Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26110, Business and Professions Code.
§15302. Storage of Batches for Testing.
(a) A licensed distributor shall ensure that all batches of cannabis or cannabis products are stored separately and distinctly from other batches of cannabis or cannabis products on the licensed distributor’s premises.
(b) A licensed distributor shall ensure a label with the following information is physically attached to each container of each batch:
(1) The name, license number, and licensed premises address of the licensee who provided the batch;
(2) The date of entry into the licensed distributor’s storage area; (3) The unique identifiers and batch number, if any, associated with the batch; (4) A description of the cannabis or cannabis products with enough detail to easily identify the batch;
(5) The weight of or quantity of units in the batch; and (6) The best-by, sell-by, or expiration date of the batch, if any.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26110 and 26120, Business and Professions Code.
§15303. Packaging, Labeling, and Rolling.
(a) A licensed distributor may package, re-package, label, and re-label cannabis in the form of dried flower, including pre-rolls, for retail sale. All packages of cannabis in the form of dried flower, including pre-rolls, shall comply with the requirements in chapter 11 of this division.
(b) A licensed distributor shall not process cannabis, but may roll pre-rolls that consist exclusively of any combination of flower, shake, leaf, or kief. Pre-rolls shall be rolled prior to regulatory compliance testing.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 86 of 216 (c) Licensed distributors may label and re-label a package containing manufactured cannabis or cannabis products with the amount of cannabinoids and terpenoids based on regulatory compliance testing results.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013 and 26120, Business and Professions Code.
§15303.1. Net Weight of Dried Flower.
For purposes of this division, the net weight on any package of dried flower shall not be considered inaccurate if the actual weight is within plus or minus 3% of the labeled weight.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26120 and 26152, Business and Professions Code.
§15304. Testing Arrangements.
After taking physical possession of a batch of cannabis or cannabis products, the licensed distributor shall contact a licensed testing laboratory and arrange for a laboratory employee to come to the licensed distributor’s licensed premises to select a representative sample for laboratory testing.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26104 and 26110, Business and Professions Code.
§15305. Testing Sample.
(a) The licensed distributor shall ensure that the batch size from which the sample is taken meets the requirements of this division.
(b) A licensed distributor or an employee of the licensed distributor shall be physically present to observe the laboratory employee obtain the sample of cannabis or cannabis products for testing and shall ensure that the increments are taken from throughout the batch.
(c) The sampling shall be video-recorded with the batch number stated verbally or in writing on the video at the beginning of the video and a visible time and date indication on the video recording footage. The video recordings shall be maintained for 90 calendar days by the licensed distributor.
(d) After the sample has been selected, both the licensed distributor and the laboratory employee shall sign and date the chain of custody form pursuant to section 15706, attesting to the sample selection having occurred.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 87 of 216 (e) A licensed distributor shall not assist the laboratory employee nor touch the cannabis or cannabis products or the sampling equipment while the laboratory employee is obtaining the sample.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26104 and 26110, Business and Professions Code.
§15305.1. Re-sampling.
Once a sample has been obtained from a batch for regulatory compliance testing, a licensed distributor may not arrange for or allow another licensed testing laboratory to sample or re- sample the same batch for regulatory compliance testing, unless all of the requirements of section 15705 subsection (g) of this division are met.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
§15306. Laboratory Testing Results.
(a) A sample batch “passes” a laboratory test when the sample meets specifications in chapter 6 of this division.
(b) When a batch from a manufactured or harvest batch passes, the cannabis or cannabis products may be transported to one or more licensed retailers, licensed distributors, or licensed microbusinesses. A printed copy of the certificate of analysis for regulatory compliance testing shall accompany the batch and be provided to the licensee receiving the cannabis or cannabis products.
(c) A batch “fails” a laboratory test when the sample does not meet specifications in chapter 6 of this division.
(d) If a failed batch may be remediated pursuant to section 15727, a licensed distributor may transport or arrange for the transportation of the batch to a licensed manufacturer for remediation in accordance with the following:
(1) The licensed distributor shall ensure that a corrective action plan is submitted by a licensed manufacturer to the Department, or by a licensed microbusiness authorized to engage in manufacturing to the Department, within 30 calendar days of issuance of the certificate of analysis for regulatory compliance testing by the licensed testing laboratory. (2) The licensed distributor shall ensure that the licensed manufacturer or licensed microbusiness authorized to engage in manufacturing begins remediating the cannabis or cannabis products within 30 calendar days of receiving approval from the Department to remediate the cannabis or cannabis products.
(3) If the licensed distributor is unable to arrange for a licensed manufacturer or licensed microbusiness authorized to engage in manufacturing to remediate the cannabis or cannabis products within 30 calendar days of issuance of the certificate of analysis for regulatory compliance testing by the licensed testing laboratory, the licensed distributor shall destroy the cannabis or cannabis products immediately.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 88 of 216 (e) A licensed distributor shall destroy a batch that failed laboratory testing and cannot be remediated pursuant to section 15727 within 30 calendar days of issuance of the certificate of analysis for regulatory compliance testing by the licensed testing laboratory.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070, 26100, 26104 and 26110, Business and Professions Code.
§15307. Quality-Assurance Review.
When a licensed distributor receives a certificate of analysis for regulatory compliance testing from the licensed testing laboratory or upon transfer from another licensed distributor stating that the batch meets specifications required by law, the licensed distributor shall ensure the following before transporting the cannabis goods to one or more licensed retailers or licensed microbusinesses authorized to engage in retail sales:
(a) The certificate of analysis for regulatory compliance testing that the licensed distributor received from the licensed testing laboratory or another licensed distributor is the certificate of analysis that corresponds to the batch;
(b) The date on the certificate of analysis for the regulatory compliance testing is less than 12 months old;
(c) The label on the cannabis goods is consistent with the certificate of analysis for regulatory compliance testing regarding cannabinoid content required to be listed by law as follows:
(1) If the cannabis goods are labeled with the content for cannabinoids, terpenoids, Total THC, and/or Total CBD prior to receiving the certificate of analysis for regulatory compliance testing, the licensed distributor shall ensure that the labeled amounts are accurate in accordance with section 15307.1, and
(2) If the cannabis goods are not labeled with the content for cannabinoids, terpenoids, Total THC, and/or Total CBD prior to receiving the certificate of analysis for regulatory compliance testing, the licensed distributor shall label the cannabis goods with the amounts listed on the certificate of analysis pursuant to section 15303; (d) The packaging and labeling of the cannabis goods complies with Business and Professions Code section 26120 and this division, except cannabis goods are not required to be labeled or otherwise identified as medicinal products prior to retail sale unless the cannabis goods must be labeled as such pursuant to this division; (e) The cannabis goods have not exceeded their expiration or sell-by date if one is provided;
(f) The weight or count of the batch comports with that in the track and trace system. A licensed distributor shall use scales as required by this division; and (g) All events prior to receipt of the certificate of analysis for regulatory compliance testing have been entered into the track and trace system.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070, 26110 and 26120, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 89 of 216 §15307.1. Quality-Assurance Review for Labeling Cannabinoids and Terpenoids. (a) For purposes of this division, any one cannabinoid, Total THC, and/or Total CBD claimed to be present on a label shall not be considered inaccurate if the difference in percentage on the certificate of analysis is plus or minus 10.0%. (b) For purposes of this division, the terpenoid testing results on the label of any one terpenoid claimed to be present shall not be considered inaccurate if the difference in percentage on the certificate of analysis is plus or minus 10.0%. (c) For purposes of this section, the difference in percent shall be calculated using the following equation:
Difference in percent = │(laboratory measurement – label claim) │/ (label claim) x 100% For purposes of this section, Total THC and Total CBD shall have the same meaning as defined in Chapter 6 of this division.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100 and 26110, Business and Professions Code.
§15307.2. Licensed Distributor to Licensed Distributor Transfers.
Cannabis goods, packaged as they will be sold at retail, that have undergone and passed regulatory compliance testing and have an accompanying certificate of analysis may be transferred to one or more licensed distributors. However, cannabis goods that have not been transported to retail within 12 months of the date on the certificate of analysis must be destroyed or retested by the licensed distributor in possession of the cannabis goods.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26110, Business and Professions Code.
§15308. Insurance Requirements.
(a) A distributor licensee shall at all times carry and maintain commercial general liability insurance in the aggregate in an amount no less than $2,000,000 and in an amount no less than $1,000,000 for each loss.
(b) A distributor licensee shall maintain the insurance required in subsection (a) from an insurance company that is:
(1) A non-admitted insurer that meets the requirements of Insurance Code section 1765.1 or 1765.2, and the insurance is placed pursuant to Insurance Code section 1763 and through a surplus line broker licensed under Insurance Code section 1765; (2) An insurer qualified to do business in California by the Secretary of State and authorized by the Insurance Commissioner to write the liability and property classes of insurance as defined by Insurance Code sections 102, 103, 107, 108, 114, and 120; or (3) A registered risk retention group compliant with the California Risk Retention Act of 1991. (See Insurance Code sections 125-140.)
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 90 of 216 (c) Admitted insurers and risk retention groups must show proof of capitalization in the amount of at least $10,000,000.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26051.5 and 26070, Business and Professions Code.
§15309. Inventory Accounting.
(a) A licensed distributor shall be able to account for all inventory and provide that information to the Department upon request.
(b) To account for inventory, a licensed distributor shall ensure all batches of cannabis or cannabis products are stored in accordance with section 15302 and shall be able to provide the Department with the status of the batch as follows:
(1) The batch is being held in storage for another licensee; (2) The batch is awaiting sampling for regulatory compliance testing; (3) The batch has been sampled and is awaiting testing results; (4) The batch has passed testing;
(5) The batch has failed testing and is awaiting approval for remediation; (6) The batch has failed testing and is awaiting destruction; and (7) The batch is being stored or held for any other lawful purpose under the Act or this division.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26160, Business and Professions Code.
§ 15311. Requirements for the Transportation of Cannabis Goods.
The following requirements apply when transporting cannabis goods between licensees or licensed premises:
(a) Transportation shall only be conducted by persons holding a distributor license under the Act, or employees of those persons. All vehicles and trailers used for transportation shall be owned or leased, in accordance with the Vehicle Code, by the licensee. (b) Prior to transporting any cannabis goods, the licensed distributor shall have a completed sales invoice or receipt that meets the requirements of Business and Professions Code section 26161. The licensed distributor shall only transport cannabis goods listed on the sales invoice or receipt. The sales invoice or receipt may not be altered or changed once transport begins.
(c) A licensed distributor employee shall always carry a copy of the distributor’s license and a copy of the QR Code Certificate issued by the Department while engaging in the transportation of cannabis goods. The QR Code Certificate shall comply with the requirements of section 15039, subsection (d) of this division. (d) All vehicles transporting cannabis goods for hire shall be required to have a motor Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 91 of 216 carrier permit pursuant to Chapter 2 (commencing with Section 34620) of Division 14.85 of the Vehicle Code.
(e) Transportation by means of aircraft, watercraft, drone, rail, human powered vehicle, or unmanned vehicle is prohibited.
(f) Cannabis goods shall only be transported inside of a vehicle or trailer and shall not be visible or identifiable from outside of the vehicle or trailer. (g) Cannabis goods shall be locked in a fully enclosed box, container, or cage that is secured to the inside of the vehicle or trailer. No portion of the enclosed box, container, or cage shall be comprised of any part of the body of the vehicle or trailer. For the purposes of this section, the inside of the vehicle includes the trunk. (h) While left unattended, vehicles and trailers shall be locked and secured. (i) A licensed distributor shall not leave a vehicle or trailer containing cannabis goods unattended in a residential area or parked overnight in a residential area. (j) At a minimum, a licensed distributor shall have a vehicle alarm system on all transport vehicles and trailers. Motion detectors, pressure switches, duress, panic, and hold-up alarms may also be used.
(k) Packages or containers holding cannabis goods shall not be tampered with, or opened, during transport.
(l) A licensed distributor transporting cannabis goods shall only travel between licensees shipping or receiving cannabis goods and its own licensed premises when engaged in the transportation of cannabis goods. The licensed distributor may transport multiple shipments of cannabis goods at once in accordance with applicable laws. A licensed distributor shall not deviate from the travel requirements described in this section, except for necessary rest, fuel, or vehicle repair stops.
(m) Under no circumstances may non-cannabis goods, except for cannabis accessories and licensees’ branded merchandise or promotional materials, be transported with cannabis goods.
(n) Vehicles and trailers transporting cannabis goods are subject to inspection by the Department at any licensed premises or during transport at any time. (o) Notwithstanding subsections (e) through (g) of this section, if it is not operationally feasible to transport cannabis goods inside of a vehicle or trailer because the licensed premises that the cannabis goods will be transported from and the licensed premises that will be receiving the cannabis goods are located within the same building or on the same parcel of land, the cannabis goods may be transported by foot, hand truck, fork lift, or other similar means. A shipping manifest that complies with this division is required when transporting cannabis goods pursuant to this subsection.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 92 of 216 (p) Notwithstanding subsection (e) of this section, transportation of cannabis goods may be conducted via waterway to licensees located on Catalina Island. The provisions of this section and other sections regarding vehicle requirements also apply to vessels used to transport cannabis goods via waterway pursuant to this section.
Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
§15312. Required Transport Vehicle Information.
(a) Upon request, the licensed distributor shall provide the Department with a copy of the certificate of ownership or registration card issued by the California Department of Motor Vehicles, the year, make, model, license plate number, and Vehicle Identification Number in writing, and proof of insurance for any vehicle or trailer used to transport cannabis or cannabis products.
Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
§15313. Transport Personnel Requirements.
(a) No person under the age of 21 years old shall be in a commercial vehicle or trailer transporting cannabis or cannabis products; and
(b) Only a licensee, an employee of the licensed distributor, or security personnel who meets the requirements of section 15045 of this division shall be in a vehicle while transporting cannabis or cannabis products.
Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
§15314. Shipping Manifest.
(a) Prior to transporting cannabis or cannabis products, a licensed distributor shall generate a shipping manifest through the track and trace system for the following activities:
(1) Testing and sampling;
(2) Sale of cannabis or cannabis products to a licensee; (3) Destruction or disposal of cannabis or cannabis products; and (4) Any other activity, as required pursuant to this division, or by the Department. (b) The licensed distributor shall transmit the shipping manifest to the Department and the licensee that will receive the cannabis or cannabis products prior to transporting the cannabis or cannabis products.
(c) The licensed distributor shall ensure and verify that the cannabis or cannabis products being taken into possession for transport at the originating licensed premises are as described and accurately reflected in the shipping manifest. For purposes of this Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 93 of 216 section, the licensed distributor may verify that the cannabis or cannabis products are accurately reflected in the shipping manifest by confirming that the number of boxes of cannabis or cannabis products, type of cannabis or cannabis products, weight and/or units of cannabis or cannabis products matches the label on the boxes containing the cannabis or cannabis products.
(1) The licensed distributor shall not take into possession or transport:
(A) Any cannabis or cannabis products that are not on the shipping manifest; or (B) Any cannabis or cannabis products that are less than or greater than the amount reflected on the shipping manifest.
(2) The licensed distributor is responsible for any discrepancies between the shipping manifest and the cannabis or cannabis products in its possession during transport, and subject to any enforcement or disciplinary action related to such discrepancy. (3) A licensed distributor shall not void or change a shipping manifest after departing from the originating licensed premises.
(d) A shipping manifest shall accompany every transport of cannabis or cannabis products.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26067 and 26070, Business and Professions Code.
§15315. Distributor Transport Only License.
(a) A licensed distributor transport only licensee may transport cannabis or cannabis products between licensees; however, they shall not transport any cannabis or cannabis products except for immature cannabis plants, seeds, and trade samples to a licensed retailer or licensed microbusiness authorized to engage in retail sales. (b) A complete application for a distributor transport only license shall include all the information required in an application for a distributor license. (c) The licensing fee for a distributor transport only license will be based in part upon whether the licensee intends to transport only cannabis or cannabis products that the licensee has cultivated or manufactured (self-distribution), or whether the licensee intends to transport cannabis or cannabis products cultivated or manufactured by other licensees.
(d) A distributor transport only licensee shall comply with all of the requirements for a holder of a distributor license, except for those related to quality assurance and testing. (e) A distributor transport only licensee shall not hold title to any cannabis or cannabis products unless the licensee also holds a Department-issued cultivation, manufacturing, retailer, or microbusiness license.
(f) Holding a distributor transport only license shall not authorize a licensee to:
(1) Engage in the delivery of cannabis or cannabis products as defined in Business and Professions Code section 26001(o);
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 94 of 216 (2) Engage in the wholesale, destruction, packaging, labeling, or storing of cannabis or cannabis products; or
(3) Arrange for the testing of cannabis or cannabis products by a testing laboratory. (g) A distributor transport only licensee who is licensed to engage in self-distribution and whose licensed premises will be on the same property as their licensed cultivation or licensed manufacturing premises shall comply with the security provisions contained in chapter 1, article 5 of this division that are applicable to their licensed cultivation or licensed manufacturing premises.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26070, Business and Professions Code.
Chapter 3. Retailers
§15400. Access to Retailer Premises.
(a) Access to the licensed premises of a retailer with only an A-designation shall be limited to individuals who are at least 21 years of age. (b) Access to the licensed premises of a retailer with only an M-designation shall be limited to individuals who are at least 18 years of age and have a valid physician’s recommendation for medicinal cannabis, and individuals who are at least 21 years of age.
(c) Access to the licensed premises of a retailer with both an A- designation and an Mdesignation may include persons identified in subsections (a) and (b) of this section.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26140, Business and Professions Code.
§15402. Customer Access to the Retail Area.
(a) Individuals shall be granted access to the retail area to purchase cannabis goods only after the retailer or an employee of the retailer has confirmed the individual’s age and identity pursuant to section 15404 of this division.
(b) The licensed retailer or at least one employee shall be physically present in the retail area at all times when individuals who are not employees of the licensed retailer are in the retail area.
(c) All sales of cannabis goods must take place within the retail area of the retailer’s licensed premises, except for cannabis goods sold through delivery, or a drive-in or drive-through window as authorized by section 15025(e) of this division.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26140, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 95 of 216 §15403. Hours of Operation.
A licensed retailer shall sell and deliver cannabis goods only between the hours of 6:00 a.m. Pacific Time and 10:00 p.m. Pacific Time.
Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
§15403.1. Requirements While Not Open for Business.
At any time the licensed premises is not open for retail sales, a licensed retailer shall ensure that:
(a) The licensed premises is securely locked with commercial-grade, nonresidential door locks as required in section 15046 of this division;
(b) The licensed premises is equipped with an active alarm system pursuant to section 15047 of this division, which shall be activated when the licensed retailer or its employees are not on the licensed premises; and
(c) Only employees of the licensee and other authorized individuals are allowed access to the licensed premises. For the purposes of this section, authorized individuals include individuals employed by the licensee as well as any outside vendors, contractors, or other individuals conducting business that requires access to the licensed premises.
Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
§15404. Retail Customers.
(a) A licensed retailer shall only sell adult-use cannabis goods to individuals who are at least 21 years of age after confirming the customer’s age and identity by inspecting a valid form of identification provided by the customer as required by subsection (c) of this section.
(b) A licensed retailer shall only sell medicinal cannabis goods to individuals who are at least 18 years of age and possesses a valid physician’s recommendation after confirming the customer’s age, identity, and physician’s recommendation as required by subsection (c) of this section.
(c) Acceptable forms of identification include the following:
(1) A document issued by a federal, state, county, or municipal government, or a political subdivision or agency thereof, including, but not limited to, a valid motor vehicle operator's license, that contains the name, date of birth, height, gender, and photo of the person;
(2) A valid identification card issued to a member of the Armed Forces that includes the person’s name, date of birth, and photo; or
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 96 of 216 (3) A valid passport issued by the United States or by a foreign government.
Authority: Section 26013, Business and Professions Code. Reference: Section 26140, Business and Professions Code.
§15405. Cannabis Goods Display.
(a) Cannabis goods for inspection and sale shall only be displayed in the retail area. (b) Cannabis goods may be removed from their packaging and placed in containers to allow for customer inspection. The containers shall not be readily accessible to customers without assistance of retailer personnel. A container must be provided to the customer by the licensed retailer or its employees, who shall remain with the customer at all times that the container is being inspected by the customer. (c) Cannabis goods removed from their packaging for display shall not be sold or consumed when the cannabis goods are no longer used for display.
Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
§15406. Cannabis Goods for Sale.
A licensed retailer shall not make any cannabis goods available for sale or delivery to a customer unless:
(a) The cannabis goods were received by the licensed retailer from a licensed distributor or licensed microbusiness authorized to engage in distribution; (b) The licensed retailer has verified that the cannabis goods have not exceeded their best-by, sell-by, or expiration date if one is provided; (c) In the case of manufactured cannabis products, the product complies with all requirements of Business and Professions Code section 26130; (d) The cannabis goods have undergone laboratory testing as required by the Act and chapter 6 of this division;
(e) The batch number, if any, is labeled on the package of cannabis goods and matches the batch number on the corresponding certificate of analysis for regulatory compliance testing;
(f) The packaging and labeling of the cannabis goods complies with Business and Professions Code section 26120 and this division; and
(g) The cannabis goods comply with all applicable requirements found in the Act and this division.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26120, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 97 of 216 §15407. Sale of Non-Cannabis Goods.
In addition to cannabis goods, a licensed retailer may sell only cannabis accessories and the branded merchandise of any licensee. Licensed retailers may provide customers with promotional materials.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070, 26151 and 26152, Business and Professions Code.
§15408. Sale of Live Plants and Seeds.
(a) A licensed retailer shall only sell live, immature cannabis plants and cannabis seeds if all of the following requirements are met:
(1) The plant is not flowering and is shorter and narrower than 18 inches; and (2) The plant or seed originated from a licensed nursery that holds a valid license from the Department or a licensed microbusiness authorized to engage in cultivation. (b) A licensed retailer shall not apply or use any pesticide on live plants. A licensed retailer shall not cause any pesticide to be applied or used on live plants.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26100, Business and Professions Code.
§15409. Daily Limits.
(a) A licensed retailer shall not sell more than the following amounts to a single adult-use cannabis customer in a single day:
(1) 28.5 grams of non-concentrated cannabis.
(2) 8 grams of cannabis concentrate as defined in Business and Professions Code section 26001, including cannabis concentrate contained in cannabis products. (3) 6 immature cannabis plants.
(b) A licensed retailer shall not sell more than the following amounts to a single medicinal cannabis patient, or to a patient’s primary caregiver purchasing medicinal cannabis on behalf of the patient, in a single day:
(1) 8 ounces of medicinal cannabis in the form of dried mature flowers or the plant conversion as provided in Health and Safety Code section 11362.77. (2) 12 immature cannabis plants.
(c) Notwithstanding subsection (b) of this section, if a medicinal cannabis patient’s valid physician’s recommendation contains a different amount than the limits listed in this section, the medicinal cannabis patient may purchase an amount of medicinal cannabis consistent with the patient’s needs as recommended by a physician and documented in the physician’s recommendation.
(d) The limits provided in subsection (a) and subsection (b) of this section shall not be combined to allow a customer to purchase cannabis goods in excess of any of the limits Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 98 of 216 provided in this section.
(e) For the purposes of this section, a licensed retailer shall be responsible for determining that the amount of cannabis concentrates found in manufactured cannabis products sold to customers comply with the requirements of this section.
Authority: Section 26013, Business and Professions Code. Reference: Section 26012, Business and Professions Code; and Sections 11362.1 and 11362.77, Health and Safety Code.
§15410. Customer Return of Cannabis Goods.
(a) For the purposes of this section, “customer return” means a customer’s return of cannabis goods that were purchased from a licensed retailer, back to the licensed retailer from whom the cannabis goods were purchased.
(b) A licensed retailer may accept customer returns of cannabis goods that were previously sold to a customer.
(c) A licensed retailer shall not resell cannabis goods that have been returned. (d) A licensed retailer shall treat any cannabis goods abandoned on the licensed retailer premises as a customer return.
(e) Defective manufactured cannabis products returned by customers to a licensed retailer may be destroyed or returned to the licensed distributor from whom the cannabis goods were obtained.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26011.5, 26012 and 26070, Business and Professions Code.
§15411. Free Cannabis Goods.
(a) A licensed retailer shall not provide free cannabis goods to any person. A licensed retailer shall not allow individuals who are not employed by the licensed retailer to provide free cannabis goods to any person on the licensed premises. (b) Notwithstanding subsection (a), in order to provide access to medicinal cannabis patients who have difficulty accessing medicinal cannabis goods, a licensee who holds an M-Retailer license, an M-Retailer Non-storefront license, or an M-Microbusiness license that is authorized for retail sales may provide free medicinal cannabis goods if the following criteria are met:
(1) Free cannabis goods are provided only to a medicinal cannabis patient or primary caregiver for the patient in possession of an identification card issued under section 11362.71 of the Health and Safety Code.
(2) The cannabis goods comply with all applicable laboratory testing requirements under this division.
(3) Prior to being provided to the patient or primary caregiver, the cannabis goods have been properly recorded in the track and trace system as belonging to the licensed Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 99 of 216 retailer.
(4) The cannabis goods shall not leave the licensed premises unless placed in an opaque package as required for purchased cannabis goods under Business and Professions Code section 26070.1. The cannabis goods must comply with all packaging and labeling requirements in this division applicable to cannabis goods for sale by a licensed retailer.
(5) The cannabis goods shall be applied toward the daily purchase limit for a medicinal cannabis customer pursuant to section 15409.
(6) The event shall be properly recorded in the licensed retailer’s inventory records and the track and trace system.
(c) In addition to the provision of free cannabis goods in subsection (b), a licensee may donate cannabis goods and the use of equipment in compliance with any compassionate use, equity, or other similar program administered by a local jurisdiction. The licensee shall ensure that all cannabis goods provided pursuant to this subsection comply with subsections (b)(2) and (b)(6).
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26153 and 26160, Business and Professions Code.
§15412. Prohibition on Packaging and Labeling by a Retailer. (a) A licensed retailer shall not accept, possess, or sell cannabis goods that are not packaged as they will be sold at final sale, in compliance with this division. (b) A licensed retailer shall not package or label cannabis goods. (c) Notwithstanding subsection (b) of this section, a licensed retailer may place a barcode or similar sticker on the packaging of cannabis goods to be used in inventory tracking. A barcode or similar sticker placed on the packaging of a cannabis goods shall not obscure any labels required by the Act or this division.
Authority: Section 26013, Business and Professions Code. Reference: Section 26120, Business and Professions Code.
§15413. Cannabis Goods Packaging and Exit Packaging.
(a) All cannabis goods sold by a licensed retailer shall be in compliance with the packaging requirements in chapter 11 of this division.
(b) A package containing cannabis goods shall be tamper-evident and child-resistant. If the package contains multiple servings, the package must also be resealable. (c) All cannabis goods purchased by a customer shall not leave the licensed retailer’s premises unless the goods are placed in an opaque exit package.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 100 of 216 (d) Immature plants and seeds sold by a licensed retailer are not required to be placed in resealable, tamper-evident, child-resistant packaging.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070.1 and 26120, Business and Professions Code.
§15414. Non-Storefront Retailer.
(a) A non-storefront retailer licensee shall be authorized to conduct retail sales exclusively by delivery as defined in Business and Professions Code section 26001(o). (b) A complete application for a non-storefront retailer license shall include all the information required in an application for a retailer license. (c) A non-storefront retailer licensee shall comply with all the requirements applicable to retailer licensees, except for those provisions related to public access to the licensed premises and the retail area.
(d) The licensed premises of a non-storefront retailer licensee shall be closed to the public.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26070, Business and Professions Code.
§ 15415. Delivery Employees.
(a) All deliveries of cannabis goods shall be performed by a delivery employee who is directly employed by a licensed retailer.
(b) Each delivery employee of a licensed retailer shall be at least 21 years of age. (c) All deliveries of cannabis goods shall be made in person. A delivery of cannabis goods shall not be made through the use of an unmanned vehicle. (d) The process of delivery begins when the delivery employee leaves the retailer’s licensed premises with the cannabis goods for delivery. The process of delivering ends when the delivery employee returns to the retailer’s licensed premises after delivering the cannabis goods, or attempting to deliver cannabis goods, to the customer(s). During the process of delivery, the licensed retailer’s delivery employee may not engage in any activities except for cannabis goods delivery and necessary rest, fuel, or vehicle repair stops.
(e) A delivery employee of a licensed retailer shall, during deliveries, carry a copy of the retailer’s current license, a copy of the QR Code Certificate issued by the Department, which complies with section 15039, subsection (d) of this division, the employee’s government-issued identification, and an identification badge provided by the employer pursuant to section 15043 of this division. A delivery employee shall provide a copy of the retail license, a copy of the QR Code Certificate, and their employee identification badge to a delivery customer upon request.
(f) Prior to providing cannabis goods to a delivery customer, a delivery employee shall confirm the identity and age of the delivery customer as required by section 15404 of this Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 101 of 216 division and ensure that all cannabis goods sold comply with requirements of section 15413 of this division.
(g) A licensed retailer shall maintain an accurate list of the retailer’s delivery employees and shall provide the list to the Department upon request.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26090, Business and Professions Code.
§15415.1. Deliveries Facilitated by Technology Platforms. (a) A licensed retailer or licensed microbusiness shall not sell or otherwise transfer any cannabis goods to a customer through the use of an unlicensed third party, intermediary business, broker, or any other business or entity.
(b) Notwithstanding subsection (a) of this section, a licensed retailer or licensed microbusiness may contract with a service that provides a technology platform to facilitate the sale and delivery of cannabis goods, in accordance with all of the following:
(1) The licensed retailer or licensed microbusiness does not allow for delivery of cannabis goods by the technology platform service provider. (2) The licensed retailer or licensed microbusiness does not share in the profits of the sale of cannabis goods with the technology platform service provider, or otherwise provide for a percentage or portion of the cannabis goods sales to the technology platform service provider.
(3) The licensed retailer or licensed microbusiness shall not advertise or market cannabis goods in conjunction with the technology platform service provider, outside of the technology platform, and shall ensure that the technology platform service provider does not use the licensed retailer’s or licensed microbusiness’s license number or legal business name on any advertisement or marketing that primarily promotes the services of the technology platform.
(4) The licensed retailer or licensed microbusiness shall ensure the following information is provided to customers:
(A) Any cannabis goods advertised or offered for sale on or through the technology platform shall disclose, at a minimum, the licensed retailer’s or licensed microbusiness’s legal business name and license number.
(B) Customers placing an order for cannabis goods through the technology platform shall be able to easily identify the licensed retailer or licensed microbusiness that each cannabis good is being ordered or purchased from. This information shall be available to the customer prior to the customer placing an order or purchasing the cannabis goods. (5) All required sales invoices and receipts, including any receipts provided to the customer, shall disclose, at a minimum, the licensed retailer’s or licensed microbusiness’s legal business name and license number.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 102 of 216 (6) All other delivery, marketing, and advertising requirements under this division are complied with.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26001, 26070, 26090, 26151 and 26152, Business and Professions Code. §15416. Delivery to a Physical Address.
(a) A delivery employee may only deliver cannabis goods to a physical address in California.
(b) A delivery employee shall not leave the State of California while possessing cannabis goods.
(c) A delivery employee shall not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency.
This prohibition applies to land held in trust by the United States for a tribe or an individual tribal member unless the delivery is authorized by and consistent with applicable tribal law.
(d) A delivery employee may deliver to any jurisdiction within the State of California provided that such delivery is conducted in compliance with all delivery provisions of this division.
(e) A delivery employee shall not deliver cannabis goods to a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26090, Business and Professions Code.
§15417. Delivery Vehicle Requirements.
(a) A licensed retailer’s delivery employee, carrying cannabis goods for delivery, shall only travel in an enclosed motor vehicle. Any vehicle used in the delivery of cannabis goods shall be operated by a delivery employee of the licensee. A vehicle used in the delivery of cannabis goods shall not have any marking or other indications on the exterior of the vehicle that may indicate that the delivery employee is carrying cannabis goods for delivery. Only the licensee or an employee of the retailer licensee for whom delivery is being performed shall be in the delivery vehicle.
(b) While carrying cannabis goods for delivery, a licensed retailer’s delivery employee shall ensure the cannabis goods are not visible to the public. Cannabis goods shall be locked in a fully enclosed box, container, or cage that is secured on the inside of the vehicle. No portion of the enclosed box, container, or cage shall be comprised of any part of the body of the vehicle or trailer. For purposes of this section, the inside of the vehicle includes the trunk.
(c) A licensed retailer’s delivery employee shall not leave cannabis goods in an unattended motor vehicle unless the motor vehicle is locked and equipped with an active vehicle alarm system. Any cannabis goods left in an unattended vehicle must be stored Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 103 of 216 in a container as required in subsection (b) of this section. (d) A vehicle used for the delivery of cannabis goods shall be outfitted with a dedicated Global Positioning System (GPS) device for identifying the geographic location of the delivery vehicle and recording a history of all locations traveled to by the delivery employee while engaged in delivery. A dedicated GPS device must be owned by the licensee and used for delivery only. The device shall be either permanently or temporarily affixed to the delivery vehicle and shall remain active and inside of the delivery vehicle at all times during delivery. At all times, the licensed retailer shall be able to identify the geographic location of all delivery vehicles that are making deliveries for the licensed retailer and document the history of all locations traveled to by a delivery employee while engaged in delivery. A licensed retailer shall provide this information to the Department upon request. The history of all locations traveled to by a delivery employee while engaging in delivery shall be maintained by the licensee for a minimum of 90 days.
(e) Upon request, a licensed retailer shall provide the Department with information regarding any motor vehicle used for the delivery of cannabis goods, including the vehicle’s make, model, color, Vehicle Identification Number, license plate number and Department of Motor Vehicles registration information.
(f) Any motor vehicle used by a licensed retailer to deliver cannabis goods is subject to inspection by the Department. Vehicles used to deliver cannabis goods may be stopped and inspected by the Department at any licensed premises or during delivery.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26090, Business and Professions Code.
§15418. Cannabis Goods Carried During Delivery.
(a) A licensed retailer’s delivery employee shall not carry cannabis goods in the delivery vehicle with a value in excess of $5,000 at any time. The value of cannabis goods carried in the delivery vehicle for which a delivery order was not received and processed by the licensed retailer prior to the delivery employee departing from the licensed premises may not exceed $3,000.
(b) For the purposes of this section, the value of cannabis goods shall be determined using the current retail price of all cannabis goods carried by, or within the delivery vehicle of, the licensed retailer’s delivery employee.
(c) A delivery employee may only carry cannabis goods, cannabis accessories, branded merchandise of any licensee, or promotional materials in the delivery vehicle and may only perform deliveries for one licensed retailer at a time. A delivery employee must depart and return to the same licensed premises before taking possession of any cannabis goods from another licensee to perform deliveries. (d) A licensed retailer’s delivery employee shall not leave the licensed premises with cannabis goods without at least one delivery order that has already been received and processed by the licensed retailer.
