Last week, we covered some key findings for cultivators, distributors, and retailers released in the California Cannabis Advisory Committee 2018 Annual Report. The CAC provides recommendations o the California’s cannabis licensing authorities, and helps set forth priorities when it comes to the standards and regulations of the cannabis market.
Today, we’ll outline what the CAC recommended for Manufacturers, Licensing Applications, Microbusiness and Enforcement. It’s important to keep an eye on this committee, as they can have direct impact on the regulatory environment for your cannabis operation. Here’s what the committee accomplished last year. CAC Subcommittee for Manufacturers Last year, the Advisory Council’s Subcommittee on Manufacturers made a total of four recommendations. The licensing authorities moved forward to implement two of these recommendations, partially implemented a third, and declined to implement one.
Please note that the CDPH website has been updated to include more than 20 FAQs on packaging and labeling as well as some additional checklists to come. The CDPH intends to release a revised set of checklists, updated FAQs and an illustrative guide after adoption of the permanent regulations.
CAC Subcommittee for Licensing Applications This subcommittee specifically addressed the risk of large, consolidated cannabis operators dominating California’s nascent cannabis market. The Subcommittee for Licensing Applications was primarily concerned with adding transparency to the licensing process; offering financial relief and lowering barriers to entry for new applicants; encouraging marketing stability; and protecting the health and safety of workers in the cannabis industry. As a result, the Subcommittee had four recommendations which were adopted by the committee, of which two were implemented, one was partially implemented, and not implemented one.
CAC Subcommittee for Microbusinesses Cannabis microbusinesses are operators that meet a minimum of three out of four of these allowed commercial cannabis activities:
The Subcommittee for Microbusiness offered four recommendations, of which one was partially implemented and three were not implemented.
CAC Subcommittee on Enforcement Last, but not least, the Subcommittee on Enforcement is dedicated to improving public safety and protecting the business interests of the cannabis operator. They strive to “ensure that there is a balance between allowing for the feasible operation of cannabis businesses while deterring illegal and criminal activities.” The Subcommittee adopted five recommendations; in response, the licensing authorities implemented two, partially implemented one, and declined to implement two.
If you have any questions about the CAC or their policy recommendations, please get in touch with our experts. You can also read the full 2018 Annual Report, which covers every Subcommittee statement, to see more about how the regulations in California continue to evolve. Newsflash: last week, the California Department of Public Health (CDPH) proposed new emergency regulations that would allow cannabis manufacturers share facilities. These regulations are going to be filed on April 3, 2018, with an ensuing five-day public comment period until April 8, 2018.
These regulations intend to offer ways for small manufacturing businesses to enter the cannabis market at a lower start-up cost. Here’s what you need to know about the proposed regulations. How do I get a Type S License? Here is a quick overview of what you need to apply for your Type S License.
To get a Type S license, an applicant must fall into the Tier I or Tier II fee categories:
Lastly, “cannabis manufacturing” means that a licensee can participate in the following activities:
The application will be available on the CDPH website after the public review period has closed. How do I register a shared-use facility? If you are a cannabis manufacturer with a Type 7, Type 6, or N license, you can register your location for shared-use. As part of the approval process, you must apply for a Type S license. This is similar in structure to a commercial kitchen or coworking space in that it allows companies to share space and equipment. Note that the location where the cannabis shared-use license is held may only be used for cannabis-specific manufacturing activities. To register as a shared-use facility, you must submit the following information:
Why should I be interested in a shared-use facility? The emergency regulations aim to provide equity among cannabis manufacturing companies who have limited access to the cannabis market. Many local regulations and zoning restrictions prevent cannabis manufacturers from operating in accessible neighborhoods. Likewise, the cost of opening and operating a manufacturing plant can disqualify new businesses from getting off the ground due to exorbitant costs. The state intends to ease that burden while providing a new source of revenue for existing operations who wish to share their space. To review the details of the proposed regulations and a fact sheet with instructions for submitting public comment, visit the CDPH website and speak with one of our professionals about the process for sharing your manufacturing operation. Newsflash: this month, the California Department of Public Health (CDPH) proposed new emergency regulations that would allow cannabis manufacturers to share facilities. These regulations are going to be filed on April 3, 2018, with an ensuing five-day public comment period until April 8, 2018.
These regulations intend to offer ways for small manufacturing businesses to enter the cannabis market at a lower start-up cost. Here’s what you need to know about the proposed regulations. How do I get a Type S License? Here is a quick overview of what you need to apply for your Type S License.
