The CDFA recently released guidance concerning the industrial hemp market in California.

There has been a lot of confusion surrounding the regulations of this plant.

​In this two part series, we’ll break down the state’s policy regarding hemp, as well as give you some insider tips for entering this new market successfully.

To begin, it’s important to establish the key difference between cannabis and hemp.

Cannabis is a “family of plants with two classifications – Indica and Sativa.” Hemp is a member of the Cannabis Sativa family.

As a result, hemp contains a very low concentration of THC. Marijuana, which is considered a member of either the Indica or Sativa families, has concentrations of THC between 15% - 40%.

​The state of California has a very specific definition of what qualifies as hemp vs. cannabis.

According to the CDFA: 

​“Industrial hemp" means a crop that is limited to types of the plant Cannabis sativa L. having no more than three-tenths of 1 percent tetrahydrocannabinol (THC) contained in the dried flowering tops, whether growing or not; the seeds of the plant; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin produced therefrom.”

Unlike cannabis, which is still classified as a Federal Schedule I Controlled Substance (subject to the 280E regulation), hemp is not federally regulated. The Agricultural Improvement Act of 2018 went into effect at the beginning of this year, thereby removing hemp from the list of federally controlled substances. This is a new market that isn’t subject to the same strict financial and tax codes of the cannabis market.

Simultaneously, in September, 2018, Governor Jerry Brown signed and approved Senate Bill 1409 which permits the cultivation of industrial hemp by California growers. Before this bill was signed into law, only growers who qualified under the state’s pilot program and the Agricultural Act of 2014 could cultivate industrial hemp.

​The cannabis market is a tightly regulated, highly competitive space. Licensing limits and zoning restrictions make it expensive and difficult for new entrants to gain traction in this billion dollar market. Industrial hemp, however, presents an alternative opportunity for cultivators to participate in the cannabis market without the high barriers to entry.

California state law as it relates to hemp cultivation is a little hard to parse. The reason for this is the state regulations don’t align perfectly with the federal regulations that deregulate hemp as a controlled substance.

California may allow for commercial hemp cultivation, but conflicting articles in the 2018 and 2014 Farm Bill do not.

The previous 2014 Farm Bill does not permit the cultivation of hemp for “purely commercial” reasons. However, the 2018 Farm Bill deregulates commercial hemp provided that states submit “hemp production plans” to the USDA.

​So, in theory, California’s state plan must be reviewed and approved by the USDA – which would impact hemp cultivators down the road.

​In the meantime, California has begun the process of accepting hemp cultivation registration applications – here’s what you must fill out and confirm to begin planting hemp in California.

If you wish to become a grower of industrial hemp, the first step is to be approved by your county agricultural commissioner. You can find your county ag commissioner’s office on this map provided by the CDFA.

​Unlike the commercial cannabis market, there is no state registration required to grow industrial hemp. Prospective growers only need to complete a county registration to grow industrial hemp. Applications for both seed breeders and growers can be found on the CDFA Industrial Hemp Program website. The registration fee is $900 and registration is valid for one year.

Applications for commercial cultivation and seed breeding don’t vary dramatically. Generally speaking, you will be asked to provide basic information about the business owner, the cultivation site, your business plan, GPS coordinates, and other site information.

Some counties are not accepting hemp applications. These counties include: Amador, Calaveras, Glenn, Humboldt, Lassen, Marin, Mariposa, Mendocino, Merced, Modoc, Mono, Monterey, Napa, Nevada, Orange, Placer, Sacramento, San Bernardino, San Joaquin, Santa Barbara, Shasta, Sierra, Siskiyou, Sonoma, Tehama, Trinity, Tulare, Tuolumne, Yolo, and Yuba. ​

There are two potential ways to participate in California’s hemp market: as a hemp seed breeder or as a hemp cultivator.

​If you plan to cultivate hemp for commercial purposes, you should fill out the application for growers. If you plan to cultivate industrial hemp for seed development or production, you should complete the application for breeders. If you wish to do both, complete both applications.

In Part 2 of our Guide on How to Start a Hemp Farm in California, we’ll outline more detail about the importation and movement of industrial hemp; details on manufacturing, processing, and selling industrial hemp; and tips on how to establish your hemp business and get started in this market successfully.

​To speak to one of our experts with any questions regarding the hemp industry, click the button below to get started.

Just this month, California Department of Public Health (CDPH) approved the re-adoption of emergency regulations for cannabis manufacturers for an additional 180 days. What does this mean, and how does it impact your cannabis business?

What are California’s cannabis emergency regulations?

Just a quick refresher: the emergency regulations cover the policy known as MAUCRSA, the Medicinal and Adult-Use Cannabis Regulation and Safety Act. These regulations outline California’s standards and licensing requirements for commercial cannabis manufacturers. They were originally passed in December 2017, and as is the standard for “emergency regulations,” valid for a period of 180 days. They were renewed for another 180 days just recently – with a few key changes.

What are the changes to California’s re-adopted emergency regulations?

The biggest change is the removal of restrictions created by the adult use (“A”) and medicinal (“M”) license designations. Originally, MAUCRSA regulations required cannabis plants be designated for either the A or M market at the cultivation stage. Plan material and cannabis products resulting from cultivation had to maintain that A or M designation while moving through the supply chain – complicating logistics and operations for cannabis businesses across the market.

In the newly re-adopted cannabis emergency regulations, the CDPH is attempting to resolve some of the A and M confusion. They have removed restrictions of A and M license designations, meaning businesses can complete one license application for use in both the adult-use and medicinal markets. Starting June 6, 2018, cannabis and cannabis products will only be labeled as adult-use or medicinal at the time of retail sale (with one exception for higher-THC products that are only allowed in the medicinal market).

To review the re-adopted emergency regulations in detail, click this link.

What does that mean for cannabis cultivators?
​
There are a couple scenarios where you might have questions, especially if you’re still waiting to hear about your cannabis cultivation license. If you submitted two applications, one for an A license and one for an M license, here are a few points of clarification:

• CDPH will use your A license application as the primary application and aggregate the total gross revenue of your A & M license to determine your license fee.
• If you have paid two application fees, the balance of the funds will be applied to your license fee. These fees, as mentioned above, are due upon approval of your application by the Department and determined by the aggregate total gross revenue of your two license applications.
• The label, “FOR MEDICINAL USE ONLY” is still required on products with more than 1,000 milligrams of THC. These products can only be sold in the medicinal market and must be labeled by the manufacturer.
  • Other products – those that can be sold in either the M or A market – will be labeled with this phrase by retailers at the time of sale to a medicinal consumer.

If you have any specific questions about the MAUCRSA emergency regulations or any of these changes, please get in touch with the experts at California Cannabis CPA.

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This week, we have updates from the cities of Jurupa Valley, San Rafael and Goleta. Also, we share a few cities that are accepting applications on an ongoing basis for cannabis cultivation licenses.

• The city of Jurupa Valley is proposing an initiative that would allow (but regulate) medicinal and adult-use cannabis. The city is considering allowing retail, delivery, cultivation, microbusinesses, manufacturing, distribution, testing and nurseries within their borders. We will continue to keep you updated as we get more news!
• The city of San Rafael has completed a final adoption of an ordinance that amends current code. This amendment will allow for issue of a cannabis distribution license.
• The city of Goleta is considering moving forward with a cannabis business license ordinance. But first, they are holding a roundtable this week and would like your input!
  • The roundtable is being held Wednesday, June 6, 2018 at 1:00 p.m. in City Council Chambers. A consulting group is leading the charge and will ask for feedback on local’s concerns regarding any operations, the cannabis application process, enforcement of the current laws and future potential regulations.  
  • Questions can be directed towards the city manager (Carmen Nichols) at cnichols@cityofgoleta.org or 805-961-7522.​

In addition, these cities are accepting cannabis cultivation applications on an ongoing basis.  While some cities may decide to have hard application deadlines, these cities keep their acceptance windows open ended (for now) for cultivation licenses:

• San Bernardino
• Sacramento
• City of Adelanto
• Palm Springs
• Port Hueneme
• City of Desert Hot Springs
• Cathedral City
• Willits
• Point Arena

California Cannabis CPA has helped many cannabis businesses with the initial research that goes into finding the right city for your business. Need some assistance with a particular license? Ask how we can help.

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Whether you’re a cultivator, manufacturer, retailer or distributor, it’s important to become familiar with California’s Cannabis Track-and-Trace system. Through a platform called Metrc, California state officials can regulate and supervise the cannabis industry. Here are some of the basic things you need to know about this system.

What is the Cannabis Track-and-Trace System?
The California Cannabis Track-and-Trace system tracks all commercial cannabis and cannabis products—from cultivation to sale. CCTT is run by the the CalCannabis Cultivation Licensing division of the California Department of Food and Agriculture, which covers tracing cannabis in three different branches: Licensing, Compliance and Enforcement, and Administration.

Do I need to know about CCTT?
Yes. If you are a licensed cannabis business, you are required to use the CCTT system to record, track and maintain information about your cannabis and cannabis product inventories. CCTT is hosted on a system called Metrc, which is a cloud hosted online reporting tool you can use to maintain information about your cannabis products as they make their way from seed to sale.

Why does CCTT exist?
Cannabis Track-and-Trace is important for a few reasons:

• Quality assurance: to detect traces of pesticides, record THC / THCA levels, and make sure cannabis products are safe for consumption.
• Transport tracking: for oversight into the movement of cannabis and cannabis products, including the chain of custody from cultivator to customer
• Manufacturing monitoring: for oversight into the transformation of plant material, as well as the proper recording of plant waste.
• Supply chain oversight: to maintain insight into the location and amount of batches of products at any given time.
• Compliance: to maintain the regulated standard of packaging, labeling, taxes, etc.
• Accounting: to minimize the black market and track the growth of the legal market.

Basically, Metrc allows the state government to have oversight into the cannabis inventories, maintain quality control, make sure all taxes are being paid correctly, and regulate the transfer of cannabis supplies from cultivator to customer.

How do Metrc and CCTT work?
Metrc uses two types of tags to keep tabs on cannabis and cannabis products. The two tag categories are Plants and Packages.

Plants are are further categorized as either immature or flowering. Immature plants are cannabis plants that are not flowering. Flowering plants are those that have formed a mass of pistils measuring greater than one half inch wide at its widest point.  All plants must enter the system through immature plant lots (up to 100 plants/lot). With these lots, up to 100 plants are assigned a Unique Identifier Plant tag. Each immature plant gets a label with the lot UID, while individual flowering plants get a Plant tag.  

Meanwhile, Packages are created from immature plants, harvest batches, testing lab samples, production batches, and other packages. Any amount of cannabis or cannabis product that may be sold, manufactured or transferred must be placed into one or more packages. Then, each package receives an UID package tag created in Metrc. Make sure that any product that you intend to transfer from one licensee to another has an UID physically attached to the package.

What is a unique identifier (UID)?
The UID is a unique alphanumeric code or designation used to uniquely identify cannabis and cannabis products on a licensed premises. As an annual licensee, you will be responsible for assigning a CCTT-Metrc nonrepeating UID to each immature lot, flowering plant, and distinct cannabis product. Each UID then keeps track of the cannabis products as they make their way through the supply chain.

How will I get my UIDs? And do I have to pay for them?
When you’re set up in the Metrc system (more on that in a minute), you’ll be able to order your UIDs through the system. The cost of UIDs is factored into the fee for your state’s cannabis license.

How do I use my UIDs?
Let’s divide this up once more into UIDs for Plants versus Packages.

• Plants: assigned on UID plant tag per immature plant lot (containing up to 100 plants per lot). Every plant in the lot must be labelled with the corresponding UID.
  • Flowering plants: assign a plant tag to every individual plant when moved to a canopy or when the plant flowers. These tags must be attached to the main stem a the base of each plant using a tamper evident strap or zip tie, and the tag must be clearly visible.
• Packages: package tags are peel and stick. Use the package tag for transferring packages and for the tracking of finished product for each licensee in the chain of custody.

What do you need to do now?
To get started using Metrc, follow these steps:

• Start by submitting your annual cultivation license application and completing the required training. You can submit your license application at the CalCannabis Licensing Site. Note that you MUST complete the training to gain access to the Metrc system.
• When you have finished the training, obtain approval of annual license. Call or email Metrc Support to receive confirmation of annual license and training completion.
• Next, complete your login credentials after receiving a welcome email:
  • Click on the first link in the "Welcome to Metrc" email. This will direct you to the website where you set-up your account.
  • Accept State Attestation and Metrc Terms and Conditions.
  • Setup a User Profile Introduction to California Cannabis Track. For tips on how to set up your account, read this presentation released by the CDFA.

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For more on how to get started using Metrc, follow the instructions listed in the primer released by the CDFA. If you get stuck or have any questions along the way, reach out to the experts at California Cannabis CPA to get advice.

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The local government of Cathedral City, CA has adopted several ordinances that define a set of regulations allowing certain Medical Cannabis Businesses to operate.  Anyone who would like to originate a Medical Cannabis Business within the City must obtain prior approval from the City before beginning operations.  Cathedral City issuing Conditional Use Permits for Dispensaries, Cultivation and Manufacturing.

Cathedral requires each Medical Cannabis Business to obtain a Medical Cannabis License and a Conditional Use Permit in addition to any other generally applicable permits, licenses or approvals that are required of businesses.  A separate Medical Cannabis License and Conditional Use Permit are required for each proposed location.  Prospective Medical Cannabis Businesses may submit applications for a Medical Cannabis License and a Conditional Use Permit at the same time, or may wait until after the Medical Cannabis License has issued to apply for a Conditional Use Permit.  A Conditional Use Permit cannot be issued until after the Medical Cannabis License has been approved.  A Medical Cannabis License must be renewed annually.

Follow these steps to obtain the required permits for a Medical Cannabis Business in Cathedral City, CA.

Step 1:  Determine an Acceptable Location for a Medical Cannabis Business

Step 2:  Complete the application process for a Medical Cannabis Business License in Cathedral City, CA.

Step 3:  Complete and Review the application process for a Medical Cannabis Business Conditional Use Permit (CUP) in Cathedral City, CA.

Step 4:  Complete Criminal History Check (Live Scan)

Prior to applying:

• Review the information and learn about the application process and which documents you will need. 
• Taking a good look at the entire application and ensure all the of required information is available. 

Step 1:  Determine an Acceptable Location for a Medical Cannabis Business
 
The application must include the address and a detailed description of the proposed Medical Cannabis Business location.  Dispensaries, Cultivation Sites and Manufacturing Sites are only being permitted in certain zones listed in Section 9.108.090 of the City Code.  Dispensaries may be located in the I-1, CBP-2, and PCC zones.  Cultivation Sites may be located in the I-1, CBP-2, PCC and OS zones.  Manufacturing Sites may be located in the I-1 zone.  Dispensaries, Cultivation Sites and Manufacturing Sites are subject to other locational restrictions, as stated in Section 9.108.090 of the City Code, including minimum distance requirements from schools, day-care centers and youth centers, residential zones, and East Palm Canyon Drive.  Any person who desires to open a Medical Cannabis Business in the City should ensure that the proposed location of the use satisfies the City’s locational restrictions in Section 9.108.090 prior to filing an application for either a Medical Cannabis License or a Conditional Use Permit.
​

• Dispensaries are prohibited within 600 feet of a school, day care center, or youth center; or within 250 feet of East Palm Canyon Drive or a residential zone as defined by the City’s Zoning Ordinance and dispensaries are only allowed in the I-1 Light Industrial, CBP-2 Commercial Business Park District or the PCC Planned Community Commercial District zoning areas.
• Cultivation, transportation, distribution site facilities are prohibited 600 feet of a school, day care center or youth center, or within 250 feet of East Palm Canyon or 300 feet of a residential zone as defined by the City’s Zoning Ordinance and cultivation, transportation and distribution facilities are only allowed in the I-1 Light Industrial District, CBP-2 Commercial Business Park District, PCC Planned Community Commercial District or the OS Open Space zoning areas.
• Manufacturing Facilities are prohibited 600 feet of a school, day care center or youth center, or within 250 feet of East Palm Canyon or 300 feet of a residential zone as defined by the City’s Zoning Ordinance and are only allowed in the I-1 Light Industrial District, allowed in I-1 Light Industrial Zoning District and the CBP-2 Commercial Business Parks. 

City of Cathedral Zoning Map:  http://www.cathedralcity.gov/home/showdocument?id=5350

Step 2:  Complete and Review the Application Process for a Medical Cannabis Business License in Cathedral City, CA.

Medical Cannabis Business License Application

Completed applications need to be submitted in person at:

Cathedral City Community Development Department
68-700 Avenida Lalo Guerrero
Cathedral City, CA 92234

All applicants are required to complete the application form and submit two (2) copies.  A deposit in the amount of $7,500.00 is required along with the application and the following additional documentation: 

• Proof that the applicant is, or will be, entitled to the possession of the premises for which the application is submitted.  Acceptable evidence includes leases, rental agreements, recorded deeds evidencing ownership, and letters of intent.  If the Medical Cannabis Business is proposed to be located on real property that is not owned by the applicant, a notarized statement from the property owner that it agrees to a Medical Cannabis Business being operated on the property.  
• Documented ownership structure such as; articles of incorporation, by-laws, organizational minutes, articles of organization, and partnership agreements.  The City may accept other evidence as determined by the City Manager.
• A detailed description of the products and services to be provided by the Medical Cannabis Business.
• A floor plan, drawn to scale on no smaller than 8.5 x 11-inch paper providing, at a minimum, all interior dimensions of the premises and the layout of the proposed Medical Cannabis Business.  The floor plan must show which areas are limited access, all ingress and egress points, the principal uses of the floor area depicted, and the locations of security cameras.
• A security plan that addresses how the applicant intends to comply with and implement the requirements of Chapter 5.88.065 and other relevant provisions of the City Code and state law, including, but not limited to, a description of how the security measures are sufficient to ensure the safety of members and employees, protect he premises from diversion and theft, and ensure that buildings are secured sufficiently to prevent unauthorized entry.  The security plan shall include a diagram indicating all areas to be covered by 24-hour security cameras and the methods the Medical Cannabis Business will use to ensure medical cannabis is under secure control of its staff at all times.
• A employee list.  An updated employee list shall be provided to the City if there are any changes to the employee list at any time prior to the approval or denial of the Medical Cannabis License.
• If the application is for a Dispensary, an estimate of the size of the group of ID Card holders and/or Qualifying Patients who will be served by the Dispensary, and a statement as to whether delivery service will be provided.
• If delivery service will be provided, an explanation of the extent of such service and a detailed delivery plan explaining how the delivery service will comply with applicable Cathedral City ordinances and state law.
• If the application is for a Cultivation Site, a declaration that the applicant is an “agricultural employer,” as defined in the Alatorre-Zenovich-SunlapBerman Agricultural Labor Relations Act of 1975 (Labor Code section 1140.4(c)).  
• A map prepared and signed by a licensed land surveyor stating that the premises meets the distance requirements set forth in Section 9.108.090 of the City Code.  The distances shall be measured in the manner provided for in Section 9.108.090.  If the Business is proposed to be located within a multi-unit building, the measurements shall be taken from the nearest point of the suite in which the Business will be located, provided that the suite has been legally established and approved by the City prior to the submission of the application for the License.

