What Retailers Need to Know

(a) A licensee and their designated account manager(s) shall:

(1) Designate track and trace system users, as needed, and require the system users to be trained in the proper and lawful use of the track and trace system before the users are permitted to access the track and trace system;

(2) Maintain an accurate and complete list of all of the licensee's track and trace system users, including full names and usernames, and update the list immediately when changes occur;

(3) Remove a user from the licensee's track and trace system account when that individual is no longer authorized to represent the licensee;

(4) Correct any data entry errors within three (3) calendar days of discovery of the error;

(5) Tag and enter all inventory in the track and trace system as required by section 15049;

(6) Monitor all system notifications and resolve all issues identified. The notification shall not be dismissed by an account manager before resolution of the issue(s) identified in the notification;

(7) Notify the Department of any loss of access to the track and trace system that exceeds 72 hours; and

(8) Reconcile the inventory of cannabis and cannabis products on the licensed premises with the track and trace system database at least once every thirty (30) calendar days.

(a) A licensee shall only use plant and package tags provided and distributed by the Department or the Department's designee.

(b) A licensee shall only use plant and package tags assigned in the track and trace system to that licensee and shall not transfer unused tags to any other licensee.

(c) A licensee shall maintain a sufficient supply of tags to support tagging in accordance with this chapter.

(d) Plant and package tags shall be discarded after they are no longer required for use.

(a) For licensees conducting cultivation, manufacturing, distribution, or testing:

(1) A licensee's account manager shall place the initial order of plant or package tags within ten (10) calendar days of initial credentialing into the track and trace system and shall reorder plant or package tags as needed.

(2) The receipt of plant or package tags shall be recorded in the track and trace system within three (3) calendar days of receipt. If ordered plant or package tags are not received by the licensee, the licensee shall notify the Department.

(3) For cultivation licensees, if the Department approves a request for a license designation change pursuant to section 15023(f), the licensee is required to order, apply, and report applicable plant and package tags in accordance with this article.

(a) All cannabis and cannabis products on the licensed premises shall be assigned a plant or package tag, as applicable, except for harvested plants that are being dried, cured, graded, or trimmed, as specified in this division, and recorded in the track and trace system.

(b) Each of the following activities shall be recorded in the track and trace system within 24 hours of occurrence:

(1) Receipt of cannabis or cannabis products.

(2) Rejection of transferred cannabis or cannabis products.

(3) Manufacturing of cannabis or cannabis products.

(4) Use of cannabis or cannabis product for internal quality control testing or product research and development.

(5) Destruction or disposal of cannabis or cannabis products.

(6) Packaging or repackaging of cannabis or cannabis products, except that cultivation licensees shall comply with section 15049.1(b)(5).

(7) Laboratory testing, including testing results.

(8) Sale or donation of cannabis or cannabis products.

(c) The following information shall be recorded in the track and trace system for each activity entered pursuant to subsection (b):

(1) The type of cannabis or cannabis products.

(2) The weight, volume, or count of the cannabis or cannabis products.

(3) The date of activity.

(4) The UID assigned to the cannabis or cannabis products.

(5) The brand name of the cannabis goods.

(6) If cannabis or cannabis products are being destroyed or disposed of, the licensee shall record the following information in the notes section:

(A) The name of the employee performing the destruction or disposal;

(B) The reason for destruction or disposal; and

(C) The method of disposal.

(d) If a package adjustment is used to adjust the quantity of cannabis or cannabis products in the track and trace system, the licensee shall include a description explaining the reason for adjustment.

(e) If a licensee rejects a partial shipment of cannabis goods pursuant to section 15052.1(b), the licensee shall record the partial rejection in the track and trace system.

