California Cannabis Microbusinesses

Licensing & Compliance for California Cannabis Microbusinesses, 2021 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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Proposition 65 Labor peace agreement regulations for medical and adult-use cannabis in California Department of Consumer Affairs’ Bureau of Cannabis Control local jurisdiction authorization entry into the legal, regulated market motor carrier permit 2021 fines regulations for medicinal and adult-use cannabis manufacturing cannabis products licensing scheme nonlaboratory quality control Percentage of ownership Category I Residual Solvents and Processing Chemicals Testing operating procedures premises diagram Manufacturing (non-volatile) Seller’s permit number 2021 problems medicinal and adult use cannabis goods transported together definition of owner cannabis cultivation licensing workshops hosted by the Bureau of Cannabis Control ingredient list Distributor Transport Only structure and formation documents Business and Professions Code section 26050.1 online licensing system laboratory quality assurance chain of custody Temporary License Application Information licensed premises cannabis industries medicinal and adult-use markets cannabis waste Extractions using CO2 requiring refrigeration Water Activity Testing of Solid or Semi-Solid Edibles Proposition 64: The Adult Use of Cannabis Act of 2016 limited to a maximum of 10 mg of THC per serving carbohydrates and fat per serving Heavy Metals Testing commercial cannabis manufacturing in California operating premises cannabis market licensed cannabis manufacturers Premises Information testing lab sanitary workplaces pre-made or purchased child-resistant outer package Standard Operating Procedures (SOPs) vape cartridges aggregate interest of 20% or more medicinal commercial cannabis activity Medicinal and Adult-Use Cannabis Regulation and Safety Act minimum standards for extraction processes unique ID/batch number Cultivation less than 10,000 commercial cannabis manufacturing activity hydrocarbon-based solvents 120 days persons with a financial interest in the cannabis business procedures for inventory control Completed Temporary License Application Form licensing and regulating commercial cannabis manufacturers 2021 new laws labels not be attractive cannabis adult-use products Category II Residual Solvents and Processing Chemicals Testing Medical Cannabis Regulation and Safety Act of 2015 limited to a maximum of 1,000 mg per package written procedures for inventory control manned motor vehicle Track and Trace Transition Period licensed cannabis distributors Edibles– Products Owner security diagram of the business’s layout informational panel local jurisdiction supply chain 2021 compliance Cannabinoids Testing small product packaging edibles packaging opaque Retailer (Type 10) Application Checklist CalCannabis Cultivation Licensing amount of sodium licenses for both medicinal and adult-use cannabis manufacturing at the same premises Temporary event up to 4 days product as a candy prohibited license review process potentially-hazardous foods good manufacturing practices Distributor transport payable to the state of California amount of THC content temporary license compliance with regulations sugar Non-Storefront Retailer (Type 9) medicinal and adult-use cannabis manufacturing designated structure Operating Procedures manufacturing practices transportation of cannabis goods inhalable cannabis manufacturing (Level 1 manufacturing, Type 6) The California Department of Public Health's edible products primary panel requirements transportation manufacturer's name delivery vehicle $3,000 of cannabis goods consumption of alcohol or tobacco extraction Type S share facility space three state cannabis-licensing authorities loan provided to a commercial cannabis business Individual Owner packaging onsite sale and consumption of cannabis goods local jurisdiction’s ordinances and regulations final form packaging and labeling requirements CDTFA seller’s permit government warning statement label contaminant free immature live plants and seeds being transported from a licensed nursery tamper-evident Incorporating THC/CBD concentrates exit packaging supplemental label security and cannabis waste disposal Premises diagram compliance with local jurisdiction licensed physical location (premises) no