The applicant will be notified in writing by the City Manager of the decision to approve or deny the Medical Cannabis License.  If approved the license will not be issued until the applicant posts a cash deposit or letter of credit in the amount of $5,000 as the security required by Section 5.88.040(I)(5) of the City Code.  The Medical Cannabis License will not be considered final, and no Conditional Use Permit may be issued, until this amount is posted.

Step 3:  Complete and Review the Application Process for a Medical Cannabis Business Conditional Use permit (CUP) City of Cathedral, CA.

Conditional Use Permit Application

Applicants may apply for the Conditional Use Permit CUP at the same time as the Medical Cannabis License or they can wait until the Medical Cannabis License is approved. The City will not schedule the Conditional Use Permit for a public hearing before the Planning Commission until a Medical Cannabis License has been approved by the City Manager and the appeal period has expired or all appeals have been exhausted.  The Conditional Use Permit application might require at least one site visit by City Planning staff and the potential need to revise submitted plans to ensure they comply with all applicable laws and regulations prior to scheduling of the hearing before the Planning Commission.

The CUP application form must be submitted to the City in person, along with the following documentation: 

• Proof that the applicant has received a Medical Cannabis License for the premises, or a statement the applicant has applied for a Medical Cannabis License concurrently with the Conditional Use Permit.
• Plans and specifications for the interior of the building as built and plans and specifications for any proposed alterations to the building, if the Medical Cannabis Business is proposed to occupy an existing building.
• A plot plan, detailed sketch of the interior of the premises, and an architect’s drawing of the building, if the Medical Cannabis Business is proposed to occupy new construction,
• For new construction, a site plan of the premises evidencing that the design of the premises conforms to City Code and design requirements. 
• For Cultivation Sites, verification of the source(s) of water for cultivation. 
• For Manufacturing Sites, A report from a Professional Engineer that details the type of equipment that will be used to extract cannabinoids from Medical Cannabis. If Flammable Gas, Flammable Liquefied Gas, Flammable and Combustible Liquids, or compressed carbon dioxide (CO2) are used for extraction, then the report must certify that only closed-loop extraction system(s), that are UL or ETL listed or have a sign off by a Professional Engineer, capable of recovering the solvent are utilized.
  • A separate diagram of any room where extraction occurs that details the location of the extraction equipment, areas of ingress and egress, emergency eye-wash station, any other fire suppression or emergency equipment required by Title 8 of the Cathedral City Municipal Code, City and California building codes, fire codes, electrical codes and all other applicable laws. 

Step 4:  Complete Criminal History Check (Live Scan)

Once an application has been submitted, applicants may contact the Police Department at (760) 770-0304 to schedule an appointment to start the LiveScan fingerprinting and the background check process.  The background check can begin after the application is submitted or after the City has completed the courtesy pre-screening or made a formal determination that the application is complete.  

At the time the application is submitted the City will provide the applicant with a Live Scan form for each person identified in the application as an owner, director, officer, or person who is managing or otherwise responsible for the activities of the proposed of the Medical Cannabis Business.  Live Scan forms will also be available on the City’s website.

Background checks consist of a two-step process:

Step 1:   Each individual associated with the application must be fingerprinted using Live Scan technology.  

• The individuals must personally appear at the Cathedral City Police Department and present a completed Request for Live Scan Service form and valid Driver’s License or Identification Card. 
• The City will not allow individuals to be Live Scanned at any location other than the Cathedral City Police Department. 
• A representative from the Cathedral City Police Department will scan the individual’s fingerprints and transmit them to the Department of Justice. 
• Individuals should schedule an appointment to be Live Scanned with the Cathedral City Police Department by calling (760) 770-0380.  The date and time stamped copy of the Medical Cannabis License application form returned to the applicant by the Planning Division must also be submitted to the Police Department. 

Step 2:  The background check shall generally consist of, but not be limited to:

• A review of each individual’s twenty (20) year residential history, a review of public records, a search to determine probation status, parole status, contacts with law enforcement; and
• An interview or interviews with the Background Investigator as appropriate. 

The Background Investigator will submit a full report to the Chief of Police upon completion of the background check.  The Background Investigator shall be tasked solely with providing factual information in his or her report in order to provide the Chief of Police with a sufficient factual basis to decide as to whether the application should be approved or denied.

Once the Chief of Police reviews the report from the Background Investigator they will make a recommendation as to whether the criminal history of one or more of the individuals indicates that Good Cause exists to deny the application. The Chief of Police’s recommendation shall be issued in writing within ten (10) calendar days of his receipt of the report from the Background Investigator and shall include an explanation as to the Chief of Police’s reasoning in making the recommendation, including the analysis bridging the facts to the ultimate conclusions.   

Currently, the City of Desert Hot Springs is accepting applications for temporary marijuana facilities.  These temporary options allow facilities in the City Desert Hot Springs to begin operation while the state develops the appropriate regulations for  Proposition 64 (Prop 64), the “Control, Regulate and Tax Adult Use of Marijuana Act”. 

Proposition 64 was designed to reshape the use and taxes of marijuana in the state including designating specific agencies to regulate and licenses of the marijuana industry in California.  As the state works to create licensing procedures that meet the new law by January 1, 2018, cities like Desert Hot Springs have decided to implement temporary processes to cover businesses in the interim. 

Anyone interested in submitting a temporary marijuana facility application must go through the process outlined below:

Step 1:  Select A Temporary Facility Option

Step 2:  Obtain Appropriate Permits

Step 3:  Submit Application to Initiate the Approval Process

_____________________________________________

Step 1: Select A Temporary Facility Option

The City of Desert Hot Springs is offering three options for temporary marijuana facilities.  Marijuana businesses must determine the best temporary option based on business needs.  Below are three options outlined by the City:

• Option 1: Conditional Use Permit (CUP): This option works for marijuana businesses that do not have a facility. Under this option the City allows the marijuana business to submit an “Amendment (pursuant to the Desert Hot Springs Municipal Code) to an existing Conditional Use Permit” to add a “Temporary Interim Phase”.  This phase allows for the construction of “temporary medical marijuana facilities”.  During this phase approved businesses will be issued a Temporary Certificate of Occupancy and Temporary Regulatory Permit by the City. 

 

• Option 2: Minor Modification Permit: This option works for marijuana businesses who already have been approved for construction but need to make changes to the existing project.   Marijuana business can “construct a portion of the already approved project” under an existing CUP.  The marijuana business should submit an application for Minor Modification to the CUP.  This will allow the construction of a portion of an already approved project under the existing CUP.  If approved the City will issue a Temporary Certificate of Occupancy and Temporary Regulatory Permit.

 

• Option 3:  Temporary Permit for Approval: This option offers a place for cultivation and manufacturing while the rest of the project is under construction.  According to the City of Desert Hot Springs, the marijuana business “may submit an application for a Temporary Permit to the approved Conditional Use Permit (pursuant to the Desert Hot Springs Municipal Code Chapter 17.136) to allow 1 (One) Administrative Trailer and 1(One) Shipping Container that may be used for Temporary Indoor Cultivation, to allow the issuance of a Temporary Certificate of Occupancy and Temporary Regulatory Permit while the rest of the project is under construction.”

Step 2:  Obtain Appropriate Permits 

All marijuana businesses must complete the Marijuana Facility Regulatory Permit application.  Marijuana businesses who want to open prior to the state issuing permits will be required to complete a Conditional Use Permit application.  This permit covers each of the three options for temporary facilities outlined by the City.  Each option has its own requirements, process and fees for a temporary facility approval.

The City encourages that businesses seeking temporary facilities meet with the Community Development Director in advance of submitting an application.  To schedule an appointment, contact Daniel Porras at (760) 329-6411 or dporras@cityofdhs.org.  

Step 3:  Submit Application to Initiate the Approval Process

Each option has its own application process.  Since each permit is temporary, the City is requiring that progress is shown on the project once Temporary Certificate of Occupancy has been issued. This progress can be demonstrated by documentation from the developer to the Community Development Director at the City.  The Temporary Certificate of Occupancy will become void in 180 days if the project fails to show progress.

All fess must be paid in advance.  

Option 1:  Conditional Use Permit

To obtain a temporary permit under Option 1, a “noticed” hearing is required with the City’s Planning Commission.  The Planning Commission will decide on issuing the temporary permit and the following will be issued upon approval: 1) Temporary Interim Phase; 2) Temporary Certificate of Occupancy; and 3) Temporary Regulatory Permit. 

The following information should be included in the application:

• Approval from utility agencies for permanent and temporary services
• Easy access for the City of Desert Hot Springs Police and Fire Department (turnaround areas, etc.)
• A waste disposal plan
• Building ability to meet Police and Fire Department Codes for all site and structures
• Any temporary structures must meet all City Building and Safety (structural, HVAC, plumbing, etc.).
• Security plan (with fencing, cameras, security, etc.)

Application fee:  $3,725

Application Approval Timeline:  Contact City Staff

Option 2: Minor Modification Permit

Minor Modification permits require that the marijuana business have City Staff review and approve the permit prior to making the modifications.  Applications should include the following information:

• The information physical structure including: exact location, size, shape and color. 
• A plan for public improvements must be completed prior to issuance of the Temporary Certificate of Occupancy.
• Storm water and drainage plan
• The property must contain proper access for Police and Fire Department with proper access to site, entry, and turn-around areas.
• The temporary facility (proposed portion of construction) must meet all code requirements for occupancy (structural, HVAC, plumbing, etc.).
• A site security plan with fencing, cameras and guards

Application fee:  $245

Application Approval Timeline:  2-3 weeks

Option 3:  Temporary Permit to the Conditional Use Permit

Temporary Permit to the Conditional Use Permits will only be issued for cultivation and manufacturing. 

Under Option 3, marijuana businesses can a request an extension on temporary facilities.  They must make this request 30 days prior to their 180-day permit’s expiration and it must be in sent to the Community Development Director in writing.  If the permit expires, the business must remove the additional structures within 30 days.

The temporary structure must include the following outlined by the City:

• A minimum 4 Parking Spaces with 1 space designated as ADA Van accessible.
• All requirements for National Pollutant Discharge Elimination System (NPDES) and Storm Water On-site Retention apply to the temporary phase.
• All Building and Safety Codes must be met for Temporary Facilities Structures and for Temporary Certificate of Occupancy (structural, HVAC, plumbing, etc.) 1
• Corresponding utility agencies must approve the proposed temporary utility services for the Temporary Facilities Structures(s). • All corresponding permitting and associated fees for proposed temporary utilities must be completed.
• The Applicant/Developer/Contractor shall comply with section 8.08 Recycling and Diversion of Waste from Construction and Demolition of the Municipal Code and file a Plan with the City’s Building Department prior to the start of any construction
• Provide paved access for Police and Fire Department with property access to site, entry and turnaround areas. • All Police and Fire Department Codes must be met (1) for the site, and (2) for the Temporary Facilities Structure(s). • Site must be secured (with fencing, cameras, security, etc.) pursuant to all Conditional Use Permit approvals. • Adequate lighting must be provided for the entire temporary site.
•  Any proposed signs shall be reviewed under separate permit under the Sign Ordinance.
• A site plan showing all improvements proposed with the Temporary Use Permit shall be submitted with the application. 

The City requires additional plans required for this type of temporary permit.  Those requirements include: Grading Plan showing temporary improvements; Hydrology Report and Soils Report.  They also require the following plans:

• Storm Water Pollution Prevention

• Water Quality Management
• PM 10 Dust Mitigation
• Lighting
• Security Camera
• Landscape 

Application fee: $7,986 plus $40,000 cash deposit (returned up project completion or when site is returned to original condition)

Application Approval Timeline:  3-6 weeks

​Currently the city of Coalinga, CA is accepting applications to obtain a permit for cultivation, processing, extraction, manufacturing, testing, and distribution activities with an approved Conditional Use Permit (CUP) and Regulatory Permit within areas of the City zoned Manufacturing and Business Light (MBL). 

Anyone interested in operating a Commercial Cannabis business within the City of Coalinga must obtain the following:

Step 1:  Attend Mandatory Pre-Application Meeting

Step 2:  Identify Property Zoned Location Suitable for Commercial Cannabis Activity

Step 3:  Submit Regulatory Permit Application Packet Requirements

Obtaining a Commercial Cannabis Permit is a dual submittal process. Application documents must be filed with both the Police Chief and Community Development Department.

Cannabis Permit Processing Matrix

Step 1:  Attend Mandatory Pre-Application Meeting

There is a prerequisite of scheduling a mandatory pre-application meeting prior to the submission of an official application package for a Commercial Cannabis Permit.  All prospective applicants must schedule a pre-application meeting with the City of Coalinga by contacting Amy Martinez, Community Development Secretary at 559-935-1533 x141. The purpose of the pre-application meeting is to provide a comprehensive review of the application process, the application content, and the expectations of the City as it relates to permitting requirements such as the security plan, floor plan, cannabis operational characteristics, employee permits, licensing fees and taxes, monitoring and compliance, legal documents, etc.

Step 2:  Identify Property Zoned Location Suitable for Commercial Cannabis Activity

According to the City of Coalinga’s Commercial Marijuana Operations Ordinance, all licensed Commercial Marijuana Operations are permitted within the Manufacturing and Business Light Zoning Designations (MBL). Also, in the ordinance is a restriction of 1,800 feet from any currently sited and future sited school (K-12). For more information regarding school siting you can view the attached map that identified locations in town outside that restriction.
​  
The following applications for land use will need to be submitted:

• Environmental Review Application
• Site Plan Review Application
• Conditional Use Permit Application

Additional information on fees and regulations can be found at the following links:
​

• MBL Regulations
• Additional Use and Development Regulations
• Planning and Development Fees
• SMO Design Guidelines
• Coalinga Zoning Map

Lands Zoned for Cannabis Operations:

​Step 3:  Submit Regulatory Permit Application Packet Requirements

It is of utmost important to the City of Coalinga City Council to regulate the commercial cannabis industry in a manner which takes into consideration the needs of patients and their caregivers while promoting the health, safety and welfare of residents and businesses. It is the responsibility of the Community Development Department and the Police Department to implement the City’s Commercial Cannabis Ordinance (No. 797) and the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), which was signed into law on June 25, 2017 by the Governor which created a licensing and regulatory framework for both adult use and medicinal cannabis.

At this time, the City of Coalinga is accepting permit applications for commercial cannabis cultivation (indoor), manufacturing (volatile/non-volatile, testing, distribution and wholesale nurseries, in accordance with the standards of the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) and the City’s adopted Commercial Marijuana Operations (CMO) Regulations (Ordinance No. 797). The City’s ordinance does not allow for the licensing of retailers at this time. 

There is an application fee of $2,000.00 and an employee fee(s) of $400.00 per employee that is due when submitting an official application.

The Police Chief will review the entire application package once a completed package along with receipt of paid application fees have been received.  The Police Chief will issue a recommendation to the City Council to approve/deny the regulatory permit in accordance with Section 95.128.
​​

• The Police Chief may request such information he or she deems necessary to seek verification of the information contained within the application including but not limited to background checks.
• The applicant shall certify under penalty of perjury that all of the information contained in the application is true and correct.
• If the applicant has completed the application improperly, or if the application is incomplete, the Police Chief shall, within thirty (30) days of receipt of the original application, notify the applicant of such fact. 
• The fact that an applicant possesses other types of State or City permits or licenses does not exempt the applicant from the requirement of completing the City of Coalinga’s Commercial Cannabis Regulatory Permit Application.  

There are several Regulatory Permit Application Requirements:   Application Checklist
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• Cannabis Permit Application Form
• Employee Permit Application (New Facility)
• Employee permit Application (Existing Facility)
• Acknowledgement Form
• Indemnification Agreement
• Application Fees and Tax Overview
• Coalinga Business License Tax Worksheet
• Coalinga Business License Application
• Insurance Requirements
• Bond Form
• Live Scan Form (Example)
• Live Scan Form

Please contact Sean Brewer, Community Development Director with any questions at 559-935-1533 x 141 or sbrewer@coalinga.com.

Beginning January 1, 2018, the state of California’s marijuana tax laws will change for distributors, cultivators, manufacturers and retailers of marijuana and cannabis products.   

The information outlines the process for collecting, paying and filing taxes under the new laws:

Step 1: Secure Permits and Licenses

Step 2: Register with California Department of Tax and Fee Administration (CDTFA)

Step 3: Collect and/or Pay Taxes

Step 4:  File Taxes

Background:

On November 8, 2016 voters in California approved Proposition 64 (Prop 64), the “Control, Regulate and Tax Adult Use of Marijuana Act”.  This proposition was designed to reshape the use and taxation of marijuana in the state in a number of ways including designating specific agencies to regulate and licenses of the marijuana industry in California.  Prop 64 also impacts the collection and payment of taxes for the following marijuana business groups defined below:

• Distributors: produces, sells and/or transports marijuana between licensed marijuana businesses such as cultivators, manufacturers or retailers
• Cultivators:  engages in the business of planting, growing, harvesting, drying, curing, grading or trimming marijuana
• Manufacturers:  produces or prepares cannabis products at a fixed location that packages or repackages marijuana or cannabis products or labels or relabels its container
• Retailer (Dispensary):  sells marijuana or cannabis products directly to consumers

Step 1: Secure Permits and Licenses

• Local permits and/or licenses: All marijuana distributors, cultivators, manufacturers and retailers must contact the local jurisdiction in which they plan to operate their business and apply for the appropriate permits and/or licenses.  Each city and/or jurisdiction has their own process.  It is important for distributors to secure the local permit by following their process and paying any applicable fees.
• State Licenses:  All marijuana distributors, cultivators, manufacturers and retailers must contact the appropriate state agency (listed below) to secure the appropriate license/permit for their business.  

Under the new state law, marijuana businesses will be required to obtain licenses from the state agency listed above.  The Bureau of Cannabis Control (BCC) is the agency developing regulations for medicinal marijuana use and those regulations should be available November 2017.  Marijuana businesses are highly encouraged to apply for a temporary license from the BCC as soon as the regulations are available.  The BCC will also issue temporary licenses which be effective January 1, 2018.  In order to secure a temporary license through the BCC, a business must have authorization from a local government (city and/or county) to run a marijuana business in their local community.  Temporary licenses will be good for 120 days from the date of issuance.

This proposition imposes specific marijuana excise and cultivation taxes.  Prop 64 was later amended by Senate Bill 94 (SB 94) which repealed the Medical Cannabis Regulation and Marijuana Safety Act (MCRSA) while defining the payment and collection of taxes.  Below is the breakdown of tax collection and payment between distributors, cultivators, manufacturers and retailers:

Step 2: Register with California Department of Tax and Fee Administration (CDTFA):  All marijuana distributors, cultivators, manufacturers and retailers are required to register with the CDTFA for seller’s and tax permits.  Seller’s and tax permits are different and require that businesses apply for separate permits.  Below is information that will be required for businesses to provide when registering with the CDTFA:

• Business Information (name, contact information)
• Federal and state tax identification numbers
• North American Industry Classification Number (NAICS)

The NAICS number for most medicinal marijuana businesses is classified the same as pharmacies and drug stores therefore the code is 44610.  Manufacturers may fall under a different NAICS code, depending on their business activities.  The manufacturer section offers additional business code information on their NAICS classification.  

Distributor: Marijuana distributors must collect the following taxes: cultivation, excise and sales from the cultivators, manufacturers and retailers. 