(e) Before leaving the licensed premises, the licensed retailer’s delivery driver must have Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 104 of 216 a delivery inventory ledger of all cannabis goods provided to the licensed retailer’s delivery driver. For each cannabis good, the delivery inventory ledger shall include the type of good, the brand, the retail value, the track and trace identifier, and the weight, volume or other accurate measure of the cannabis good. All cannabis goods prepared for an order that was received and processed by the licensed retailer prior to the delivery driver’s departure from the licensed premises must be clearly identified on the inventory ledger. After each customer delivery, the delivery inventory ledger must be updated to reflect the current inventory in possession of the licensed retailer’s delivery driver.
Delivery inventory ledgers may be maintained electronically. (f) The licensed retailer’s delivery driver shall maintain a log that includes all stops from the time the licensed retailer’s delivery driver leaves the licensed premises to the time that the licensed retailer’s delivery driver returns to the licensed premises, and the reason for each stop. The log shall be turned in to the licensed retailer when the licensed retailer’s delivery driver returns to the licensed premises. The licensed retailer must maintain the log as a commercial cannabis activity record as required by this division.
The log may be maintained electronically.
(g) Prior to arrival at any delivery location, the licensed retailer must have received a delivery request from the customer and provided the delivery request receipt to the licensed retailer’s delivery driver electronically or in hard copy. The delivery request receipt provided to the licensed retailer’s delivery driver shall contain all of the information required in section 15420, except for the date and time the delivery was made, and the signature of the customer.
(h) Immediately upon request by the Department or any law enforcement officer, the licensed retailer’s delivery driver shall provide:
(1) All delivery inventory ledgers from the time the licensed retailer’s delivery driver left the licensed premises up to the time of the request;
(2) All delivery request receipts for cannabis goods carried by the driver, in the delivery vehicle, or any deliveries that have already been made to customers; and (3) The log of all stops from the time the licensed retailer’s delivery driver left the licensed premises up to the time of the request.
(i) If a licensed retailer’s delivery driver does not have any delivery requests to be performed for a 30-minute period, the licensed retailer’s delivery driver shall not make any additional deliveries and shall return to the licensed premises. Required meal breaks shall not count toward the 30-minute period.
(j) Upon returning to the licensed premises, all undelivered cannabis goods shall be returned to inventory and all necessary inventory and track and trace records shall be updated as appropriate that same day.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070, 26090 and 26160, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 105 of 216 §15419. Cannabis Consumption During Delivery.
A licensed retailer’s delivery employees shall not consume cannabis goods while delivering cannabis goods to customers.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26090, Business and Professions Code.
§15420. Delivery Request Receipt.
A licensed retailer shall prepare a hard copy or electronic delivery request receipt for each delivery of cannabis goods.
(a) The delivery request receipt shall contain the following:
(1) The legal business name and license number of the licensed retailer; (2) The first name and employee number of the licensed retailer’s delivery employee who delivered the order;
(3) The first name and employee number of the licensed retailer’s employee who prepared the order for delivery;
(4) The first name of the customer and a licensed retailer-assigned customer number for the person who requested the delivery;
(5) The date and time the delivery request was made;
(6) The delivery address;
(7) A detailed description of all cannabis goods requested for delivery. The description shall include the weight, volume, or any other accurate measure of the amount of all cannabis goods requested;
(8) The total amount paid for the delivery, including any taxes or fees, the cost of the cannabis goods, and any other charges related to the delivery; and (9) Upon delivery, the date and time the delivery was made, and the handwritten or electronic signature of the customer who received the delivery. (b) At the time of the delivery, the delivery employee of the retailer shall provide the customer who placed the order with a hard or electronic copy of the delivery request receipt. The delivery employee shall retain a hard or electronic copy of the signed delivery request receipt for the licensed retailer’s records. (c) For the purposes of this section, an employee number is a distinct number assigned by a licensed retailer to an employee that would allow the licensed retailer to identify the employee in documents or records using the employee number rather than the employee’s full name. A licensed retailer shall be able to identify the employee associated with each employee number upon request from the Department.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 106 of 216 (d) For the purposes of this section, a customer number is a distinct number assigned by a licensed retailer to a customer that would allow the licensed retailer to identify the customer in documents or records using the customer number rather than the customer’s full name. A licensed retailer shall be able to identify the customer associated with each customer number upon request from the Department.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070, 26090 and 26160, Business and Professions Code.
§15421. Delivery Route.
While making deliveries of cannabis goods, a licensed retailer’s delivery employee shall only travel from the retailer’s licensed premises to the delivery address; from one delivery address to another delivery address; or from a delivery address back to the retailer’s licensed premises. A delivery employee of a licensed retailer shall not deviate from the delivery path described in this section, except for necessary rest, fuel, or vehicle repair stops, or because road conditions make continued use of the route unsafe, impossible, or impracticable.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26090, Business and Professions Code.
§15422. Receiving Shipments of Inventory.
(a) A licensed retailer shall receive a shipment of cannabis goods only from a licensed distributor or licensed microbusiness authorized to engage in distribution. (b) A licensed retailer shall accept shipments of cannabis goods only between the hours of 6:00 a.m. Pacific Time and 10:00 p.m. Pacific Time.
(c) During business hours, shipments of cannabis goods shall not enter the licensed premises through an entrance or exit that is available for use by the public. (d) A licensed retailer whose licensed premises only has one entryway may be exempt from the requirements of subsection (c) of this section if the licensed retailer obtains authorization from the local jurisdiction explicitly authorizing this activity. The licensed retailer shall be required to provide this authorization to the Department upon request.
For this section to apply, the licensed premises must physically have only one entryway and cannot have any other entryways.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26070, Business and Professions Code.
§15423. Inventory Documentation.
A licensed retailer shall maintain an accurate record of its inventory. A licensed retailer shall provide the Department with the record of inventory immediately upon request. A licensed retailer shall keep a record of the following information for all cannabis goods the licensed retailer has in its inventory:
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 107 of 216 (a) A description of each item such that the cannabis goods can easily be identified; (b) An accurate measurement of the quantity of the item; (c) The date and time the cannabis goods were received by the licensed retailer; (d) The sell-by or expiration date provided on the package of cannabis goods, if any; (e) The name and license number of the licensed distributor or licensed microbusiness that transported the cannabis goods to the licensed retailer; and (f) The price the licensed retailer paid for the cannabis goods, including taxes, delivery costs, and any other costs.
Authority: Section 26013, Business and Professions Code. Reference: Section 26160, Business and Professions Code.
§15424. Inventory Reconciliation.
(a) A licensed retailer shall be able to account for all of its inventory. (b) In conducting an inventory reconciliation, a licensed retailer shall verify that the licensed retailer’s physical inventory is consistent with the licensed retailer’s records pertaining to inventory.
(c) The result of inventory reconciliation shall be retained in the licensed retailer’s records and shall be made available to the Department upon request. (d) If a licensed retailer identifies any evidence of theft, diversion, or loss, the licensed retailer shall notify the Department and law enforcement pursuant to section 15036 of this division.
(e) If a significant discrepancy as defined in section 15034 of this division is discovered between a licensed retailer’s physical inventory and the licensed retailer’s inventory records, the licensed retailer shall notify the Department and law enforcement pursuant to section 15036 of this division.
Authority: Section 26013, Business and Professions Code. Reference: Section 26160, Business and Professions Code.
§15427. Retailer Premises-to-Retailer Premises Transfer. (a) A licensee who holds multiple retail licenses may arrange for the transfer of cannabis goods from one licensed retail premises to another licensed retail premises if both retail licenses are held by the same sole proprietor or business entity. (b) Cannabis goods transferred to a licensed retail premises under subsection (a) of this section may be sold by the licensed retailer receiving the cannabis goods only if the cannabis goods comply with all requirements found in the Act and this division. (c) The transportation of cannabis goods under this section must comply with all requirements found within the Act and this division.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 108 of 216 (d) Any movement of cannabis goods under this section shall be properly entered into the track and trace system.
Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
Chapter 4. Microbusiness
§15500. Microbusiness.
(a) In order to hold a microbusiness license, a licensee must engage in at least three (3) of the following commercial cannabis activities: cultivation, manufacturing, distribution, and retail sale. License types created by the Department in regulation shall not be considered qualifying commercial cannabis activities for purposes of obtaining a microbusiness license, except for the Type N manufacturing license and the distributor transport only license.
(b) An applicant for a microbusiness license shall indicate on the application for licensure all commercial cannabis activities in which the applicant intends to engage. (c) All cultivation, manufacturing, distribution, and retail activities performed by a licensee under a microbusiness license shall occur on the same licensed premises. (d) A holder of a microbusiness license engaged in cultivation shall comply with all the rules and requirements applicable to the cultivation license type suitable for the cultivation activities of the licensee.
(e) A holder of a microbusiness license engaged in manufacturing shall comply with all the rules and requirements applicable to a Manufacturer 1 license in this division. (f) A holder of a microbusiness license engaged in distribution shall comply with all the rules and requirements applicable to a distributor license in this division. (g) A holder of a microbusiness license engaged in retail sale shall comply with all the rules and requirements applicable to a retailer license, or a non-storefront retailer license if retail sales are conducted by delivery only, in this division. (h) A holder of a microbusiness license may only engage in the commercial cannabis activity requested in the license application and approved by the Department at the time the license is issued. If the holder of a microbusiness license wants to engage in an additional commercial cannabis activity after the license is issued, the licensee shall submit a request for a modification of the licensed premises pursuant to section 15027. (i) A holder of a microbusiness license shall comply with all the security rules and requirements applicable to the corresponding license type suitable for the activities of the licensee.
(j) Areas of the licensed premises for manufacturing, cultivation, and distribution shall be separated from the retail areas by a wall and all doors between the areas shall remain closed when not in use.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 109 of 216 (k) A suspension or revocation of a microbusiness licensee shall affect all commercial cannabis activities allowed pursuant to that license.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26050, 26051.5 and 26070, Business and Professions Code.
Chapter 5. Cannabis Events
§15600. Cannabis Event Organizer License.
(a) To obtain a temporary cannabis event license, the event organizer must first apply for and obtain a cannabis event organizer license.
(b) A cannabis event organizer licensed under this section shall comply with chapter 1 of this division except for sections 15006, 15007, 15010, 15019, 15025, 15027, 15034, 15038, 15042, 15044, and 15046-15052.1.
(c) A cannabis event organizer licensee is not authorized or licensed to cultivate, distribute, manufacture, or retail cannabis or cannabis products without first obtaining the appropriate licenses or authorizations to engage in such commercial cannabis activities.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26200, Business and Professions Code.
§15601. Temporary Cannabis Event Requirements.
(a) A temporary cannabis event license authorizes a licensed cannabis event organizer to hold a temporary cannabis event where the onsite sale and consumption of cannabis goods is authorized at the location indicated on the license during the dates indicated on the license.
(b) Violations of the requirements applicable to temporary cannabis events may result in disciplinary action against the cannabis event organizer license or any other licenses held by a licensee participating in the temporary cannabis event and responsible for a violation under this division or the Act.
(c) A temporary cannabis event license shall only be issued for a single day or up to 4 consecutive days. No temporary cannabis event license will be issued for more than 4 days.
(d) An application for a temporary cannabis event license shall be submitted to the Department no less than 60 calendar days before the first day of the temporary cannabis event.
(e) A temporary cannabis event may only be held at a county fair event, district agricultural association event, or at another venue expressly approved by a local jurisdiction for the purpose of holding a temporary cannabis event. (f) A temporary cannabis event license shall not be issued for a premises that is licensed for the sale of alcohol or tobacco.
(g) If the list of licensees and employees participating in the temporary cannabis event changes after the application is submitted or after the license is issued, the applicant Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 110 of 216 shall submit with the Licensee Notification and Request Form, Notifications and Requests Regarding Regulatory Compliance, DCC-LIC-028 (New 9/21), incorporated herein by reference, an updated list and an updated diagram, as required in section 15002.1(b)(5), to the Department no less than 72 hours before the event. Licensees not on the list submitted to the Department shall not participate in the temporary cannabis event.
(h) The licensed cannabis event organizer shall hire or contract for security personnel to provide security services at the licensed temporary cannabis event. All security personnel hired or contracted for by the licensee shall be at least 21 years of age, licensed by the Bureau of Security and Investigative Services, and comply with chapters
11.4 and 11.5 of division 3 of the Business and Professions Code. Security personnel shall be present on the licensed premises at all times cannabis goods are available for sale and/or cannabis goods consumption is allowed on the licensed premises. (i) A licensed cannabis event organizer shall maintain a clearly legible sign not less than 7 inches by 11 inches in size, reading “No Persons Under 21 Allowed” at or near each public entrance to any area where the sale or consumption of cannabis goods is allowed.
The lettering of the sign shall be no less than 1 inch in height. (j) All cannabis waste generated at a temporary cannabis event shall be collected and disposed of in accordance with the requirements of section 17223. The licensed cannabis event organizer may contract or arrange for the collection and disposal of cannabis waste generated during the temporary cannabis event. (k) A licensed cannabis event organizer and all other licensees participating in a temporary cannabis event are required to comply with section 15037 and all other applicable requirements in the Act and this division pertaining to record keeping. (l) The Department may require the event organizer and all participants to cease operations without delay if, in the opinion of the Department or local law enforcement, it is necessary to protect the immediate public health and safety of the people of the state.
Upon notification from the Department that the event is to cease operations, the event organizer shall immediately stop the event and all participants shall be removed from the premises within the time frame provided by the Department. (m) Upon notification from the Department, the event organizer shall immediately expel from the event any person selling cannabis goods without a license from the Department that authorizes the participant to sell cannabis goods. The event organizer or their representative shall remain with the person being expelled from the premises at all times until he or she vacates the premises. If the person does not vacate the premises, the Department may inform the event organizer that the event must cease operations. Upon notification from the Department that the event is to cease operations, the event organizer shall immediately stop the event and all participants shall be removed from the premises within the time frame provided by the Department.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26200, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 111 of 216 §15602. Temporary Cannabis Event Sales.
(a) Only persons age 21 or older may purchase and consume cannabis goods at a temporary cannabis event. Prior to selling cannabis goods to a customer, the licensee making the sale shall confirm, using valid identification as specified in section 15404 of this division, the age and identity of the customer.
(b) All sales of cannabis goods at a temporary cannabis event must occur in a retail area as designated in the premises diagram pursuant to section 15002.1(b)(5) of this division. (c) Each sale at a temporary cannabis event shall be performed by a licensed retailer, a licensed non-storefront retailer, or licensed microbusiness that is authorized to engage in retail sales. The cannabis event organizer may also sell cannabis goods at the temporary cannabis event if the organizer separately holds a license authorizing the retail sale of cannabis goods.
(1) Licensed retailers or licensed microbusinesses shall only conduct sales activities within their specifically assigned area, identified in the diagram of the physical layout of the temporary cannabis event.
(2) Mobile sales activities via wagon, cart, or similar means are prohibited at the temporary cannabis event site.
(d) Licensed retailers or licensed microbusinesses must prominently display their temporary cannabis event location number and state license within plain sight of the public.
(e) All sales at a temporary cannabis event shall occur on the dates stated on the license and shall occur at the location stated on the license. All onsite sales of cannabis goods must comply with the hours of operation requirements of section 15403 of this division. (f) Sale of alcohol or tobacco shall not be allowed on the licensed temporary cannabis event premises.
(g) The cannabis goods sold onsite at a temporary cannabis event shall be transported by a licensed distributor or licensed microbusiness in compliance with the Act and this division. All shipments of cannabis goods and non-cannabis goods intended for sale at a temporary cannabis event must be checked by the temporary cannabis event organizer staff to prevent prohibited items, such as alcohol and tobacco, from entering the licensed premises.
(h) Except small amounts of cannabis goods used for display, all cannabis goods for sale at a temporary cannabis event shall be stored in a secure, locked container that is not accessible to the public. Cannabis goods being stored by a licensee at a temporary cannabis event shall not be left unattended. Licensees may share the secure, locked container; however, each licensee using the container shall be held responsible for any violations of this section and subject to disciplinary action. (i) All cannabis goods made available for sale at a cannabis event shall comply with all requirements for the retail sale of cannabis goods within the Act and section 15406 of this division.
(j) All cannabis goods made available for sale at a temporary cannabis event shall Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 112 of 216 comply with all track and trace requirements within the Act and this division. (k) All cannabis goods used for display at a temporary cannabis event shall comply with the requirements of section 15405 of this division.
(l) All cannabis goods sold at a temporary cannabis event shall comply with section 15413 of this division.
(m) All customer returns of cannabis goods at a temporary cannabis event shall comply with section 15410 of this division.
(n) The daily sales limits under section 15409 of this division apply to all sales made at a temporary cannabis event.
(o) A licensed retailer shall only provide free cannabis goods to a person at a temporary cannabis event if the licensed retailer complies with all requirements of section 15411 of this division.
(p) The licensed cannabis event organizer shall be responsible for ensuring that all rules and requirements for the onsite sale of cannabis goods are followed. (q) Any compensation paid from a licensed retailer to a licensed cannabis event organizer for participation in a temporary cannabis event shall not be determined based on, or be contingent on, the sale of cannabis goods.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26200, Business and Professions Code.
§15603. Temporary Cannabis Event Consumption.
(a) Access to the area where cannabis consumption is allowed shall be restricted to persons 21 years of age or older.
(b) The event organizer licensee shall ensure that cannabis consumption is not visible from any public place or non-age-restricted area.
(c) Consumption of alcohol or tobacco shall not be allowed on the licensed premises. (d) All requirements for onsite cannabis consumption imposed by the relevant local jurisdiction shall be followed and smoking of cannabis goods shall be prohibited in any areas where smoking is prohibited by law.
(e) The licensed cannabis event organizer, who holds the temporary cannabis event license, shall be responsible for ensuring that all rules and requirements for the onsite consumption of cannabis goods are followed.
(f) A licensed cannabis event organizer and all other licensees participating in a temporary cannabis event are required to follow all applicable requirements in this division pertaining to record keeping and waste management.
Authority: Section 26013, Business and Professions Code. Reference: Section 26200, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 113 of 216 §15604. Informational or Educational Cannabis Events.
(a) Informational or educational cannabis events where no sales of cannabis goods or consumption of cannabis goods is occurring are not required to be licensed by the Department.
(b) A person may display cannabis or cannabis products for informational or educational purposes consistent with Health and Safety Code sections 11362.1 and 11362.77.
Authority: Section 26013, Business and Professions Code. Reference: Section 26013, Business and Professions Code; and Sections 11362.1 and 11362.77, Health and Safety Code.
Chapter 6. Testing Laboratories
Article 1. Chapter Definitions
§15700. Definitions.
In addition to the definitions in section 15000 of this division, the following definitions apply to this chapter.
(a) “Acceptance criteria” means the specified limits placed on the characteristics of an item or method that are used to determine data quality. (b) “Accreditation body” means an impartial non-profit organization that operates in conformance with the International Organization for Standardization (ISO) / International Electrotechnical Commission (IEC) standard 17011 and is a signatory to the International Laboratory Accreditation Cooperation (ILAC) Mutual Recognition Arrangement (MRA) for Testing.
(c) “Accredited college or university” means a college or university accredited by a regional or national accrediting agency that is an accreditor recognized by the Secretary of the US Department of Education.
(d) “Action level” means the threshold value that provides the criterion for determining whether a sample passes or fails an analytical test.
(e) “Analyte” means a chemical, compound, element, bacteria, yeast, fungus, or toxin to be identified or measured.
(f) “Analytical batch” means a set of no more than 20 samples that is prepared together for the same analysis and are prepared with laboratory quality control (LQC) samples. (g) “Analytical method” means a technique used qualitatively or quantitatively to determine the composition of a sample or a microbial contamination of a sample. (h) “Analytical sequence” means a group of samples that are analyzed sequentially using the same instrument calibration curve.
(i) “Cannabinoid” means a class of diverse chemical compounds derived from a cannabis plant.
(j) “CAS number” means the unique numerical identifier assigned to every chemical substance by Chemical Abstracts Service, a division of the American Chemical Society.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 114 of 216 (k) “CBDA” means cannabidiolic acid, CAS number 1244-58-2. (l) “CBG” means cannabigerol, CAS number 25654-31-3.
(m) “CBN” means cannabinol, CAS number 521-35-7.
(n) “Certificate of accreditation” means a document issued by an accreditation body that attests to the laboratory’s competence to carry out specific testing analysis. (o) “Certified reference material” means a reference material prepared by a certifying body or a party independent of the laboratory with ISO/IEC 17034 accreditation. (p) “Chain of Custody” (COC) means the chronological documentation that records the sequence of custody, control, transfer, analysis, and disposal of a sample. (q) “Coefficient of Determination” (commonly denoted as “r2”) means a statistical measure that determines how well the regression approximates the actual data points in the calibration curve, with a regression of 1 being a perfect fit. (r) “Continuing calibration verification” (CCV) means a type of quality control sample that includes each of the target method analytes that is a mid-range calibration standard which checks the continued validity of the initial calibration of the instrument. (s) “Corrective action” means an action taken by the laboratory to resolve, and prevent from recurrence, a problem with the technical operations of the laboratory. (t) “Exclusivity” means the specificity of the test method for validating microbial testing methods. It evaluates the ability of the method to distinguish the target organisms from similar but genetically distinct non-target organisms.
(u) “Foreign material” means any filthy, putrid, or decomposed substance including hair, insects, excreta, or related adulterant that may be hazardous or cause illness or injury to the consumer.
(v) “Frequency” means the number of items occurring in each category. Frequency may be determined by analytical method or laboratory specific requirements for accuracy, precision of the analysis, or statistical calculation.
(w) “Good laboratory practice” (GLP) means a system of management controls for laboratories to ensure the uniformity, consistency, reliability, reproducibility, quality, and integrity of analyses performed by the testing laboratory. (x) “Inclusivity” means, related to microbiological method validation, the sensitivity of the test method. It evaluates the ability of the test method to detect a wide range of target organisms by a defined relatedness.
(y) “Inhalable” means consumable through the lungs.
(z) “Initial Calibration Verification” (ICV) means a solution of each of the target method analytes of known concentration that is obtained from a source external to the laboratory and different from the source of calibration standards. (aa) “ISO/IEC” means the joint technical committee of the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC).
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 115 of 216 (bb) “ISO/IEC 17025” means the general requirements specified by the ISO/IEC for the competence of testing and calibration laboratories.
(cc) “ISO/IEC 17034” means the general requirements established by the ISO/IEC for the competence of reference material producers.
(dd) “ISO/IEC 17043” means the general requirements established by the ISO/IEC for proficiency testing.
(ee) “Laboratory” means “testing laboratory” as defined at Business and Professions Code section 26001(av).
(ff) “Laboratory Control Sample” (LCS) means a blank matrix to which known concentrations of each of the target method analytes are added. The spiked concentration must be at a mid-range concentration of the calibration curve for the target analytes. The LCS is analyzed in the same manner as the representative sample. (gg) “Laboratory replicate sample” means a sub-sample taken of the representative sample used for laboratory quality control purposes to demonstrate reproducibility. It is prepared and analyzed in the identical manner as the representative sample. The results from replicate analyses are used to evaluate analytical precision. (hh) “Laboratory employee” means any person directly employed by the laboratory for wages, salary, barter, or trade by the laboratory and who is not employed by any other licensee under the Act except for another testing laboratory. “Laboratory employee” does not mean an independent contractor, third party entity, or any other entity acting on behalf of the laboratory.
(ii) “Laboratory quality assurance” means the set of operating principles that enable laboratories to produce defensible data of known accuracy and precision and includes employee training, equipment preventative maintenance procedures, calibration procedures, and quality control testing, among other things. (jj) “Limit of detection” (LOD) means the lowest quantity of a substance or analyte that can be distinguished from the absence of that substance within a stated confidence limit. (kk) “Limit of quantitation” (LOQ) means the minimum concentration of an analyte in a specific matrix that can be reliably quantified while also meeting predefined goals for bias and imprecision.
(ll) “Linear regression” means the determination, in analytical chemistry, of the best linear equation for calibration data to generate a calibration curve. The concentrate of an analyte in a sample can then be determined by comparing a measurement of the unknown to the calibration curve. A linear regression uses the following equation:
y = mx + b; where m = slope, b = intercept
(mm) “Matrix” means the substances that are present in a sample except for the analyte(s) of interest.
(nn) “Matrix spike sample” means a sample prepared by adding a known quantity of each of the target analyte to a sample matrix or to a matrix that is as closely representative of the matrix being analyzed as possible. The spiked concentration must be at a mid-range Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 116 of 216 concentration of the calibration curve for the target analytes. (oo) “Method Blank” means an analyte free matrix to which all reagents are added in the same volumes or proportions as used in the sample preparation and is processed in exactly the same manner as the samples.
(pp) “Moisture content” means the percentage of water in a sample, by weight. (qq) “Non-target organism” means an organism that the test method or analytical procedure is not testing for and can be used in evaluating the specificity of a test method. (rr) “Percent recovery” means the percentage of a measured concentration relative to the added (spiked) concentration in a reference material or matrix spike sample. A laboratory shall calculate the percent recovery by dividing the sample result by the expected result then multiplying the quotient by 100.
(ss) “Practical experience” means experience performing scientific analytical tests in a laboratory setting using equipment, instruments, kits, and materials routinely found in a laboratory. “Practical experience” includes experience in any type of laboratory setting and is not limited to cannabis-specific laboratories.
(tt) “Proficiency test” means an evaluation of a laboratory’s performance against preestablished criteria by means of interlaboratory comparisons of test measurements. (uu) “Proficiency test sample” means a sample that is prepared by a party independent of the testing laboratory with the ISO/IEC 17043 accreditation, where the concentration and identity of an analyte is known to the independent party, but is unknown to the testing laboratory and testing laboratory employees.
(vv) “Quadratic regression” means the determination, in analytical chemistry, of the best parabola equation for calibration data to generate a calibration curve. The concentrate of an analyte in a sample can then be determined by comparing a measurement of the unknown to the calibration curve. A quadratic regression uses the following equation:
y = ax2 + bx + c; where a, b, and c are numerical coefficients (ww) “Quality control” means the set of measures implemented within an analytical procedure to ensure that the measurement system is operating in a state of statistical control for which errors have been reduced to acceptable levels. (xx) “Quality control sample” means a sample that is produced and used by a laboratory for the purpose of assuring the quality of the data and results. Quality control samples include blank samples, matrix spike samples, laboratory control samples, replicate samples, and reference material samples.
(yy) “Reagent” means a compound or mixture added to a system to cause a chemical reaction or test if a reaction occurs. A reagent may be used to tell whether a specific chemical substance is present by causing a reaction to occur with the chemical substance.
(zz) “Reference material” means material containing a known concentration of an analyte of interest that is in solution or in a homogeneous matrix. (aaa) “Reference method” means the method by which the performance of an alternate Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 117 of 216 method is measured or evaluated.
(bbb) “Relative percent difference” (RPD) means the comparative statistic that is used to calculate precision or random error. RPD is calculated using the following equation:
RPD = │ (representative sample measurement – replicate sample measurement) / ([representative sample measurement + replicate sample measurement] / 2) × 100%
(ccc) “Relative standard deviation” (RSD) means the standard deviation expressed as a percentage of the means recovery. RSD is calculated using the following equation:
RSD = (s / x) × 100%; where s = standard deviation and x = mean (ddd) “Representative” means a small quantity of the batch whose characteristics represent, as accurately as possible, the entire batch, thus allowing the results to be generalized.
(eee) “Representative sample” means a sample that is comprised of several sample increments of cannabis or cannabis products that are collected from a batch for testing. (fff) “Requester” means the person who submits a request to the laboratory for testing of cannabis or cannabis products from an entity licensed under the Act. (ggg) “Reserve sample” means any portion of a representative sample that was not used in the testing process.
(hhh) “Sample” means a representative part of, or a single item from, a batch which is comprised of several sample increments.
(jjj) “Sample increment” means a portion of a batch that, together with other increments, makes up the sample.
(kkk) “Sampler” means the laboratory employee responsible for obtaining samples of cannabis or cannabis products from a licensed distributor or licensed microbusiness authorized to engage in distribution.
(lll) “Sanitize” means to sterilize, disinfect, or make hygienic. (mmm) “Scope of accreditation” means the tests or types of tests performed, materials or products tested, and the methods used for testing cannabis or cannabis products for which the accreditation has been granted.
(nnn) “Standard operating procedure” (SOP) means a written document that provides detailed instructions for the performance of all aspects of an analysis, operation, or action.
(ooo) “Target organism” means an organism that is being tested for in an analytical procedure or test method.
(ppp) “THCA” means tetrahydrocannabinolic acid, CAS number 23978-85-0. (qqq) “Total CBD” means the sum of CBD and CBDA. Total CBD is calculated using the following equation:
Total CBD concentration (mg/g) = (CBDA concentration (mg/g) x 0.877) + CBD Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 118 of 216 concentration (mg/g)
(rrr) “Total THC” means the sum of THC and THCA. Total THC is calculated using the following equation:
Total THC concentration (mg/g) = (THCA concentration (mg/g) x 0.877) + THC concentration (mg/g)
(sss) “Validation” means the confirmation by examination and objective evidence that the requirements for a specific intended use or analytical method are fulfilled. (ttt) “Water activity” means the measure of the quantity of water in a product that is available and therefore capable of supporting bacteria, yeasts, and fungi and which is reported in units Aw.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013 and 26100, Business and Professions Code.
Article 2. Laboratory License
§15701. General Laboratory License Requirements.
(a) A licensed laboratory shall maintain ISO/IEC 17025 accreditation for the testing of the following:
(1) Cannabinoids;
(2) Heavy metals;
(3) Microbial impurities;
(4) Mycotoxins;
(5) Residual pesticides;
(6) Residual solvents and processing chemicals; and
(7) If tested, terpenoids.
(b) Each testing laboratory licensed premises shall have ISO/IEC 17025 accreditation. (c) A licensed laboratory shall retain, and make available to the Department upon request, all records associated with the licensee’s ISO/IEC 17025 certificate of accreditation.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26100, Business and Professions Code.
§15702. Laboratory License Application.
In addition to the information required in section 15002 of this division, an application for a testing laboratory license includes the following:
(a) A valid certificate of accreditation, issued by an accreditation body, that attests to the laboratory’s competence to perform testing, including all the required analytes for the following test methods:
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 119 of 216 (1) Cannabinoids;
(2) Heavy metals;
(3) Microbial impurities;
(4) Mycotoxins;
(5) Residual pesticides;
(6) Residual solvents and processing chemicals; and
(7) If tested, terpenoids.
(b) Standard operating procedures for the following testing methods:
(1) Cannabinoids;
(2) Foreign material;
(3) Heavy metals;
(4) Microbial impurities;
(5) Moisture content and water activity;
(6) Mycotoxins;
(7) Residual pesticides;
(8) Residual solvents and processing chemicals; and
(9) If tested, terpenoids.
(c) Method validation reports for the following testing methods:
(1) Cannabinoids;
(2) Heavy metals;
(3) Microbial impurities;
(4) Water activity;
(5) Mycotoxins;
(6) Residual pesticides;
(7) Residual solvents; and processing chemicals; and
(8) If tested, terpenoids.
(d) Standard operating procedures for the sampling of cannabis or cannabis products.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26050, 26055, 26102 and 26104, Business and Professions Code. §15703. Interim Testing Laboratory License.
(a) An applicant may apply for an interim license prior to receiving ISO/IEC 17025 accreditation provided that the commercial cannabis business meets all other licensure requirements for a testing laboratory and submits to the Department an application in Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 120 of 216 compliance with section 15002 of this division and an attestation that the commercial cannabis business has or intends to seek ISO/IEC 17025 accreditation for all testing methods required by this division.
(b) An interim testing laboratory license shall be valid for 12 months. The annual license fee for an interim license shall be determined pursuant to the requirements in section 15014 of this division for determining the annual license fee for a testing laboratory license.
(c) To timely renew an interim license, a completed license renewal form and the annual renewal license fee pursuant to section 15014 of this division shall be received by the Department from the licensee no earlier than 60 calendar days before the expiration of the license and no later than 5:00 p.m. Pacific Time on the last business day before the expiration of the license if the renewal form is submitted to the Department at its office(s), or no later than 11:59 p.m. on the last business day before the expiration of the license if the renewal form is submitted to the Department through its electronic licensing system.
Failure to receive a notice for license renewal does not relieve a licensee of the obligation to renew an interim license as required.
(d) In the event the license is not renewed prior to the expiration date, the licensee must not test any commercial cannabis or cannabis products until the license is renewed. (e) A licensee may submit a license renewal form up to 30 calendar days after the license expires. Any late renewal form will be subject to a late fee equal to 50 percent of the applicable licensing fees required by subsection (c) of this section. (f) The license renewal application shall contain the following:
(1) The name of the licensee. For licensees who are individuals, the applicant shall provide both the first and last name of the individual. For licensees who are business entities, the licensee shall provide the legal business name of the commercial cannabis business;
(2) The license number and expiration date;
(3) The licensee’s address of record and licensed premises address; and (4) An attestation that all information provided to the Department in the original application under section 15002 of this division or subsequent notification under sections 15023 and 15024 of this division is accurate and current. (g) The Department may renew an interim license for an initial renewal period of 12 months.
(h) After one renewal, the Department may renew the interim license for additional 12- month periods if the licensee has submitted an application for the ISO/IEC 17025 accreditation. In addition to the information required for a renewal form pursuant to subsection (f) of this section, any renewal request pursuant to this section shall also include an attestation that the licensee’s application for each ISO/IEC 17025 is pending with the accrediting body, the name of the accrediting body, and the date the application was submitted to the accrediting body.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 121 of 216 (i) The licensee shall notify the Department if the application for each ISO/IEC 17025 accreditation is granted or denied within 1 business day of receiving the decision from the accrediting body. The licensee shall submit to the Department the information required, on the Licensee Notification and Request Form, Notifications and Requests Regarding Testing Laboratories, DCC-LIC-029 (New 9/21), which is incorporated herein by reference. If the accrediting body grants or denies the licensee’s application for any ISO/IEC 17025 accreditation before the expiration of the interim license, the Department may terminate the interim license at that time.
(j) The Department may revoke an interim license at any time.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26031, 26050 and 26102, Business and Professions Code.
Article 3. Sampling Cannabis and Cannabis Products
§15704. Sampling Standard Operating Procedures.
(a) The licensed laboratory shall develop and implement a sampling standard operating procedure (SOP) that describes the laboratory’s method for obtaining representative samples of cannabis or cannabis products. The licensed laboratory shall use and submit to the Department Sampling – Standard Operating Procedures, DCC-LIC-021 (Amended 9/21), which is incorporated herein by reference.
(b) The licensed laboratory shall retain a copy of the sampling SOP on the licensed laboratory premises and ensure that the sampling SOP is accessible to the sampler during sampling.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26102, 26104 and 26110, Business and Professions Code.
§15705. General Sampling Requirements.
(a) The licensed laboratory that obtains a representative sample from a licensed distributor or licensed microbusiness shall perform all the required testing at one licensed laboratory premises.
(b) The licensed laboratory may obtain and analyze samples only from cannabis products batches in final form as required by Business and Professions Code section 26100.
