California

California legalized medical cannabis in 1996 under Proposition 215 (Compassionate Use Act), becoming the first U.S. state to do so. Adult-use cannabis was legalized in 2016 via Proposition 64 (Adult Use of Marijuana Act), with retail sales beginning January 1, 2018. The Department of Cannabis Control (DCC), established in 2021 by consolidating three predecessor agencies, regulates all commercial cannabis activity. As of early 2026, there are approximately 7,700 active licenses including over 4,400 cultivators, 1,200 retailers, 500 manufacturers, and 345 microbusinesses. California remains the largest legal cannabis market in the United States, with over $4.4 billion in annual retail sales in 2025. The state imposes a 15% excise tax on retail sales and local jurisdictions may levy additional taxes. Municipalities retain local control to ban or permit cannabis businesses.

Ask the Expert about California

Regulator

California Department of Cannabis Control

Key Legislation

California Business and Professions Code Division 10 — Cannabis

Year Legalized

1996

Program Size

~7,700 active licenses; $4.4B annual ...

Key Facts

First U.S. state to legalize medical cannabis (Proposition 215, 1996); adult-use legalized via Proposition 64 in 2016
Largest legal cannabis market in the U.S. with over $4.4 billion in annual retail sales
License types include cultivator, manufacturer, retailer, distributor, microbusiness, testing laboratory, and event organizer
Local jurisdictions retain authority to ban or regulate cannabis businesses — approximately 62% of cities prohibit retail sales
15% state excise tax on retail sales plus local taxes; cultivation tax was eliminated effective July 1, 2022

Key Legislation

California Business and Professions Code Division 10 — Cannabis (Medicinal and Adult-Use Cannabis Regulation and Safety Act)

Regulatory Body

California Department of Cannabis Control (DCC)

Country Info

ISO Code

Region

North America

Tier

Tier 1 — Active Program

Status

Adult-Use & Medical — Legal

Sources

California Business & Professions Code Division 10 — Cannabis Department of Cannabis Control (DCC)

Disclaimer: This information is for general reference only and does not constitute legal advice. Cannabis regulations change frequently. Always verify with official sources and local legal counsel before making compliance decisions.