Cannabis delivery is legal thanks to California’s new permanent regulations passed earlier this year. 

The state-wide legislation makes it possible for cannabis operators to deliver to a customer, even when they live in a municipality that prohibits cannabis. Non-storefront delivery companies are able to serve these “cannabis deserts,” adding a lucrative new revenue stream to their business. 

Adding delivery and online shopping can be a great way to reach new customers, increase your revenue, and build your business. But, it’s important to price your delivery service profitably – otherwise, your delivery service can easily drain your cash flow and make it difficult to sustain other parts of your business. 
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Here’s what you need to know about cannabis delivery pricing. 

Delivery pricing comes down to a three-step approach. The first step is to look at the market and understand the current landscape. 

You need to answer these questions:

• At what price are competitors selling their products? 
• What is a customer’s willingness to pay? 
• How sensitive are customers to price increases?

We suggest that you do some competitive analysis to research the going rate in your area and put all of your research information into a spreadsheet. 

Things to track would be:

• Price range of the highest and lowest price points for different amounts of cannabis. 
  • What’s the lowest price operators are one gram selling for? 
  • What’s the highest price one gram is going for? 
• How many reviews does this service have on major ad platforms and what’s their aggregate rating?
• How many cannabis products do they sell?
• What payment methods do these retailers accept?

The second step is to figure out what your price floor is: this is the minimum amount you can charge to cover your costs. 

You can read more about pricing cannabis products in our guide, but the basic goal is to take into account the unit price, as well as the overhead and fixed costs per unit. 

Remember, product is just one of your expenses: you also have costs associated with gas, vehicle insurance, paying your team, and licensing fees. Factoring in these extra expenses gives you a breakeven point when your sales exactly cover your expenses. 

​Before we continue, let’s take a moment to understand what you’re learning about your company during this process.

As a business owner in a competitive industry, it’s likely that you’re familiar with gross profit margin. This is a calculation of (total sales revenue - total direct costs of goods sold)/total sales revenue. This number “establishes the relationship between production costs and total sales revenue.”
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Contribution margin is calculated as (revenue from sales of an item - production costs for the item ) ÷ revenue from sales of the item. This number tells you “how profitable one item in a product line is in comparison with another.” It lets you critically assess how your different products are performing; what we’re essentially doing is breaking out delivery as its own separate product line to assess if it’s a worthwhile investment. 

Calculate your contribution margin by subtracting variable costs from your sales. Obviously, this point is important because the goal is not to break even on delivery but to make a profit. Include all your cost of goods sold, employee wages, and taxes. Taxes are part of your variable costs, and you must include them in this calculation. 

Then you will need to figure out how many units you will need to sell at a specific price point and contribution margin to breakeven and then be profitable. 

So what you’ll you need to consider is your capacity and working capital. 

First, ask yourself, how long will it take to get to the capacity to hit that target number of units?
Then consider, how much working capital do you need to last until getting to capacity? 
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Once you understand those two numbers, you will know your working capital needs and then can begin testing your assumptions. 

The third and final step is testing.

A big advantage of delivery is that it’s easy to test your pricing scheme quickly. E-commerce has a quick feedback loop, meaning you can perform A/B testing on your website and with different customer segments to zero in on the right pricing scheme for your business. 

A/B testing is a way to compare two versions of a pricing model against each other to determine which one performs better. In the experiment, two variants are shown to user groups at random, and then statistical analysis is performed to show which option leads to better profit. 

To perform A/B testing, first separate your customers into new and existing customers. 

The “A” section of your test will be your control group: customers who exist with the same current margin. 

Your test group B will receive new pricing wherein you test different margins. Use a few different cohorts at different markups to see how your customers respond to the new pricing changes. 

For example, analyze each test group of customer’s purchase frequency and average spend per transaction to see if higher price points discourage shorter times between purchase. Compare to see where you can squeeze more margin without turning away your best customers. 

Here’s an example of how to host a pricing A/B test. Pretend your customers, on average, order every 14 days. For two months you run a delivery pricing test where for one group of existing customers, you bump your price margin by 2.5-5%. Will they visit less frequently? Will they spend less per visit? 