To get a Type S license, an applicant must fall into the Tier I or Tier II fee categories:
Lastly, “cannabis manufacturing” means that a licensee can participate in the following activities:
The application will be available on the CDPH website after the public review period has closed. How do I register a shared-use facility? If you are a cannabis manufacturer with a Type 7, Type 6, or N license, you can register your location for shared-use. As part of the approval process, you must apply for a Type S license. This is similar in structure to a commercial kitchen or coworking space in that it allows companies to share space and equipment. Note that the location where the cannabis shared-use license is held may only be used for cannabis-specific manufacturing activities. To register as a shared-use facility, you must submit the following information:
Why should I be interested in a shared-use facility? The emergency regulations aim to provide equity among cannabis manufacturing companies who have limited access to the cannabis market. Many local regulations and zoning restrictions prevent cannabis manufacturers from operating in accessible neighborhoods. Likewise, the cost of opening and operating a manufacturing plant can disqualify new businesses from getting off the ground due to exorbitant costs. The state intends to ease that burden while providing a new source of revenue for existing operations who wish to share their space. To review the details of the proposed regulations and a fact sheet with instructions for submitting public comment, visit the CDPH website and speak with one of our professionals about the process for sharing your manufacturing operation.
We’ve offered guides for cannabis retailers and cannabis distributors, and here we cover tax responsibilities for cannabis cultivators and manufacturers. If you’ve been following our guides, many of these responsibilities will be familiar. Cannabis cultivators are anyone who grow, harvest, plant, dry, cure, grade, or trim the cannabis plant. If you are a nursery or cannabis plant processor, you are considered a cultivator. If you are someone who produces or prepares cannabis products, labels or re-labels cannabis containers, or who packages/repackages cannabis products, you are a manufacturer. Cultivators have to register for a seller’s permit with the CDTFA online at cdtfa.ca.gov. As a cultivator, when you make sales to other cannabis businesses, you will be required to get resale certificates, file sales and use tax returns, and report and pay use tax on taxable items purchased without tax and used by the cultivator. In addition, cannabis cultivators pay the cultivation tax to the distributor or manufacturer. In cases where unprocessed cannabis is first sold or transferred to a manufacturer, the manufacturer must collect the cultivation tax from the cultivator and pass it to the distributor for collection by the CDFTA. As a manufacturer, your responsibilities are similar to cultivators. You must also register for a seller’s permit, obtain resale certificates, file sales and use tax returns, and report and pay use tax on taxable items on taxable items purchased without tax and used by the manufacturer. Likewise, you are responsible for collecting cultivation tax from the cultivators and supplying a receipt if the unprocessed cannabis is transferred or sold to you first. Then, you will pay the cultivation tax to the distributor, who transfers the payment to the CDTFA. Be sure you keep proper records and have the right permits and licenses – in addition to a seller’s permit, both cultivators and manufacturers may need local or municipal-level licenses. We can help you sort out your licensing needs. Cultivation Tax This tax applies to all harvested cannabis that has entered the commercial market: that is, cannabis that has completed testing and complies with the quality assurance review as required by law. How much is cultivation tax? It depends on the type of cannabis products being sold.
*Fresh cannabis plant fee only applies when the cannabis plant is weighed in an unprocessed state within 2 hours of harvesting. If you have immediate questions, please get in touch with our experts. Once again, distributors collect the cultivation tax from cultivators and manufacturers. Tax is due when the cannabis enters the commercial market. The distributor will provide an invoice or receipt when they collect the cultivation tax, and you should keep this for your records. Sales and Use Tax File your sales and use tax returns separate from your cannabis and income tax returns. Sales and use tax returns should be filed on the CDTFA website based on the due dates, which may vary. There are also some prepayments you will be asked to make which can be found on the same site. Keep copies of your returns in case there’s ever a question on your record-keeping. Sales tax applies to the retail sales of tangible personal property, including some labor or service costs if they are related to the sale of tangible property. Sales tax does not apply to valid sales for resale, though, so as a cultivator or manufacturer, virtually all your sales should be for resale (meaning your sales tax responsibilities are negligible). When you make a resale, use Form CDTFA-230 as your resale certificate. Don’t use a resale certificate for any personal property – you may be penalized! Use tax is a tax on all items that you use and consume and purchased without paying tax. In the real world, this might include getting a massage – it was a service you used that likely didn’t include tax when you originally paid the masseuse. Use tax is the same rate as sales tax and will generally apply to purchased from outside California that you didn’t pay state tax on at the time of purchase. These tax responsibilities can seem overwhelming, but that’s where our experts come in to help. If you have any questions pertaining to cultivation, sales, or use tax, please don’t hesitate to get in touch. We’re here to help you stay compliant! This past November, the California Department of Public Health's Manufactured Cannabis Safety Branch (MCSB) released Emergency Regulations that outlined the licensing procedures for the manufacturing of cannabis products. Here’s a quick guide reviewing the standards and practices you need to know to be compliant in 2018. Types of Licenses As you already know, It is illegal to manufacture cannabis product without a valid license -- and this will continue to be the case after cannabis is legalized on January 1, 2018. A license is needed at each of the premises in which cannabis is manufactured. There are two types of licenses:
It is important to note that these licenses are non-transferrable. In addition, those that are employed by an agency in California or hold office are not authorized to hold a manufacturing license. License Application Requirements The application deadline is fast approaching for 2018. There are also different protocols and detailed information that must be submitted with each license application. Temporary License Application The MCSB will issue temporary licenses to allow a business to engage in commercial cannabis activity. These licenses are valid for 120 days. You may extend for an additional 90 days if the business has submitted a complete annual license application. The application can be submitted via snail mail or email. Once received, the CDPH will have 10 days to respond. The temporary licenses have no fees associated with them and the CDPH began accepting them December 8, 2017. Here is the temporary license application from the official website: Temporary License Application. Annual License An online system is due to launch this month will allow manufacturers to submit applications for the annual license. Check the CDPH website for updates on the online submission portal. This application is quite extensive and will require you to submit the following information:
This annual license application is very lengthy and will require proof of details for many of the latter items. GreenGrowth CPAs suggests reading the official bill thoroughly to ensure you submit the proper detailed information about items such as security procedures, quality control, transportation and waste disposal. Of course, if you have any questions, don’t hesitate to let us know! We’re here to help. Application and License Fees A nonrefundable application processing fee of $1,000 is required for each new application. Annual license fees are based upon a sliding scale.
