About This Policy: Cannabis Policy Topics: Cannabis Cultivation and Distribution
Overview
This policy topic covers state statutes and regulations governing the cultivation, sale, possession, or use of cannabis for other than medical (hereafter referred to as “recreational”) purposes in states that have legalized cannabis.
In this context, “legalized" means that no civil or criminal penalties are imposed for the recreational use of cannabis by an adult. “Legalized” should not be confused with “decriminalized,” which means that no criminal penalties are imposed for certain activities, although some activities may result in civil penalties. Some States have decriminalized the recreational use of cannabis but have not fully legalized such use.
For purposes of this policy topic, “cannabis” refers to a genus of flowering plant of the Cannabaceae or hemp family, including Cannabis sativa, Cannabis indica, and Cannabis ruderalis, which together are also commonly known as marijuana. This policy topic covers legal provisions that pertain to the dried tops, leaves, stems, and seeds of the plant, as well as products derived from them, such as concentrates, oils, and edibles.
Cannabis contains chemical compounds called cannabinoids. One important cannabinoid is delta-9 tetrahydrocannabinol, or THC, which has a psychoactive effect and is the chemical commonly associated with recreational use. Another cannabinoid is cannabidiol, or CBD, which has a sedative and mildly analgesic effect and is the chemical often associated with medicinal use.
Note that APIS does not include information on the legal use of cannabis for medicinal purposes. For policy data regarding medical cannabis, researchers may wish to consult the National Institute on Drug Abuse’s “Prescription Drug Abuse Policy System,” available at: https://pdaps.org/ or the National Conference of State Legislatures’ “State Medical Marijuana Laws” page, available at: https://www.ncsl.org/health/state-medical-cannabis-laws.
Vertical Integration Prohibited
Vertical integration of cannabis licenses refers to a business structure in which a single company or entity holds multiple types of cannabis licenses to control the entire supply chain of cannabis production and sales. This prohibition means that a cannabis company may not handle all stages of cannabis business operations, from cultivation and production to processing, distribution, and retail sales.
Regulatory Agency
Different state-level agencies may have authority to regulate recreational cannabis in a given jurisdiction as specified in the relevant statutes or regulations. These agencies may include boards, commissions, or divisions specifically created for cannabis regulation as well as existing agencies that have taken on regulatory roles, such as Departments of Revenue or Consumer Protection. Some states delegate cannabis regulatory authority to multiple agencies, while others delegate all regulatory authority to one agency.
Cultivation Restrictions
States can limit the maximum amount of recreational cannabis that commercial businesses are permitted to cultivate. State limits vary based on the total square feet of cultivated product and the number of plants permitted per cultivation location. Cultivation limits also may vary with license type (such as greenhouses, outdoor cultivation, and indoor cultivation).
Local Authority
States may permit local jurisdictions to opt out of a state-wide system governing recreational cannabis activities, and States may permit localities to impose requirements that differ in certain respects from requirements under state law. As described in the Variables section, the different categories of local authority include:
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Local Option: Localities are authorized to opt out of the state-wide system. For example, localities could ban retail recreational cannabis outlets in their jurisdictions
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Local Control: Localities remaining in the state system are authorized to regulate recreational cannabis operations within their borders. They could, for example, impose additional time, place, and manner restrictions using local zoning regulations
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Both: Local option and local control are both authorized in the jurisdiction
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None: Neither local option nor local control are specifically authorized in the jurisdiction
Tracking System Requirements
A state may require a seed-to-sale tracking system or a cannabis inventory tracking system (encompassing tracking production, distribution, and retail sale) of cannabis sold for recreational purposes. Elements of a tracking system may include tracking the specific cannabis products by quantity and batch to prevent unauthorized movement and monitor stock levels; recording the transportation of cannabis products between facilities; tracking each sale including product type and amount; all testing and quality assurance results; and more.
