§15001. Provisional Licenses.
(a) A provisional licensee shall comply with all laws applicable to a licensee holding an annual license of the same type.
(b) A provisional license does not create a vested right in the holder to renewal of the provisional license or issuance of an annual license.
(c) A provisional license shall no longer be valid upon issuance of an annual license, denial of an annual license, abandonment of an application for licensure, withdrawal of an application for licensure, or surrender of the provisional license.
(d) A provisional licensee must actively and diligently pursue requirements for an annual license to continue to hold a provisional license, which includes meeting all the following requirements:
- Paying the license fee within 60 calendar days of the date the Department sends a notification that the license fee is due.
- Providing all information requested by the Department or otherwise elaborating upon information previously provided to the Department, or providing a statement demonstrating that the information cannot be provided due to circumstances beyond the provisional licensee’s control. The information or statement shall be provided by the response date specified by the Department, or within 30 calendar days of the date the Department sends the information request to the provisional licensee if the Department does not specify a response date.
(e) Refusal by the Department to issue or renew a provisional license pursuant to section 15001.1 or section 15001.2 shall not entitle the applicant to a hearing or an appeal of the decision. Chapter 2 (commencing with section 480) of division 1.5, chapter 4 (commencing with section 26040), and sections 26031 and 26058 of the Business and Professions Code shall not apply to licenses issued pursuant to this section.
(f) No provisional license issued by the Department shall be effective after January 1, 2026.
Authority: Section 26013, Business and Professions Code.
Reference: Section 26050.2, Business and Professions Code.
§15001.1. Issuance of Provisional License.
(a) Until June 30, 2022, the Department may, in its sole discretion, issue a provisional license to a commercial cannabis business if:
- The applicant submits a complete application, in accordance with section 15002, and the required application fee to the Department on or before March 31, 2022.
- For an application for a license that includes cultivation activities, the applicant provides any of the following documents:
- A final streambed alteration agreement;
- A draft streambed alteration agreement provided by the Department of Fish and Wildlife and signed and returned to the Department of Fish and Wildlife;
- Written verification by the Department of Fish and Wildlife that a streambed alteration agreement is not needed; or
- Written verification by the Department of Fish and Wildlife that the applicant submitted a notification described in section 1602 of the Fish and Game Code, submitted payment of applicable fees pursuant to section 1609 of the Fish and Game Code, and is responsive to the Department of Fish and Wildlife as prescribed in section 26050.2 of the Business and Professions Code.
- Issuance of the license would not cause the commercial cannabis business to hold multiple cultivation licenses on contiguous premises to exceed one acre of total canopy for outdoor cultivation, or 22,000 square feet for mixed-light or indoor cultivation, if the application is received on or after January 1, 2022. For purposes of this subsection, premises will be considered contiguous if they are connected, touching, or adjoining.
(b) After June 30, 2022, and until September 30, 2022, the Department may, in its sole discretion, issue a provisional license for cultivation to a commercial cannabis business if:
- The applicant submits a complete application, in accordance with section 15002, and the required application fee to the Department on or before June 30, 2022.
- The commercial cannabis business is not applying for a cultivation license for a premises that exceeds 20,000 square feet of total canopy for outdoor cultivation.
- The commercial cannabis business provides any of the following documents:
- A final streambed alteration agreement;
- A draft streambed alteration agreement provided by the Department of Fish and Wildlife and signed and returned to the Department of Fish and Wildlife;
- Written verification by the Department of Fish and Wildlife that a streambed alteration agreement is not needed; or
- Written verification by the Department of Fish and Wildlife that the applicant has submitted a notification described in section 1602 of the Fish and Game Code, submitted payment of applicable fees pursuant to section 1609 of the Fish and Game Code, and is responsive to the Department of Fish and Wildlife as prescribed in section 26050.2 of the Business and Professions Code.
- Issuance of the license would not cause the commercial cannabis business to hold multiple cultivation licenses on contiguous premises to exceed one acre of total canopy for outdoor cultivation, or 22,000 square feet for mixed-light or indoor cultivation, if the application is received on or after January 1, 2022. For the purposes of this subsection, premises will be considered contiguous if they are connected, touching, or adjoining.
(c) After June 30, 2022, and until June 30, 2023, the Department may, in its sole discretion, issue a provisional license to a local equity license applicant, as defined in section 26240(c) of the Business and Professions Code, if:
- The applicant submits a complete application, in accordance with section 15002, and the required application fee to the Department on or before March 31, 2023.
- For an application for a license that includes cultivation activities, the following conditions are met:
- The local equity license applicant provides any of the following documents:
- A final streambed alteration agreement;
- A draft streambed alteration agreement provided by the Department of Fish and Wildlife and signed and returned to the Department of Fish and Wildlife;
- Written verification by the Department of Fish and Wildlife that a streambed alteration agreement is not needed; or
- Written verification by the Department of Fish and Wildlife that the applicant has submitted a notification described in section 1602 of the Fish and Game Code, submitted payment of applicable fees pursuant to section 1609 of the Fish and Game Code, and is responsive to the Department of Fish and Wildlife as prescribed in section 26050.2 of the Business and Professions Code.
- The local equity applicant is not applying for a cultivation license for a premises that exceeds one acre of total canopy for outdoor cultivation, or 22,000 square feet for mixed- light or indoor cultivation.
- Issuance of the license would not cause the local equity applicant to hold multiple cultivation licenses on contiguous premises to exceed one acre of total canopy for outdoor cultivation, or 22,000 square feet for mixed-light or indoor cultivation. For the purposes of this subsection, premises will be considered contiguous if they are connected, touching, or adjoining.
- The local equity license applicant provides any of the following documents:
Authority: Section 26013, Business and Professions Code.
Reference: Section 26050.2, Business and Professions Code.
§15001.2. Renewal of Provisional License.
(a) To timely renew a provisional license, the provisional licensee shall comply with the requirements of section 15020.