​In parallel, you run a test on your new customers. You are able to perform an A/B test using two landing pages or sets or products. The first landing page is your existing, standard e-commerce website with your normal pricing. The second page tests a higher price margin – similar to the margins being trialed on your existing customers. Which landing page or product has a higher conversion rate? 

How can you make sure to make the most of your pricing test? 

Amplify your reach with ads, using flyers, Weedmaps, and more to make sure to get the word out. 
Check out our guide on cannabis marketing to understand what you can and cannot do in your advertising campaigns. What’s great about delivery, though, is that a customer comes through your website, giving you full control over the check-out experience. 

You’re able to gain insight into how their payments play out: will a customer use cash, debit, or credit? 

Pro-tip: our experts recommend limiting how many credit cards you accept to lower your risk of money laundering issues.  

You also get solid metadata including: 

• What products will they browse before checking out? 
• Where do they abandon their cart? 
• How long did it take from first touch to checkout?

Testing and more can give you valuable insight that translates to the in-store experience as well. 

Learn more about profitable pricing by getting in touch with our experts at the button below.

Colfax, California is now accepting cannabis retail applications. Colfax is ready to issue up to four retail cannabis business permits (two medicinal and two adult use). Due to the limited number, it’s important to get started on your application today.

Application Checklist

Since the city states it “may” issue up to four permits, with no guarantee that it will release the full number, you’ll need to make sure your application is right the first time. To get started, download the full application.

Colfax requires two copies of the application be submitted, each one in a three-ring binder. A third copy will be required in PDF format on a flash drive. These details seem trivial, but they are important as you don’t want your application disqualified on arrival.

You will also need to supply proof of the following:

• A copy of a complete background check. Provide the receipt along with the application. The fee for the background check is $459.
• A zoning verification letter from the Planning Department. This letter ensures that your suggested location will meet all of the requirements.  Start the process now, it takes around ten days to verify and the fee is $205.
• Two (2x2) photos of yourself
• A copy of your social security card
• A copy of your passport, driver’s license or DMV issued card
• A bill or driver’s license to verify your address
• A completed commercial cannabis business permit application. The business application can be found here. Submit two copies with the application.

Application Process

There are four phases to the application process. The details above are part of the first phase.  Each of the individual phases will have a separate fee associated with them. If you pass Phase 1, you will be notified if and when you can move to the next phase.

• Phase 1: Preliminary determination of eligibility. Cost: $3,696
• Phase 2: Initial ranking. Cost: $1,466
• Phase 3: Second ranking. Cost: $1,633
• Phase 4: City Manager’s Final Recommendation to City Council. Cost: $1,165

The Evaluation Process

Colfax has provided a very specific points system which they will use to grade cannabis retail license candidates. Review these details carefully to make sure your application has the best chance of approval. If you have any questions about the status of your application, the city has provided the following contact information:
Wes Heathcock
530-346-2313
Wes.Heathcock@colfax-ca.gov


Additional Background

As you fill out the application, be prepared to discuss any history of other licenses you have obtained, past felonies, and a description of your desired business location (include any zoning verification letters). In addition, the city will require:

• Site Plans
• Floor Plans
• Signage Plans
• Photos of the building
• Business Plan
• Security Plans
• Safety Plans
• A proof of property ownership or a notarized statement from the property owner

Applications will close on June 4 at 4:00pm. Applications must be submitted to the Planning Department located at 33 South Main Street, Colfax, CA, 95713.

Submitting an application for a cannabis business permit is no easy feat.  Luckily, if you need some guidance, California Cannabis CPA is here to help. Contact us today!

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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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Leading up to 2018, the CDTFA passed two key regulations clarifying their requirements for correctly paying your cannabis cultivation and excise taxes. Regulations 3700 and 3701 pertain to collecting tax on inventory you’ve had in stock before the full legalization of cannabis in California, and are important to understand before filing your first-quarter report on April 30, 2018.
 