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Cannabis |
A genus of flowering plant of the Cannabaceae or hemp family, and including Cannabis sativa, Cannabis indica, and Cannabis ruderalis, and products derived from such plants. |
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CBD |
Cannabidiol - a compound found in cannabis. CBD is widely thought to be non-psychoactive and a compound often associated with medicinal use. |
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Minor |
A person under the age of 21 years. |
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ng/mL |
Nanograms per milliliter. Units of measure commonly used to indicate cannabis impairment. Blood THC content is commonly measured in nanograms of THC per milliliter of a person's whole blood. |
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Off-Premises Sales |
Retail sale of cannabis products for consumption somewhere other than the premises where the products are purchased. |
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On-Premises Sales |
Retail sale of cannabis products for consumption on the premises where the products are purchased. |
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Retail |
The sale of cannabis products directly to consumers. |
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Sales Tax |
A tax on goods in general rather than a tax that specifically applies to cannabis. |
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THC |
Tetrahydrocannabinol - a compound found in cannabis. THC is considered psychoactive and is the compound most often associated with recreational use. |
Explanatory Notes and Limitations Specifically Applicable to Recreational Use of Cannabis
1. The Recreational Use Legalized column displays a check mark for jurisdictions that have legalized the purchase, possession, or consumption of cannabis for recreational use by an adult resident. For purposes of this topic:
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"Legalized" means no civil or criminal penalties are imposed for at least one of following activities with respect to the recreational use of cannabis by an adult resident: purchase, possession, or consumption
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"Recreational" means for other than medical purposes
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"Adult" means a person 21 years of age or older
This topic does not address prohibitions or penalties that may exist in the jurisdictions that have not legalized recreational cannabis use as defined here.
Note that although a jurisdiction may have legalized recreational cannabis use as defined here, certain limitations may nevertheless be imposed, for example limits on the amount that a person may purchase or possess, or restrictions concerning the locations in which cannabis may be consumed. This topic does not currently address these limitations.
2. Some Recreational Use of Cannabis laws have different effective dates for various provisions. For example, the date establishing a licensing system for the cultivation, testing, manufacturing, processing, distribution, transportation, and retail sale of recreational cannabis may be a year or more earlier than the date when recreational cannabis may lawfully be sold to the public. If significant terms of a State's policy become effective on one date, even though full implementation or enforcement is not effective until a later date, the earlier date is displayed in the comparison tables. In such cases, a Row Note is included to indicate the date when the program is to be fully implemented and enforceable.
Explanatory Notes and Limitations Specifically Applicable to Cannabis Cultivation and Distribution
1. The Cultivation Restrictions variable addresses State-level restrictions on the amount of recreational cannabis that commercial cultivators may cultivate. Non-commercial or home cultivation is not addressed; nor are restrictions on the location or siting of cultivation facilities. City, county, or tribal authorities may have the authority to impose their own, more restrictive requirements, which APIS does not address. State provisions vary with respect to the criteria by which cultivation amounts may be restricted – including but not limited to such factors as acreage, square footage, weight, number of plants, whether the setting is indoors versus outdoors or uses natural versus artificial lighting, etc. The Cultivation Restrictions variable addresses restrictions based on any of these criteria.
2. In the Local Authority column, jurisdictions that have legalized recreational cannabis use but which have not specifically authorized either local option or local control are left blank. In the absence of a specific legislative statement regarding local authority, a court would have to decide whether or not State preemption prevents local action. (For more information on the preemption doctrine, see the About Alcohol Policy page.) APIS does not address case law.
3. The APIS treatment of the Vertical Integration Prohibited variable does not include certain ancillary license types such as testing or processing or transporter licenses, in which cannabis is not purchased, stored, and later re-sold by the licensee as part of its business operations. Rather, this analysis addresses the primary license types involved in the cultivation, production, wholesale distribution, and retail sale of recreational cannabis in a given jurisdiction. For jurisdictions that may have legalized the recreational use of cannabis but which have no authorized distribution system, such as the District of Columbia, the table will appear blank for this variable. (This does not apply to jurisdictions currently in the process of establishing a system of authorized distribution.)
Explanatory Notes and Limitations Applicable to All APIS Policy Topics
1. State law may permit local jurisdictions to impose requirements in addition to those mandated by State law. Alternatively, State law may prohibit local legislation on this topic, thereby preempting local powers. For more information on the preemption doctrine, see the About Alcohol Policy page. APIS does not document policies established by local governments.
2. In addition to statutes and regulations, judicial decisions (case law) also may affect alcohol-related policies. APIS does not review case law except to determine whether judicial decisions have invalidated statutes or regulations that would otherwise affect the data presented in the comparison tables.
3. APIS reviews published administrative regulations. However, administrative decisions or directives that are not included in a State's published regulatory codes may have an impact on implementation. This possibility has not been addressed by the APIS research.
4. Statutes and regulations cited in tables on this policy topic may have been amended or repealed after the specific date or time period specified by the site user's search criteria.