(b) For provisional license renewals from July 1, 2022, through June 30, 2023, in addition to the requirements of section 15020, a provisional licensee must also provide to the Department:
- Evidence that one of the following California Environmental Quality Act (CEQA) (Division 13 (commencing with section 21000) of the Public Resources Code) requirements has been met:
- Documentation, such as a letter, report, notice or other type of written communication from the local jurisdiction, demonstrating that the local jurisdiction is in the process of preparing a site-specific initial study, addendum, or checklist pursuant to title 14, California Code of Regulations, section 15063, 15164, 15168, or 15183 to demonstrate whether it is consistent with a previously circulated and adopted negative declaration, mitigated negative declaration, or environmental impact report;
- Documentation, such as a letter, report, notice or other type of written communication from the local jurisdiction, demonstrating that the local jurisdiction has made substantial progress during the previous 12-month licensure term toward completing project specific environmental review by drafting, preparing, or circulating for public review an environmental document pursuant to CEQA;
- Documentation requested by the Department of the provisional licensee that demonstrates the furtherance of environmental review during the previous 12-month licensure term;
- Other information requested by the Department from the provisional licensee that demonstrates evidence of substantial progress toward compliance with CEQA during the previous 12-month licensure term; or
- Documentation that demonstrates compliance with CEQA is complete.
- For cultivation licenses, a provisional licensee must also provide one of the following forms of documentation demonstrating progress with compliance with chapter 6 (commencing with section 1600) of division 2 of the Fish and Game Code:
- A final streambed alteration agreement issued by the Department of Fish and Wildlife;
- A draft streambed alteration agreement provided by the Department of Fish and Wildlife and signed and returned to the Department of Fish and Wildlife by the provisional licensee;
- Written verification by the Department of Fish and Wildlife that the provisional licensee has submitted a complete notification described in section 1602 of the Fish and Game Code; or
- Written verification by the Department of Fish and Wildlife that a streambed alteration agreement is not needed.
(c) For provisional license renewals on or after July 1, 2023, in addition to the information required in section 15020, a provisional licensee must also provide to the Department:
- Documentation, such as a full or partial copy of the administrative record, demonstrating that one of the following CEQA requirements has been met:
- The local jurisdiction has prepared and circulated for public review a negative declaration or a mitigated negative declaration;
- The local jurisdiction has determined that an environmental impact report is required pursuant to section 21157 of the Public Resources Code and has either made substantial progress in preparing that environmental impact report or has a contract or contracts with consultants in place for the preparation of that environmental impact report;
- The local jurisdiction has certified that it has conducted a reasonably comprehensive site-specific review and has reviewed, prepared, and deemed complete an initial study, addendum, or checklist pursuant to title 14, California Code of Regulations, section 15063, 15164, 15168, or 15183 demonstrating consistency with a previously circulated and adopted negative declaration, mitigated negative declaration, or environmental impact report, in preparation for approval of an annual license; or
- The local jurisdiction has reviewed, prepared, and deemed complete a notice of exemption pursuant to section 21108 or 21152 of the Public Resources Code, except for ministerial projects not subject to the California Environmental Quality Act pursuant to section 21080(b)(1) of the Public Resources Code.
- Documentation submitted pursuant to subsection (c)(1) may include, but is not limited to:
- Any environmental documentation, including, but not limited to, an exemption, initial study, negative declaration, mitigated negative declaration, and/or environmental impact report;
- Any staff reports and related documents prepared by the local jurisdiction;
- Any written transcript or minutes of the proceedings of the local jurisdiction;
- Any notice(s) issued by the local jurisdiction to comply with CEQA and the CEQA Guidelines;
- Any proposed decisions or findings considered by the local jurisdiction by its staff or the applicant; and
- Any documentation of the local jurisdiction’s final decision.
- For cultivation licensees, one of the following forms of documentation demonstrating progress with compliance with chapter 6 (commencing with section 1600) of division 2 of the Fish and Game Code:
- final streambed alteration agreement issued by the Department of Fish and Wildlife;
- A draft streambed alteration agreement provided by the Department of Fish and Wildlife and signed and returned to the Department of Fish and Wildlife by the provisional licensee; or
- Written verification from the Department of Fish and Wildlife that a streambed alteration agreement is not needed.
(d) The Department will not renew a provisional license authorizing cultivation if:
Authority: Section 26013, Business and Professions Code.
Reference: Section 26050.2, Business and Professions Code.
§15001.3. Notice of Provisional License Review.
(a) When the Department is considering the suspension, revocation, or denial of renewal of a provisional license pursuant to Business and Professions Code section 26050.2, the Department shall issue a Notice of Provisional License Review to a provisional licensee for failure to comply with the Act or its implementing regulations.
(b) The Notice of Provisional License Review shall be in writing and state the following:
- The nature and facts of each violation, including a reference to the statutory and/or regulatory section(s) violated;
- The manner in which the provisional licensee must correct the violation(s) to achieve compliance;
- That the Department is considering suspending, revoking, or denying the renewal of the provisional license.
- That the provisional licensee may provide the Department with information related to the observed violation(s) and potential license action for the Department’s consideration during its provisional license review. The information may include statements, including a statement that the Department should not take the action under consideration, and any relevant documentation, including evidence that the violation(s) did not occur, of correction of the violation(s), or of mitigation. The provisional licensee may also request an informal meeting with the Department to discuss the matter and may be accompanied by an attorney or other representative.
- The Department shall serve the Notice of Provisional License Review by mail or electronic mail to the provisional licensee’s designated responsible party, or in person to the licensee or an employee or agent of the provisional licensee.
Authority: Section 26013, Business and Professions Code.
Reference: Section 26050.2, Business and Professions Code.
§15001.4. Immediate Suspension of Provisional License.
- The Department may immediately suspend any provisional license, or immediately
impose licensing restrictions or other conditions upon any provisional licensee, if necessary to protect public health, safety, or welfare.
- An order issued pursuant to subsection (a) shall be in writing and describe the following:
- The nature and facts of each violation, including a reference to the statutory and/or regulatory section(s) violated; and
- Whether the provisional license is suspended or the provisional licensee may continue to operate subject to restrictions or other conditions.
- Following the issuance of an order pursuant to subsection (a), the Department shall serve the provisional licensee with a Notice of Provisional License Review pursuant to section 15001.3.
Authority: Section 26013, Business and Professions Code.
Reference: Section 26050.2, Business and Professions Code.
§15002. Annual License Application Requirements.
- Applications may be completed and submitted online at www.cannabis.ca.gov.
- Applicants who submit their applications online shall first register for a user account if required by the licensing system. To register for a user account, the applicant shall do all of the following as requested by the licensing system:
- Create a username, password, and security question and answer;
- Provide an email address; and
- Provide the owner’s first and last name, primary phone number, Social Security number or individual taxpayer identification number, date of birth, and mailing address.
