California Cannabis Microbusinesses

Licensing & Compliance for California Cannabis Microbusinesses, 2019 Important Information & Updates


California Cannabis Microbusinesses


Frequently Asked Questions

What is a Cannabis Microbusiness?

A Cannabis Microbusiness is a business that engages in at least 3 of the following 4 activities:
  • Cultivation (area less than 10,000 square feet)
  • Manufacturing (level 1), Manufacturing (level 6)
  • Distribution
  • Retail

Can a Microbusiness act in part as a cannabis business or must it be whole?

A Microbusiness can act in part or whole as a cannabis business.

Are Microbusinesses required to identify their business organizational structure?

Yes, Microbusinesses are required to identify their business organizational structure.

Can large cultivation licensees obtain microbusiness licenses?

No, large cultivation licensees are prohibited from obtaining a microbusiness license. Though, a person can apply for and be issued more than one license for commercial adult-use activity.

Are microbusiness licensees required to implement any security measures?

Yes, microbusiness licensees are required to implement security measures reasonably designed to prevent unauthorized entrance into areas containing cannabis or cannabis products and theft of cannabis or cannabis products from the premises.

Can microbusinesses deliver cannabis goods?

Yes, cannabis goods deliveries can be made by a licensed microbusiness.

Can microbusinesses be subject to excessive concentration?

Yes, CA can limit microbusinesses subject to excessive concentration.


State Authority & Contact:

Bureau of Cannabis Control (CA Department of Consumer Affairs)
PO Box 419016, Rancho Cordova, CA 95741-9106
Phone: 1-833-768-5880
email: bcc@dca.ca.gov

Scope of Licenses:

  • Type 12 Microbusiness

A Cannabis Microbusiness is a business that engages in at least 3 of the following 4 activities:
  • Cultivation (area less than 10,000 square feet)
  • Manufacturing (level 1), Manufacturing (level 6)
  • Distribution
  • Retail

Requirements:

  • Evidence of legal right to occupy and use the proposed premises location.
  • Premises Diagram Form(s)
  • Business formation documents,including all documents filed with the CA Secretary of State (SOS). Foreign corporations must include a copy of the Certificate of Qualification from the SOS.
  • Evidence of premises compliance with local jurisdiction, if applicable.
  • Labor peace agreement or notarized statement indicating that you will enter into and abide by the terms of a labor peace agreement, if applicable.
  • Limited waiver of sovereign immunity, if applicable.
  • Evidence of exemption from, or compliance with, the California Environmental Quality Act.
  • Proof of commercial general liability insurance in the aggregate of no less than $2 million and no less than $1 million for each loss, if your license activities include distribution.
  • Financial Information Form
  • Proof of surety bond in the amount of $5,000, payable to the State of California.
  • Transportation procedures
  • Inventory procedures
  • Non-Laboratory Quality Control procedures
  • Security procedures
  • Evidence of compliance with the Compassionate Use Act of 1996 and its implementing laws before September 1, 2016, if applicable.

Licensing Fees:

  • $5,000: Revenue Up to $500,000
  • $15,000: Revenue between $.5 million to $1.5 million
  • $42,000: Revenue between $1.5 million to $4.5 million
  • $120,000: Revenue greater than $4.5 million

Forms:


Resources:








