BREAKING NEWS: California Passes SB 94 Regulating Medicinal and Adult Use Cannabis

California Cannabis Law Senate Bill 94
California just came out with its Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”)

The California Legislature today passed Senate Bill 94, which effectively repeals the Medical Cannabis Regulation and Safety Act (“MCRSA”) and incorporates certain provisions of the MCRSA in the licensing provisions of the Control, Regulate, and Tax Adult Use of Marijuana Act (“AUMA” aka Proposition 64). As we’ve covered extensively, draft rules for the MCRSA dropped in late April, but speculation has been rampant that the state would integrate the rules for both medicinal cannabis (MCRSA) and adult use cannabis (AUMA). SB 94 does just that by creating the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”).

Here are 10 of the most important highlights of today’s bill:

  1. The governing bureau will now be the Bureau of Cannabis Control (“the Bureau”).
  2. The types of licenses available for commercial adult-use cannabis activity and commercial medicinal cannabis activity will be the same. The licenses available under both the MCRSA and the AUMA will continue to be available for both kinds of activity, and for specialty cottage cultivation licenses and microbusiness licenses, and, commencing on January 1, 2023, licenses for large outdoor, indoor, and mixed-light cultivation will also be available for both medicinal and adult-use cannabis activity.
  3. Producing dispensary and transporter licenses will not be available.
  4. Quality assurance, inspection, and testing requirements of cannabis and cannabis products prior to retail sale will change. Distributors will be required to store cannabis batches on their premises during testing, testing lab employees will be required to obtain samples for testing and transport those samples to testing labs, and distributors will be required to conduct a quality assurance review to ensure compliance with labeling and packing requirements, among other things.
  5. Though the MCRSA limited the combinations of medicinal cannabis licenses a person may hold until January 1, 2026, the MAUCRSA will not apply these limits (other than that testing laboratory licensees are prohibited from obtaining licenses to engage in any other commercial cannabis activity);
  6. The residency requirements of the AUMA are repealed. In other words, out of staters and even residents of other countries can freely participate.
  7. Additional advertising requirements, including regulation of online advertising and the creation of a universal symbol for edible cannabis products will be implemented.
  8. The cannabis excise tax will be measured by the average market price (as defined) of the retail sale, instead of by the gross receipts of the retail sale.
  9. Applicants for cultivation licenses will need to identify the source of water supply.
  10. The Bureau will no longer have the authority to regulate and control industrial hemp.

The above is only a rough summary of the new legislation. We will be breaking down the details in the coming days so stay tuned.

10 responses to “BREAKING NEWS: California Passes SB 94 Regulating Medicinal and Adult Use Cannabis”

  1. For those of us not interested in corporate control, profiteering, commercialization and continued government prohibition. How will this effect those who want to individually or cooperatively cultivate this weed for personal use, not for sale.

  2. As long as there are federal laws against weed all of California’s licensing and taxation crap is unconstitutional because it requires people to incriminate themselves,(United States v. Leary (1969).

  3. Can you clarify Section 63 26090(e). I understand local jurisdictions cannot prohibit delivery drivers on their local public roads, but can they still prohibit deliveries to residences in their jurisdiction?

  4. had been looking into the feasibility of operating a cannabis extraction business, securing an Ag loan to finance the equipment but with all this CA shooting itself in the foot AGAIN it doesn’t look promising for now. The whole nonsense of legalizing marijuana is ridiculous. They were spending MILLIONS on illegal grow enforcement, NOW its MILLIONS more to enforce LEGAL growing operations. Big brother has had a greedy change of heart now that they can get a cut of the action while encroaching further into our lives by controlling more and more of every single thing citizens do. If someone came to your door to insert a tracking device on you, you’d go for the second amendment remedy. but nobody thinks anything about the MASSIVE spying intrusion smart phones created. Such hypocrisy.

  5. This is very confusing, so if you have a medical recomendation is it still a worthwhile legal defense for growing more than 6 plants? What about small cooperatives can I grow say 24 plants with 4 six plant reqs and still defend myself on that basis?

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