Priority in issuance of licenses shall be given to qualified applicants that can demonstrate that the commercial cannabis business was in operation under the Compassionate Use Act as of September 1, 2016. The department also has a right to deny applications for new or renewal licenses for any reason.
License Renewal If you would like to renew a manufacturing license, it must be submitted to the department at least 30 calendar days prior to the expiration date of the current license. A renewal application will not be accepted more than 60 calendar days prior to the expiration of the current license. If a renewal application is submitted after the expiration date, a $500 fee is charged in addition to application fees. More so, if the renewal is not submitted within 30 calendar days after the expiration date you will lose your ability to apply for license renewal. Instead, it is required you submit a new license application. If you’re planning on launching your business in 2018, you’ll also need a seller’s permit to do so. Read our guide for additional information about securing your seller’s permit before 2018. There are many policies and regulations that will continue to evolve in 2018. GreenGrowth CPAs will continue to update our site to bring you the latest information about selling, growing and manufacturing cannabis. The local government of Cathedral City, CA has adopted several ordinances that define a set of regulations allowing certain Medical Cannabis Businesses to operate. Anyone who would like to originate a Medical Cannabis Business within the City must obtain prior approval from the City before beginning operations. Cathedral City issuing Conditional Use Permits for Dispensaries, Cultivation and Manufacturing. Cathedral requires each Medical Cannabis Business to obtain a Medical Cannabis License and a Conditional Use Permit in addition to any other generally applicable permits, licenses or approvals that are required of businesses. A separate Medical Cannabis License and Conditional Use Permit are required for each proposed location. Prospective Medical Cannabis Businesses may submit applications for a Medical Cannabis License and a Conditional Use Permit at the same time, or may wait until after the Medical Cannabis License has issued to apply for a Conditional Use Permit. A Conditional Use Permit cannot be issued until after the Medical Cannabis License has been approved. A Medical Cannabis License must be renewed annually. Follow these steps to obtain the required permits for a Medical Cannabis Business in Cathedral City, CA. Step 1: Determine an Acceptable Location for a Medical Cannabis Business Step 2: Complete the application process for a Medical Cannabis Business License in Cathedral City, CA. Step 3: Complete and Review the application process for a Medical Cannabis Business Conditional Use Permit (CUP) in Cathedral City, CA. Step 4: Complete Criminal History Check (Live Scan) Prior to applying:
Step 1: Determine an Acceptable Location for a Medical Cannabis Business The application must include the address and a detailed description of the proposed Medical Cannabis Business location. Dispensaries, Cultivation Sites and Manufacturing Sites are only being permitted in certain zones listed in Section 9.108.090 of the City Code. Dispensaries may be located in the I-1, CBP-2, and PCC zones. Cultivation Sites may be located in the I-1, CBP-2, PCC and OS zones. Manufacturing Sites may be located in the I-1 zone. Dispensaries, Cultivation Sites and Manufacturing Sites are subject to other locational restrictions, as stated in Section 9.108.090 of the City Code, including minimum distance requirements from schools, day-care centers and youth centers, residential zones, and East Palm Canyon Drive. Any person who desires to open a Medical Cannabis Business in the City should ensure that the proposed location of the use satisfies the City’s locational restrictions in Section 9.108.090 prior to filing an application for either a Medical Cannabis License or a Conditional Use Permit.
City of Cathedral Zoning Map: http://www.cathedralcity.gov/home/showdocument?id=5350 Step 2: Complete and Review the Application Process for a Medical Cannabis Business License in Cathedral City, CA.
