The document summarizes various laws and regulations regarding cannabis in California, including: 1) Personal use laws which allow adults 21+ to possess up to 1 ounce and grow up to 6 plants for personal use, but prohibit public consumption. 2) Licensing requirements are divided between the California Department of Food and Agriculture for cultivation, the Department of Public Health for manufacturing, and the Bureau of Cannabis Control for retail/delivery. 3) Cultivation licenses vary based on canopy size from specialty cottage to medium, with annual fees ranging from $1,205 to $77,905. 4) Manufacturing and distribution licenses also have tiers based on revenue, with fees from $2,000 to $

1. Federal Law vs. State Law

2. Personal Use
• 21 for Adult-Use
• Minors who violate the law will be required to complete 4 hours of drug-education
program or counseling, and up to 10 hours of community service.
• No Public Consumption
• Fine of up to $100, and up to $250 where tobacco smoking is prohibited, or within
1,000 feet of a school, daycare center or youth center where children are present.
• 28.5 grams or 1 ounce limit
• Grow up to 6 mature or 12 immature marijuana plants for personal recreational use.
• (If you are a qualified patient or a primary caregiver to a qualified patient, you can
continue to cultivate in an indoor fully-enclosed area up to 400 sq. ft. for medical
use but subject to conditions specified under the City of Sacramento’s Health and
Safety Code, Title 8, pertaining to the cultivation of medical marijuana.)
• Edible marijuana products can only contain 10 milligrams of THC
• You cannot take marijuana across state lines.
SOURCE: http://www.cityofsacramento.org/Finance/Revenue/Sacramento-Marijuana-Information/Personal-Use

3. Cannabis DUI

4. Banking
🤷🤷♂️

5. Dual Licensing System
• Cultivation: California Department of Food & Agriculture
• Manufacturing: California Department of Public Health,
Manufactured Cannabis Safety Branch
• Retail/Delivery, Distribution, Testing, Events, and Microbusinesses:
California Bureau of Cannabis Control

6. Cultivation License Types(a) Specialty Cottage:
• (1) “Specialty Cottage Outdoor” is an outdoor cultivation site with up to 25 mature plants.
• (2) “Specialty Cottage Indoor” is an indoor cultivation site with 500 square feet or less of total canopy.
• (3) “Specialty Cottage Mixed-Light Tier 1 and 2” is a mixed-light cultivation site with 2,500 square feet or less
of total canopy.
(b) Specialty:
• (1) “Specialty Outdoor” is an outdoor cultivation site with less than or equal to 5,000 square feet of total
canopy, or up to 50 mature plants on noncontiguous plots.
• (2) “Specialty Indoor” is an indoor cultivation site between 501 and 5,000 square feet of total canopy.
• (3) “Specialty Mixed-Light Tier 1 and 2” is a mixed-light cultivation site between 2,501 and 5,000 square feet of
total canopy.
(c) Small:
• (1) “Small Outdoor” is an outdoor cultivation site between 5,001 and 10,000 square feet of total canopy.
• (2) “Small Indoor” is an indoor cultivation site between 5,001 and 10,000 square feet of total canopy.
• (3) “Small Mixed-Light Tier 1 and 2” is a mixed-light cultivation site between 5,001 and 10,000 square feet of
total canopy.
(d) Medium:
• (1) “Medium Outdoor” is an outdoor cultivation site between 10,001 square feet and one acre of total canopy.
• (2) “Medium Indoor” is an indoor cultivation site between 10,001 and 22,000 square feet of total canopy.
• (3) “Medium Mixed-Light Tier 1 and 2” is a mixed-light cultivation site between 10,001 and 22,000 square feet
of total canopy.
(e) “Nursery” is a cultivation site that conducts the cultivation of cannabis solely as a nursery.
(f) “Processor” is a cultivation site that conducts only trimming, drying, curing, grading, packaging, or labeling of
cannabis and nonmanufactured cannabis products.

