Starting a cannabis business
What cannabis businesses you can start inCalifornia?
Cannabis Business CaliforniaLicensing
On November 16, 2017,California published the long awaited rules and regulations to implement voterapproved Proposition 64, the Adult Use of Cannabis Act of 2016, which legalizedadult use of cannabis in the State of California. The California Legislaturepassed and the Governor signed into law the Medicinal and Adult-Use CannabisRegulation and Safety Act (MAUCRSA), which creates the general framework forthe regulation of both commercial medicinal and adult-use (recreational)cannabis.
On January 1, 2018, thestate began issuing licenses for commercial cannabis activity and the state hasissued more than 8,400 licenses to cannabis-related businesses in 2018.
Where to apply?
There are three different state agencies thatare tasked with issuing licenses to cannabis businesses and several moreagencies that will assist in the process.
· Cultivation will be regulated by the Department of Food andAgriculture
· Manufacturing will be regulated by the Department of PublicHealth
· Testing, Distribution, Retail and Micro-business will beregulated by the Bureau of Cannabis Control
· cannabis dispensary business
· cannabis extraction business
· starting a cannabis business
· how to start a cannabis business
· cannabis business California
· How much does it cost to open a dispensary
· Commercial cannabis cultivation
· Commercial cannabis extraction
· Cannabis business plan template
License Categories: M(Medicinal) or A (Adult -Use)
CannabisCultivation Licenses
The California Department of Food and Agriculture (CDFA) isauthorized to issue the following Typesof Cannabis Cultivation Licenses:
(a) Type 1C SpecialtyCottage:
(1) “Specialty Cottage Outdoor” is an outdoor cultivation sitewith up to 25 mature plants.
(2) “Specialty Cottage Indoor” is an indoor cultivation site with 500 squarefeet or less of total canopy.
(3) “Specialty Cottage Mixed-Light Tier 1 and 2” is a mixed-light cultivationsite with 2,500 square feet or less of total canopy.
(b) Specialty:
Type 1 “SpecialtyOutdoor” is an outdoor cultivation site with less than or equal to 5,000 squarefeet of total canopy, or up to 50 mature plants on noncontiguous plots.
Type 1A “SpecialtyIndoor” is an indoor cultivation site between 501 and 5,000 square feet oftotal canopy.
Type 1B “SpecialtyMixed-Light Tier 1 and 2” is a mixed-light cultivation site between 2,501 and5,000 square feet of total canopy.
(c) Small:
Type 2 “SmallOutdoor” is an outdoor cultivation site between 5,001 and 10,000 square feet oftotal canopy.
Type 2A “SmallIndoor” is an indoor cultivation site between 5,001 and 10,000 square feet oftotal canopy.
Type 2B “SmallMixed-Light Tier 1 and 2” is a mixed-light cultivation site between 5,001 and10,000 square feet of total canopy.
(d) Medium:
Type 3 “MediumOutdoor” is an outdoor cultivation site between 10,001 square feet and one acreof total canopy.
Type 3A “MediumIndoor” is an indoor cultivation site between 10,001 and 22,000 square feet oftotal canopy.
Type 3B “MediumMixed-Light Tier 1 and 2” is a mixed-light cultivation site between 10,001 and22,000 square feet of total canopy.
Type 4 “Nursery”is a cultivation site that conducts the cultivation of cannabis solely as anursery.
“Processor” is a cultivation site that conducts only trimming, drying, curing,grading, packaging, or labeling of cannabis and non-manufactured cannabisproducts.
Manufacturinglicenses
· Commercialcannabis cultivation
· Commercial cannabis extraction
· cannabis dispensary business
Manufacturing licenses areseparated into two categories based upon the type of solvent used. Like Type 3licenses, the Department of Public Health (DPH) will limit the number oflicenses for manufacturers who use volatile solvents (Type 7).
Type 6 – Manufacturer 1
Manufacturing usingnon-volatile solvents.
Type 7 – Manufacturer 2
Manufacturing usingvolatile solvents.
Testing Licenses
Type 8 – Testing
Testing licenses aredesignated Type 8. The DPH is responsible for ensuring that all cannabisis tested prior to delivery to dispensaries or other businesses, and willspecify how such testing will be conducted. Type 8 license holders must testfor THC, cannabinoids, contaminants, microbiological impurities, among othercompounds listed in Business & Professions Code§ 19344.
Retailerlicenses
Retailer (Type 10)
Non-Storefront Retailer (Type9)
Distributionlicenses
Type 11 – Distribution
Distribution licenses aredesignated Type 11. All cultivation (Types 1-4) and manufacturinglicensees (Types 6-7) are required to send their products to a Type 11 licenseewhere their cannabis products will be inspected for quality assurance beforethe products pass to the next stage of manufacturing or retail. Type 11licensees must also send the cannabis products to a Type 8 laboratory for batchtesting and certification.
Distributor transport only(Type 13): Allows a licensee to transport cannabis goodsbetween licensed cultivators, manufacturers, and distributors. Alicensee may not transport cannabis goods to a licensed retailer and maynot engage in any other distributor activities.
Microbusinesslicenses
Type 12 – Micro-business
Allows a licenseeto engage in cultivation (on an area less than 10,000 square feet),manufacturing (Level 1 manufacturing, Type 6), distribution, and retailsale, or any combination of the four activities. Licensees will berequired to comply with all rules and regulations, which willinclude, where applicable, regulations adopted by theCalifornia Department of Food and Agriculture and the California Departmentof Public Health, governing the activities they are engaged in.
Cannabis Event Organizer (Type 14)
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