It’s important to remember that cannabis laws in California are nuanced. Those looking to start marijuana-related businesses need to understand that various laws may apply differently, depending on the type of business, the location and numerous other factors. While both medical and recreational marijuana are legal at the state level in California, this doesn’t mean all business owners must follow the same set of rules. There is no one-size-fits-all approach.
For example, cannabis businesses need the proper state license, but there are different license types, including those for:
- Cannabis retail centers or microbusinesses
- Distribution centers
- Laboratories for testing cannabis products
- Manufacturing centers
- Farms used for cannabis cultivation
Additionally, cities and counties can set their own rules regarding the types of businesses they allow or prohibit. A county may prohibit the sale of cannabis through dispensaries or retail businesses while allowing agricultural businesses to grow cannabis for sale elsewhere.
Navigating a complex system
Another important thing to remember is that the majority (about 54%) of counties in California still prohibit all cannabis business types. Despite legalization of the drug, this doesn’t mean people have free rein to open any type of business they wish. They must still check local zoning regulations, apply for the correct license and meet other requirements.
This creates a complex system with a web of interrelated laws. Business owners need to understand exactly what legal steps are necessary to navigate this process, and it can help to work with an experienced legal team. It is very important to take the correct steps up front and to know how to address any potential disputes with local authorities.