California Marijuana Law for Marijuana Cannabis Business
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California Cannabis Licenses and Tax Information
The following California Cannabis Licenses are established under Assembly Bill 266,
Business and Professions Code 19300.7 and Senate Bill 643(19331(g) and 19332):
[AB 266 (B&P code 19300.7) SB 643(19331(g) and 19332)]
Cannabis License 1A – Cultivation: Specialty Outdoor – up to 5,000 square feet of
canopy, or up to 50 non-contiguous plants.
Cannabis License 1B – Cultivation: Specialty mixed light, using only artificial
lighting.
Cannabis License 1C – Specialty Cottage, for cultivation using combined of natural
and artificial lighting at a maximum threshold to be determined by the licensing
authority, of 2,500 square feet or less of total canopy size for mixed-light cultivation,
up to 25 mature plants for outdoor cultivation, or 500 square feet or less of total
canopy size for indoor cultivation, on one property.
Cannabis License 2 – Cultivation: Outdoor up to to 5000 square feet, using a
combined of artificial and natural lighting.
Cannabis License 2A – Cultivation: Indoor 5001 to 10,000 square feet
Cannabis License 3 – Cultivation: Outdoor 10,001 square feet to 1 Acre
Cannabis License 3A – Cultivation: Indoor 10,001 to 22,000 square feet
Cannabis License Type 3B – Cultivation; Mixed-light 10,001 – 22,000 square feet
Cannabis License Type 4 – Cultivation; Nursery
Cannabis License Type 6 – Manufacturer 1 for products not using volatile solvents.
Cannabis License Type 7 – Manufacturer 2 for products using volatile solvents.
Cannabis License Type 8 – Testing
Cannabis License Type 10 – Dispensary, General
Cannabis License Type 10A – Dispensary, No more than three retail sites
Cannabis License Type 11 – Distribution
Cannabis License Type 12 – Transporter
California Cannabis Cultivation Size Limits: The maximum allowable size is 1-
acre (43,560 square feet) outdoors (Type 3) or 22,000 square feet indoors (Type 3A
and 3B licenses). The Department of Food and Agriculture is directed to limit the
number of Type 3, 3A and 3B licenses Assembly Bill 243, 19332(g).
California Cannabis Vertical License Integration: There are complex restrictions
to stop vertical integration (Assembly Bill 266, 19328). In general, licensees can
only hold licenses in up to two different categories cannabis licenses. Small
cultivation licensee Types 1 -2 may hold manufacturing or Type 10A retail licenses
(limited to three dispensaries). It appears as though Types 3-4 licensees cannot apply
for manufacturing licenses at all. Type 10A licensees can apply for both
manufacturing and cultivation cannabis licenses, provided their entire cultivation
area does not exceed 4 acres. In addition, facilities in jurisdictions that require or
permit cultivation, manufacture and distribution to be integrated as of July 1, 2015
may continue to operate that way until Jan 1, 2026.
CALIFORNIA CANNABIS DISTRIBUTORS REQUIRED:
Type 11 distributors are a new kind of entity that has been formulated to control the flow
of cannabis. All cannabis cultivation and cannabis manufacturing cannabis licensees
are required to send their merchandises to a Type 11 licensees for quality insurance
and inspection before passing them to the next stage of production or retailing. The
Type 11 licensees in turn submit the product to a Type 8 cannabis laboratory for
batch testing and certification. Afterwards, the sample returns to the Type 11
distributors for last inspection and execution of the contract between the cultivator
and manufacturer or manufacturer and retailer. The Type 11 distributors charge a
fee that covers the testing plus any applicable taxes, the act doesnot impose any new
taxes, but anticipates that could happen soon Assembly Bill 266, 19326)
Type 11 distributors and Type 8 testing facilities can't hold any other kind of
licenses (however, licensees may have their own labs for in-house testing).
CALIFORNIA CANNABIS LOCAL PERMITS REQUIRED
No individual shall participate in commercial activity without BOTH a state license and a license,
permit, or other authorization from their local government. Assembly Bill 266,
19320(a); Assembly Bill 243, 11362.777 (b).
CALIFORNIA CANNABIS LAWFUL ACTS: Activity by licensees who are permitted
by both a state license and local government are legal and protected from arrest,
prosecution, or other legal sanctions Assembly Bill 266, 19317.
CALIFORNIA CANNABIS GRANDFATHERING Facilities previously operating in
compliance with local ordinances and other laws on or before Jan 1, 2018 can carry
on to work until such time as their license is approved or denied. Assembly Bill 266,
19321(c). Facilities in operation before Jan 1, 2016 shall receive priority. Los
Angeles may in any case continue to prosecute violations of Measure D.
CALIFORNIA CANNABIS APPLICANT QUALIFICATIONS Senate Bill 643, 19322:
Applicants must provide proof of local approval and evidence of legal right to
occupy proposed location. Applicants shall submit fingerprints for Department Of
Justice background check. Cultivation licensees must declare selves agricultural
employers as defined by Alatore-Zenovich- Dunlap-Berman Agricultural Labor
Relations Act.
Licensing authority may reject application if the applicant has been convicted of an
offense substantially related to qualifications, including any felony controlled
substance offensive activity violent or serious felonies, or felonies involving fraud,
deceit or embezzlement, or any sanctions by a local licensing authority in the past
three years Senate Bill 643, 19323(a) 5.