Among other places in the United States, the state of California has a thriving market for the sale and purchase of cannabis. The Medical Marijuana and Safety Act created new opportunities for cannabis businesses in California to make profits. According to this act, licensing is required to run a cannabis business.

In California, the legislation allows dealing in cannabis both for medical and recreational use. The Bureau of Cannabis Control is the leading authoritative body which looks after the licensing, regulation and enforcement of different types of cannabis businesses. Such businesses include distributors, testing laboratories and retailers. Manufacturers of cannabis operate under the supervision of the California Department of Public Health (CDPH). Cultivators need to acquire licensing from the California Department of Food and Agriculture (CDFA).

Every retailer operating in California is bound to abide by state laws and regulations. Selling untested cannabis products is strictly prohibited. If a distributor has in their possession cannabis goods that were manufactured or harvested before January 1, 2018, the cannabis goods must be returned to the licensed owner. The distributor should fulfill all the lab testing requirements before the cannabis goods are dispatched to retailers for sale. As per the state regulations, the retailer should never label or package cannabis goods themselves – except for the purpose of medical sales. If a retailer is in possession of cannabis goods that violate labeling and packaging guidelines, the cannabis goods must be destroyed.

Though the sale of recreational cannabis started towards the end of 2018, the number of approved licenses shot up faster.

By the end of 1st quarter of 2019, California’s cannabis excise tax revenues went up to $614 million. The boost in California’s cannabis market can be attributed to the sale of recreational cannabis. The cannabis market in California is expected to grow up to $77 billion by the year 2022.