Cannabis Tax Regulation 3700: Cannabis Excise and Cultivation Taxes
Passed in December, 2017, this regulation clarified the existing excise and cultivation tax policy everyone must follow starting January 1, 2018. Specifically, this regulation clearly defines terms such as “fresh cannabis plant,” “distributor,” “cultivator,” and cannabis leaves and flowers. It also lays out the cultivation tax rates, which we’ve covered in previous articles.
 
Perhaps most importantly, Regulation 3700 also lays out the process for collecting the cannabis excise tax. Distributors are responsible for collecting, reporting and remitting cannabis excise tax from the cultivators and retailers each quarter. Late payments incur the following penalties:

• 50% of the unpaid cannabis excise tax or cannabis cultivation tax will be added to the cannabis excise and cultivation tax not paid.
• Potential additional penalties pursuant to the Fee Collection Procedures Law.

 
However, if the CDTFA finds that a failure to make a timely payment is due to reasonable cause, you may be relieved of penalty. To be relieved, you must prove that payment was late due to circumstances beyond the person’s control, and occurred in absence of willful neglect. If you find yourself in this situation, it’s best to consult with a tax or law expert to file a statement explaining the facts pertaining to your claim.
 
Cannabis Tax Regulation 3701: Collection and Remittance of the Cannabis Excise Tax
After passing Regulation 3700, California officials discovered a loophole to the cannabis excise tax– which regulation 3701 aims to close. Prior to the full legalization of cannabis in California, no person was required to obtain a distributor license until January 1, 2018. However, there were certainly individuals and companies operating as distributors before January 1 – distributors in the medical cannabis industry, for example. These companies would have existing cannabis inventory – so should this inventory be subject to the new cannabis excise tax?
 
Regulation 3701 says that if a retailer possesses or controls cannabis or a cannabis product at 12:01 a.m. on January 1, 2018, and makes a retail sale of that cannabis or cannabis product on or after January 1, 2018, then that retailer must charge a cannabis excise tax based on the average market price. This excise tax is due to the distributor by the fifteenth day of the calendar month following the close of the calendar month in which the tax was collected.
 
Here’s how this works in practice. A retailer purchases cannabis in 2017, and on January 3, 2018, purchases cannabis from a distributor for $100/oz. The wholesale cost is $100/oz. Therefore, the average market prices of an ounce is $160.00 ($100 x 1.6). The cannabis excise tax due on the sale of the cannabis purchased in 2017 is $24.00 ($160 x 15%) and the retailer must collect this excise tax from its customer.

Lastly, distributors need to know how to report the pre-2018 excise tax. When remitting the excise tax to the CDTFA, distributors should include the following information:

• Payment date
• Distributor name;
• Retailer name
• Amount of the Cannabis Excise Tax;
• Retailer’s Seller Permit Number;
• Distributor’s Seller Permit Number. A distributor not required to hold a Seller’s Permit must identify its exempt status.

Include this information on your first quarter tax return, due April 30, 2018. Questions? Get in touch, we’re happy to help. ​

Continuing our series from last week, today we’re covering the key tax policy that cannabis distributors in California are responsible for now that proposition 64 has been approved.  If you’re a retailer looking for detailed tax information, check out this for California cannabis retailers.

Distributors are also responsible for collecting and submitting a variety of taxes, including cannabis cultivation, sales, excise, and use taxes. Distributors are also responsible for filing the cannabis taxes after collecting cultivation and excise tax from the retailers and cultivators, and for keeping resale certificates on file from retailers. Here’s how to file your taxes, how much to collect from your cannabis partners, and how to handle sales tax.

Please consider that we are not a law firm, and this advice should not substitute any proper legal advice.

Are you a cannabis distributor?
You are cannabis distributor if you procure, sell and/or transport cannabis between licensed cannabis businesses such as cultivators, manufacturers or retailers. Distributors must meet also meet the following requirements:

• Register with the CDTFA (California Department of Tax and Fee Administration) for a cannabis tax permit.  This permit will be completely separate from any other permit you may have with the CDTFA.
• Collect the cultivation and excise tax.

