Licensing Law & Compliance Attorney for California Cannabis Microbusinesses, 2019 Important News, Attorney Information & Updates

California Cannabis Microbusinesses

Frequently Asked Questions

Can large cultivation licensees obtain microbusiness licenses?

No, large cultivation licensees are prohibited from obtaining a microbusiness license. Though, a person can apply for and be issued more than one license for commercial adult-use activity.

Are microbusiness licensees required to implement any security measures?

Yes, microbusiness licensees are required to implement security measures reasonably designed to prevent unauthorized entrance into areas containing cannabis or cannabis products and theft of cannabis or cannabis products from the premises.

What is a Cannabis Microbusiness?

A Cannabis Microbusiness is a business that engages in at least 3 of the following 4 activities:
  • Cultivation (area less than 10,000 square feet)
  • Manufacturing (level 1), Manufacturing (level 6)
  • Distribution
  • Retail

Can a Microbusiness act in part as a cannabis business or must it be whole?

A Microbusiness can act in part or whole as a cannabis business.

Can microbusinesses deliver cannabis goods?

Yes, cannabis goods deliveries can be made by a licensed microbusiness.

Can microbusinesses be subject to excessive concentration?

Yes, CA can limit microbusinesses subject to excessive concentration.

Are Microbusinesses required to identify their business organizational structure?

Yes, Microbusinesses are required to identify their business organizational structure.

State Authority & Contact:

Bureau of Cannabis Control (CA Department of Consumer Affairs)
PO Box 419016, Rancho Cordova, CA 95741-9106
Phone: 1-833-768-5880

Scope of Licenses:

  • Type 12 Microbusiness

A Cannabis Microbusiness is a business that engages in at least 3 of the following 4 activities:
  • Cultivation (area less than 10,000 square feet)
  • Manufacturing (level 1), Manufacturing (level 6)
  • Distribution
  • Retail


  • Evidence of legal right to occupy and use the proposed premises location.
  • Premises Diagram Form(s)
  • Business formation documents,including all documents filed with the CA Secretary of State (SOS). Foreign corporations must include a copy of the Certificate of Qualification from the SOS.
  • Evidence of premises compliance with local jurisdiction, if applicable.
  • Labor peace agreement or notarized statement indicating that you will enter into and abide by the terms of a labor peace agreement, if applicable.
  • Limited waiver of sovereign immunity, if applicable.
  • Evidence of exemption from, or compliance with, the California Environmental Quality Act.
  • Proof of commercial general liability insurance in the aggregate of no less than $2 million and no less than $1 million for each loss, if your license activities include distribution.
  • Financial Information Form
  • Proof of surety bond in the amount of $5,000, payable to the State of California.
  • Transportation procedures
  • Inventory procedures
  • Non-Laboratory Quality Control procedures
  • Security procedures
  • Evidence of compliance with the Compassionate Use Act of 1996 and its implementing laws before September 1, 2016, if applicable.

Licensing Fees:

  • $5,000: Revenue Up to $500,000
  • $15,000: Revenue between $.5 million to $1.5 million
  • $42,000: Revenue between $1.5 million to $4.5 million
  • $120,000: Revenue greater than $4.5 million