Medical Cannabis Business License Application Completed applications need to be submitted in person at: Cathedral City Community Development Department 68-700 Avenida Lalo Guerrero Cathedral City, CA 92234 All applicants are required to complete the application form and submit two (2) copies. A deposit in the amount of $7,500.00 is required along with the application and the following additional documentation:
The applicant will be notified in writing by the City Manager of the decision to approve or deny the Medical Cannabis License. If approved the license will not be issued until the applicant posts a cash deposit or letter of credit in the amount of $5,000 as the security required by Section 5.88.040(I)(5) of the City Code. The Medical Cannabis License will not be considered final, and no Conditional Use Permit may be issued, until this amount is posted. Step 3: Complete and Review the Application Process for a Medical Cannabis Business Conditional Use permit (CUP) City of Cathedral, CA. Conditional Use Permit Application Applicants may apply for the Conditional Use Permit CUP at the same time as the Medical Cannabis License or they can wait until the Medical Cannabis License is approved. The City will not schedule the Conditional Use Permit for a public hearing before the Planning Commission until a Medical Cannabis License has been approved by the City Manager and the appeal period has expired or all appeals have been exhausted. The Conditional Use Permit application might require at least one site visit by City Planning staff and the potential need to revise submitted plans to ensure they comply with all applicable laws and regulations prior to scheduling of the hearing before the Planning Commission. The CUP application form must be submitted to the City in person, along with the following documentation:
Step 4: Complete Criminal History Check (Live Scan) Once an application has been submitted, applicants may contact the Police Department at (760) 770-0304 to schedule an appointment to start the LiveScan fingerprinting and the background check process. The background check can begin after the application is submitted or after the City has completed the courtesy pre-screening or made a formal determination that the application is complete. At the time the application is submitted the City will provide the applicant with a Live Scan form for each person identified in the application as an owner, director, officer, or person who is managing or otherwise responsible for the activities of the proposed of the Medical Cannabis Business. Live Scan forms will also be available on the City’s website. Background checks consist of a two-step process: Step 1: Each individual associated with the application must be fingerprinted using Live Scan technology.
Step 2: The background check shall generally consist of, but not be limited to:
The Background Investigator will submit a full report to the Chief of Police upon completion of the background check. The Background Investigator shall be tasked solely with providing factual information in his or her report in order to provide the Chief of Police with a sufficient factual basis to decide as to whether the application should be approved or denied. Once the Chief of Police reviews the report from the Background Investigator they will make a recommendation as to whether the criminal history of one or more of the individuals indicates that Good Cause exists to deny the application. The Chief of Police’s recommendation shall be issued in writing within ten (10) calendar days of his receipt of the report from the Background Investigator and shall include an explanation as to the Chief of Police’s reasoning in making the recommendation, including the analysis bridging the facts to the ultimate conclusions. Currently, the City of Desert Hot Springs is accepting applications for temporary marijuana facilities. These temporary options allow facilities in the City Desert Hot Springs to begin operation while the state develops the appropriate regulations for Proposition 64 (Prop 64), the “Control, Regulate and Tax Adult Use of Marijuana Act”.
Proposition 64 was designed to reshape the use and taxes of marijuana in the state including designating specific agencies to regulate and licenses of the marijuana industry in California. As the state works to create licensing procedures that meet the new law by January 1, 2018, cities like Desert Hot Springs have decided to implement temporary processes to cover businesses in the interim. Anyone interested in submitting a temporary marijuana facility application must go through the process outlined below: Step 1: Select A Temporary Facility Option Step 2: Obtain Appropriate Permits Step 3: Submit Application to Initiate the Approval Process _____________________________________________ Step 1: Select A Temporary Facility Option The City of Desert Hot Springs is offering three options for temporary marijuana facilities. Marijuana businesses must determine the best temporary option based on business needs. Below are three options outlined by the City:
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:
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:
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:
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:
Application fee: $7,986 plus $40,000 cash deposit (returned up project completion or when site is returned to original condition) Application Approval Timeline: 3-6 weeks Currently the city of Coalinga, CA is accepting applications to obtain a permit for cultivation, processing, extraction, manufacturing, testing, and distribution activities with an approved Conditional Use Permit (CUP) and Regulatory Permit within areas of the City zoned Manufacturing and Business Light (MBL). Anyone interested in operating a Commercial Cannabis business within the City of Coalinga must obtain the following: Step 1: Attend Mandatory Pre-Application Meeting Step 2: Identify Property Zoned Location Suitable for Commercial Cannabis Activity Step 3: Submit Regulatory Permit Application Packet Requirements Obtaining a Commercial Cannabis Permit is a dual submittal process. Application documents must be filed with both the Police Chief and Community Development Department. Cannabis Permit Processing Matrix Step 1: Attend Mandatory Pre-Application Meeting There is a prerequisite of scheduling a mandatory pre-application meeting prior to the submission of an official application package for a Commercial Cannabis Permit. All prospective applicants must schedule a pre-application meeting with the City of Coalinga by contacting Amy Martinez, Community Development Secretary at 559-935-1533 x141. The purpose of the pre-application meeting is to provide a comprehensive review of the application process, the application content, and the expectations of the City as it relates to permitting requirements such as the security plan, floor plan, cannabis operational characteristics, employee permits, licensing fees and taxes, monitoring and compliance, legal documents, etc. Step 2: Identify Property Zoned Location Suitable for Commercial Cannabis Activity According to the City of Coalinga’s Commercial Marijuana Operations Ordinance, all licensed Commercial Marijuana Operations are permitted within the Manufacturing and Business Light Zoning Designations (MBL). Also, in the ordinance is a restriction of 1,800 feet from any currently sited and future sited school (K-12). For more information regarding school siting you can view the attached map that identified locations in town outside that restriction. The following applications for land use will need to be submitted: Additional information on fees and regulations can be found at the following links:
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.