• Cultivation Tax Collection:  Distributors must collect cultivation taxes from retailer, manufacturers and/or cultivators from which they receive any marijuana and/or cannabis products.  The process for the cultivation tax is different for the cultivator and manufacturer. They are applied the following ways:
  • Cultivator: The cultivation tax is collected when the product is “harvested” and “entering the commercial market” after it has met all quality assurance and testing standards
  • Manufacturer:  The cultivation tax is collected when the product is first “sold or transferred” to the distributor for quality assurance, inspection and testing
  • There are two cultivation tax rates: 
    • $9.25 per dry-weight once of cannabis flowers
    • $2.75 per dry-weight ounce of cannabis leaves  
  • Please note that cultivation tax rate may change. Beginning January 1, 2020, the CDTFA will be required to annually adjust the cultivation tax rate based on inflation.
• Documentation like a receipt or invoice with the following information must be provided for these transactions.  The information below should be included:
  • Licensee receiving the product
  • Cultivator where the product originates with the product identifier number
  • Amount of cultivation tax

 

• Excise Tax Collection:  Distributors are required collect excise taxes from retailers that they supply (sell and/or transport) with marijuana or cannabis products.
  • The excise tax must be collected within 90 days of the sale or transfer of marijuana or cannabis products in an arm’s length transaction.  The state of California defines an arm’s length transaction as a sale “that reflects the fair market price in the open market between two informed and willing parties”.  If the sale is “no arm’s length” the taxes must be collected from the retailer on or before 90 days after the sale or transfer of marijuana or cannabis product to the retailer or at the time of the retail sale by the cannabis retailer, which ever is earlier.   from the retailer on or before 90 days after the sale or transfer of cannabis or cannabis product to the retailer, or at the time of the retail sale by the cannabis retailer, whichever is earlier.from the retailer on or before 90 days after the sale or transfer of cannabis or cannabis product to the retailer, or at the time of the retail sale by the cannabis retailer, whichever is earlier.from the retailer on or before 90 days after the sale or transfer of cannabis or cannabis product to the retailer, or at the time of the retail sale by the cannabis retailer, whichever is earlier.the retailer on or before 90 days after the sale or transfer of cannabis or cannabis product to the retailer, or at the time of the retail sale by the cannabis retailer, whichever is earlier.from the retailer on or before 90 days after the sale or transfer of cannabis or cannabis product to the retailer, or at the time of the retail sale by the cannabis retailer, whichever is earlier.
  • Like with the cultivation tax, distributors must provide documentation like a receipt or invoice with the following information must be provided:
    • Licensee receiving the product
    • Cultivator where the product originates with the product identifier number
    • Amount of cultivation tax

 

• Sales Tax Collection: Distributors are responsible for transporting marijuana and cannabis products between cannabis businesses and are responsible for filing returns and reports with the CDTFA. 
  • The customer (ex: retailer) must provide the marijuana distributor with a valid and “timely” resale certificate whether sales are subject to tax or not.  The resale document supports the sales for the resale.  If the resale document is not provided all sales are assumed to be taxable and will be taxed.  The California State Board of Equalization (BOE) offers additional information on “sales for resale” in Publication 103.
  • Distributors are not subject to sales tax when transporting marijuana or cannabis products from cultivators or manufacturers that the retailers contract with directly.
  • It is important that all marijuana or cannabis products sales or transportation by the distributor is recorded through invoice or receipt.  This will assist the distributor in filing their returns. 

 

• Additional Tax Collection Information: 
  • Any purchases of product that distributors make that will be resold are not subject to sales or use tax as long as they provide the seller with a “valid” and “timely” resale certificate.  Distributors essentially take on the role of retailers in this transaction. 

​
All business equipment and supplies (computers, signage, etc.) are generally subject to sales tax.  Most retailers will collect the tax at the time of purchase.  If the distributor is not taxed but the seller of the equipment, they should include the purchase on the “Purchases Subject to Use” tax on the “sales and use tax return”.  Supplies like wrapping for marijuana and cannabis products (ex: bags) may fall under resale.  The Tax and Fees section of the BOE offers additional information on use tax.

Cultivator: The cultivator must pay the manufacturer and distributor a cultivation tax.    

• Sales:  Cannabis Cultivators are subject to the cannabis cultivation tax when they sell to a distributor, manufacturer or retailer.  There are two cultivation tax rates: 
  • $9.25 per dry-weight once of cannabis flowers
  • $2.75 per dry-weight ounce of cannabis leaves 

Please note that cultivation tax rate may change. Beginning January 1, 2020, the CDTFA will be required to annually adjust the cultivation tax rate based on inflation.

The cannabis distributor, manufacturer and retailer must provide the cannabis cultivator with a “timely” and “valid” resale certificate.  If a resale certificate is not provided a sales tax will be applied to the sale and the cannabis cultivator must report and pay tax to CDTFA.  The California State Board of Equalization (BOE) offers additional information on sale for resale in Publication 103. 

• Purchases:  Most purchases made by cannabis cultivators will be subject to a sale or use tax.  There some cases when some supplies and products may not be taxable or may qualify for a partial tax exemption.
  • Use or Sales Tax Items: General cannabis cultivation business items (ex: computers, gloves, pesticides) will be subject to a sale or use tax at the time of purchase.  Vendors are responsible for collecting the taxes on these items. Out-of-state vendors may not apply the California state tax. In this situation the cannabis cultivator is responsible for reporting and paying the sales or use tax when they file their return with the CDTFA. 
  • Partially Exempt Use or Sales Tax Items:
    • Farming Equipment and Machinery:  Cannabis cultivators may qualify for a partial exemption rate available through the state general fund.  The current rate is 5% meaning that if the tax is 7% the partial rate is subtracted from the tax so the taxes paid by the cultivator will be 2%.  To qualify for this partial exemption, the following requirements must be met: Sold to a qualified person.
      • Sold to a qualified person
      • Used exclusively or primarily (50 percent or more of the time) for producing or harvesting agricultural products
      • Defined as farm equipment or machinery including but not limited to appliance, device or apparatus used in agricultural operations

The following are examples of items considered cannabis cultivator farm equipment and machinery:
​

• Plant equipment
• Trimming tools
• Drying racks and trays
• Hydroponic equipment

Cannabis cultivators who qualify for partial farm equipment exemptions may also qualify for partial exemption on solar power equipment.  The state issued a special notice on solar power farm equipment offering additional details. 

• Buildings:  Facilities, like greenhouses, specifically designed for and exclusively use for commercially raising plants may qualify for a partial exemption. Vendors should provide the cannabis cultivator with a partial exemption certificate.
• Diesel Fuel:  Diesel fuel used to prepare land for planting, protecting, harvesting and/or growing crops may also qualify for a partial exemption.  According to the state of California, to qualify for this exemption the fuel must be used “in carrying on a trade or business of farming; on a farm in California; and for farming purposes, by the owner, tenant, or operator of the farm.”
• Exempt Items:  The following items are exempt from use and sales taxes:
  • Seeds, plants and clones:  Seeds, plants and clones grown to be resold as part of the cannabis business do not have an applicable sales and use tax
  • Fertilizers: Fertilizers used to produce cannabis products.
  • Liquid Petroleum Gas (LPG): LPG used for commercial cannabis crop production or harvest.  The seller should provide the cannabis cultivator with an LPG exemption certificate.  

Manufacturer: The manufacturer must collect taxes from the cultivator and must pay the distributor a cultivation tax. 

• Cultivation Tax Collection and Payment:   Cannabis manufacturers are required to collect the cannabis cultivation tax from cultivators when the “unprocessed cannabis is first sold or transferred” to the manufacturer.  Manufacturers are then required to pay the cultivation tax collected from the cultivator to the distributor when products are transported for distribution.  There are two cultivation tax rates: 
  • $9.25 per dry-weight once of cannabis flowers
  • $2.75 per dry-weight ounce of cannabis leaves 

Please note that cultivation tax rate may change. Beginning January 1, 2020, the CDTFA will be required to annually adjust the cultivation tax rate based on inflation.
Documentation like a receipt or invoice with the following information must be provided for these transactions.  The information below should be included:

• Licensee receiving the product
• Cultivator where the product originates with the product identifier number
• Amount of cultivation tax

 

• Purchases:
  • When manufacturers purchase a product that will be resold they can purchase it without paying sales and use tax by providing seller with a valid resale certificate.  Sales tax apply if the product is sold at retail. Products consumed or used by the manufacturer will be taxed based upon the amount of the purchase price.  According to the CDTFA, “use tax rate is the same as the sales tax rate in effect at the location of use”.  They can be reported as a “purchase subject to use” when the tax return is filed.
  • Products (signs, display cards, scales, computers) for your business are subject to sales tax at time of purchase.  Out of state purchases, not taxed must be included on “Purchases Subject to Use Tax” and are subject to tax.  Wrapping and packing supplies may be purchased for resale and therefore may not be subject use tax.
  • Manufacturing and Research and Development Partial Exemption:  Manufacturers may qualify for partial exemption of sales and use tax on certain manufacturing and research development equipment purchases and leases.  The state outlined the following requirements:
    • Be engaged in certain types of businesses, “qualified person”.  A qualified person is primarily engaged (50% or more of their time) in business activities that fall under NAICS codes “3111 to 3399, inclusive 54711, or 541712”.
    • Purchase “qualified tangible personal property” as outlined below:
      • Machinery and equipment, including component parts and contrivances such as belts, shafts, moving parts, and operating structures
      • Equipment or devices used or required to operate, control, regulate, or maintain the machinery, including, but not limited to, computers, data-processing equipment, and computer software, together with all repair and replacement parts with a useful life of one or more years, whether purchased separately or in conjunction with a complete machine and regardless of whether the machine or component parts are assembled by the qualified person or another party.
      • Tangible personal property used in pollution control that meets standards established by this state or any local or regional governmental agency within this state.
      • Special purpose buildings and foundations used as an integral part of the manufacturing, processing, refining, fabricating, or recycling process, or that constitute a research or storage facility used during those processes. Buildings used solely for warehousing purposes after completion of those processes are not included.
    • Use the property in a qualified manner which includes the following 50% or more of the time:
      • Any stage of the manufacturing, processing, refining, fabricating, or recycling process
      • Research and development
      • To maintain, repair, measure, or test any qualified tangible personal property described by the above, or
      • For use by a contractor purchasing that property for use in the performance of a construction contract for a qualified person, provided that the qualified person will use the resulting improvement to real property as an integral part of the manufacturing, processing, refining, fabricating, or recycling process or as a research or storage facility for use in connection with those processes.

Retailer: The retailer charges and collects sales tax on “taxable retail sales” marijuana and cannabis products as well as other products.  They are also required to collect cannabis excise tax from customers and pay this tax to the distributor.

Sales: 

• Beginning January 1, 2018 all marijuana and cannabis products (including medicinal) will be subject to an excise tax of 15 percent.  The excise tax is collected from customers and paid to distributors.  Retailer must collect the excise tax at the time of purchase.  Below is a list of products included in the excise tax:
  • Balms
  • Buds and flowers
  • Capsules
  • Edibles (cookies, butters, honey, chocolates, candies, soda, bars)
  • Extracts
  • Gum
  • Hash
  • Infused feminine hygiene products
  • Lotions
  • Oils
  • Plants and clones
  • Pre-rolls
  • Teas
  • Tinctures
  • Tonics
  • Topicals
  • Waxes
• Cannabis accessories are not subject to the excise tax
• The excise tax applies to the average market price which is determined by the type of transaction between the retailer and seller (cultivator, manufacturer or distributor).  Those transactions are:
  • Arm’s length, when the “average retail price is determined by the wholesale cost of the cannabis or cannabis product sold or transferred to the cannabis retailer, plus mark-up”.  Marijuana businesses will be notified when the mark-up rate is set.  The set rate will be posted on the BOE’s Special Taxes and Fees Rate Page. 
  • Non-arm’s length, the average market price means the “cannabis retailer’s gross receipts from retail sale of the cannabis or cannabis products.    
• Customers with valid Medical Marijuana Identification cards (MMI) and government issued identification (ID) are exempt from sales tax
• Retailers are not required to collect sales taxes from their customers but they must report and pay sales taxes to CDTFA.  If retailers choose to include sales tax in their product price, they must post visible signage explaining this to the customer. Otherwise, the sales tax will be on the sale’s price and added to the receipt.  

Exemptions: Effective November 9, 2016 certain sales of medicinal marijuana are exempt from sales and use tax as defined by the Business and Professions code. Some items included are: medical cannabis, medicinal cannabis concentrate, edible medicinal cannabis products or topical cannabis.

Customer must provide their MMI and ID at the time of purchase.  Retailers must keep an electronic or paper record of the following information for exempt transactions:

• A valid nine-digit MMI number with expiration date (visit the CDPH website to validate MMI numbers)
• Sales invoice or other original record of sale

Retailers should not collect sales tax on these purchases and should claim a deduction on sales and use tax return for exempt medicinal marijuana and cannabis products sales. 

Purchases:  Purchases made on products that will be resold can be made without paying sales or use tax.  Retailers must provide the seller a “valid” and “timely” resale certificate. Out-of-state vendors may not apply the California state tax. In this situation the cannabis retailer is responsible for reporting and paying the sales or use tax when they file their return with the CDTFA. 

Items for use in a retail business like signage, scales, and computers are subject to sales tax at the time of purchase. Packaging and other supplies may be purchased for resale without paying sales tax.  

Step 4:  File Taxes:  All marijuana business owners must register for a seller’s permit and file sales and use tax returns.  Distributors of marijuana and cannabis products must register for a cannabis tax permit and file tax returns regularly. 

• Registration:  Marijuana businesses can create an online profile to file and manage their taxes and update any business information.  Electronic payments can be made through the online system as well.  Businesses paying with cash can file for an exemption to the “No Cash” policy.  This exemption requires business owners to explain their financial situation and their lack of a bank account and access to other payment options.
• Documentation:  Record keeping is an extremely important component of the tax process.  All marijuana businesses are required by law to keep accurate business records which helps determine the amount taxes due.  Records should be kept on all purchases and sales transactions to assist in preparation of tax filing.  The state requires that distributors retain all records for at least four years.  The state suggests the following as options for record keeping:
  • Sales invoices
  • Cash register tapes
  • Sales journals
  • Resale certificates
  • Shipping documents
  • Purchase invoices
  • Bank records
  • Purchase orders
  • Purchase journals
  • Tax returns
• Sales invoices and receipts should include the following information:
  • Location of transportation
  • Cost to purchaser (include any discounts)
  • Kind, quantity, size and capacity of package of marijuana and/or cannabis products sold
  • Name and address of purchaser
  • Name and address of seller

As of November 9, 2016, certain retail transactions will be exempt from the sales and use tax.  The BOE lists examples and the process for recording tax exempt transactions in a “Special Notice”.

Currently, the City of Arcata, CA is accepting applications to obtain a permit for Commercial Cannabis Activity permit (CCAP).  This application process began April 1, 2016.

Anyone interested in a medical cannabis business within the City must go through the process outlined below:

Step 1: Identify Permit Type

Step 2: Gather Application Information

Step 3: Write Operational and Logistical Plans

Step 4: Submit Application to Initiate the Approval Process

Step 1: Identify Permit Type: 

There are eight types of permits under the City’s CCAP process defined by the type of medical cannabis business.  The following are the permit types: Cultivation (the chart below outlines the cultivation standards), Manufacturer 1 (nonvolatile solvents), Manufacturer 2 (volatile solvents), Testing Laboratory, Dispensary, Distributer, Transporter and Delivery.  

Cultivation Activities Defined by the Medical Cannabis Regulation and Safety Act 

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​(Note: Permits are for specific locations where the business operates, more than one location for the same business will require separate permits)

Step 2: Application information:  Full Arcata City Applications are available on the city website. The applications must include the following information:

• Applicant information: Applicant’s name, address, and business ownership type (ex: sole proprietor, partnership)
• Electronic Fingerprinting:  All business owners and any employees responsible for operational and/or management decisions for the business must submit fingerprints and other necessary information for a criminal background check required by the City of Arcata Police Department.  The City offers Live Scan fingerprinting services for the CCAP in their offices at a cost of $79 ($30 for City of Arcata, $17 FBI and $32 DOJ).  You can pick up a CCAP live scan form at the police department.  The hours of operation are 9-11:30am and 1-4pm Monday-Friday-you can also make appointments.  For additional information you can contact the police department at (707) 822-2428. 
• Location and Zoning Information:  All businesses must be in the City’s Medical Cannabis Innovation Zone (MCIZ).  MCIZ is comprised of Area 1 and 2.  Area 2 is limited to 20 permits.  You can find additional information on MCIZ in land use code 9.28.130.  The physical address, the contact information for the property owner, and assessor’s parcel number (please note, the minimum lot area on Assessor’s Parcel Number’s 507-081-043, 507-121-013, and 507081-050 shall be reduced to 10,000 square feet)

• Site information:  Applications must include distinguishable differences between existing and proposed improvements including floor, plumbing, mechanical, and electrical plans. to the interior and exterior of the building.  For example, building exterior information like signage height, color, and design should be included in your plans.  According to the City of Arcata’s Building and Planning division, the minimum the plans must include: 
  • (1) Show all fixtures, equipment and building improvements to be utilized for the cultivation, production and processing of medical cannabis;
  • (2) Meet California Code of Regulations Title 24 requirements; 
  • (3) Be reviewed and stamped by an engineer with the appropriate trades (mechanical, plumbing, electrical, etc) as required by the Building Official;
  •  (4) Provide an odor control system that will contain or eliminate associated odors.

Parking compliant with city regulations should be addressed in the site plan as well. 
​

• The City has specific land use standards on cultivation outlined below:   
  • Cultivation area shall be limited to no more than 25 percent of the total building floor area per parcel.
  •  Cultivation area shall be no more than 4,000 square feet per lease area or business.
  • Limitations on cultivation area in section a. and b. above may be exceeded through the issuance of a Use Permit.
  • Each parcel shall have at least one independently accessible, occupancy ready, commercial space designed and designated for allowable uses in the base zone or :MMIZ combining zone that is 600 square feet or greater in size, and is not used for cannabis cultivation.  This space must be provided prior to receiving a Certificate of Occupancy for cultivation on a parcel. 

Step 3: Write Operational and logistical plans:  All applications are required to include a full outline regarding how your marijuana business will operate. The following items must be included in your plans:

• State license compliance plan: Starting January 2018, a license to operate a commercial cannabis business will be required. Once a state license is required, Commercial Medical Cannabis Permits will not be approved or renewed without evidence of required a state license.  For information regarding State Licensing, please visit the frequently asked questions on the State of California website: http://www.bmcr.ca.gov/about_us/faq.shtml. The City requires applicants to document the specific license type and the plan to meet the requirements for the state license before the state licensing is in effect.
• Daily operations:  A full description of the following information:
  • Proposed hours of operation (generally 8am-7pm, see permit for exceptions)
  • Odor control such as carbon filtration and ventilation systems (The city can revoke CCAP permits for multiple odor complaints)
  • Ensuring that the interior of your business is not visible to the general public
  • Labeling explaining the contents of your product (tip:  include dosage, THC content and that it is for medical purposes)

Other information including proposed activities, average amount of production and source of cannabis must be included in the operations plan. 

