California's Medical Cannabis Laws: What's The Current Status?

California was the first US state to legalise medical cannabis in 1996, when voters passed the Compassionate Use Act. Since then, the state's cannabis laws have undergone many changes, including the 2016 Proposition 64, or the Adult Use of Marijuana Act (AUMA), which marked the legalisation of recreational marijuana.

Despite this, medical cannabis patients and advocates feel left behind in a post-Proposition 64 era, where the commercial market is focused on recreational sales. In this new profit-centred system, patients argue there is little consideration for their unique needs.

Medical cannabis laws in California: a history

California has been at the forefront of efforts to liberalize cannabis laws in the United States. In 1972, the state had the country's first ballot initiative to legalize cannabis, Proposition 19, which was unsuccessful. However, in 1996, California became the first state to allow medicinal cannabis use when voters passed the Compassionate Use Act (Proposition 215). This law legalized the use, possession, and cultivation of cannabis by patients with a physician's recommendation for various illnesses, including cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, and migraine.

The movement to legalize medical cannabis in California began in San Francisco in the early 1990s and soon spread statewide. In 1991, Proposition P, which called on state lawmakers to pass legislation allowing the medical use of cannabis, was approved by 79% of San Francisco voters. This was followed by similar resolutions passed by the city board of supervisors and other cities in California. In 1993, state lawmakers passed Senate Joint Resolution 8, a non-binding measure urging the federal government to allow physicians to prescribe cannabis. However, efforts to reclassify cannabis as a Schedule II drug at the state level and create a medical necessity defense for patients using cannabis were vetoed by Governor Pete Wilson in 1994 and 1995, respectively.

Frustrated by these vetoes, medical cannabis advocates took the issue directly to the voters and gathered 775,000 signatures for a statewide ballot initiative in 1996, which became Proposition 215. The proposition was approved with 56% of the vote and established California as the first state to legalize medical cannabis.

In 2003, the state's legislature expanded the medical marijuana law to allow patients and caregivers to collectively or cooperatively cultivate marijuana. The implementation of the medical cannabis program was clarified through state Supreme Court rulings and the passage of subsequent laws, such as Senate Bill 420, which established an identification card system for patients and allowed the formation of non-profit collectives for cannabis provision.

In 2015, California enacted a licensing and regulatory system for medical marijuana businesses, and in 2016, voters approved the Adult Use of Marijuana Act (Proposition 64), legalizing recreational marijuana use for adults. While medical cannabis laws in California have evolved over time, the state has consistently played a leading role in the liberalization of cannabis laws in the United States.

Qualifying conditions for medical cannabis in California

California was the first state in the US to legalise medical cannabis in 1996, following the passing of the Compassionate Use Act (Proposition 215). This act allows people to obtain and use cannabis for any illness if they obtain a recommendation from a doctor.

The California Department of Public Health (CDPH) manages the state-authorised Medical Marijuana Identification Card Program (MMICP). The MMICP web-based registry allows law enforcement and the public to verify the validity of a qualified patient or primary caregiver's MMICP as authorisation to possess, grow, transport, and/or use medical marijuana within California.

• Persistent muscle spasms
• Any debilitating illness where the medical use of marijuana has been "deemed appropriate and has been recommended by a physician". This includes specific illnesses such as cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, or migraine.

There are no possession limits specified under California's medical marijuana laws, but the amount must be "consistent with the patient's needs".

Patient possession limits

California was the first state in the US to legalise medical cannabis in 1996, when voters passed the Compassionate Use Act.

There are no possession limits specified in California's medical marijuana law. The amount a patient can possess must be "consistent with the patient's needs". However, Senate Bill 420 (2003) authorised patients (and their caregivers) to possess up to six mature or 12 immature plants and eight ounces of dried cannabis.

Patients can grow their own marijuana or buy it from licensed dispensaries. However, it is illegal to sell without a license.

Cities and counties can impose their own limits on the quantity of cannabis possessed by patients. They can also impose zoning restrictions that prevent dispensaries or prohibit outdoor cultivation.

Medical Marijuana ID Card

A Medical Marijuana ID card is optional for patients. It exempts the holder from paying taxes on marijuana purchases. The card also prevents law enforcement from arresting a patient with permissible amounts of marijuana, which may exceed the legal recreational limits.

Doctor's Recommendation

Doctors do not prescribe marijuana as federal law prohibits the prescription of Schedule I drugs, including marijuana. Instead, doctors can recommend marijuana for appropriate conditions.

Qualifying Conditions

• Cancer
• Anorexia
• AIDS
• Chronic pain
• Spasticity
• Glaucoma
• Arthritis
• Migraine
• Persistent muscle spasms
• Any debilitating illness where the medical use of marijuana has been “deemed appropriate”

Medical marijuana dispensaries in California

The state's medical cannabis registration program is voluntary, with an estimated 2,490 patients registered for the 2023-2024 fiscal year. The program is regulated by the Department of Cannabis Control (DCC), which ensures that businesses operate safely, products are contaminant-free and correctly labelled, and cannabis is kept away from children.

Local ordinances can limit or ban medical cannabis cultivation, and companies must be licensed by the local agency to grow, test, or sell cannabis within each jurisdiction. Cities and counties may also license none, some, or all of these activities.

There are many medical marijuana dispensaries operating in California, including Abide Napa Dispensary, Alternatives, A Health Collective, Cornerstone Wellness Dispensary & Delivery, and many more. These dispensaries offer a range of products, including flower, edibles, vapes, and concentrates, and serve both medical and recreational users.

California's cannabis industry is strictly regulated to ensure businesses operate safely and that products are safe and correctly labelled. The DCC also specifies rules for running a cannabis business, allowable ingredients, and packaging requirements.

Taxes on medical cannabis in California

California has been at the forefront of efforts to liberalize cannabis laws in the US. In 1996, it became the first state to allow medicinal cannabis use when voters passed the Compassionate Use Act. In 2016, California voters approved the Adult Use of Marijuana Act, legalizing the recreational use of cannabis.

The state of California and local cities place numerous taxes on legal cannabis. The total tax on California dispensary cannabis sales varies by location. The statewide base sales tax rate is 7.25%, including a 6% state tax and a 1.25% mandatory local tax. Local jurisdictions can apply an additional tax of up to 3%, bringing the total sales tax as high as 10.25%.

Recreational (Adult-Use) Customers:

• State excise tax for cannabis: 15%
• State sales tax: 8-10%
• Local business tax: 5-15%

Medical Cannabis Patients:

Medical cannabis patients with a state-issued medical marijuana card are exempt from the state sales tax. However, they still have to pay the 15% cannabis excise tax, and local jurisdictions can choose to levy a sales tax on medical cannabis.

The taxes on medical cannabis in California can be confusing, and it is important for dispensary owners and patients to understand the tax structure. While medical patients are exempt from the state sales tax, they may still be subject to local sales taxes depending on the city. In some cities, like West Hollywood, medical patients pay no city sales tax, while in others, like Los Angeles, they pay a reduced rate.

Frequently asked questions