(c) The licensed laboratory sampler shall collect a representative sample from each batch following the procedures specified in the laboratory’s sampling standard operating procedure(s).
(d) The licensed laboratory shall ensure that the sample is transported and subsequently stored at the licensed laboratory premises in a manner that prevents degradation, contamination, commingling, and tampering. If the cannabis or cannabis products specify on the label how the cannabis or cannabis products shall be stored, the laboratory shall store the sample as indicated on the label.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 122 of 216 (e) The licensed laboratory shall complete a chain of custody form for each sample that the laboratory collects and analyzes.
(f) Once a representative sample has been obtained for regulatory compliance testing, the licensed laboratory that obtained the sample must complete the regulatory compliance testing.
(g) If a licensed laboratory is unable to competently complete the regulatory compliance testing after sampling and before a COA is issued, the licensed distributor or microbusiness authorized to engage in distribution who arranged for the testing of the batch may request approval from the Department to have the impacted batch re-sampled and tested by another licensed laboratory.
(1) The request shall be made in writing via email to [email protected] and shall include all of the following:
(A) The name and license number of the distributor;
(B) The batch numbers;
(C) The type and quantity of cannabisor cannabis products; (D) The name and license number of the laboratory that took the initial sample and is not able to competently complete the regulatory compliance testing; (E) The name and license number of the laboratory proposed to re-sample and complete the regulatory compliance testing for the batch; and
(F) The reason why the laboratory that initially took the sample cannot competently complete the regulatory compliance testing.
(2) The Department will review the request and determine if the licensed laboratory that initially took the sample is unable to competently complete the regulatory compliance testing. If the Department determines that the licensed laboratory is unable to competently complete the regulatory compliance testing, the Department, in its discretion, may approve the request in whole or part and set conditions for the resampling and testing. (3) No re-sampling of any batch shall occur prior to the licensed distributor or licensed microbusiness authorized to engaged in distribution receiving written approval from the Department.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
§15706. Chain of Custody (COC).
(a) The licensed laboratory shall develop and implement a COC protocol to ensure accurate documentation is recorded for the transport, handling, storage, and destruction of samples.
(b) The COC protocol shall require the use of a COC form. The sampler shall use a COC to record the following information for each sampled batch:
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 123 of 216 (1) Laboratory’s name, licensed premises address, and license number; (2) Date and time sampling started and ended;
(3) Licensed distributor or licensed microbusiness’ name, licensed premises address, and license number;
(4) Licensed cultivator’s, licensed manufacturer’s, or licensed microbusiness’ name, licensed premises address, and license number;
(5) Batch number of the batch from which the representative sample was obtained and assigned unique sample identifier;
(6) Sample matrix;
(7) Total batch size, by weight, or unit count;
(8) Total weight, or unit count of the representative sample; (9) Sampling conditions or problems encountered during the sampling process, if any; (10) Printed name and signature of the licensed distributor or licensed microbusiness’ authorized to engage in distribution employee; and
(11) Printed name and signature of the sampler.
(c) Each time a sample changes custody between licensees, is transported, or is destroyed, the date, time, and the names and signatures of persons involved in these activities shall be recorded on the COC form.
(d) Once the custody of the sample changes between licensees, the COC form for that change of custody may not be altered.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26102, 26104 and 26110, Business and Professions Code.
§15707. Harvest Batch Sampling.
(a) The sampler shall obtain a representative sample from each prepacked or unpacked harvest batch. The representative sample must weigh 0.35% of the total harvest batch weight.
(b) A sampler may collect a representative sample greater than 0.35% of the total harvest batch weight of a prepacked or unpacked harvest batch if necessary to perform the required testing or to ensure that the samples obtained are representative. (c) The prepacked or unpacked harvest batch from which a sample is obtained shall weigh no more than 50.0 pounds. Laboratory analyses of a sample collected from a harvest batch weighing more than 50.0 pounds shall be deemed invalid and the harvest batch from which the sample was obtained shall not be released for retail sale. (d) When the sampler obtains a representative sample from an unpacked harvest batch, the sampler shall do all the following:
(1) Collect the number of sample increments relative to the unpacked harvest batch size as listed in the following table;
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 124 of 216 (2) Obtain sample increments from random and varying locations of the unpacked harvest batch, both vertically and horizontally. To the extent practicable, the sample increments obtained from an unpacked harvest batch shall be of equal weight; and (3) To the extent practicable, collect an equal number of sample increments from each container if the unpacked harvest batch is stored in multiple containers.
Unpacked Harvest Batch Size (pounds) Number of Increments (per sample) ≤ 10.0 8
10.1 – 20.0 16
20.1 – 30.0 23
30.1 – 40.0 29
40.1 – 50.0 34
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
§15708. Cannabis Product Batch and Pre-Roll Sampling.
(a) The sampler shall obtain a representative sample from each cannabis product batch or pre-roll batch.
(b) The sampler may collect a greater number of sample increments if necessary to perform the required testing or to ensure that the samples obtained are representative. (c) The cannabis product batch or pre-roll batch from which a representative sample is obtained shall contain no more than 150,000 units. Laboratory analyses of a sample collected from a cannabis product batch containing more than 150,000 units shall be deemed invalid and the cannabis product batch or pre-roll batch from which the representative sample was obtained shall not be released for retail sale. (d) The sampler shall obtain a representative sample of a cannabis product or pre-roll batch by collecting, at minimum, the number of sample increments relative to the batch size as listed in the following table. Each sample increment consists of 1 packaged unit.
Cannabis Product or Pre-roll Batch
Size (units)
Number of Sample Increments (per
sample)
≤ 50 2
51 – 150 3
151 – 500 5
501 – 1,200 8
1,201 – 3,200 13
3,201 – 10,000 20
10,001 – 35,000 32
35,001 – 150,000 50
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 125 of 216 §15709. Laboratory Transportation of Cannabis and Cannabis Products Samples. (a) The following requirements apply when a licensed testing laboratory transports cannabis or cannabis products samples:
(1) While transporting cannabis or cannabis products samples, a licensed testing laboratory employee shall ensure the cannabis or cannabis products are not visible to the public. Cannabis or cannabis products shall be locked in a fully enclosed box, container, or cage that is secured to the inside of the vehicle or trailer. No portion of the enclosed box, container, or cage shall be comprised of any part of the body of the vehicle or trailer.
For the purposes of this section, the inside of the vehicle includes the trunk. (2) While left unattended, vehicles and trailers shall be locked and secured. (3) The licensed laboratory shall not leave a vehicle or trailer containing cannabis or cannabis products samples unattended in a residential area or parked overnight in a residential area.
(4) The licensed laboratory shall ensure that any vehicle or trailer transporting cannabis or cannabis products samples has an alarm system.
(5) The licensed laboratory shall ensure that packages or containers holding cannabis or cannabis products samples are neither tampered with nor opened during transport. (6) The licensed laboratory transporting cannabis or cannabis products samples shall only travel between licensees for whom the laboratory is conducting regulatory compliance testing or quality assurance testing. A laboratory shall not deviate from the travel requirements described in this section, except for necessary rest, fuel, or vehicle repair stops.
(7) The licensed laboratory may transport multiple cannabis or cannabis products samples obtained from multiple licensees at once.
(8) Vehicles or trailers transporting cannabis or cannabis products samples are subject to inspection by the Department at any licensed premises or during transport at any time. (9) No person under the age of 21 years old shall be in a vehicle or trailer transporting cannabis or cannabis products samples.
(10) Only an employee of the licensed laboratory or security personnel who meets the requirement of section 15045 of this division shall be in a vehicle while transporting cannabis or cannabis products samples.
(b) Upon request, the licensed laboratory shall provide the following required transport vehicle information to theDepartment:
(1) The certificate of ownership or registration card issued by the California Department of Motor Vehicles for each vehicle used to transport cannabis or cannabis products samples;
(2) The year, make, model, license plate number, and numerical Vehicle Identification Number (VIN) for each vehicle or trailer used to transport cannabis or cannabis products samples; and
(3) Proof of insurance for each vehicle used to transport cannabis or cannabis products Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 126 of 216 samples.
(c) The laboratory shall provide the Department with the information required by this section in writing for any new vehicle or trailer that will be used to transport cannabis or cannabis products samples prior to using the vehicle or trailer.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26102, 26104 and 26110, Business and Professions Code.
§15710. Laboratory Receipt of Samples Obtained from a Distributor or Microbusiness.
(a) The licensed laboratory may accept and analyze a sample from a licensed distributor or licensed microbusiness authorized to engage in distribution for the required testing under section 15714 of this division only if there is an accompanying COC form for the sample.
(b) The licensed laboratory employee who receives the sample shall date, print, and sign their name on the accompanying sample COC.
(c) The licensed laboratory shall not analyze a sample obtained from a licensed distributor or licensed microbusiness authorized to engage in distribution, and the batch from which the sample was obtained may not be released for retail sale, if any of the followingoccur:
(1) The sample is received at the laboratory without the requisite COC form; (2) The tamper-evident material is broken prior to the sample being received at the laboratory; or
(3) There is evidence of sample commingling, contamination, degradation, or a related occurrence rendering the sample unusable for analytical testing when the sample is received at the laboratory.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
Article 4. Standard Operating Procedures
§15711. Laboratory Analyses Standard Operating Procedures. (a) The licensed laboratory shall develop, implement, and maintain written standard operating procedures (SOP) for sample preparation and each required test method. The licensed laboratory shall use and submit to the Department the following forms which are incorporated by reference:
(1) Sample Preparation – Standard Operating Procedures, Form DCC-LIC-022 (Amended 9/21), which is incorporated herein by reference; and (2) Test Methods – Standard Operating Procedures, Form DCC-LIC-023 (Amended 9/21), which is incorporated herein by reference.
(b) The licensed laboratory shall keep each SOP at the licensed laboratory premises and ensure that each SOP is accessible to laboratory employees during operating hours.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 127 of 216 (c) The licensed laboratory shall make each SOP available for inspection by the Department upon request, as well as any other SOPs associated with the licensee’s ISO/IEC 17025 certificate of accreditation.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26100, 26102, 26104 and 26110, Business and Professions Code. §15712. Test Methods.
(a) The laboratory shall develop, implement, and validate test methods for the analyses of samples as required under this division.
(b) To the extent practicable, the laboratory test methods shall comport with the following guidelines:
(1) US Food and Drug Administration’s Bacterial Analytical Manual, 2016; (2) AOAC International’s Official Methods of Analysis for Contaminant Testing of AOAC International, 20th Edition, 2016; and
(3) United States Pharmacopeia and the National Formulary’s Methods of Analysis for Contaminant Testing, 2016.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26102, 26104 and 26110, Business and Professions Code.
§15713. Validation of Test Methods.
(a) The licensed laboratory may use a nonstandard, amplified, or modified test method or a method that is designed or developed by the licensed laboratory to validate the methods for analyses of samples.
(b) The licensed laboratory shall follow the guidelines set forth in the US Food and Drug Administration’s Guidelines for the Validation of Analytical Methods for the Detection of Microbial Pathogens in Foods and Feeds, 2nd Edition, April 2015, incorporated herein by reference, to validate test methods for the microbial analysis of samples. The licensed laboratory shall include and address the criteria listed in the following table when validating test methods for microbial analyses of samples.
Criteria Requirement
Number of target organisms; inclusivity 5
Number of non-target organisms;
exclusivity 5
Number of analyte levels per matrix:
Qualitative methods
3 levels: high and low inoculum levels
and 1 uninoculated level
Number of analyte levels per matrix:
Quantitative methods
4 levels: low, medium and high inoculum
levels and 1 uninoculated level
Replicates per food at each level tested 2 or more replicates per level Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 128 of 216 (c) The licensed laboratory shall follow the guidelines set forth in the US Food and Drug Administration’s Guidelines for the Validation of Chemical Methods for the FDA FVM Program, 2nd Edition, April 2015, incorporated herein by reference, to validate test methods for chemical analysis of samples.
(1) The licensed laboratory shall include and address the following criteria to validate test methods for chemical analyses of samples:
(A) Accuracy;
(B) Precision;
(C) Linearity and range;
(i) The Coefficient of Determination (r2) for all calibration curves shall be greater than or equal to 0.99.
(ii) Linear regression or quadratic regression shall only be used for calibration curves.
Curves shall not be weighted at all or only weighted at ⅟x. (iii) LOQ for analytes tested shall be within the range of the calibration curve. (D) Calibration standard;
(i) For calibration curves, there shall be a minimum of five calibration standards, not including zero; and
(ii) Each calibration curve must include an Initial Calibration Verification (ICV). The percent recovery must be between 70% to 130%.
(E) Sensitivity and selectivity;
(F) Limit of detection and limit of quantitation;
(G) Recovery;
(H) Reproducibility; and
(I) Robustness.
(2) The licensed laboratory shall use certified reference materials to validate the following chemical analyses. The test method used for analysis is valid if the percent recovery of the certified reference material is between 80% to 120% for all required analytes. (A) Cannabinoids, if available;
(B) Heavy metals;
(C) Microbial impurities;
(D) Mycotoxins;
(E) Residual pesticides;
(F) Residual solvents and processing chemicals; and
(G) Terpenoids, if available.
(d) The licensed laboratory shall generate a validation report for each test method. Each validation report shall include the following information:
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 129 of 216 (1) Instrument calibration data, if any;
(2) Raw data, including instrument raw data, for each test method, if any; (3) Cannabis reference materials or certified reference material results; (4) Data and calculations pertaining to LOD and LOQ determinations, if any; (5) LQC report, as described in this chapter, for the validation of each method; and (6) Worksheets, forms, pictures, or copies of laboratory notebook pages and any other documentation necessary to meet the requirements described in subsections (b) and (c) of this section.
(7) The supervisory or management laboratory employee shall review, approve, sign, and date the validation report for each test method.
(8) Upon new test methods or altered test methods being used in the laboratory, the new validation report shall be submitted to the Department within 5 business days, accompanied by the Licensee Notification and Request Form, Notifications and Requests Regarding Testing Laboratories, DCC-LIC-029 (New 9/21), which is incorporated herein by reference.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26100, 26104 and 26110, Business and Professions Code.
Article 5. Laboratory Testing and Reporting
§15714. Required Testing.
(a) All sample increments collected must be homogenized prior to sample analyses, notwithstanding foreign material testing.
(b) The licensed laboratory shall test each representative sample for the following:
(1) Cannabinoids;
(2) Foreign material;
(3) Heavy metals;
(4) Microbial impurities;
(5) Mycotoxins;
(6) Moisture content and water activity;
(7) Residual pesticides;
(8) Residual solvents and processing chemicals; and
(9) If applicable, terpenoids.
(c) The licensed laboratory shall report the results of each analysis performed by the laboratory on the certificate of analysis.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 130 of 216 (d) The licensed laboratory that obtained the representative sample shall complete all required testing for each representative sample for regulatory compliance testing.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
§15717. Moisture Content and Water Activity Testing.
(a) The licensed laboratory shall analyze at minimum 0.5 grams of the representative sample of dried flower to determine the level of water activity and the percentage of moisture content.
(1) The dried flower sample, including pre-rolls, shall be deemed to have passed water activity testing if the water activity does not exceed 0.65 Aw. The laboratory shall report the result of the water activity test on the certificate of analysis (COA) and indicate “pass” or “fail” on the COA.
(2) The licensed laboratory shall report the result of the moisture content test on the COA as a percentage.
(b) The licensed laboratory shall analyze at least 0.5 grams of the representative sample of solid edible cannabis products to determine the level of water activity. A solid edible cannabis product shall be deemed to have passed water activity testing if the water activity does not exceed 0.85 Aw. The laboratory shall report the result of the water activity test on the COA and indicate “pass” or “fail” on the COA. (c) If the sample fails water activity testing, the batch from which the sample was collected fails water activity testing and shall not be released for retail sale.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
§15718. Residual Solvents and Processing Chemicals Testing. (a) The licensed laboratory shall analyze at minimum 0.25 grams of the representative sample of cannabis product or pre-rolls to determine whether residual solvents or processing chemicals are present.
(b) The licensed laboratory shall report the result of the residual solvents and processing chemicals testing in unit micrograms per gram (µg/g) on the COA and indicate “pass” or “fail” on the COA.
(c) The sample shall be deemed to have passed the residual solvents and processing chemicals testing if the presence of any residual solvent or processing chemical listed in the following tables in Category I and Category II does not exceed the indicated action levels.
(1) Notwithstanding subsection (c), the limit for ethanol does not apply to cannabis products that are tinctures.
(2) Notwithstanding subsection (c), the limit for ethanol or isopropyl alcohol does not apply to cannabis products that are topical cannabis products.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 131 of 216 Category I Residual Solvent or
Processing Chemical CAS No. Cannabis Product or Pre-Roll Action Level (µg/g) 1,2-Dichloroethane 107-06-2 1.0
Benzene 71-43-2 1.0
Chloroform 67-66-3 1.0
Ethylene oxide 75-21-8 1.0
Methylene chloride 75-09-2 1.0
Trichloroethylene 79-01-6 1.0
Category II Residual Solvent or
Processing Chemical
CAS No. Cannabis Product or Pre-roll
Action Level (µg/g)
Acetone 67-64-1 5000
Acetonitrile 75-05-8 410
Butane 106-97-8 5000
Ethanol 64-17-5 5000
Ethyl acetate 141-78-6 5000
Ethyl ether 60-29-7 5000
Heptane 142-82-5 5000
Hexane 110-54-3 290
Isopropyl alcohol 67-63-0 5000
Methanol 67-56-1 3000
Pentane 109-66-0 5000
Propane 74-98-6 5000
Toluene 108-88-3 890
Total xylenes (ortho-, meta-, para-) 1330-20-7 2170
(d) If the sample fails residual solvents and processing chemicals testing, the batch from which the sample was collected fails residual solvents and processing chemicals testing and shall not be released for retail sale.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 132 of 216 §15719. Residual Pesticides Testing.
(a) The licensed laboratory shall analyze at minimum 0.5 grams of the representative sample of cannabis and cannabis products to determine whether residual pesticides are present.
(b) The licensed laboratory shall report whether any Category I Residual Pesticides are detected above the limit of detection (LOD) and shall report the result of the Category II Residual Pesticides testing in unit micrograms per gram (µg/g) on the COA. The laboratory shall indicate “pass” or “fail” on the COA.
(c) The licensed laboratory shall establish a limit of quantitation (LOQ) of 0.10 µg/g or lower for all Category I Residual Pesticides.
(d) The sample shall be deemed to have passed the residual pesticides testing if both of the following conditions are met:
(1) The presence of any residual pesticide listed in the following tables in Category I are not detected, and
(2) The presence of any residual pesticide listed in the following tables in Category II does not exceed the indicated action levels.
Category I Residual Pesticide CAS No.
Aldicarb 116-06-3
Carbofuran 1563-66-2
Chlordane 57-74-9
Chlorfenapyr 122453-73-0
Chlorpyrifos 2921-88-2
Coumaphos 56-72-4
Daminozide 1596-84-5
DDVP (Dichlorvos) 62-73-7
Dimethoate 60-51-5
Ethoprop(hos) 13194-48-4
Etofenprox 80844-07-1
Fenoxycarb 72490-01-8
Fipronil 120068-37-3
Imazalil 35554-44-0
Methiocarb 2032-65-7
Methyl parathion 298-00-0
Mevinphos 7786-34-7
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 133 of 216 Category I Residual Pesticide CAS No.
Paclobutrazol 76738-62-0
Propoxur 114-26-1
Spiroxamine 118134-30-8
Thiacloprid 111988-49-9
Category II
Residual Pesticide CAS No.
Action Level (µg/g) for
Inhalable Cannabis and
Cannabis Products
Action Level (µg/g) for
Non-Inhalable Cannabis
Products
Abamectin 71751-41-2 0.1 0.3
Acephate 30560-19-1 0.1 5
Acequinocyl 57960-19-7 0.1 4
Acetamiprid 135410-20-7 0.1 5
Azoxystrobin 131860-33-8 0.1 40
Bifenazate 149877-41-8 0.1 5
Bifenthrin 82657-04-3 3 0.5
Boscalid 188425-85-6 0.1 10
Captan 133-06-2 0.7 5
Carbaryl 63-25-2 0.5 0.5
Chlorantraniliprole 500008-45-7 10 40
Clofentezine 74115-24-5 0.1 0.5
Cyfluthrin 68359-37-5 2 1
Cypermethrin 52315-07-8 1 1
Diazinon 333-41-5 0.1 0.2
Dimethomorph 110488-70-5 2 20
Etoxazole 153233-91-1 0.1 1.5
Fenhexamid 126833-17-8 0.1 10
Fenpyroximate 111812-58-9 0.1 2
Flonicamid 158062-67-0 0.1 2
Fludioxonil 131341-86-1 0.1 30
Hexythiazox 78587-05-0 0.1 2
Imidacloprid 138261-41-3 5 3
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 134 of 216 Category II
Residual Pesticide CAS No.
Action Level (µg/g) for
Inhalable Cannabis and
Cannabis Products
Action Level (µg/g) for
Non-Inhalable Cannabis
Products
Kresoxim-methyl 143390-89-0 0.1 1
Malathion 121-75-5 0.5 5
Metalaxyl 57837-19-1 2 15
Methomyl 16752-77-5 1 0.1
Myclobutanil 88671-89-0 0.1 9
Naled 300-76-5 0.1 0.5
Oxamyl 23135-22-0 0.5 0.2
Pentachloronitrobenzene 82-68-8 0.1 0.2
Permethrin 52645-53-1 0.5 20
Phosmet 732-11-6 0.1 0.2
Piperonylbutoxide 51-03-6 3 8
Prallethrin 23031-36-9 0.1 0.4
Propiconazole 60207-90-1 0.1 20
Pyrethrins 8003-34-7 0.5 1
Pyridaben 96489-71-3 0.1 3
Spinetoram 187166-15-0,
187166-40-1 0.1 3
Spinosad 131929-60-7,
131929-63-0 0.1 3
Spiromesifen 283594-90-1 0.1 12
Spirotetramat 203313-25-1 0.1 13
Tebuconazole 107534-96-3 0.1 2
Thiamethoxam 153719-23-4 5 4.5
Trifloxystrobin 141517-21-7 0.1 30
(e) If the sample fails residual pesticides testing, the batch from which the sample was collected fails residual pesticides testing and shall not be released for retail sale.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 135 of 216 §15720. Microbial Impurities Testing.
(a) The licensed laboratory shall analyze at minimum 1.0 grams of the representative sample of cannabis or cannabis products to determine whether microbial impurities are present.
(b) The licensed laboratory shall report the result of the microbial impurities testing by indicating “pass” or “fail” on the COA.
(c) The sample of inhalable cannabis and cannabis products shall be deemed to have passed the microbial impurities testing if all of the following conditions are met:
(1) Shiga toxin–producing Escherichia coli is not detected in 1 gram; (2) Salmonella spp. is not detected in 1 gram; and
(3) Pathogenic Aspergillus species A. fumigatus, A. flavus, A. niger, and A. terreus are not detected in 1 gram.
(d) The sample of non-inhalable cannabis and cannabis products shall be deemed to have passed the microbial impurities testing if both the following conditions are met:
(1) Shiga toxin–producing Escherichia coli is not detected in 1 gram, and (2) Salmonella spp. is not detected in 1 gram.
(e) If the sample fails microbial impurities testing, the batch from which the sample was collected fails microbial impurities testing and shall not be released for retail sale.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
§15721. Mycotoxin Testing.
(a) The licensed laboratory shall analyze at minimum 0.5 grams of the representative sample of cannabis and cannabis products to determine whether mycotoxins are present.
(b) The licensed laboratory shall report the result of the mycotoxins testing in unit micrograms per kilograms (µg/kg) on the COA and indicate “pass” or “fail” on the COA. (c) The sample shall be deemed to have passed mycotoxin testing if both the following conditions are met:
(1) Total of aflatoxin B1, B2, G1, and G2 does not exceed 20 µg/kg of substance, and (2) Ochratoxin A does not exceed 20 µg/kg of substance. (d) If the sample fails mycotoxin testing, the batch from which the sample was collected fails mycotoxin testing and shall not be released for retail sale.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 136 of 216 §15722. Foreign Material Testing.
(a) The licensed laboratory shall analyze the representative sample of cannabis and cannabis products to determine whether foreign material is present. (b) The licensed laboratory shall report the result of the foreign material test by indicating “pass” or “fail” on the COA.
(c) The licensed laboratory shall perform foreign material testing on the total representative sample prior to sample homogenization.
(d) When the licensed laboratory performs foreign material testing, at minimum, the laboratory shall do all of the following:
(1) Examine both the exterior and interior of the dried flower sample, and (2) Examine the exterior of the cannabis product sample. (e) The sample shall be deemed to have passed the foreign material testing if the presence of foreign material does not exceed:
(1) 1/4 of the total sample area covered by sand, soil, cinders, or dirt; (2) 1/4 of the total sample area covered by mold;
(3) 1 insect fragment, 1 hair, or 1 count mammalian excreta per 3.0 grams; or (4) 1/4 of the total sample area covered by an imbedded foreign material. (f) If the sample fails foreign material testing, the batch from which the sample was collected fails foreign material testing and shall not be released for retail sale.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
§15723. Heavy Metals Testing.
(a) The licensed laboratory shall analyze at minimum 0.5 grams of the representative sample of cannabis and cannabis products to determine whether heavy metals are present.
(b) The licensed laboratory shall report the result of the heavy metals test in unit micrograms per gram (µg/g) on the COA and indicate “pass” or “fail” on the COA. (c) The sample shall be deemed to have passed the heavy metals testing if the presence of heavy metals does not exceed the action levels listed in the following table.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 137 of 216 Heavy Metal
Action Level (µg/g) for
Inhalable Cannabis and
Cannabis Products
Action Level (µg/g) for
Non-Inhalable Cannabis
and Cannabis Products
Cadmium 0.2 0.5
Lead 0.5 0.5
Arsenic 0.2 1.5
Mercury 0.1 3.0
(d) If the sample fails heavy metals testing, the batch from which the sample was collected fails heavy metals testing and shall not be released for retail sale.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
§15724. Cannabinoid Testing.
(a) The licensed laboratory shall analyze at minimum 0.5 grams of the representative sample of cannabis and cannabis products to determine the cannabinoid profile such as THC; THCA; CBD; CBDA; CBG; and CBN.
(b) The licensed laboratory shall establish a limit of quantitation (LOQ) of 1.0 mg/g or lower for all cannabinoids analyzed and reported.
(c) The licensed laboratory shall report the result of the cannabinoid testing on the COA, including, at minimum:
(1) A percentage for THC, THCA, CBD, and CBDA;
(A) When the licensed laboratory reports the result of the cannabinoid testing for harvest batch representative samples on the COA in dry-weight percent, they shall use the following equation:
Dry-weight percent cannabinoid = wet-weight percent cannabinoid / (1 − percent moisture / 100)
(2) A percentage for Total THC and Total CBD, if applicable; (3) Milligrams per gram (mg/g) if by dry-weight or milligrams per milliliter (mg/mL) if by volume for THC, THCA, CBD, and CBDA.
(4) Milligrams per gram (mg/g) if by dry-weight or milligrams per milliliter (mg/mL) if by volume for Total THC and Total CBD, if applicable;
(A) The licensed laboratory shall calculate the total cannabinoid concentration as follows:
(i) For concentration expressed in weight:
Total cannabinoid concentration (mg/g) = (cannabinoid acid form concentration (mg/g) x
0.877) + cannabinoid concentration (mg/g)
(ii) For concentration expressed in volume:
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 138 of 216 Total cannabinoid concentration (mg/mL) = (cannabinoid acid form concentration (mg/mL) x 0.877) + cannabinoid concentration (mg/mL)
(5) Milligrams per package for THC and CBD;
(6) Milligrams per package for Total THC and Total CBD, if applicable; (7) Milligrams per serving for THC and CBD, if any;
(8) Milligrams per serving for Total THC and Total CBD, if any and if applicable; and (9) The licensed laboratory shall report the results of all other cannabinoids analyzed on the COA both as a percentage and in either milligrams per gram (mg/g) if by weight or milligrams per milliliter (mg/mL) if by volume.
(d) The sample shall be deemed to have passed the cannabinoid testing if the amount of THC does not exceed the limits established in section 17304 of this division. (e) The licensed laboratory shall report the test results and indicate an overall “pass” or “fail” for the cannabinoid testing on the COA.
(f) Any cannabinoids found to be less than the LOQ shall be reported on the COA as “<1 mg/g” if by dry-weight or “<1 mg/mL” if by volume.
(g) If the sample fails cannabinoid testing, the batch from which the sample was collected fails cannabinoid testing and shall not be released for retail sale. (h) For purposes of this division, any one cannabinoid, Total THC, and/or Total CBD claimed to be present on a label shall not be considered inaccurate if the difference in percentage on the certificate of analysis is plus or minus 10.0%. (i) Notwithstanding subsection (h), until January 1, 2022, for edible cannabis products where milligrams per serving for THC does not exceed 10 milligrams per serving, as provided for under section 17304(a)(1), Total THC claimed to be present on a label shall not be considered inaccurate if the difference in percentage on the COA is plus or minus
12.0%.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
§15725. Terpenoid Testing.
(a) If requested, the licensed laboratory shall analyze at minimum 0.5 grams of the representative sample of cannabis or cannabis products to determine the terpenoid profile of the sample.
(b) The licensed laboratory shall report the result of the terpenoid testing on the COA both as a percentage and in either milligrams per gram (mg/g) if by weight or milligrams per milliliter (mg/mL) if by volume.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 139 of 216 §15726. Certificate of Analysis (COA).
(a) The licensed laboratory shall generate a COA for each representative sample that the laboratory analyzes.
(b) The licensed laboratory shall ensure that the COA contains the results of all required analyses performed for the representative sample.
(c) The licensed laboratory shall, within 1 business day of completing all analyses of a sample, both upload the COA into the track and trace system and simultaneously provide a copy of the COA to the Department via email at [email protected]. (d) The licensed laboratory shall not release to any person any cumulative or individual test results prior to completing all analyses and providing the COA to the Department. (e) The COA shall contain, at minimum, the following information:
(1) The term “Regulatory Compliance Testing” in font no smaller than 14-point, which shall appear in the upper-right corner of each page of the COA. No text or images shall appear above the term “Regulatory Compliance Testing” on any page of the COA. (2) Laboratory’s name, licensed premises address, and license number; (3) Licensed distributor’s or licensed microbusiness authorized to engage in distribution’s name, licensed premises address, and license number;
(4) Licensed cultivator’s, licensed manufacturer’s, or licensed microbusiness’ name, licensed premises address, and license number;
(5) Batch number of the batch from which the sample was obtained. For cannabis and cannabis products that are already packaged at the time of sampling, the labeled batch number on the packaged cannabis and cannabis products shall match the batch number on the COA;
(6) Sample identifying information, including matrix type and unique sample identifiers; (7) Sample history, including the date collected, the date received by the laboratory, and the date(s) of sample analyses and corresponding testing results; (8) A picture of the sample of cannabis and cannabis products. If the sample is prepackaged, the picture must include an unobstructed image of the packaging; (9) For dried flower samples, the total weight of the batch, in grams or pounds, and the total weight, of the representative sample in grams;
(10) For cannabis product or pre-rolls samples, the total unit count of both the representative sample and the total batch size;
(11) Measured density of the cannabis and cannabis products; (12) The analytical methods, analytical instrumentation used, and corresponding Limits of Detection (LOD) and Limits of Quantitation (LOQ);
(13) An attestation on the COA from the laboratory supervisory or management employee that all LQC samples required by section 15730 of this division were performed and met the acceptance criteria; and
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 140 of 216 (14) Analytes detected during the analyses of the sample that are unknown, unidentified, or injurious to human health if consumed, if any.
(f) The licensed laboratory shall report test results for each representative sample on the COA as follows:
(1) Indicate an overall “pass” or “fail” for the entire batch; (2) When reporting qualitative results for each analyte, the licensed laboratory shall indicate “pass” or “fail”;
(3) When reporting quantitative results for each analyte, the licensed laboratory shall use the appropriate units of measurement as required under this chapter; (4) When reporting results for each test method, the licensed laboratory shall indicate “pass” or “fail”;
(5) When reporting results for any analytes that were detected below the analytical method LOQ, indicate “<LOQ”, notwithstanding cannabinoid results; (6) When reporting results for any analytes that were not detected or detected below the LOD, indicate “ND”; and
(7) Indicate “NT” for any test that the licensed laboratory did not perform. (g) The licensed laboratory supervisory or management employee shall validate the accuracy of the information contained on the COA and sign and date the COA. (h) The laboratory supervisory or management employee may request to amend a COA to correct minor errors. Requests must be emailed to the Department at [email protected] for approval prior to making any corrections. Errors in results required to be reported pursuant to subsection (f) are not minor errors.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
Article 6. Post Testing Procedures
§15727. Remediation and Retesting.
(a) A cannabis or cannabis product batch that has been additionally processed after failed testing must be retested and successfully pass all the analyses required under this chapter.
(b) The licensed distributor or licensed microbusiness authorized to engage in distribution shall arrange for remediation of a failed cannabis or cannabis product batch. If the batch cannot be remediated, the batch shall be destroyed by the licensed distributor or licensed microbusiness authorized to engage in distribution.
(c) If a failed batch is not remediated or reprocessed in any way it cannot be retested.
Any subsequent COAs produced without remediation of the failed batch will not supersede the initial regulatory compliance testing COA. (d) A cannabis or cannabis product batch may only be remediated twice. If the batch fails after the second remediation attempt and the second retesting, the entire batch shall be Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 141 of 216 destroyed.
(e) Within one business day of completing the required analyses of a representative sample obtained from a remediated cannabis or cannabis product batch, the laboratory shall upload the COA information into the track and trace system, or if the licensee does not yet have access to the track and trace system, it shall be emailed to the Department. (f) Nothing in this section shall be interpreted to prevent a cannabis or cannabis product batch from being retested when the COA is 12 or more months old.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
§15728. Post Testing Sample Retention.
(a) The licensed laboratory shall retain the reserve sample, consisting of any portion of a sample that was not used in the testing process. The reserve sample shall be kept, at minimum, for 45 business days after the analyses, after which time it may be destroyed and denatured to the point the material is rendered unrecognizable and unusable. (b) The licensed laboratory shall securely store the reserve sample in a manner that prohibits sample degradation, contamination, and tampering. (c) The licensed laboratory shall provide the reserve sample to the Department upon request.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
Article 7. Laboratory Quality Assurance and Quality Control §15729. Laboratory Quality Assurance (LQA) Program.
(a) The licensed laboratory shall develop and implement a LQA program to assure the reliability and validity of the analytical data produced by the laboratory. The LQA program shall, at minimum, include a written LQA manual that addresses the following:
(1) Quality control procedures;
(2) Laboratory organization and employee training and responsibilities, including good laboratory practice (GLP);
(3) LQA objectives for measurement data;
(4) Traceability of data and analytical results;
(5) Instrument maintenance, calibration procedures, and frequency; (6) Performance and system audits;
(7) Corrective action procedures;
(8) Steps to change processes when necessary;
(9) Record retention and document control;
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 142 of 216 (10) Test procedure standardization; and
(11) Method validation.