infusion of nicotine Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) Mycotoxins Testing Vehicle Requirements an officer or director of a cannabis business certified by a California-licensed engineer 100 mg of THC per package 2021 resolutions quality control Industrial Hemp Advisory Board volatile solvent A-licensees the commercial medicinal and adult-use (recreational) Bond in the amount of $5,000 secondary package some nutritional facts Arranging for laboratory testing Manufactured Cannabis Safety Branch (MCSB) Office of Environmental Health Hazard Assessment (OEHHA) commercial cannabis manufacturing California Department of Public Health child-resistant packaging licensing cannabis distributors managing member Homogeneity Testing of Edible Cannabis 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In addition, cakes, cookies, beverages and juices, tea and coffee, chocolates, gummies, gum, and mints Type 14 (Cannabis Event Organizer) Processing Raw material Type 3 (Cultivation; Outdoor; Medium) Pest Nonmanufactured cannabis product Specialty Mixed-Light Tier 2 Specialty Indoor Department adulteration Specialty Cottage Mixed-Light Tier 1 Track-and-trace systems Flowering Bureau Nursery Package Type 5B (Cultivation; Mixed-light; Large) Pathogen Quality infused butters and oils as concentrates Nonvolatile solvent THC limit of 10 milligrams per serving and 100 milligrams per package Manufacture UID Limited-access area Environmental pathogen Microorganisms Specialty Outdoor Type 3B (Cultivation; Mixed-light; Medium) Medium Indoor CBD Medium Mixed-Light Tier 2 Type 12 (Microbusiness) Indoor cultivation Canopy Type 2B (Cultivation; Mixed-light; Small) Medium Outdoor Specialty Cottage Outdoor Sanitize In-process material Extraction Watts per square foot Type N Infusions (optional packaging and labeling) Type 3A (Cultivation; Indoor; Medium) Type 1A (Cultivation; Specialty indoor; Small) Holding Allergen cross-contact Licensee Pre-roll M-license Edible cannabis product Theoretical yield Informational panel Net weight Commercial-grade, non-residential door lock Unique identifier Process Wet weight Lot Cannabis product Type 5A (Cultivation; Indoor; Large) Processor Adequate Type N – for infusions CBD from industrial hemp Type 13 (Distributor Transport Only) Specialty Cottage Indoor Harvest Batch Small Mixed-Light Tier 2 Serving Type 1C (Cultivation; Specialty cottage; Small) Primary panel Type 2 (Cultivation; Outdoor; Small) Preventive controls track and trace system Type 6 (Manufacturer 1) Extraction: Non-volatile Solvents, Mechanical Methods Verification Proposition 65 warning statement Batch Specialty Cottage Mixed-Light Tier 2 Quarantine alternate use of a manufacturing premises Type 5 (Cultivation; Outdoor; Large) Type S (coming soon, shared-use manufacturing facilities) Quality control personnel 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) Type 7 – for extraction using a volatile solvent (ex: butane, propane and hexane) DPH-17-010E Applicant Type 8 (Testing Laboratory) products similar to traditional food products prohibited Premises Type 4 (Cultivation; Nursery) Processing aid Small Outdoor Cultivation Outdoor cultivation Validation Product Identity package flower or pre-rolls Type 2A (Cultivation; Indoor; Small) Quality control operation Kief Mixed-light Tier 2 Type 7 (Manufacturer 2) Extraction: Volatile Solvents gross annual revenue for first year in operation under MAUCRSA Small Indoor list of cannabis manufacturers infused pre-rolls Mature plant Adult-use Market THC Ingredient Small Mixed-Light Tier 1 Topical cannabis product Contact surface Type 9 (Non-Storefront Retailer) Volatile solvent Immature plant Adulterated Commercial cannabis activity Actual yield Hazard Distribution Type 1 (Cultivation; Specialty outdoor; Small) Type 11 (Distributor) Component Specialty Mixed-Light Tier 1 Labeling Type P Packaging & Labeling Only Mixed-light cultivation Medium Mixed-Light Tier 1 Cultivation site Mixed-light Tier 1 Qualified individual Type 10 (Retailer) Monitor Type 1B (Cultivation; Specialty mixed-light; Small) Dried flower Personnel Infusion Type P – for packaging and labeling only Finished product Manufacturer licensee Universal symbol Allergen MCSB 90-day extension periods cannabis concentrates Request for Live Scan Track and trace system and more.


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