Bureau of Cannabis Control
Cannabis Advising Partners: for Cannabis Consulting

California Universal Symbol for Cannabis

California Universal Symbol for Cannabis

Download PNG file or Download JPG file

This site focuses or refers to information and services regarding CalCannabis Cultivation Licensing Licensee Information valid waiver 2019 issues licensed premises Transition Period Labor peace agreement emergency regulations Physical address MANUFACTURED CANNABIS SAFETY BRANCH Incorporating THC/CBD concentrates packaging and labeling requirements ANTICIPATED ANNUAL (NONTEMPORARY) LICENSE APPLICATION REQUIREMENTS opaque exit package Temporary License Application public Licensee Lookup Tool Cannabinoids Testing allergen information amount of sodium 2,000 mg of THC per package for the medicinal-use market purchasing cannabis products on tribal lands access to the area(s) licensing cannabis distributors Temporary License Application Information Water/Food-grade Dry Ice Form # CDPH-9041 Business Information Manufacturing (non-volatile) California Department of Public Health period of 120 days manufacturing practices 600-foot radius of a school conducting quality assurance review cultivation diagram of the business’s layout activity for a period of 120 days licensing and regulating commercial cannabis manufacturers Personnel Requirements child-resistant outer package medicinal and adult-use commercial cannabis activity Extractions using CO2 transport cannabis goods to retailer tamper-evident motor carrier permit ownership premises is not within a Government Owner alcoholic beverages property for the commercial cannabis activity Financial information waste disposal testing methods secondary packaging extraction 2019 new laws distributors testing laboratories investment into a commercial cannabis business immature live plants and seeds being transported from a licensed nursery Local Authorization Premises Diagram highly-concentrated oils or waxes supplemental label evidence of rehabilitation Terpenoids Testing commercial cannabis manufacturing in California dried flower shipping manifest at least 99% purity product guidelines commercial cannabis manufacturing Type S share facility space Transport vehicles alarm system testing lab conditional license Premises Information health claims manufacturing (Level 1 manufacturing, Type 6) workshops hosted by the Bureau of Cannabis Control LICENSE APPLICATION REQUIREMENTS topicals inventory 2019 revisions labels not be attractive Ethanol Track and Trace Operating Procedures CALIFORNIA BUREAU OF CANNABIS CONTROL CDTFA seller’s permit separate applications some nutritional facts Food-grade Butter/Oil loan provided to a commercial cannabis business equity interest in a commercial cannabis business ISO/IEC 17025 accreditation manufacturing cannabis products CDPH-issued universal symbol cultivation (on an area less than 10,000 square feet) Premises diagram Live Scans for each owner comply with all packaging and labeling requirements The California Department of Public Health's paper inserted into the packaging tinctures scaled to the gross annual revenue of the licensed premises minimum standards for extraction processes Poison Prevention Packaging Act of 1970 (PPPA) 2019 important information Identifying information sampling standards amount of THC/CBD per serving and per package convicted of a substantially related crime meat and seafood, and other products entry into the legal, regulated market transportation online licensing system child-resistant packaging no added caffeine compliance with local jurisdiction 2019 laws cannabis plants Financial Interest hang tag or a peel-back label Seller’s permit number Business Organizational Department of Consumer Affairs’ Bureau of Cannabis Control exit packaging cannabis event organizer license destruction of cannabis goods Bond in the amount of $5,000 no infusion of nicotine cannabis industries unique ID/batch number commercial cannabis manufacturers Proposition 65 persons 21 years of age or older inhalable cannabis annual license application re-sealable Non-Storefront Retailer (Type 9) member manager Homogeneity Testing of Edible Cannabis Products retailers quality control hydrocarbon-based solvents amount of THC content designated structure cannabis products in container or wrapper for sale A-license and an M-license for the same commercial cannabis activity disclosure of all criminal convictions operating premises three cannabis licensing authorities medicinal commercial cannabis activity state cannabis licensing manned motor vehicle cannabis market sanitary workplaces manufacture cannabis products Medicinal and Adult-Use Cannabis Regulation and Safety Act extracts Manufactured Cannabis Licensing System (MCLS) cannabis sales and/or consumption A-licensees The Manufactured Cannabis Safety Branch (MCSB) medicinal and adult-use or both markets Cannabis Manufacturing disposal and destruction methods Carbon Dioxide (CO2) medicinal and adult-use cannabis manufacturing identity of the product Standard Operating Procedures (SOPs) 2019 updates vape cartridges Mycotoxins Testing Microbial Impurities Testing (Escherichia coli and Salmonella spp.) required limits Arranging for laboratory testing premises diagram an officer or director of a cannabis business Proposition 64: The Adult Use of Cannabis Act of 2016 licensed cannabis cultivators licensing scheme 2019 recent news concentrate M-license Cultivation