- An application must be completed by an owner as defined by section 15003. An application for an annual cannabis license includes the following:
- The legal first and last name of the applicant and the legal business name of the commercial cannabis business.
- Every business trade name, fictitious business name, and doing business as (“DBA”) under which the commercial cannabis business will operate.
- The commercial cannabis license for which the applicant is applying, and whether the applicant is requesting that the license be designated as medicinal, adult-use, or both, if applicable.
- Payment of an application fee pursuant to section 15014.
- The physical address of the premises or the assessor parcel number. If the Department is unable to confirm that the address provided is valid, then the applicant shall provide a document that confirms the physical address or location of the premises. Such a document may include a utility bill, printed information from the county assessor, deed, or title.
- The mailing address for the commercial cannabis business, if different from the premises address.
- The telephone number for the commercial cannabis business.
- The website address of the commercial cannabis business, if any.
- The number under which the commercial cannabis business files federal taxes, such as a federal employer identification number, federal taxpayer identification number, individual taxpayer identification number, Social Security number, or national identification number.
- Contact information for the owner of the commercial cannabis business who will serve as the designated primary contact person or designated responsible party for the business, including the name, title, phone number, and email address of the individual.
- The full legal name, mailing address, primary contact phone number, email address, and preferred method of written communication (e.g., standard mail or email) of each individual or entity serving as agent for service of process for the commercial cannabis business, if any.
- A description of the business organizational structure of the commercial cannabis business, such as partnership, joint venture, limited liability company, sole proprietorship, trust, or corporation.
- Upon request, business formation documents that are not available online through the California Secretary of State, which may include, but are not limited to operating agreements, bylaws, and other documents that establish ownership or control over the commercial cannabis business. If the commercial cannabis business is held in trust, the applicant shall provide a copy of the certificate of trust establishing trustee authority.
- A commercial cannabis business that is a foreign corporation or foreign limited liability company shall include in its application a certificate of qualification, certificate of registration, or certificate of status issued by the California Secretary of State.
- A complete list of every financial interest holder of the commercial cannabis business as defined in section 15004, who is not an owner as defined in section 15003. The list of financial interest holders shall include:
- For financial interest holders that are individuals, the first and last name of the individual, a contact phone number and email address, and the type and number of the individual’s government-issued identification, such as a driver’s license.
- For financial interest holders that are entities, the legal business name, the name and phone number and email address of the entity’s primary contact, and federal taxpayer identification number of the entity.
- A complete list of every owner of the commercial cannabis business, as defined in section 15003. Each individual named on this list shall submit the following information:
- The full name of the owner.
- The owner’s title within the commercial cannabis business.
- The owner’s date of birth and place of birth.
- The owner’s Social Security number or individual taxpayer identification number.
- The owner’s mailing address.
- The owner’s telephone number. This may include a number for the owner’s home, business, or mobile telephone.
- The owner’s email address.
- The owner’s current employer.
- The percentage of the ownership interest held in the commercial cannabis business by the owner.
- The number of the owner’s government-issued identification. Acceptable forms of identification are a document issued by a federal, state, county, or municipal government that includes the name, date of birth, gender, and photo of the person, such as a driver’s license or passport.
- A copy of the owner’s completed application for electronic fingerprint images submitted to the Department of Justice.
- A statement of rehabilitation may be submitted by the owner for any conviction, but is not required. The statement of rehabilitation is to be written by the owner and may contain evidence that the owner would like the Department to consider that demonstrates the owner’s fitness for licensure. Supporting evidence may be attached to the statement of rehabilitation and may include, but is not limited to, a certificate of rehabilitation under Penal Code section 4852.01, and dated letters of reference from employers, instructors, or professional counselors that contain valid contact information for the individual providing the reference.
- If applicable, a detailed description of any administrative orders or civil judgments for violations of labor standards, any suspension of a commercial cannabis license, revocation of a commercial cannabis license, or sanctions for unlicensed commercial cannabis activity by a licensing authority, local agency, or state agency against the owner in their individual capacity or a business entity in which the owner was an owner or officer within the three years immediately preceding the date of the application. The owner may provide mitigating information including, but not limited to, a statement of rehabilitation, to the Department for consideration if any prior discipline disclosed pursuant to this section may result in denial of the application.
- Attestation to the following statement: Under penalty of perjury, I hereby declare that the information contained within and submitted with this application is complete, true, and accurate. I understand that a misrepresentation of fact is cause for rejection of this application, denial of the license, or revocation of a license issued.
- Evidence that the commercial cannabis business has the legal right to occupy and use the proposed location that complies with section 15007.
- An attestation that the proposed premises is in compliance with Business and Professions Code section 26054(b) and, if requested, evidence of compliance. For purposes of this section, evidence of compliance with Business and Professions Code section 26054(b) may be a copy of a valid license, permit, or other authorization issued by the applicable local jurisdiction or a notification from the applicable local jurisdiction stating that the commercial cannabis business is in compliance with local ordinances and regulations.
- For a commercial cannabis business with 20 or more employees, the applicant shall either provide a notarized statement that the commercial cannabis business will enter into and abide by the terms of a labor peace agreement or demonstrate that the commercial cannabis business has entered into a labor peace agreement by providing a copy of the signature page of the agreement. For a commercial cannabis business with fewer than 20 employees that has not yet entered into a labor peace agreement, provide a notarized statement indicating that the applicant will enter into and abide by the terms of a labor peace agreement within 60 days of employing its 20th employee.
- The applicant shall provide a valid seller’s permit number issued by the California Department of Tax and Fee Administration, if applicable. If the commercial cannabis business has not yet received a seller’s permit, the commercial cannabis business shall attest that the commercial cannabis business is currently applying for a seller’s permit.
- A diagram of the premises as required by section 15006.
- Proof of a surety bond of at least $5,000 payable to the State of California for each licensed premises. All bonds required under this section shall be issued by a corporate surety licensed to transact surety business in the State of California. An aggregated bond may be used when multiple licenses are held by the same commercial cannabis business.
- Additional information as required by section 15011.
- When an applicant provides a license, permit, or other authorization from the local jurisdiction where the licensed premises will be or is located, the Department will notify the applicable local jurisdiction to confirm the validity of the authorization. If the local jurisdiction does not respond within 10 calendar days, the Department shall consider the authorization valid.
