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 cited: Section 26013, Business and Professions Code. Reference: Sections 26012, 26030 and 26031.5, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (November 2023) Page 212 of 224 §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.
(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 (e) If the citation is dismissed, any request for a hearing shall be deemed withdrawn.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 cited: 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.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (November 2023) Page 213 of 224 (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 cited: 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:
(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 cited: 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.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (November 2023) Page 214 of 224 (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 cited: 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. (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 cited: 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 Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (November 2023) Page 215 of 224 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, 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 cited: 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.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (November 2023) Page 216 of 224 (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. (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 cited: 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. (1) The licensee shall be entitled to a hearing on the petition within 20 days after issuance of the initial interim order.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (November 2023) Page 217 of 224 (2) Notice of the hearing shall be provided to the licensee by the Department within two days after issuance of the initial interim order.
(3) 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 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 cited: Section 26013, Business and Professions Code. Reference: Sections 125.3, 26012 and 26031, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (November 2023) Page 218 of 224 §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 July 2022,” 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 cited: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26031, Business and Professions Code.
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 of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (November 2023) Page 219 of 224 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 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.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (November 2023) Page 220 of 224 (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. (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 cited: 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.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (November 2023) Page 221 of 224 (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 2/22), 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 cited: Section 26013, Business and Professions Code. Reference: Sections 26011.5 and 26012, Business and Professions Code.
§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.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (November 2023) Page 222 of 224 (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 2/22), 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 cited: 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 cited: 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:
(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 cited: Section 26013, Business and Professions Code. Reference: Section 34019, Revenue and Taxation Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (November 2023) Page 223 of 224 §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.
(e) The Department's selection decision is final and not subject to appeal.
Authority cited: 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.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (November 2023) Page 224 of 224 (d) Any funds that are not used prior to the completion of the research project shall be forfeited.
Authority cited: 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 (5) Any changes to the information provided in the proposal, including, but not limited to, change in staff.
Authority cited: 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 cited: Section 26013, Business and Professions Code. Reference: Section 26160, Business and Professions Code; and Section 34019, Revenue and Taxation Code.