(b) The supervisory or management laboratory employee shall annually review, amend if necessary, and approve the LQA program and manual both when they are created and when there is a change in methods, laboratory equipment, or the supervisory or management laboratory employee.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
§15730. Laboratory Quality Control (LQC) Samples.
The licensed laboratory shall use LQC samples and adhere to good laboratory practice (GLP) in the performance of each analysis according to the following specifications. (a)The licensed laboratory shall analyze LQC samples in the same manner as the laboratory analyzes cannabis and cannabis products samples. (b)The licensed laboratory shall use at least one negative control, one positive control, and one laboratory replicate sample in each analytical batch for each target organism during microbial testing. If one of the controls produces unexpected results, the samples shall be re- prepped and reanalyzed with a new set of controls.
(c) If the result of the microbial analyses is outside the specified acceptance criteria in the following table, the licensed laboratory shall determine the cause and take steps to remedy the problem until the result is within the specified acceptance criteria.
Laboratory Quality
Control Sample
Acceptance Criteria Corrective Action
Positive control Produces expected
result, positive result
Re-prep and reanalyze the entire analytical batch,
once. If problem persists, locate and remedy the
source of unexpected result, then re-prep samples
and reanalyze with a new set of controls.
Negative control Produces expected
result, negative
result
Re-prep and reanalyze the entire analytical batch,
once. If problem persists, locate and remedy the
source of unexpected result, then re-prep samples
and reanalyze with a new set of controls.
Laboratory replicate
sample
Sample results must
concur
Reanalyze sample and associated replicate
sample once. If problem persists, re-prep samples
and reanalyze.
(d) The licensed laboratory shall prepare and analyze at least one of each of the following LQC samples for each analytical batch:
(1) Method Blank;
(2) Laboratory control sample (LCS); and
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 143 of 216 (3) Laboratory replicate sample or matrix spike sample. (e) The laboratory shall analyze, at minimum, a continuing calibration verification (CCV) sample at the beginning of each analytical sequence and every 10 samples thereafter. (f) If the result of the chemical analyses is outside the specified acceptance criteria in the following table, the laboratory shall determine the cause and take steps to remedy the problem until the result is within the specified acceptance criteria.
Laboratory Quality
Control Sample
Acceptance Criteria Corrective Action
Method Blank sample Not to exceed LOQ Reanalyze entire analytical batch once. If method blank is still greater than the LOQ for
any analyte, locate the source of contamination
then re-prep samples and reanalyze.
LCS Percent recovery 70%
to 130%
Reanalyze the entire analytical batch, once. If
problem persists, re-prep samples and
reanalyze or re-run the initial calibration curve.
Laboratory replicate
sample
RPD ≤30% Reanalyze sample and associated replicate
sample once. If problem persists, re-prep
samples and reanalyze.
Matrix spike sample Percent recovery
between 70% to 130%
Reanalyze sample and associated matrix spike
sample once. If problem persists, re-prep
samples and reanalyze.
CCV Percent recovery
between 70% to 130%
Reanalyze all samples that followed the last
CCV that met the acceptance criteria. If CCV
still fails, re-run the initial calibration curve and
all samples in the analytical sequence.
(g) If any analyte is detected above any action level, as described in this chapter, the sample shall be re-prepped and reanalyzed in replicate within another analytical batch. (1) For quantitative analyses, the re-prepped sample and its associated replicate must meet the acceptance criteria of RPD ≤30%.
(2) For qualitative analyses, the re-prepped sample and its associated replicate results must concur.
(h) If any LQC sample produces a result outside of the acceptance criteria, the laboratory cannot report the result and the entire batch cannot be released for retail sale. The laboratory shall determine the cause and take steps to remedy the problem until the result is within the specified acceptance criteria.
(i) If the licensed laboratory determines that the result is a false-positive or a falsenegative, the Department may ask for the laboratory to re-sample or re-test.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 144 of 216 (j) The licensed laboratory shall compile and generate one LQC sample report for each analytical batch that includes LQC acceptance criteria, measurements, analysis date, and matrix.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
§15731. Limits of Detection (LOD) and Limits of Quantitation (LOQ) for Quantitative Analyses.
(a) The licensed laboratory shall calculate the LOD for chemical method analyses according to any of the following methods:
(1) Signal-to-noise ratio of between 3:1 and 2:1;
(2) Standard deviation of the response and the slope of calibration curve using a minimum of 7 spiked Blank samples calculated as follows; LOD = (3.3 x standard deviation of the response) / slope of the calibration curve; or (3) A method published by the United States Food and Drug Administration (USFDA) or the United States Environmental Protection Agency (USEPA). (b) The licensed laboratory shall calculate the LOQ for chemical method analyses according to any of the following methods:
(1) Signal-to-noise ratio of 10:1, at minimum;
(2) Standard deviation of the response and the slope using a minimum of 7 spiked Blank samples calculated as follows:
LOQ = (10 × standard deviation of the response) / slope of the calibration curve; or (3) A method published by the USFDA or the USEPA.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
§15732. Data Package.
(a) The licensed laboratory shall compile and generate one data package for each representative sample that the laboratory analyzes.
(b) The licensed laboratory shall create a data package and use the Data Package Cover Page and Checklist Form, DCC-LIC-024 (Amended 9/21), which is incorporated herein by reference. The data package and form DCC-LIC-024 (Amended 9/21) shall be provided to the Department immediately upon request.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104, 26110 and 26160, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 145 of 216 §15733. Required Proficiency Testing.
(a) The licensed laboratory shall participate in a proficiency testing program provided by an organization that operates in conformance with the requirements of ISO/IEC 17043, at least once every six months.
(b) The licensed laboratory shall annually, successfully participate in a proficiency testing program for each of the following test methods:
(1) Cannabinoids;
(2) Heavy metals;
(3) Microbial impurities;
(4) Mycotoxins;
(5) Residual pesticides;
(6) Residual solvents and processing chemicals; and
(7) If tested, terpenoids.
(c) The licensed laboratory shall report all analytes available by the proficiency testing program provider and for which the licensee is required to test as required under this chapter.
(d) The licensed laboratory shall participate in the proficiency testing program by following the laboratory’s existing SOPs for testing cannabis and cannabis products. (e) The licensed laboratory shall rotate the proficiency testing program among the laboratory employees who perform the test methods.
(f) Laboratory employees who participate in a proficiency testing program shall sign the corresponding analytical reports or attestation statements to certify that the proficiency testing program was conducted in the same manner as the laboratory tests of cannabis and cannabis products.
(g) A supervisory or management laboratory employee shall review and verify the accuracy of results reported for all proficiency testing program samples analyzed. (h) The licensed laboratory shall request the proficiency testing program provider to send results concurrently to the Department, if available, or the laboratory shall provide the proficiency testing program results to the Department within 3 business days after the laboratory receives notification of their test results from the proficiency testing program provider. Any results shall be reported by submitting the Licensee Notification and Request Form, Notifications and Requests Regarding Testing Laboratories, DCC-LIC029 (New 9/21), which is incorporated herein by reference.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100 and 26110, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 146 of 216 §15734. Satisfactory and Unsatisfactory Proficiency Test Performance. (a) The licensed laboratory shall be deemed to have successfully participated in a proficiency testing program for an analyte tested in a specific method if the test results demonstrate a “satisfactory” or otherwise proficient performance determination by the proficiency testing program provider.
(b) The licensed laboratory may not report test results for analytes that are deemed by the proficiency testing program provider as “unacceptable,” “questionable,” “unsatisfactory”, or otherwise deficient.
(c) The licensed laboratory may resume reporting test results for analytes that were deemed “unacceptable,” “questionable,” “unsatisfactory”, or otherwise deficient, only if both of the following conditions are met:
(1) The licensed laboratory satisfactorily remedies the cause of the failure for each analyte; and
(2) The licensed laboratory submits, to the Department, a written corrective action report demonstrating how the laboratory has fixed the cause of the failure.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100 and 26110, Business and Professions Code.
§15735. Laboratory Audits.
(a) The licensed laboratory shall conduct an internal audit at least once per year or in accordance with the ISO/IEC 17025 accrediting body’s requirement, whichever is more frequent.
(b) The internal audit must include all of the components required by the ISO/IEC 17025 internal-audit standards.
(c) Within 3 business days of completing the internal audit, the licensed laboratory shall submit the results of the internal audit to the Department. (d) Within 3 business days of receiving the accrediting body on=site audit findings, the licensed laboratory shall submit the results to the Department. (e) The licensed laboratory shall submit any audit results to the Department, accompanied by the Licensee Notification and Request Form, Notifications and Requests Regarding Testing Laboratories, DCC-LIC-029 (New 9/21), which is incorporated herein by reference.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100 and 26104, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 147 of 216 Article 8. Laboratory Employee Qualifications
§15736. General Laboratory Employee Qualifications.
(a) The licensed laboratory may only employ persons who are at least 21 years of age. (b) The licensed laboratory shall develop and implement an employee training program to ensure competency of laboratory employees for their assigned functions. (c) The licensed laboratory shall ensure and document that each laboratory employee meets the employee qualifications.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26102 and 26104, Business and Professions Code.
§15737. Supervisor or Management Responsibilities and Qualifications. (a) The licensed laboratory shall employ a supervisor or management employee who must be responsible for:
(1) Overseeing and directing the scientific methods of the licensed laboratory; (2) Ensuring that the licensed laboratory achieves and maintains a laboratory quality assurance program as required by section 15729 of this division; and (3) Providing ongoing and appropriate training to laboratory employees. (b) To be considered qualified, the supervisor or management employee must have at minimum:
(1) A doctoral degree in biological, chemical, agricultural, environmental, or related sciences from an accredited college or university;
(2) A master’s degree in biological, chemical, agricultural, environmental, or related sciences from an accredited college or university, plus at least 2 years of full-time practical experience;
(3) A bachelor’s degree in biological, chemical, agricultural, environmental, or related sciences from an accredited college or university, plus at least 4 years of full-time practical experience; or
(4) A bachelor’s degree in any field from an accredited college or university, plus at least 8 years of full-time practical experience, 4 years of which must have been in a supervisory or management position.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26102 and 26104, Business and Professions Code.
§15738. Analyst and Sampler Qualifications.
(a) The licensed laboratory shall employ an analyst who, at minimum, must have either:
(1) Earned a master’s degree or a bachelor’s degree in biological, chemical, agricultural, environmental, or related sciences from an accredited college or university; or Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 148 of 216 (2) Completed 2 years of college or university education that included coursework in biological, chemical, agricultural, environmental, or related sciences from an accredited college or university, plus at least 3 years of full-time practical experience. (b) The licensed laboratory shall employ a sampler who, at minimum, must have either:
(1) Completed 2 years college or university education; or (2) Earned a High School Diploma or passed a General Educational Development or High School Equivalency exam, plus at least 1 year of full-time practical experience.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26102 and 26104, Business and Professions Code.
Chapter 7. Cultivators
Article 1. General Cultivation Requirements
§16201. Cultivation License Types.
License types include:
(a) Specialty Cottage:
(1) “Specialty Cottage Outdoor” is an outdoor cultivation site with up to 25 mature plants or 2,500 square feet or less of total canopy.
(2) “Specialty Cottage Indoor” is an indoor cultivation site with 500 square feet or less of total canopy.
(3) “Specialty Cottage Mixed-Light Tier 1 and 2” is a mixed-light cultivation site with 2,500 square feet or less of total canopy.
(b) Specialty:
(1) “Specialty Outdoor” is an outdoor cultivation site with less than or equal to 5,000 square feet of total canopy, or up to 50 mature plants on noncontiguous plots. (2) “Specialty Indoor” is an indoor cultivation site with between 501 and 5,000 square feet of total canopy.
(3) “Specialty Mixed-Light Tier 1 and 2” is a mixed-light cultivation site with between 2,501 and 5,000 square feet of total canopy.
(c) Small:
(1) “Small Outdoor” is an outdoor cultivation site with between 5,001 and 10,000 square feet of total canopy.
(2) “Small Indoor” is an indoor cultivation site with between 5,001 and 10,000 square feet of total canopy.
(3) “Small Mixed-Light Tier 1 and 2” is a mixed-light cultivation site with between 5,001 and 10,000 square feet of total canopy.
(d) Medium:
(1) “Medium Outdoor” is an outdoor cultivation site with between 10,001 square feet and Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 149 of 216 one acre of total canopy.
(2) “Medium Indoor” is an indoor cultivation site with between 10,001 and 22,000 square feet of total canopy.
(3) “Medium Mixed-Light Tier 1 and 2” is a mixed-light cultivation site with between 10,001 and 22,000 square feet of total canopy.
(e) “Nursery” is a cultivation site that conducts only cultivation of clones, immature plants, seeds, and other agricultural products used specifically for the propagation of cultivation of cannabis.
(f) “Processor” is a cultivation site that conducts only trimming, drying, curing, grading, packaging, and labeling of cannabis and nonmanufactured cannabis products.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26013, 26050 and 26061, Business and Professions Code.
§16202. General Cultivation Requirements.
(a) Licensees are prohibited from transferring any commercially cultivated cannabis or nonmanufactured cannabis products from their licensed premises. All transfers of cannabis and nonmanufactured cannabis product from a licensed cultivation premises must be conducted by a distributor licensed by the Department. (b) Outdoor cultivation licensees are prohibited from using light deprivation. Artificial lighting is permissible only to maintain immature plants outside the canopy area.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26010, 26012, 26013, 26050 and 26053, Business and Professions Code. §16209. Medium Cultivation License Limits.
A person or owner shall be limited to one (1) Medium Outdoor, or one (1) Medium Indoor, or one (1) Medium Mixed-Light A-License or M-License. This section shall remain in effect until January 1, 2023.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26013, 26050 and 26061, Business and Professions Code.
Article 2. Cultivation Site Requirements
§16300. Cultivation Requirements for Specialty Cottage, Specialty, Small, and Medium Licenses.
(a) Cannabis plants maintained outside of the designated canopy area(s) for specialty cottage, specialty, small, and medium licenses are prohibited from flowering. Should a plant outside of the canopy area(s) begin to flower, a plant tag shall be applied, the plant shall be moved to a designated canopy area and reported in the track and trace system without delay.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 150 of 216 (b) All plants or portions of a plant used for seed production shall be tagged with a plant tag pursuant to section 15048.4.
(c) A licensee propagating immature plants for distribution or seed for distribution to another licensee shall obtain a nursery license.
(d) Licensees shall process their harvested cannabis only in area(s) designated for processing in their cultivation plan, or transfer their harvested cannabis to a licensed processor, manufacturer, or distributor via a licensed distributor.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26060 and 26120, Business and Professions Code.
§16301. Seed Production Requirements for Nursery Licensees.
Nursery licensees producing seed for distribution shall tag all mature plants with a plant tag pursuant to section 15048.4(b). All products, except seed, derived from these plants are prohibited from entering the commercial distribution chain.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26060 and 26067, Business and Professions Code.
§16302. Research and Development Requirements for Nursery Licensees.
Nursery licensees may maintain a research and development area, as identified in their cultivation plan, for the cultivation of mature plants. All mature plants shall be tagged with a plant tag pursuant to section 15048.4. All cannabis and cannabis products derived from these plants are prohibited from entering the commercial distribution chain or being transferred off the licensed premises.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26060 and 26067, Business and Professions Code.
§16303. Cultivation Requirements for Processor Licensees. (a) Processor licensees shall comply with all of the following requirements:
(1) All aggregation of product shall adhere to track and trace requirements. (2) Licensees may produce nonmanufactured cannabis products without a manufacturing license.
(3) Cultivation of cannabis plants is prohibited at a licensed processor premises.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26060, 26067, 26069 and 26120, Business and Professions Code. §16304. General Environmental Protection Measures.
(a) All licensed cultivators shall comply with all of the following environmental protection measures:
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 151 of 216 (1) Principles, guidelines, and requirements adopted pursuant to section 13149 of the Water Code and implemented by the State Water Resources Control Board, Regional Water Quality Control Boards, or California Department of Fish and Wildlife; (2) Any conditions of licensure included pursuant to section 26060.1(b)(1) of the Business and Professions Code;
(3) Requirements of section 7050.5(b) of the Health and Safety Code if human remains are discovered during cultivation activities;
(4) Requirements for generators pursuant to section 16306; (5) Requirements for pesticides pursuant to section 16307; (6) Outdoor lights used for safety or security purposes are shielded and downward facing; and
(7) Lights used for indoor or mixed-light cultivation are shielded from sunset to sunrise to reduce nighttime glare.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26060, 26066 and 26201, Business and Professions Code.
§16305. Renewable Energy Requirements.
(a) Beginning January 1, 2023, all holders of indoor, tier 2 mixed-light license types of any size, and all holders of nursery licenses using indoor or tier 2 mixed-light techniques shall ensure that electrical power used for commercial cannabis activity meets the average electricity greenhouse gas emissions intensity required by their local utility provider pursuant to the California Renewables Portfolio Standard Program in division 1, part 1, chapter 2.3, article 16 (commencing with section 399.11) of the Public Utilities Code.
(b) If a licensed cultivator’s average weighted greenhouse gas emission intensity, as calculated and reported upon license renewal pursuant to section 15020, is greater than the local utility provider’s greenhouse gas emission intensity, the licensee shall obtain carbon offsets to cover the excess in carbon emissions from the previous annual licensed period. The carbon offsets shall be purchased from one or more of the following recognized voluntary carbon registries:
(1) American Carbon Registry;
(2) Climate Action Reserve; or
(3) Verified Carbon Standard.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26060, 26066 and 26201, Business and Professions Code.
§16306. Generator Requirements.
(a) For the purposes of this section, “generator” means a stationary or portable compression ignition engine as defined in title 17, California Code of Regulations, section Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 152 of 216 93115.4.
(b) Licensed cultivators using generators rated at fifty (50) horsepower and greater shall demonstrate compliance with the Airborne Toxic Control Measure for stationary or portable engines, as applicable, established in title 17, California Code of Regulations, sections 93115-93116.5. Compliance shall be demonstrated by providing a copy of one of the following to the Department upon request:
(1) For portable engines, a Portable Equipment Registration Certificate provided by the California Air Resources Board; or
(2) For portable or stationary engines, a Permit to Operate or other proof of engine registration, obtained from the Local Air District with jurisdiction over the licensed premises.
(c) Licensed cultivators using generators rated below fifty (50) horsepower shall comply with the following by 2023:
(1) Either subsection (1)(A) or (1)(B):
(A) Meet the “emergency” definition for portable engines in title 17, California Code of Regulations, section 93116.2(a)(12), or the “emergency use” definition for stationary engines in title 17, California Code of Regulations, section 93115.4(a)(30); or (B) Operate eighty (80) hours or less in a calendar year; and (2) Either subsection (2)(A) or (2)(B):
(A) Meet Tier 3 with Level 3 diesel particulate filter requirements in title 13, California Code of Regulations, sections 2700-2711; or
(B) Meet Tier 4 requirements, or current engine requirements if more stringent, in title 40, Code of Federal Regulations, chapter I, subchapter U, part 1039, subpart B, section 1039.101.
(d) All generators used by licensed cultivators shall be equipped with non-resettable hour-meters. If a generator does not come equipped with a non-resettable hour-meter, an after-market non-resettable hour-meter shall be installed.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26060, 26066 and 26201, Business and Professions Code.
§16307. Pesticide Use Requirements.
(a) Licensed cultivators shall comply with all applicable pesticide statutes and regulations enforced by the Department of Pesticide Regulation.
(b) For all pesticides that are exempt from registration requirements, licensed cultivators shall comply with all applicable pesticide statutes and regulations enforced by the Department of Pesticide Regulation and the following pesticide application and storage protocols:
(1) Comply with all pesticide label directions;
(2) Store chemicals in a secure building or shed to prevent access by wildlife; Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 153 of 216 (3) Contain any chemical leaks and immediately clean up any spills; (4) Apply the minimum amount of product necessary to control the target pest; (5) Prevent offsite drift;
(6) Do not apply pesticides when pollinators are present; (7) Do not allow drift to flowering plants attractive to pollinators; (8) Do not spray directly to surface water or allow pesticide product to drift to surface water. Spray only when wind is blowing away from surface water bodies; (9) Do not apply pesticides when they may reach surface water or groundwater; and (10) Only use properly labeled pesticides. If no label is available, consult the Department of Pesticide Regulation.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26060, 26066 and 26201, Business and Professions Code.
§16308. Canopy Requirements.
(a) Licensed cultivators shall comply with the following requirements for canopy areas:
(1) Each canopy shall be marked with clearly identifiable physical boundaries around all areas that will contain mature plants. Physical boundaries include, but are not limited to, interior walls, shelves, greenhouse walls, hoop house walls, garden benches, hedgerows, fencing, garden beds, garden plots, or stakes delineating the perimeter. (2) Each canopy shall be of sufficient size to contain the mature plants in their entirety at any point in time. No portion of the plant is permitted to hang over an established canopy boundary.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013 and 26060, Business and Professions Code.
§16309. Cultivation Plan Requirements.
(a) Licensed cultivators shall establish and maintain a cultivation plan that includes all of the following:
(1) A premises diagram drafted in accordance with section 15006. (2) A cannabis waste management plan developed in accordance with section 17223. (3) A pest management plan developed in accordance with section 16310.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26051.5, and 26060, Business and Professions Code.
§16310. Pest Management Plan.
(a) The licensed cultivator shall develop a pest management plan that includes:
(1) The product name and active ingredient(s) of all pesticides to be applied to cannabis; Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 154 of 216 and
(2) Any integrated pest management protocols, including chemical, biological, and cultural methods, that will be used to prevent and control pests on the cultivation site.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26051.5 and 26060, Business and Professions Code.
§16311. Supplemental Water Source Information.
The following information shall be provided for each water source identified by the applicant:
(a) Retail water supply sources:
(1) If the water source is a retail water supplier, as defined in section 13575 of the Water Code, such as a municipal provider, provide the following:
(A) Name of the retail water supplier; and
(B) A copy of the most recent water service bill.
(2) If the water source is a small retail water supplier, such as a delivery service, and is subject to section 26060.1(a)(1)(B) of the Business and Professions Code and the retail water supplier contract is for delivery or pickup of water from a surface water body or an underground stream flowing in a known and definite channel, provide all of the following:
(A) The name of the retail water supplier under the contract; (B) The water source and geographic location coordinates, in either latitude and longitude or the California Coordinate System, of any point of diversion used by the retail water supplier to divert water delivered to the commercial cannabis business under the contract;
(C) The authorized place of use of any water right used by the retail water supplier to divert water delivered to the commercial cannabis business under the contract; (D) The maximum amount of water delivered to the commercial cannabis business for cannabis cultivation in any year; and
(E) A copy of the most recent water service bill.
(3) If the water source is a small retail water supplier, such as a delivery service, and is subject to section 26060.1(a)(1)(B) of the Business and Professions Code and the retail water supplier contract is for delivery or pickup of water from a groundwater well, provide all of the following:
(A) The name of the retail water supplier under the contract; (B) The geographic location coordinates for any groundwater well used to supply water delivered to the commercial cannabis business, in either latitude and longitude or the California Coordinate System;
(C) The maximum amount of water delivered to the commercial cannabis business for cannabis cultivation in any year;
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 155 of 216 (D) A copy of the well completion report filed with the Department of Water Resources pursuant to section 13751 of the Water Code for each percolating groundwater well used to divert water delivered to the commercial cannabis business. If no well completion report is available, the applicant shall provide evidence from the Department of Water Resources indicating that the Department of Water Resources does not have a record of the well completion report. When no well completion report is available, the State Water Resources Control Board may request additional information about the well; and (E) A copy of the most recent water service bill.
(b) If the water source is a groundwater well, provide the following:
(1) The groundwater well’s geographic location coordinates, in either latitude and longitude or the California Coordinate System; and
(2) A copy of the well completion report filed with the Department of Water Resources pursuant to section 13751 of the Water Code. If no well completion report is available, the applicant shall provide evidence from the Department of Water Resources indicating that the Department of Water Resources does not have a record of the well completion report. If no well completion report is available, the State Water Resources Control Board may request additional information about the well.
(c) If the water source is a rainwater catchment system, provide the following:
(1) The total square footage of the catchment footprint area(s); (2) The total storage capacity, in gallons, of the catchment system(s); and (3) A detailed description and photographs of the rainwater catchment system infrastructure, including the location, size, and type of all surface areas that collect rainwater. Examples of rainwater collection surface areas include a rooftop and greenhouse.
(d) If the water source is a diversion from a waterbody (such as a river, stream, creek, pond, lake, etc.), provide any applicable water right statement, application, permit, license, or small irrigation use registration identification number(s), and either:
(1) A copy of any applicable statement, registration certificate, permit, license, or proof of a pending application issued under part 2 (commencing with section 1200) of division 2 of the California Water Code as evidence of approval of a water diversion by the State Water Resources Control Board; or
(2) If the commercial cannabis business has claimed an exception from the requirement to file a statement of diversion and use pursuant to section 5101 of the Water Code, provide a copy of the documentation submitted to the State Water Resources Control Board before January 1, 2019, demonstrating that the diversion is subject to subdivision (a), (c), (d), or (e) of section 5101 of the Water Code.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013 and 26060.1, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 156 of 216 Article 3. Release of Information to Financial Institutions §16410. Cultivation Licensee Authorization to Release Data to Financial Institutions.
(a) A cultivation licensee may authorize the Department to provide information to a financial institution for purposes of facilitating the provision of financial services. The authorization shall be made in writing, through a form prescribed by the Department, which shall include the following information:
(1) The name of the licensed business for which the licensee is authorizing the release of information;
(2) The business's license number(s);
(3) The financial institution authorized to receive information; (4) The name, phone number, email address, and signature of the owner submitting the authorization;
(5) The categories of information specified in subsection (b) that are authorized for release; and
(6) An acknowledgement that the authorization to release information includes information that is otherwise protected from disclosure, that the licensee is waiving privilege and confidentiality, and that the scope of the release is strictly limited for the purposes of disclosure to the financial institution.
(b) After receipt of the authorization from a cultivation licensee, the Department shall release the following information, when requested by an authorized financial institution pursuant to section 16411 of this division:
(1) The license application(s), including renewal applications, excluding information required to be kept confidential pursuant to Penal Code section 11105 and confidential personal information of individual owners of the licensed business; (2) Information captured in the track and trace system established pursuant to Business and Professions Code section 26067, including, but not limited to, aggregated sales or transfer information, as applicable;
(3) Documents issued to the licensee pursuant to disciplinary or enforcement proceedings;
(c) A cultivation licensee may withdraw the authorization to provide information to a financial institution at any time. The withdrawal shall be made in writing, through a form prescribed by the Department, and shall include the following information:
(1) The name of the licensed business for which the licensee is withdrawing the authorization of the release of information;
(2) The business's license number(s);
(3) The financial institution from which authorization to receive information is withdrawn; Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 157 of 216 (4) The name, phone number, email address, and signature of the owner submitting the withdrawal.
Authority: Section 26013, Business and Professions Code. Reference: Section 26260, Business and Professions Code.
§16411. Financial Institution Request for Cultivation Licensee Information.
A financial institution as defined in Business and Professions Code section 26260(c)(3) may request information related to a cultivation licensee for purposes of facilitating the provision of financial services for that licensee. The request shall be made in writing, through a form prescribed by the Department, which shall include the following information:
(a) The name of the financial institution;
(b) The name, phone number, email, and signature of the representative of the financial institution requesting information;
(c) The business name and license number of the licensee for which the financial institution is requesting information;
(d) The type of financial services for which the information is requested (including, but not limited to, establishment or maintenance of bank accounts, extending loans, and providing insurance) and whether the request is for consideration of a new service or maintenance of an existing service;
(e) The specific information requested as described in section 16410(b) if authorized by the licensee; and
(f) An acknowledgment that use of the information is limited to that which is necessary for the provision of financial services.
Authority: Section 26013, Business and Professions Code. Reference: Section 26260, Business and Professions Code.
Chapter 8. Manufacturers
Article 1. Manufacturing Licenses
§17006. Manufacturing License Types.
The following manufacturing license types are available from the Department:
(a) “Type 7,” for extractions using volatile solvents as defined by section 15000(xxx). A Type 7 licensee may also:
(1) Conduct extractions using nonvolatile solvents or mechanical methods on the licensed premises, provided that the extraction process is noted on the application and the relevant information pursuant to section 15011(b) is provided to the Department; (2) Conduct infusion operations on the licensed premises, provided the infusion operations and product types are noted on the application and the relevant information Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 158 of 216 pursuant to section 15011(b) is provided to the Department; (3) Conduct packaging and labeling of cannabis products on the licensed premises; and (4) Register and operate the licensed premises as a shared-use facility in accordance with article 2 (commencing with section 17124) of chapter 8. (b) “Type 6,” for extractions using mechanical methods or nonvolatile solvents as defined by section 15000(uu). A Type 6 licensee may also:
(1) Conduct infusion operations on the licensed premises, provided the infusion operations and product types are noted on the application and the relevant information pursuant to section 15011(b) is provided to the Department; (2) Conduct packaging and labeling of cannabis products on the licensed premises; and (3) Register and operate the licensed premises as a shared-use facility in accordance with article 2 (commencing with section 17124) of chapter 8. (c) “Type N,” for manufacturers that produce cannabis products other than extracts or concentrates that are produced through extraction. A Type N licensee may also:
(1) Conduct packaging and labeling of cannabis products on the licensed premises; and (2) Register and operate the licensed premises as a shared-use facility in accordance with article 2 (commencing with section 17124) of chapter 8. (d) “Type P,” for manufacturers that only package or repackage cannabis products or label or relabel cannabis product containers or wrappers. (e) “Type S,” for manufacturers that conduct commercial cannabis manufacturing activities in accordance with article 2 (commencing with section 17124) of chapter 8 at a registered shared-use facility.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26012, 26050 and 26130, Business and Professions Code. §17009. Additional Activities.
In addition to the activities specified in section 17006, a licensed manufacturer may also roll and package pre-rolls and package dried cannabis flower.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26012 and 26130, Business and Professions Code. §17117. License Constraints.
(a) A manufacturer licensee shall not manufacture, prepare, package or label any products other than cannabis products at the licensed premises. (b) No licensee shall employ or retain an individual under 21 years of age. (c) A manufacturer licensee shall only use cannabinoid concentrates and extracts that are manufactured or processed from cannabis obtained from a licensed cannabis cultivator.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 159 of 216 (d) A manufacturer licensee shall not manufacture, prepare, package, or label cannabis products in a location that is operating as a retail food establishment or as a processed food registrant.
(e) A manufacturer licensee shall not manufacture, prepare, package, or label cannabis products in a location that is licensed by the Department of Alcoholic Beverage Control pursuant to division 9 (commencing with section 23000) of the Business and Professions Code.
Authority: Section 26013 and 26130, Business and Professions Code. Reference:
Sections 26050 and 26140, Business and Professions Code. §17123.1. Manufacturing Licensee Authorization to Release Data to Financial Institutions.
(a) A manufacturing licensee may authorize the Department to provide information to a financial institution for purposes of facilitating the provision of financial services. The authorization shall be made in writing, through a form prescribed by the Department, which shall include the following information:
(1) The name of the licensed business for which the licensee is authorizing the release of information;
(2) The business’s license number(s);
(3) The financial institution authorized to receive information; (4) The name, phone number, email address, and signature of the owner submitting the authorization;
(5) The categories of information specified in subsection (b) that are authorized for release; and
(6) An acknowledgement that the authorization to release information includes information that is otherwise protected from disclosure, and waiving privilege and confidentiality is strictly for purposes of disclosure to the financial institution. (b) After receipt of the authorization from a manufacturing licensee, the Department shall release the following information, as designated by the licensee, when requested by an authorized financial institution pursuant to section 17123.2 of this division:
(1) The license application(s), including renewal applications, excluding information required to be kept confidential pursuant to Penal Code section 11105 and confidential personal information of individual owners of the licensed business; (2) Information captured in the track and trace system established pursuant to Business and Professions Code section 26067, including, but not limited to, aggregated sales or transfer information, as applicable; and
(3) Documents issued to the licensee pursuant to disciplinary or enforcement proceedings.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 160 of 216 (c) A licensee may withdraw the authorization to provide information to a financial institution at any time. The withdrawal shall be made in writing, through a form prescribed by the Department, and shall include the following information:
(1) The name of the licensed business for which the licensee is withdrawing the authorization of the release of information;
(2) The business’s license number(s);
(3) The financial institution from which authorization to receive information is withdrawn; and
(4) The name, phone number, email address, and signature of the owner submitting the withdrawal.
Authority: Section 26013, Business and Professions Code. Reference: Section 26260, Business and Professions Code.
§17123.2. Financial Institution Request for Manufacturing Licensee Information.
A financial institution as defined in Business and Professions Code section 26260(c)(3) may request information related to a manufacturing licensee for purposes of facilitating the provision of financial services for that licensee. The request shall be made in writing, through a form prescribed by the Department, which shall include the following information:
(a) The name of the financial institution;
(b) The name, phone number, email, and signature of the representative of the financial institution requesting information;
(c) The business name and license number of the licensee for which the financial institution is requesting information;
(d) The type of financial services for which the information is requested (including, but not limited to, establishment or maintenance of bank accounts, extending loans, and providing insurance) and whether the request is for consideration of a new service or maintenance of an existing service;
(e) The specific information requested as described in section 17123.1(b) if authorized by the licensee; and
(f) An acknowledgment that use of the information is limited to that which is necessary for the provision of financial services.
Authority: Section 26013, Business and Professions Code. Reference: Section 26260, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 161 of 216 Article 2. Shared-Use Facilities
§17124. Definitions.
For purposes of this article, the following definitions shall apply:
(a) “Common-use area” means any area of the manufacturer’s registered shared-use facility, including equipment that is available for use by more than one licensed manufacturer, provided that the use of a common-use area is limited to one licensee at a time.
(b) “Designated area” means the area of the manufacturer’s registered shared-use facility that is designated by the primary licensee for the sole and exclusive use of a Type S licensee, including storage of the Type S licensee’s cannabis, cannabis concentrates, and cannabis products.
(c) “Primary licensee” means the Type 7, Type 6, or Type N licensee that has registered and been approved to operate its licensed premises as a shared-use facility. (d) “Shared-use facility” means a manufacturing premises operated by a Type 7, Type 6, or Type N licensee in which Type S licensees are authorized to conduct manufacturing operations.
(e) “Use agreement” means a written agreement between a primary licensee and a Type S commercial cannabis business or licensee that specifies the designated area of the Type S licensee, the days and hours in which the Type S licensee is assigned to use the common-use area, any allocation of responsibility for compliance pursuant to section 17128, and an acknowledgement that the Type S licensee has sole and exclusive use of the common-use area during the Type S licensee’s assigned time period.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26001, 26050, 26051.5 and 26130, Business and Professions Code. §17126. Registration to Operate a Shared-Use Facility.