• Electronically file your cannabis tax return and pay the amount owed to the CDTFA.
• Keep clear and precise records of all commercial cannabis activities.
• Have the appropriate business licenses.  They can be obtained from the Bureau of Cannabis Control.   Local governments licensing requirements may vary so we recommend checking with local city and county government offices to ensure you are compliant.

If you are also making sales, and not just transporting product, you are responsible for registering with the CDTFA to get a separate seller’s permit.  This will also require filing Sales and Use Tax Returns.
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Are you a microbusiness? This complicates things a little. Microbusinesses may operate as a distributor, but in that case they are only required to hold one license that authorizes the microbusiness as a distributor.  A microbusiness may operate as a cultivator, distributor, manufacturer and/or retailer.  Microbusinesses are responsible for all of the same requirements as distributor requirements listed above.

Distributor Cannabis Tax Requirements
CULTIVATION TAX
As a refresher, The cultivation tax is imposed imposed on all of the harvested cannabis that enters the commercial market.  Cultivators are responsible for paying the cultivation tax to the distributor. In some cases, the cultivator is responsible for paying the tax to the manufacturer if the cannabis is transferred or sold to a manufacturer first.  Either way, as a distributor, you are responsible for remitting the cultivation tax to the CDTFA. Cultivation tax rates are:

• $9.25 per dry-weight ounce of cannabis flowers
• $2.75 per dry-weight ounce of cannabis leaves
• A proposed $1.29 per ounce of fresh cannabis plant fee

To qualify for the third point, the cannabis plant must be weighed in an unprocessed state within 2 hours of harvesting. If you have immediate questions, please get in touch with our experts.

When you collect the cultivation tax, you will need to provide a receipt to the cultivators and manufacturers that lists the amount of the tax collected and relieves your cannabis partners from liability.

CANNABIS EXCISE TAX
Excise tax is a bit complicated: put most simply, excise tax is an added 15% of the average market price to the listed retail price of the cannabis product. It’s also contingent on the type of transaction between the customer and retailer. Read more about the cannabis excise tax under our post for retailers.

FILING YOUR CANNABIS TAX RETURN
The process for filing your cannabis tax return is slightly different from filing your income tax return and sales and use tax return. File your return on the CDTFA.gov site according to the quarterly schedule (so, your first return is due April 30). On this return, you are responsible for reporting the both the excise and cultivation taxes due for any cannabis and cannabis products that entered the commercial market during the reporting period. For example, on your April 30 return, you will report excise and cultivation taxes for January 1 – March 30, 2018. When reporting the excise tax, you must include reports for any product that has been transferred to a retailer (whether or not the product has already been sold).

Keep copies of your returns for future reference, and speak to one of our experts if you have any help.

Distributor Excise Tax Requirements
CANNABIS EXCISE TAX
As a distributor, you are responsible for paying the cannabis excise tax to the CDTFA and collecting it from your retailers you supply. 

Sales tax does not apply to valid sales for resale. Unless you’re operating as a cannabis microbusiness, your sales as a cannabis distributor are likely to be all resale  – meaning you won’t be responsible for paying sales tax. Enter: resale certificates.

Resale certificates allow you to buy resale inventory without paying sales tax reimbursement to the seller. You must provide a timely resale certificate to your supplier, with your seller’s permit information at the time you are making your purchases. Use Form CDTFA-230 as your resale certificate. Don’t use a resale certificate for any personal property – you may be penalized. Also, when you sell products to retailers, those retailers will give you a resale certificate that you should keep for your records. If you have any questions about using the resale certificate, get in touch! We’re happy to help. ​

Retailer Sales Tax Requirements
CANNABIS SALES TAX
Retailers will collect the sales tax from their customers and remit it to the CDTFA. The sales tax rate is based on where your sale takes place. To find the correct tax rate, check the database on the CDTFA site.  

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

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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.
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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:
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• 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.
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• 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 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
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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.

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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.
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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

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.