(a) Prior to delivery to a retailer or microbusiness authorized to engage in retail sales, cannabis and cannabis products shall be labeled and placed in a resealable, tamper-evident, child-resistant package and shall include a unique identifier for the purposes of identifying and tracking cannabis and cannabis products. (b) Packages and labels shall not be made to be attractive to children. (c) All cannabis and cannabis product labels shall include the following information prominently displayed in a clear and legible fashion in accordance with the requirements, including font size, prescribed by the Department of Cannabis Control: (1) The following statements, in bold print: (A) For cannabis flower and uninfused pre-rolls: “GOVERNMENT WARNING: THIS PACKAGE CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.” (B) For manufactured cannabis products: “GOVERNMENT WARNING: THIS PRODUCT CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS PRODUCTS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. THE INTOXICATING EFFECTS OF CANNABIS PRODUCTS MAY BE DELAYED UP TO TWO HOURS. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS PRODUCTS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.” (2) For packages containing only dried flower, the net weight of cannabis in the package listed in both metric and U.S.customary units. (3) Identification of the cultivator or the licensee packaging the product with either its contact number or web address, the date of packaging for retail sale (month/day/year), and the type of cannabis or cannabis product. (4) The appellation of origin, if any (note: the label may not identify the name of a California city or county, unless all the cannabis utilized in the product was grown in that city or county). (5) List of ingredients, including, but not limited to, tetrahydrocannabinol (THC), cannabidiol (CBD), and other cannabinoid content that is 5% or greater of the total cannabinoid content, the THC and other cannabinoid amount expressed as a percentage for flower products. For manufactured products, the cannabinoid content is expressed in milligrams per serving and per package. (6) A warning if nuts or other known food allergens are used. (7) Information associated with the unique identifier issued by the Department. (8) For a medicinal cannabis product sold at a retailer, the statement “FOR MEDICAL USE ONLY.” (9) Any other requirement set by the Department. (10) For edible products, the words “cannabis-infused” or “cannabis infused” must be placed immediately above the product identity in bold type and in a text size larger than the text size used for the product identity.

(a) A licensed retailer shall not sell more than the following amounts to a single adult-use cannabis customer in a single day: (1) 28.5 grams of non-concentrated cannabis. (2) 8 grams of cannabis concentrate as defined in Business and Professions Code section 26001, including cannabis concentrate contained in cannabis products. (3) 6 immature cannabis plants. (b) A licensed retailer shall not sell more than the following amounts to a single medicinal cannabis patient, or to a patient’s primary caregiver purchasing medicinal cannabis on behalf of the patient, in a single day: (1) 8 ounces of medicinal cannabis in the form of dried mature flowers or the plant conversion as provided in Health and Safety Code section 11362.77. (2) 12 immature cannabis plants. (c) Notwithstanding subsection (b) of this section, if a medicinal cannabis patient’s valid physician’s recommendation contains a different amount than the limits listed in this section, the medicinal cannabis patient may purchase an amount of medicinal cannabis consistent with the patient’s needs as recommended by a physician and documented in the physician’s recommendation.

(a) (1) A cannabis excise tax is imposed upon purchasers of cannabis or cannabis products sold in this state at the rate of 15 percent. A purchaser’s liability for the cannabis excise tax is not extinguished until the cannabis excise tax has been paid to this state except that an invoice, receipt, or other document from a cannabis retailer given to the purchaser pursuant to this subdivision is sufficient to relieve the purchaser from further liability for the tax to which the invoice, receipt, or other document refers (2) Each cannabis retailer shall provide a purchaser with an invoice, receipt, or other document that lists separately the cannabis excise tax. Through December 2022, the excise tax is calculated based on the average market price of cannabis or cannabis products sold at retail. Beginning January 1, 2023, the responsibility for collecting and paying the excise tax shifts from distributors to retailers. The cannabis excise tax will remain at 15 percent and will based on gross receipts from the retail sale of cannabis or cannabis products. The 15 percent rate is subject to change on July 1, 2025. Gross receipts include the sales price of the cannabis or cannabis products, after discounts, and all charges related to the sale, such as delivery fees and any local cannabis business tax listed separately on the invoice or receipt provided to the purchaser. Gross receipts do not include sales tax or the gross receipts from the retail sale of any non-cannabis item. The first cannabis retailer excise tax return is due May 1, 2023.

The excise tax imposed is in addition to the sales and use tax imposed by the state and local governments. (e) Cannabis or cannabis products shall not be sold to a purchaser unless the excise tax required by law has been paid by the purchaser at the time of sale. (g) Nothing in this section shall be construed to impose an excise tax upon medicinal cannabis, or medicinal cannabis product, donated for no consideration to a medicinal cannabis patient pursuant to Section 26071 of the Business and Professions Code.