(a) No licensed manufacturer shall operate as a shared-use facility without prior approval by the Department.
(b) To register as a shared-use facility, a Type 7, Type 6, or Type N licensee shall submit the following to the Department through the online licensing system:
(1) A copy of the license, permit, or other authorization issued by the local jurisdiction that enables the licensee to operate as a shared-use facility. The Department shall contact the applicable local jurisdiction to confirm the validity of the authorization upon receipt of the application for registration. If the local jurisdiction does not respond within 10 calendar days, the Department shall consider the authorization valid. (2) A registration form prescribed by the Department, which includes the following information:
(A) The proposed occupancy schedule that specifies the days and hours the commonuse area will be available for use by Type S licensees and when the common-use area will be used by the primary licensee. The occupancy schedule shall allow for Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 162 of 216 maintenance and sanitizing between uses by individual licensees. (B) A diagram indicating:
(i) Each designated area for Type S licensee(s).
(ii) The common-use area, including identification of any shared equipment. (c) The Department shall notify the Type 7, Type 6, or Type N licensee upon approval of the registration to operate as a shared-use facility. Notification shall be made through the online licensing system.
(d) At least one business day prior to a Type S licensee commencing manufacturing operations at a registered shared-use facility, the primary licensee shall provide written notification to the Department. The notification to the Department shall include the Type S licensee’s business name, contact person, contact phone number, and license number. The primary licensee shall also provide an updated occupancy schedule that includes the Type S licensee and an updated diagram that specifies the Type S licensee’s designated area. Notification shall be provided by email or through the online licensing system.
(e) A primary licensee that wishes to discontinue operation as a shared-use facility may cancel its registration by providing written notice to the Department and each Type S licensee authorized to use the shared-use facility at least 30 calendar days prior to the effective date of the cancellation.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26051.5, 26055 and 26130, Business and Professions Code. §17127. Shared-Use Facility Conditions for Operation.
(a) A primary licensee shall operate the shared-use facility in accordance with the conditions of operation specified in this section.
(b) Each Type S licensee shall be assigned a “designated area” that, at minimum:
(1) Is for exclusive use by the Type S licensee; and
(2) Provides an area for storage that is secure, fixed in place, locked with a commercialgrade lock, and accessible only to the Type S licensee for storage of that Type S licensee’s cannabis, cannabis concentrates, and cannabis products. (c) Any part of the premises used for manufacturing activities that is a common-use area shall be occupied by only one licensee at a time by restricting the time period that each licensee may use the common-use area. During the assigned time period, one licensee shall have sole and exclusive occupancy of the common-use area. (d) The use of the shared-use facility shall be restricted to the primary licensee and the Type S licensees authorized by the Department to use the shared-use facility. (e) Any cannabis product or other materials remaining after a Type S licensee ceases operation and discontinues use of its designated area shall be considered cannabis waste and disposed of by the primary licensee consistent with the requirements of the Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 163 of 216 Act and this division.
(f) The shared-use facility shall meet all applicable requirements of the Act and this division.
(g) The occupancy schedule shall be prominently posted near the entrance to the shared-use facility.
(h) The primary licensee may conduct manufacturing activities as permitted under its Type 7, Type 6, or Type N license and may use the common-use area during its scheduled time period.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26130, Business and Professions Code. §17128. Shared-Use Facility Compliance Requirements.
(a) As part of the use agreement, the primary licensee and the Type S licensee(s) may allocate responsibility for providing and maintaining commonly used equipment and services, including, but not limited to, security systems, fire monitoring and protection services, and waste disposal services. However, the Department may take enforcement action against either the primary licensee or Type S licensee(s) regardless of the allocation of responsibility in the use agreement.
(b) A primary licensee or a Type S licensee is liable for any violation found at the shareduse facility during that licensee’s scheduled occupancy or within that licensee’s designated area. However, a violation of any provision of the Act or this division may be deemed a violation for which each Type S licensee and the primary licensee are responsible. In the event of a recall or embargo of a cannabis product produced at a shared-use facility, the Department, in its sole discretion, may include any or all cannabis products produced at the shared-use facility.
(c) The occupancy schedule and designated area for a Type S licensee shall not be altered without prior notification to the Department. Prior to making any changes to the occupancy schedule or the designated area, written notification that includes the intended changes shall be submitted by email or through the Department’s online licensing system.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5, 26055 and 26130, Business and Professions Code.
Article 3. Solvent Use and Safety
§17202.1. General Requirements for Extraction and Post-Extraction Processing. (a) A licensed manufacturer that uses a volatile solvent, a flammable liquid, or a solvent that creates an asphyxiant gas shall ensure that the solvent is used in accordance with the requirements of:
(1) Chapter 39 of the California Fire Code;
(2) Title 8, California Code of Regulations, sections 5416-5420, which includes ensuring Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 164 of 216 adequate ventilation and controlling sources of ignition; (3) All Division of Occupational Safety and Health (Cal/OSHA) regulations related to the processing, handling, and storage of the applicable solvent; and (4) All fire, safety, and building code requirements related to the processing, handling, and storage of the applicable solvent or gas.
(b) No volatile solvent extraction or post-extraction processing operations or other closed-loop system operations shall occur in an area zoned as residential.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5, 26105 and 26130, Business and Professions Code. §17203. Permissible Extractions.
(a) Except as provided in subsection (b), cannabis extraction shall only be conducted using the following methods:
(1) Mechanical extraction;
(2) Chemical extraction using a nonvolatile solvent, as defined in section 15000(uu). (3) Chemical extraction using CO2 gas in a professional closed-loop extraction system. (4) Chemical extraction using a volatile solvent, as defined in section 15000(xxx), in a professional closed-loop extraction system; or
(5) Any other method authorized by the Department pursuant to subsection (b). (b) To request authorization from the Department to conduct cannabis extraction using a method other than those specified in subsections (a)(1) through (4), the applicant or licensee shall submit a detailed description of the extraction method, including any documentation that validates the method and any safety procedures to be utilized to mitigate any risk to public or worker health and safety.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26130, Business and Professions Code. §17204. Solvent Requirements.
(a) Any solvents used for extraction or post-extraction processing shall meet the following minimum purity requirements:
(1) Hydrocarbon-based solvents shall be at least 99 percent purity. (2) Nonhydrocarbon-based solvents shall be food-grade.
(3) CO2 gas used for extraction shall be food-grade.
(4) Ethanol shall be food-grade in accordance with 21 CFR, part 184, subpart B, section 184.1293. Ethanol that meets the requirements of food-grade may be combined with another food-grade solvent or a hydrocarbon that meets the requirements of subsection (a)(1) of this section, provided that the use of the solvent mixture is pre-approved by the Department.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 165 of 216 (5) Water and ice shall be potable.
(6) Dry ice shall be food-grade.
(b) The licensed manufacturer shall maintain copies of the safety data sheets for any chemical solvents used and make these records readily available to employees and to the Department upon request.
(c) The licensed manufacturer shall maintain documentation evidencing the purity of any chemical solvents used and make these records readily available to employees and to the Department upon request.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5, 26105 and 26130, Business and Professions Code. §17205. Additional Requirements for Ethanol Operations.
A licensed manufacturer that uses ethanol in manufacturing operations for extractions or post-extraction processing shall receive approval for the facility and equipment from the local fire code official prior to commencing operations, if required by local ordinance.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26130, Business and Professions Code. §17206. Closed-Loop Extraction System Requirements.
(a) Chemical extractions using CO2; a volatile solvent; or chlorofluorocarbon, hydrocarbon, or other fluorinated gas shall be conducted in a professional closed-loop extraction system designed to recover the solvents. The system shall be commercially manufactured and bear a permanently affixed and visible serial number. The system shall be certified after installation by a California-licensed engineer as commercially manufactured, safe for use with the intended solvent, and built to codes of recognized and generally accepted good engineering practices, such as:
(1) The American Society of Mechanical Engineers (ASME); (2) American National Standards Institute (ANSI);
(3) Underwriters Laboratories (UL); or
(4) The American Society for Testing and Materials (ASTM). (b) The licensed manufacturer shall establish and implement procedures to ensure that the closed-loop extraction system is maintained in accordance with the equipment manufacturer specifications. The licensee shall maintain logs documenting the date(s) of maintenance; description of the maintenance done, including any machine parts that were replaced; and the initials of the employee conducting the maintenance. (c) The certification document required pursuant to subsection (a) shall contain the signature and stamp of a California-licensed professional engineer and the serial number of the extraction unit being certified.
(d) The licensed manufacturer shall establish and implement procedures to ensure Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 166 of 216 routine verification that the system is operating in accordance with equipment manufacturer specifications and continues to comply with fire, safety, and building code requirements. The licensed manufacturer shall conduct any verification recommended by the equipment manufacturer. The licensed manufacturer shall maintain logs documenting the date(s) of verification, description of the verification method, and the initials of the employee conducting the verification.
(e) A licensed manufacturer shall establish and implement standard operating procedures, good manufacturing practices, and a training plan prior to using the closedloop system. Any personnel using solvents or gases in a closed-loop system shall have direct access to applicable safety data sheets. Personnel shall be trained on how to use the system and handle and store solvents and gases safely prior to operating the system.
The training shall be documented in accordance with section 17211.1. (f) Professional closed-loop systems, other equipment used, the extraction operation, and facilities shall be approved for use by the local fire code official prior to commencing operation of the closed-loop system, if required by local ordinance. (g) The facility shall have a gas detection system that meets the requirements of title 24, California Code of Regulations, sections 3905.1-3905.2. (h) All procedures and logs described in this section shall be in writing and made available to the Department upon request.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5, 26105 and 26130, Business and Professions Code.
Article 4. Good Manufacturing Practices
§17207. Manufacturing Practices Definitions.
In addition to the definitions in section 26001 of the Act and section 15000 of this division, the following definitions shall govern the construction of this article:
(a) “Allergen cross-contact” means the unintentional incorporation of a food allergen into a cannabis product.
(b) “Component” means any substance or item intended for use in the manufacture of a cannabis product, including those substances or items that are not intended to appear in the finished cannabis product. “Component” includes cannabis, cannabis products used as ingredients, raw materials, other ingredients, and processing aids. (c) “Contact surface” means any surface that contacts cannabis products and cannabis product components and those surfaces from which drainage, or other transfer, onto the cannabis product or cannabis product components, occurs during the normal course of operations. Examples of contact surfaces include containers, utensils, tables, and equipment.
(d) “Easily cleanable” means a characteristic of a surface that allows effective removal of soil, food residue, or other organic or inorganic materials by normal cleaning methods.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 167 of 216 (e) “Environmental pathogen” means a pathogen capable of surviving and persisting within the manufacturing environment such that cannabis products may be contaminated and may result in illness if consumed or used without treatment to significantly minimize the environmental pathogen. Examples of environmental pathogens include Listeria monocytogenes and Salmonella spp. but do not include the spores of pathogenic sporeforming bacteria. (f) “Hazard” means any biological, chemical, radiological, or physical agent that has the potential to cause illness or injury.
(g) “Holding” means storage of cannabis or cannabis products and includes activities performed incidental to storage of a cannabis product and activities performed as a practical necessity for the distribution of that cannabis product. (h) “Microorganisms” means yeasts, molds, bacteria, viruses, protozoa, and microscopic parasites and includes species that are pathogens. The term “undesirable microorganisms” includes those microorganisms that are pathogens, that subject a cannabis product to decomposition, that indicate that a cannabis product is contaminated with filth, or that otherwise may cause a cannabis product to be adulterated. (i) “Monitor” means to conduct a planned sequence of observations or measurements to assess whether preventive measures are operating as intended. (j) “Pathogen” means a microorganism that can cause illness or injury. (k) “Potable” means water that meets the requirements of Health and Safety Code section 113869.
(l) “Preventive measures” means those risk-based, reasonably appropriate procedures, practices, and processes that a person knowledgeable about the safe manufacturing, processing, packing, or holding of food would employ to significantly minimize or prevent the hazards identified pursuant to a product quality plan as specified in section 17214. (m) “Processing aid” means any substance that is added to a cannabis product during manufacture but is removed in some manner from the cannabis product before it is packaged in its finished form. This includes substances that are converted into constituents normally present in the product, and do not significantly increase the amount of the constituent naturally found in the product. This also includes substances that are added to a product for their technical or functional effect in the processing but are present in the finished product at insignificant levels and do not have any technical or functional effect in that product.
(n) “Qualified individual” means a person who has the education, training, or experience (or a combination thereof) necessary to manufacture quality cannabis products as appropriate to the individual's assigned duties. A qualified individual may be, but is not required to be, an employee of the licensed manufacturer. (o) “Quality control” means a planned and systematic operation or procedure for ensuring the quality of a cannabis product.
(p) “Quality control operation” means a planned and systematic procedure for taking all actions necessary to prevent cannabis product(s) from being adulterated or misbranded.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 168 of 216 (q) “Quality control personnel” means any person, persons, or group designated by the licensed manufacturer to be responsible for quality control operations. (r) “Raw material” means any unprocessed material in its raw or natural state that is intended to become part of the components of a cannabis product. (s) “Sanitize” means to treat cleaned surfaces by a process that is effective in destroying vegetative cells of pathogens and substantially reducing numbers of other undesirable microorganisms, but without adversely affecting the product or its safety for the consumer.
(t) “Smooth” means any of the following:
(1) A contact surface that is free of pits, pinholes, cracks, crevices, inclusions, rough edges, and other surface imperfections detectable by visual or tactile inspection. (2) A floor, wall, or ceiling having an even or level surface with no roughness or projections that render it difficult to clean.
(u) “Utensil” means an implement, tool, or container used in the storage, preparation, manufacture, or processing of cannabis and cannabis products. In addition to kitchenware, examples of utensils include, but are not limited to, gloves, screens, sieves, implements to create pre-rolls, buckets, and scissors.
(v) “Validate” means obtaining and evaluating scientific and technical evidence that a control measure, combination of control measures, or set of quality control procedures, when properly implemented, is capable of ensuring the quality of a cannabis product or effectively controlling an identified hazard.
(w) “Verification” means the application of methods, procedures, tests, or other evaluations, in addition to monitoring, to determine whether a control measure or combination of control measures is or has been operating as intended and to establish the validity of the quality control procedures.
(x) “Yield” means the quantity of a particular cannabis product expected to be produced at a given step of manufacture or packaging, as identified in the master manufacturing protocol. The expected yield is based upon the quantity of components or packaging to be used, in the absence of any loss or error in actual production. “Actual yield” means the quantity of a particular cannabis product that is actually produced at a given step of manufacture or packaging that is recorded in the batch production record.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26001 and 26130, Business and Professions Code. §17208. Quality Control Program.
(a) A licensed manufacturer shall establish and implement a quality control program to ensure that cannabis products are not adulterated or misbranded. The quality control program shall describe how the licensee will comply with the following:
(1) Grounds, building, and manufacturing premises standards, as specified in section 17209;
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 169 of 216 (2) Equipment and utensil requirements, as specified in section 17210; (3) Personnel procedures, as specified in section 17211; (4) Cannabis product component procedures, as specified in section 17212; and (5) Manufacturing processes and procedures, as specified in section 17213. (b) The quality control program shall be under the supervision of one or more qualified individuals assigned responsibility for this function.
(c) For purposes of this article, for those requirements that are contained in the Health and Safety Code, use of the term “food” shall include cannabis, cannabis products, components, and contact surfaces.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26131, Business and Professions Code. §17209. Grounds, Building, and Manufacturing Premises.
(a) Exterior facility and grounds. A licensed manufacturer shall ensure the facility exterior and grounds under the licensed manufacturer’s control meet the following minimum standards:
(1) Grounds shall be equipped with draining areas in order to prevent pooled or standing water;
(2) Weeds, grass, and vegetation shall be cut within the immediate vicinity of the cannabis manufacturing premises, litter and waste shall be removed, and equipment shall be stored in order to minimize the potential for the grounds to constitute an attractant, breeding place, or harborage for pests;
(3) Roads, yards, and parking lots shall be maintained so that these areas do not constitute a source of contamination in areas where cannabis products are handled or transported;
(4) Openings into the building (such as windows, exhaust fans, ventilation ducts, or plumbing vent pipes) shall be screened, sealed, or otherwise protected to minimize potential for pests to enter the building;
(5) Waste treatment and disposal systems shall be provided and maintained so as to prevent contamination in areas where cannabis products may be exposed to such a system’s waste or waste by-products.
(6) A licensed manufacturer shall implement precautions within the premises, such as inspection or extermination, if the premises is bordered by grounds outside the licensed manufacturer’s control that are not maintained in the manner described in subsections (1) through (5), in order to eliminate any pests, dirt, and filth that pose a source of cannabis product contamination. Any use of insecticide, rodenticide, or other pesticide within the premises shall meet the requirements of Health and Safety Code section 114254.
(b) Interior facility. A licensed manufacturer shall ensure construction, design, and maintenance of the interior of the manufacturing premises as follows:
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 170 of 216 (1) Walls, ceilings, and floors. Walls, ceilings, and floors shall be constructed of material that is smooth, nonporous, easily cleanable, corrosion-resistant, and suitable to the activity that will be conducted. Fixtures, ducts, and pipes shall not pose a source of drip or condensate that may contaminate cannabis, cannabis products, components, contact surfaces, or packaging material.
(2) Lighting. Interior facility lighting shall meet the requirements of the Health and Safety Code section 114252, subdivisions (a)(1) and (3), (b)(3) and (4), and (c). Interior facility lighting shall also meet the requirements for shatter-resistant lighting in Health and Safety Code section 114252.1. The requirements of Health and Safety Code section 114252.1(a), shall also apply to all areas where glass breakage may result in the contamination of exposed cannabis, cannabis products, components, contact surfaces, or packaging material.
(3) Plumbing system and fixtures.
(A) Water supply. Running water shall be supplied as required by Health and Safety Code section 114192 in all areas where required for the manufacturing of cannabis products; in all areas used for the cleaning of equipment, utensils, and packaging materials; and for employee sanitary facilities. Water that contacts cannabis, cannabis products, components, contact surfaces, or packaging materials shall be potable. (B) Plumbing. Plumbing systems shall meet the requirements of Health and Safety Code section 114190.
(C) Sewage disposal. The sewage system shall be maintained and kept in good repair so that it does not pose a potential source of contamination of cannabis, cannabis products, components, contact surfaces, or packaging materials.
(D) Toilet facilities. A licensed manufacturer shall provide employees with access to toilet facilities that meet the requirements of Health and Safety Code section 114250. Toilet facilities shall be kept clean and shall not pose a potential source of contamination of cannabis, components, cannabis products, contact surfaces, or packaging materials. (E) Hand-washing facilities. A licensed manufacturer shall provide hand-washing facilities that meet the requirements of Health and Safety Code sections 113953(a)-(d) and 113953.2.
(F) Waste disposal. A licensed manufacturer shall provide for waste disposal in accordance with Health and Safety Code sections 114244(a) and (c) and 114245.1.
Cannabis waste shall be disposed of in accordance with section 17223. (4) Ventilation. Ventilation systems shall meet the requirements of Health and Safety Code sections 114149 and 114149.3.
(5) Cleaning and maintenance. The premises, including any fixtures, and other physical facilities therein, shall be maintained in a clean and sanitary condition and kept in good repair so as to prevent cannabis products from becoming adulterated, and shall meet the requirements of Health and Safety Code section 114257.1. (A) The premises shall have a janitorial facility that meets the requirements of Health and Safety Code section 114279(a).
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 171 of 216 (B) Cleaning equipment and supplies shall be stored in a manner that meets the requirements of Health and Safety Code section 114281.
(C) Poisonous or toxic materials such as cleaning compounds, sanitizing agents, and pesticide chemicals that are necessary for premises and equipment maintenance and operation shall be handled and stored in a manner that meets the requirements of Health and Safety Code sections 114254.1, 114254.2 and 114254.3.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26131, Business and Professions Code. §17210. Equipment and Utensils.
(a) Design and construction. Equipment and utensils shall meet the requirements of Health and Safety Code sections 114130.1, 114130.2, 114130.3, and 114130.4 and shall be used in accordance with their operating instructions to avoid the adulteration of cannabis products with lubricants, fuel, metal fragments, contaminated water, or any other contaminants.
(b) Installation. Equipment shall be installed so as to allow cleaning and maintenance of the equipment and of adjacent spaces. Equipment that is not easily moveable shall meet the requirements of Health and Safety Code section 114169. (c) Cleaning, sanitizing, and maintenance. Equipment and utensils shall be maintained in a clean and sanitary condition and kept in good repair. The quality control program for cleaning, sanitizing, and maintenance of equipment and utensils shall include the following elements, at minimum:
(1) A detailed, written procedure for cleaning, sanitizing, and maintaining (including calibrating) equipment and utensils;
(2) A schedule for cleaning, sanitizing, and maintaining equipment and utensils; (3) A log for documentation of the date and time of maintenance, cleaning, and sanitizing of equipment and utensils; and
(4) A procedure for storing cleaned and sanitized equipment and utensils in a manner to protect the equipment and utensils from contamination.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26131, Business and Professions Code. §17211. Manufacturing Personnel.
(a) Licensed manufacturers shall establish and implement procedures for personnel that include, at minimum:
(1) Disease control. Any individual who by medical examination or supervisory observation is shown to have, or appears to have, an illness specified in Health and Safety Code section 113949.2(a) or an open lesion (e.g., boil, sore, cut, rash, or infected wound), unless covered in accordance with the requirements of Health and Safety Code section 113949.2(b), shall be excluded from any manufacturing operations until their Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 172 of 216 health condition is corrected. Personnel shall be instructed to report such health conditions to their supervisors.
(2) Cleanliness. All individuals working in direct contact with cannabis, cannabis products, components, contact surfaces, and packaging materials shall maintain personal cleanliness in order to protect against allergen cross-contact and contamination of cannabis products while on duty. The methods for maintaining personal cleanliness include:
(A) Wearing clean outer clothing to protect against allergen cross-contact and contamination of cannabis, cannabis products, components, contact surfaces, and packaging materials;
(B) Washing hands thoroughly in a hand-washing facility that meets the requirements of section 17209 before starting work, after each absence from a work station, at any time specified in Health and Safety Code section 113953.3, and at any time when the hands may have become soiled or contaminated;
(C) Removing all unsecured jewelry and other objects that might fall into cannabis, cannabis products, components, equipment, or containers. Hand jewelry that cannot be sanitized shall be removed during periods in which cannabis products are manipulated by hand. If such hand jewelry cannot be removed, it shall be covered by material that can be maintained in an intact, clean, and sanitary condition and that effectively protects against contamination by these objects of cannabis, cannabis products, components, contact surfaces, and packaging materials;
(D) Maintaining gloves used in cannabis product handling in an intact, clean, and sanitary condition;
(E) Wearing hair nets, caps, beard covers, or other hair restraints that are designed and worn to prevent hair contact with cannabis, cannabis products, components, contact surfaces, and packaging materials;
(F) Storing clothing and personal belongings in areas separate from those where cannabis products are exposed or where equipment or utensils are washed; and (G) Confining the following activities to areas separate from those where cannabis products may be exposed or where equipment or utensils are washed: eating food, chewing gum, drinking beverages, and using tobacco.
(3) Nothing in this section prohibits a licensed manufacturer from establishing additional precautions to protect against allergen cross-contact and contamination of cannabis, cannabis products, components, contact surfaces, and packaging materials by microorganisms or foreign substances (e.g., perspiration, hair, cosmetics, tobacco, chemicals, and medicines applied to the skin).
(4) The procedures for manufacturing personnel shall be in writing and made available to the Department upon request.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26131, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 173 of 216 §17211.1. Training Program.
(a) A manufacturing licensee shall establish and implement a training program to ensure that all personnel present at the premises are provided information and training that, at minimum, covers the following topics:
(1) Within 30 days of the start of employment:
(A) Health and safety hazards;
(B) Hazards presented by all solvents or chemicals used at the licensed premises as described in the safety data sheet for each solvent or chemical; (C) Emergency response procedures;
(D) Security procedures;
(E) Record keeping requirements; and
(F) Training requirements.
(2) Prior to independently engaging in any cannabis manufacturing process:
(A) An overview of the cannabis manufacturing process and standard operating procedure(s);
(B) Quality control procedures;
(C) Product quality plans developed in accordance with section 17214; (D) Proper and safe usage of equipment or machinery;
(E) Safe work practices applicable to an employee’s job tasks, including appropriate use of any necessary safety or sanitary equipment;
(F) Cleaning and maintenance requirements;
(G) Emergency operations, including shutdown; and
(H) Any additional information reasonably related to an employee’s job duties. (3) Additionally, a manufacturing licensee that produces edible cannabis products shall ensure that all personnel who prepare, handle, or package edible products successfully complete a California food handler certificate course from an entity accredited by the American National Standards Institute (ANSI) within 90 days of commencing employment at the premises and again every three years during employment. A manufacturing licensee shall obtain documentation evidencing the fulfillment of this requirement; (b) A manufacturing licensee shall ensure that all personnel receive annual refresher training to cover, at minimum, the topics listed in subsection (a). This annual refresher training must be completed within 12 months of the previous training completion date. (c) A manufacturing licensee shall maintain a record of training containing, at minimum:
(1) A list of all personnel at the premises including, at minimum, name and job duties of each individual;
(2) Documentation of training topics and dates of training completion, including refresher training, for all personnel;
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 174 of 216 (3) The signatures of each individual and the licensee verifying receipt and understanding of each training or refresher training completed by the individual; and (4) Any official documentation attesting to the successful completion of required training by personnel.
(d) A manufacturing licensee may assign responsibility for the training of individual personnel to supervisory personnel. Assigned supervisory personnel must have the education, training, or experience (or a combination thereof) necessary to ensure the production of quality cannabis products by all personnel. The assigned training personnel shall sign and date a document on an annual basis attesting that they received and understands all information that will be provided to personnel in the training program.
This documentation shall be maintained as part of the record requirements in subsection (c).
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5, 26130 and 26160, Business and Professions Code. §17212. Cannabis Product Components.
(a) In order to prevent adulteration of cannabis products, licensed manufacturers shall establish and implement written policies and procedures to ensure and maintain the quality of product components.
(b) Components are subject to the following minimum requirements:
(1) Components that are food must be obtained from a source that complies with federal and state food laws.
(2) Raw materials and other components shall be inspected upon intake to ensure that they are clean and suitable for manufacturing into cannabis products, and shall be stored under conditions that protect against allergen cross-contact and contamination and minimize deterioration.
(3) Raw materials shall be washed or cleaned as necessary to remove soil and other visible contaminants. Water used for washing, rinsing, or conveying cannabis product ingredients shall be potable.
(4) Raw materials and other components shall not contain levels of microorganisms that render the cannabis product injurious to human health, or shall be pasteurized or otherwise treated during manufacturing so that they no longer contain levels of microorganisms that would cause the cannabis product to be adulterated. (5) Raw materials and other components susceptible to contamination with aflatoxin or other natural toxins, pests, or extraneous material shall not exceed generally acceptable limits set by the U.S. Food and Drug Administration in the Defect Levels Handbook (Rev.
February 2005), which is hereby incorporated by reference, before these raw materials or other ingredients are incorporated into cannabis products. (6) Raw materials and other components shall be held in containers designed and constructed to protect against allergen cross-contact or contamination, and shall be held Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 175 of 216 at a temperature and relative humidity and in a manner that prevents the cannabis products from becoming adulterated.
(7) Frozen raw materials and other components shall be kept frozen. If thawing is required prior to use, it shall be done in a manner that prevents the raw materials and other ingredients from becoming adulterated.
(8) Raw materials and other components that are food allergens shall be identified and held in a manner that prevents cross-contact with other raw materials or ingredients. (c) Holding and storage of raw materials and other components shall meet the requirements of Health and Safety Code sections 114047(a) and (b), 114049, and 114051.
(d) The policies and procedures for components shall be in writing and made available to the Department upon request.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26131, Business and Professions Code. §17213. Manufacturing Processes and Procedures.
(a) A licensed manufacturer shall implement and maintain the following manufacturing processes and procedures that ensure cannabis product quality:
(1) A product quality plan, as described in section 17214; (2) Master manufacturing protocols, as described in section 17215, for each unique formulation of cannabis product manufactured to ensure only intended components are included and that the cannabis product is packaged and labeled in accordance with product specifications and this division; and
(3) Batch production records, as described in section 17216, to document the production process and, if needed, to verify that the established processes and procedures, including the preventive measures and master manufacturing protocol, were implemented correctly.
(b) All manufacturing records, processes, and procedures shall be in writing and are subject to inspection by the Department, its inspectors and agents.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26131, Business and Professions Code. §17214. Product Quality Plan.
(a) A licensed manufacturer shall establish and implement a written product quality plan for each type of product manufactured at the premises. The product quality plan shall address the hazards associated with the premises or the manufacturing process that, if not properly mitigated, may cause the product to be adulterated or misbranded, or may cause the product to fail laboratory testing or quality assurance review.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 176 of 216 (b) To create the product quality plan, the licensed manufacturer shall conduct a comprehensive assessment of the overall manufacturing process, as follows:
(1) Identify each step from component intake through transfer of product from the premises;
(2) Evaluate the potential risks associated with each step; (3) Identify the preventive measures that shall be taken to mitigate the potential risks identified;
(4) Identify the methods to evaluate and monitor the effectiveness of the preventive measures; and
(5) Identify any action to take if a preventive measure was unsuccessful. (c) The licensed manufacturer shall evaluate the following potential risks to cannabis product quality that could be introduced during manufacturing operations:
(1) Biological hazards, including microbiological hazards; (2) Chemical hazards, including radiological hazards, pesticide contamination, solvent or other residue, natural toxins, decomposition, or allergens; (3) Physical hazards, such as stone, glass, metal fragments, hair, or insects; and (4) Process failures that may lead to product contamination, allergen cross-contact, packaging errors, labeling errors, or other errors affecting cannabis product quality. (d) The licensed manufacturer shall identify and implement the preventive measure(s) necessary to mitigate each potential risk identified pursuant to subsection (c). Examples of preventive measures include, but are not limited to:
(1) Cleaning and sanitizing of equipment and utensils to mitigate against risk of microbiological hazards;
(2) Conducting in-house testing of raw cannabis to mitigate against the risk of pesticide contamination;
(3) Establishing an allergen control program to ensure that allergen cross-contact does not occur between product types; and
(4) Implementing procedures to ensure homogeneity of cannabinoids into a cannabis product to mitigate against the risk of a non-homogeneous product. (e) The licensed manufacturer shall identify and implement methods to evaluate and monitor the effectiveness of the preventive measures in mitigating the potential risks identified in subsection (c). Methods for evaluation and monitoring of preventive measures include, but are not limited to, the following:
(1) Review of test results conducted to determine contamination such as pesticide residue;
(2) Maintaining and reviewing cleaning, sanitizing, or maintenance logs to verify such actions have been taken;
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 177 of 216 (3) Conducting environmental testing to determine if equipment or utensils are contaminated with pathogens; and
(4) Monitoring the temperature of raw materials that need to be held below 41 degrees Fahrenheit to prevent microbial contamination.
(f) The licensed manufacturer shall identify actions to be taken if the evaluation and monitoring of the preventive measure indicates that a risk was not properly mitigated.
The corrective action shall be specific to the type of product under evaluation and the specific risk to be mitigated. Examples of corrective actions include, but are not limited to:
(1) Destruction of product components or finished manufactured cannabis product; (2) Further manufacturing of cannabis extract to remove impurities; and (3) Reworking the unfinished product to further homogenize the cannabinoids. (g) The licensed manufacturer shall maintain the product quality plans and documentation of preventive measures, monitoring results, and corrective actions and make the records available to the Department upon the Department’s request, including during the Department’s onsite inspection of the premises. Nothing in this chapter requires the disclosure of product quality plans other than to the Department and its inspectors and agents. The licensee may consider the product quality plan subject to trade secret protection.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26131, Business and Professions Code. §17215. Master Manufacturing Protocol.
(a) A licensed manufacturer shall establish and follow a written master manufacturing protocol for each unique formulation of cannabis product manufactured, and for each batch size, in order to mitigate the potential for adulteration through incorporation of incorrect amounts of cannabinoids, unintended ingredients, or hazards identified in the product quality plan; the potential for misbranding through incorporation of ingredients not identified on the label or mislabeling of the product; and to ensure uniformity in finished batches and across all batches produced.
(b) The master manufacturing protocol shall include:
(1) The name and intended cannabinoid concentration(s) of the cannabis product to be manufactured;
(2) A complete list of components to be used;
(3) The weight or measure of each component to be used. The master manufacturing protocol for any given product may include the ability to adjust the weight or measure of cannabinoid-containing ingredients in order to account for the variability of cannabinoid content in harvest batches;
(4) The identity and weight or measure of each ingredient that will be declared on the ingredients list of the cannabis product;
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 178 of 216 (5) The expected yield of the finished manufactured cannabis product, based upon the quantity of components or packaging to be used in the absence of any loss or error in actual production, and the maximum and minimum percentages of expected yield beyond which a deviation investigation of a batch will be necessary, material review will be conducted, and a decision on the disposition of the product will be made; (6) A description of packaging and a representative label, or a cross-reference to the physical location of the actual or representative label; (7) The expected number of packages and labels to be used, if the cannabis product will leave the manufacturing premises in final form;
(8) Written instructions for each point, step, or stage in the manufacturing process; and (9) Written instructions for any action to mitigate risk(s) identified in the product quality plan.
(c) Master manufacturing protocols shall be in writing and made available to the Department upon request.
(d) Nothing in this chapter requires disclosure of the master manufacturing protocol to any person other than the individuals conducting activities that utilize the protocol or to the Department and its inspectors and agents. The licensee may consider the master manufacturing protocol subject to trade secret protection.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26131, Business and Professions Code. §17216. Batch Production Record.
(a) A licensed manufacturer shall prepare a written batch production record every time a batch of a cannabis product is manufactured or a batch of cannabis or cannabis product is remediated. The batch production record shall accurately follow the appropriate master manufacturing protocol, and each step of the protocol shall be performed in the production of the batch.
