CALIFORNIA CANNABIS REGULATIONS
Cannabis is a highly regulated industry. Cannabis business regulations in California exist at both the state level and the local county and city level. Local jurisdiction regulations and laws vary as each county and incorporated city has the authority to independently regulate cannabis businesses or even ban them. In fact, most California cities and counties still ban all cannabis businesses. About 46% of cities and counties do allow at least one type of cannabis business.
Cannabis businesses require legal counsel at all stages including setting up the business, leases, zoning, getting through the local land use process including conditional use permits and development agreements, obtaining state and local cannabis licensing and permits, regulatory compliance with state and local laws and regulations, appealing license/permit denials or discipline, administrative hearings, and litigation when necessary.
State cannabis regulations are adopted by the California Department of Cannabis Control (DCC) which was established in 2021 pursuant to a budget trailer bill (AB 141) passed by the California Legislature which, among other things, consolidated the then existing state cannabis regulatory and licensing authority that was previously split between the California Department of Food and Agriculture (CDFA), the California Department of Public Health (CDPH) and the former California Bureau of Cannabis Control (BCC).
The Department of Cannabis Control consolidated the cannabis regulations from those three agencies into one set of regulations. The consolidated state cannabis regulations can now be found in the California Code of Regulations ā Title 4, Division 19. (Regulations regarding the Cannabis Appellations Program and OCal Program are in Title 3, Division 8.) State cannabis regulations apply to cannabis cultivators, retailers, manufacturers, distributors, testing laboratories, microbusinesses, and temporary cannabis events.
Cannabis regulations adopted by the Department of Cannabis Control must be consistent with the purposes and intent of the Medicinal and AdultāUse Cannabis Regulation and Safety Act (MAUCRSA) contained in Division 10 of the California Business and Professions Code (section 26000 et seq.). For example, on November 17, 2020, a California court determined that a cannabis regulation regarding cannabis billboard advertising was invalid because it was inconsistent with the statute that the regulation was intended to implement.
Regulations adopted by the DCC follow the rulemaking procedures and standards established by theĀ California Administrative Procedure Act (California Government Code section 11340 et seq.) including a review of proposed regulations by the Office of Administrative Law (California Code of Regulations, Title 1).
Cannabis and hemp are currently regulated in separate supply chains and cannabis licensees are generally not authorized to engage in hemp activities on their licensed cannabis premises, except that on October 2, 2025, the California Governor signed Assembly Bill 8 regulating intoxicating hemp products and integrating them into the stateās cannabis regulatory framework.
Cannabis use, possession, and distribution remains illegal under federal law pursuant to 21 U.S.C. Ā§ 801 et seq.
State and local (city & county) cannabis laws and regulations vary and change frequently. Need guidance staying compliant with cannabis regulations and laws? We advise on regulatory requirements and provide updates on changes to laws and regulations.
Contact us by phone or email to learn more about California government law including California cannabis law, state, county or city cannabis licensing and cannabis regulations, regulatory compliance, litigation, and hemp laws.