There are several Regulatory Permit Application Requirements: Application Checklist
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:
Step 1: Secure Permits and Licenses
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:
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.
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.
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.
The following are examples of items considered cannabis cultivator farm equipment and machinery:
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.
Manufacturer: The manufacturer must collect taxes from the cultivator and must pay the distributor a cultivation tax.
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:
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:
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:
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.
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”. Additional Information:
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 (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:
Parking compliant with city regulations should be addressed in the site plan as well.
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:
Other information including proposed activities, average amount of production and source of cannabis must be included in the operations plan.
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:
Step 4: Submit Application to Initiate the Approval Process:
The City of Grover Beach, CA is accepting applications for Commercial Medical Cannabis Business based on city ordinances Ordinance No. 17-05 and Ordinance No. 17-06 as of June 14, 2017. The application deadline for dispensaries has expired however the City is taking applications for Cultivation, Manufacturing, and Testing Laboratories. At this time Grover Beach does NOT allow Recreational Cannabis uses. Contact Information for all Commercial Medical Cannabis Business Related Questions: All Commercial Medical Cannabis Businesses will be required to complete the following steps: Step 1: Determine an Acceptable Location for a Commercial Medical Cannabis Business. Step 2: Complete the application process for a Cannabis Use Permit in the City of Grover Beach, CA. Step 3: Complete the application process for a Commercial Cannabis Permit in the City of Grover Beach, CA. Prior to applying:
Step 1: Determine an Acceptable Location for a Commercial Medical Cannabis Business Grover Beach allows Commercial Medical Cannabis Business in all three industrial zones:
Grover Beach, CA Zoning Map: http://www.grover.org/DocumentCenter/View/2749 All cultivation with storefronts shall be located a minimum of 600 feet from public and private schools grades kindergarten through 12th grade consistent with State law. All commercial cannabis uses shall be located a minimum of 100 feet from the CR2 Zone on the north side of Atlantic City Avenue as measured from the residential lot boundary to the industrial lot boundary. Step 2: Complete the application process for a Cannabis Use Permit in the City of Grover Beach, CA. All Applicants will be required to pay an application deposit that covers the costs acquired by the city when reviewing the Cannabis Use Permit application. The deposit amount will range from $6,000 - $10,000.
If the Cannabis Use permit is approved applicant may submit the application for the Commercial Medical Cannabis Permit Step 3: Complete the application process for a Commercial Cannabis Permit in the City of Grover Beach, CA. Commercial Cannabis Permit Application Checklist Commercial Cannabis Permit Application Fire and Life Safety Requirements The applicant must complete and submit the following:
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:
235 North Broadway, Blythe, CA, 92225
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:
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:
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:
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
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 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:
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:
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:
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:
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
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:
Calexico, Ca Zoning Map: Step 3: Gather and Prepare Site Plan Supplemental Requirements GENERAL INFORMATION MUST BE LISTED ON ALL SHEETS:
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):
ITEMS SPECIFIC TO PRELIMINARY GRADING AND DRAINAGE PLAN:
ITEMS SPECIFIC TO PRELIMINARY LANDSCAPE PLAN:
INFORMATION SPECIFIC To ELEVATIONS:
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:
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:
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:
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:
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:
City of Woodlake Zoning Map: At a minimum the Cannabis Business location must comply with these building code operational requirements and restrictions:
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.
Phase 3 – Application Requirements:
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:
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:
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 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:
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:
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:
Essential Supplemental Information Required: Criminal history: Applicant must state that no Manager or Principal of an applicant has any violent or serious felony conviction(s) as specified in Sections 667.5 and 1192.7 of the Penal Code or any felony conviction involving fraud, deceit or embezzlement. Applicant must identify any pending criminal complaint(s). The Applicant must certify, as a condition of maintaining the permit, that it will not employ any person with any type of violent or serious felony conviction(s) as specified in Sections 667.5 and 1192.7 of the Penal Code or any felony conviction involving fraud, deceit or embezzlement. Applicants must certify as a condition of maintaining the permit that they will not employ as managers or employees any person with any controlled substance related misdemeanor conviction Item 2: Consider all Fees Pertaining to Submitting a Cannabis Permit Application All fees are to be paid by cashier’s check or money order and made payable to the “City of Baldwin Park”. Item 3: Acceptable Commercial Cannabis Business Locations Choosing the right location is critical for your business. Information on the facility location will be required when submitting the Baldwin Park Cannabis Permit Application. Here is a list of information that is needed:
Required Plan Submittals (Plans must be drawn to scale):
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:
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:
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:
Additional application requirements - The Director of Planning may require additional information depending on the type of Commercial Medical Cannabis activities:
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:
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.
