Cultivation tax eliminated
The weight-based cultivation tax died July 1, 2022 — but the deal required the excise rate to rise later to make up the revenue. That bill came due on July 1, 2025, when the excise rate jumped to 19%.
Long Beach Collective Association · est. 2009
The nonprofit trade association of Long Beach's legal cannabis industry — tracking every federal, state, and local change, writing better policy, and giving back to the city that voted us into existence.
Cannabis has been Schedule I — "no accepted medical use" — since 1970. That officially ended for state-licensed medical cannabis in April 2026. Every step, as it happened:
The Department of Health and Human Services concludes cannabis has accepted medical use and recommends moving it from Schedule I to Schedule III.
A Notice of Proposed Rulemaking to transfer marijuana to Schedule III publishes in the Federal Register. It draws more than 42,000 public comments.
The administrative law judge postpones the scheduled hearing amid pre-hearing disputes and an appeal. The process idles through 2025.
President Trump directs the Attorney General to complete the Schedule III rulemaking "in the most expeditious manner in accordance with Federal law."
Acting AG Todd Blanche's final order immediately places FDA-approved cannabis products and cannabis under state medical licenses in Schedule III — opening an expedited DEA registration pathway and relief from the IRS 280E tax penalty for medical licensees. Adult-use cannabis remains Schedule I for now.
DEA selects seven participants for the broader rescheduling hearing — all appearing opposed. NORML's request to participate is rejected; it seeks reconsideration.
An expedited administrative hearing weighs whether cannabis as a whole — including adult-use — moves to Schedule III. It concludes no later than July 15.
Prohibition and drug-testing groups have challenged the April order in the D.C. Circuit. The LBCA is tracking the litigation and will brief members as rulings land.
What it means in Long Beach: operators holding state medical licenses gain a federal registration pathway and 280E relief; adult-use remains state-legal but federally Schedule I. Nothing about rescheduling permits interstate commerce — yet.
The weight-based cultivation tax died July 1, 2022 — but the deal required the excise rate to rise later to make up the revenue. That bill came due on July 1, 2025, when the excise rate jumped to 19%.
Signed September 22, 2025, AB 564 (Haney) cut the excise rate back to 15% effective October 1, 2025 — locked through June 30, 2028, with biennial reviews after (capped at 19%). Cal NORML, UFCW, CCIA and 10,000+ letters got it done.
Packaging-reform hearings at the Capitol, CDPH hemp regulations, a disposable-vape ban amended to exclude cannabis vapes, and the DCC's mandated tax report to the Legislature due October 2027. The illicit market still moves an estimated 2.4M of California's 3.8M pounds — the core argument for continued reform.
Cannabis items move through the Office of Cannabis Oversight and City Council — feasibility study, first reading, second reading, ordinance. The LBCA is in the room for all of it. Recent council actions:
Council votes to allow permitted cannabis sales and consumption at events — up to 12 permits per licensed organizer per year, 1–4 days each, 21+, no alcohol or tobacco, 1,000-ft school buffers. Venues floated include the Queen Mary, Marina Green, Rainbow Lagoon, the Convention Center, and the new Amphitheater. A policy the LBCA has pushed since 2019.
Council lowers the adult-use retail tax — the continuation of a tax-relief plan the LBCA has advocated for since the first 6%→1% supply-chain win in 2019.
Council creates a legal pathway for delivery-only cannabis businesses, reserved for verified equity applicants, to recapture sales lost to out-of-city delivery services.
Equity businesses' cultivation and retail taxes cut to half the standard rate; a pilot Business Tax Credit program launches June 2024, with a Special Circumstances Payment Plan for back taxes.
Up to eight dispensary licenses reserved for equity applicants. Two equity storefronts have opened with six more expected in 2026. Adult-use businesses citywide must staff 40% of work hours with equity hires and file community reinvestment plans.
Measure MA revenue — $11.8M in FY 2024 — funds city services including the Racial Equity and Reconciliation Initiative and homeless assistance. The LBCA and its members add the people power:
Twice-monthly distributions with Help Me Help You — every 2nd and 4th Wednesday since 2021.
Alamitos Beach and neighborhood clean-ups in partnership with community associations across the city.
The 8-week Introduction to the Cannabis Industry with LBCC workforce training, plus a 400+ attendee job fair with the city's workforce department.
Endorsement hearings for local and state candidates — 17 hosted in 2022 — and action alerts when cannabis hits the council agenda.
Sixteen years of organizing — the timeline scrolls itself; touch it to pause. →
Auto-scrolling timeline. Touch, click, or focus it to pause; use the left and right arrow keys to move between years.
The LBCA forms under Prop 215, educating city staff and electeds. That work helps pass Ordinance 5.87 (2010) — Long Beach's first medical cannabis ordinance.
The LBCA formally establishes as a 501(c)(4) to advocate for safe access and fair business policy.
A lawsuit shutters all cannabis operations on Aug 12. Members turn facilities into campaign headquarters.
50,000+ signatures gathered for a ballot initiative; the City Clerk invalidates 18 and the measure dies. The city passes its own tax measure anyway.
Two LBCA board members serve on the city's Cannabis Task Force. Council rejects its recommendations 5–4. The LBCA regroups with UFCW.
60.14% yes. Measure MA (taxes) passes at 68.25%, and Prop 64 carries Long Beach. Legal cannabis is coming back.
MAUCRSA signed statewide; the first legal medical dispensaries open in Long Beach in late September.
Council adopts adult-use rules 7–1 with an equity licensing path. The LBCA hires its first staff.
An LBCA campaign wins a supply-chain tax cut for labs, distribution, and manufacturing. "1% of something is better than 6% of nothing."
The LBCA blocks a COVID-era retail tax increase by proposing extended hours instead. Council agrees — and revenue beats the tax-hike projection.
Extended-hours revenue tops estimates ($9.24M projected). Costa Mesa and San Diego study the approach. CCP launches under SB 34.
Advocacy for events, lounges, and tax relief; endorsement hearings for 17 candidates; bi-monthly food distributions continue.
Equity half-rates and a pilot tax-credit program adopted; equity-exclusive delivery licenses approved in December 2024.
Long Beach retail tax drops 8%→7% in May; the state excise rolls back 19%→15% under AB 564 in October.
Medical cannabis goes Schedule III in April; the special-events ordinance advances 6–2 in March; the DEA hearing on full rescheduling runs through July 15.
$500/month
Licensed cannabis businesses within the City of Long Beach — retail, cultivation, manufacturing, distribution, testing.
$250/month
Cannabis businesses outside Long Beach, cannabis brands, and ancillary business services.
Under SB 34 (implemented March 2020), licensed operators donate compassion products — fully tracked through the state system — free to California patients with a current doctor's recommendation or state MMIC. Veterans and seniors especially encouraged. Donations fund doctor's recommendations for patients who can't afford them.
Volunteer at food distributions and clean-ups, join action alerts for council meetings, or donate to fund patient recommendations. Start with the newsletter — advocacy campaigns, industry events, and community action by email and text.
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