- The limited waiver of sovereign immunity required by section 15009, if applicable.
- Evidence of exemption from, or compliance with, the California Environmental Quality Act as required by section 15010.
- The commercial cannabis business’ State Employer Identification Number (SEIN) issued by the California Employment Development Department, if applicable.
- For a commercial cannabis business with more than one employee, the applicant shall attest that the commercial cannabis business employs, or will employ within one year of receiving a license, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course.
- An applicant shall disclose whether they have been denied a license or had a license suspended or revoked by the Department or any other state cannabis licensing authority. The applicant shall provide the type of license denied, suspended, or revoked, the name of the licensing authority, and the date of the denial, suspension, or revocation.
(d) An applicant for a cannabis event organizer license shall not be required to comply with subsections (c)(5), (c)(17), (c)(20), (c)(21), (c)(22), (c)(24), (c)(25), and (c)(26).
Authority: Section 26013, Business and Professions Code.
Reference: Sections 26012, 26050, 26051.5 and 26055, Business and Professions Code.
§15002.1. Temporary Cannabis Event Application.
(a) A temporary cannabis event license shall only be issued to a person who holds a cannabis event organizer license issued by the Department.
(b)An application for a temporary cannabis event license shall include the following:
- The name of the applicant. For applicants who are individuals, the applicant shall provide both the first and last name of the individual. For applicants who are business entities, the applicant shall provide the legal business name of the entity.
- The license number for each state cannabis license held by the applicant.
- The address of the location where the temporary cannabis event will be held, or if no address exists, the assessor parcel number, or street description.
- The name of the temporary cannabis event.
- A diagram of the physical layout of the temporary cannabis event. The diagram shall clearly indicate where the temporary cannabis event will be taking place on the location grounds, all entrances and exits that will be used by participants during the event, all cannabis goods consumption areas, and all areas where cannabis and cannabis products will be sold or displayed. The hours during which cannabis goods will be sold shall be noted on the diagram. The diagram shall also clearly indicate the area where cannabis waste will be stored, all areas where cannabis goods will be stored, and the specific location of each cannabis licensee and non-cannabis vendor who will be participating in the event. Each cannabis licensee and non-cannabis vendor participating in the event shall be identified with an assigned temporary cannabis event location number. The diagram shall also designate a limited-access area that can only be accessed by the cannabis event organizer and Department representatives.
- The dates and hours of operation for which the temporary cannabis event license is being sought. A temporary event license is required for any date in which the applicant engages in onsite cannabis goods sales or allows onsite cannabis goods consumption.
- Contact information for the applicant’s designated primary contact person regarding the temporary event license, including the name, title, address, phone number, and email address of the individual.
- Contact information for a designated contact person(s) who shall be onsite at the event and reachable by telephone at all times during the event.
- Written approval from the local jurisdiction authorizing the applicant to engage in onsite cannabis goods sales to, and onsite consumption by, persons 21 years of age or older at the temporary cannabis event at the proposed location.
- A list of all licensees who will be participating in the event that provides a designated contact for each licensee who will be responsible for that licensee’s activities during the event and will be available to the Department in person or by phone throughout the event, whether the licensee will be selling cannabis goods at the event, whether the licensee will be selling any non-cannabis products at the event, and a description of the type of non-cannabis products that will be sold, if applicable.
- A list of all non-cannabis vendors who will be participating in the event, a description of the type of product they will be selling or displaying, and contact information for a designated contact person.
- Attestation to the following statement: Under penalty of perjury, I hereby declare that the information contained within and submitted with this application is complete, true, and accurate. I understand that a misrepresentation of fact is cause for rejection of this application, denial of the license, or revocation of a license issued.
Authority: Section 26013, Business and Professions Code.
Reference: Sections 26012 and 26200, Business and Professions Code.
§15003. Owners of Commercial Cannabis Businesses.
(a) An applicant for a commercial cannabis license or a licensee shall disclose all owners of the commercial cannabis business. An owner of the commercial cannabis business includes all of the following:
- A person with an aggregate ownership interest of 20 percent or more in the commercial cannabis business, unless the interest is solely a security, lien, or encumbrance. For purposes of this section, “aggregate” means the total ownership interest held by a single person through any combination of individually held ownership interests in a commercial cannabis business and ownership interests in an entity that has an ownership interest in the same commercial cannabis business. For example, a person who owns 10 percent of the stock in a commercial cannabis business as an individual shareholder and 100 percent of the stock in an entity that owns 10 percent of the stock in the same commercial cannabis business has a 20 percent aggregate ownership interest in the commercial cannabis business.
- An individual who manages, directs, or controls the operations of the commercial cannabis business, including but not limited to:
- A member of the board of directors of a nonprofit.
- A general partner of a commercial cannabis business that is organized as a partnership.
- A non-member manager or managing member of a commercial cannabis business that is organized as a limited liability company.
- The trustee(s) and all persons who have control of the trust and/or the commercial cannabis business that is held in trust.
- The chief executive officer, president or their equivalent, or an officer, director, vice president, general manager or their equivalent.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26001 and 26012, Business and Professions Code.
§15004. Financial Interest in a Commercial Cannabis Business.
(a) An applicant for a commercial cannabis license or a licensee shall disclose all
financial interest holders. A financial interest holder of the commercial cannabis business
includes all of the following, except as provided in subsection (b):
- A person with an aggregate ownership interest of less than 20 percent.
- A person providing a loan to the commercial cannabis business.
- A person entitled to receive 10 percent or more of the profits of the commercial
- cannabis business, including:
- An employee who has entered into a profit share plan with the commercial cannabis business.
- A landlord who has entered into a lease agreement with the commercial cannabis business for a share of the profits.
- A consultant who is providing services to the commercial cannabis business for a share of the profits.
- A person acting as an agent, such as an accountant or attorney, for the commercial cannabis business for a share of the profits.
- A broker who is engaging in activities for the commercial cannabis business for a share of the profits.
- A salesperson who earns a commission.
- A person who has entered into an intellectual property licensing agreement for a share of the profits.
(b) Financial interest holders do not include any of the following:
- A bank or financial institution whose interest constitutes a loan;
- Persons whose only financial interest in the commercial cannabis business is through an interest in a diversified mutual fund, blind trust, or similar instrument;
- Persons whose only financial interest is a security interest, lien, or encumbrance on property that will be used by the commercial cannabis business; and
- Persons who hold a share of stock that is less than 10 percent of the total shares in a publicly traded or privately held company.
