Changes in State Regulations

Changes in State Regulations

The beginning of 2019 marked many changes in the California cannabis landscape. Below are some of the major changes that have taken place.

Acceptance of Permanent Regulations

On January 16th, 2019, California approved permanent regulations for all three of the state licensing authorities: Bureau of Cannabis Control (BCC), the California Department of Public Health (CDPH), and the California Department of Food and Agriculture (CDFA). This marks the end of over 2 years of rule making and public comment. While many of the regulations are similar to the previously adopted emergency rules, there are changes, additions and subtractions i.e. labeling requirements, limits on the value of cannabis in a delivery vehicle, and ownership disclosures to name a few. Give Scot Candell & Associates a call to make sure you are still in compliance.

The End to Temporary Licenses

As of December 31st, 2018, the three administrative bodies governing cannabis licenses in California lost their authority to issue temporary licenses. Even if you submitted your temporary application before December 31st you cannot and will not be approved, unless you have already been issued the license.

For those who previously obtained a temporary license, if applicants submitted an annual application and paid the fees before January 1st, 2019, they were granted extensions on their previously issued temporary licenses.

In 2019, all cannabis operators must eventually acquire an annual cannabis license to continue business. Here are some items you will need for an annual license application:

  • Commercial Cannabis Licensee Bond;
  • Site Plan and/or Premises Diagram;
  • Financial Information;
  • Standard Operating Procedures – from intake and storage to inventory and waste management;
  • Security Measures – including security camera placement; and
  • Business Formation Documents.

Make sure you don’t have to shut your doors when your temporary license expires and call Scot Candell & Associates to get started on your annual license application right away; the expiration date may come faster than you anticipate.

The End of Collectives

It is no longer viable to operate your cannabis business under the collective model. As of January 1st, 2019, unless you only service a few patients, you can no longer operate solely under the auspice of a non-profit collective or cooperative – you must obtain a state license to continue business.

Prior to MAURCSA, the collective and cooperative model ruled the California legal cannabis market. The Compassionate Use Act of 1996 allowed medical marijuana patients and primary caregivers to “associate within the State of California in order collectively or cooperatively to cultivate marijuana for medical purposes,” (Health & Safety Code§ 11362.775). While you may still operate as a non-profit, your business will also need a state license to continue. To get started transitioning from a non-profit, begin your annual license or make sure you are compliant with state regulations give Scot Candell & Associates a call.

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