7. Cultivation Annual Application Fees
• (a) Specialty Cottage Outdoor--$135
• (b) Specialty Cottage Indoor--$205
• (c) Specialty Cottage Mixed-Light Tier 1--$340
• (d) Specialty Cottage Mixed-Light Tier 2--$580
• (e) Specialty Outdoor--$270
• (f) Specialty Indoor--$2,170
• (g) Specialty Mixed-Light Tier 1--$655
• (h) Specialty Mixed-Light Tier 2--$1,125
• (i) Small Outdoor--$535
• (j) Small Indoor--$3,935
• (k) Small Mixed-Light Tier 1--$1,310
• (l) Small Mixed-Light Tier 2--$2,250
• (m) Medium Outdoor--$1,555
• (n) Medium Indoor--$8,655
• (o) Medium Mixed-Light Tier 1--$2,885
• (p) Medium Mixed-Light Tier 2--$4,945
• (q) Nursery--$520
• (r) Processor--$1,040

8. Cultivation Annual License Fees
• (a) Specialty Cottage Outdoor--$1,205
• (b) Specialty Cottage Indoor--$1,830
• (c) Specialty Cottage Mixed-Light Tier 1--$3,035
• (d) Specialty Cottage Mixed-Light Tier 2--$5,200
• (e) Specialty Outdoor--$2,410
• (f) Specialty Indoor--$19,540
• (g) Specialty Mixed-Light Tier 1--$5,900
• (h) Specialty Mixed-Light Tier 2--$10,120
• (i) Small Outdoor--$4,820
• (j) Small Indoor--$35,410
• (k) Small Mixed-Light Tier 1--$11,800
• (l) Small Mixed-Light Tier 2--$20,235
• (m) Medium Outdoor--$13,990
• (n) Medium Indoor--$77,905
• (o) Medium Mixed-Light Tier 1--$25,970
• (p) Medium Mixed-Light Tier 2--$44,517
• (q) Nursery--$4,685
• (r) Processor--$9,370

9. Manufacturing
• Edibles and other products
• Annual Application Fee
• $1,000
• Annual License Fee
• (1) For a licensed premises with an annual gross revenue of up to $100,000 (Tier I), the fee shall be $2,000.
• (2) For a licensed premises with annual gross revenue of $100,001 to $500,000 (Tier II), the fee shall be
$7,500.
• (3) For a licensed premises with annual gross revenue of $500,001 to $1,500,000 (Tier III), the fee shall be
$15,000.
• (4) For a licensed premises with annual gross revenue of $1,500,001 to $3,000,000 (Tier IV), the fee shall be
$25,000.
• (5) For a licensed premises with annual gross revenue of $3,000,001 to $5,000,000 (Tier V), the fee shall be
$35,000.
• (6) For a licensed premises with an annual gross revenue of $5,000,001 to $10,000,000 (Tier VI), the fee shall
be $50,000.
• (7) For a licensed premises with an annual gross revenue of over $10,000,000 (Tier VII), the fee shall be
$75,000.

10. Retail
• Storefront vs. Non-storefront
• Delivery
• BC
• Employees
• Annual Application fee
• $1,000
• Annual License Fees:
• Retailer up to 0.5 million--$ 4,000
• Greater than 0.5 million to 1.5 million--$ 12,000
• Greater than 1.5 million to 4.5 million--$36,000
• Greater than 4.5 million--$72,000

11. Distribution
• BB
• 3 “Types”
• Annual Application Fee
• $1,000
• Annual License Fees
• “Full” Distributor
• Up to 2 million--$1,200
• Greater than 2 million to 8 million--$5,000
• Greater than 8 million to 80 million--$36,000
• Greater than 80 million--$125,000
• Distributor Transport Only Self-Distribution
• Up to 2 million--$500
• Greater than 2 million to 8 million--$2,000
• Distributor Transport Only
• Up to 2 million--$800
• Greater than 2 million to 8 million--$2,500

12. Events
• Obtain event organizer license first, then apply for temporary event
license
• Need retail license to sell, distributor license to move product to and
from event etc.
• AB 2020
• Application Fee Schedule
• The application fee for both the temporary and annual event licenses are
$1,000 each.
• Annual License Fee
1) 1-10 events annually--$5,000
2) Greater than l0 events annually--$ 10,000

13. Microbusiness
• At least 3 activities (no testing)
• Annual Application Fee
• $1,000
• Annual License Fees
• Up to 0.5 million-- $5,000
• Greater than 0.5 million to 1.5 million--$15,000
• Greater than 1.5 million to 4.5 million--$42,000
• Greater than 4.5 million--$120,000

14. Step 1: Funding
• Add 20%

15. Step 2: Find a Location
• Always start with the local regulations
• If no ban, make sure the locality has your license type!

16. Step 3: Real Estate
• Check local zoning maps

17. Prior Convictions
• Serious and Violent Felonies
• Crimes involving children

18. Step 4: Temporary Application
• Good for 120 Days

19. Step 5: Annual Application
• Application fee vs. License Fee

20. Step 6: Branding and Intellectual Property