Authority: Section 26013, Business and Professions Code.
Reference: Sections 26012 and 26051.5, Business and Professions Code.
§15004.1. Independence of Testing Laboratories.
(a) A licensed testing laboratory shall maintain independence from persons who hold a license or an interest in a commercial cannabis business licensed for any activity other than testing.
(b) A person who is an owner or financial interest holder of a licensed testing laboratory shall not be an owner or financial interest holder of a commercial cannabis business licensed for any activity other than testing.
(c) A licensed testing laboratory shall not lease real or personal property from or to a commercial cannabis business licensed for any activity other than testing.
(d) A licensed testing laboratory shall not employ any person who is employed by, or is an owner or financial interest holder of, a commercial cannabis business licensed for any activity other than testing.
(e) A licensed testing laboratory shall not offer or agree to provide preferential treatment, including discounted testing services, to any other licensee unless the offer or agreement is available to all licensees.
Authority: Section 26013, Business and Professions Code.
Reference: Section 26053, Business and Professions Code.
§15005. Personnel Prohibited from Holding Licenses.
(a) A license authorized by the Act and issued by the Department may not be held by, or issued to, any person holding office in, or employed by, any agency of the State of California or any of its political subdivisions when the duties of such person have to do with the enforcement of the Act or any other penal provisions of law of this State prohibiting or regulating the sale, use, possession, transportation, distribution, testing, manufacturing, or cultivation of cannabis or cannabis products.
(b) This section applies to, but is not limited to, any person employed in the State of California Department of Justice as a peace officer, in any district attorney’s office, in any city attorney’s office, in any sheriff’s office, or in any local police department.
(c) No person listed in subsection (a) or (b) may have any ownership interest, directly or indirectly, in any business to be operated or conducted under a cannabis license.
(d) This section does not apply to any person who holds a license in the capacity of executor, administrator, or guardian.
Authority: Section 26013, Business and Professions Code.
Reference: Section 26012, Business and Professions Code.
§15006. Premises Diagram.
(a) An applicant shall submit to the Department, with the application, a complete and detailed diagram of the proposed premises. The diagram shall be used by the Department to determine whether the premises meets the requirements under this division and the Act. The Department shall deny an application if the premises does not qualify for licensure pursuant to Business and Professions Code section 26057.
(b) The diagram shall show the boundaries of the property and the proposed premises to be licensed, showing all boundaries, entrances and exits, interior partitions, walls, rooms, windows, and doorways, and shall include a brief statement or description of the principal activity to be conducted therein. The diagram shall also include the dimensions of the boundaries of the premises and structures, including interior and exterior dimensions, to clearly identify the bounds of the premises.
(c) The diagram shall show and identify commercial cannabis activities that will take place in each area of the premises, and identify limited-access areas. Commercial cannabis activities that shall be identified on the diagram include the following, if applicable to the business operations: storage, batch sampling, loading or unloading of shipments, packaging and labeling, customer sales, loading for deliveries, extraction, infusion, cultivation, and processing.
(d) The diagram shall show where all cameras are located and assign a number to each camera for identification purposes unless the premises is exempt from the video surveillance requirement pursuant to section 15315 or section 15044.
(e) The diagram shall be to scale to clearly determine the bounds of the premises.
(f) If the proposed premises consists of only a portion of a property, the diagram must be labeled indicating which part of the property is the proposed premises and for what purpose(s) the remaining property is used.
(g) If the proposed premises consists of only a portion of a property that will contain two or more licensed premises, the diagram shall clearly show the designated entrances and walls under the exclusive control of the commercial cannabis business for the premises, as well as the designated entrances and walls for each additional premises. The diagram shall also show all proposed common or shared areas of the property. Such areas may include lobbies, bathrooms, hallways, and breakrooms.
(h) If the commercial cannabis business is seeking a license to conduct cultivation activities on the proposed premises, the following must be clearly identified on the premises diagram:
- All roads and water crossings on the property.
- All water sources identified and labeled for beneficial use type, including but not limited to, irrigation, domestic, fire protection, power, fish and wildlife preservation and enhancement, and recreation.
- If the commercial cannabis business is proposing to use a diversion from a waterbody or an underground stream flowing in a known and definite channel, groundwater well, or rain catchment system as a water source for cultivation, include the following locations on the premises diagram with locations also provided as geographic coordinates in either latitude and longitude or the California Coordinate System:
- Sources of water used, including the location of waterbody diversions(s), pump locations(s), and distribution system; and
- Location, type, and capacity of each water storage unit to be used for cultivation.
- The assessor’s parcel number(s).
- For applicants for a Specialty Cottage, Specialty, Small,
andMedium, and Large license:- Canopy area(s), including dimensions in feet and aggregate square footage if the canopy areas are noncontiguous. All unique areas separated by identifiable boundaries pursuant to section 15000(m) shall be clearly described and labeled in the premises diagram. If mature plants are being cultivated using a shelving system, the surface area of each level shall be included in the total canopy calculation;
- Area(s) outside of the canopy where only immature plants shall be maintained, including their dimensions in feet, if applicable. This area may not be shared among multiple licenses held by one licensee;
- Designated pesticide and other agricultural chemical storage area(s);
- Designated processing area(s) if the licensee will process onsite. This area may not be shared among multiple licenses held by one licensee;
- Designated packaging area(s) if the licensee will package products onsite. This area may not be shared among multiple licenses held by one licensee;
- Designated composting area(s) if the licensee will compost cannabis waste onsite;
- Designated secured area(s) for cannabis waste if different from subsection (F) above.
- Designated area(s) for harvested cannabis storage. This area may not be shared among multiple licenses held by one licensee.
- Designated area(s) that are shared between licenses held by one licensee. The shared area(s) must be contiguous, be indicated on the premises diagram for each application, and be one or more of the following designated area(s) shared between licenses held by one licensee: pesticide and other agricultural chemical storage area(s), composting area(s), and secured area(s) for cannabis waste; and
- Common use area(s), such as hallways, bathrooms, and breakrooms. This area may be shared by multiple licensees.