less than 10,000 no infusion of alcohol adult-use commercial cannabis activity Bond and Insurance Information Edibles– Products delivery vehicle $3,000 of cannabis goods inventory and quality control licensing cannabis retailers Foreign Material Testing packaging and labeling requirements for pre-rolls primary panel requirements compliance with regulations edible products 100 mg of THC per package infusion payable to the state of California potentially-hazardous foods Office of Environmental Health Hazard Assessment (OEHHA) three state cannabis-licensing authorities Microbusiness Temporary Cannabis Event track and trace system contaminants procedures for inventory control security license review process structure and formation documents secured area certified by a California-licensed engineer California Department of Public Health (CDPH) Distributor transport storage of cannabis goods managing member commercial cannabis activity 2019 fines licenses for both medicinal and adult-use cannabis manufacturing at the same premises licensed cannabis distributors product as a candy prohibited 2019 proposed changes Vehicle Requirements 120 days Temporary event up to 4 days supply chains for medicinal and adult-use cannabis products 2019 regulations Percentage of ownership security and cannabis waste disposal must enter certain events licensing cannabis third-party testing laboratories pre-made or purchased waste management laws cannabis cartoons transportation of cannabis goods labeling Manufactured Cannabis Safety Branch (MCSB) capsules contaminant free shares of stock that are less than 5% of the total shares in a publicly traded company Retailer (Type 10) manufacturers who package for other producers Retailer (nonstorefront) CDPH-9041 final form transportation and security persons with a financial interest in the cannabis business volatile solvent MCSB Category I Residual Solvents and Processing Chemicals Testing Licensee Lookup Tool Distributor Transport Only transporting cannabis goods onsite consumption of cannabis goods mandated warning statements at least 20% ownership interest cannabis waste 2019 problems definition of owner evidence of the legal right to occupy the premises financial interest holder public health and safety informational panel written procedures for inventory control licensing cannabis microbusinesses supply chain packaging BUREAU OF CANNABIS CONTROL ingredient list THC levels the commercial medicinal and adult-use (recreational) remove THC/CBD laboratory quality assurance periods of 90 days extensions shared-use manufacturing facilities surety bond Water Activity Testing of Solid or Semi-Solid Edibles Department of Food and Agriculture’s CalCannabis Cultivation Licensing division Licensees testing of cannabis goods 600 foot radius of a school sugar cannabis cultivation licensing manufacturer's name limited to a maximum of 1,000 mg per package good manufacturing practices highly-concentrated THC/CBD such as oil, wax and resin Individual Owner Local Jurisdictions medicinal and adult-use markets cannabis adult-use products commercial cannabis manufacturing activity nonlaboratory quality control Mechanical Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) regulations for medicinal and adult-use cannabis Industrial Hemp Advisory Board carbohydrates and fat per serving Application Checklist The Bureau of Cannabis Control (BCC) commercial kitchens Moisture Content Testing temporary license cannabis training recordkeeping local jurisdiction authorization disposal basic nutritional information local jurisdiction’s ordinances and regulations Conducting quality assurance review of cannabis goods Butane/Hexane/Propane commercial cannabis products California Public Records Act Microbial Impurities Testing (A. fumigatus, A. flavus, A. niger, A. terreus) Manufactured Cannabis Safety Branch consumption of alcohol or tobacco MCSB’s temporary license application onsite sale and consumption of cannabis goods protocol limited to a maximum of 10 mg of THC per serving Category II Residual Pesticides Testing regulations for medical and adult-use cannabis in California Business and Professions Code section 26050.1 licensed cannabis manufacturers Medical Cannabis Regulation and Safety Act of 2015 loop system list of artificial food colorings secondary package small product packaging finished product product formulation shaped like a human, animal, insect, or fruit Fingerprints edibles packaging opaque sanitary and hazard-free environment aggregate interest of 20% or more manufacturing activities Local Authorization Attachment manufacturing Completed Temporary License Application Form health impacts of cannabis local jurisdiction’s requirements exception for testing laboratories microbusinesses medicinal and adult use cannabis goods transported together government warning statement label operating procedures licensed physical location (premises) Category I Residual Pesticides Testing Local Issuing Authority sales of cannabis goods regulatory framework A-license stickers Proposed Section 40133 Heavy Metals Testing Category II Residual Solvents and Processing Chemicals Testing local jurisdiction Department of Public Health’s Manufactured Cannabis Safety Branch CO2 and ethanol extractions 2019 compliance chain of custody tobacco products packaging and labeling 2019 resolutions Criminal History M-licensees A-license and an M-license requiring refrigeration and more.

