| California, with over 39 million residents, is likely the world’s largest cannabis market. However more than in other jurisdictions non-legal cannabis continues play a large role in the state due to its long history and reputation for quality. | |
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| Legalization Dates: | Medical: 1996 via the Compassionate Use Act of 1996 (Proposition 215) Adult-Use: 2016 via the Adult Use of Marijuana Act (Proposition 64) |
| Relevant Legislation: | Summary of California Dispensary Laws (COVA) |
| Regulatory Bodies: | Department of Cannabis Control |
| Licensing Model: | Many types and sizes of state licenses. Freeze on new large cultivation licenses until Jan 1, 2023 |
| Example Firms: | Cresco (multi-state operator), KushCo Holdings (ancillary products), Eaze (delivery), Medmen (multi-state operator), Harborside Health Center (California), Mercy Wellness of Cotati (Northern California), CannaCraft (California, CEO interview) |
| Industry Associations: | California Cannabis Industry Association (CCIA), Southern California Coalition (SCC), California Cannabis Manufacturers Association (CCMA), Cannabis Travel Association (CTA), Cannabis Distribution Association (CDA), |
| Market Size & Characteristics | California’s market hit $4.4B in sales in 2020. The market is projected to hit $7B by 2025 as local jurisdictions ease restrictions and consumer demand continues to increase. Eaze “State of Cannabis 2020” report. Regulators in California have struggled to curb illicit marijuana operators for a variety of reasons. |
| Articles: | California’s Cannabis Market at a Crossroads (Cannabis Business Times, June 10, 2022) Here are the rules for legal marijuana in California once the law goes into effect Jan. 1 (Mercury News, Dec 4, 2018) California Drops Proposed Permanent Cannabis Regulations (Cannalawblog, July 16, 2018) |
| As of June 15, 2022 |
An academic perspective on the emerging legal industry in the U.S., Canada and beyond by Prof. Paul Seaborn, McIntire School of Commerce, University of Virginia.
Business of Marijuana 