- For indoor and Mixed-light license type applications, a lighting diagram with the following information must be included:
- Location of all lights in the canopy area(s); and
- Maximum wattage, or wattage equivalent, of each light.
- For applicants for a nursery license:
- Designated pesticide and other agricultural chemical storage area(s);
- Designated composting area(s) if the licensee will compost cannabis waste onsite;
- Designated secured area(s) for cannabis waste if different from subsection (B) above;
- At least one of the following areas:
- Area(s) that shall contain only immature plants; or
- Designated seed production area(s) that may contain mature plants; and
- Designated research and development area(s) that may contain mature plants, if the licensee will be conducting research and development activities that require a plant to flower.
- For applicants for a processor license:
- Designated processing area(s);
- Designated packaging area(s), if the licensee will package and label products onsite;
- Designated composting area(s) if the licensee will compost cannabis waste onsite;
- Designated secured area(s) for cannabis waste if different from subsection (C) above; and
- Designated area(s) for harvested cannabis storage.
- If the commercial cannabis business is seeking a Type S license to manufacture cannabis products or registering as a manufacturing Shared-Use Facility, the premises diagram must also comply with all applicable requirements in sections 15011(b)(13)(D) and 17124-17128.
(j) If a proposed premises is located on only a portion of a property that also includes a residence, the diagram shall clearly show the designated buildings for the premises and the residence.
(k) If the commercial cannabis business is seeking a license to conduct manufacturing activities using a closed-loop extraction system, the diagram shall include the location of the closed-loop extraction system and clearly display the systems serial number.
Authority: Section 26013, Business and Professions Code.
Reference: Sections 26012 and 26051.5, Business and Professions Code.
§15007. Landowner Approval.
(a) If the commercial cannabis business is not the landowner of the real property upon which the premises is located, the commercial cannabis business shall provide to the Department a document from the landowner or the landowner’s agent that states that the commercial cannabis business has the right to occupy the property and acknowledges that the commercial cannabis business may use the property for the commercial cannabis activity for which the commercial cannabis business is applying for licensure. An applicant shall also provide a copy of the rental agreement, as applicable.
(b) If the commercial cannabis business is the landowner of the real property upon which the premises is located, the commercial cannabis business shall provide to the Department a copy of the title or deed to the property.
(c) If the landowner is a trust, the landowner approval shall come from the person who holds equitable title in the real property.
Authority: Section 26013, Business and Professions Code.
Reference: Section 26051.5, Business and Professions Code.
§15007.1. Electronic Signature.
The Department will accept an electronic signature that complies with Civil Code section 1633.2(h) on any documents required to be submitted to the Department and that are submitted electronically, except documents that are required to be notarized.
Authority: Section 26013, Business and Professions Code.
Reference: Section 26013, Business and Professions Code.
§15009. Limited Waiver of Sovereign Immunity.
(a) Any applicant or licensee that may fall within the scope of sovereign immunity that may be asserted by a federally recognized tribe or other sovereign entity must waive any sovereign immunity defense that the applicant or licensee may have, may be asserted on its behalf, or may otherwise be asserted in any state administrative or judicial enforcement actions against the applicant or licensee, regardless of the form of relief sought, whether monetary or otherwise, under the state laws and regulations governing commercial cannabis activity. The applicant or licensee must submit a written waiver of sovereign immunity to the Department with any license application or renewal, which is valid for the period of the license. The written waiver shall include that the applicant or licensee has the lawful authority to enter into the waiver required by this section, the applicant or licensee hereby waives sovereign immunity, and the applicant or licensee agrees to do all of the following:
- Provide documentation to the Department that establishes that the applicant or licensee has the lawful authority to enter into the waiver required by this section;
- Conduct all commercial cannabis activity in full compliance with the state laws and regulations governing commercial cannabis activity, including submission to all enforcement provisions thereof;
- Allow access as required by state statute or regulation by persons or entities charged with duties under the state laws and regulations governing commercial cannabis activity to any licensed premises or property at which the applicant conducts any commercial cannabis activity, including licensed premises or property where records of commercial cannabis activity are maintained by or for the applicant or licensee;
- Provide any and all records, reports, and other documents as may be required under the state laws and regulations governing commercial cannabis activity;
- Conduct commercial cannabis activity with other state commercial cannabis licensees only, unless otherwise specified by state law;
- Meet all of the requirements for licensure under the state laws and regulations governing the conduct of commercial cannabis activity, and provide truthful and accurate documentation and other information of the applicant’s qualifications and suitability for licensure as may be requested; and
- Submit to the personal and subject matter jurisdiction of the California courts to address any matter related to the waiver or the commercial cannabis application, license, or activity, and that all such matters and proceedings shall be governed, construed and enforced in accordance with California substantive and procedural law, including but not limited to the Medicinal and Adult- Use Regulation and Safety Act and the Administrative Procedure Act.
(b) The Department shall not approve an application for a state license if approval of the license would violate the provisions of any local ordinance or regulation adopted in accordance with Business and Professions Code section 26200 that is issued by the county or, if within a city, the city, within which the licensed premises is to be located.
(c) Any applicant or licensee must immediately notify the Department of any changes that may materially affect the applicant or licensee’s compliance with subsection (a) of this section.
(d) Any failure by an applicant or licensee to comply with the requirements of subsections (b) or (c) of this section shall be a basis for denial of an application or renewal or discipline of a licensee.
Authority: Section 26013, Business and Professions Code.
Reference: Sections 26012, 26050 and 26051.5, Business and Professions Code.
§15010. Compliance with the California Environmental Quality Act (CEQA).
(a) “CEQA Guidelines” means the Guidelines for Implementation of the California Environmental Quality Act codified at title 14, California Code of Regulations, section 15000 et seq.
(b) An applicant shall provide evidence of compliance with, or exemption from, CEQA (division 13 (commencing with section 21000) of the Public Resources Code). The evidence provided may be any one of the following:
- A signed copy of a project-specific Notice of Determination or Notice of Exemption and a copy of the associated CEQA document, or reference to where it may be located electronically, a project description, and any accompanying permitting documentation from the local jurisdiction used for review in determining site-specific environmental compliance. Documentation may include a copy of the administrative record previously certified or adopted by the local jurisdiction that has already reviewed the commercial cannabis business’ proposed commercial cannabis activities. For purposes of this section, the administrative record may include, but is not limited to:
- Environmental documentation, including, but not limited to, exemptions, initial studies, negative declarations, mitigated negative declarations, and environmental impact reports;
- Staff reports and related documents prepared by the local jurisdiction;
- Transcripts or minutes of the proceedings of the local jurisdiction;
- Notice(s) issued by the local jurisdiction to comply with CEQA and the CEQA Guidelines;
- Proposed decisions or findings considered by the local jurisdiction by its staff or the commercial cannabis business; and
- Documentation of the local jurisdiction’s final decision.