• Waste disposal plan: Waste disposal plan including reduced solid and green waste as well as light bulb recycling policy.
• Sustainability plan:  Calculate the expected electricity use and greenhouse emissions gas with a plan for best practices for energy efficiency.   
• Water infrastructure plan: Identify the expected water source and the level of water use in gallons per day. 
• Security plan: On-site 24 hours/7 days security measures including the proper disposal of cannabis to prevent unlawful use. Below are some tips to secure your CCAP business:
  • Hire a security company with experience and knowledge of the cannabis space. If you cannot find a firm that has experience in the cannabis space use a firm with experience in the banking industry.  The security needs of cannabis and banking businesses are similar.  Just be sure they understand any local, state and federal regulations to maintain compliance.
  • Protect your product as a bank would protect cash and other valuables.  Vaults, safes and alarm systems are excellent ways of protecting your product from theft.  In the case of alarms, it is important to change the codes frequently to reduce the opportunity for an “inside job”.  
  • Purchase the best monitoring system that can adapt as local, state and federal laws change. Cameras should be visible and located in areas covering the whole facility.  This includes the exterior, specifically any doors or windows.    
  • Limit opportunities for employee theft by creating an environment of trust and honesty. Employee training and clearly defining expectations and policies in the beginning is very important to deter theft.  Cash and product policies and procedures should allow you to detect loss and identify the responsible part early. A clearly defined whistle-blower policy can be an effective theft deterrent.  Be sure that the policy includes a confidential way of notifying managing to theft concerns. 
  • Hire security guards as an additional tool to monitor your business. When hiring a guard consider if you they will be armed.   
  • Go beyond the minimum requirement.  It is important that you ensure that maintain a secure environment for your staff and assets.  Implementing systems that go beyond the minimum security requirements can save you headaches in the long run and deter theft.   

Security breaches required to addressed as part of the security plan.  The Arcata Police Department must be notified within 24 hours of noticing a security breach.  In section 6.f of Exhibit A Resolution 167-29, the City defines the following as security breaches:
​

1. Diversion, theft, loss, or any criminal activity involving the cannabis or any agent or employee of the permittee. 
2. The loss or unauthorized alteration of records related to Cannabis, registered qualifying patients, primary caregivers, or employees or agents. 
3. Significant discrepancies identified during inventory. 
4. Any other breach of security.

• Inventory tracking plan:  All permit holders must be trained and use BioTrackTHC, the city approved inventory tracking company, to maintain records.  Applications must include names of the system administrator and account users.  The system administrator must stay current on the software.  Ongoing training of the software is recommended for all users as well as the system administrator.

Step 4: Submit Application to Initiate the Approval Process:

• All applications must be signed by the business and property owners. 
• Hard and electronic (ex: CD or flash drive) copies of the application must be hand delivered to the front counter of the Building Division and Planning Division. 
• All applicable application fees must be paid. The cost of a CCAP application is $6,500 ($2,500 for the application and $4,000 for operations).  Costs can increase to include additional fees like zoning clearance and building permits. These additional fees are determined by your project. Please see the chart below for all fees. 
• All applications are reviewed by the following departments or divisions: Building, Engineering, Environmental Services, Finance, Planning, and Police.  Each department will focus on specific portions of the application.  For example, the Environmental Services department will be interested in the waste diversion plan, while Police Department will be interested in security plan.
• The process requires the additional information:
  • A state of California’s Certificate of Good Standing for the business owner
  • List of the business owners including the percentage of ownership
  • City if Arcata License
  • State Seller’s Permit for dispensaries
• Please contact Edie Rosen at (707) 825-2137 should you have any questions about the status of your application.

The City of Grover Beach, CA is accepting applications for Commercial Medical Cannabis Business based on city ordinances Ordinance No. 17-05 and Ordinance No. 17-06 as of June 14, 2017.  The application deadline for dispensaries has expired however the City is taking applications for Cultivation, Manufacturing, and Testing Laboratories.  At this time Grover Beach does NOT allow Recreational Cannabis uses. 

Contact Information for all Commercial Medical Cannabis Business Related Questions:

​All Commercial Medical Cannabis Businesses will be required to complete the following steps:

Step 1:  Determine an Acceptable Location for a Commercial Medical Cannabis Business.

Step 2:  Complete the application process for a Cannabis Use Permit in the City of Grover Beach, CA.

Step 3:  Complete the application process for a Commercial Cannabis Permit in the City of Grover Beach, CA.

Prior to applying:

• Review the information and learn about the application process and which documents you will need. 
• Taking a good look at the entire application and ensure all the of required information is available. 

Step 1:  Determine an Acceptable Location for a Commercial Medical Cannabis Business
 
 Grover Beach allows Commercial Medical Cannabis Business in all three industrial zones:

• Industrial (I) Zone;
• Coastal Industrial (CI) Zone, and
• Coastal Industrial Commercial (CIC) Zone 

Grover Beach, CA Zoning Map:  http://www.grover.org/DocumentCenter/View/2749

All cultivation with storefronts shall be located a minimum of 600 feet from public and private schools grades kindergarten through 12th grade consistent with State law. All commercial cannabis uses shall be located a minimum of 100 feet from the CR2 Zone on the north side of Atlantic City Avenue as measured from the residential lot boundary to the industrial lot boundary.
 
Step 2:  Complete the application process for a Cannabis Use Permit in the City of Grover Beach, CA.

All Applicants will be required to pay an application deposit that covers the costs acquired by the city when reviewing the Cannabis Use Permit application.   The deposit amount will range from $6,000 - $10,000.

• Completed Development Application and all the information required on the Development/Use Permit Submittal Checklist or Use Permit Submittal Checklist – No New Construction form.
• Completed Commercial Cannabis Employee/Owner Background Application form for all applicants.
• Provide six (6) copies of a description of the Commercial Cannabis Business organizational status and provide proof of status, such as articles of incorporation, by-laws, partnership agreements, and other documentation as may be necessary.  Include a list of all owners/entities that have an interest of 5% or greater in the business.
• Payment of application fee deposit.
• Setback Verification Exhibit that illustrates the following information:
  • A vicinity map including the site plan indicating the property boundary and setbacks from adjacent residential zones and private and public schools (K-12) as required wet stamped by a licensed surveyor or civil engineer attesting to the setback measurements.

• Preliminary Odor Mitigation Plan with the following information:
  • Provide six (6) copies of a detailed description and manufacturer specification sheets of proposed mechanical systems.

• Preliminary Security Plan with the following information:
  • Provide six (6) copies of a detailed description of all proposed security measures This will require a preliminary site plan and floor plan indicating proposed security camera locations and other security measures.
• Preliminary Operations Plan with the following information:
  • Provide six (6) copies of a detailed description of all operations. 

• Preliminary Water Recycling Management Plan for cultivation uses with the following information:
  • Provide six (6) copies of a detailed description of the type of cultivation, irrigation system, projected water use, water recycling techniques and constituents of wastewater discharge into the sewer/septic system. 

 
If the Cannabis Use permit is approved applicant may submit the application for the Commercial Medical Cannabis Permit

Step 3:  Complete the application process for a Commercial Cannabis Permit in the City of Grover Beach, CA.

Commercial Cannabis Permit Application Checklist

Commercial Cannabis Permit Application

Fire and Life Safety Requirements
​
The applicant must complete and submit the following:

• Completed Commercial Cannabis Permit Application form for each license required by the State.
• Completed Commercial Cannabis Employee/Owner Background Application form for all applicants.
• Provide a description of the Commercial Cannabis Business organizational status and provide proof of status, such as articles of incorporation, by-laws, partnership agreements, and other documentation as may be necessary. This shall include a list of all owners/entities that have an interest of 5% or greater in the business.
• Payment of application fee deposit as established by the Master Fee Schedule. If applying for a
• Use Permit concurrently with the Commercial Cannabis Permit, the fee is part of the Use Permit deposit.
• A Live Scan and background check will be performed by the Grover Beach Police Department once your application has been submitted.  Applicants will be contacted by the Police Department to schedule a meeting to complete the application.
  
• Background Check -  City authorities have the ability to access state and local summary criminal history information for employment, licensing, or certification purposes; and authorizes access to federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation, every Person listed as an owner, manager, supervisor, employee or volunteer, of the Commercial Cannabis Business must submit fingerprints and other information deemed necessary by the Chief of Police or his/her designee(s) for a background check by the Grover Beach Police Department.  Without first clearing a background check no permit to operate a Commercial Cannabis Business will be issued. 

The application process has officially started in City of Blythe, CA to obtain a Commercial Cannabis Business Permit as of September 18, 2017.  Final applications must be received by 4:00 PM on November 17, 2017. The application process has been put in place pursuant to Resolution No. 2017-033. 

For questions regarding the application process call or visit:

• Administration Office in City Hall

235 North Broadway, Blythe, CA, 92225

• (760) 922-6161
• www.cityofblythe.ca.gov

• Cannabis Ordinance 883-17

Follow these steps to apply for a City of Blythe, CA Commercial Cannabis Business Permit: 

Step 1:  Determine an Acceptable Location for a Commercial Cannabis Business (CCB)

Step 2:  Complete Criminal History Check (Live Scan)

Step 3:  Complete and Review the Application Process for a Commercial Cannabis Business (CCB) in the City of Blythe, CA.

Prior to applying:

• Review the information and learn about the application process and which documents you will need. 
• Taking a good look at the entire application and ensure all the of required information is available.  

​Step 1:  Determine an Acceptable Location for a Commercial Cannabis Business (CCB)
 
The application must include the address and a detailed description of the proposed Commercial Cannabis Business location (Note that proof of ownership, or a notarized letter of the owner’s willingness to lease will not be given any additional consideration until Phase 3). The applicant must also describe all sensitive uses described within six hundred (600) feet of the proposed location from the property line of a K-12 school, child daycare center, youth center, parks, places of worship and within 1000 feet of adult day care centers. The CCB must be in the appropriate zoning or have a proposed zone change and meet all the locational requirements as described in BMC Chapter 17.63E and BMC 5.10.290 (o) and BMC 883-17.

​Blythe Zoning Map:

Locations of Commercial Cannabis Business Dispensaries will be permitted as follows:

• In the C-C, Commercial Community Business, C-G General Commercial, and in I-G, General Industry Zone.
• The dispensary must not be located on a parcel located within a six hundred (600) feet radius of a school (whether public, private, or charter, including pre-school, transitional kindergarten, and K-12). If any part of a parcel falls within the 600 feet, then the entire parcel shall meet the requirements of this paragraph.
• No closer than six hundred (600) feet from any portion of any parcel in the City limits containing any of the following:
  • A youth facility;
  • A daycare facility serving nine or more children and is licensed by the county or city;
  • Parks and places of worship at the discretion of the City Council;
  • An adult day care facility serving nine or more adults and licenses by the State, County or City. 

All other Commercial Cannabis Businesses (other than dispensaries), including those permitted to engage in cultivation, manufacturing, testing, distribution of cannabis and cannabis products will only be permitted if all the following requirements are met: 

• The commercial cannabis business other than a dispensary must be located on property zoned C-C, Community Commercial Business, C-G, General Commercial, I-G General Industrial; and
• The property on which the commercial cannabis business is located must also meet all of the following distance requirements: 
  • It shall be no closer than six hundred (600) feet from any portion of any parcel containing any of the following:
    • A school (whether public, private, or charter, including pre-school, transitional kindergarten, and K-12);
    • A daycare facility serving nine or more children and is licensed by the county; and City;
    • Any park or place of worship at the discretion of the City Council;
    • A youth facility; and
    • An adult day care facility serving nine or more adults and licenses by the State, County or City.  

Applicants will be required to obtain a “Zoning Verification Letter” from the Planner in the Planning Division in City Hall,  to ensure that the location proposal the applicant is applying for meets locational requirements prior to submitting their CCB application. Sites with proposed zone changes to an allowed zone will be eligible for an approved zoning verification letter.  The review process typically takes approximately ten (10) working days and will cost $122.33 The “Zoning Verification Letter” will need to be included with the application package. Please note the issuance of a “Zoning Verification Letter” does not mean the written evidence of permission given by the City of Blythe or any of its officials to operate a CCB, nor does it not mean “permit” within the meaning of the Permit Streamlining Act, nor does it constitute an entitlement under the Zoning or Building Code. A regulatory permit for regulating a CCB does not constitute a permit that runs with the land on which the CCB is established. Request for Zoning Verification Letters require a written request from the Planning Division and will not be completed over the counter since it may require additional research and review. 

Step 2:  Complete Criminal History Check (Live Scan)

City of Blythe Commercial Cannabis Employee/Owner Background Application

• Each principal/owner must undergo a criminal background check demonstrating that they do not provide “good cause” for denial per BMC Section 5.10.290 (m).
• The Live Scan Fee will be $101.26 and the background check fee shall be $300. The application for the Live Scan will be available on the City website or at the Administration Office in City Hall.
• Please provide proof of completing your background form and/or Live Scan form by providing proof of a receipt with your application on or before November 17, 2017.
• This process will be required to meet the minimum threshold qualifications pursuant to BMC Section 5.10.290 (m). Principals who do not meet criminal history eligibility requirements will be disqualified. 

 
Step 3:  Complete and Review the Application Process for a Commercial Cannabis Business (CCB) in the City of Blythe, CA.

Blythe Commercial Cannabis Application Form

Application Procedure

Applicants must hand deliver a complete comprehensive and signed copy of the Blythe Commercial Cannabis Business Form, and all attachments along with a flash drive which contains one comprehensive and signed copy of the application in a pdf format, and payment of $3,680 starting on September 18, 2017, the initial application and fee must be received by November 17, 2017. Payment must be made by a certified check, cashier’s check or money order made payable to the City of Blythe. Application Fees are non-refundable. A complete application will consist of the following information:

• The Blythe Commercial Cannabis Business Form;
• Background Authorization Form and/or Proof of Live Scan payment for each of the Principals;
• Zoning Verification Letter;
• All of the information about the CCB that will be evaluated as described in the approval Phase 1- 4 below; and
• LATE AND INCOMPLETE APPLICATIONS WILL NOT BE CONSIDERED.

The City Manager or designee shall administer the following three stage process for the screening and evaluation of Commercial Cannabis Business applications. The process for obtaining approval of a license to operate a Commercial Cannabis Business within Blythe, CA consists of the following three stages:

Phase 1:  Determination of Eligibility and Application:

• Each Principal must undergo a criminal history check demonstrating compliance with the eligibility requirements of BMC Section 5.10.070 (d) and 5.10.290(m).
• Applications must be complete to be considered. Applications will be considered complete only if they include all information required for Phases 1, 2 and 3.
• Proposed location of business.
• Execute an agreement indemnifying the City from liability.

All eligible applications will move onto Phase 2.

Phase 2:  Initial Ranking (1,500 Points)

Applicants who scored a minimum of 80% in Phase 2 will move to Phase 3.  Applications will be given a score based on the following criteria:

• Proposed Location of business (300 Points);
• Business Plan (400 Points);
• Neighborhood Compatibility Plan (300 Points);
• Safety and Security Plan (300 Points); and
• Labor and Employment Plan (200 Points).

Phase 3:  Second Ranking (2,500 Points)

Prior to the scheduling of the interviews in Phase 3 each of the applicants will be required to have their proposed site inspected by the assigned City designee to ascertain current conditions of the facility. 

The second ranking will be scored based on the following criteria:  

After all the applicants from Phase 3 scores have been tabulated they will be combined with Phase 2 to establish a new ranking of the top applicants. The top applicants for each category as determined by the procedures shall move onto Phase 4 of the selection process for further consideration.
.
Phase 4:  City Manager’s Recommendations and City Council’s Final Approval

This phase will consist of the following:

• Selection Committee’s final review and evaluation;
• City Manager presents final rankings and recommendation report to City Council; and
• City Council Approves Final recommendations.

​
Please note:  After the completion of the application interviews in Phase 3 and prior to the Selection Committees final review and evaluation, the City reserves the right to request and obtain additional information from any candidate who submitted a proposal. Upon the completion of the final review process, the Selection Committee will tabulate its final scores of the all applicants who were interviewed in Phase 3. The City Manager will present to the City Council the final ranking along with his/her recommendation in which the City Council may award up to the amount permitted by the Ordinance or Council Resolution pursuant to BMC Section 5.10.80 The City Council reserves the right to award a lesser number of permits, or to award no permits at all.  Only those applicants on the final list will be eligible to be issued a permit from the initial permit process. The top Applicants which are being recommended by the City Manager for consideration to the City Council should be prepared to attend a City Council meeting in Blythe to provide a public presentation before the Mayor and City Council introducing their team and providing an overview of their proposal if requested by the City Manager. 

Calexico, CA is now accepting applications for Commercial Cannabis Regulatory Permits.  Permits are being issued in accordance with Calexico Municipal Code chapter 5.96 and Ordinance 1178. 

All cities are different in what is required to operate a Commercial Cannabis Business.  Guidelines have been put in place to protect the business owners, employees and the community that make up Calexico, CA.  Retail cannabis sales within the City of Calexico, CA have been prohibited.  The city will issue Commercial Cannabis Regulatory Permits for qualified applications in the following areas:
​

• Cultivator - Any commercial activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis;
• Manufacturer - To compound, blend, extract, infuse or otherwise make or prepare a cannabis product.
• Testing Laboratory - Subjecting cannabis to laboratory testing for active compounds and purity prior to distribution for consumption.
• Distributor - The procurement, sale, and transport of cannabis and cannabis products between entities permitted or licensed under this chapter, another local California jurisdiction, or state law.

Steps to complete to obtain a Commercial Cannabis Regulatory Permit in Calexico, CA:

Step 1:  Review Commercial Cannabis Activity Regulatory Permit Application Checklist. 

Step 2:  Review the Permitted Locations and Standards

Step 3:  Gather and Prepare Site Plan Supplemental Requirements

Step 4: Complete Regulatory Permit Application

At first glance these steps seem easy, there are some very detailed information that must be included and reviewed as part of the application.  Applicants who are pursuing entry into the Commercial Cannabis Business in Calexico must ensure that they follow their due-diligence to gain the proper permitting.
 
Step 1: Review Commercial Cannabis Activity Regulatory Permit Application Checklist

• Copy of Applicants Photo Identification
• Copy of Conditional Use Permit or Development Agreement
• Complete Application
• Premises Diagram
• Security Plan
• Odor Control Plan
• Business Plan
• Community relations Plan
• Neighborhood Responsibility Plan
• Proof of Adequate Insurance
• Budget
• Live Scan for all Applicants and Operators

Step 2: Review the Permitted Locations and Standards

The City of Calexico has outlined locations in the city where Commercial Cannabis Businesses can operate. Individuals who are seeking permits should carefully review zoning maps for permitted locations and city standards:

• Commercial cannabis activity may be located in the cannabis overlay district, upon either issuance of a CUP or full execution of a development agreement approved by city council and issuance of a regulatory permit, or as otherwise permitted in this code.
• Commercial cannabis activity shall be limited to no more than seventy-five percent of the acreage of a legal parcel in the cannabis overlay zone.
• Each commercial cannabis cultivation facility shall be at least five thousand square feet in size.
• Commercial cannabis activity shall be located a minimum distance of six hundred feet away from any sensitive receptor. The distance shall be measured at the nearest point between any part of the building containing the cannabis use and any lot line of the sensitive receptor.
• Cannabis cultivation, manufacturing, and testing may only occur indoors. Commercial cannabis activity shall not result in the creation of any odors detectable from anywhere off the property boundaries. The use of carbon filtration systems and other mitigation measures shall be used on all commercial cannabis activities that cause such odors. Commercial cannabis activity permittees or developers shall not allow cannabis to be visible from the public right-of-way, the unsecured areas surrounding the commercial cannabis activity's site, or the commercial cannabis activity's main entrance and lobby.
• No commercial cannabis activity shall operate unless it is in possession of all applicable state and local licenses or permits, except as otherwise permitted by state and/or local law. Every commercial cannabis activity shall submit to the city manager a copy of any and all of its state and local licenses and permits required for its operation. If any other applicable state or local license or permit for a commercial cannabis activity is denied, suspended, modified, revoked, or expired, the permittee shall notify the city manager in writing within ten calendar days.
• Except as required in this chapter, CUPs shall be reviewed, issued, denied, suspended, revoked, and/or renewed in accordance with Chapter 17.01, Article V, Conditional Use Permit Regulations. If any provision of this chapter conflicts with any provision of Title 17, Chapter 17.01, Article V, the provision in this chapter shall control.