Step 4: Comply with the self-reporting Commercial Cannabis Business Tax Law Beginning January 1, 2017, anyone engaged in commercial cannabis business activities as described in MCC Section 7.100.030(A) and (B) shall be subject to the annual tax. These activities include cultivating, dispensing, producing, processing, preparing, storing, providing, donating, selling, or distributing cannabis in the unincorporated area of the County. This includes operations currently engaged in commercial cannabis business activities that have not yet obtained the required County permits or state licenses. Anyone engaged in commercial cannabis activities, as stated above, shall immediately self‐report such activities to the Monterey County Resource Management Agency (RMA) ‐ Planning Services using the Treasurer‐Tax Collector’s Commercial Cannabis Business Tax Self Reporting Form. The commercial cannabis business shall disclose the type, nature, location, and size of the cannabis operation. The completed self-reporting form should be emailed to cannabis@co.monterey.ca.us. If mailing hardcopies, please send to: Monterey County RMA c/o Jackie Nickerson, 168 W Alisal, 2nd Floor, Salinas, CA 93901. Commercial Cannabis Business Tax Administrative Rules and Procedures found here: http://www.co.monterey.ca.us/home/showdocument?id=2355
Currently the city of Long Beach, CA is accepting applications for NEW medical marijuana cultivation, lab testing and manufacturing facilities. Beginning 9/1/2017 Long Beach will start accepting distribution applications as well. Applications are accepted on a first come first serve basis Monday-Friday, 7:30 AM – 4:00 PM. The Long Beach Application process is very complex. Individuals should consider hiring assistance to manage, organize, and write the application. Details regarding the specific rules can be found in the Long Beach Municipal Code Chapter 5.90 . At this time, there is no application deadline. Applications should be submitted in-person to: Long Beach City Hall 4th Floor Business License Counter 333 W. Ocean Blvd, Long Beach, CA 90802 7:30 AM – 4:00 PM Individuals seeking to obtain a Medical Marijuana Manufacturing Business License in Long Beach, CA can start by following 4 important steps: (Step 2-4 must be submitted in order). Step 1: Identify an acceptable medical marijuana manufacturing facility location. Step 2: Completing the application for a NEW Medical Marijuana Business License. Step 3: Complete the Manufacturing Supplemental Information Form. Step 4: Develop a Manufacturing Operations Plan. Step 1: Identify an acceptable medical marijuana manufacturing facility location: Applicants identifying an acceptable property should be aware that the Long Beach Marijuana Code 5.90.030 has put forth the following restrictions that must be adhered to:
The Planning Bureau will review the previous and proposed use of the property as well as the parking requirements. The following are required by the Planning Bureau:
Required # OF Parking Spaces: 2 per 1,000 square feet of Gross Floor Area Medical Marijuana Buffer Map: Department Reviews and Inspections:
When applying, applicants will be required to pay an application fee: # of Owners and Business Managers: Application Fees 1: $200.45 2: $345.45 3: $490.45 4: $635.45 5: $780.45 6: $925.45 ***Checks should be made payable to the “City of Long Beach” *** ***Application fees are non-refundable. If applicant is not successful in obtaining a license, a refund may be requested by emailing a completed Refund Request Form to lbbiz@longbeach.gov *** Application Checklist Overview: Medical Marijuana Business License Application (item details found on application).
Live Scan:
License Taxes:
Step 3: Complete the Manufacturing Supplemental Information Form. In addition to the Medical Marijuana Business License Application the Supplemental Information Form will require the following information:
Step 4: Develop a Manufacturing Operations Plan. All medical marijuana manufacturing businesses are required to submit an operating plan. At a minimum, the operating plan must meet the requirements as set forth in LBMC Chapter 5.90. Any statements made in the Operating Plan may not supersede any local and/or state laws, rules, and regulations. For each section of the Operating Plan a cover sheet is required and each section should be clearly labeled. The operating plan must have page numbers in the bottom right hand corner. DO NOT staple or bind the operating plan. You may submit the Medical Marijuana Business License Application and the Manufacturing Operating Plan in a three-ring binder or in an envelope. Both the Medical Marijuana Business License Application and the Manufacturing Operating Plan must be submitted at the same time. The Operating Plan must include the following areas: General Description of Services – a summary of the proposed business model:
Extraction Method – If performing on-site extractions provide a description of the extraction method:
Noxious Chemical Control – It is important to describe what methods will be used to ensure that odor generated inside the manufacturing facility is not detected outside the business premises.
Toxic Material – Provide a description of all toxic, flammable, or other materials that will be used or kept at the medical marijuana business, the location of such materials, and how such materials will be stored. This includes all materials regulated by a federal, State, or local government that would have authority over the business if it was not a marijuana business.
Quality Control – Describe the manufacturing quality control procedures that will be employed by the business to ensure that marijuana products are safe and suitable for human consumption and/or use.
Security - Provide a detailed description of their security plans. The security component should be broken down into operational and facility security categories.
Operational Security - Detail the operational security including but not limited to general security policies for the facility, employee specific policies, training, sample written policies, transactional security, confidential information security, visitor security, 3rd party contractor security, and transportation security.
Facility Security - Applicants should provide a description of the overall facility security.