AB195: (10) Existing law requires the distributor to collect the cannabis excise tax from the cannabis retailer and to remit the tax to CDTFA. Under existing law, the cultivation tax and the cannabis excise tax collected by a distributor or a manufacturer and any amount unreturned to the cultivator or retailer that is not tax, but was collected under the representation by the distributor or manufacturer that it was tax, constitute debts owed by the distributor or manufacturer to this state. Existing law deems any tax collected from a cultivator or retailer that has not been remitted to CDTFA a debt owed to this state by the person required to collect and remit the tax. Existing law requires a distributor to obtain a permit from CDTFA and provides that any person required to obtain a permit and who engages in business as a distributor without a valid permit is guilty of a misdemeanor. This bill, beginning on January 1, 2023, would revise and recast the provisions relating to the administration of the cannabis cultivation and cannabis excise taxes. The bill, among other things, would remove the requirement that the distributor collect the cannabis excise tax from the cannabis retailer, and would instead require the cannabis retailer to collect the cannabis excise tax from the purchaser and to remit the cannabis excise tax to CDTFA quarterly. The bill would deem any tax collected by the cannabis retailer, and any amount unreturned to the purchaser that is not tax, to constitute a debt owed to this state by the cannabis retailer, as provided. The bill would authorize CDTFA to require a cannabis retailer to file specified reports with CDTFA with respect to the person’s inventory, purchases, and sales for purpose of administration of the cannabis excise tax, and would authorize CDTFA to examine books and records for these purposes. The bill would require a cannabis retailer to obtain a permit from CDTFA, and would provide that any person required to obtain a permit and who engages in business as a cannabis retailer without a valid permit is guilty of a misdemeanor. By creating a new crime, the bill would impose a state-mandated local program. This bill would provide that an unlicensed person who is required to be licensed under MAUCRSA and who possesses, keeps, stores, or retains for the purpose of sale, or sells or offers to sell any cannabis or cannabis products, is liable for the cannabis cultivation and cannabis excise taxes as if they were the cultivator or purchaser, as specified. The bill would impose an additional penalty in an amount equal to 25% of the amount of tax or $500, whichever is greater. The bill would establish a procedure for relief from the penalty, including a signed statement from the person, and would provide that any person who asserts the truth of any material matter that they know to be false in relation to these provisions is guilty of a misdemeanor. By creating a new crime, the bill would impose a state-mandated local program.

(a) (1) All advertisements and marketing shall accurately and legibly identify the licensee responsible for its content, by adding, at a minimum, the licensee’s license number. (2) A technology platform shall not display an advertisement by a licensee on an Internet Web page unless the advertisement displays the license number of the licensee. (3) An outdoor advertising company subject to the Outdoor Advertising Act (Chapter 2 (commencing with Section 5200) of Division 3) shall not display an advertisement by a licensee unless the advertisement displays the license number of the licensee. (b) Any advertising or marketing placed in broadcast, cable, radio, print, and digital communications shall only be displayed where at least 71.6 percent of the audience is reasonably expected to be 21 years of age or older, as determined by reliable, up-to-date audience composition data. (c) Any advertising or marketing involving direct, individualized communication or dialogue controlled by the licensee shall utilize a method of age affirmation to verify that the recipient is 21 years of age or older before engaging in that communication or dialogue controlled by the licensee. For purposes of this section, that method of age affirmation may include user confirmation, birth date disclosure, or other similar registration method. (d) All advertising shall be truthful and appropriately substantiated. (Amended by Stats. 2017, Ch. 27, Sec. 85. (SB 94) Effective June 27, 2017. Note: This section was added on Nov. 8, 2016, by initiative Prop. 64.) A licensee shall not do any of the following: (a) Advertise or market in a manner that is false or untrue in any material particular, or that, irrespective of falsity, directly, or by ambiguity, omission, or inference, or by the addition of irrelevant, scientific, or technical matter, tends to create a misleading impression. (b) Publish or disseminate advertising or marketing containing any statement concerning a brand or product that is inconsistent with any statement on the labeling thereof. (c) Publish or disseminate advertising or marketing containing any statement, design, device, or representation which tends to create the impression that the cannabis originated in a particular place or region, unless the label of the advertised product bears an appellation of origin, and such appellation of origin appears in the advertisement. (d) Advertise or market on a billboard or similar advertising device located on an Interstate Highway or on a State Highway which crosses the California border. (e) Advertise or market cannabis or cannabis products in a manner intended to encourage persons under 21 years of age to consume cannabis or cannabis products. (f) Publish or disseminate advertising or marketing that is attractive to children. (g) Advertise or market cannabis or cannabis products on an advertising sign within 1,000 feet of a day care center, school providing instruction in kindergarten or any grades 1 to 12, inclusive, playground, or youth center. (h) Publish or disseminate advertising or marketing while the licensee’s license is suspended. (Amended by Stats. 2018, Ch. 923, Sec. 1. (AB 2899) Effective January 1, 2019. Note: This section was added on Nov. 8, 2016, by initiative Prop. 64.) 26153. A licensee shall not give away any amount of cannabis or cannabis products, or any cannabis accessories, as part of a business promotion or other commercial activity. For purposes of this section, the donation of cannabis or cannabis products by a licensee to a patient or the primary caregiver of a patient, pursuant to Section 26071, shall not be considered a business promotion or other commercial activity. (Amended by Stats. 2019, Ch. 837, Sec. 5. (SB 34) Effective January 1, 2020. Note: This section was added on Nov. 8, 2016, by initiative Prop. 64.) 26154. A licensee shall not include on the label of any cannabis or cannabis product or publish or disseminate advertising or marketing containing any health-related statement that is untrue in any particular manner or tends to create a misleading impression as to the effects on health of cannabis consumption.

