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

California Cannabis Microbusinesses

Frequently Asked Questions

Are Microbusinesses required to identify their business organizational structure?

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

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.

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.

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.

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.

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

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