The New Normal

Well here we are! Its a jumble of new rules and regulations that quite alarming for all of us. Farmer to consumer are all new at this legal game. We are going to do our best to keep you informed as new information comes our way.

For now, here are some things to digest:

1. Adult use of cannabis is legal in California under Prop. 64, the Adult Use of Marijuana Act (AUMA), approved by the voters on Nov 8, 2016. In general, AUMA allows adults 21 and over to possess, privately use, and give away up to one ounce of cannabis, and to cultivate no more than six plants for personal use at their residence. It also legalizes the commercial sale, distribution and production of cannabis for adult use at state-licensed facilities beginning January 1, 2018, under terms spelled out in the Medical and Adult Use of Cannabis Regulation and Safety Act (MAUCRSA) approved by the legislature in 2017. Local city and county governments can restrict or ban cannabis businesses in their jurisdiction.
2. Cannabis remains legal for medical use by patients of all ages who have a physician's recommendation under California's 1996 medical marijuana law, Prop. 215. Prop 215 affords somewhat broader rights to possess and cultivate for personal use than AUMA. Prior to AUMA, the sale, production and distribution of medical cannabis by so-called patients' collectives was authorized in loose terms under a law known as SB 420 (2004). However, SB 420 collectives will be phased out and subsumed in the state regulation and licensing system beginning in 2018.
3. The Bureau of Cannabis Control in the Dept. of Consumer Affairs is in charge of licensing and regulating retail sales, distribution, and testing; the Dept. of Food and Agriculture is in charge of cultivation; and the Dept. of Public Health is in charge of manufacturing. Prior approval by local city or county governments is required for all state-licensed facilities. Further info on state regulations may be found at the California Cannabis Portal.
   
   

Legal Adult-Use Activities
Under AUMA it is LEGAL for any adult 21 or over to:

1. Possess, process, transport, purchase, obtain, or give away to persons 21 or older, not more than one ounce of cannabis or 8 grams of concentrated cannabis.
2. Cultivate, possess, plant, harvest, dry or process not more than six live plants and possess the produce of the plants
   PROVIDED:
   (a) Any cannabis in excess of one ounce is stored in the person's private residential property, in a locked space, and not visible from a public place. 
   (b) No more than six plants are planted at any one residence at one time.
   (c) Local governments may impose reasonable restrictions on cultivation, but may not forbid cultivation indoors in a residence or accessory structure that is fully enclosed and secure. Locals are free to prohibit outdoor cultivation altogether until such time as adult use is made legal under federal law. 
   
   Violation of restrictions on personal use cultivation is a $250 infraction for six plants or
   Prohibited Activities
   Under AUMA, Cannabis users may NOT 
   •Smoke, vaporize or ingest cannabis or cannabis products in any public place ($100 infraction). 
   Exception: local governments may permit on-site consumption at state-licensed premises in their jurisdiction
   • Smoke or vaporize cannabis in any non-smoking area, or within 1,000 feet of a school, day care or youth center while children are present, except privately at a residence. ($250 infraction)
   • Consume cannabis or possess an "open container" of cannabis while driving or riding as a passenger in any motor vehicle, boat, or airplane ($250 fine).
   Exception: consumption by passengers may be permitted in commercial vehicles specifically licensed for such purposes without children present. 
   • Possess or use cannabis on the grounds of a school, day care or youth centerwhile children are present. ($100 fine).
   • Manufacture concentrated cannabis with a volatile solvent (except for state-licensed manufacturers). Volatile solvents include explosive chemicals like butane but not ethyl alcohol.
   AUMA does not repeal, affect or preempt:
   
   • The rights of employers to maintain a drug and alcohol-free workplace, or to have policies forbidding use of cannabis by employees
   • The ability of landlords and other private parties from prohibiting or restricting use of cannabis on their privately owned property
   • The ability of government agencies to prohibit or restrict use of cannabis within a building they own or occupy
   
   ​Rights of Prop 215 Medical Users
   California's medical cannabis laws under Proposition 215 remain in effect under AUMA. Prop 215 gives patients and their designated primary caregivers the right to possess and cultivate cannabis for their personal medical needs given the recommendation or approval of a California-licensed physician. Because there is no set limit on the amount patients may possess or cultivate, the argument can be made that patients may legally possess more than the one ounce and six plants allowed under AUMA if their medical needs require. Patients who do so should exercise discretion by keeping their stash at home and not carrying more than one ounce in public. There is no age limit on medical use. Minors under age 18 need permission from their parents or guardians to use medical cannabis. Young adults age 18-20 are allowed to visit state-licensed medical dispensaries, but not adult-use ones. 
   
   Patients who have state medical cannabis ID cards are exempt from the sales tax on medical cannabis and cannabis products
   
   How Can I Obtain Cannabis Legally?

• Adults 21 and over can buy cannabis at retail dispensaries with an "A" adult use license as of Jan 1, 2018.
• Medical users 18 and over with a California physician's recommendation can buy at stores with an "M"      medical use license. Some medical cannabis collectives may continue to operate temporarily during the       transition to state licensing, but they must obtain a state license within a year.
• Dispensaries can apply for both "A" and "M" licenses. Some localities are allowing medical sales only, while others are banning both medical and adult-use. Only a limited number of California cities and counties are allowing "A" dispensaries in 2018. 
• Consumers can also have cannabis delivered from licensed type "A" and "M" delivery services.
• Delivery services can operate in regions that don't allow dispensaries, except for a handful of localities that have banned deliveries altogether (the legality of delivery bans is uncertain and may be challenged). 
• It is legal for any adult to buy or receive an ounce of cannabis from another, and to give away up to one ounce without compensation to other adults. Adults can also grow up to six plants at their residence.

Taxes

• Retail sales of cannabis are subject to the standard state sales and use tax of 7.5% - 9.25%.
• Exception: Medical users with a state medical cannabis ID card are exempt from the sales tax for type "M" medical cannabis.
• Many local governments assess additional taxes on cannabis businesses, ranging as high as 10-20% of total revenues.

As of Jan 1, 2018:

• All retail sales of cannabis are subject to an additional 15% excise tax.
• Licensed commercial growers must pay a cultivation tax of $9.25 per ounce on cannabis flowers (or $2.75 on leaf)