​
​Calexico, Ca Zoning Map:

​GENERAL INFORMATION MUST BE LISTED ON ALL SHEETS:

• Name, address, and telephone number of owner and developer of subject property.
• Name, address and telephone number of person preparing plan.
• North arrow and scale. North arrow must point to top of sheet.
• Vicinity map showing site location and major cross streets.
• Legal description of subject property (i.e. APN) and street address of subject property (if assigned).
• Date plans were prepared.

INFORMATION SPECIFIC to SITE PLANS (The site plan, drainage and grading plan, and landscape plan may be combined into a single plan as long as the details are legible):

• Existing and proposed Zoning of subject property and surrounding properties.
• Existing and proposed General Plan designation of subject property and surrounding properties,
• Existing land uses of surrounding properties.
• Name and address of utility companies, including water, sewer, electric, gas, cable, and telephone companies,
• Net lot area and gross lot area.
• Dwelling units per acre, if applicable.
• Number of proposed units.
• Total square footage of each dwelling unit, number and size of dwelling units and number of bedrooms, if applicable.
• Total square footage of each building, including customer area non-customer area for restaurants.
• Percentage of area covered by buildings on each parcel.
• Percentage of area covered by pavement on each parcel.
• Uses of all buildings (existing and proposed) on subject property.
• Type of construction and occupancy per Uniform Building Code.
• Computation of total covered and uncovered parking spaces for each parcel and the number of proposed to meet the requirement.
• Property lines and lot dimensions of subject property.
• Names and width of adjacent streets and alleys.
• Street of alley dedications, if applicable,
• All existing and proposed public improvements within adjacent streets and alley right-of-way (curb, gutter, street lights, sidewalks, parkways, power poles, fire hydrants, etc.)
• Existing Of proposed public fight-of-way within subject property.
• Existing Of proposed easements within or immediately outside subject property.
• Physical features on property lines and within 25' of the boundaries of the site for residential projects (fences, walls, power poles, buildings, slopes, etc.).
• Physical features on property lines and within 50' of the boundaries of the site for commercial of industrial projects (fences, walls, power poles, buildings, slopes, etc.).
• Location of all buildings (main and accessory), fences and/or walls, paved areas and landscaped areas labeled existing of proposed.
• Location of proposed septic system, if applicable.
• Dimension from building(s) to property line and to other buildings on subject property.
• Off-street parking including dimensions of individual parking spaces dimensions of loading spaces, internal circulation pattern for pedestrian and vehicular traffic, wheel stops, and type of surfacing proposed.
• Driveway widths and type of surfacing proposed.
• Residential trash pad (minimum 3' x 7') Of trash enclosures.
• Location and proposed screening of any outdoor equipment.
• Location of outdoor storage areas.
• Exterior architectural projections.
• Location of all entrances and loading doors, if applicable.
• Signs, including area, location, height, and illumination.
• On-site lighting.
• Proposed phases, if any.

ITEMS SPECIFIC TO PRELIMINARY GRADING AND DRAINAGE PLAN:

• Estimated quantities of earth to be moved.
• Direction of drainage flow with slope in percentage.
• Location of on-site and off-site drainage facilities.
• Proposed grades and elevations.
• All existing contours and structures on the site and within 25' of the boundaries of the site.
• Location and elevation of all existing and proposed circulation and drainage improvements and drainage courses within 100' of the boundaries of the site.

ITEMS SPECIFIC TO PRELIMINARY LANDSCAPE PLAN:

• Computation of landscape and the square footage proposed to meet the requirement.
• Location of landscaping including existing and proposed trees (including existing street trees), shrub masses, and ground cover area.
• Plant list, including botanic name, number and sizes.

INFORMATION SPECIFIC To ELEVATIONS:

• All sides of all proposed structures, including screening.
• Height of all buildings and structures.
• Exterior building materials, textures, and colors.
• Cross section of structures.

Step 4: Complete Regulatory Permit Application

The City of Calexico, CA may authorize up to ten applicants per commercial cannabis activity category. The commercial cannabis activity categories permitted are cultivation, manufacture, testing, distribution, and transportation. Prior to initiating operations and as a continuing requisite to operating a commercial cannabis activity, the applicant shall obtain a validly issued CUP or enter into a fully executed development agreement agreed to by the city council. Each applicant may only apply for and operate up to two commercial cannabis activity facilities in the city.

​There is an application fee to be determined by resolution by the city council, an executed reimbursement agreement on a form provided by the city to fully reimburse the city for all fiscal impacts, costs, expenses, and fees, including but not limited to attorney fees and consultant fees, incurred by the city related to the commercial cannabis activity, and a deposit in an amount as provided for in the reimbursement agreement terms.

​Carefully review and complete the Commercial Cannabis Activity Regulatory Permit Application

The application consists of the following:
​

• Applicant Information
• Location Information
• Primary Contact
• Property Owner information
• Financial Disclosures

As of October 2, 2017, Medical and Recreational Cannabis Businesses can now submit applications in the City of Woodlake, CA.  Applications are being accepted in accordance with Woodlake Ordinance No. 611 and within approved zones in accordance with Woodlake Ordinance 612.
 
Woodlake is accepting application for the following Cannabis Businesses:
​

• Cannabis Dispensary License Application - a facility where cannabis or cannabis products, are offered, either individually or in combination, for retail sale, including an establishment that engages in delivery of cannabis or cannabis products as part of a retail sale.
• Cannabis Cultivation License Application - any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. “Cultivation” also includes nurseries.
• Cannabis Manufacturing License Application - a person who conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, or that packages or repackages cannabis or cannabis products or labels or re-labels its container.
• Cannabis Distribution License Application - means a person engaged in procuring cannabis from a cultivator, and/or procuring cannabis products from a manufacturer, for sale to a licensed commercial cannabis business.
• Cannabis Testing License Application -   a laboratory, facility, or entity in the State, that offers or performs tests of cannabis or cannabis products and that is both of the following: 1) Accredited by an accrediting body that is independent from all other persons involved in commercial marijuana cannabis activity in the State.  2) Registered and Licensed by the State Department of Public Health.

​
Anyone interested in operating a medical cannabis business within the City of Woodlake, CA must have a Cannabis Regulatory Permit and must complete the City’s Conditional Use Permit process:

​Item 1:  Complete Background Investigation Packet to Obtain Employee Permit:

As part of the application process each applicant will be required to complete the Background Investigation Packet included in the application. 

Items that need to be completed as part of the packet at the Woodlake Police Department:

• Live Scan (Last page of Application Packet)
• Photograph (Taken at Woodlake Police Department)
• Fingerprinting (Taken at Woodlake Police Department)
• Copy of Driver License, DMV issued ID card or Passport
• Proof of address (Driver License/DMV issued ID and/or recent utility bill under owner’s name)

As part of the background investigation each owner will be required to submit a list of 5 references.  The background Investigation needs to be completed by each owner and each employee. 

The grounds for denial of an Employee Permit can be one or more of the following:

• The applicant has been issued a local or State permit related to Cannabis production at any other location in California, or another state, and that permit was suspended or revoked, or the applicant has had disciplinary action relating to the permit.
• Consistent with State Law or other applicable State law, the applicant has been:
  • Convicted of a serious or violent offense as listed under California Penal Code sections 667.5 and l 192.7(c); or
  • Convicted of any of the offenses listed in Business and Professions Code section 19323; or.
  • Convicted of a misdemeanor involving moral turpitude as defined under State law (generally crimes relating to theft and dishonesty) within the five (5) years preceding the date of the application; or
  • Convicted of a felony involving the illegal use, possession, transportation, distribution or similar activities related to controlled substances, as defined in the Federal Controlled Substances Act, unless the individual has received a Certificate of Rehabilitation as defined in State Law; or has engaged in misconduct related to the qualifications, functions or duties of a permittee.
• Consistent with State Law or other applicable State law, the applicant has engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices.
• The applicant has committed any act, which, if done by a permittee, would be grounds for suspension or revocation of a permit.
• An applicant is under eighteen (21) years of age, or any older age set by the State.

Item 2:  Application and Regulatory Fees for all Cannabis Businesses:

There are several fees pertaining to the Cannabis Business Application and all fees must be submitted with the final application. If an application is approved and the business is operational, each business must pay an annual regulatory fee which will be used to monitor and confirm compliance with local and state regulations.

Item 3:  Acceptable Cannabis Business Locations in Woodlake, CA:

Choosing the right location is critical for your business.

Information on the facility location will be required when submitting the Woodlake Cannabis Business Application.  Here is a list of information that is needed:

• Proposed Location of Business including address, lot area in square feet or acres, existing zoning, parcel number, and proposed use description.
• A site plan indicating the lot, all existing and proposed buildings, and distance from the buildings to the property lines;
• Floor plan drawn to scale and listing total square footage;
• Name and Address of Property Owner;
• Safety and Security Plan;
• The location must be more than 1000 feet from a public or private school;
• A street map drawn to scale indicating the proposed premises, at the center of a circle with a labeled 1000-foot radius; and
• Provide evidence of a legal right to occupy

City of Woodlake Zoning Map:

At a minimum the Cannabis Business location must comply with these building code operational requirements and restrictions:

• The Operator shall obtain all required building permits and comply with all applicable City standards. The Premises in which the Cannabis business occur shall comply with all applicable local, State and federal laws, rules, and regulations including, but not limited to, building codes and the Americans with Disabilities Act, as certified by the Building Official of the City.
• The Responsible Party shall ensure that the Premises has sufficient electrical load for the Cannabis production. The use of generators is prohibited other than for temporary emergency use.
• Butane and other flammable materials are permitted to be used for extraction and processing provided the Operator complies with all applicable fire and building codes, and any other laws and regulations relating to the use of those products, to ensure the safety of that operation. Employee training records and safety equipment must be maintained and all equipment must be compliant with State safety regulations in §§40100 – 41099 and as they may be amended. The Woodlake Fire Department shall inspect and approve the Premises for use of the products prior to City's issuance of a certificate of occupancy, or otherwise prior to opening for business, to ensure compliance with this requirement.
• The Operator shall comply with all laws and regulations pertaining to use of commercial kitchen facilities for the Cannabis production.
• The Operator shall comply with all environmental laws and regulations pertaining to the Cannabis production, including the use, storage, and disposal of water and pesticides, and shall otherwise use best practices to avoid environmental harm. The cannabis business must provide proof of a Board of Equalization Seller’s Permit.

 
Item 4: Complete the Specific Cannabis Business Application:    DEADLINE November 3rd, 2017

All applications must be submitted in PERSON to the Community Development Department:

Jason Waters
Community Development Director City of Woodlake
350 N Valencia Ave
Woodlake, CA 93286
559-564-8055

For Dispensaries Only the application process will be split into three phases:

Phase 1 – Background

Phase I requires each applicant to complete the Phase I background materials, which include the attached live scan form and commercial cannabis employee permit application, as well as an indemnification agreement to hold harmless the City of Woodlake. Each applicant will be required to submit to a criminal background investigation. Fingerprints and Photograph shall be required from each applicant as part of this process.

Phase 2 – Application Requirements:  All applicants must pass the background investigation to move on to Phase 2.

• Proposed business plan summary and budgets (20 Points Possible);
• Site location and development plan (20 Points Possible);
• Proof of capitalization (20 Points Possible);
• Management team (20 Points Possible); and
• Summary of security practices (20 Points Possible).

Phase 3 – Application Requirements:

• Product safety labeling;
• Community Benefits
• Hiring and Employment Practices

Final Selection:

Following an objective ranking of the above application materials, applicants may be invited for interview(s) with City staff and/or representatives. Following completion of the interview(s), City staff intends to bring forward for the City Council’s consideration up to two recommended facility operators. The recommended operator should be prepared to attend a City Council meeting in Woodlake in order to provide a public presentation before the Mayor and City Council introducing their team and providing an overview of their proposal. 

Currently the City of Hollister, CA is accepting applications to operate a medical cannabis facility. The application process is adopted per the Hollister Municipal Code (HMC) section 5.42.290(A). Follow these steps to apply for a Medical Cannabis Facility license: 

Step 1:  Determine Location for Medical Cannabis Facility

Step 2:  Complete Criminal History Check (Live Scan)

Step 3:  Complete and Gather All Required Documentation for the Hollister Medical Cannabis Facility Application Form

Prior to applying, review the information and learn about the application process and which documents you will need.  Taking a good look at the entire application and ensure all the of required information is available. 

Step 1:  Determine a location for Medical Cannabis Facility
 
The application must include the address and a detailed description of the proposed Medical Cannabis Facility. The applicant must also describe all sensitive uses within a one thousand (1,000) foot radius of the proposed location and certify that the proposed location is not within six hundred (600) foot radius of a school whether it be public or private as described in HMC Section 5.42.160. The Medical Cannabis Facility (MFC) must be located in the appropriate zoning meet all of the locational requirements as in described in HMC Chapter 5.42.

​Hollister Cannabis Zoning Map:

Pertaining to the proposed facility location, there are details that should be included in your business plan.  Include as many details as possible regarding:

• Description of day-to-day operations. See HMC Section
• How the MCF will conform too local and state law.
• Odor control plan with detailed ventilation options for mitigating noxious odors.
• The application should describe any proposed “green” business practices relating to energy and climate, water conservation, and materials and waste management.
• Signage
• A schedule for beginning operation, including a narrative outlining any proposed
• Construction/improvements and a timeline for completion

For additional information regarding the facility that will be used, review the Medical Cannabis Facility (MCF) application at www.hollister.ca.gov  that will outline the following:  

• Local regulations governing Hollister MCF’s: Hollister’s Municipal Code (“HMC”) Chapter 5.42.
• Additional application information: Ordinance No. 1131.
• Local Zoning Ordinance Chapter 17.16
• Frequently Asked Questions

Step 2:  Complete Criminal History Check (Live Scan)

Any applicant listed on the application will undergo a Fingerprint-Based Criminal History Records Check conducted by the City Police Department pursuant to Section 5.42.060 of the Municipal Code; included will be a Live Scan and any indicated follow-up investigation; and each individual applying to be a principal of the MCF (“Principal”) must apply for a Live Scan criminal history check.
By appointment only this process must be conducted by the City of Hollister. Contact Eva Foster by phone at (831)636-4330 or by email at efoster@police.hollister.ca.us in order to schedule your appointment. Due to limited staff resources, you are encouraged to schedule your appointment as early as possible in order complete your Live Scan requirement before the due date of the application. The City cannot guarantee that it will be able to accommodate applicants who do not attempt to schedule an appointment until near the application deadline, and the City is not responsible for applicants who are unable to schedule an appointment prior to the application deadline.

There will be a Live Scan processing fee of $93 per person, which must be paid at the time of the Live Scan. The Live Scan process involves submitting fingerprints to the DOJ, which will review for criminal offender record information (CORI). CORI reports will be provided to the City of Hollister for the sole purpose of determining eligibility for operating a MCF. Principals who do not meet criminal history eligibility requirements will be disqualified.

Step 3:  Complete and gather all required documentation for the Hollister Medical Cannabis Facility Application Form

Application for Medical Cannabis Facility License

Application Procedure

Applicants must hand deliver a complete comprehensive and signed copy of the Hollister Medical Cannabis Facility Application Form, and all attachments along with a flash drive which contains one comprehensive and signed copy of the application in a pdf format, and payment of $7,492, starting on March 15, 2017 for Dispensary Operations the initial application and fee must be received by 4:00 PM on April 17, 2017. Payment must be made by a certified check, cashier’s check or money order made payable to the City of Hollister. Application Fees are non-refundable. A complete application will consist of the following information:

• The Hollister Medical Cannabis Facility Application Form;
• Proof of Live Scan payment for each of the Principals;
• Indemnification Agreement (attached); and
• All of the information about the Medical Cannabis Facility that will be evaluated as described in the approval Stage 1- 3 below.  

The City Manager or designee shall administer the following three stage process for the screening and evaluation of medical cannabis facility regulatory permit applications. The process for obtaining approval of a license to operate a medical cannabis facility within Hollister, CA consists of the following three stages:

Stage 1:  Preliminary Determination of Applicant and Facility Eligibility

The application is evaluated for completeness, including the execution of any required agreements accompanying the application form and the following documentation:

• Copy of the applicant’s Articles of Incorporation or Articles of Organization;
• Copy of the applicant’s bylaws or operating agreement;
• Copy of the applicant’s Certificate of Status issued by the California Secretary of State;
• Copy of the applicant’s Entity Status Letter from the California Franchise Tax Board;
• The applicant’s Federal Employer Identification Number;
• Evidence of the legal right for the applicant to occupy and use the property for a medical cannabis facility. In the event that the applicant is not the owner of record of the property, the applicant must provide a notarized statement from the owner of the property acknowledging and consenting to use of the property as a medical cannabis facility by the applicant; and
• The identification of any individual with a financial interest in the applicant including the address, phone number, email address, description of percentage ownership interest, and copies of government issued identification for each individual;

There is a review of evidence to determine that 75 percent of the applicants and managers of the medical cannabis facility are residents of the State and have been for at least three years immediately preceding the date of the application.

All government issued identification will be reviewed to determine that each applicant, manager, and employee of the medical cannabis facility is over eighteen (18) years of age and that no applicant, manager, or employee of the MCF is a licensed physician making patient recommendations for medical cannabis.

All eligible applications will move onto stage 2.

Stage 2:  Applicant and Facility Evaluation and Scoring
A score ranking of 1475 Points will be required to move to Stage 3.  Applications will be given a score based on the following criteria:

​Stage 3:  Public Meeting and City Council Final Selection

The City Council will make the final determination on whether to issue or deny medical cannabis facility regulatory permit applications according to the following procedure:

• The City Manager or designee shall prepare a report bringing forward to the City Council the points scored by the application in the initial portion of Stage 2 and the committee’s evaluation in the subsequent portion of Stage 2;
• The application shall be properly included on the agenda of a City Council meeting as a public hearing, and the above report shall be presented to the City Council and public
• The applicants shall attend the public hearing to answer any additional questions and potentially make a presentation to the City Council and public; and
• The City Council shall determine whether to issue or deny the medical cannabis facility regulatory permit the application; in so doing the City Council may impose such additional terms and conditions on the issuance or renewal of the regulatory permit and the operation of the facility as the City Council deems appropriate.

It is the right of the City Council to request and obtain additional information from any candidate who submitted a proposal. The City Manager will present to the City Council the final ranking in which the City Council may award at its discretion cultivation, manufacturing, distribution and testing but only two (2) Dispensary permits pursuant to HMC Section 5.42.290. The City Council reserves the right to award a lesser number of permits, or to award no permits at all. Only those applicants on the final list will be eligible to be issued a permit from the initial permit process.