5. The operation or enforcement of statutes or regulations affecting the policies addressed on APIS may have been suspended or modified by executive or administrative orders issued in response to the COVID-19 pandemic. With the exception of the COVID-19 Digest and Dataset, APIS research does not address these orders or the effects they may have on the policies covered by APIS.
6. Policy changes in APIS are presented as of the date these changes take effect as law. Users should be aware that in some situations there may be a delay between the effective date of a law and the time a corresponding policy change occurs in practice. Because APIS research is based entirely on primary legal source materials (codified statutes and regulations and, on rare occasions, published court opinions), APIS is unable to accurately determine when policy changes may appear in practice.
7. If a conflict exists between a statute and a regulation addressing the same legal issue, APIS coding relies on the statute.
8. A comprehensive understanding of the data presented in the comparison tables for this policy topic requires examination of the applicable Row Notes and Jurisdiction Notes, which can be accessed from the body of the table via links in the Jurisdiction column.
APIS reviews federal law pertaining to the use of cannabis, including its classification as a Schedule I substance under the Controlled Substances Act of 1970. Discussion of this law and its implications, as well as the interplay of federal law and state law on cannabis, is available at this link.
FEDERAL CITATIONS AND RELEVANT TEXT EXCERPTS
§ 812. Schedules of controlled substances
(a) Establishment
There are established five schedules of controlled substances, to be known as schedules I, II, III, IV, and V. Such schedules shall initially consist of the substances listed in this section. * * *
21 U.S.C. § 841
(a) Unlawful acts
Except as authorized by this subchapter, it shall be unlawful for any person knowingly or intentionally--
(1) to manufacture, distribute, or dispense, or possess with intent to manufacture, distribute, or dispense, a controlled substance; or
(2) to create, distribute, or dispense, or possess with intent to distribute or dispense, a counterfeit substance.
§ 844. Penalties for simple possession
(a) Unlawful acts; penalties
It shall be unlawful for any person knowingly or intentionally to possess a controlled substance unless such substance was obtained directly, or pursuant to a valid prescription or order, from a practitioner, while acting in the course of his professional practice, or except as otherwise authorized by this subchapter or subchapter II of this chapter. * * *
* * *
§ 846. Attempt and conspiracy
Any person who attempts or conspires to commit any offense defined in this subchapter shall be subject to the same penalties as those prescribed for the offense, the commission of which was the object of the attempt or conspiracy.
Source for all citations on this page: www.govinfo.gov/, a service of the U.S. Government Publishing Office (GPO). Excerpts from the United States Code are current as of 2024. Excerpts from the Code of Federal Regulations are current as of 2025. Excerpts from Public Laws of Congress are current as of the year of enactment. The GPO’s Public Domain & Copyright Notice is available at https://www.govinfo.gov/about/policies#copyright.
Legalization
- Carlini, B. H., Kellum, L. B., Garrett, S. B., & Nims, L. N. (2024). Threaten, Distract, and Discredit: Cannabis Industry Rhetoric to Defeat Regulation of High-THC Cannabis Products in Washington State. Journal of studies on alcohol and drugs, 85(3), 322-329.
- Schauer, G. L., Johnson, J. K., Rak, D. J., Dodson, L., Steinfeld, N., Sheehy, T. J., ... & Collins, S. P. (2023). A research agenda to inform cannabis regulation: how science can shape policy. Clinical therapeutics, 45(6), 506-514.
Cannabis Cultivation and Distribution
- Belackova, V., Roubalova, M., & van De Ven, K. (2019). Overview of “home” cultivation policies and the case for community-based cannabis supply. International Journal of Drug Policy, 71, 36-46.
- Matthay, E. C., Mousli, L., Apollonio, D. E., & Schmidt, L. A. (2023). Alignment in local approaches to alcohol and cannabis control policy: a case study of California cities and counties. International Journal of Drug Policy, 119, 104114.
- Moyer, J., & Sungu-Eryilmaz, Y. (2023). Understanding local control in the wake of state adult-use cannabis liberalization: A content analysis of state statutes. Public Administration Quarterly, 47(3), 284-299.
- Simard, B. J., Padon, A. A., Silver, L. D., Avalos, L. A., Soroosh, A. J., & Young-Wolff, K. C. (2024). Racial, ethnic, and neighborhood socioeconomic disparities in local cannabis retail policy in California. International Journal of Drug Policy, 131, 104542.
- Wadsworth, E., Schauer, G. L., & Hammond, D. (2022). Home cannabis cultivation in the United States and differences by state-level policy, 2019-2020. The American Journal of Drug and Alcohol Abuse, 48(6), 701-711.