California Universal Symbol for Cannabis


California Universal Symbol for Cannabis

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This site focuses or refers to information and services regarding transportation and security Transition Period evidence of the legal right to occupy the premises Licensee Information separate applications payable to the state of California re-sealable 2019 proposed changes commercial cannabis products LICENSE APPLICATION REQUIREMENTS operating premises Category I Residual Pesticides Testing inventory and quality control infusion packaging and labeling requirements for pre-rolls an officer or director of a cannabis business Physical address primary panel requirements manufacture cannabis products manned motor vehicle public Licensee Lookup Tool Foreign Material Testing Local Authorization Labor peace agreement shaped like a human, animal, insect, or fruit packaging security allergen information packaging and labeling Category II Residual Solvents and Processing Chemicals Testing Carbon Dioxide (CO2) Retailer (Type 10) Microbial Impurities Testing (Escherichia coli and Salmonella spp.) protocol premises diagram exception for testing laboratories track and trace system 120 days 2019 new laws commercial cannabis activity certified by a California-licensed engineer online licensing system temporary license Premises Information investment into a commercial cannabis business CALIFORNIA BUREAU OF CANNABIS CONTROL Cannabinoids Testing Track and Trace license review process product formulation period of 120 days the commercial medicinal and adult-use (recreational) persons with a financial interest in the cannabis business Temporary Cannabis Event extracts valid waiver secondary package basic nutritional information highly-concentrated oils or waxes licensing cannabis distributors dried flower must enter certain events tamper-evident cultivation (on an area less than 10,000 square feet) retailers Licensees transportation of cannabis goods A-license and an M-license for the same commercial cannabis activity Premises diagram California Department of Public Health (CDPH) chain of custody Seller’s permit number unique ID/batch number Heavy Metals Testing licensed cannabis cultivators vape cartridges Transport vehicles alarm system cannabis cartoons comply with all packaging and labeling requirements shares of stock that are less than 5% of the total shares in a publicly traded company state cannabis licensing 2019 regulations managing member government warning statement label 2019 resolutions licensing and regulating commercial cannabis manufacturers no added caffeine Bond in the amount of $5,000 Vehicle Requirements onsite sale and consumption of cannabis goods cannabis products in container or wrapper for sale 2019 problems CDTFA seller’s permit ingredient list labeling Extractions using CO2 regulations for medical and adult-use cannabis in California M-licensees Bond and Insurance Information waste disposal Type S share facility space MCSB 600 foot radius of a school compliance with regulations commercial cannabis manufacturing The Manufactured Cannabis Safety Branch (MCSB) three state cannabis-licensing authorities cannabis waste secondary packaging designated structure CDPH-9041 cannabis training 2,000 mg of THC per package for the medicinal-use market product guidelines volatile solvent cannabis adult-use products licensed premises MCSB’s temporary license application Department of Public Health’s Manufactured Cannabis Safety Branch transport cannabis goods to retailer amount of THC content The California Department of Public Health's meat and seafood, and other products nonlaboratory quality control 2019 recent news manufacturing California Public Records Act regulatory framework inventory BUREAU OF CANNABIS CONTROL medicinal and adult use cannabis goods transported together written procedures for inventory control Office of Environmental Health Hazard Assessment (OEHHA) child-resistant outer package medicinal and adult-use or both markets 2019 compliance Form # CDPH-9041 manufacturing activities Category I Residual Solvents and Processing Chemicals Testing hydrocarbon-based solvents consumption of alcohol or tobacco contaminants opaque exit package evidence of rehabilitation operating procedures amount of THC/CBD per serving and per package 2019 revisions member manager quality control medicinal and adult-use cannabis manufacturing Cultivation less than 10,000 disclosure of all criminal convictions public health and safety onsite consumption of cannabis goods Operating Procedures Mycotoxins Testing Percentage of ownership The Bureau of Cannabis Control (BCC) Temporary License Application security and cannabis waste disposal local jurisdiction authorization three cannabis licensing authorities no infusion of nicotine Temporary License Application Information MANUFACTURED CANNABIS SAFETY BRANCH regulations for medicinal and adult-use cannabis secured area licenses for both medicinal and adult-use cannabis manufacturing at the same premises limited to a maximum of 10 mg of THC per serving medicinal and adult-use markets licensing cannabis third-party testing laboratories conducting quality assurance review commercial kitchens CO2 and ethanol extractions periods of 90 days extensions microbusinesses THC levels structure and formation documents definition of owner alcoholic beverages Moisture Content Testing