses. However, its cloudy legal status at the federal level creates some legal issues and a future that is uncertain.

States that are allowed recreational marijuana use have created their own regulations for companies that want to break into this business. Other states will probably follow, and this may prompt additional federal action in the future.

One of the most active states in the legal cannabis business is California. In 2016, voters in the state greenlit the Adult Use of Marijuana Act. It made it legal for people 21 and over to buy, possess and consume up to one ounce of marijuana in their home or in a licensed establishment. However, the unlicensed sale of marijuana is still a crime that is punishable by up to 180 days in county jail or a fine of $500. Selling marijuana with no license also can get you a civil penalty that is up to three times the amount of the fee for the license for every violation. The Bureau of Cannabis Control is the top agency that is devising regulations for medical and adult use marijuana. Be aware that a local city and county license is required, and a state license is not going to be issued if it is in violation of local regulations.

Business licenses in the cannabis industry in California that are legal are cultivation facilities, manufacturers, testing facilities, retailers, distributors and microbusinesses. There is no requirement of California residency for a state license, but cities and counties have the option of imposing resident requirements for local licenses. A license can be denied to people who have been convicted of serious/violent felonies.


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