(b) The batch production record shall document complete information relating to the production and control of each batch, including all of the following details:
(1) The UID and the batch or lot number of the finished batch of cannabis product and the UIDs of all cannabis or cannabis products used in the batch; (2) The specific equipment and processing lines used in producing or remediating the batch;
(3) The identity and weight or measure of each component used; (4) A statement of the actual yield and the percentage difference from expected yield at appropriate phases of manufacturing as identified in the master manufacturing protocol; (5) The actual results obtained during any monitoring operation, if the product quality plan identifies any monitoring needed to ensure product safety; Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 179 of 216 (6) Documentation, at the time of performance, of the manufacture of the batch, including:
(A) The date on which each step of the master manufacturing protocol was performed; and
(B) The initials of the person(s) performing each step; (7) An actual or representative label or other identification of the label to be used for the cannabis product;
(8) The actual quantity of the packaging and labels used, and the difference from the expected number to be used, if the cannabis product will leave the manufacturing premises as a final form cannabis good;
(9) Documentation, at the time of performance, that quality control personnel:
(A) Reviewed the batch production record;
(B) Reviewed all required monitoring operation(s);
(C) Reviewed the results of all tests and examinations, including tests and examinations conducted on components, finished batches of cannabis product, and packaged and labeled cannabis products; and
(D) Either approved and released, or rejected, the finished cannabis product, including any remediated, repackaged or relabeled cannabis product; (10) Documentation, at the time of performance, of any investigation identified in the product quality plan or master manufacturing protocol, including investigations into deviations from the expected yield or package and label count. (c) The batch production record shall:
(1) Contain the actual values and observations obtained during monitoring and, as appropriate, during verification activities;
(2) Be accurate, indelible, and legible;
(3) Be created concurrently with performance of the activity documented; (4) Be as detailed as necessary to provide a history of work performed; and (5) Include the following information:
(A) The license number or premises address of the facility at which the manufacturing occurred;
(B) The date each step was performed;
(C) The signature or initials of the person performing the activity; and (D) The identity of the product, the UID, and the batch or lot number.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26131, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 180 of 216 §17217. Standard Operating Procedures.
(a) A licensed manufacturer shall establish and maintain written standard operating procedures that are easily accessible to onsite personnel. The standard operating procedures shall, at minimum, include the following:
(1) Policies or procedures developed in accordance with the security plan required by section 15042.1;
(2) Emergency response procedures, including safety data sheets for any chemicals onsite;
(3) Policies and procedures developed in accordance with section 17206; (4) Policies and procedures developed in accordance with this article; (5) Procedures for complying with the track and trace requirements established in article 6 of chapter 1; and
(6) Cannabis waste management procedures in compliance with section 17223. (b) Procedures shall be written in English but may be made available in other languages, as necessary for the licensee’s personnel.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5, 26130 and 26160, Business and Professions Code. §17218. Inventory Control – Cannabis and Cannabis Products. (a) A licensed manufacturer shall establish and implement a written inventory control plan capable of tracking the location and disposition of all cannabis and cannabis products at the licensed premises.
(b) A licensed manufacturer shall reconcile the on-hand inventory of cannabis and cannabis products at the licensed premises with the records in the track and trace system at least once every thirty (30) calendar days.
(c) If a licensed manufacturer finds a discrepancy between the on-hand inventory and the track and trace system, the licensee shall conduct an audit. (d) If the inventory reconciliation conducted pursuant to subsection (b) or the audit conducted pursuant to subsection (c) reveals a discrepancy that is more than five percent of the documented inventory, the licensed manufacturer shall notify the Department within 24 hours of the discovery.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26130, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 181 of 216 Article 5. Special Requirements
§17219. Juice Manufacturing.
Manufacturers of cannabis juice or cannabis-infused juice or beverages shall prepare and implement a written juice hazard analysis and critical control plan in accordance with the requirements of title 21, Code of Federal Regulations, Part 120, subpart A, section 120.8 and subpart B, section 120.24, (Rev. January 2001), which are hereby incorporated by reference.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26131, Business and Professions Code. §17220. Dried Meat Manufacturing.
Manufacturing of cannabis-infused dried meat products shall be conducted in accordance with the United States Department of Agriculture FSIS Compliance Guideline for Meat and Poultry Jerky Produced by Small and Very Small Establishments: 2014 Compliance Guideline (Rev. 2014), which is hereby incorporated by reference. Meat for manufacturing into dried meat products shall be acquired from a commercially-available source.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26131, Business and Professions Code.
Chapter 9. Other Responsibilities
§17221. Weighing Devices and Weighmasters.
(a) A licensee shall use weighing devices approved, tested, and sealed in accordance with the requirements in Business and Professions Code, division 5, chapter 5 (commencing with section 12500) and its implementing regulations, and registered with the county sealer consistent with Business and Professions Code, division 5, chapter 2 (commencing with section 12240) and its implementing regulations whenever:
(1) Cannabis or cannabis product is bought or sold by weight or count; (2) Cannabis or cannabis product is packaged for sale by weight or count; (3) Cannabis or cannabis product is weighed or counted for entry into the track and trace system; and
(4) The weighing device is used for commercial purposes as defined in Business and Professions Code section 12500.
(b) Whenever the licensee is determining the weight, measure, or count of cannabis and cannabis products for the purposes specified in subsection (a), the weight, measure, or count shall be determined by a licensed weighmaster in compliance with the requirements of Business and Professions Code, division 5, chapter 7 (commencing with section 12700).
(c) A licensee shall obtain a weighmaster certificate that complies with the requirements Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 182 of 216 of Business and Professions Code, division 5, chapter 7 (commencing with section 12700) whenever:
(1) Payment for the cannabis or cannabis product is dependent upon the quantity determined by the weighmaster; or
(2) Payment for service or processing of the cannabis or cannabis product is dependent upon the quantity determined by the weighmaster.
(d) The weighmaster certificate shall not be required when cannabis or cannabis products are weighed or counted for entry into the track and trace system. (e) In any county in which a county sealer refuses or is not required to approve, register, test, and seal weighing devices used by a licensee, the licensee may have a service agency registered pursuant to Business and Professions Code, division 5, chapter 5.5 perform testing of a weighing device consistent with the requirements in title 4, California Code of Regulations, section 4070. The licensee shall keep a copy of the registered service agency’s written inspection report attesting to the accuracy of the device for each device operated by the licensee.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26060, Business and Professions Code. §17223. Waste Management.
(a) A licensee shall dispose of all waste in accordance with the Public Resources Code and any other applicable state and local laws. It is the responsibility of the licensee to properly evaluate waste to determine if it should be designated and handled as a hazardous waste, as defined in Public Resources Code section 40141. (b) A licensee shall establish and implement a written cannabis waste management plan that describes the method or methods by which the licensee will dispose of cannabis waste, as applicable to the licensee’s activities. A licensee shall dispose of cannabis waste using only the following methods:
(1) On-premises composting of cannabis waste.
(2) Collection and processing of cannabis waste by a local agency, a waste hauler franchised or contracted by a local agency, or a private waste hauler permitted by a local agency in conjunction with a regular organic waste collection route. (3) Self-haul cannabis waste to one or more of the following:
(A) A manned, fully permitted solid waste landfill or transformation facility; (B) A manned, fully permitted composting facility or manned composting operation; (C) A manned, fully permitted in-vessel digestion facility or manned in-vessel digestion operation;
(D) A manned, fully permitted transfer/processing facility or manned transfer/processing operation;
(E) A manned, fully permitted chip and grind operation or facility; or Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 183 of 216 (F) A recycling center as defined in title 14, California Code of Regulations, section 17402.5(d) that meets the following:
(i) The cannabis waste received shall contain at least ninety (90) percent inorganic material;
(ii) The inorganic portion of the cannabis waste is recycled into new, reused, or reconstituted products that meet the quality standards necessary to be used in the marketplace; and
(iii) The organic portion of the cannabis waste shall be sent to a facility or operation identified in subsections (b)(3)(A)-(E).
(4) Reintroduction of cannabis waste back into agricultural operation through onpremises organic waste recycling methods including, but not limited to, tilling directly into agricultural land and no-till farming.
(c) The licensee shall maintain any cannabis waste in a secured waste receptacle or secured area on the licensed premises until the time of disposal. Physical access to the receptacle or area shall be restricted to the licensee, employees of the licensee, the local agency, waste hauler franchised or contracted by the local agency, or private waste hauler permitted by the local agency only. Nothing in this subsection prohibits licensees from using a shared waste receptacle or area with other licensees, provided that the shared waste receptacle or area is secured and access is limited as required by this subsection.
(d) A licensee that disposes of waste through an entity described in subsection (b)(2) shall do all of the following:
(1) Maintain and make available to the Department upon request the business name, address, contact person, and contact phone number of the entity hauling the waste; and (2) Obtain documentation from the entity hauling the waste that evidences subscription to a waste collection service.
(e) If a licensee is self-hauling cannabis waste as allowed by the local jurisdiction, the licensee shall be subject to all of the following requirements:
(1) Self-hauled cannabis waste shall only be transported by the licensee or its employees;
(2) Self-hauled cannabis waste shall only be transported to a facility specified in subsection (b)(3); and
(3) The licensee or its employee who transports the waste shall obtain for each delivery of cannabis waste a copy of a certified weight ticket or receipt from the solid waste facility.
(f) A batch of cannabis or cannabis products that is being disposed of because the batch has failed internal quality testing, quality assurance review by a distributor, or regulatory compliance testing shall comply with the following additional requirements:
(1) All cannabis or cannabis products in the batch shall be rendered unusable prior to disposal;
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 184 of 216 (2) Rendering of the cannabis or cannabis products shall be done under video surveillance, unless the rendering is performed by a licensee engaging in cultivation activities on a licensed premises authorized exclusively for cultivation activities or the cultivation area of a licensed microbusiness premises; and (3) The reason for disposal and the disposition of the batch shall be noted in the track and trace system.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26130, Business and Professions Code. §17225. Product Complaints.
(a) A licensee shall review all product complaints made to the licensee to determine whether the complaints involve possible misbranding or adulteration of a cannabis good, and shall investigate the complaints to the extent practicable based on the information received and the records the licensee is required to maintain. (b) For purposes of this section, “product complaint” means any written, electronic, or oral communication received by a licensee that contains any allegation expressing concern, for any reason, with the quality of a cannabis good. Examples of product complaints may include, but are not limited to: foul odor, caused illness or injury, foreign material in a cannabis product container, improper packaging, mislabeling, cannabis products that contain an incorrect concentration of cannabinoids, and cannabis products that contain an unidentified ingredient, or any form of contaminant. (c) The licensee shall maintain written records for every product complaint received and any subsequent investigation. The records shall include:
(1) The name and description of the cannabis good;
(2) The batch number or UID of the cannabis good, if available; (3) The date the complaint was received and the name, address, and telephone number of the complainant, if available;
(4) The nature of the complaint including, if known, how the product was used; (5) The reply to the complainant, if any;
(6) The findings of the investigation or follow-up action taken when an investigation is performed;
(7) The basis for any determination not to conduct an investigation, if applicable; and (8) The notification to the licensee that made the cannabis good, if applicable. (d) The licensee shall conduct a recall, as specified in section 17226, when the investigation evidences adulteration or misbranding.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26131, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 185 of 216 §17226. Voluntary Recalls.
(a) Licensees shall establish and implement written procedures for recalling cannabis goods that are determined to be misbranded or adulterated. These procedures shall include:
(1) Factors that necessitate a recall;
(2) Personnel responsible for implementing the recall procedures; and (3) Notification protocols, including:
(A) A mechanism to notify all customers that have, or could have, obtained the cannabis goods, including communication and outreach via media, as necessary and appropriate; (B) A mechanism to notify any licensees that supplied or received the recalled cannabis goods; and
(C) Instructions to the general public and other licensees for the return or destruction of the recalled cannabis goods; and
(4) Procedures for the collection and destruction of any recalled cannabis goods. These procedures shall meet the following requirements:
(A) All recalled cannabis goods that are intended to be destroyed shall be quarantined for a minimum of 72 hours, unless a longer holding time is requested by the Department.
The licensee shall affix to the recalled cannabis goods any bills of lading, shipping manifests, or other similar documents with the cannabis goods information and weight.
The cannabis goods held in quarantine shall be subject to auditing by the Department. (B) Following the quarantine period, the licensee shall render the recalled cannabis goods unusable and dispose of them in accordance with section 17223. (b) In addition to the tracking requirements set forth in section 15049, a licensee shall use the track and trace system and onsite documentation to ensure that recalled cannabis goods intended for destruction are identified, weighed, and tracked while on the licensed premises and when disposed of in accordance with this section. For recalled cannabis goods, the licensee shall enter the following details into the track and trace system: the weight and count of the cannabis goods, reason for destruction, and date the quarantine period will begin.
(c) The licensee shall notify the Department of any recall within 24 hours of initiating the recall.
(d) A licensed manufacturer may submit a remediation plan to the Department in accordance with the section 17305. If the remediation plan is not approved by the Department, the cannabis goods shall be destroyed pursuant to the procedures required by subsection (a)(4).
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26039.1 and 26039.6, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 186 of 216 §17227. Mandatory Recalls.
(a) The Department may require licensees to conduct a recall of a cannabis good that is adulterated or misbranded in accordance with Business and Professions Code section 26039.1.
(b) The licensee shall conduct the mandatory recall in the same manner as a voluntary recall as provided in section 17226.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26039.1 and 26039.6, Business and Professions Code.
Chapter 10. Cannabis and Cannabis Products
Article 1. Standards for Manufactured Cannabis Products §17300. Prohibited Products.
The following types of products shall not be sold as cannabis products:
(a) Alcoholic beverages, as defined in Business and Professions Code section 23004.
This prohibition does not apply to tinctures that meet the requirements of section 17303; (b) Any product containing any non-cannabinoid additive that would increase potency, toxicity, or addictive potential, or that would create an unsafe combination with other psychoactive substances. Prohibited additives include, but are not limited to, nicotine and caffeine. This prohibition shall not apply to products containing naturally-occurring caffeine, such as coffee, tea, or chocolate;
(c) Any cannabis product that must be held at or below 41 degrees Fahrenheit to keep it safe for human consumption, including, but not limited to, cream- or custard-filled pies; pies or pastries consisting in whole or in part of milk or milk products, or eggs; and meatfilled pies or pastries. This prohibition shall not apply to juices or beverages that need to be held below 41 degrees Fahrenheit if the juice or beverage was processed in accordance with section 17219, or to infused butter manufactured as permitted by subsection (g);
(d) Any thermally-processed low-acid cannabis product packed in a hermetically sealed container that, if it did not contain cannabis, would be subject to the manufacturing requirements of title 21, Code of Federal Regulations, part 113; (e) Any acidified cannabis product that, if it did not contain cannabis, would be subject to the manufacturing requirements of title 21, Code of Federal Regulations, part 114; (f) Any juice that is not shelf-stable or that is not processed in accordance with section 17219;
(g) Dairy products of any kind, as prohibited by Business and Professions Code section 26001(u), except butter purchased from a licensed milk products plant or retail location that is subsequently infused or mixed with cannabis may be sold as a cannabis product; (h) Meat products other than dried meat products prepared in accordance with section 17220;
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 187 of 216 (i) Seafood products of any kind;
(j) Any product that is manufactured by application of cannabinoid concentrate or extract to commercially available candy or snack food items without further processing of the product. Commercially available candy or snack food items may be used as ingredients in a cannabis product, provided that they are used in a way that renders them unrecognizable as the commercially available items, and the label, including the ingredient list, does not note that the final cannabis product contains the commercially available item;
(k) Any cannabis product that the Department determines, on a case-by-case basis, is attractive to children, as specified in section 17408;
(l) Any cannabis product that the Department determines, on a case-by-case basis, is easily confused with commercially available foods that do not contain cannabis; or (m) Any cannabis product in the shape of, or imprinted with the shape, either realistic or caricature, of a human being, animal, insect, or fruit.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26130, Business and Professions Code. §17301. Requirements for Edible Cannabis Products.
(a) Except for cannabis, cannabis products, or terpenes, no ingredient or component shall be used in the manufacture of an edible cannabis product unless that ingredient or component is permitted by the United States Food and Drug Administration for use in food or food manufacturing, as specified in Substances Added to Food in the United States, available at
https://www.accessdata.fda.gov/scripts/fdcc/index.cfm?set=FoodSubstances or is Generally Recognized as Safe (GRAS) under sections 201(s) and 409 of the Federal Food, Drug, and Cosmetic Act (codified in 21 U.S.C. 321(s) and 21 U.S.C. 348). (b) Edible cannabis products that consist of more than a single serving shall be either:
(1) Scored or delineated to indicate one serving, if the edible cannabis product is in solid form. For purposes of this section, “delineated” includes directly marking the product to indicate one serving or providing a means by which a consumer can accurately identify one serving; or
(2) If the edible cannabis product is not in solid form, packaged in a manner such that a single serving is readily identifiable or easily measurable. (c) An edible cannabis product consisting of multiple servings shall be homogenized so that each serving contains the same concentration of THC.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26130, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 188 of 216 §17302. Additional Requirements for Topical Cannabis Products. (a) Except for cannabis, cannabis concentrate, or terpenes, topical cannabis products shall only contain ingredients permitted for cosmetic manufacturing in accordance with title 21, Code of Federal Regulations, part 700, subpart B (section 700.11 et seq.) (Rev.
April 2020), which is hereby incorporated by reference.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26011.5, Business and Professions Code.
§17303. Orally Consumed Products Containing Alcohol.
(a) Any orally consumed product that contains more than 0.5% alcohol by volume as an ingredient, and is not otherwise an alcoholic beverage as defined in Business and Professions Code section 23004, shall be packaged in a container no larger than two (2) fluid ounces and shall include a calibrated dropper or other similar device capable of accurately measuring servings.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26011.5, Business and Professions Code.
Article 2. Cannabinoid Concentration Limits
§17304. THC Concentration Limits.
(a) An edible cannabis product shall not contain more than:
(1) 10 milligrams THC per serving; and
(2) 100 milligrams THC per package.
(b) Notwithstanding subsection (a), a package containing an edible product that is an orally dissolving product, such as sublingual lozenges or mouth strips, may contain up to 500 milligrams THC per package, if:
(1) The cannabis product consists of discrete servings of no more than 10 milligrams THC per piece;
(2) The cannabis product is labeled “FOR MEDICAL USE ONLY;” and (3) The cannabis product is only available for sale to a medicinal-use patient. (c) A topical cannabis product or a cannabis concentrate shall not contain more than 1,000 milligrams THC per package.
(d) Notwithstanding subsection (c), a topical cannabis product or a cannabis concentrate may contain more than 1,000 milligrams THC per package, but not more than 2,000 milligrams THC per package, if the product is labeled “FOR MEDICAL USE ONLY” and is only available for sale to a medicinal-use patient.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5, 26120 and 26130, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 189 of 216 Article 3. Failed Product Batches
§17305. Failed Product Batches.
(a) A finished cannabis product batch that fails any regulatory compliance laboratory testing requirement established in this division shall be destroyed unless:
(1) The cannabis product batch may be remediated by relabeling pursuant to subsection (d); or
(2) A corrective action plan for remediation is approved by the Department pursuant to subsection (e).
(b) Remediation of a failed product batch or the use of a harvest batch that has failed any regulatory compliance laboratory test shall comply with the requirements and procedures established by the Department in section 15727, in addition to the requirements of this article.
(c) Except as provided in subsections (d) and (f), edible cannabis products that fail regulatory compliance laboratory testing shall not be remediated and shall be destroyed.
If any edible cannabis product that has failed regulatory compliance laboratory testing is remediated or otherwise mixed with another batch of cannabis product in violation of this section, such action shall render the final cannabis product adulterated, regardless of the defect level of the final cannabis product.
(d) A cannabis product batch that fails regulatory compliance laboratory testing for cannabinoid or terpenoid content may be remediated by relabeling the product with the correct information from the laboratory certificate of analysis, provided that the THC limits in section 17304 are met. In addition, the following conditions apply:
(1) The manufacturer licensee shall notify the Department within 3 business days of notification by a distributor that the product failed cannabinoid content testing and is required to be relabeled.
(2) Notification shall be given to the Department by email and shall include a copy of the certificate of analysis for the batch and the name and license number of the licensee relabeling the product.
(e) Except as provided in subsection (d), a cannabis product batch or a harvest batch that fails regulatory compliance laboratory testing or quality assurance review shall not be remediated unless the Department has approved a corrective action plan submitted by the manufacturer licensee. The corrective action plan shall include, at minimum, a description of how the product or harvest batch will be remediated so that the product or harvest batch, or any product produced therefrom, will meet all regulatory compliance laboratory testing and quality assurance requirements. Edible cannabis products may only be remediated by relabeling or repackaging as provided in subsection (f). Corrective action plans will be reviewed by the Department on a case-by-case basis. (f) Edible cannabis products that fail regulatory compliance laboratory testing because the per-package limit of THC has been exceeded may be remediated by repackaging under the following conditions:
(1) The Department has approved a corrective action plan for repackaging the product; Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 190 of 216 (2) The product batch is returned to the manufacturer that packaged the product; (3) The product itself is not altered in any way; and
(4) The product is labeled to accurately state the contents. (g) All remediation of harvest or product batches shall be documented in the batch production records. Remediated products, harvest batches, or products produced therefrom shall be tested and undergo quality assurance review in accordance with the requirements established by the Department in chapter 2 of this division prior to retail sale.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26131, Business and Professions Code.
Chapter 11. Labeling and Packaging Requirements
Article 1. Bulk Cannabis or Cannabis Products, Immature Plants, and Seeds §17398. Bulk Cannabis or Cannabis Products.
(a) For purposes of this section, “bulk cannabis or cannabis products” means cannabis or cannabis products transferred between licensees for the purpose of further processing and/or packaging.
(b) The packaging used to transport bulk cannabis or cannabis products shall protect the cannabis or cannabis products from contamination and shall not expose the cannabis or cannabis products to any toxic or harmful substance.
(c) Packages of bulk cannabis or cannabis products shall be labeled with the following:
(1) The type or common name of the cannabis or cannabis products contained therein; (2) The UID assigned to the cannabis or cannabis products; (3) The ingredients of the cannabis products, including a list of any allergens present as described in section 17406(a)(6); and
(4) The net weight or count of the cannabis or cannabis products.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26120, Business and Professions Code.
§17399. Immature Plants.
(a) Immature plants to be sold at retail are not required to be placed in child-resistant or tamper-evident packaging prior to sale.
(b) Immature plants shall be labeled with the following:
(1) The legal business name, or any name listed on the license certificate, of the licensed nursery that cultivated the immature plant, and its contact number or website address; (2) The strain name; and
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 191 of 216 (3) The statement: “This plant has not been tested in accordance with the Medicinal and Adult-Use Cannabis Regulation and Safety Act.”
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070, 26100 and 26120, Business and Professions Code.
§17400. Seeds.
(a) Packages of seeds are not required to be placed in child-resistant packaging prior to sale.
(b) Packages of seeds to be sold at retail shall be labeled with the following:
(1) The legal business name, or any name listed on the license certificate, of the licensed nursery that cultivated the seeds, and its contact number or website address; (2) The strain name(s);
(3) Either the weight or count of seeds in the package; (4) The universal symbol described in section 17410; and (5) The statement: “These seeds have not been tested in accordance with the Medicinal and Adult-Use Cannabis Regulation and Safety Act.”
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26130, Business and Professions Code.
Article 2. Cannabis Products Released from Manufacturing §17401. Release to Distributor as Finished Product.
(a) Prior to release of a manufactured cannabis product to a distributor for purposes of compliance testing and retail sale, a licensed manufacturer shall ensure that the product is labeled and packaged in its final form for retail sale. (b) Notwithstanding subsection (a), a product label may exclude labeling of cannabinoid content if the cannabinoid content is to be added to the label at the distribution premises after issuance of a Certificate of Analysis in accordance with section 17407.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26130, Business and Professions Code.
Article 3. Labeling Requirements
§17402. General Provisions.
(a) Any information required to be listed on a label shall be written in English. (b) A label shall be unobstructed and conspicuous so that it can be read by the consumer.
(c) All required label information shall be located on the outside container or wrapper of the finished product to be sold at a retailer, or be easily legible through the outermost Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 192 of 216 container or wrapper. If the immediate container holding the cannabis goods is separable from the outermost packaging, such as a container placed inside of a box, the immediate container shall be labeled with the universal symbol as described in section 17410.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26120, Business and Professions Code.
§17403. Primary Panel Labeling Requirements: Nonmanufactured Cannabis Goods.
(a) The label for a package of nonmanufactured cannabis goods shall include a primary panel that includes the following information in a type size no smaller than 6 point and proportional to the size of the primary panel and container:
(1) The identity of the product;
(2) The net weight of cannabis in the package, listed in both metric and U.S. customary units; and
(3) The universal symbol described in section 17410.
(b) The label for a package of pre-rolls or packaged flower shall include an informational label that includes the following information in a type size no smaller than 6 point and proportional to the size of the informational panel and container:
(1) The UID;
(2) The name of the licensed cultivator or licensee packaging the product (either the legal business name or the registered name under which the business will operate listed on the license certificate) and that licensee’s contact number or website address; (3) The date of packaging for retail sale; and
(4) The following statement in bold print: “GOVERNMENT WARNING: THIS PACKAGE CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. CANNABIS USE WHILE PREGNANT OR
BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.”
(c) Nothing in this section prohibits the inclusion of additional information on the primary panel, provided that the label does not violate the requirements of section 17408. (d) The cannabinoid content for a package of pre-rolls or packaged flower shall be labeled as specified in section 17407.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26120, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 193 of 216 §17404. Primary Panel Labeling Requirements: Manufactured Cannabis Products. (a) The label for a manufactured cannabis product shall include a primary panel that includes the following information in a type size no smaller than 6 point and proportional to the size of the primary panel and container:
(1) The identity of the product in a text size reasonably proportional to the most prominent printed matter on the panel;
(2) The universal symbol as described in section 17410; and (3) The net weight or volume of the contents of the package, listed in both metric and U.S. customary units.
(b) Nothing in this section prohibits the inclusion of additional information on the primary panel, provided that the label does not violate the requirements of section 17408.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26120, Business and Professions Code.
§17405. Additional Primary Panel Labeling Requirements: Edible Products. (a) In addition to the requirements of section 17404, the primary panel of an edible cannabis product shall include the words “cannabis-infused” or “cannabis infused” immediately above the identity of the product in bold type and a text size larger than the text size used for the identity of the product.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26120, Business and Professions Code.
§17406. Informational Panel Labeling Requirements.
(a) The label for a manufactured cannabis product shall include an informational panel that includes the following:
(1) The name of the licensed manufacturer (either the legal business name or the registered name under which the business will operate listed on the license certificate) that manufactured the cannabis product and the manufacturer’s contact number or website address;
(2) The date the cannabis product was packaged for retail sale; (3) The following statement in bold print: “GOVERNMENT WARNING: THIS PRODUCT CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS PRODUCTS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. THE INTOXICATING EFFECTS OF CANNABIS PRODUCTS MAY BE DELAYED UP TO TWO HOURS. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION
OF CANNABIS PRODUCTS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION;”
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 194 of 216 (4) The statement: “FOR MEDICAL USE ONLY” if the package contains an amount of THC that exceeds the level allowed for adult-use cannabis goods, as specified in section 17304;
(5) A list of all product ingredients in descending order of predominance by weight or volume. If any product ingredient contains subingredients, the list shall either:
(A) Include the common name of the ingredient followed by a parenthetical listing of all ingredients in descending order by weight or volume; or (B) List all subingredients as individual ingredients in descending order of predominance; however,
(C) This subsection shall not apply to flavoring, which shall instead comply with title 21, Code of Federal Regulations, Part 101.22 (Rev. April 2020), hereby incorporated by reference;
(6) For cannabis products containing an ingredient, flavoring, coloring, or an incidental additive that bears or contains a major food allergen, the word “contains,” followed by a list of the applicable major food allergens. The list shall conform with the requirements for food allergen labeling set forth in 21 U.S.C. §343(w), paragraph (1)(A) or (1)(B); (7) The names of any artificial colorings contained in the product; (8) For edible cannabis products, the amount, in grams or milligrams, of sodium, sugar, carbohydrates, and total fat per serving;
(9) Instructions for use, such as the method of consumption or application, and any preparation necessary prior to use;
(10) The UID;
(11) The batch or lot number; and
(12) The statement: “KEEP REFRIGERATED” or “REFRIGERATE AFTER OPENING,” as applicable, if the cannabis product is perishable or perishable after opening. (b) The informational panel text shall be in a type size no smaller than 6 point and proportional to the size of the primary panel and container. (c) Except for the information required by subsections (a)(10) and (a)(11), the requirements of subsection (a) may be fulfilled through the use of supplemental labeling, which may include, but is not limited to, a package insert, fold-out or booklet label, or a hanging tag. After December 31, 2021, supplemental labeling may not be used to fulfill the labeling requirement in subsection (a)(1).
(d) Cannabinoid content may be included on the informational panel. Cannabinoid content for manufactured cannabis products shall be labeled as specified in section 17407.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 195 of 216 (e) Nothing in this section prohibits the inclusion of additional information on the informational panel provided that the label does not violate the requirements of section 17408.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26120, Business and Professions Code.
§17407. Cannabinoid Content Labeling.
(a) Each package for retail sale of cannabis goods shall be labeled with the cannabinoid content on either the primary panel or an informational panel. For manufactured products, cannabinoid content may be included on the label prior to release to a distributor or it may be added to the label at the distribution premises after issuance of a regulatory compliance testing Certificate of Analysis for the batch as described in subsection (d).
(b) Cannabinoid content labeling shall include the following:
(1) For an edible product or a cannabis concentrate for which the manufacturer has established serving designations, THC and CBD content expressed in milligrams per serving and milligrams per package.
(2) For a topical cannabis product or a cannabis concentrate without serving designations, THC and CBD content expressed in milligrams per package. (3) For nonmanufactured cannabis goods, Total THC content expressed as a percentage.
(4) Packages of infused pre-rolls shall be labeled with either:
(A) The cannabinoid content in milligrams; or
(B) The cannabinoid content of the dried flower expressed as a percentage and the added cannabinoid content in milligrams.
(c) Cannabis goods labeled prior to testing must include the items specified in subsection (b), as appropriate to the product. For THC or CBD concentration that is less than two (2) milligrams per serving or per package, the THC or CBD concentration may be stated as “<2 mg per serving” or “<2 mg per package.”
(d) Cannabis goods labeled at the distribution premises after issuance of the Certificate of Analysis shall comply with the following:
(1) Each package of cannabis goods shall be labeled with the cannabinoid content as specified in subsection (b) that is indicated on the Certificate of Analysis, as well as any other cannabinoid that is five (5) percent or greater of the total cannabinoid content; (2) Labeled cannabinoid content shall reflect the amount indicated on the Certificate of Analysis. The amount may be rounded to the nearest whole number, except that packages shall not be labeled with an amount greater than the allowable THC limits. If the THC or CBD content of a manufactured cannabis product is indicated on the Certificate of Analysis as “Not Detected” or “<LOQ,” the cannabinoid content shall be labeled as “0 mg” or “<2 mg;”
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 196 of 216 (3) The cannabinoid content label shall be affixed to the outermost packaging of the cannabis goods and shall not obscure any other label information. (e) Nothing in this section precludes the labeling of terpenes or additional cannabinoid content on the cannabis goods, provided that the information is verified by the Certificate of Analysis.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26120, Business and Professions Code.
§17408. Labeling Restrictions.
(a) Cannabis goods labeling shall not contain any of the following:
(1) The name of a California city, county, or city and county, including any similar name that is likely to mislead consumers as to the origin of the product, unless one hundred percent of the cannabis contained in the product was grown in that city, county, or city and county. For purposes of this subsection, a cannabis plant is considered to have been grown within a city, county, or city and county of origin if the plant was cultivated within that boundary starting from the time the plant was no taller or wider than 18 inches. (2) Content that is, or is designed to be, attractive to individuals under the age of 21, as specified in section 15040(a)(2) and (3).
(3) Any health-related statement that is untrue or misleading. Any health-related statement must be supported by the totality of publicly available scientific evidence (including evidence from well-designed studies conducted in a manner which is consistent with generally recognized scientific procedures and principles), and for which there is significant scientific agreement among experts qualified by scientific training and experience to evaluate such claims.
(4) If the product is an edible cannabis product, a picture of the product contained therein.
(5) Any information that is false or misleading. For purposes of this section, false and misleading information includes, but is not limited to:
(A) Any statement or indication that the cannabis or cannabis product is organic, unless the National Organic Program (section 6517 of the federal Organic Foods Production Act of 1990 (7 U.S.C. section 6501 et seq.)) authorizes organic designation and certification for cannabis and the cannabis or cannabis product meets the requirements for that designation and certification. This includes use of the word “organic” or variants in spelling such as “organix” on the labeling, except for use of the term “organic” in the ingredient statement on the informational panel of a cannabis product in compliance with the requirements of the programs established pursuant to Business and Professions Code section 26062.
(B) Any statement or indication that the cannabis or cannabis product is “OCal,” “OCal certified,” or made with “OCal cannabis,” if the cannabis or cannabis product has not been cultivated, handled, processed, or manufactured in compliance with the requirements of the programs established pursuant to Business and Professions Code Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 197 of 216 section 26062.
(6) Any statement or indication of an appellation of origin if the cannabis or cannabis product does not meet the requirements of the program established pursuant to Business and Professions Code section 26063.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26062.5, 26063, 26120, 26121 and 26154, Business and Professions Code. §17409. Statement of Characteristic Anticipated Effects. (a) A cannabis good may include information on the characteristic anticipated effects of the cannabis good if the licensee has substantiation that the information is truthful and not misleading. Such information may be located on the informational panel of the label or the supplemental labeling with the package. For purposes of this section, “characteristic anticipated effect” includes any physiological effect (a temporary effect on the body related to the consumption of cannabis goods) that is common to or expected from the particular cannabis strain, but excludes any claim of health benefits (i.e. claims of therapeutic action as a result of the consumption of cannabis goods).
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26120 and 26130, Business and Professions Code. §17410. Universal Symbol.
(a) The symbol established pursuant to Business and Professions Code section 26130 shall replicate the following in form:
(b) The symbol shall be black in color. For packaging that is dark in color, the symbol shall be made conspicuous by printing the symbol on, or outlining the symbol with, a contrasting color.
(c) The symbol shall be no smaller in height than one-half (0.5) inch except as allowed under subsection (d).
(d) For a cannabis vape cartridge or integrated cannabis vaporizer, the symbol shall be engraved, printed, or affixed with a sticker in a size no smaller than one-quarter (0.25) inch wide by one-quarter (0.25) inch high.
(e) The symbol shall not be altered or cropped in any way other than to adjust the sizing for placement on the primary panel.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26120, 26121 and 26130, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 198 of 216 Article 4. Packaging
§17411. Packaging.
(a) A package used to contain a cannabis good shall comply with the following requirements:
(1) The package shall protect the cannabis good from contamination and shall not expose the good to any toxic or harmful substance.
(2) The package shall be tamper-evident, which means that the packaging is sealed so that the contents cannot be accessed without obvious destruction of the seal upon initial opening.
(3) If the cannabis good has more than one serving, the package shall be resealable. (4) The package shall not imitate any package used for products typically marketed to children.
(5) If the cannabis good is an edible product, the package shall be opaque. Colored bottles that obscure the color of the liquid inside shall be considered opaque for purposes of this section.
(6) Notwithstanding subsection (e), opaque bottles used to contain a cannabis beverage product may utilize a single, vertical, clear strip no wider than one-quarter (0.25) inch for the purpose of determining serving amounts.
(7) The package shall be child-resistant, as described in section 17412.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26120 and 26121, Business and Professions Code. §17412. Child-Resistant Packaging Requirements.
(a) A package containing cannabis or cannabis products transferred to a distributor for retail sale shall be child-resistant, as follows:
(1) The package for an edible product, an orally consumed concentrate, or a suppository shall be child-resistant for the life of the product. A package that contains more than a single serving is not required to be child-resistant if each individual serving is packaged in child-resistant packaging.