sales of cannabis goods Financial information Live Scans for each owner CDPH-issued universal symbol Butane/Hexane/Propane testing laboratories destruction of cannabis goods required limits Financial Interest cannabis plants loop system local jurisdiction’s ordinances and regulations California Department of Public Health workshops hosted by the Bureau of Cannabis Control Department of Consumer Affairs’ Bureau of Cannabis Control good manufacturing practices ANTICIPATED ANNUAL (NONTEMPORARY) LICENSE APPLICATION REQUIREMENTS immature live plants and seeds being transported from a licensed nursery commercial cannabis manufacturers surety bond local jurisdiction product as a candy prohibited final form Ethanol 600-foot radius of a school child-resistant packaging recordkeeping topicals equity interest in a commercial cannabis business A-license and an M-license sanitary workplaces local jurisdiction’s requirements supply chain requiring refrigeration packaging and labeling requirements storage of cannabis goods Local Jurisdictions motor carrier permit shipping manifest health impacts of cannabis access to the area(s) Category II Residual Pesticides Testing licensing cannabis retailers Local Authorization Attachment 2019 fines licensed physical location (premises) Manufactured Cannabis Safety Branch (MCSB) identity of the product Conducting quality assurance review of cannabis goods cannabis sales and/or consumption amount of sodium cannabis industries entry into the legal, regulated market Water Activity Testing of Solid or Semi-Solid Edibles Microbial Impurities Testing (A. fumigatus, A. flavus, A. niger, A. terreus) testing of cannabis goods Non-Storefront Retailer (Type 9) health claims Terpenoids Testing Industrial Hemp Advisory Board tobacco products waste management laws Standard Operating Procedures (SOPs) persons 21 years of age or older carbohydrates and fat per serving Department of Food and Agriculture’s CalCannabis Cultivation Licensing division capsules labels not be attractive ISO/IEC 17025 accreditation contaminant free licensed cannabis manufacturers diagram of the business’s layout Local Issuing Authority Premises Diagram disposal cannabis market Manufacturing (non-volatile) scaled to the gross annual revenue of the licensed premises pre-made or purchased medicinal and adult-use commercial cannabis activity manufacturer's name annual license application laboratory quality assurance Fingerprints mandated warning statements concentrate paper inserted into the packaging manufacturing (Level 1 manufacturing, Type 6) Owner Retailer (nonstorefront) compliance with local jurisdiction extraction 2019 important information Proposition 65 Edibles– Products stickers Proposition 64: The Adult Use of Cannabis Act of 2016 transportation Microbusiness emergency regulations remove THC/CBD sugar manufacturing practices 100 mg of THC per package Medicinal and Adult-Use Cannabis Regulation and Safety Act transporting cannabis goods adult-use commercial cannabis activity M-license commercial cannabis manufacturing in California Criminal History licensing cannabis microbusinesses at least 99% purity at least 20% ownership interest finished product supplemental label sampling standards Business Information activity for a period of 120 days Poison Prevention Packaging Act of 1970 (PPPA) hang tag or a peel-back label Distributor Transport Only aggregate interest of 20% or more Water/Food-grade Dry Ice edibles packaging opaque highly-concentrated THC/CBD such as oil, wax and resin Completed Temporary License Application Form tinctures limited to a maximum of 1,000 mg per package A-license Personnel Requirements Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) Business and Professions Code section 26050.1 2019 updates Manufactured Cannabis Safety Branch loan provided to a commercial cannabis business inhalable cannabis licensed cannabis distributors testing methods Homogeneity Testing of Edible Cannabis Products edible products manufacturers who package for other producers disposal and destruction methods testing lab conditional license Licensee Lookup Tool 2019 laws purchasing cannabis products on tribal lands convicted of a substantially related crime Cannabis Manufacturing minimum standards for extraction processes financial interest holder Arranging for laboratory testing list of artificial food colorings sanitary and hazard-free environment supply chains for medicinal and adult-use cannabis products cannabis event organizer license property for the commercial cannabis activity Identifying information Distributor transport commercial cannabis manufacturing activity Temporary event up to 4 days CalCannabis Cultivation Licensing cannabis cultivation licensing Mechanical potentially-hazardous foods small product packaging Food-grade Butter/Oil medicinal commercial cannabis activity Application Checklist Individual Owner 2019 issues ownership premises is not within a Government distributors licensing scheme no infusion of alcohol some nutritional facts Incorporating THC/CBD concentrates Manufactured Cannabis Licensing System (MCLS) informational panel A-licensees procedures for inventory control Business Organizational manufacturing cannabis products Medical Cannabis Regulation and Safety Act of 2015 shared-use manufacturing facilities exit packaging Proposed Section 40133 cultivation delivery vehicle $3,000 of cannabis goods and more.

