The legalization of cannabis in California has been moving forward apace for years now, and as 2018 dawns, California recreational cannabis is finally available to adults in the Golden State.

With new rules on recreational cannabis going into effect and cannabis retail establishments opening at a fast clip, the news is great for individual California cannabis growers as well as enterprises seeking a license to grow cannabis in California.

Recreational use of cannabis became legal in California as of January 1, 2018 after being passed by voters as Proposition 64 back in November of 2016. This act expanded the legal cannabis economy beyond the medical usage already legal within the state.

Businesses and job-seekers have both shown great interest in the emerging industry, which has been estimated at a total value of $5 billion in annual sales. At the same time, legalization is expected to greatly reduce illicit production and sale.

This long-awaited change has raised many questions for entrepreneurs and others.

Let’s look at five key facts that you should know:

1) Business Licensing is Still a Long, Complex Process

Businesses hoping to cater to the enthusiastic adult use market will need to obtain a license from the California Bureau of Cannabis Control. No matter where your business is based, you’ll also need municipal permission to launch operations to open a dispensary in California.

Here’s Additional Information on How to Open a Dispensary


2) Boutique Approaches Are Expected to Soar

California does not yet allow recreational users to smoke in public places. That said, most market watchers believe it only a matter of time before well-organized lounges and showrooms supplant traditional “way out” ideas about how cannabis retail should look and feel.

3) Medical Usage Will Remain in Place

Medical cannabis users will continue to be licensed and have access to specialized care. Patients can expect products with higher concentrations of active ingredients like THC, more lenient home growing rules, and permission to keep larger amounts of cannabis at home.

4) Most Businesses Will Be “A” or “M”

Throughout the supply chain, cannabis producers will be licensed to serve either the adult (A) use (recreational) or medical (M) cannabis market. Retailers will still have the opportunity to serve both markets. Patients will be able to access cannabis at 18; recreational users must wait until 21.

5) Taxation Will Be Substantial

Not surprisingly, cities throughout California are alert to the potential of cannabis to provide an often much-needed cash injection to the public coffer. The state as a whole stands to gain $1 billion in tax revenue, and businesses must be scrupulous about compliance.

In California and throughout the United States., American Cannabis Company helps businesses succeed with expert cannabis industry consulting. Our team has unparalleled startup and licensing expertise. For a personalized consultation, contact us today.


Featured Image Credit: Adam J Chan/