The top Applicants which are being recommended by the City Manager for consideration to the City Council should be prepared to attend a City Council meeting in Hollister in order to provide a public presentation before the Mayor and City Council introducing their team and providing an overview of their proposal if requested by the City Manager.

​Currently the City of Baldwin Park, CA is accepting applications to obtain a permit for Medical Cannabis Manufacturing and Distribution activities.  This application process started September 14, 2017 and will last until further notice. 

This application process is a competitive process. Only 15 applicants will be selected for permit issuance. All fees paid are nonrefundable regardless of outcome. 

Anyone interested in operating a medical cannabis business within the City of Baldwin, CA must consider the following:

Item 1:  Primary Background Information

As part of the application process each applicant will be required to submit a LiveScan/Background Check Authorization Form. 

In addition to completing the form the following will need to be submitted:

• Receipt of background check and Live Scan
• Pictures (2) of applicant (two passport quality photographs 2” x 2”)
• Copy of Social Security Card
• Copy of Valid Driver’s License, Valid DMV issued ID Card or Valid Passport
• Proof of address (DMV-issued ID/driver’s license, and/or recent utility bill under Principal’s name)
• List whether the applicant(s) has/have other licenses and/or permits issued to and/or revoked from the applicant in the three years prior to the year of the permit application.  This list should include such other licenses and or permits relating to similar business activities as in the permit application. If applicable, please list the type, current status, issuing/denying for each license/permit.
• List any and all partners or principals who have been found guilty of (a) a violent felony, (b) a felony or misdemeanor involving fraud, deceit, embezzlement, or moral turpitude, or (c) the illegal use, possession, transportation or distribution (or similar activities) related to controlled substances, as defined in the Federal Controlled Substance Act, with the exception of medical cannabis-related offenses for which the conviction occurred after the passage of the Compassionate Use Act of 1996.

 
Essential Supplemental Information Required:

Criminal history:  Applicant must state that no Manager or Principal of an applicant has any violent or serious felony conviction(s) as specified in Sections 667.5 and 1192.7 of the Penal Code or any felony conviction involving fraud, deceit or embezzlement.  Applicant must identify any pending criminal complaint(s). The Applicant must certify, as a condition of maintaining the permit, that it will not employ any person with any type of violent or serious felony conviction(s) as specified in Sections 667.5 and 1192.7 of the Penal Code or any felony conviction involving fraud, deceit or embezzlement.  Applicants must certify as a condition of maintaining the permit that they will not employ as managers or employees any person with any controlled substance related misdemeanor conviction
 
Item 2:  Consider all Fees Pertaining to Submitting a Cannabis Permit Application
​
All fees are to be paid by cashier’s check or money order and made payable to the “City of Baldwin Park”.

Item 3:  Acceptable Commercial Cannabis Business Locations
​
Choosing the right location is critical for your business.

Information on the facility location will be required when submitting the Baldwin Park Cannabis Permit Application.  Here is a list of information that is needed:

• Proposed Location of Business (Include APN’s)
• Name and Address of Property Owner
• Name and Address of school closest to the proposed location
• Description of the neighborhood around the proposed location
• Neighborhood Compatibility Plan
• Safety and Security Plan
• Air Quality Plan

Required Plan Submittals (Plans must be drawn to scale):

• Site Plan for each potential location. The Site Plan must be dimensioned and show the entire parcel, including parking and additional structures. 
• Conceptual Building Elevations if new construction.  If existing buildings, include any proposed exterior building alterations if applicable.
• Floor Plans, including any proposed interior alterations.
• Vicinity Map. It is the Applicant’s responsibility to prove to the City that the cannabis operation’s location is at least 600 feet from all sensitive uses and 50 feet from all residential zones.  The measurement is from property airspace line to property airspace line on each lot.  However, in the case of commercial condominiums, measurement is taken from the airspace property line.  
• Photos of the site and building(s) from all sides/directions

Please note that multiple sites can be considered per application.  Attach proof of ownership or signed statement from the owner/signed lease agreement. 

Essential Supplemental Information Required:

• Suitability of the proposed property:  Applicant must demonstrate that the proposed location(s) exceeds all buffer zones established in the Cannabis Ordinance.

​
City of Baldwin Park Cannabis Map:

Item 4:  Complete the Permit application and Essential Supplement Information

Complete the Baldwin Park Cannabis Permit Application in addition to the background information, finding a location and paying the required fees. 

There are several pieces of Essential Supplemental information that must be submitted along with the application:
​

• Suitability of security plan:  The security plan needs to include the presence of security personnel on premises or patrolling the premises twenty-four (24) hours per day. The security plan must demonstrate a method to track and monitor inventory so as to prevent theft or diversion of cannabis. The applicant must describe the enclosed, locked facility that will be used to secure or store cannabis when the location is open and the steps taken to ensure cannabis is not visible to the public. The Applicant's security plan must include measures to prevent the diversion of cannabis to persons under the age of twenty-one (21).
• Suitability of business plan and financial record keeping:  The Applicant must describe a staffing plan that will provide and ensure safe dispensing, adequate security, theft prevention, and the maintenance of confidential information
• Regulatory compliance history:  Applicant must provide a record of any citations, sanctions, investigations, suspensions or any time in which Applicant has had their license, permit, registration or authorization revoked for any reason, including criminal, patient safety, workplace safety, wage and hour, discrimination. Applicant must identify whether it has had a permit or license revoked by any city or the State of California.  Applicants must also identify any administrative penalties assessed against their business.
• Good legal standing:  Applicant must certify that the Cultivation and/or Manufacturing facility, including its principals and managers acting in their own official capacities, have not violated any local, state or federal tax, environmental, consumer protection, food safety, workplace safety, discrimination, human rights, employment, labor or other laws relevant to the operation of a cannabis business in the state.
• Community engagement:  It is a good idea for each applicant to identify any involvement in the community, other non-profit association, or neighborhood association. Applicant should identify the percentage of employees it guarantees will be hired from the City of Baldwin Park, if any.  Applicant should identify if it is a minority owned business.  Applicant should have a comprehensive strategy to recruit, hire, promote and train a diverse workforce, including women, people of color, veterans, people with disabilities, LGBTQ individuals and immigrants.
• Environmental impact:  It the facility uses renewable energy sources then this needs to be indicated. 
• Labor relations:  Applicant shall state whether it provides employer-paid health insurance benefits for its employees as required by state and/or federal law.  Applicant must establish that it provides equipment, standards and procedures for the safe operation of its facilities and engages employees on best practices. Applicant should identify if it provides training and educational opportunities for employee development. Applicant must certify that neither it nor its Principals have any previous record of violating federal or state laws relating to workplace safety, wages and compensation, discrimination, or union activity.
• Mitigation fees:  The mitigation fee the business is willing to pay to the City must be included in the Development Agreement.  A separate fee shall be identified for each cannabis operation category (i.e., Cultivation, Manufacturing, Testing, and Distribution/Transportation).  The fee for cultivation will be calculated based on square footage. The fee for other categories shall be proposed by each applicant.

Currently the County of Monterey, CA is accepting applications to obtain a permit for all medical cannabis activities.  This application process started November 9, 2016.

Anyone interested in operating a medical cannabis business within the unincorporated area of the county must obtain the following:

Step 1:  Obtain and maintain a Use Permit/Coastal Development Permit

Step 2:  Obtain and maintain a Commercial Medical Cannabis Permit

Step 3:  Obtain and maintain a Business License

Step 4:  Comply with the self-reporting Commercial Cannabis Business Tax Law

Multiple licenses and permits (stacking)

Depending on the type of medical cannabis business there are different types of permits and business licenses required.  Subject to State restrictions by license type. Chapter 3.5 of Division 8, of the California Business and Professions Code contains limitations on the number and types of licenses that may be held by one licensee. Section 19328 of the Business and Professions code allows a “licensee” to hold a state license in up to two separate license categories (e.g. Cultivation Type 3A and Manufacturing Type 6). Restrictions apply to the types of licenses that can be held at one time.  The County may permit multiple cannabis businesses on one parcel (e.g. two or more businesses with separate premises on the same property) subject to Use Permit restrictions, and subject to limitations through future State regulations.

Step 1:  Obtain and maintain a Use Permit/Coastal Development Permit

Cannabis related land use permits will begin with a Development Review Committee (DRC) application. Materials submitted with the application should address those items listed in Section 21.67.100 of the Inland zoning ordinance (Title 21) or Section 20.67.100 of the coastal zoning ordinance (Title 20). Application materials must also address requirements specific to the type of cannabis business activity requested.

Cannabis operations must be located in the appropriate zoning district and may not be located within 600 feet of a school, park, or drug recovery facility. Please note: all cultivation must be within an existing warehouse or greenhouse that was legally established before January 1, 2016, and all operations and development must comply with all relevant County land use and development standards.

File all applications for a Use Permit for a commercial medical cannabis activity with the Resource Management Agency/Planning on the form.  Every application must have the following documentation:

• Notarized, written authorization from all persons and entities having a right, title or interest in the property that is the subject of the application consenting to the application and the operation of the proposed commercial medical cannabis activity on the subject property.
• The name and address of all persons and entities responsible for the operation of the commercial medical cannabis activity, including managers, corporate officers, any individual with an ownership interest, any member of a board of directors, any general or limited partner, and/or any member of a decision-making body for the commercial medical cannabis activity.
• Site plans, floor plans, conceptual improvement plans, and a general description of the nature, size, and type of commercial medical cannabis activity(ies) being requested.
• An operations plan including the following information:
  • On-site security measures both physical and operational and, if applicable, security measures for the delivery of cannabis associated with the commercial medical cannabis business;
  • Standard operating procedures manual detailing how operations will comply with State and local regulations; how safety and quality of products will be ensured; record keeping procedures for financing, testing, and adverse effect recording; and product recall procedures;
  • Proposed hours of operation;
  • Waste disposal information;
  • A water management plan including the proposed water supply and proposed conservation measures;
  • Medical recommendation verification and youth access restriction procedures;
  • Product supply chain including information on where cultivation occurs, where the product is processed or manufactured, any required testing of cannabis or cannabis products, transportation, and packaging and labeling criteria;
  • Record keeping policy;
  • Track and trace measures;
  • Sustainability measures including water efficiency measures, energy efficiency measures, high efficiency mechanical systems, and alternative fuel transportation methods;
  • Odor prevention devices;
  • Size, height, colors, and design of any proposed signage at the site; and
  • Parking plan.

Additional application requirements - The Director of Planning may require additional information depending on the type of Commercial Medical Cannabis activities: 

• In reviewing an application for a Use Permit to operate a cannabis manufacturing facility, the Director of Planning or his or her designee may request the following additional information:
  • Information on products used in the manufacturing process including the cannabis supply chain, liquids, solvents, agents, and processes. Cannabis shall be obtained from a licensed cultivator or licensed distributor operating in compliance with all local and state laws;
  • Storage protocol and hazard response plan;
  • Quality control measures; and
  • Any other information requested by the Director of Planning.

Detailed inland requirements can be found here:  
https://www.municode.com/library/ca/monterey_county/codes/code_of_ordinances?nodeId=TIT21ZO_CH21.67COMECAAC

Step 2:  Obtain and maintain a Commercial Medical Cannabis Permit

Permit Application

File all applications for a commercial medical cannabis permit with the Resource Management Agency/Planning on the form.  In all cases the application must have the following documentation:

• All applicants' names, mailing addresses, and if available, e-mail addresses.
• A twenty-four (24) hour or nighttime contact phone number.
• The physical address and assessor's parcel number(s) (APN or APNs) of the property upon which the proposed commercial medical cannabis operation will be located.
• Proof of ownership of premises, or if the premises on which the commercial medical cannabis operation is to occur is rented or leased, written permission from the property owner containing the property owner's notarized signature that authorizes the tenant or lessee to engage in commercial medical cannabis activities at the site.
• A "to scale" diagram of the premises, showing, without limitation, a site plan, building layout, all entry ways and exits to the facility, loading zones and all areas in which medical cannabis and medical cannabis products will be stored, grown or dispensed.
• If the applicant is a business entity or any form of entity, information regarding the entity, including, without limitation, the name and address of the entity, its legal status, and proof of registration with, or a certificate of good standing from, the California Secretary of State, as applicable.
• The full name, date of birth, social security number, present address and telephone number for all property owners and for all owners, supervisors, employees, and persons having a ten (10) percent or more financial interest in the commercial medical cannabis activity that is the subject of the application or, if the applicant is an entity, having a ten (10) percent or more financial interest in the entity.
• All property owners and all owners, supervisors, employees, and persons having a ten (10) percent or more financial interest must submit fingerprints and other necessary information for a criminal background check.
• Written proof (i.e., California driver's license, California identification card, or certified birth certificate) that all applicants, property owners, supervisors, and employees are eighteen (18) years of age or older.
• The names and addresses of any other commercial medical cannabis operations currently being operated by the applicant, or that had previously been operated by the applicant and a statement of whether the authorization for any such operation had been revoked or suspended and, if so, the reason therefore.
• A full description of the proposed activities and products of the commercial medical cannabis operation.
• A description of the type of State license(s) that will be required for the proposed operations pursuant to California Business and Professions Code Section 19300 et seq., including a description of the proposed total canopy area of any cultivation or nursery operation.
• A detail of the procedures to be utilized at the premises including a description of how chemicals, pesticides and fertilizers will be stored, handled, used and disposed of; and if applicable, manufacturing methods, the transportation process, inventory procedures, and quality control procedures.
• Proposed hours of operation.
• A waste disposal plan.
• If applicable, provide the applicant's seller's permit number issued pursuant to Part 1 (commencing with Section 6001) of Division 2 of the California Revenue and Taxation Code or indicate that the applicant is currently applying for a seller's permit.
• A statement by the applicant that it has the ability to comply with all laws regulating businesses in the State of California and that it shall maintain compliance during the term of the permit.
• Authorization for the County, its agents and employees to seek verification of the information contained in the application.
• Certification, under penalty of perjury, that all the information contained in the application is true and correct. 

Application materials for a Commercial Medical Cannabis Permit must contain all of the information required by Section 7.90.050 of the Monterey County Code. Chapter 7.90 can be found here:
https://www.municode.com/library/ca/monterey_county/codes/code_of_ordinances?nodeId=TIT7BUTALIRE_CH7.90COMECAPE

FEES:  The fee for a Commercial Medical Cannabis Permit application is a deposit fee. The County will track time invested on each permit application and refund the amount of the deposit not used or bill the applicant if County costs for processing the permit exceeds the deposit amount. A fee for renewal of a Commercial Medical Cannabis Permit will be due annually.

Step 3:  Obtain and maintain a Business License

If the Board of Supervisors adopts an ordinance establishing Business License requirements, an annual business license will be required. Business Licenses are not issued until all required County approvals (Use Permit/Coastal Development Permit and Commercial Medical Cannabis Permit) and State licenses, when applicable, have been obtained. Fees and application requirements will be established by the Treasurer/Tax Collector for Business Licenses if and when a Business License Ordinance is adopted by the Board of Supervisors and becomes operative.

• State Licenses:  Starting January 2018, a license to operate a commercial cannabis business will be required. Once a state license is required, Commercial Medical Cannabis Permits will not be approved or renewed without evidence of required a state license.  For information regarding State Licensing, please visit the frequently asked questions on the State of California website: http://www.bmcr.ca.gov/about_us/faq.shtml

Step 4:   Comply with the self-reporting Commercial Cannabis Business Tax Law

Beginning January 1, 2017, anyone engaged in commercial cannabis business activities as described in MCC Section 7.100.030(A) and (B) shall be subject to the annual tax. These activities include cultivating, dispensing, producing, processing, preparing, storing, providing, donating, selling, or distributing cannabis in the unincorporated area of the County. This includes operations currently engaged in commercial cannabis business activities that have not yet obtained the required County permits or state licenses.
​
Anyone engaged in commercial cannabis activities, as stated above, shall immediately self‐report such activities to the Monterey County Resource Management Agency (RMA) ‐ Planning Services using the Treasurer‐Tax Collector’s Commercial Cannabis Business Tax Self Reporting Form. The commercial cannabis business shall disclose the type, nature, location, and size of the cannabis operation. The completed self-reporting form should be emailed to cannabis@co.monterey.ca.us. If mailing hardcopies, please send to: Monterey County RMA c/o Jackie Nickerson, 168 W Alisal, 2nd Floor, Salinas, CA 93901.

Commercial Cannabis Business Tax Administrative Rules and Procedures found here:  http://www.co.monterey.ca.us/home/showdocument?id=2355

Currently the city of Long Beach, CA is accepting applications for NEW medical marijuana cultivation, lab testing and manufacturing facilities.  Beginning 9/1/2017 Long Beach will start accepting distribution applications as well.  Applications are accepted on a first come first serve basis Monday-Friday, 7:30 AM –  4:00 PM.  The Long Beach Application process is very complex. Individuals should consider hiring assistance to manage, organize, and write the application.
​
Details regarding the specific rules can be found in the  Long Beach Municipal Code Chapter 5.90 .

At this time, there is no application deadline.  Applications should be submitted in-person to:

Long Beach City Hall
4th Floor Business License Counter
333 W. Ocean Blvd, Long Beach, CA 90802
7:30 AM – 4:00 PM
 
Individuals seeking to obtain a Medical Marijuana Manufacturing Business License in Long Beach, CA can start by following 4 important steps: (Step 2-4 must be submitted in order).

Step 1:  Identify an acceptable medical marijuana manufacturing facility location.
Step 2:  Completing the application for a NEW Medical Marijuana Business License.
Step 3:  Complete the Manufacturing Supplemental Information Form.
Step 4:  Develop a Manufacturing Operations Plan.
 
Step 1:  Identify an acceptable medical marijuana manufacturing facility location:

Applicants identifying an acceptable property should be aware that the Long Beach Marijuana Code 5.90.030 has put forth the following restrictions that must be adhered to:

• No Medical Marijuana Business may be operated in an area zoned exclusively for residential use
• No Medical Marijuana Business may be located within one thousand (1,000) foot radius of a public or private school (as defined in Health and Safety Code 11362.7689(h));
• No Medical Marijuana Business may be located within one thousand (1,000) foot radius of a public beach;
• No Medical Marijuana Business may be located within a six hundred (600) foot radius of a public park or public library; and
• No Medical Marijuana Dispensary may be located within one thousand (1,000) foot radius of another Medical Marijuana Dispensary.
• Medical marijuana applicants seeking to locate in areas zoned Port-related Industrial (IP) must first obtain a Harbor Development Permit in order to ensure consistency with the Port Master Plan prior to submitting a business license application to the 4th floor of City Hall.  For more info on Port-related or Port-oriented uses, please contact the Port Permits Desk at (562)283-7102 or HDPdesk@polb.com.

The Planning Bureau will review the previous and proposed use of the property as well as the parking requirements.  The following are required by the Planning Bureau:

• Site plan; and
• Floor plan detailing the proposed use of each room/space on the property, the square footage of each room/space, and any parking spaces that will be provided by the business or located on the property.  
• Applicants also need to take into consideration parking requirements for an acceptable property location:

Proposed Use: Cultivation/ Distribution/ Processing/ Manufacturing
Required # OF Parking Spaces: 2 per 1,000 square feet of Gross Floor Area

Medical Marijuana Buffer Map:

Department Reviews and Inspections:

• It is recommended to enlist the services of a professional to develop plans for the building, zoning, public health, and fire prevention elements of your building. Please have a professional sign the plans before submission to the Development Services department. 
• After your application has been submitted, you will be contacted by the Development Services department to submit plans for the proposed facility.
• The Department Review and Inspection process can take the longest time to complete.  To ensure your application is processed as quickly as possible, make sure you are aware of all the requirements needed and have a full and complete set of plans for staff to review.
• Refer to the Medical Marijuana Facility Permit Requirements for further details.