(2) Cannabis or a cannabis product intended to be inhaled or a cannabis product that is applied topically may utilize packaging that is child-resistant only until first opened, if the package is labeled with the statement: “This package is not child-resistant after opening.” (b) The following packages are considered child-resistant for purposes of this article:
(1) Any package that has been certified as child-resistant under the requirements of the Poison Prevention Packaging Act of 1970 Regulations (16 C.F.R. §1700.15(b)(1)) (Rev.
July 1995), which is hereby incorporated by reference.
(2) A bottle sealed with a pry-off, metal crown, cork-style bottle cap, provided that the bottle contains only a single serving.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 199 of 216 (3) Plastic packaging that is at least four (4) mils thick and heat-sealed without an easyopen tab, dimple, corner, or flap, provided that the package contains a cannabis product described in subsection (a)(2) or a cannabis product that is only a single serving.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5, 26120 and 26121, Business and Professions Code.
Chapter 12. Enforcement
Article 1. Authority
§17800. Right of Access.
(a) The Department and its authorized representatives, for purposes of inspection, investigation, review, or audit, shall have full and immediate access to:
(1) Enter any premises licensed by the Department.
(2) Inspect and test any vehicle or equipment possessed by, in control of, or used by a licensee or their agents and employees for the purpose of conducting commercial cannabis activity.
(3) Test any cannabis goods or cannabis-related materials or products possessed by, in control of, or used by a licensee or their agents and employees for the purpose of conducting commercial cannabis activity.
(4) Copy any materials, books, or records of any licensee or their agents and employees. (b) Failure to cooperate with and participate in any Department investigation pending against the licensee may result in a licensing violation subject to discipline. This subsection shall not be construed to deprive a licensee of any privilege guaranteed by the Fifth Amendment to the Constitution of the United States, or any other constitutional or statutory privileges. This subsection shall not be construed to require a licensee to cooperate with a request that would require the licensee to waive any constitutional or statutory privilege or to comply with a request for information or other matters within an unreasonable period of time in light of the time constraints of the licensee’s business.
Any constitutional or statutory privilege exercised by the licensee shall not be used against the licensee in a regulatory or disciplinary proceeding against the licensee. (c) Prior notice of an inspection, investigation, review, or audit is not required. (d) Any inspection, investigation, review, or audit of a licensed premises shall be conducted anytime the licensee is exercising privileges under the license, or as otherwise agreed to by the Department and the licensee or its agents, employees, or representatives.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 200 of 216 (e) If the licensed premises is not accessible because access is only available by going through another licensed premises and the licensee occupying the other licensed premises denies the Department access, the licensees shall both be held responsible and subject to discipline.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26015 and 26160, Business and Professions Code; and Section 11181, Government Code.
Article 2. Compliance and Enforcement Actions
§17801. Notice to Comply.
(a) The Department may issue a Notice to Comply to a licensee for violation(s) of the Act or this division discovered during an investigation or observed during an inspection. (b) The Notice to Comply shall be in writing and describe the nature and facts of each violation, including a reference to the statute or regulation violated, and may indicate the manner in which the licensee must correct the violation(s) to achieve compliance. (c) The Department may serve the Notice to Comply personally or by mail to the licensee, employee, agent, or person delegated by the licensee to accept notice. (d) The licensee shall sign and return the Notice to Comply and, if required, a written plan to address the violations or describe how compliance was achieved within 30 calendar days after the date of personal service or mailing of the notice, or a different date specified by the Department. The Department may also require the licensee to provide a plan for review and approval by the Department on a case-by-case basis. (e) Failure to correct the violation(s) in the Notice to Comply may result in disciplinary action.
Authority: Section 26013, Business and Professions Code; Reference: Sections 26012 and 26018, Business and Professions Code.
§17801.1 Notice of Violation.
(a) Until October 1, 2021, the Department may issue a Notice of Violation to a licensee for violation(s) of the Act of this division that shall inform the licensee of:
(1) The violation(s) alleged;
(2) The proposed fine amount; and
(3) The licensee’s right to request a hearing pursuant to subsection (b). (b) Within 30 calendar days after issuance by the Department, a licensee may appeal a Notice of Violation by submitting a written request for an informal hearing by mail to the Department of Cannabis Control, Legal Affairs Division, 2920 Kilgore Road, Rancho Cordova, CA 95670, or by email to [email protected]. The request shall include the following:
(1) The licensee’s name, mailing address, and daytime phone number; Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 201 of 216 (2) The license number issued by the Department;
(3) A copy of the Notice of Violation; and
(4) A clear and concise statement of the basis of the appeal. (c) If the licensee fails to submit a timely request for hearing pursuant to subsection (b), the Notice of Violation is not appealable and the Department may proceed upon the noticed violation(s) without a hearing.
(d) A hearing requested to appeal a Notice of Violation will be scheduled and conducted in accordance with chapter 5 (commencing with section 11500) of part 1 of division 3 of the Government Code.
(e) For all written requests for a hearing submitted by licensees and received by the Department prior to October 1, 2021, with hearings scheduled to take place on or after October 1, 2021, the following will occur:
(1) Informal hearing proceedings noticed prior to October 1, 2021, shall be converted to adjudicative proceedings under chapter 5 (commencing with section 11500) of part 1 of division 3 of the Government Code.
(2) Any scheduled informal hearings will be vacated, and a new hearing date, location and time will be noticed by the Department.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections 26012, 26031 and 26031.5, Business and Professions Code. §17801.5. Embargo of Cannabis or Cannabis Products.
(a) The Department may embargo cannabis or cannabis products to prevent their sale, disposal, or removal from the location when the Department has probable cause to believe the cannabis or cannabis products are adulterated or misbranded or the sale would otherwise be in violation of the Act or this division. (b) To embargo cannabis or cannabis products, the Department shall:
(1) Provide initial notice to the licensee or product owner that the cannabis or cannabis products are subject to embargo and the reason for the embargo. Initial notice may be oral or written and may be provided in person or by telephone, mail, facsimile transmission, email, or other electronic means;
(2) Affix a tag or marking to the cannabis or cannabis products, or component thereof, subject to embargo; and
(3) Provide an inventory of the embargoed items to the licensee or product owner. (c) The Department shall further provide written notice to the licensee or product owner of the embargoed items that includes the following:
(1) The factual and legal bases for the embargo;
(2) A description of the cannabis or cannabis products under embargo; (3) A request for a written plan to address the issues(s) that resulted in the embargo; Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 202 of 216 (4) A summary of the proceedings for condemnation in accordance with chapter 5 (commencing with section 11500) of part 1 of division 3 of title 2 of the Government Code;
(5) Notification that the embargoed items cannot be removed, sold, or disposed of without authorization of the Department or a court; and (6) The penalty for violation of the embargo.
(d) The licensee or product owner may submit a written plan to the Department that describes how the licensee or product owner will address the issue(s) that resulted in the embargo.
(1) If the Department determines that the plan will resolve the issue(s) that resulted in the embargo, and that all of the provisions of the Act and this division can be complied with, the Department will approve the plan and supervise the completion of the plan. (2) If the Department cannot approve the plan, or the Department does not receive a response from the licensee within seven (7) calendar days after providing the notice described in subsection (c), the Department may initiate condemnation proceedings in accordance with Business and Professions Code section 26039.3(f). (e) A licensee or product owner or their authorized representative may provide written consent for the voluntary condemnation and destruction of the cannabis and cannabis products under embargo. Destruction and disposal of embargoed items shall be at the licensee or product owner’s expense and shall be conducted under the supervision of the Department.
(f) A licensee or product owner shall not remove the tag or marking from cannabis or cannabis products subject to embargo.
(g) A licensee or product owner shall not remove, sell, or dispose of any cannabis or cannabis products under embargo without written permission of the Department or a court. Each item removed, sold, or disposed of without written permission of the Department or a court constitutes a separate violation of the Act. (h) A licensed cultivator or a microbusiness authorized to engage in cultivation may request permission to continue cultivation or harvesting of cannabis under embargo. The request shall be made to the Department in writing at [email protected] and shall specify the cultivation or harvesting activities in which the licensee requests to engage. The Department may, in its sole discretion, authorize and impose conditions on the continued cultivation or harvesting of the cannabis under embargo.
Authority: Section 26013, Business and Professions Code. Reference: Section 26039.3, Business and Professions Code.
§17802. Citations; Orders of Abatement; Administrative Fines. (a) The Department may issue citations containing orders of abatement and fines against a licensee, or an unlicensed person, for any acts or omissions that are in violation of any provision of the Act or this division, or any another California laws applicable to cannabis licensees including, but not limited to, state labor law.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 203 of 216 (b) The Department may issue a citation under this section to a licensee for a violation of a term or condition contained in a decision placing that licensee on probation. (c) Each citation may contain either order(s) of abatement, monetary fine(s), or both, and shall:
(1) Be in writing and describe with particularity the nature of the violation, including a reference to the statute or regulation determined to have been violated; (2) Fix a reasonable time for abatement of the violation if the citation contains an order of abatement;
(3) Assess an administrative fine of up to $5,000 per violation, per day, by a licensee and up to $30,000 per violation, per day, by an unlicensed person if the citation contains a fine;
(4) Be served personally or by certified mail; and
(5) Inform the licensee or person that they may request an informal conference, or contest the citation, or both, pursuant to section 17803 of this division. (d) Fines issued with a citation must be paid within 30 calendar days after service of the citation, unless the fine is contested. If a citation is not appealed and the fine is not paid, the full amount of the assessed fine shall be added to the fee for renewal of the license.
A license shall not be renewed without payment of the renewal fee and fine. (e) The amount of any fine assessed by the Department under this section shall take into consideration the factors listed in Business and Professions Code section 26031.5(a)(1)- (3).
(f) Nothing in this section shall be deemed to prevent the Department from filing an accusation to suspend or revoke a license where grounds for such suspension or revocation exist.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26030 and 26031.5, Business and Professions Code.
§17803. Contesting Citations.
(a) A cited licensee or person may, within 30 calendar days after service of the citation, contest the citation by submitting to the Department a written request for a hearing, conducted in accordance with chapter 5 (commencing with section 11500) of part 1 of division 3 of the Government Code. If a hearing is not requested, it is waived and payment of a fine will not constitute an admission of the violation charged. (b) In addition to requesting a hearing provided for in subsection (a), the cited licensee or person may, within 15 calendar days after service of the citation, submit a written request for an informal conference with the Department regarding the acts or omissions charged in the citation.
(c) The Department shall, within 15 calendar days after receipt of the written request, hold an informal conference with the cited licensee or person and/or their legal counsel or authorized representative.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 204 of 216 (d) At the conclusion of the informal conference, the Department may affirm, modify, or dismiss the citation, including any fines levied or orders of abatement issued. A written decision stating the reasons for the decision shall be mailed to the cited licensee or person and their legal counsel, if any, within 15 calendar days after the date of the informal conference. This decision shall be deemed to be a final order with regard to the citation issued, including the levied fine and the order of abatement, if any. (e) If the citation is dismissed, any request for a hearing shall be deemed withdrawn. If the citation is affirmed or modified, the cited licensee or person may either withdraw the request for a hearing or proceed with the administrative hearing process. (f) If the citation, including any fines levied or orders of abatement issued, is modified, the citation originally issued shall be considered withdrawn and new citation issued. If a hearing is requested for the subsequent citation, it shall be requested within 30 calendar days after issuance of the citation.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26016 and 26031.5, Business and Professions Code.
§17804. Citation Compliance.
(a) If a citation with an order of abatement is issued, the time to abate or correct a violation as provided for in the order of abatement may be extended for good cause. If a cited licensee or person who has been issued an order of abatement is unable to complete the correction within the time set forth in the citation because of conditions beyond their control after the exercise of reasonable diligence, the cited licensee or person may request an extension of time from the Department in which to complete the correction. The request must be in writing and made within the time set forth for abatement.
(b) When a citation is not contested, or if it is contested and the cited licensee or person does not prevail, failure to abate the violation within the time allowed or pay a fine that was imposed shall constitute a separate violation.
(c) Failure to timely comply with an order of abatement or pay a fine that was imposed may result in further action being taken by the Department, including, but not limited to, suspension or revocation of a license, or further administrative or civil proceedings.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26031.5, Business and Professions Code.
§17805. Minor Decoys.
(a) Peace officers may use a person under 21 years of age to attempt to purchase cannabis goods, for the purposes of enforcing the Act and to apprehend licensees, employees, or agents of licensees who sell cannabis goods to minors. For purposes of this section, a “minor” is a person under 21 years of age. (b) The following minimum standards shall apply to the use of a minor decoy:
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 205 of 216 (1) At the time of the operation, the decoy shall be less than 20 years of age. (2) A decoy shall either carry identification showing the decoy’s correct date of birth or carry no identification. A decoy who carries identification shall present it upon request to any seller of cannabis goods.
(3) A decoy shall truthfully answer any questions about their age. (4) Following any completed sale, but not later than the time a citation, if any, is issued, the peace officer directing the decoy shall make a reasonable attempt to enter the licensed premises or respond to the location where the licensee is located and have the minor decoy who purchased cannabis goods identify the alleged seller of the cannabis goods.
Authority: Sections 26013 and 26140, Business and Professions Code. Reference:
Section 26140, Business and Professions Code.
§17806. Attire and Conduct.
(a) No licensee shall allow the following:
(b) Employment or use of any person in the sale or service of cannabis goods in or upon the licensed premises while such person is unclothed or in such attire, costume, or clothing as to expose to view any portion of the breast below the top of the areola or of any portion of the pubic hair, anus, cleft of the buttocks, vulva, or genitals. (c) Employment or use of the services of any host or other person to mingle with the patrons while such host or other person is unclothed or in such attire, costume, or clothing as described in subsection (a).
(d) Encouraging or permitting any person on the licensed premises to touch, caress, or fondle the breasts, buttocks, anus, or genitals of any other person. (e) Permitting any employee or person to wear or use any device or covering, exposed to view, which simulates the breast, genitals, anus, pubic hair, or any portion thereof.
Authority: Section 26013, Business and Professions Code. Reference: Section 26011.5, Business and Professions Code.
§17807. Entertainers and Conduct.
(a) Live entertainment is permitted on a licensed premises, except that no licensee shall permit any person to perform acts of or acts that simulate:
(1) Sexual intercourse, masturbation, sodomy, bestiality, oral copulation, flagellation, or any sexual acts that are prohibited by law.
(2) Touching, caressing, or fondling of the breast, buttocks, anus, or genitals. (3) Displaying of the buttocks, breasts, pubic hair, anus, vulva, or genitals. (b) No licensee shall permit any person to use artificial devices or inanimate objects to depict any of the prohibited activities described in this section.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 206 of 216 (c) No licensee shall permit any person to remain in or upon the licensed premises who exposes to public view any portion of their breast, buttocks, genitals, or anus.
Authority: Section 26013, Business and Professions Code. Reference: Section 26011.5, Business and Professions Code.
Article 3. Disciplinary Actions
§17808. Additional Grounds for Discipline.
The following include, but are not limited to, additional grounds that constitute a basis for disciplinary action:
(a) Failure to pay a fine imposed by the Department or agreed to by the licensee. (b) Failure to take reasonable steps to correct objectionable conditions on the licensed premises, including the immediately adjacent area that is owned, leased, or rented by the licensee, that constitute a nuisance, within a reasonable time after receipt of notice to make those corrections, under Penal Code section 373a.
(c) Failure to take reasonable steps to correct objectionable conditions that occur during operating hours on any public sidewalk abutting a licensed premises and constitute a nuisance, within a reasonable time after receipt of notice to correct those conditions from the Department. This subsection shall apply to a licensee only upon written notice to the licensee from the Department. The Department shall issue this written notice upon its own determination, or upon a request from the local law enforcement agency in whose jurisdiction the licensed premises is located, that is supported by substantial evidence that persistent objectionable conditions are occurring on the public sidewalk abutting the licensed premises. For purposes of this subsection:
(1) “Any public sidewalk abutting a licensed premises” means the publicly owned, pedestrian-traveled way, not more than 20 feet from the licensed premises, that is located between a licensed premises, including any immediately adjacent area that is owned, leased, or rented by the licensee, and a public street. (2) “Objectionable conditions that constitute a nuisance” means disturbance of the peace, public intoxication, drinking alcoholic beverages in public, smoking or ingesting cannabis or cannabis products in public, harassment of passersby, gambling, prostitution, loitering, public urination, lewd conduct, drug trafficking, or excessive loud noise. (3) “Reasonable steps” means all of the following:
(A) Calling the local law enforcement agency. Timely calls to the local law enforcement agency that are placed by the licensee or their agents or employees shall not be construed by the Department as evidence of objectionable conditions that constitute a nuisance.
(B) Requesting that those persons engaging in activities causing objectionable conditions to cease those activities, unless the licensee or their agents or employees feel that their personal safety would be threatened in making that request. (C) Making good faith efforts to remove items that facilitate loitering, such as furniture, Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 207 of 216 except those structures approved or permitted by the local jurisdiction. The licensee shall not be liable for the removal of those items that facilitate loitering. (4) When determining what constitutes “reasonable steps,” the Department shall consider site configuration constraints related to the unique circumstances of the nature of the business.
(5) Even after correcting the objectionable conditions that constitute a nuisance, the licensee has a continuing obligation to meet the requirements of subsections (b) and (c), and failure to do so shall constitute grounds for disciplinary action. (d) Knowingly permitting the illegal sale, or negotiations for the illegal sale, of controlled substances or dangerous drugs upon the licensed premises. Successive sales, or negotiations for sales, over any continuous period of time shall be deemed evidence of permission. As used in this section, “controlled substances” has the same meaning as in Health and Safety Code section 11007, and “dangerous drugs” has the same meaning as in Business and Professions Code section 4022.
(e) If the licensee has employed or permitted any person to solicit or encourage others, directly or indirectly, to buy that person’s cannabis goods in the licensed premises under any commission, percentage, salary, or other profit-sharing plan, scheme, or conspiracy.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26011.5, 26012, 26030 and 26031, Business and Professions Code.
§17809. Disciplinary Actions.
(a) When an accusation recommending disciplinary action against a licensee has been filed pursuant to Business and Professions Code section 26031, the accusation shall be served on the licensee in accordance with Government Code section 11505. (b) A hearing shall be conducted in accordance with the provisions of chapter 5 (commencing with section 11500) of part 1 of division 3 of title 2 of the Government Code to determine if cause exists to take action against the licensee. At the hearing, the Department shall have all of the powers granted by the statutes cited above and by the Business and Professions Code.
(c) If a hearing on an accusation against a licensee results in a finding that the licensee has committed any of the acts or omissions constituting grounds for disciplinary action, the Department may order the license revoked, suspended outright for a specified period of time, or suspended on probationary restriction for a specified period of time, including terms and conditions of probation the Department considers appropriate on the basis of its findings, impose a fine, or any combination thereof. The Department may also issue other lawful orders it considers appropriate on the basis of its findings.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 208 of 216 (d) An accusation may be terminated by written stipulation at any time prior to the conclusion of the hearing on the accusation. If a licensee submits a proposed stipulation to the Department for its consideration and the Department subsequently declines to accept the proposed stipulation, the Department shall not thereafter be disqualified from hearing evidence on the accusation and taking action thereon as authorized in this section.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26031 and 26034, Business and Professions Code.
§17810. Interim Suspension.
(a) Pursuant to Business and Professions Code section 494, the Department may petition for an interim order to suspend any license or impose licensing restrictions upon any licensee if:
(1) The licensee has engaged in acts or omissions constituting a violation of the Business and Professions Code or this division, or been convicted of a crime substantially related to the licensed activity, and
(2) Permitting the licensee to continue to engage in the licensed activity would endanger the public health, safety, or welfare.
(b) An interim order for suspension or restrictions may be issued with notice, as follows:
(1) The Department shall provide the licensee with at least 15 days’ notice of the hearing on the petition for an interim order.
(2) The notice shall include all documents submitted in support of the petition. (c) An interim order for suspension or restrictions may be issued without notice to the licensee if it appears from the Department’s petition and supporting documents that serious injury would result to the public before the matter could be heard on notice. (2) The licensee shall be entitled to a hearing on the petition within 20 days after issuance of the initial interim order.
(3) Notice of the hearing shall be provided to the licensee by the Department within two days after issuance of the initial interim order.
(4) The licensee shall receive all documents in support of the petition. (d) The Department shall file an accusation, pursuant to chapter 5 (commencing with section 11500) of part 1 of division 3 of title 2 of the Government Code, within 15 calendar days after issuance of the interim order.
Authority: Section 26013, Business and Professions Code; Reference: Sections 494, 26011.5, 26012 and 26031, Business and Professions Code. §17813. Enforcement Costs.
(a) In any order in resolution of a disciplinary proceeding for suspension or revocation of a license, the Department may request the administrative law judge to direct a licensee Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 209 of 216 found to have committed a violation or violations of the Act or this division to pay a sum not to exceed the reasonable costs of the investigation and enforcement of the case. (b) A certified copy of the actual costs, or a good faith estimate of costs where actual costs are not available, signed by the Department’s designated representative shall be prima facie evidence of reasonable costs of investigation and prosecution of the case.
The costs shall include the amount of investigative and enforcement costs up to the date of the hearing, including, but not limited to, charges imposed by the Attorney General. (c) The administrative law judge shall make a proposed finding of the amount of reasonable costs of investigation and prosecution of the case when requested pursuant to subsection (a). The Department may reduce or eliminate the cost award, or remand to the administrative law judge where the proposed decision fails to make a finding on costs requested pursuant to subsection (a).
(d) Where an order for recovery of costs is made and timely payment is not made as directed in the decision, the Department may enforce the order for repayment in any appropriate court. This right of enforcement shall be in addition to any other rights the Department may have to recover costs.
(e) In any action for recovery of costs, proof of the decision shall be conclusive proof of the validity of the order of payment and the terms for payment. (f) Except as provided in subsection (g), the Department shall not renew or reinstate any license of a licensee who has failed to pay all of the costs ordered under this division. (g) Notwithstanding subsection (f), the Department may, in its discretion, conditionally renew or reinstate for a maximum of one year the license of any licensee who demonstrates financial hardship and enters into a formal agreement with the Department for reimbursement within that one-year period for the unpaid costs. (h) Nothing in this section shall preclude the Department from including recovery of the costs of investigation and enforcement of a case in any stipulated settlement.
Authority: Section 26013, Business and Professions Code; Reference: Sections 125.3, 26012 and 26031, Business and Professions Code.
§17814. Disciplinary Guidelines.
In reaching a decision on a disciplinary action under the Act and the Administrative Procedure Act (Govt. Code section 11400 et seq.), the Department shall consider the disciplinary guidelines entitled “Department of Cannabis Control Disciplinary Guidelines for All Commercial Cannabis Licenses Amended September 2021,” which are hereby incorporated by reference. Deviation from these guidelines and orders, including the standard terms of probation, is appropriate where the Department in its sole discretion determines that the facts of the particular case warrant such a deviation (e.g., the presence of mitigating factors, the age of the case, or evidentiary problems).
Authority: Section 26013, Business and Professions Code; Reference: Sections 26012 and 26031, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 210 of 216 Article 4. Emergency Decision and Orders
§17815. Emergency Decision and Order.
(a) The Department may issue an emergency decision and order for temporary, interim relief to prevent or avoid immediate danger to the public health, safety, or welfare. Such circumstances include, but are not limited to, the following:
(1) The Department has information that cannabis goods at a licensee’s premises have a reasonable probability of causing serious adverse health consequences or death. (2) To prevent the sale, transfer, or transport of contaminated or illegal cannabis goods in possession of a licensee.
(3) The Department observes or has information that conditions at a licensee’s premises exist that present an immediate risk to worker or public health and safety. (4) To prevent illegal diversion of cannabis goods, or other criminal activity at a licensee’s premises.
(5) To prevent the destruction of evidence related to illegal activity or violations of the Act.
(6) To prevent misrepresentation to the public, such as selling untested cannabis goods, providing inaccurate information about the cannabis goods or cannabis goods that have been obtained from an unlicensed person.
(b) Temporary, interim relief may include a suspension or administrative hold by one or more of the following:
(1) An order temporarily suspending a license.
(2) An order to segregate or isolate specific cannabis goods. (3) An order prohibiting the movement of cannabis goods to or from the premises. (4) An order prohibiting the sale of specific cannabis goods. (5) An order prohibiting the destruction of specific cannabis goods. (c) The emergency decision and order issued by the Department shall include a brief explanation of the factual and legal bases of the emergency decision that justify the Department’s determination that emergency action is necessary, and the specific actions ordered. The emergency decision and order shall be effective when issued or as otherwise provided by the decision and order.
(d) To issue an administrative hold that prohibits activity related to specified cannabis goods, the Department shall comply with the following:
(1) Provide notice of the administrative hold that includes a description of the cannabis goods subject to the administrative hold.
(2) Following notice, the Department shall identify the cannabis goods subject to the administrative hold in the track and trace system.
(e) A licensee subject to an administrative hold shall comply with the following:
(1) Within 24 hours after receipt of notice of the administrative hold, physically segregate Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 211 of 216 all designated cannabis goods in a limited-access area of the licensed premises. The licensee shall ensure that all cannabis goods subject to the administrative hold are safeguarded and preserved in a manner that prevents tampering, degradation, or contamination.
(2) While the administrative hold is in effect, the licensee shall not sell, donate, transfer, transport, gift, or destroy the cannabis goods subject to the hold. (3) A microbusiness licensee subject to an administrative hold may continue to cultivate any cannabis subject to an administrative hold. If the cannabis subject to the hold must be harvested, the licensee shall place the harvested cannabis into separate batches. (4) A licensee may voluntarily surrender cannabis goods that are subject to an administrative hold. The licensee shall identify the cannabis goods being voluntarily surrendered in the track and trace system. Voluntary surrender shall not be construed to waive the right to a hearing or any associated rights.
(f) To issue a temporary suspension, the Department shall specify in the order that the licensee shall immediately cease conducting all commercial cannabis activities under its license, unless otherwise specified in the order.
(g) A microbusiness licensee subject to a temporary suspension may continue to cultivate cannabis at the licensed premises only as prescribed by the Department in the order. If the order permits the cannabis to be harvested, the licensee shall place the harvested cannabis into separate batches.
(h) The emergency decision and order for temporary, interim relief shall be issued in accordance with the following procedures:
(1) The Department shall give notice of the emergency decision and order and an opportunity to be heard to the licensee prior to the issuance, or effective date, of the emergency decision and order, if practicable.
(2) Notice and hearing under this section may be oral or written and may be provided by telephone, personal service, mail, facsimile transmission, electronic mail, or other electronic means, as the circumstances permit.
(3) Notice may be given to the licensee, any person meeting the definition of owner for the license, or to a manager or other personnel at the licensed premises. (4) Upon receipt of the notice, the licensee may request a hearing within three (3) business days by submitting a written request for hearing to the Department through electronic mail, facsimile transmission, or other means. The hearing shall commence within five (5) business days after receipt of the written request for hearing, unless a later time is agreed upon by the Department and the licensee. (5) The hearing may be conducted in the same manner as an informal conference under section 17803; however, the timeframes provided in section 17803 shall not apply to a hearing under this section. Pre-hearing discovery or cross-examination of witnesses is not required under this section.
(6) The emergency decision and order shall be affirmed, modified, or set aside as determined appropriate by the Department within five (5) business days after the hearing.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 212 of 216 (i) Within ten (10) calendar days after the issuance or effective date of the emergency decision and order for temporary, interim relief, the Department shall commence adjudicative proceedings in accordance with chapter 5 (commencing with section 11500) of part 1 of division 3 of title 2 of the Government Code to resolve the underlying issues giving rise to the temporary, interim relief.
(j) After formal proceedings are held pursuant to subsection (i), a licensee aggrieved by a final decision of the Department may appeal the decision to the Cannabis Control Appeals Panel pursuant to section 26043 of the Act.
(k) Notwithstanding administrative proceedings commenced pursuant to subsection (i), the licensee may obtain judicial review of the emergency decision and order pursuant to section 1094.5 of the Code of Civil Procedure in the manner provided in section 11460.80 of the Government Code without exhaustion of administrative remedies. (l) The Department’s authority provided by this section may be used in addition to any civil, criminal, or other administrative remedies available to the Department.
Authority: Section 26013, Business and Professions Code. Reference: Section 26012, Business and Professions Code; and Sections 11460.10, 11460.20, 11460.30, 11460.40, 11460.50, 11460.60, 11460.70 and 11460.80, Government Code.
Article 5. Posting Notices of Suspension and Revocation §17816. Posting of Notice of Suspension.
(a) A licensee whose license has been suspended shall conspicuously and continuously display a notice on the exterior of the licensee’s premises for the duration of the suspension.
(b) The notice shall be 11 inches in length and 8.5 inches in width. The notice shall read:
NOTICE OF SUSPENSION
The Department of Cannabis Control License(s) Issued For This Premises Has Been Suspended For Violation of State Law
(c) Advertising or posting signs to the effect that the licensed premises has been closed or that business has been suspended for any reason other than the reason provided in the decision suspending the license, shall be deemed a violation of this section. (d) Failure to display the notice as required in this section or removal of the notice prior to the expiration of the suspension shall be a violation of this section and may result in additional disciplinary action.
(e) A licensee shall notify the Department by submitting the Licensee Notification and Request Form, Notifications and Requests Regarding Regulatory Compliance, DCC-LIC028 (New 9/21), incorporated herein by reference, within 24 hours of discovering that the notice under subsection (b) of this section has been removed or damaged to an extent that makes the notice illegible.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26011.5 and 26012, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 213 of 216 §17817. Posting of Notice of Revocation.
(a) A person whose license has been revoked shall conspicuously display a notice on the exterior of the premises indicating that the license has been revoked. The notice shall remain continuously on the premises for at least 15 calendar days. (b) The notice shall be 11 inches in length and 8.5 inches in width. The notice shall read:
NOTICE OF REVOCATION
The Department of Cannabis Control License(s) Issued For This Premises Has Been Revoked For Violation of State Law
(c) Advertising or posting signs to the effect that the premises has been closed, or that business has been suspended for any reason other than the reason provided in the decision revoking the license, shall be deemed a violation of this section. (d) If the Department revokes a license at a licensed premises that has one or more licenses at the location that will remain active after the revocation, the revocation notice shall remain posted for a period of at least 15 calendar days. (e) Failure to display the notice for the time required in this section shall be a violation of this section and may result in additional disciplinary action. (f) A person whose license has been revoked shall notify the Department by submitting the Licensee Notification and Request Form, Notifications and Requests Regarding Regulatory Compliance, DCC-LIC-028 (New 9/21), incorporated herein by reference, within 24 hours of discovering that the notice under subsection (b) has been removed or damaged to an extent that makes the notice illegible.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26011.5 and 26012, Business and Professions Code.
Chapter 13. Other Provisions
Article 1. Research Funding
§17900. Eligibility.
(a) Only public universities in California shall be eligible to be selected to receive funds disbursed pursuant to Revenue and Taxation Code section 34019(b). (b) Subject to available funding, the amounts to be disbursed to the university or universities will not exceed the sum of ten million dollars ($10,000,000) for each fiscal year, ending with the 2028-2029 fiscal year.
Authority: Section 26013, Business and Professions Code. Reference: Section 34019, Revenue and Taxation Code.
§17901. Request for Proposals.
(a) A Request for Proposal (RFP) is the document issued by the Department to notify all eligible fund recipients of the following, at a minimum:
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 214 of 216 (1) The funding available for research related to the Act or this division; (2) Disbursement of funds to eligible applicants through a review and selection process, including the criteria that will be used for review and selection; (3) The specified timeframes for the proposal review and selection process, including the deadline for submission of proposals;
(4) Proposal requirements, including necessary documentation; (5) Any priorities or restrictions imposed upon the use of the funds; (6) The governing statutes and regulations; and
(7) The name, address, and telephone number of a contact person within the Department who can provide further information regarding the process for submission of proposals.
Authority: Section 26013, Business and Professions Code. Reference: Section 34019, Revenue and Taxation Code.
§17902. Selection Process and Criteria.
(a) The selection process shall involve eligible proposals timely received by the Department, in response to an applicable RFP, or similar notice. (b) The Department will consider only one proposal per applicant for a given research project. Applicants may submit more than one proposal if the proposals are for separate and distinct research projects or activities.
(c) The Department will make a selection for funding based on criteria including, but not limited to:
(1) The extent to which the proposed project is designed to achieve objectives specified in Revenue and Taxation Code section 34019(b).
(2) The extent to which the proposed project is designed to achieve measurable outcomes, and the clarity of the measures for success, including, for research-based objectives, the scientific and technical merit of the proposed project as evaluated by relevant experts.
(3) The extent to which the proposed project is feasible, demonstrated by:
(A) A timeline for project completion, including readiness; and (B) Budget detail.
(4) Qualifications of the staff who will be assigned to or working on the proposed project. (5) Any other criteria to determine the proposed project’s efficacy in evaluating the implementation and effect of the Act.
(d) Applicants selected for funding will be notified of the selection and amount of funding in writing.
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 215 of 216 (e) The Department’s selection decision is final and not subject to appeal.
Authority: Section 26013, Business and Professions Code. Reference: Section 34019, Revenue and Taxation Code.
§17903. Release of Funds.
(a) The Department shall not cause funds to be disbursed until the recipient has executed a Grant Agreement and any other required documents. (b) Selected recipients shall receive a single disbursement of funds for the duration of the research project.
(c) Funds released to the recipient that will be used for the purchase of any equipment related to the research project shall, at a minimum, meet the following conditions:
(1) Prior to the purchase of any equipment, the recipient shall obtain written approval from the Department.
(2) Receipts or other documentation for the purchase of any equipment shall be provided to the Department immediately upon purchase and request and retained pursuant to section 17904.
(d) Any funds that are not used prior to the completion of the research project shall be forfeited.
Authority: Section 26013, Business and Professions Code. Reference: Section 34019, Revenue and Taxation Code.
§17904. Reports to the Department.
(a) The recipient of funds shall provide regular performance reports to the Department in the following manner, unless otherwise specified in the Grant Agreement:
(1) At monthly intervals for research projects with an estimated completion time not exceeding one year.
(2) At quarterly intervals for research projects with an estimated completion time exceeding one year.
(b) Performance reports shall include, at a minimum:
(1) A detailed, estimated time schedule of completion for the research project; (2) A description of any measurable outcomes, results achieved, or other completed objectives of the research project;
(3) A description of remaining work to be completed;
(4) A summary of expenditures of the funds and statement of whether the research project is meeting the proposed budget. If not, the reasons for any discrepancies and a list of actions that will be taken to ensure completion of the research project; and Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 216 of 216 (5) Any changes to the information provided in the proposal, including, but not limited to, change in staff.
Authority: Section 26013, Business and Professions Code. Reference: Section 34019, Revenue and Taxation Code.
§17905. Research Records.