Digital Video Surveillance - All Medical Marijuana Businesses must install and maintain a fully operational digital video surveillance and camera recording system. The video and surveillance system shall, at a minimum, meet the following requirements:
Any security measures that exceed these standards are highly desirable. Product Tracking and Disposal - Identify how marijuana will be tracked and monitored to prevent diversion and theft.
Product Complaints - Describe policies for receiving, recording and handling product complaints associated with the use of marijuana products provided by the manufacturing facility. Policies may include:
Product Rejection/Recall Describe the steps that the manufacturing facility will take when notified from a testing agency or City Health Official that the tested marijuana product does not meet appropriate health standards.
Fire Plan - Applicants should provide a detailed description of their fire prevention, suppression, alarm and life safety systems.
Employee Safety & Hygiene - Provide a summary of the safety protocols that will be adopted by the manufacturing facility, including, but not limited to: staff training, protective equipment, hazardous material handling, emergency communication/response protocols, etc. Businesses must conform to all Cal OSHA workplace safety standards, specifically Title 8 of the California Code of Regulations.
Community Involvement - Provide a detailed description of their plans to participate in community service within the City of Long Beach.
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.
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:
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
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:
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.
Floor Plan [1/4” = 1’] (Quantity of 3 Copies):
Area Map [1” = 50’] (Quantity of 3 Copies):
Business Plan (shall contain a minimum of the following information):
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:
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:
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.
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:
For new construction, you must submit the following additional information:
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
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
Manufacturer Facility (MMRSA permit type 6-7) – Annual Fire Department Operational Permit Required
Testing/Laboratory (MMRSA permit type 8) – Annual Fire Department Operational Permit Required
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.
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.
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. Sonoma County began accepting permit applications for commercial and medical cannabis business on July 5th, 2017. The Sonoma County Cannabis Program outlines the most current information regarding the application process. Currently, they are offering permits for medical Indoor and Outdoor Cultivation, Dispensaries, Distribution and Transportation, Manufacturing, Nurseries, and Testing Facilities.
Sonoma County is cannabis-friendly, and even offers a new business Cannabis Business Readiness Guide to those who are looking to gain entry into the market. In the coming months, they are even offering workshops to prepare individuals for entry into the market. The Sonoma County Cannabis Calendar has a Cannabis: Outdoor Cultivation Zoning Permit Workshop, Medical Cannabis Dispensary Health Permit Workshop, Edible Medical Cannabis Manufacturing Site Permit Workshop, and Cannabis Pesticide Permit Workshop on the books. These workshops promise to bring information regarding the permitting process and key tips to remain compliant. While friendly to medical use, it is important to point out that the County currently prohibits nonmedical or “recreational” commercial cannabis uses, with the exception of up to six plants not exceeding 100 sq. ft. for personal use per residence. It’s likely that as they gain a full grasp of the medical cannabis regulations, they will allow for expansion into the recreational space. Next, Sonoma County is looking to develop the local economy. They are offering priority to applicants who are able to demonstrate 1 of the 2 following criteria:
All applicants will be subject to annual inspections and permitting. Additionally, applicants must be 21 or older, will be subject to background screening, and must be in compliance with all occupational safety requirements (Cal/OSHA, wage and hour laws, etc). Below is a summary of the requirements for each type of permit available. Permits can be submitted to the address below. Permit Sonoma 2550 Ventura Avenue Santa Rosa, CA 95403 Cultivation and Nurseries Those interested in operating a cannabis cultivation or nursery site will require a Cannabis Use Permit. There are different requirements depending on the cultivation type. Building, Well, and Septic Permits will be applicable from Permit Sonoma which may include the Groundwater Well Monitoring Covenant and Easement Fillable Form and Instructions for completing Groundwater Easement Form. A fire review and inspection will be required to review all cannabis cultivation applications to ensure that structures meet certain criteria. The Department of Agriculture/Weights and Measures will inspect all cultivation sites, whether the operator’s permit is issued by Permit Sonoma or the Department of Agriculture. The following Cultivation and Nursery Permits are available: Indoor and Mixed Light Zoning Permits Permit Sonoma issues indoor and mixed light zoning permits. Application: Cannabis Cultivation Permit Application PJR-123 Outdoor Zoning Permits – Up to and Including 10,000 Square Feet The Department of Agriculture/Weights and Measures issues outdoor cottage permits in the agricultural zones (Land Intensive Agriculture or LIA, Land Extensive Agriculture or LEA, and Diverse Agriculture or DA) and outdoor grows up to 10,000 square feet in the LEA and DA. Zoning permits are ministerial and will be issued once it can be verified that the operation meets all the standards within the ordinance. See Cannabis Permits from Agriculture, Weights & Measures Outdoor Use Permits – 10,001 Square Feet or More A use permit is a discretionary permit and Permit Sonoma will review each application and condition on a case-by-case basis. Each permit is subject to public notification and environmental review. A minor use permit may be approved administratively without a public hearing if one is not requested by the public. Application: Cannabis Cultivation Permit Application PJR-123 (PDF: 235 kB) Review the Sonoma County Cultivation Site and Nursery Site for additional details. Cultivation centers must also take into consideration the following requirements: Site Development Criteria