Step 2:  Complete the Application for a NEW Medical Marijuana Business License.

When applying, applicants will be required to pay an application fee:

# of Owners and Business Managers:  Application Fees
1:  $200.45
2:  $345.45
3:  $490.45
4:  $635.45
5:  $780.45
6:  $925.45

***Checks should be made payable to the “City of Long Beach” ***
***Application fees are non-refundable.  If applicant is not successful in obtaining a license, a refund may be requested by emailing a completed Refund Request Form to  lbbiz@longbeach.gov ***
 
Application Checklist Overview: Medical Marijuana Business License Application (item details found on application).

• An interior floor plan of the proposed premises
• Photographs accurately depicting the entire interior and exterior of the proposed business site.
• A map of any surrounding business and/or residence within approximately 300 feet.
• Proof of Worker’s Compensation Insurance. 
• Proof of Liability Insurance.
• Copy of CA Seller’s Permit. NOTE: The Seller’s Permit must be issued to the proposed business site. 
• Copy of Property Owner’s City of Long Beach Commercial/Industrial Business License
• Copy of Fictitious Business Name Filing, if applicable.
• Corporation, Limited Liability Companies, Limited Liability Partnerships: a. Copy of your Articles of Incorporation/ Organization; and b. Copy of your Statement of Information
• Operating Plan to include the information as outlined in the operating plan instructions. 
• If the applicant is not the owner of the proposed business location, a notarized Property Owner Authorization Form found on page 13 of the application. The Property Owner Authorization and Notary must be original. Photocopies will not be accepted.
• Copy of the title or deed to the property.  If the applicant is the owner of the proposed business location, a copy of the title or deed to the property. 
• Proof Entity is Registered and in Good Standing with Secretary of State and Franchise Tax Board (website screenshots will suffice).  
• Copy of one (1) fully legible valid government issued form of identification for each Medical Marijuana Business License applicant owner and business manager.
• Copy of Live Scan receipt/completion for each owner and business manager.
• Copy of Labor Peace Agreement (if available/applicable)

 
Live Scan: 

• All owners and business managers identified in the marijuana business license must complete a Live Scan.  Request for Live Scan Service Form

• Copies of the Live Scan forms must be submitted with the Medical Marijuana Business License Application Packet.
• Upon hire all employees of the business must have Live Scans completed and a copy of the Live Scan results must be included with the employee personnel file.
• It is recommended to use a third party Live Scan provider (Policy Department has limited availability).  https://oag.ca.gov/fingerprints/locations.
• Complete all blank fields in the Request for Live Scan Service Form under the Application Information section. 
• Do not alter any prefilled information
• A Live Scan fee will be charged at the time of Live Scan by the LBPD or the third party Live Scan provider.
• If, at any point, the LBPD background investigation determines that one or more of the owners is ineligible pursuant to LBMC Section 5.90.050, the application will be deemed rejected.

 
License Taxes:

• A tax of 6% of gross Receipts must be paid by Dispensaries, Manufacturing Facilities, Laboratory Testing Facilities, and Distributors.
• All marijuana businesses will pay a minimum tax of ($1,000) annually. 
• LICENSE TAXES ARE DUE BEFORE ISSUANCE OF THE MEDICAL MARIJUANA BUSINESS LICENSE.

 
Step 3:  Complete the Manufacturing Supplemental Information Form. 
 
In addition to the Medical Marijuana Business License Application the Supplemental Information Form will require the following information:

• Which license will you be applying for under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA)?
• Will the facility be utilizing a closed-loop extraction system?
• What type(s) of extraction will you be performing?
• Electricity Use Estimates - To determine how many kWh a piece of equipment uses, take the following steps:

• Determine the wattage of the device by checking manufacturer specifications.
• Multiply this number by the number of hours each month the device will be in use to determine watt-hours.
• Divide each month’s watt-hours by 1,000 to determine kWh. Round to three decimal places.
• Repeat this for each piece of equipment and the total amounts for each month.
• Estimates should assume the business is in full production for each month. 

• Applicants will be required to sign the Certification of Laboratory Testing for Manufactures.

 
Step 4:  Develop a Manufacturing Operations Plan. 
 
All medical marijuana manufacturing businesses are required to submit an operating plan.  At a minimum, the operating plan must meet the requirements as set forth in LBMC Chapter 5.90. Any statements made in the Operating Plan may not supersede any local and/or state laws, rules, and regulations.  For each section of the Operating Plan a cover sheet is required and each section should be clearly labeled. The operating plan must have page numbers in the bottom right hand corner. DO NOT staple or bind the operating plan. You may submit the Medical Marijuana Business License Application and the Manufacturing Operating Plan in a three-ring binder or in an envelope. Both the Medical Marijuana Business License Application and the Manufacturing Operating Plan must be submitted at the same time.
 
The Operating Plan must include the following areas:
General Description of Services – a summary of the proposed business model:

• Day to day operations of the facility that includes a description of each step in the manufacturing process (extracting, postprocessing, infusing, mixing, inspecting, packaging, labeling, etc.) that the business will engage in, and where they will occur in the facility.
• Plans should also provide a description of the marijuana products and services to be provided by the manufacturing facility, including the common name for each product (e.g. cookie, candy bar, topical lotion, vaporizer cartridge, etc.).

Extraction Method – If performing on-site extractions provide a description of the extraction method:

• This could include mechanical extraction (screens, presses), nonvolatile chemical extraction (water-based, food-based, CO2-based), or volatile chemical extraction (butane, propane, hexane, ethanol, etc.)
• Applicants should describe the equipment that will be used during the extraction process.
• Applicants using CO2 or volatile chemicals in the extraction process must confirm that the business will be using a closed loop extraction system.
• Applicants should describe any post-extraction methods that may be used to purify the marijuana product (heating, pressurizing, off-gassing, etc.) and distill/recover the solvent from the miscella.  Also include a description of the appliances that may be used for these purposes.

 
Noxious Chemical Control – It is important to describe what methods will be used to ensure that odor generated inside the manufacturing facility is not detected outside the business premises.

•  Include a description of the odor-absorbing ventilation and exhaust system, and how that system will prevent odor from leaving the property.
• If possible describe alternative methods to control odors, such as a carbon filtration or other system.
• Applicants should provide a description of all ventilation systems used to mitigate noxious gases or other fumes used or created as part of the production process.
• Applicants should also provide a description of methods that will be used to prevent the growth of harmful mold on the premises

 
Toxic Material – Provide a description of all toxic, flammable, or other materials that will be used or kept at the medical marijuana business, the location of such materials, and how such materials will be stored. This includes all materials regulated by a federal, State, or local government that would have authority over the business if it was not a marijuana business.

• Applicants should also describe methods used to comply with limitations on discharge into the wastewater system of the City, as set forth in Long Beach Municipal Code Chapter 15.16.

 
Quality Control – Describe the manufacturing quality control procedures that will be employed by the business to ensure that marijuana products are safe and suitable for human consumption and/or use.

• Quality control procedures should consider the proper handling and storage of raw materials, in-process materials, and finished product throughout the production process. Applicants should also discuss quality control procedures that will be used to ensure uniformity between each separately produced batch of marijuana product. This includes equipment inspection and maintenance, internal controls for each step in the manufacturing process, internal batch sampling and testing, etc.
• Additionally, applicants should identify potential hazardous risks for each type of marijuana product proposed to be manufactured at the facility. This includes biological hazards (mold, pests, etc.), chemical hazards (pesticides, solvent residue, etc.), and physical hazards (glass, metal, etc.). For each hazard identified, applicants should provide a list of preventive measures that will be taken to minimize the hazardous risks.

 
Security - Provide a detailed description of their security plans. The security component should be broken down into operational and facility security categories.

•  Applicants should provide a detailed description of their security plans. The security component should be broken down into operational and facility security categories. Appropriate plans will have considered all potential security threats and planned for any contingency needed for these situations. A successful applicant will have both written and physical mechanisms in place to deal with each specific situation. A detailed schematic diagram (no larger than 11” x 17”) of alarm systems and security camera placements that also details when all security measures will be operational should be provided.

 
Operational Security - Detail the operational security including but not limited to general security policies for the facility, employee specific policies, training, sample written policies, transactional security, confidential information security, visitor security, 3rd party contractor security, and transportation security.

• Include storing all finished medical marijuana products in a secured and locked room, safe, or vault, and establishing limited access areas accessible only to authorized personnel.
• The security plan should include measures to prevent the diversion of marijuana to persons under the age of 18.
• The security plan should also consider measures to prevent individuals from remaining on the premises if they are not engaging in activity expressly related to the operations of the business, and ensure that medical marijuana is not inhaled, smoked, eaten, ingested or otherwise consumed on the property, or in the parking areas of the property.

**This list is not intended to fully capture all areas for applicant consideration but to guide applicants into considering all possible security concerns related to the operation of a medical marijuana manufacturing facility. The applicant should consider every possible scenario and provide a response to those scenarios.
 
Facility Security - Applicants should provide a description of the overall facility security.

• It is important that the Applicant address ingress and egress access, perimeter security, product security (at all hours), internal security measures for access (area specific), types of security systems, and security personnel that will be employed. The security plan should describe the enclosed, locked facility (incorporated into the building structure, or securely attached thereto) that will be used to secure or store marijuana and cash when the location is both open and closed for business.
• The plan should also detail the steps taken to ensure marijuana is not visible to the public.
• The facility security plan should also discuss the fire and burglar alarm systems. The plan should identify the company monitoring the alarm, and provide confirmation that the company is staffed twenty-four (24) hours a day, seven (7) days a week.

 
Digital Video Surveillance - All Medical Marijuana Businesses must install and maintain a fully operational digital video surveillance and camera recording system.
The video and surveillance system shall, at a minimum, meet the following requirements: 

• Capture a full view of the public rights-of-way and any parking lot under the control of the medical marijuana business;
• Be of adequate quality, color rendition and resolution to allow the ready identification of any individual committing a crime anywhere on or adjacent to the exterior of the property;
• Record and maintain video for a minimum of thirty (30) days. Video surveillance and recording records shall be held in confidence by all employees and for legitimate law enforcement activity to resolve criminal activity;
• Licensees are responsible for ensuring that all video or surveillance equipment is properly functioning and maintained, so that playback quality is suitable for viewing and the equipment is capturing the identity of all individuals and activities in the monitored areas;
• At each transaction location, camera coverage must enable recording of the customer’s and employee’s facial features with sufficient clarity to determine identity and must record video with such clarity and resolution that all transactions are clearly recorded;
• The system shall be capable of recording all monitored areas in any lighting conditions and must be housed in a designated, locked, and secured room or other enclosure with access limited to authorized employees. Licensees must keep a current list of all authorized employees and service personnel who have access to the surveillance system and/or room on the licensed premises;
• A sign shall be posted in a conspicuous place near each monitored location on the interior or exterior of the premises which shall be not less than twelve (12) inches wide and twelve (12) inches long, composed of letters not less than one ( 1) inch in height, stating "All Activities Monitored by Video Camera" or "These Premises are Being Digitally Recorded", or otherwise advising all persons entering the premises that a video surveillance and camera recording system is in operation at the facility and recording all activity as provided in this Section; and
• All exterior camera views must be continuously recorded 24 hours a day and all interior cameras views shall be recorded during all hours that the facility is open for business.  

 
Any security measures that exceed these standards are highly desirable.
 
Product Tracking and Disposal - Identify how marijuana will be tracked and monitored to prevent diversion and theft.

• The plan should describe how the manufacturing business will maintain records of all marijuana product, including the level of detail that marijuana products will be tracked (e.g. marijuana supplier, lot number, date and time of manufacture, weight, ingredients, persons involved in each step of production, internal test results, etc.)
• The plan should provide a description of the point of sale software that the business will utilize to track inventory and sales of medical marijuana products, as well as the internal procedures the business will follow for cash handling and audits.
• Also, the plan needs to describe the methods that will be used to make marijuana waste unusable and unrecognizable, and how marijuana waste will be stored prior to removal from the business.
• The plan should describe the method the business will use to transport marijuana waste from the manufacturing site to a solid waste facility or landfill.

 

• Finally, the operating plan should include a solvent waste disposal plan, including projected accumulation volumes and where on the property the solvent waste will be stored. The plan should describe how the business will transport solvent waste from the manufacturing site to a waste facility.

 
Product Complaints - Describe policies for receiving, recording and handling product complaints associated with the use of marijuana products provided by the manufacturing facility. Policies may include:

• A process for accepting product complaints at the manufacturing facility;
• Identification of data elements to record a complaint (e.g. name of individual submitting complaint, identity of product used, description of events, etc.);
• Review of product complaints from appropriate staff;
• Procedures for determining the proper response, which may include contacting customers and other businesses receiving the product, notifying public health authorities, or issuing a recall of product; and/or
• A process for determining any other additional follow-up that may be needed.

 
Product Rejection/Recall Describe the steps that the manufacturing facility will take when notified from a testing agency or City Health Official that the tested marijuana product does not meet appropriate health standards.

• Briefly describe how the business will dispose of all rejected marijuana product associated with the test sample, and ensure that rejected marijuana product is not released to the public.
• In addition, applicants should identify the factors that would necessitate a recall procedure from the manufacturing business. Describe the policy for communicating a recall of marijuana product that has been identified a risk to public health. The recall plan should include a mechanism for contacting customers and/or businesses who have purchased the product from the manufacturing facility, as well as health officials when necessary. The recall plan should also describe the method to collect recalled product and dispose of it in a manner that ensures it cannot be consumed or used by any individual.

 
Fire Plan - Applicants should provide a detailed description of their fire prevention, suppression, alarm and life safety systems.

• A fire inspection will be required annually to assure the City that adequate fire safety measures remain in place.
• An appropriate plan will have considered all possible fire, hazardous material, and inhalation issues/threats and will have both written and physical mechanisms in place to deal with each specific situation.
•  A detailed description of the fire prevention, suppression, alarm and life safety systems that also includes when all fire prevention measures will be submitted for approval and be operational will be required.

 
Employee Safety & Hygiene - Provide a summary of the safety protocols that will be adopted by the manufacturing facility, including, but not limited to: staff training, protective equipment, hazardous material handling, emergency communication/response protocols, etc. Businesses must conform to all Cal OSHA workplace safety standards, specifically Title 8 of the California Code of Regulations.

• Applicants should describe the policies and procedures used by the business to help prevent contamination of any marijuana product. This may include hand washing, employee training, use of facemasks/gloves, prohibiting employees who are showing signs of illness, open wounds, sores or skin infections from handling marijuana, etc.   Labor Relations
• Applicants should provide a detailed description of their plans regarding labor relations and employee relations. Labor relations must include manufacturing facility ownership partaking in a labor peace agreement with a bona fide labor organization and may include paying employees a living wage (at least 200% of the Federal Poverty Level for a family of two). The employee relations plan should provide a detailed description of employee compensation and benefits, workplace safety, educational opportunities and trainings for employees, and policies put in place against discrimination.

 
Community Involvement - Provide a detailed description of their plans to participate in community service within the City of Long Beach.

• These plans may include, but are not limited to, involvement with non-profit associations, neighborhood associations, and community groups. Applicants should demonstrate how they intend to provide their local community with community benefits and mitigate any nuisance and/or negative impacts that the facility’s existence may cause.
• Applicants should show how they plan to have minimal nuisance or negative impacts on their neighbors and community. Nuisance/negative impacts include but are not limited to: noise, odor, increased foot or vehicle traffic, increase in waste or water production, impacts to right of way access, and/or increase in safety related concerns.
• Applicants should detail how they will revitalize the building/site, provide neighborhood improvements, and will be a beneficial/positive neighbor to the community. 

The citizens of the City of San Bernardino opted to adopt California Proposition 215 (Compassionate Use Act) and starting accepting licenses as of June 5, 2017 for marijuana business permits.  This comes well over 6 months after voters approved Measure O, San Bernardino Regulate Marijuana Act of 2016. 

Measure O stipulates that applicants who wish to submit a Medical Marijuana Business Permit be for a property that is at least 600 feet from residential zones.  To equip applicants for cultivation, manufacturing, testing, transportation or distribution, analysis has been completed by the city to best identify the viable business locations.  Yet, there is more than just the business type and property location to consider when applying.

• Step 1:  Identify a Permissible Property Location
• Step 2:  Prepare the Project Information Profile
• Step 3:  Prepare and Complete the Application Requirements

There are some pending legal arguments against Measure O, but of the 4 pending only 2 of them are being considered as having any merit.  The City will continue to keep you informed of its progress, but feel free to visit the San Bernardino city web site periodically for updates.
 
Step 1: Identify a Permissible Property Location

Maps and matrixes are provided by the city of the viable locations approved for cultivation, manufacturing, testing, transportation and distribution.  The city refers to the permissible areas as M-B Overlay 1 and M-B Overlay 2.  The allowable locations for applicants are not only identified via the additional maps and matrix resources, but each plotted area is assigned an “Assessor Parcel Number” (APN).  Of those APN’s note as follows:
​

• M-B Overlay 1 – Out of the 153 APN’s originally listed in Measure O, only 142 have since been deemed eligible under Section 19.420.040 B Table 1 meeting the distance qualifications. 
  • M-B Overlay 1 Matrix provides an inventory list and profile of the potential APN’s
• M-B Overlay 2 – Initially offered 21 separate APN’s to be available locations for a potential permit, and later determined only a potential of 8 were permissible.  Of those 8, however, are self-contained within 4 property locations 1 of which is already designated for a parking lot presently under construction.
  • M-B Overlay 2 Matrix is the list and details for the second set of APN’s
• Measure O’s Interactive Map shows the qualified parcels identified. 

It should be noted that an APN # is a requirement as part of the application process, and will need to be reference on the application form.  This is in addition to the property address, zoning district, general plan designation and which of the two M-B Overlays the location is listed within.
 
Step 2:  Prepare the Project Information Profile

• Identify if the business is new or an existing one in need of a renewal
• Description of the business venture (i.e. project)
• General property information
  • Square footage of the property and building
  • Hours of operation
  • Total number of employees
• General business information
  • Business name and address (current/and or proposed)
  • Website (if available)
  • Business email address (if available)
  • Organizational structure of the applicant (e.g. trust, partnership, corporation, or LLC)
• State License Type:
  • 1A Cultivation
  • 1B Cultivation
  • 2A Cultivation
  • 2B Cultivation
  • 4 Cultivation
  • 6 Manufacturer
  • 7 Manufacturer
  • 8 Testing
  • 10 Dispensary
  • 10A Dispensary
  • 11 Distribution
  • 12 Transporter
• Elevation
  • Describe how the proposed project complies with the requirements of the California Environmental Quality Act & CEQA Guidelines
  • Describing if any permits be required from agencies other than the City (including a Hazardous Materials Business Plan)
  • Description of whether the project use, store, or dispose of potentially hazardous chemicals, materials, toxic substances, flammables or explosives

Step 3: Prepare and Complete the Application Requirements

Applicants must complete the standard Marijuana Business Permit Application as well as provide supplemental information depending on the license type.   Prior to submission, it is recommended the Measure O guidelines be fully reviewed, as there are some additional requirements articulated on the requirements of the operating business.