- If the applicant does not have the evidence specified in subsection (b)(1), or if the Department determines that the evidence submitted is not sufficient to determine compliance or exemption from CEQA, then the applicant shall submit the information on a form to be prescribed by the Department. Such information shall include at least the following:
- The project location and surrounding land use, which shall:
- Describe the project location, including street address, city, county, Assessor’s Parcel Number, major cross streets, general plan designation, zoning designation, and any other physical description that clearly indicates the project site location.
- Describe the surrounding land uses and zoning designations within a one-half mile radius of the project and list all abutting land uses.
- Include a vicinity map and aerial image to show the project location.
- Include photographs, not larger than 8.5 by 11 inches, of existing visual conditions as observed from publicly accessible vantage point(s).
- A project description, which shall:
- Describe the activities included in the project application and identify any other commercial cannabis activity or activities occurring at the proposed premises.
- Quantify the project size (total floor area of the project), and the lot size on which the project is located, in square feet.
- List and describe any other related public agency permits and approvals, including any entitlements, required for this project, including those required by a planning commission, local air district, or regional water board.
- Identify whether the commercial cannabis business is licensed by, or has applied for licensure from, the Department or one of the prior state cannabis licensing authorities (the Bureau of Cannabis Control, the California Department of Food and Agriculture, and the California Department of Public Health) to engage in commercial cannabis activity at the proposed premises.
- Estimate the number of anticipated employees onsite, occupancy during operating hours, and frequency of deliveries or shipments originating from and/or arriving to the project site.
- The environmental setting, which shall:
- Describe natural characteristics (e.g., topography, vegetation, drainage, soil stability, habitat, etc.) on the project site.
- Identify whether there are any watercourses or riparian habitats (e.g., drainage swales, stream courses, springs, ponds, lakes, creeks, tributary of creeks, wetlands) within 150 feet of the proposed premises.
- Identify the approximate number of vehicle trips per day to be generated by the project and information regarding the days and times most trips are expected to occur.
- Identify whether the property contains natural features of scenic value or rare or unique characteristics (e.g., rock outcroppings, mature trees).
- Identify whether the property has any historic designations or archeological remains onsite.
- Identify whether the property contains habitat(s) for special status species.
- Identify the location, type, and quantity of hazardous materials, as defined by Health and Safety Code section 25260, that are stored, used, or disposed of at the project site and a copy of the Hazardous Material Business Plan (HMBP) prepared for the proposed premises, if any.
- Discuss whether the project will increase the quantity and type of solid waste, as defined by Public Resources Code section 40191, or hazardous waste, as defined by Health and Safety Code section 25117, that is generated or stored onsite.
- Describe the project’s anticipated operational energy needs, identify the source of energy supplied for the project and the anticipated amount of energy per day, and explain whether the project will require an increase in energy demand and the need for additional energy resources.
- The project location and surrounding land use, which shall:
(c) If the Department determines that a project does not qualify for an exemption and further environmental review is required pursuant to the CEQA Guidelines, the Department may charge the applicant for the costs of preparation of any supplemental environmental document as well as the Department’s costs for procedures to comply with CEQA.
Authority: Section 26013, Business and Professions Code.
Reference: Section 26055, Business and Professions Code.
§15011. Additional Information.
(a) A commercial cannabis business applying for a license to cultivate cannabis shall provide the following information:
- The hours of operation for each day of the week the commercial cannabis business will have staff on the licensed premises. Applicants may include annual scheduled closure periods for their site.
- For commercial cannabis businesses that are a cannabis cooperative as defined by division 10, chapter 22 (commencing with section 26220) of the Business and Professions Code, identification of all members. Identifying information shall include each member’s license number for commercial cannabis activity, and the name of the licensed business.
- For all cultivator license types except processor, evidence of enrollment in an order or waiver of waste discharge requirements with the State Water Resources Control Board or the appropriate Regional Water Quality Control Board. Acceptable documentation for evidence of enrollment may be a Notice of Applicability letter. Acceptable documentation that enrollment is not necessary may be a Notice of Non-Applicability.
- Evidence that the commercial cannabis business has conducted a hazardous materials record search of the EnviroStor database for the proposed premises. If hazardous sites were encountered, the applicant shall provide documentation of protocols implemented to protect employee health and safety.
- For indoor and mixed-light license types, identification of all power sources for cultivation activities, including, but not limited to, illumination, heating, cooling, and ventilation.
- A proposed cultivation plan that complies with the requirements in section 16309.
- Identification of all water sources used for cultivation activities as required in section 16311.
- A copy of any final lake or streambed alteration agreement issued by the California Department of Fish and Wildlife, pursuant to sections 1602 or 1617 of the Fish and Game Code, or written verification from the California Department of Fish and Wildlife that a lake and streambed alteration agreement is not required.
- An attestation that the applicant entity is an “agricultural employer” as defined by the Alatorre-Zenovich-Dunlap-Berman Agricultural Labor Relations Act of 1975; division 2, part 3.5 (commencing with section 1140) of the Labor Code.
- An attestation that the local fire department has been notified of the cultivation site if the application is for an indoor license type.
- If applicable, the applicant shall provide evidence that the proposed premises is not located in whole or in part in a watershed or other geographic area that the State Water Resources Control Board or the Department of Fish and Wildlife has determined to be significantly adversely impacted by cannabis cultivation pursuant to section 26060(a)(2) of the Business and Professions Code.
- For all cultivator license types except processor, a signed attestation that states the commercial cannabis business shall contact the appropriate County Agricultural Commissioner regarding requirements for legal use of pesticides on cannabis prior to using any of the active ingredients or products included in the pest management plan and shall comply with all pesticide laws.
(b) A commercial cannabis business applying for a license to manufacture cannabis products shall provide the following information:
- The type(s) of activity that will be conducted at the proposed licensed premises (extraction, infusion, packaging, or labeling).