Recipients shall retain all research and financial data necessary to substantiate the purposes for which the funds were spent for the duration of the funding, and for a period of seven years after completion of the research project. Recipients shall provide this documentation to the Department upon request.
Authority: Section 26013, Business and Professions Code. Reference: Section 26160, Business and Professions Code; and Section 34019, Revenue and Taxation Code.
Agency Comments on
Negative Declaration
Gavin Newsom
Governor
Nicole Elliott
Director
Licensing Division • 2920 Kilgore Road, Rancho Cordova, CA 95670 Business, Consumer Services 844-61-CA-DCC (844-612-2322) • [email protected] • www.cannabis.ca.gov and Housing Agency March 08, 2022
Heather Gurewitz
City of Fort Bragg
416 N. Franklin St.
Fort Bragg, CA 95437
email: [email protected]
Re: Review of Initial Study/Negative Declaration (SCH#2022020245) Amendments to the City of Fort Bragg Municipal Code Chapter 9.30 Cannabis Businesses and Title 18 Inland Land Use Development Code to Regulate Cannabis Businesses Dear Ms. Gurewitz:
Thank you for providing the California Department of Cannabis Control (DCC) an opportunity to comment on the Initial Study/Negative Declaration (IS/ND) (SCH#2022020245) prepared by the City of Fort Bragg for the proposed Amendments to the City of Fort Bragg Municipal Code Chapter
9.30 Cannabis Businesses and Title 18 Inland Land Use Development Code to Regulate Cannabis Businesses (Proposed Project).
DCC has jurisdiction over the issuance of cannabis cultivation, manufacturing, distribution, testing, retail, and microbusiness licenses in California. DCC issues licenses to commercial cannabis facilities, where the local jurisdiction authorizes these activities. (Bus. & Prof. Code, § 26012(a).) All commercial cannabis businesses within California require a license from DCC. For more information pertaining to commercial cannabis business license requirements, including DCC regulations, please visit: https://cannabis.ca.gov/resources/rulemaking/.
CEQA Requirements for Annual State Cannabis Business License Applicants Pursuant to state regulations, DCC requires an annual license applicant to provide evidence of exemption from, or compliance with, CEQA (Cal. Code of Regs., tit.4 § 15010(b)). The regulations require applicants to provide:
(1) A signed copy of a project-specific Notice of Determination or Notice of Exemption and a copy of the associated CEQA document, or reference to where it may be located electronically, a project description, and/or any accompanying permitting documentation from the local jurisdiction used for review in determining site specific environmental compliance. Documentation may include a copy of the administrative record previously certified or adopted by the local jurisdiction that has already reviewed the commercial cannabis business’ proposed commercial cannabis activities. […] Department of Cannabis Control March 08, 2022 – Comments re Fort Bragg Cannabis Ordinance (SCH No. 2022020245) | Page 2 Licensing Division • 2920 Kilgore Road, Rancho Cordova, CA 95670 Business, Consumer Services 844-61-CA-DCC (844-612-2322) • [email protected] • www.cannabis.ca.gov and Housing Agency When the project has been evaluated in a site-specific environmental document previously certified or adopted by the local Lead Agency, DCC will evaluate the project as a Responsible Agency, as provided in Section 15096 of the CEQA Guidelines. When the local jurisdiction prepares a Notice of Exemption (NOE) for a categorical exemption, DCC will act as the CEQA Lead Agency and conduct an independent verification, as provided in Section 15300 et seq. of the CEQA Guidelines, as to whether the exemption is appropriate for the department’s purposes.
DCC’s Comments on the IS/ND
DCC offers the following comments concerning the IS/ND.
1. CEQA Streamlining
DCC encourages local jurisdictions to use CEQA streamlining options, when appropriate, including the use of a programmatic CEQA document to cover CEQA review for later activities. If the City of Fort Bragg (City) intends to rely on the IS/ND for site-specific CEQA compliance for later activities, DCC recommends that the City prepare Notices of Determination (NODs) and file them with the State Clearinghouse for activities approved in this manner.
Section 15168(c)(4) of the CEQA Guidelines recommends that:
Where the later activities involve site specific operations, the agency should use a written checklist or similar device to document the evaluation of the site and the activity to determine whether the environmental effects of the operation were within the scope of the program EIR.
If the City intends to rely on the IS/ND for site-specific CEQA compliance for individual cultivation projects, DCC requests that the City prepare a checklist for each subsequent activity, pursuant to Section 15168(c)(4), and provide copies to applicants, for inclusion with their applications to DCC for state cultivation licenses. This would provide the documentation needed by DCC of the City’s reasoning in concluding that the proposed activity fits within the analysis covered by the City’s IS/ND and that subsequent environmental review is not required.
2. Categorical Exemptions
When site-specific cultivation projects are determined by the City to be categorically exempt from CEQA, DCC recommends that the City use one of the following options available for cultivation projects to document the City’s determination:
▪ Complete an NOE for any projects where it can be demonstrated that the project would not have the potential for a significant effect on the environment (General Rule Exemption, CEQA Guidelines § 15061(b)(3)); or
▪ Complete an NOE for any projects qualifying for one or more classes of categorical exemption (CEQA Guidelines § 15300 et. seq.).
DCC recommends that, in addition to notice-filing requirements under Public Resources Code section 21152 and CEQA Guidelines section 15062, local Lead Agencies file a copy of an NOE Department of Cannabis Control March 08, 2022 – Comments re Fort Bragg Cannabis Ordinance (SCH No. 2022020245) | Page 3 Licensing Division • 2920 Kilgore Road, Rancho Cordova, CA 95670 Business, Consumer Services 844-61-CA-DCC (844-612-2322) • [email protected] • www.cannabis.ca.gov and Housing Agency with the State Clearinghouse. DCC further recommends that local Lead Agencies provide a copy of the signed and dated NOE, and evidence of posting if completed, to cultivation applicants so that applicants may provide this evidence to DCC as part of their license application packages.
Conclusion
DCC appreciates the opportunity to provide comments on the IS/ND for the Proposed Project. If you have any questions about our comments or wish to discuss them, please contact Kevin Ponce, Senior Environmental Scientist Supervisor, at (916) 247-1659 or via e-mail at [email protected].
Sincerely,
Lindsay Rains
Licensing Program Manager
PUBLIC COMMENTS
1 Peters, Sarah
From: Jacob Patterson <[email protected]>
Sent: Thursday, February 24, 2022 9:13 AM
To: cdd
Cc: Peters, Sarah; Gurewitz, Heather; O'Neal, Chantell
Subject: Comment for Admin Record of Cannabis Ordinance Update and Sunshine-Holistic's pending application
Attachments: Sacramento Police Investigate Burglaries Targeting Cannabis Distributors.pdf Follow Up Flag: Follow up
Flag Status: Flagged
Sarah,
Please send this to the Planning Commission for their consideration as they work on the cannabis ordinances but also add it to the administrative record for Sunshine-Holistic's pending third permit application for the former Floor Store location. I know that third application is on hold while the cannabis retail moratorium remains in effect but you can still accept comments for when it moves forward through the review process. This article is also relevant to the Planning Commission's discussion of the cannabis ordinance update project as they determine where and how to permit these kinds of businesses. I think it is relevant to understand that retail and delivery-only dispensaries, which is the kind of business discussed in the attached article, do have significant safety concerns that could impact the surrounding neighborhood. That issue was dismissed by some during the prior hearings but here is further evidence that it is a legitimate concern. Please note the extent of the activities of what some might try to classify as merely accessory to the dispensary operations.
Thanks,
--Jacob
https://gooddaysacramento.cbslocal.com/2021/12/20/sacramento-cannabis-distributors-burglaries/ Sacramento Police Investigate Burglaries Targeting Cannabis Distributors December 20, 2021 at 10:31 pm
SACRAMENTO (CBS13) — Sacramento police are investigating a series of burglaries targeting local cannabis distributors.
The thieves are breaking into warehouses in the early morning hours and taking off with up to $100,000 worth of marijuana.
A bent and busted iron fence was just some of the damage left behind by a crew of cannabis crooks.
“They cut gates, they drove vehicles through walls, they pulled out all the stops to get in,” said Brandy Moulton, CEO of Sovereign.
Sacramento police say there’s been more than 50 marijuana business break-ins since August, including at least six in just the last week. “We unfortunately have seen an enormous increase in cannabis related burglaries,” said Sacramento Police Sgt. Matt Young.
Surveillance video from the most recent crime shows a crew of at least seven people, in two cars, breaking into a warehouse run by Sovereign, a delivery-only dispensary.
“They made it out before the cops did show up and they hit somebody else seven minutes down the road,” Moulton said.
Moulton’s warehouse has now been targeted twice in the last two weeks. “For smaller, locally owned mom-and-pop-style businesses like myself, a financial hit like this can literally put you out of business,” she said.
Most warehouses are not open to the public and have large cannabis growing operations inside. But owners say the thieves often leave the plants – and only take cash and marijuana that’s already been harvested for distribution.
The city requires all cannabis production facilities to have cameras, alarms, and other security in place, but police are urging owners to take even more measures to protect their pot.
“The way that these series go away is if the criminals make entry and they don’t get anything,” Sgt. Young said. “That will send a message to them that this geographic area isn’t good for them to attempt these crime in.” Moulton’s employees are now taking shifts to monitor security video feeds in real time.
“I don’t know if I can take one more hit and I do unfortunately suspect they will be back,” Moulton said.
Business owners say they also have problems getting insurance for these type of crimes because the growing and sale of marijuana is still illegal on the federal level.
From: Jay Koski
To: [email protected]; Peters, Lindy; [email protected]; Albin-Smith, Tess; Rafanan, Marcia; Lemos, June; Gurewitz, Heather; Peters, Sarah; Naulty, John; O"Neal, Chantell Subject: Pot dispensaries and crime
Date: Sunday, February 27, 2022 3:06:06 AM
How are you not putting a number on dispensaries in our industrial business district? How are you allowing these business right up against our residential neighborhood?How many police do we have on duty from 10:00pm to 6:00 am? What gives you the right to put our police force and the people of this town in harms way? These types of business are a huge target for criminal activity, why do you not see and understand that? If criminals are brave enough to rob these businesses in the big city where they have huge police forces what makes you think it can't happen here? What makes you believe we are immune to this type of criminal activity? You are rolling the dice with lives of the police force and people of this town for tax dollars. I imagine our police department is already spread very thin during the night time while people should be home and sleeping comfortably in their beds. All you you are going to be doing buy having no limit and allowing these business wherever they want to be in this town is inviting unwanted criminal activity, our town should not have to put itself in harms way for a few tax dollars. You, our city council is wearing blinders to a business types that is going to invite unwanted criminal activity.I don't understand how you can't see this, it is on the news daily.
It's not a matter of will this type of crime happen if we allow as many of these business as we want in town with no limits, it's when will it happen, what will happen, will lives be lost? What are you going to do, do you think the tax dollars generated from these business will be enough to put a bunch of extra policeman on duty 24 hours a day to protect those tax dollars? I don't think the extra tax money will be there, you will just be chasing your own tails. Please I ask you to reconsider the new pot zoning regulations you are trying to impose on the people of this town. Just because you're an elected official it does not give you the right to put our police force and the people of this town in harm's way for tax dollars. I think you all may need to backtrack your thinking on this and put more emphasis on safety of the people and not tax dollars. If something terrible happens in this town because of this type of business allowed based on your zoning regulations by your administration you will be the ones responsible wether you think so or not because it was you who allowed them. We our a small town with a small police force please consider this when making your final decisions on these matters.
From: Jay Koski
To: Norvell, Bernie; Albin-Smith, Tess; Peters, Lindy; [email protected]; Rafanan, Marcia; Gurewitz, Heather; Lemos, June; Peters, Sarah; sarah mccormick; Naulty, John Subject: Cannabis dispensaries
Date: Friday, February 25, 2022 7:48:40 AM
So you the council really believe that these businesses are safe for the people of Fort Bragg?I think you need to give this another thought before putting these business within feet of the people of our town. You have all been defending how safe they are compared to other businesses since the beginning of all of this.I don't think so.
Jay Koski
From: Jacob Patterson
To: cdd; Gurewitz, Heather
Cc: O"Neal, Chantell; Smith, John; Spaur, David; sarah mccormick; [email protected] Subject: Comments on the Draft Initial Study & Negative declaration for the proposed ordinances revising commercial cannabis regulations
Date: Friday, March 18, 2022 12:19:30 PM
City of Fort Bragg Team,
Please accept these comments and objections to the draft Initial Study & Negative Declaration (IS/ND) prepared by the City and apparently then prematurely circulated for public review. I object to the process by which the City is attempting to manage the environmental review process for the City-initiated changes to its commercial cannabis regulations. The City issued a Notice of Availability (NOA) and circulated a draft IS/ND for public and responsible agency review purporting to analyze the project, which is the City's intended adoption of related ordinances updating the City's commercial cannabis regulations in Title 9 and Title 18 of the City's Municipal Code. (note that the NOA incorrectly refers to the CEQA document as both an IS/ND and an IS/MND.) However, this project has not been fully defined yet because there still aren't any proposed ordinances for anyone to review. There was a draft ordinance that was included in the agenda packet for the continued public hearing before the Planning Commission on March 9, 2022 purporting to be the draft ordinance for the portion of the project associated with updates to Title 18 but that was not actually the case, which was stated by the City's project consultant during that hearing. The actual proposed ordinance for the updates to Title 18 is yet to be made available for the public to review, although I believe the City indicated it would likely be included in the agenda materials for the special meeting of the Planning Commission scheduled for March 23, 2022.
Please note that the staff materials for the March 9, 2022 Planning Commission meeting included numerous issues and displayed serious problems concerning the CEQA review, which further undermines the credibility of the environmental analysis in the current draft IS/ND. Chief among these issues was staff's reference to a now expired statutory exemption from CEQA review that would have applied to this project had the orinances been adopted prior to July 1, 2021. That statutory exemption has expired by its explicit terms and a condition of relying on that exemption was that any local land use regulations needed to require future discretionary reviews and site-specific CEQA analysis for each project application. The future discretionary reviews condition of the now-expired statutory exemption is not an aspect that still applies to the CEQA review for the current project but which appears to be improperly incorporated into the proposed analysis in the draft IS/ND now being circulated for review and comment. That should be addressed and likely requires substantial and significant revisions to the CEQA document for this pending project.
The actual draft of the proposed ordinance is not yet available for public or responsible agency review. As such, it is impossible for any member of the public or any responsible agency to evaluate the adequacy of the draft IS/ND because the necessary information, the actual ordinance or ordinances, have not been prepared even though the official review period for the draft IS/ND is scheduled to come to a close today based on the NOA. What we have now, and what is purportedly analyzed in the draft IS/ND, are merely staff assumptions and interpretations about what the ordinances might contain but that is inadequate and substantively and procedurally defective. CEQA requires something more and I respectfully request that the City prepare a new IS/ND (or other appropriate CEQA document, which is likely to be a Mitigated Negative declaration or even and Environmental Impact Report) based on the actual proposed ordinances and make the ordinances and the CEQA document available at the same time for public and responsible agency review.
That said, even if the ordinances had been made available, if they reflected the prior majority direction of the City Council, the existing IS/ND currently circulating for public review is inadequate and defective as written, at least in my opinion. I would (and do) object to the draft IS/ND on that basis as well, which I have partially addressed in prior written and oral public comments for the Planning Commission public hearing meetings that have already occurred.
For example, the IS/ND provides a false and misleading description of the baseline conditions and of the scope of the changes in the (non-existent) proposed ordinances. These errors and omissions include but are not limited to a lack of maximum buildout analysis due to the new cultivation uses being added to the use tables in Title 18. Staff incorrectly asserts that because future discretionary reviews will include CEQA analysis for individual projects, that we do not need to analyze the impacts of the ordinances themselves. That is inconsistent with CEQA requirements and appears to be based on a misunderstanding between what is improper speculation about unknown future events and what level of current review is necessary for a change to the land use regulations. Further, staff asserts that the required cannabis business licenses are "discretionary" and would trigger CEQA review for those uses that are or may be proposed to be permitted by right under the new regulations. The cannabis business licenses do not appear to meet the criteria to be considered discretionary rather than ministerial based on the City's existing code or even based on the summary of proposed amendments that were presented in a working draft at the first meeting of the public hearing before the Planning Commission. There are no discretionary findings (or any findings at all) that are required in order to issue the cannabis business licenses. Just because the City can deny some cannabis business license applications if the applicant doesn't meet some pre-determined objective criteria does not make those licenses discretionary. On the contrary, they appear to be ministerial permits based on a review checklist. The City officials' determinations about whether or not the permit criteria are met are similar in nature to the issuance criteria involved in other ministerial permits like building permits, which are only issued if the application materials satisfy the applicable building code requirements.
The main (but not only) substantive issues that are lacking in the existing draft IS/ND appear to include the following: a lack of water supply analysis due to the new cannabis cultivation uses and transportation and greenhouse gas emissions analysis due to the new distribution activities that would be permitted by right. In my opinion, it is not improper speculation to evaluate the projected water use of newly-permitted commercial cannabis cultivation uses based on the addition of those uses to the existing use tables where they were not permitted before. The same sort of buildout analysis that applies to projects to rezone particular property apply to adding new uses to existing use tables. In my opinion, what is required and what is lacking in the current draft is taking the known area of each relevant zoning district where such uses are proposed to be permitted or conditionally permitted and calculating the projected impacts from now allowing those uses using a maximum buildout analysis of the projected water of these cultivation activities. Similarly, the new distribution uses that will be permitted for the cannabis retail uses including a delivery component need to be analyzed based on the existing areas zoned for each district where it is now proposed to be permitted by right rather than what is currently a discretionary review requiring a minor use permit. of course, without any actual proposed ordinances and with shifting majority direction concerning where such uses are going to be permitted and which level of future review will apply in a particular zoning district factoring in potential exclusion and.or buffer zones, we cannot effectively analyze anything. In that respect, I submit these comments and objections for the City team to consider not just the adequacy of the existing draft IS/ND but as they further develop the actual proposed ordinances and revise or re-write the appropriate CEQA documents and circulate it for public review and comment again once the proposed ordinances are actually ready and available to the public and responsible agencies.
Thank you for your consideration of these important issues, Jacob Patterson
From: Jacob Patterson
To: Peters, Sarah; Lemos, June; cdd
Subject: Fwd: Planning Commission Hearing on Cannabis 3/23/2022 Date: Monday, March 21, 2022 9:29:49 AM
City of Fort Bragg Staff & Planning Commission,
Please treat this as a public comment and objection for this agenda item. As I recall, no one made a motion to formally continue the public hearing at the previous meeting and I believe the PC merely decided to continue the discussion or continue the deliberations with no mention of the hearing itself being continued. Since this week wasn't noticed in the paper as a public hearing and no motion to continue the prior public hearing beyond the March 9th meeting occurred so far as I can recall, and this is the first meeting when the public actually has the proposed draft ordinance to consider, albeit with some drafting issues like an incorrect title and inapplicable CEQA exemption mentioned in the recitals, I object to this meeting being described as a public hearing or allegedly satisfying the procedural requirements of Government Code section 65854.
In fact, I think it can only be considered an Planning Commission discussion item about the draft ordinances with no possible action since the action would need to happen at a properlynoticed public hearing. "Properly-noticed" public hearings can happen by formally continuing the initial public hearing at a meeting (or series of meetings) where the first one had full notice but that doesn't appear to have been the process this time.
Please schedule the public hearing for a future Planning Commission meeting and be sure to provide the full notice for that meeting as was (prematurely) done for the February 23, 2022 Planning Commission meeting where there was proper notice but the hearing didn't actually include a draft ordinance that they were purportedly reviewing and making a recommendation about.
Regards,
--Jacob
---------- Forwarded message ---------
From: City of Fort Bragg, CA <[email protected]> Date: Mon, Mar 21, 2022, 8:50 AM
Subject: Planning Commission Hearing on Cannabis 3/23/2022 To: <[email protected]>
Planning Commission Hearing on Cannabis 3/23/2022
Post Date: 03/21/2022 8:30 AM
Planning Commission Discusses Cannabis
on March 23
This email was sent to [email protected] using govDelivery Communications Cloud on behalf of: City of Fort Bragg, CA · 416 North Franklin Street Fort Bragg, CA 95437 The Planning Commission's public hearing on cannabis regulations will continue on Wednesday night, March 23, 2022 at 6PM at Town Hall. To read the staff report and agenda materials, please click the following link and scroll to Item 6B: Planning Commission Agenda 3/23/2022.
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From: Jacob Patterson
To: cdd; Peters, Sarah
Cc: [email protected]
Subject: Fwd: New draft ordinance for cannabis updates
Date: Monday, March 21, 2022 10:06:06 AM
Sarah,
In case I don't have time to write a more formal public comment, please include this email chain as a public comment for the Planning Commission's consideration of Item 6B on their March 23rd agenda. My suggested revised changes to the draft ordinance are to:
1. Correct the title of the ordinance.
2. Revise the final recital concerning CEQA and include an accurate description of the CEQA process, which is not trying to rely on a now expired statutory exemption that is conditioned on site-specific environmental review due to future discretionary permits.
3. Correct the type in the exclusion zone replacing "Redwood Avenue" with "Franklin Street".
4. Consider limiting the exclusion zone to south of Bush Street to allow potential dispensaries on both sides of Franklin Street in the industrial zone.
5. Consider adding a rebuttable presumption that all cannabis retail proposed west of the centerline of Franklin Street is compatible with the existing and future land uses in the vicinity of the proposed project, even sensitive uses.
6. Consider separating the three commercial zones listed under accessory cannabis uses rather than combining the CBD with GC zoning district. I am not sure why there are more potentially-permitted accessory uses in HVC along Main Street than there would be for GC zoning along Franklin Street.
7. Consider a minor revision to the definitions, although this is the least important of my recommendations since it is just me believing that substantive provisions about which uses are permitted don't belong in a definition of a term and should only be in the substantive operative provisions of the ILUDC. The detailed description of which accessory uses are potentially permitted in which zoning districts is a great substantive tool but I don't think it belongs within the definition for this term in the Title 18, Article
10. The definition should just be the definition and the description of the particular accessory uses for different zoning districts belongs in section 18.42.057. I think the actual definition in section 18.100.020 should just read "Cannabis Accessory Use. A use that is customarily incidental related and clearly subordinate to the primary use on the same parcel and which does not alter the primary use, nor serve property other than the parcel where the primary use is located" although that is redundant from the general definition of accessory use without the additional detail about which accessory uses apply to which zoning district.
I think the first three changes are necessary and the rest are optional but recommended to strengthen the overall regulatory scheme and balance the competing policy interests that have been discussed during public meetings up to this point.
Regards,
--Jacob
---------- Forwarded message ---------
From: Jacob Patterson <[email protected]>
Date: Sun, Mar 20, 2022 at 11:55 AM
Subject: New draft ordinance for cannabis updates
To: <[email protected]>
Cc: Gurewitz, Heather <[email protected]>, O'Neal, Chantell <[email protected]>, McCormick, Sarah <[email protected]> City Staff & Marie,
I am looking through the agenda materials for Wednesday's meeting and there are still some drafting concerns in the draft ordinance that is included in the packet for the meeting. I will send in formal written and additional oral comments for the meeting so don't treat this as such, rather it is intended as me sharing a couple of big items that stuck out at me for your premeeting review. (I will only offer oral public comments if Jeremy offers a public comment opportunity, which he should, although I think there is a potential noticing issue based on the language of their motion last time and now this new ordinance only coming forward after the public comment period).
My three big concerns are:
1) The ordinance title is incorrect and talks about Chapter 9.20 not Title 18. 2) The final recital (aka "whereas") cites an inapplicable statutory exemption from further environmental review under CEQA because it expired last summer. That recital should be deleted or replaced with accurate CEQA language that is inl-line with what the City is doing or will be doing for this project.
3) The new language for the exclusion zone incorrectly references Redwood Avenue instead of Franklin Street. I think it should be revised to read "Located east of the centerline of Franklin Street, except if proposed for industrially-zoned property north of Bush Street." I added the north of Bush Street exclusion from the exclusion zone in case a cannabis business wants to operate a one-stop shop in the industrial property on the east side of N. Franklin, perhaps even using a micro business state license type and business model. I doubt anyone thinks that the occupants of the cemetery are a sensitive use next to which a cannabis retail operation shouldn't be located. The only residential zoning or uses that are next to commercially zoned property where a dispensary might be located are exclusively south of Bush Street. However, that might not be necessary since it looks like the proposed use table mechanisms to deal with vertically-integrated cannabis businesses in the industrial zones is to to treat potential retail in the industrial zones as accessory to the primary industrial uses (e.g., the primary use is the cultivation, processing, manufacturing, or distribution use and retail would be potentially permitted only as an accessory use rather than the use table entry, which is about cannabis retail being a primary use). That approach is arguably more consistent with the Inland General Plan, which has a policy that discourages storefront retail in the industrial zones (at least that's how I interpret it). My concern is that Section 18.42.057 probably applies to any sort of cannabis retail use, whether primary or accessory, and I don't think anyone is calling for an exclusion or buffer zone within the industrial zoning districts north of Bush Street so limiting that exclusion area east of the centerline of Franklin Street to only south of Bush Street makes sense.
I also want to suggest an additional provision for Section 18.42.057, subdivision 3. I suspect part of why some councilmembers wanted to switch cannabis retail from an MUP to permitted by right in their earlier discussions is because they are worried that any time a residential use is near a proposed dispensary that the neighbors might come in and convince the Planning Commission that the uses are incompatible and that particular use permit finding won't be made again (e.g., what happened for the former Floor Store location). I recommend pairing the thoughtful and much-appreciated compromise solution of the exclusion zone with an explicit rebuttable presumption that a cannabis retail use proposed west of the centerline of Franklin Street is presumed to be compatible with the nearby uses (but I would use the precise language of the required finding in the provision creating the presumption.) That strengthens this compromise solution because it creates a clear, bright-line rule excluding all dispensaries east of the Franklin Street but it also creates a rebuttable presumption that staff and the Planning Commission would use to help evaluate particular applications. If an applicant wants to be successful, they can have some assurance that, unless their project involves some really weird circumstances or proposed uses, there is a strong presumption that the cannabis retail is considered compatible with nearby uses when proposed west of Franklin Street, even sensitive uses like single-family residential homes, and that required finding that tripped up a particular controversial application would be easy to make. I think pairing a presumption of compatibility for areas west of Franklin with the explicit exclusion zone east of Franklin allows the City Council to keep the public notice, public hearings, and, most importantly, the ability to impose special conditions as part of the approval process, that result from the current MUP process and removes the concerns that led to some councilmembers to preliminarily direct that cannabis retail should be converted to a by-right use.
Finally, I want to suggest adding "potentially" immediately before "permissible" in Section
18.42.057, subdivision 4.a. to read "Accessory Uses. The following uses are potentially permissible as accessory uses to Cannabis Retail. More than one accessory use is permissible however the combined accessory uses shall not exceed the total square footage of the primary use." I like this provision but I think it is important to remember that desired accessory uses are not automatically permitted and that they are only conditionally permitted/permissible depending on the particular facts and circumstances of an application. The subtle distinction between conditionally permitted and permitted-by-right and varying interpretations of what that means is precisely what caused the conflicts for the prior MUP application reviews. By adding the word "potentially" to this provision, we highlight that difference and it should help avoid situations where staff, some of whom might be relatively inexperienced with planning, treat these accessory uses ase being permitted rather than only potentially permitted or conditionally permitted only when the required subjective findings have been made by the proper review authority.
I also think combining CBD and GC into the same category doesn't make any sense and isn't part of the prior direction from either the City Council or Planning Commission. GC direction was more in line with what we want to permit in HVC not the CBD so if any zoning districts are combined, it should be HVC and GC not CBD and GC. I would have each be their own category for three different subdivisions in this provision of the ordinance. On a related note, I would also flesh out "On-Site Distribution" to explicitly reference that that is not really a distribution land use but merely refers to internal distribution between the otherwise permitted uses on the site. (I know Heather said the City Attorney asked that this be included but I think she is either misinterpreting that advice or he is wrong and is apparently confused about the differences between state cannabis license types and local land uses.) That is already done via the Title 18, Article 10 definition but users (including applicants) don't always read crossreferenced definitions and it might help to list that aspect of the definition in the operative provisions, not just the definitions located elsewhere.
Thanks,
--Jacob
From: Jay Koski
To: Norvell, Bernie; Albin-Smith, Tess; Peters, Lindy; [email protected]; Rafanan, Marcia; Gurewitz, Heather; Lemos, June; Peters, Sarah; sarah mccormick; Naulty, John Subject: Cannabis dispensaries
Date: Friday, February 25, 2022 7:48:42 AM
Attachments: 28084.jpeg
28082.jpeg
So you the council really believe that these businesses are safe for the people of Fort Bragg?I think you need to give this another thought before putting these business within feet of the people of our town. You have all been defending how safe they are compared to other businesses since the beginning of all of this.I don't think so.
Jay Koski
From: Jacob Patterson
To: cdd; Gurewitz, Heather
Cc: O"Neal, Chantell; Smith, John; Spaur, David; sarah mccormick; [email protected] Subject: Comments on the Draft Initial Study & Negative declaration for the proposed ordinances revising commercial cannabis regulations
Date: Friday, March 18, 2022 12:19:30 PM
City of Fort Bragg Team,
Please accept these comments and objections to the draft Initial Study & Negative Declaration (IS/ND) prepared by the City and apparently then prematurely circulated for public review. I object to the process by which the City is attempting to manage the environmental review process for the City-initiated changes to its commercial cannabis regulations. The City issued a Notice of Availability (NOA) and circulated a draft IS/ND for public and responsible agency review purporting to analyze the project, which is the City's intended adoption of related ordinances updating the City's commercial cannabis regulations in Title 9 and Title 18 of the City's Municipal Code. (note that the NOA incorrectly refers to the CEQA document as both an IS/ND and an IS/MND.) However, this project has not been fully defined yet because there still aren't any proposed ordinances for anyone to review. There was a draft ordinance that was included in the agenda packet for the continued public hearing before the Planning Commission on March 9, 2022 purporting to be the draft ordinance for the portion of the project associated with updates to Title 18 but that was not actually the case, which was stated by the City's project consultant during that hearing. The actual proposed ordinance for the updates to Title 18 is yet to be made available for the public to review, although I believe the City indicated it would likely be included in the agenda materials for the special meeting of the Planning Commission scheduled for March 23, 2022.
Please note that the staff materials for the March 9, 2022 Planning Commission meeting included numerous issues and displayed serious problems concerning the CEQA review, which further undermines the credibility of the environmental analysis in the current draft IS/ND. Chief among these issues was staff's reference to a now expired statutory exemption from CEQA review that would have applied to this project had the orinances been adopted prior to July 1, 2021. That statutory exemption has expired by its explicit terms and a condition of relying on that exemption was that any local land use regulations needed to require future discretionary reviews and site-specific CEQA analysis for each project application. The future discretionary reviews condition of the now-expired statutory exemption is not an aspect that still applies to the CEQA review for the current project but which appears to be improperly incorporated into the proposed analysis in the draft IS/ND now being circulated for review and comment. That should be addressed and likely requires substantial and significant revisions to the CEQA document for this pending project.
The actual draft of the proposed ordinance is not yet available for public or responsible agency review. As such, it is impossible for any member of the public or any responsible agency to evaluate the adequacy of the draft IS/ND because the necessary information, the actual ordinance or ordinances, have not been prepared even though the official review period for the draft IS/ND is scheduled to come to a close today based on the NOA. What we have now, and what is purportedly analyzed in the draft IS/ND, are merely staff assumptions and interpretations about what the ordinances might contain but that is inadequate and substantively and procedurally defective. CEQA requires something more and I respectfully request that the City prepare a new IS/ND (or other appropriate CEQA document, which is likely to be a Mitigated Negative declaration or even and Environmental Impact Report) based on the actual proposed ordinances and make the ordinances and the CEQA document available at the same time for public and responsible agency review.
That said, even if the ordinances had been made available, if they reflected the prior majority direction of the City Council, the existing IS/ND currently circulating for public review is inadequate and defective as written, at least in my opinion. I would (and do) object to the draft IS/ND on that basis as well, which I have partially addressed in prior written and oral public comments for the Planning Commission public hearing meetings that have already occurred.
For example, the IS/ND provides a false and misleading description of the baseline conditions and of the scope of the changes in the (non-existent) proposed ordinances. These errors and omissions include but are not limited to a lack of maximum buildout analysis due to the new cultivation uses being added to the use tables in Title 18. Staff incorrectly asserts that because future discretionary reviews will include CEQA analysis for individual projects, that we do not need to analyze the impacts of the ordinances themselves. That is inconsistent with CEQA requirements and appears to be based on a misunderstanding between what is improper speculation about unknown future events and what level of current review is necessary for a change to the land use regulations. Further, staff asserts that the required cannabis business licenses are "discretionary" and would trigger CEQA review for those uses that are or may be proposed to be permitted by right under the new regulations. The cannabis business licenses do not appear to meet the criteria to be considered discretionary rather than ministerial based on the City's existing code or even based on the summary of proposed amendments that were presented in a working draft at the first meeting of the public hearing before the Planning Commission. There are no discretionary findings (or any findings at all) that are required in order to issue the cannabis business licenses. Just because the City can deny some cannabis business license applications if the applicant doesn't meet some pre-determined objective criteria does not make those licenses discretionary. On the contrary, they appear to be ministerial permits based on a review checklist. The City officials' determinations about whether or not the permit criteria are met are similar in nature to the issuance criteria involved in other ministerial permits like building permits, which are only issued if the application materials satisfy the applicable building code requirements.
The main (but not only) substantive issues that are lacking in the existing draft IS/ND appear to include the following: a lack of water supply analysis due to the new cannabis cultivation uses and transportation and greenhouse gas emissions analysis due to the new distribution activities that would be permitted by right. In my opinion, it is not improper speculation to evaluate the projected water use of newly-permitted commercial cannabis cultivation uses based on the addition of those uses to the existing use tables where they were not permitted before. The same sort of buildout analysis that applies to projects to rezone particular property apply to adding new uses to existing use tables. In my opinion, what is required and what is lacking in the current draft is taking the known area of each relevant zoning district where such uses are proposed to be permitted or conditionally permitted and calculating the projected impacts from now allowing those uses using a maximum buildout analysis of the projected water of these cultivation activities. Similarly, the new distribution uses that will be permitted for the cannabis retail uses including a delivery component need to be analyzed based on the existing areas zoned for each district where it is now proposed to be permitted by right rather than what is currently a discretionary review requiring a minor use permit. of course, without any actual proposed ordinances and with shifting majority direction concerning where such uses are going to be permitted and which level of future review will apply in a particular zoning district factoring in potential exclusion and.or buffer zones, we cannot effectively analyze anything. In that respect, I submit these comments and objections for the City team to consider not just the adequacy of the existing draft IS/ND but as they further develop the actual proposed ordinances and revise or re-write the appropriate CEQA documents and circulate it for public review and comment again once the proposed ordinances are actually ready and available to the public and responsible agencies.
Thank you for your consideration of these important issues, Jacob Patterson