California Code of Regulations, Title 3 (Food and Agriculture), Division 8 (Cannabis Cultivation), Chapter 1, Section 8000(h) defines cultivation as “any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.” Persons involved in these activities include landowners, lessees, executives and workers who develop, grow and service cannabis plants. License types are classified by whether the cultivation is indoor or outdoor and the size of the cultivation, not to exceed one acre of total outdoor canopy and 22,000 square feet of indoor canopy. Applicants for licenses must provide proof of a license, permit or authorization from the local government where the premises are located. Licenses are limited to single location, are valid for 12 months, must be prominently displayed and cannot be transferred. A licensee may hold both an A (adult use) and an M (medical) license on the same premises, provided the inventory for each license type is kept separate and distinct. Cultivators and other business in the industry are supported by Facilitators.



Section 8201(f) of the temporary Cultivation Regulations: “Processor” is a cultivation site that conducts only trimming, drying, curing, grading, packaging, or labeling of cannabis and nonmanufactured cannabis products, requiring a separate license. The category of Processors is authorized by Business and Profession Code section 26012(b): “The licensing authorities shall have the authority to collect fees in connection with activities they regulate concerning cannabis. The licensing authorities may create licenses in addition to those identified in this division that the licensing authorities deem necessary to effectuate their duties under this division.” However, a cultivation site for planting, growing and harvesting, need not get a separate license for “drying, curing, grading or trimming” cannabis if conducted on the same site. “Cultivation site” means a location where commercial cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or that does all or any combination of those activities.” (Reg. 8201(f))



“Manufacturing” or “manufacturing operation” means all aspects of the extraction and/or infusion processes, including processing, preparing, holding, storing, packaging, or labeling of cannabis products. Manufacturing also includes any processing, preparing, holding, or storing of components and ingredients. License type 6 is for extractions using mechanical methods or nonvolatile solvents and type 7 for extractions using volatile solvents. Type N is for manufacturers that produce edible products or topical products using infusion processes, or other types of cannabis products other than extracts or concentrates, but that do not conduct extractions. A Type N licensee may also package and label cannabis products on the licensed premises. A Type P license is for manufacturers that only package or repackage cannabis products or label or relabel the cannabis product container. Manufacturers that engage in packaging or labeling of cannabis products as part of the manufacturing operation do not need to hold a separate Type P license.



Distributers provide transportation of cannabis between licensees, but not products other than cannabis; they may provide storage, but batches must be separate for testing; they may package, re-package, label or re-label cannabis for sale. Cultivators and manufacturers may also distribute.




Retailers accept delivery from Distributers. Age appropriate identification (21 or 18 for medical use) is required. A separate retail area is required; there are limits on hours of operation (6 a.m. to 10 p.m.). Retailers require security and have display restrictions. The sale of seeds and immature plants is permitted and other products as allowed by local law, except alcohol or tobacco. Retailers can’t offer free goods, except to medical patients. They may not package or label cannabis goods. Type 9 license is for delivery services with GPS tracking and route restrictions. Record keeping is required and a retailer may not sell in a single day sell more than 28.5 grams of non-concentrated cannabis, 8 grams of concentrated cannabis, including concentrated cannabis contained in cannabis products, or 6 immature cannabis plants. A medicinal cannabis patient, or to a patient’s primary caregiver purchasing medicinal cannabis on behalf of the patient, is limited to a single day purchase of no more than 8 ounces of medicinal cannabis, 12 immature cannabis plants, unless a physician has recommended more.



Type 12 licensees must engage in at least three (3) of the following commercial cannabis activities: cultivation, manufacturing, distribution, and retail sale, but all must be at the same licensed premises.



Except for Laboratories and Cannabis Event Organizers, facilitators need not be licensed by the Bureau of Cannabis Control. Facilitators include Landlords, who must consent to the use of premises for cannabis, Investors, Lenders, Bankers, Security Services, Attorneys, Accountants, Real Estate Agents, Insurance Agents (Bonding, Casualty, Liability), Labor Union representatives (CA requires a labor peace agreement for 20 or more employees), Data processing, including track and trace systems and technical support, Advertising and Promotion, Cannabis Event Organizers, Electricians, Plumbers, Odor Suppression technicians, suppliers of cultivation and processing equipment, suppliers of packaging products, waste management operators and Testing Laboratories, which must be accredited and licensed to test for cannabinoids; heavy metals; microbial impurities; mycotoxins; residual pesticides; residual solvents and processing chemicals; and if tested, terpenoids. Trade associations, patient’s advocacy and political action organizations, as well as media outlets sustain the industry.




California Bureau of Cannabis Control, the primary licensing and enforcement agency, California Department of Food and Agriculture (for cultivation), Department of Public Health (for manufacturing, packaging and labeling) California Water Board, Fish and Wildlife, the Bureau of Pesticides, and the Department of Tax and Fee Administration, as well as city and county regulatory and enforcement agencies.





Medical users are still protected by Proposition 215. However, the regulatory structure is now the same as for adult use. Proposition 64, the Adult Use of Marijuana Act made it legal for any adult 21 or over to: Possess, process, transport, purchase, obtain, or give away to persons 21 or older, not more than one ounce of cannabis or 8 grams of concentrated cannabis [HSC 11362.1(a)(1) and (2)] and to

cultivate, possess, plant, harvest, dry or process not more than six live plants and possess the produce of the plants [HSC 11362.1(a)(3) Provided that (a) Any cannabis in excess of one ounce is stored in the person’s private residential property, in a locked space, and not visible from a public place and (b) No more than six plants are planted at any one residence at one time. Furthermore, local governments may impose reasonable restrictions on cultivation, but may not forbid cultivation indoors in a residence or accessory structure that is fully enclosed and secure. Local governments are free to prohibit outdoor cultivation altogether until such time as adult use is made legal under federal law. (HSC 11362.2(b)). Violation of restrictions on personal use cultivation is a $250 infraction for six plants or less [HSC 11362.4(e)].



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