- The types of products that will be manufactured, packaged, or labeled at the premises, including a product list.
- The name, title, email address, and phone number of the onsite individual who manages the operation of the premises.
- The name, title, email address, and phone number of an alternate contact person for the premises, if applicable.
- The number of employees at the premises.
- Upon request by the Department, a description of inventory control procedures sufficient to demonstrate how the commercial cannabis business will comply with the requirements of section 17218, or a copy of the standard operating procedure addressing inventory control.
- Upon request by the Department, a description of quality control procedures sufficient to demonstrate how the commercial cannabis business will comply with all of the applicable requirements specified in sections 17208 through 17216, or a copy of the standard operating procedure addressing quality control.
- Upon request by the Department, a description of the transportation process describing how cannabis or cannabis products will be transported into and out of the premises, or a copy of the standard operating procedure addressing transportation.
- Upon request by the Department, a description of security procedures sufficient to demonstrate how the commercial cannabis business will comply with the applicable security requirements of sections 15042 through 15047, or a copy of the standard operating procedure addressing security procedures.
- Upon request by the Department, a description of the cannabis waste management procedures sufficient to demonstrate how the commercial cannabis business will comply with the requirements of section 17223, or a copy of the standard operating procedure addressing cannabis waste management.
- A copy of the signed closed-loop system certification required pursuant to section 17206.1, if applicable.
- Any manufacturer submitting operating procedures and protocols to the Department pursuant to the Act and this division may claim such information as a trade secret or confidential by clearly identifying such information as “confidential” on the document at the time of submission. Any claim of confidentiality by a manufacturer must be based on the manufacturer’s good faith belief that the information marked as confidential constitutes a trade secret as defined in Civil Code section 3426.1(d), or is otherwise exempt from public disclosure under the California Public Records Act, Government Code section 6250 et seq.
- Applications for a Type S manufacturing license shall:
- Be submitted in accordance with section 15002;
- Include the license number and address of the registered shared-use facility at which the commercial cannabis business will conduct manufacturing operations;
- Include a copy of the use agreement signed by both the Type S applicant and the primary licensee; and
- On the premises diagram submitted pursuant to section 15002(c)(21), indicate the designated area to be used by the Type S commercial cannabis business and detail where the commercial cannabis business will store its cannabis and cannabis products.
- A Type S license shall only be available to commercial cannabis businesses with a gross annual revenue of less than $1,000,000 as calculated pursuant to section 15014.
- A Type S licensee may conduct the following operational activities:
- Infusions, as defined in section 15000(ee);
- Packaging and labeling of cannabis products; and
- Extractions with water, glycerin, vegetable oil, animal fat, or using mechanical methods, provided that the resulting extract or concentrate shall be used solely in the manufacture of the Type S licensee’s infused product and shall not be sold to any other licensee.
(c) A commercial cannabis business applying for a license to distribute cannabis and cannabis products shall provide the following information, upon the request of the Department:
- Standard Operating Procedures, Form DCC-LIC-019 (New 2/22), incorporated herein by reference.
- Proof of compliance with the insurance requirements in section 15308.
- Transport vehicle information required by section 15312.
(d) A commercial cannabis business applying for a license to sell cannabis and cannabis
products at retail shall provide the following information, upon request by the
Department:
- Standard Operating Procedures, Form DCC-LIC-019 (New 2/22).
- Delivery employee information required by section 15415.
- Delivery vehicle information required by section 15417.
(e) A commercial cannabis business applying for a license to operate as a microbusiness
shall provide the information required in subsections (a) through (d) as applicable for the
activities they will be conducting under the license.
(f) Applicants for a cannabis event organizer license shall indicate whether the cannabis
event organizer plans to hold 0-5 events, 6-10 events, 11-20 events, or more than 20
events during the license period.
(g) Applicants for a testing laboratory license shall provide the following information:
- The certificate(s) of accreditation required by sections 15701 and 15702, or the information required for an interim license required by section 15703.
- Upon the request by the Department, Standard Operating Procedures, Form DCCLIC-019 (New 2/22).
- The operating procedures required by chapter 6.
(h) The Department may request additional information and documents from the
applicant. The Department will provide the applicant with a deadline for submittal of
additional information. The Department will consider the complexity of the information
requested and the ease with which the information can be obtained and transmitted to
the Department by the applicant in determining the deadline.
(i) Items required by this section may also be requested by the Department at any time
following the issuance of a license. Licensees shall maintain the information required by
this section and provide it to the Department upon request.
Authority: Sections 26013 and 26130, Business and Professions Code.
Reference: Sections 26031, 26050, 26051.5 and 26130, Business and Professions Code.
§15012. Incomplete and Abandoned Applications.
(a) Incomplete applications will not be processed. Applications will only be considered complete if all of the information required under sections 15002 and 15011 is included. The Department shall issue a written notice to the applicant, by mail, email, or through the Department’s licensing system, informing them that the application is incomplete and identifying the information missing from the application.
(b) If the applicant fails to submit all required information within 180 days from the date of the initial written notice, the application shall be deemed abandoned.
(c) If the applicant fails to submit payment of the license fee within 60 calendar days from the date of the request for payment of the license fee, the application shall be deemed abandoned.
(d) The Department will not refund application fees for an incomplete or abandoned application.
(e) An applicant may reapply at any time following an abandoned application and will be required to submit a new application and application fee.
Authority: Sections 26013 and 26130, Business and Professions Code.
Reference: Sections 26012, 26050 and 26051.5, Business and Professions Code.
§15013. Withdrawal of Application.
(a) An applicant may withdraw an application at any time prior to the Department issuance of a license or denial of a license.
(b) Requests to withdraw an application must be submitted to the Department by mail in writing, dated, and signed by the applicant, or in writing by electronic mail to licensing@cannabis.ca.gov.
(c) In accordance with Business and Professions Code section 26057, withdrawal of an application shall not, unless the Department has consented in writing to such withdrawal, deprive the Department of its authority to institute or continue a proceeding against the commercial cannabis business for the denial of the license upon any ground provided by law or to enter an order denying the license upon any such ground.
(d) The Department will not refund application fees for a withdrawn application.
(e) An applicant may reapply at any time following the withdrawal of an application and will be required to submit a new application and application fee.
Authority: Section 26013, Business and Professions Code.
Reference: Sections 26050 and 26057, Business and Professions Code.