Licensing Law & Compliance Attorney for California Cannabis Regulations, 2018 Important News, Attorney Information & Updates


California Cannabis Regulations


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
email: bcc@dca.ca.gov

Manufactured Cannabis Safety Branch (CA Department of Public Health)
PO Box 997377, MS 7606, Sacramento CA 95899-7377
Email: mcsb@cdph.ca.gov
Phone: 855-421-7887

CalCannabis Cultivation Licensing (CA Department of Food & Agriculture)
Phone: 1-833-CALGROW (1-833-225-4769)
Email: calcannabis@cdfa.ca.gov


Scope of Licenses:

Medicinal (M-) and Adult-Use Recreational (A-):
  • Type 1 (Cultivation; Specialty outdoor; Small)
  • Type 1A (Cultivation; Specialty indoor; Small)
  • Type 1B (Cultivation; Specialty mixed-light; Small)
  • Type 1C (Cultivation; Specialty cottage; Small)
  • Type 2 (Cultivation; Outdoor; Small)
  • Type 2A (Cultivation; Indoor; Small)
  • Type 2B (Cultivation; Mixed-light; Small)
  • Type 3 (Cultivation; Outdoor; Medium)
  • Type 3A (Cultivation; Indoor; Medium)
  • Type 3B (Cultivation; Mixed-light; Medium)
  • Type 4 (Cultivation; Nursery)
  • Type 5 (Cultivation; Outdoor; Large)
  • Type 5A (Cultivation; Indoor; Large)
  • Type 5B (Cultivation; Mixed-light; Large)
  • Type 6 (Manufacturer 1) Extraction: Non-volatile Solvents, Mechanical Methods
  • Type 7 (Manufacturer 2) Extraction: Volatile Solvents
  • Type N Infusions (optional packaging and labeling)
  • Type P Packaging & Labeling Only
  • Type S (coming soon, shared-use manufacturing facilities)
  • Type 8 (Testing Laboratory)
  • Type 9 (Non-Storefront Retailer)
  • Type 10 (Retailer)
  • Type 11 (Distributor)
  • Type 12 (Microbusiness)
  • Type 13 (Distributor Transport Only)
  • Type 14 (Cannabis Event Organizer)

California Cannabis Regulation References:


Resources:



Frequently Asked Questions

Where can I read more about California’s cannabis licensing process?

For information about state licenses for cannabis farmers, please visit the CalCannabis Cultivation Licensing website at calcannabis.cdfa.ca.gov. For details on other types of cannabis licensing in California, including manufacturing (such as edibles), testing, distribution, and retail, go to the California Cannabis Portal at cannabis.ca.gov.

What is the emergency rulemaking process?

Before California Governor Jerry Brown approved the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) in June 2017, the California Department of Food and Agriculture (CDFA) had followed the regular rulemaking process and submitted proposed regulations for the Medical Cannabis Regulation and Safety Act to the Office of Administrative Law. However, once MAUCRSA became law, CDFA had to withdraw those regulations; instead, a new set of regulations consistent with changes in the new law was proposed in November 2017. CDFA followed the emergency rulemaking process for these regulations. This will be followed immediately by the regular rulemaking process to make the regulations permanent. To initiate the emergency rulemaking process, the state agency files emergency regulations with the Office of Administrative Law (OAL) at least 10 calendar days before the effective date. During the first five days of OAL’s review period, the public may submit comments to OAL, with a copy for the state agency. The state agency has until the eighth day of OAL’s 10-day review period to submit to OAL a rebuttal to any public comments; however, this step is optional. The OAL’s deadline for a decision is on the tenth day after the emergency regulations were filed, and, if approved, the emergency regulations are filed with the Secretary of State and will become effective immediately for 180 days. (MAUCRSA allows for one 180-day re-adoption if the agency is making progress toward adopting the permanent regulations.) For an illustrated step-by-step guide to this process, see the flowcharts on pages 5 and 7 for regular rulemaking and emergency rulemaking.

What is the California Department of Food and Agriculture’s regulatory authority for licensing cannabis cultivators and implementing a track-and-trace system?

When a state legislature passes—and the governor approves—a law (also known as a statute), this enacts a new program or changes the laws governing an existing program. After the law’s passage, one or more state agencies must adopt new regulations, amend existing regulations, and/or repeal existing regulations to ensure the program runs effectively. When the California State Legislature passed the Medical Cannabis Regulation and Safety Act in 2015, and California voters passed the Adult Use of Marijuana Act (Proposition 64) in 2016, both acts designated responsibilities for oversight of commercial cannabis to several state agencies. The California Department of Food and Agriculture (CDFA) was granted the authority to (a) establish a cannabis cultivation licensing process for the state, and (b) develop a track-and-trace system to record the movement of cannabis and cannabis products through the state’s supply chain. As a result, CDFA created a new division called CalCannabis Cultivation Licensing, which is tasked with overseeing these projects. On June 27, 2017, California Governor Jerry Brown signed the cannabis trailer bill (also known as California Senate Bill 94). A trailer bill is legislation that implements specific changes to the law to enact the state budget. Generally a separate trailer bill is needed for each major area of budget appropriation, such as transportation, human services, education, revenue, or, in this case, cannabis. These bills typically are negotiated as part of the entire budget package each fiscal year. In this instance, the cannabis trailer bill effectively merged the two existing cannabis bills—the Medical Cannabis Regulation and Safety Act and the Adult Use of Marijuana Act—into one streamlined bill: the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). Having one comprehensive state law will provide for a more unified and efficient regulatory process governing both medicinal and adult-use (recreational) cannabis. For a link to the most recent version of MAUCRSA, please visit the CalCannabis website at calcannabis.cdfa.ca.gov.