In addition, Topical cannabis product Component Holding Mixed-light cultivation Specialty Mixed-Light Tier 1 Type 3 (Cultivation; Outdoor; Medium) THC Nonvolatile solvent gross annual revenue for first year in operation under MAUCRSA Type 11 (Distributor) cannabis concentrates Harvest Batch M-license Adult-use Market Commercial-grade, non-residential door lock Type 1 (Cultivation; Specialty outdoor; Small) Specialty Outdoor Allergen Proposition 65 warning statement Pathogen Type 1A (Cultivation; Specialty indoor; Small) Type 4 (Cultivation; Nursery) Type 7 (Manufacturer 2) Extraction: Volatile Solvents Dried flower Process Package Request for Live Scan Quality Specialty Mixed-Light Tier 2 Type 3A (Cultivation; Indoor; Medium) Ingredient Personnel MCSB 90-day extension periods products similar to traditional food products prohibited Medium Outdoor Specialty Indoor Type 5 (Cultivation; Outdoor; Large) Lot Finished product Volatile solvent Pre-roll In-process material Verification Adulterated Nursery Infusion Outdoor cultivation Mature plant Allergen cross-contact cakes, cookies, beverages and juices, tea and coffee, chocolates, gummies, gum, and mints Type 6 – for extraction using a mechanical method or non-volatile solvent (ex: CO2, ethanol, water, or food-grade dry ice, cooking oils or butter) Environmental pathogen Type 2 (Cultivation; Outdoor; Small) Limited-access area Preventive controls Specialty Cottage Indoor Product Identity Bureau Pest Kief UID Primary panel Actual yield DPH-17-010E Type 2B (Cultivation; Mixed-light; Small) Type 2A (Cultivation; Indoor; Small) Medium Mixed-Light Tier 2 track and trace system list of cannabis manufacturers Monitor Department Immature plant Extraction CBD Processor Theoretical yield Quarantine Wet weight Type 1C (Cultivation; Specialty cottage; Small) Microorganisms Processing aid Type 3B (Cultivation; Mixed-light; Medium) Universal symbol Commercial cannabis activity Mixed-light Tier 1 THC limit of 10 milligrams per serving and 100 milligrams per package Cannabis product Type 1B (Cultivation; Specialty mixed-light; Small) Type P – for packaging and labeling only Type 14 (Cannabis Event Organizer) Licensee infused butters and oils as concentrates Type 13 (Distributor Transport Only) Type N – for infusions Hazard Medium Mixed-Light Tier 1 Small Mixed-Light Tier 2 Type 8 (Testing Laboratory) Cultivation site Applicant Quality control personnel Premises Validation Type 6 (Manufacturer 1) Extraction: Non-volatile Solvents, Mechanical Methods Batch Medium Indoor Specialty Cottage Mixed-Light Tier 2 Manufacturer licensee Specialty Cottage Outdoor Distribution Quality control operation Net weight Informational panel package flower or pre-rolls Serving Small Mixed-Light Tier 1 Indoor cultivation Type P Packaging & Labeling Only Unique identifier Type 7 – for extraction using a volatile solvent (ex: butane, propane and hexane) Edible cannabis product Specialty Cottage Mixed-Light Tier 1 Manufacture Type 9 (Non-Storefront Retailer) Processing Type 12 (Microbusiness) Labeling CBD from industrial hemp Nonmanufactured cannabis product Type 10 (Retailer) Track-and-trace systems Type N Infusions (optional packaging and labeling) Raw material infused pre-rolls Type 5B (Cultivation; Mixed-light; Large) Flowering Qualified individual adulteration Watts per square foot Adequate Canopy Mixed-light Tier 2 Cultivation Small Outdoor Track and trace system Sanitize Small Indoor Type 5A (Cultivation; Indoor; Large) alternate use of a manufacturing premises Contact surface Type S (coming soon, shared-use manufacturing facilities) and more.

Disclaimer: Informational and educational purposes. Self-help services (not legal advice). Site is not affiliated with any state agency. Note that site might not contain the most updated information. Your receipt of any information from this site does not create a relationship. Prior results do not guarantee or suggest a similar result in other matters. No promise is made with regard to services or content's reliability, availabilty, or ability to meet any needs. Information and services provided "AS IS."

All Rights Reserved