Pre-Operational Requirements
Dispensaries The County has been issuing land use permits for dispensaries since 2007. No more than 9 medical cannabis dispensaries can be permitted within the unincorporated county at any one time. There are currently 5 dispensaries in operation and 3 applications are pending. Dispensaries are medical only and can only sell cannabis and related products to patients with a valid medical recommendation. Delivery operations must be connected to a brick and mortar dispensary. Cannabis dispensaries are allowed in the urban commercial zones (C1, C2, and LC) and will require a use permit from Permit Sonoma. A use permit is a discretionary permit and each application is reviewed and conditioned on a case-by-case basis. Each permit is subject to public notification and environmental review. Application: Cannabis Supply Chain Business Use Permit Application PJR-124 Visit the Sonoma County Website for more information regarding the application process for dispensaries. Distribution and Transportation Cannabis distributors and transporters are allowed in most industrial zones (MP, M1, and M2) and will require a minor use permit from Permit Sonoma. A use permit is a discretionary permit and each application is reviewed and conditioned on a case-by-case basis. Each permit is subject to public notification and environmental review. A minor use permit may be approved administratively without a public hearing if one is not requested by the public. Fire and Emergency Services will review all distribution and transportation permit applications to ensure compliance. Applications can be found here: Cannabis Supply Chain Business Use Permit Application PJR-124 Manufacturing Applicants who are interested in operating a cannabis manufacturer will require a Cannabis Land Use Permit. Cannabis manufacturers are allowed in the industrial zones (MP, M1, M2, and M3) and will require a minor use permit from Permit Sonoma. A use permit is a discretionary permit and each application is reviewed and conditioned on a case-by-case basis. Each permit is subject to public notification and environmental review. A minor use permit may be approved administratively without a public hearing if one is not requested by the public. As required, Building, Well, and Septic Permits required. Fire and Emergency Services will review all manufacturing permit applications to ensure compliance. Applications can be found here: Cannabis Supply Chain Business Use Permit Application PJR-124. Edible manufacturing businesses will require a permit from the Department of Health Services which can be found here: Permit for Edible Medical Cannabis Product Manufacturing Site. Testing Labs Those interested in operating a cannabis testing lab will be required to obtain a Cannabis Land Use Permit from Permit Sonoma to operate in the industrial zones (MP, M1, M2, and M3) and a conditional use permit to operate in certain commercial zones (C3 and LC). A use permit is a discretionary permit and each application is reviewed and conditioned on a case-by-case basis. Each permit is subject to public notification and environmental review. A minor use permit may be approved administratively without a public hearing if one is not requested by the public. Fire and Emergency Services will review all distribution and transportation permit applications to ensure compliance. More information can be found in the Test Lab Section on Sonoma County Site. AB 2679: California Issues Guidance for California Cannabis Manufacturers
On September 29, 2016 Governor Jerry Brown, signed AB 2679 into law in order to provide guidance for cannabis manufacturers that are currently operating in the state of California. The bill's authors were the same legislators that designed the Medical Cannabis Regulation and Safety Act (MCRSA). A cannabis manufacturer is any company that uses methods to prepare cannabis or its by-products for commercial retail and/or wholesale, including, but not limited, to the processes of drying, cleaning, curing, packaging, and extraction of the active ingredients of cannabis in order to create marijuana-related products and concentrates. Examples of companies that are considered as cannabis manufacturers are companies that produce marijuana extracts and concentrates. Although all cannabis businesses are still illegal under federal law, California cannabis manufacturers are particularly at risk due to a state law which made the manufacturing of a controlled substances, such as cannabis, by chemical extraction illegal. Prior to the passage of AB 2679, there was very little guidance available to cannabis manufacturers informing them of how to ensure that their business operations were compliant with California law. However, AB 2679 has now exempted collectives and cooperatives that engage in the manufacture of cannabis products from criminal penalties, if they meet certain requirements. Under AB 2679, cannabis manufacturers are required to:
In the same way that the current laws govern California medical cannabis cooperatives and collectives, these new provisions for cannabis manufacturers are designed to be repealed during the year following the announcement that state marijuana licenses are being issued from the Bureau of Medical Cannabis. Once this occurs, the California Department of Public Health (CDPH) will take on the job of issuing licenses to these cannabis manufacturing businesses per the MCRSA. The CDPH is also responsible for developing the standards that apply to the manufacturing and labeling of manufactured medical marijuana products. In addition, the CDPH has been tasked with identifying and creating reports of any medical marijuana products that have been misbranded or adulterated. The CDPH is currently holding meetings in order to address concerns regarding cannabis manufacturer licensing. However, until 2018, which is when the CDPH officially takes over as the regulatory body for cannabis manufacturing, state legislators are hoping that AB 2679 can provide cannabis manufacturers with adequate protection from unnecessary raids from local law enforcement agencies, enabling them to continue with their normal operations. For those cannabis manufacturers who were waiting for this guidance, the passage of AB 2679 should provide relief and the information that they need to bring their businesses into compliance with California law in preparation for the issuing of cannabis manufacturing licenses in 2018. |