(a) Deliveries, as defined in this division, may only be made by a licensed retailer or microbusiness with a non-store front retail license, or licensed nonprofits, or a licensed nonprofit under Section 26070.5. (b) All employees of a retailer, microbusiness, or nonprofit delivering cannabis or cannabis products shall carry a copy of the licensee’s current license and a government-issued identification with a photo of the employee, such as a driver’s license. The employee shall present that license and identification upon request to state and local law enforcement, employees of regulatory authorities, and other state and local agencies enforcing this division. (c) During delivery, the licensee shall maintain a copy of the delivery request and shall make it available upon request of the licensing authority and law enforcement officers. The delivery request documentation shall comply with state and federal law regarding the protection of confidential medical information. (d) A customer requesting delivery shall maintain a physical or electronic copy of the delivery request and shall make it available upon request by the licensing authority and law enforcement officers. (e) A local jurisdiction shall not prevent delivery of cannabis or cannabis products on public roads by a licensee acting in compliance with this division and local law as adopted under Section 26200.

Section 15402: (d) A licensed retailer or licensed microbusiness authorized to engage in storefront sales at their licensed premises may conduct sales through curbside delivery. Cannabis goods that have been purchased by a customer may be delivered to the customer in a vehicle parked immediately outside the licensed retail premises. Curbside delivery of cannabis goods must occur under video surveillance and meet the requirements of section 15044, subsection (e) for recording point-of-sale areas. Retail employees engaging in curbside delivery must verify each customer's age pursuant to subsection (a). Licensed retailers who are only authorized to engage in retail sales through delivery shall not conduct sales through curbside delivery.

Yes, recreational use cannabis was legalized by Prop 64 (the Adult Use of Marijuana Act) in 2016. This means adults over 21 can purchase and consume cannabis for personal use in the state.

Recreational marijuana users and out-of-state medical marijuana patients with a state of California ID card have to pay the 15% excise tax.

California also imposes state taxes and business taxes, but those rates vary by location. Check with your tax professional to ensure you're charging the correct taxes.

Adults over 21 years of age can buy and possess up to one ounce or 28.5 grams of cannabis and up to 8 grams of concentrated cannabis, as well as 6 cannabis plants.

Medical marijuana patients 18 years of age and older can possess up to 8 ounces of dried cannabis or the plant conversion as provided for in Health and Safety Code section 11362.77, and either 6 mature plants or 12 immature plants.

You can buy cannabis at retail outlets licensed by the California Department of Cannabis Control. Medical patients can only buy from licensed medicinal retailers. Retailers can be licensed for both medical and adult-use.

Here are the qualifying conditions for participation in California’s Medical Marijuana Identification Card Program (MMICP):

• AIDS

• anorexia

• arthritis

• cachexia (wasting syndrome)

• cancer

• chronic pain

• glaucoma

• migraine

• persistent muscle spasms (e.g. spasms associated with multiple sclerosis)

• seizures (e.g. epileptic seizures)

• severe nausea

• Any other chronic or persistent medical symptom that substantially limits a person’s ability to conduct major life activities as defined in the federal Americans with Disabilities Act of 1990, or that, if not alleviated, may cause serious harm to the person’s safety and health (both physical and mental).

According to California's medical marijuana laws, those with qualifying conditions don’t need to be California residents to obtain medical marijuana registration. Visitors who apply and are granted a card will have the same protections as a cardholder. These out-of-state residents will be charged the recreational excise tax, however.

Visit California's state page to learn more about how to obtain a medical card.

You can use cannabis on private property in California. You can’t use it on any public property in any form. Property owners and landlords can also ban marijuana use on their premises. You are not permitted to use cannabis within 1,000 feet of a school, daycare, or youth center while children are present.

Yes, Flowhub is a fully-compliant POS solution for dispensaries in California. Our software can accommodate California’s specific labeling, customer privacy, and purchase limit requirements. Learn more about Flowhub here.