Bureau Releases California’s Proposed Emergency Regulations

The Bureau of Cannabis Control released its proposed and much-anticipated emergency regulations on medicinal and recreational cannabis that aim to govern America’s largest cannabis market. The new Medicinal and Adult-use Cannabis Regulation and Safety Act proposed regulations include various types of medicinal and adult-use licenses and their descriptions, as well as a transitional period that will last until July 1, 2018.

Under the California’s proposed emergency regulations, Temporary Licenses will allow businesses to stay open for a period of 120 days while Annual Licenses are pending, so long as the applicant has a valid license, permit and other local authorization. Applicants will have no restrictions on the number of Annual Licenses that they can hold, except those with a testing laboratory license with restrictions.

The Bureau will allow at least 10 days for each local jurisdiction to verify local authorization before a license will be granted. The Bureau will also verify that there are no conflicting ordinances and after 60 days, if there is no response, the Bureau will presume the applicant is in compliance and may issue a license.

Two license categories have been designated (businesses may have both):

A-Licenses will be granted for use in adult-use cannabis activity

M-Licenses will be granted for use in medicinal cannabis activity.

Four license types have also been designated:

Type 7 – Extraction involving volatile solvents.

Type 6 – Extraction involving non-volatile solvents.

Type N – Infusions.

Type P – Packaging  and labeling.

Priority licenses will be eligible to parties that are in good standing with their local jurisdiction before September 1, 2016. Ownership, compliance and premises requirements apply.

Below are the types of licenses that will be available for adult-use and medicinal businesses:

• Distributor License – For all transportation of cannabis and cannabis products and other activities, including wholesalers.
• Distributor Transport-Only License – For transportation of cannabis and cannabis products only.
• Retailer License – For dispensaries.
• Microbusiness License – For smaller cultivation, manufacturing, distribution and retail operations that meet the criteria.
• Testing Laboratory License – For testing laboratories.
• Provisional Testing Laboratory License – For testing centers that are awaiting ISO accreditation.
• Processor License – A new type of cultivation license added for trimmers, dryers, curing, grading and packaging.

A transitional period will happen from January 1, 2018, through July 1, 2018. For that time period, businesses can avoid the A and M-designation and other requirements. Be vigilant—because “peace officers” will be randomly sending decoys that are under the age of 21 to monitor businesses for adherence.

Applicants with more than 20 employees must enter into a Labor Peace Agreement or a notarized statement of intent to enter into a Labor Peace Agreement.

The required testing requirements will be phased in throughout 2018. Cannabis harvested after January 1, 2018, will be subject to current testing standards. Cannabis harvested after July 1, 2018, will be tested under more rigorous standards.

Adult-use edible products will be limited to 100mg of THC total and 10mg per serving, although medicinal products may exceed the 100mg limit, so edible makers have some reprieve.