Voters legalized the use of medical cannabis in California in 1996, and the Legislature approved the Medical Cannabis Regulation and Safety Act (MCRSA) in 2015. In November of 2016, voters approved Proposition 64, which legalized and created a regulatory framework for the nonmedical use of cannabis. In the coming year, the Legislature will face key choices about whether it wants to make statutory changes to bring the regulatory frameworks of MCRSA and Proposition 64 into greater alignment. Additionally, the Legislature will need to determine the staff and other resources to provide to the various agencies charged with regulating and taxing the cannabis industry. We recommend the Legislature (1) work with the administration to enact legislation to align the regulation of medical and nonmedical cannabis to the maximum extent possible, (2) make its decisions on the extent to which it wants to align the regulatory structures for medical and nonmedical cannabis before making its decisions on the Governor’s requested funding and related positions, and (3) take a more incremental approach to budgeting for departments that are requesting resources in 2017-18.