In addition, Edible cannabis product Type P – for packaging and labeling only products similar to traditional food products prohibited Canopy Pest Manufacturer licensee Type 6 (Manufacturer 1) Extraction: Non-volatile Solvents, Mechanical Methods Cultivation site Verification Type 5A (Cultivation; Indoor; Large) Medium Indoor Mixed-light cultivation UID Type 1B (Cultivation; Specialty mixed-light; Small) Type P Packaging & Labeling Only Commercial-grade, non-residential door lock Allergen cross-contact THC limit of 10 milligrams per serving and 100 milligrams per package THC Nonmanufactured cannabis product Component Nursery Microorganisms cannabis concentrates Medium Mixed-Light Tier 2 Type S (coming soon, shared-use manufacturing facilities) Adult-use Market Adequate Processing aid Cannabis product Type 3B (Cultivation; Mixed-light; Medium) Proposition 65 warning statement Type 1C (Cultivation; Specialty cottage; Small) Limited-access area Serving Specialty Mixed-Light Tier 2 Request for Live Scan Mature plant Small Indoor Harvest Batch Batch Specialty Outdoor Type 8 (Testing Laboratory) Primary panel Immature plant Adulterated Type 2B (Cultivation; Mixed-light; Small) Pre-roll Topical cannabis product alternate use of a manufacturing premises MCSB 90-day extension periods Lot Department Type N – for infusions Monitor Type 9 (Non-Storefront Retailer) Volatile solvent Qualified individual Processing Specialty Cottage Mixed-Light Tier 1 Specialty Cottage Outdoor Small Outdoor Universal symbol Processor Type 3A (Cultivation; Indoor; Medium) list of cannabis manufacturers Type 1A (Cultivation; Specialty indoor; Small) adulteration Quality control operation Dried flower Raw material Infusion Outdoor cultivation Environmental pathogen M-license Type 3 (Cultivation; Outdoor; Medium) Quarantine Theoretical yield Type N Infusions (optional packaging and labeling) package flower or pre-rolls Track-and-trace systems CBD Type 6 – for extraction using a mechanical method or non-volatile solvent (ex: CO2, ethanol, water, or food-grade dry ice, cooking oils or butter) Licensee track and trace system Net weight Type 5B (Cultivation; Mixed-light; Large) Personnel Medium Outdoor Type 7 (Manufacturer 2) Extraction: Volatile Solvents Bureau Sanitize In-process material Commercial cannabis activity Small Mixed-Light Tier 1 Watts per square foot Indoor cultivation Quality control personnel Specialty Mixed-Light Tier 1 Specialty Indoor Applicant Type 4 (Cultivation; Nursery) Type 11 (Distributor) Preventive controls Quality Type 10 (Retailer) Kief Mixed-light Tier 1 Type 2 (Cultivation; Outdoor; Small) Product Identity gross annual revenue for first year in operation under MAUCRSA Extraction Labeling Nonvolatile solvent Unique identifier Small Mixed-Light Tier 2 Ingredient Actual yield Holding Specialty Cottage Indoor Premises Validation Type 1 (Cultivation; Specialty outdoor; Small) Track and trace system Finished product Contact surface DPH-17-010E Process Type 2A (Cultivation; Indoor; Small) Distribution Cultivation Type 13 (Distributor Transport Only) Wet weight CBD from industrial hemp Type 12 (Microbusiness) Informational panel Pathogen infused pre-rolls Flowering Type 14 (Cannabis Event Organizer) Medium Mixed-Light Tier 1 Mixed-light Tier 2 Package Hazard Type 7 – for extraction using a volatile solvent (ex: butane, propane and hexane) infused butters and oils as concentrates Specialty Cottage Mixed-Light Tier 2 Manufacture Allergen Type 5 (Cultivation; Outdoor; Large) cakes, cookies, beverages and juices, tea and coffee, chocolates, gummies, gum, and mints and more.


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