What is the process for creating the state cannabis cultivation regulations?

The California Administrative Procedure Act establishes the rulemaking procedures and standards for California’s state agencies. The act’s requirements are designed to provide the public with a meaningful opportunity to participate in the adoption of state regulations and help ensure the regulations are clear, necessary, and legally valid. The majority of adopted regulations that conform to the Administrative Procedure Act are submitted to the Office of Administrative Law as a “regular rulemaking.” Unless a proposed rulemaking action is submitted to the Office of Administrative Law as an “emergency rulemaking,” or is exempt from the Administrative Procedure Act, the regular rulemaking process must be followed when a state agency undergoes a rulemaking action.

What is the regular rulemaking process?

The state agency must prepare the following documents and submit them to the Office of Administrative Law to initiate the regular rulemaking process: Economic Impact Assessment (for nonmajor regulations with less than $50 million in economic impacts) or Standardized Regulatory Impact Assessment (also known as a SRIA, pronounced sir-RHEE-uh, for major regulations with more than $50 million in economic impacts) – A SRIA is required with the California Department of Food and Agriculture’s (CDFA) regulatory package because the cannabis cultivation regulations are considered a major regulation. It includes information on how the regulations will impact businesses and jobs and the potential impacts on competition and investment in California. The SRIA is posted on the California Department of Finance website at dof.ca.gov. Economic and Fiscal Impact Statement (Form STD.399) – This is a California Department of Finance form that includes information on the estimated economic and fiscal monetary impacts of the proposed regulations. Notice of Proposed Action – This notice provides critical information about the regulations, including a summary of existing laws that pertain to cannabis, the specific statutory authority that requires CDFA to create regulations, and details about the process for receiving the public’s comments. Initial Statement of Reasons (ISR) – The Initial Statement of Reasons provides the rationale behind CDFA’s decisions for including each section of the regulations and describes the purpose, need, and benefits of the regulations. It also identifies the supporting materials used to make regulatory decisions. Proposed Text of Regulations (Express Terms) – This text identifies any proposed changes to the California Code of Regulations. The state agency must publish the Notice of Proposed Action in the California Regulatory Notice Register and mail a copy to those who have requested it. The agency also must post on its website the Notice of Proposed Action, Initial Statement of Reasons, and the Proposed Text of Regulations. Once a Notice of Proposed Action has been issued by the state agency and published by the Office of Administrative Law, a regular rulemaking record will officially be opened and the minimum 45-day public comment period commences. The state agency may hold a public hearing; if the agency does not schedule a public hearing, anyone interested in having one may submit a written request for a hearing at least 15 days prior to the close of the written comment period, and that request must be granted. The state agency then receives and reviews the comments received during the official public comment period—and must summarize and respond to all of the comments. Some comments might ask for clarification of the proposed regulations, other comments might propose regulatory changes. If the state agency makes changes to the regulations, the changes are categorized as follows: Nonsubstantial Changes—Or No Changes Nonsubstantial changes do not alter the regulatory effect of the proposed provisions, and therefore the rulemaking process continues. The state agency updates the Informative Digest and prepares a Final Statement of Reasons (with a summary and a response to the public comments) and a Final Text of Regulations. Substantial and Sufficiently Related Changes These are changes considered reasonably foreseeable based on the Notice of Proposed Action and must be made available for public comment for at least 15 days. The state agency mails a notice of opportunity for commenting on the proposed changes (along with a copy of the proposed changes) to each person who has submitted written comments about the proposal, testified at an official public hearing (and provided contact information), or asked to receive any notices of modification. The agency also must post this notice on its website. When no further substantial changes are made to the proposed regulations, the agency updates the Informative Digest and prepares the Final Statement of Reasons (with a summary and a response to the public comments) and the Final Text of Regulations. Substantial Changes Not Sufficiently Related—Or Major Changes These are changes to the original proposal that are not reasonably foreseeable based on the Notice of Proposed Action. The state agency is obligated to publish another Notice of Proposed Action in the California Regulatory Notice Register, and hold another 45-day or longer public comment period. When no further substantial changes are made to the proposed regulations, the agency updates the Informative Digest and prepares the Final Statement of Reasons (with a summary and a response to the public comments) and the Final Text of Regulations. The state agency must transmit a rulemaking action to the Office of Administrative Law for review within one year from the date the notice was published in the California Regulatory Notice Register. Once submitted, the Office of Administrative Law has 30 working days to conduct a review of the rulemaking record. Generally, regulations go into effect on one of four quarterly dates, which are based on the dates the final regulations are filed with California’s Secretary of State: January 1, April 1, July 1, and October 1. However, an effective date may vary if a specific effective date is stated in statute or other law, the adopting agency requests a later effective date, or the agency demonstrates good cause for an earlier effective date. For an illustrated step-by-step guide to this process, see the flowcharts on pages 5 and 7 for regular rulemaking and emergency rulemaking.









California Universal Symbol for Cannabis


California Universal Symbol for Cannabis

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


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