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Update on California Cannabis Laws - 2019

Updated: Oct 24, 2019

At end of the 2019 California legislative session, Governor Gavin Newsom signed several bills into law that will affect cannabis businesses.


Assembly Bill 37 – tax equity for cannabis businesses

Newsom moved California forward on tax equity for cannabis businesses by signing AB 37 into law.


If you’re in cannabis, you know that section 280-E of the internal revenue code prohibits cannabis businesses from taking tax deductions on items other businesses can.


While 280-E still stands for Federal taxes, California state businesses will be able to take deductions on more items.


Senate Bill 34 – compassionate medical cannabis programs

Covers tax breaks for facilities that administer compassionate medical cannabis programs for patients in need.


Assembly Bill 420 – cannabis for medical research

Allows the Center for Medicinal Cannabis Research at the University of California to cultivate cannabis for clinical trials.


Assembly Bill 1529 – vape cartridge packaging

Requires the universal symbol for cannabis to be imprinted on vape cartridges – and the symbol must be at least ¼ inch by ¼ inch.


If you need consulting on your packaging to make sure you’re compliant with all regulations, or want to discuss how regulations affect your business, drop us a line to get started today.

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