Dutchie does not provide compliance advice. Merchants are responsible for their own compliance. External Dutchie compliance documentation may be updated from time to time and has been prepared for informational purposes only, is not intended to provide, and should not be relied on for, tax, legal or compliance advice. Merchants should consult their own tax, legal and compliance advisors to determine how best to operate within the cannabis industry.
In California, cannabis is regulated by the Department of Cannabis Control (DCC). Medical and adult-use cannabis are allowed.Β
California uses Metrc as their state traceability system. In California, medical and adult-use cannabis inventory are shared.
While CA does not have equivalent limits, the category of cannabis concentrate is shared between many product types.
Taxes are overseen by the California Department of Tax and Fee Administration.Β They have built an excellent guide for cannabis taxes. Cannabis in California is potentially subject to local taxes, the state excise tax, and state sales tax.
Retailers and non-storefront retailers may conduct deliveries in CA.Β Municipalities may restrict delivery within their limits.
California allows for extra inventory to be carried so a driver may be dispatched from the road.
A licensed retailerβs delivery employee shall not carry cannabis goods in the delivery vehicle with a value in excess of $10,000 at any time. This includes both inventory associated with an order and that available for order.
Retailers may only deliver to physical addresses. Deliveries cannot be made on public land, or in buildings leased by a government agency.Β Schools and childcare centers are additionally prohibited.
All vehicles must have GPS.Β
Retailers must keep a detailed delivery log and update it after each sale.
The DCC makes their current and proposed rules public at this site.
All applications (except for ROD and ROND licensees) must be accompanied by a non-refundable application fee of $1,000. Additional license fees are imposed prior to the issuance of a final license. If the applicant qualifies as a social and economic equity applicant, then a 50% reduction, waiver, or deferred fee will apply. Other reductions, waivers, or fee deferrals may be approved by the Board for those demonstrating sufficient need.Β
Application review for the AUCC, AUCP, and CAURD applications takes approximately 4 to 8 weeks, per the Office. After the Office reviews and processes your application, if it meets the requirements, it will then be presented to the Board for final approval. Applicants may only begin adult-use cannabis activities upon final license approval from the Board.Β
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For the non-conditional adult-use application round opening on October 4, OCM has indicated that it would begin reviewing those retail and microbusiness applications with site control as early as November 3, with no set timeline for ultimate license issuance.
The short answer is that there are no caps on total number of licenses in the Cannabis Law. Weβve seen hundreds of AUCP and AUCC licenses issued to date. For CAURD licenses, whereas the Board initially only planned to issue 150 total licenses, they then agreed to double that number to 300, and then exceeded that number thereafter.Β
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That being said, the Board and the Office may limit the total number of applications in a few different material ways. For instance, they may limit licenses by location or authorized regions (as they have done in the CAURD application round), size of operation or output, or other operating conditions, dependent on issues related to sustainability, public health and safety, and social and economic factors.Β
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For the application round opening on OCtober 3, OCM has indicated that it intends on issuing more than 1,000 total licenses, estimated to be broken down as follows:
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Given that New York has now held three (3) distinct adult-use application rounds (AUCC, AUCP, and CAURD), it should be noted that those three (3) applications were notably consistent. The applications are hosted on the New York Business Express website, which is largely user friendly, though subject to crashes on high volume days (such as the final date for submission of the CAURD applications).Β
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The proposed adult-use regulations identify similar areas of information for the forthcoming license opportunities, including:Β
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For the application period opening on October 3, the Office will initially review:
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As it relates to final licensure, the Office will assess, among other things:
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