General application requirement checklist:

• Application form (see link above)
• Filing fee - $250
• Elevations (photographs may be provided) – Quantity of 3 copies
• Legal description of subject property
• Ventilation plan
• Proof of submittal of Live Scan fingerprints to San Bernardino Police Department (see below details and links to the Live Scan form and requirements) – Any applicants with a felony within the last 10 years will be denied
• Copy of valid government issued photo identification (applicant shall be 21 years of age or older)
• Signed application authorization form and authorization approval from the proposed property’s owner
• Delivery companies must first obtain a state license

Once the application is approved there are additional permit fees that are at a minimum of $250 annually and an additional $1 per square foot of operating space.

Site Plan [1” = 10’] (Quantity of 3 Copies):

It should be noted that no marijuana business shall be allowed to operate out of any temporary or portable structure.

• North arrow, drawing scale, date of preparation and name of plan preparer
• Dimensions of subject property – including square footage
• Dimensions and names of all adjacent streets and public rights-of-way
• Location and dimensions of all buildings and structures – including square-footage
• Location and dimensions of landscaped areas
• Location of all parking areas and driveways and means of ingress and egress
• Location and dimensions of all handicap parking spaces, ramps, curb ramps and signs
• Location and dimensions of handicap-accessible Path of Travel to building entrance, sidewalks and interior walks
• Uses for all buildings and structures indicated on the site plan

​Floor Plan [1/4” = 1’] (Quantity of 3 Copies):

• North arrow, drawing scale, date of preparation and name of plan preparer
• Location and dimensions for means of ingress and egress
• Square footage of all interior spaces
• Proposed uses of all interior spaces

Area Map [1” = 50’] (Quantity of 3 Copies):

• Location of subject property (Note the APN related references and requirements as outlined in Step 1.  By pre-validating the specific parcel #, and the available APN’s will best enable the application being approved.)
• Location of all highways, streets and alleys within 600 feet from the exterior boundaries of the subject property
• Location of all lots and *-666-841
• -parcels of land within 600 feet from the exterior boundaries of the subject property
• One copy of the Area Map shall identify the existing uses of all lots and parcels of land on the map

Business Plan (shall contain a minimum of the following information):

• Inventory management and storage practices
• Quality assurance and testing procedures
• Security plans and equipment (note, no windows or doors can remain open while the business is open and all exterior windows must have some type of opaque covering, parking lots well-lit and security systems manned and supported 24x7.  See Section 19.420.050 Development Standards of the for a full list of all detailed requirements)
• For cultivators, the square footage of “canopy” area is required to be submitted
• Organizational infrastructure including all stakeholders, owners, investors, employees and any agents/agencies representing the business

For further details and the application form, go the City of San Bernardino’s web site and their Marijuana Business Permit Application.  On the same site, there’s an additional form available for their live scanning capabilities. 

Marijuana Business Live Scan Form will initiate the Live Scan Fingerprinting services which is a technique used by law enforcement agencies and private Live Scan Service Providers. The technology electronically captures fingerprints (and palm prints at designated agencies) without using ink and/or paper.  Since this form is available, applicants should be prepared for the following:

• Fingerprinting
• Background checks
• Possible additional application fees for the vendor performing the scanning activities (Typically around $150 to $200)

While there are no deadlines, or caps on the number of permits being offered, applicants will see limits based on available real estate. Early preservation of compliant properties will be key to obtaining permitting in the City of San Bernardino along with the appropriate prerequisites through the state and background check approvals.

Contact Info:

Applicants can sign up to receive email updates regarding the implementation process and status by contacting Stephanie Sanchez at Sanchez_Stephanie@SBCity.org or 909-384-7272 x.3343. Application questions should be directed to Planning Division Associate Planner Travis Martin at Martin_Tr@SBCity.org or 909-384-5313 inclusive of questions on application fees.

Other City Resources:
City Council Resolution 2016-177
Measure O full text initiative packet
Measure O Interactive Map
County of San Bernardino Elections Office of the Registrar of Voters election results 

Santa Rosa is accepting medical cannabis applications for Cultivation, Distribution, Manufacturing, Testing, and Transporting businesses. Dispensary applications are not being accepted. There is no limit on how many licenses will be offered. Rather, Santa Rosa is using the availability of real estate as the method to cap the market. 

To provide a status on medical marijuana businesses, the Santa Rosa Planning and Economic Development Committee published the Cannabis Permitting Update.  This report tracks the number of new medical cannabis businesses in Santa Rosa. Highlights of the report includes the following items:

• Santa Rosa has an approximate total of 10.3 million square feet of industrial space, with a vacancy rate of 5%.
• The total square footage of approved medical cannabis space accounts for 2.7% of the total space available.
• This 2.7% represents 16 cannabis business (276,548 square feet) that have received their land use permit. 
• With the 16 approved businesses, there are 19 additional cannabis businesses that have either gone through the pre-application process or have submitted an application for review.

For those who are looking to gain entrance into the Cannabis Industry, this city is an excellent place to secure a foothold in due to their friendly approach to marijuana businesses. The City of Santa Rosa is a leader in marijuana regulations allowing for an open market – due to these factors it is likely that in years to come, they will become a hub in the marijuana industry.  There are 3 steps to start your Cannabis Business in Santa Rosa.

1. Find an Open Parcel that Meets Zoning Requirements
2. Submit to the City a Conditional Use Permit
3. Apply for a Building Permit

Step 1: Find an Open Parcel that Meets Zoning Requirements

Despite low vacancy rates, Testing Labs may find opportunities to find real estate in the CO – Office Commercial Zone and Business Park.  Distributors or Manufacturers can apply for permitting in the Business Park, Light Industrial Zone, or the General Industrial Zone.

Applicants should avoid the Limited Light Industrial (-LIL) Combining District for medical cannabis commercial cultivation because Santa Rosa recently adopted an urgency which imposes a temporary moratorium in this district.

Full details regarding which license types can operate in each zone be found in the  Medical Cannabis Land Use Policy Chart . This contains a matrix which contains a matrix of license by zone. Applicants can also use a visual reference with the Map of Areas Zoned General Industry, Light Industry, Business Park, and Office Commercial. More details regarding zoning can be found on the city website under Commercial Cannabis Resources.
 
Step 2: Submit to the City a Conditional Use Permit

If you are able to find an open parcel that meets the criteria, the next steps to obtain cannabis permitting would be to file for a Conditional Use Permit.  Businesses that are less than 10,000 square feet will submit for a Minor Permit with a fee of $2,511 and business that are more than 10,000 square feet will submit for a Major Permit with a fee of $10,964. 

In addition to the fees, when submitting the CUP application, you must include the following:

• 10 copies of the Site Plan showing all dimensions
• 10 copies of Floor Plans
• 10 copies of the Neighborhood Context Map
• A disclosure form
• Vicinity Map with North Arrow
• Indemnification Form

For new construction, you must submit the following additional information:

• 10 copies of Dimensioned Elevations
• 10 copies of Site Analysis Map
• 10 copies of Landscape Plans
• An Environmental Assessment
• A Stormwater Determination Worksheet

Step 3:  Apply for a Building Permit

In parallel with the CUP submission, applicants must apply for a building permit. Applicants must adhere to the regulations of the City of Santa Rosa Building and Fire Division Requirements to gain approval and pass the inspection of medical marijuana-related occupancies.

Information regarding the Building Code Requirements, Accessibility Requirements, Fire Code Requirements, Electrical Code Requirements, Mechanical Code Requirements, Plumbing Code Requirements, Energy Code Requirements, and CalGreen Code Requirements can be found in the City of Santa Rosa Building and Fire Division Requirements. Below are the General Requirements and Medical Marijuana Regulation and Safety Act Permit Specific Requirements.

General Requirements

1. A building permit is required to verify occupancy for a medicinal marijuana facility, even if no improvements to the property are proposed. The building permit application must meet the City’s general building permit submittal requirements.
2. Construction plans and building permits are required per the California Building Code Section 105 when the owner or occupant intends to construct, enlarge, alter, remove, repair, demolish, or change the occupancy of a building or structure, or to erect, install, enlarge, alter, repair, remove, convert or replace an electrical, gas, mechanical or plumbing system, the installation of which is regulated by the Building and/or Fire Code, or to cause this work to be done.
3. The plans, when required, must be prepared by a licensed professional registered with the State of California and must address specific requirements for the use as outlined in the codes and standards adopted by the City of Santa Rosa and the State of California.
4. An application for a building permit will not be accepted for a medical marijuana related business without confirmation that all discretionary approvals have been obtained or a zoning clearance has been issued.
5. All Building permit design and supporting documentation is required to be prepared, stamp and signed by qualified design professionals licensed and registered by the state of California.
6. All construction and related work must be performed by contractors licensed by the State of California as general and/or specialty contractors for the specific discipline of work to be performed.
7. All design and construction shall be consistent with the provisions of the Santa Rosa City Code and the current edition of the California Building and Fire Codes as adopted by the California Building Standards Commission, and as amended by the Santa Rosa City Code.
8. A City of Santa Rosa building permit application form must be completed in its entirety and included with each submittal.
9. Codes and Standards regulating medical marijuana facilities currently adopted by the City of Santa Rosa include, but are not limited to:
   • a.California Building Code (CBC)
   • b.California Electrical Code (CEC)
   • c.California Mechanical Code (CMC)
   • d.California Plumbing Code (CPC)
   • e.California Energy Code
   • f.California Fire Code (CFC)
   • g.California Existing Building Code (CEBC)
   • h.California Green Building Standards Code (CalGreen) I. California Health and Safety Code (HS&C)
   • i.California Existing Building Code (CEBC)
   • j.National Fire Protection Association Standards (NFPA)
   • k.Medical Marijuana Regulation and Safety Act (MMRSA) M. Santa Rosa City Code (SRCC)
     
10. A project specific submittal package is required for each individual building and building address. A minimum of 5 sets of plan documents, 2 sets of Title 24 energy compliance documentation and 2 sets of CALGreen check lists for Tier 1 are required at time of submittal. Additional documentation may be required for structural modifications and/or additions to existing building or structures.
11. The plan review fees must be paid in full before the plans will be accepted for plan review.
12. Construction or work for which the permit is required shall be subject to inspection by the Building Official and such construction or work shall remain accessible and exposed for inspection purposes until approved. No construction shall commence prior to the issuance of a Building permit.
13. No building or structure shall be used or occupied, and no change in the existing occupancy classification of the building or structure or portion thereof shall be made, until the Building Official has issued a certificate of occupancy. Issuance of a certificate of occupancy shall not be construed as an approval of a violation of the provisions of applicable codes and standards or the other regulations of the City of Santa Rosa.
14. The owner/occupant is required to keep all City approved plans, specifications and related documents on the premises, in an easily accessible location for City inspection staff for the required inspections.

Medical Marijuana Regulation and Safety Act Permit Specific Requirements

The requirements in this section are related to specific permit types as outlined in the California State Medical Marijuana Regulation and Safety Act (MMRSA)

Cultivation Facilities (MMRSA permit types 1-4) – Annual Fire Department Operational Permit Required

1. Mixed use grow facilities are to meet CBC, Chapter 3 requirements based upon Use and Occupancy Classification for a Factory Industrial, F-1, Moderate-hazard Occupancy. CBC § 306.2.
2. Grow facilities for the exclusive use of plant production may be classified as a U occupancy and shall be consistent with the requirements of CBC Appendix C.
3. Grow rooms are considered wet locations as they are subject to wash down. Indoor wet location wiring methods shall meet requirements of CEC article 300.6.
4. Grow lights must be installed per the manufacture instructions and wired per CEC article 410
   1. Remote ballasts shall be installed as near to the lamp as practicable to keep the secondary conductors as short as possible. CEC article 410.144(B).
   2. Ballast secondary cord/conductors cannot pass through partitions and must be visible its entire length outside the fixture. CEC article 410.62(C)(1).
5. High-Intensity Discharge Lighting. Luminaires that use a Metal Halide lamp, other than a thick- glass parabolic reflector lamp (PAR), shall be provided with a containment barrier (LENS) on the fixture. CEC article 410.130(F)(5).
6. NM cable (Romex) is not allowed for use in damp locations (grow rooms) (CEC § 334.10). Approved wiring methods utilized in grow facilities in accordance with wet use “Wiring Methods and Materials”, (CEC Chapter 3).
7. Cultivation facility exhaust outlets must be located 10’ from the property lines, operable openings into the building and from mechanical air intakes (CMC § 506.9).
8. Cultivation area ventilation air rate shall be supplied with ventilation rate of 15 cfm/person for the number of occupants. The expected number of occupants shall be specified by the building designer or one half of the maximum occupant load assumed for egress purposes in the California Building Code, whichever is greater. (CMC table 402.1 footnote 4 & CEC subchapter 120.1(b).

Manufacturer Facility (MMRSA permit type 6-7) – Annual Fire Department Operational Permit Required

1. Volatile manufacturing (permit type 7) is not permitted in the City of Santa Rosa.
2. Facilities used for processing medical marijuana into foods, beverages, salves, inhalants, tinctures or other forms for human consumption or use are subject to review and approval by the Sonoma County Environmental Health Division. A separate permit application is required through their office.
3. Type 6 Manufacturing facilities are to meet CBC, Chapter 3 requirements based upon Use and Occupancy Classification for a Factory Industrial, F-1, Moderate-hazard Occupancy. CBC § 306.2.
4. Portions of the Marijuana Infused Product facilities may be considered a Hazardous Location based on the method used for the THC extraction and the amount of hazardous material stored. Full disclosure of the extraction process will be required at the time of building permit submittal.
5. Medical Marijuana manufacturing facilities shall submit as a part of their permit application a comprehensive description of the program and process proposed for the operation and production at the facility. The documentation shall, as applies, include all of the following:
   1. A plan that specifies all means to be used for extracting, heating, washing, or otherwise changing the form of the marijuana plant or for testing any marijuana or marijuana product, including a verification that such plan is in compliance with all applicable federal, state, and local laws and regulations governing ventilation and safety measures for each such process. Building and Fire Code Requirements for Page 13 Medical Marijuana Related Occupancies January 27, 2017
   2. A report from a California Registered Industrial Hygienist verifying that the plan submitted pursuant to subsection (1) and the improvements to be constructed adequately protects the facility and adjacent properties and persons, and complies with all applicable federal, state, and local laws and regulations.
   3. A description of all toxic, flammable, or other materials regulated by a federal, state, or local government that will be used, kept, or created at the facility, the quantities and location of such materials, and the manner in which such materials will be stored.
   4. A description of the processes used to extract or distill marijuana derivatives from their source and the processes used to incorporate marijuana derivatives into all retail marijuana products produced, including written verification from a California Registered Industrial Hygienist that such processes are in compliance with all applicable federal, state, or local laws or regulations.
6. Concentrations of grease, smoke, heat, steam or products of combustion created when medical marijuana is manufactured into products including, but not limited to, foods, beverages, salves, inhalants and tinctures are to be contained as detailed in the CMC §s 506 and 507 (Type I and Type II hoods).
7. Sanitation requirements for facilities used for processing medical marijuana into foods, beverages, salves, inhalants and tinctures shall meet the following guidelines that are to be detailed on the drawings submitted for review:
   1. Location of hand wash sinks.
   2. Hand sinks must be conveniently located for employees.
   3. Hand sinks shall only be used for hand washing (maximum water temperature of 110 degrees is to be maintained through an appropriate mixing valve).
   4. Sinks used for food or medicine preparation or for washing equipment shall not be used for hand washing.
   5. How dishes will be washed. CPC § 802.1 requires all food handling and health care related fixtures, devices, and equipment to discharge through indirect waste lines into a floor sink.
   6. Contact surfaces shall be smooth, free of breaks, open seams, cracks, chips, pits and similar imperfections, free from sharp internal angles, corners, crevices, finishes to have smooth welds and joints.
   7. Equipment containing bearings and gears shall be designed, constructed and maintained to ensure that it meets food and health requirements (washing machines are not listed for food or health related preparations).
   8. All rooms shall have sufficient ventilation to keep them free from excessive heat, steam, condensation, vapors, odors, smoke and fumes per CMC chapters 4 and 5.
   9. I. Table or counter mounted equipment shall be installed to facilitate the cleaning of the equipment and adjacent areas by being sealed to the surface or elevated by at least four inches.
   10. Three compartment sinks are required for washing, rinsing, and sanitizing equipment and utensils.
   11. At least one utility or mop sink must be provided.
   12. Garbage and refuse shall be stored in a manner to be inaccessible to insects and rodents.
   13. Floors shall be smooth, durable, nonabsorbent, light colored and maintained in good repair.
   14. Walls and ceilings must be smooth and easily cleanable.
   15. Hazardous materials waste discharge to the sanitary sewer is prohibited.
8. Infused product extraction and hazard containment equipment must be listed, labeled and installed per NEC 110.3 and CMC 301.4.
9. Storage, use and handling of compressed gases in compressed gas containers, cylinders, tanks and systems shall comply with CFC, NFPA Standards, H&SC and CCR, including those gases regulated elsewhere in this code. Partially full compressed gas containers, cylinders or tanks containing residual gases shall be considered as full for the purposes of the controls required. *Compressed gases classified as hazardous materials shall also comply with CFC Chapters 50 and 53 for general requirements and chapters addressing specific hazards, including Chapters 58 (Flammable Gases), 60 (Highly Toxic and Toxic Materials), 63 (Oxidizers, Oxidizing Gases and Oxidizing Cryogenic Fluids) and 41 (Pyrophoric Materials).

Testing/Laboratory (MMRSA permit type 8) – Annual Fire Department Operational Permit Required

1. Type 8 Testing/Laboratory facilities are to meet CBC, Chapter 3 requirements based upon Use and Occupancy Classification for a Business Group, B, Occupancy. CBC § 304.1.
2. Required hoods shall meet the requirements of CMC §s 506, 507 and 508.
3. Hazardous materials storage, use, handling and wastes shall be permitted and reported through the Fire Department prior to operation. Dispensaries (MMRSA permit type 10) Type 10.

Distributor (MMRSA permit type 11) - Annual Fire Department Operational Permit Required
Type 11 Distributor facilities are to meet CBC, Chapter 3 requirements based upon Use and Occupancy Classification for a Storage Group, S, Occupancy. CBC § 311.1.

1. Facilities that include storage and distribution of food products in non-combustible containers shall be classified in Occupancy Group S-2 “Low Hazard Storage”. CBC § 311.3.
2. Facilities that include storage and distribution of all other medical marijuana manufactured products shall be classified in Occupancy Group S-1 “Moderate Hazard Storage”. CBC § 311.2.

Transporter (MMRSA permit type 12)
Type 12 Transporter facilities are to meet CBC, Chapter 3 requirements based upon Use and Occupancy Classification for a Storage Group, S-1, and/or Business Group, B, Occupancy. CBC § 311.1.

1. Facilities that include storage, transfer and/or temporary warehousing of medical marijuana products shall be classified in Occupancy Group S-1.
2. Facilities that do not contain any storage, transfer or warehousing of products and consists of administrative offices shall be classified in Occupancy Group B.

​The City of Santa Rosa is paving the way to become a fully regulated and open cannabis market. For those who are seeking more information, the ordinance can be found in Chapter 10-40 of the City Code and applicants can reference the Medical Cannabis FAQ’s published by the city.