AUMA- Adult Use of Marijuana Act


Prop 64 or the “Adult use of Marijuana Act” or AUMA, passed with over 57% of the vote in California. With marijuana now “legal” in California many operators are asking “How do I obtain a recreational license for dispensary, delivery, cultivation, distribution or manufacturing?” or “Can I start a recreational cannabis dispensary right now? Well the short answer is you can’t, yet. Although the bill took effect immediately after its passing it gave no allowance to provide or produce marijuana to adults 21 and up without a recreational license issued by the BMCR. And you will not be able to apply for a recreational Cannabis licenses until at least Jan 1st 2018. I would also note that localities (city and county municipalities) have been slow to accept Medical Marijuana operations and assuming the locality will fast track recreational cannabis licensing is being hopeful.

Operators looking to get a leg up on the competition are starting now. Organizing as a Medical Marijuana Collective until they are approved for Licensing by the state of California and their local city or county. Most retailers operate as a Delivery Service as opposed to a storefront location in order to minimize scrutiny from locals and law enforcement. Cannabis growers, manufacturers and distributors also have the advantage of being discreet and low key hence not attracting the attention of law enforcement like a storefront operation would.


Ballot Summary

From Ballotpedia

Legalizes marijuana under state law, for use by adults 21 or older.
Designates state agencies to license and regulate marijuana industry.
Imposes state excise tax of 15% on retail sales of marijuana, and state cultivation taxes on marijuana
of $9.25 per ounce of flowers and $2.75 per ounce of leaves.
Exempts medical marijuana from some taxation.
Establishes packaging, labeling, advertising, and marketing standards and restrictions for marijuana products.
Prohibits marketing and advertising marijuana directly to minors.
Allows local regulation and taxation of marijuana.
Authorizes resentencing and destruction of records for prior marijuana convictions.


AUMA License Types-

No verticle integration limits-Multiple license types allowed



AUMA Cultivation Licenses