Article 2.

APPLICATIONS

Table of Contents

§ 8100. Temporary Licenses.

§ 8100 (a) A temporary license is a conditional license that authorizes the licensee to engage in commercial cannabis activity as a licensee would be permitted to do under the privileges of an annual license of the same type. A temporary licensee shall follow all applicable statutes and regulations as a licensee would be required to do if the licensee held an annual license of the same type.

§ 8100 (b) A temporary license issued pursuant to this chapter shall be valid for one-hundred twenty (120) calendar days from the effective date. No temporary license shall be effective prior to January 1, 2018.

§ 8100 (c) A temporary license may be extended for additional ninety (90) calendar day periods if a complete application for licensure has been submitted to the department pursuant to section 8102 of this chapter.

§ 8100 (d) A temporary license does not obligate the department to issue an annual license nor does the temporary license create a vested right in the holder to either an extension of the temporary license or to the granting of a subsequent annual license.

§ 8100 (e) The Department shall not issue any temporary licenses or extensions of temporary licenses after December 31, 2018. Any temporary licenses issued or extended with an expiration date after December 31, 2018 will be valid until it expires, but shall not be extended beyond the expiration date.

Authority: Sections 26012 and 26013, Business and Professions Code.
Reference: Sections 26012, 26013, 26050, 26051, and 26180, Business and Professions Code.

§ 8101. Annual License Application Fees.

The following are nonrefundable application fees for the specified annual license type and shall be paid by the applicant at
the time the complete application is submitted to the department:

(a) Specialty Cottage Outdoor $135
(b) Specialty Cottage Indoor $205
(c) Specialty Cottage Mixed-Light Tier 1 $340
(d) Specialty Cottage Mixed-Light Tier 2 $580
(e) Specialty Outdoor $270
(f) Specialty Indoor $2,170
(g) Specialty Mixed-Light Tier 1 $655
(h) Specialty Mixed-Light Tier 2 $1,125
(i) Small Outdoor $535
(j) Small Indoor $3,935
(k) Small Mixed-Light Tier 1 $1,310
(l) Small Mixed-Light Tier 2 $2,250
(m) Medium Outdoor $1,555
(n) Medium Indoor $8,655
(o) Medium Mixed-Light Tier 1 $2,885
(p) Medium Mixed-Light Tier 2 $4,945
(q) Nursery $520
(r) Processor $1,040

Authority: Sections 26012 and 26013, Business and Professions Code.
Reference: Sections 26012, 26013, 26050, 26061, and 26180, Business and Professions Code.

§ 8102. Annual License Application Requirements.

Applications for a cultivation license shall be completed and submitted online at calcannabis.cdfa.ca.gov or by mailing a
hard copy of the application to the department at P.O. Box 942872, Sacramento, CA 94271-2872. Application fees, pursuant to section 8101 of this chapter, shall accompany the applications submitted online at calcannabis.cdfa.ca.gov or by mail to the department at P.O. Box 942872, Sacramento, CA 94271-2872. Each application shall include the following, if applicable:

§ 8102 (a) The legal business name of the applicant entity and the business entity structure, including but not limited to a
corporation, general partnership, joint venture, limited liability company, limited liability partnership, limited
partnership, sovereign entity, sole proprietorship, or trust;

§ 8102 (b) The license type, pursuant to section 8201 of this chapter, for which the applicant is applying and whether the
application is for an M-license or A-license;

§ 8102 (c) A list of all valid commercial cannabis license types the applicant entity holds and the associated license numbers from the department and other cannabis licensing authorities;

§ 8102 (d) The physical address of the premises;

§ 8102 (e) The mailing address of the applicant entity;

§ 8102 (f) The hours of operation for each day of the week the applicant entity will have staff on the licensed premises. The
applicant must provide a minimum of two (2) hours of operation that are between 8:00am and 5:00pm (Pacific Time) on
each day, Monday through Friday;

§ 8102 (g) A designated responsible party, who shall also be an owner, with legal authority to bind the applicant entity, and the primary contact for the application. The following information shall be provided for the designated responsible party: full legal name, title, mailing address, primary contact phone number, email address, preferred method of contact (either standard mail or email), and a copy of the owner’s government-issued identification. Acceptable forms of
identification are a document issued by a federal, state, county, or municipal government, including, but not limited to,
a driver’s license, that contains the name, date of birth, physical description, and picture of the individual;

§ 8102 (h) An individual or entity serving as agent for service of process for the applicant. The following information shall be provided for the agent for service of process: full legal name, mailing address, primary contact phone number, email address, and preferred method of contact (either standard mail or email);

§ 8102 (i) A complete list of every owner of the applicant entity pursuant to section 8103 of this chapter. Each individual owner named shall submit the following information:

(1) Full legal name;

(2) Title within the applicant entity;

(3) Date of birth;

(4) Social security number or individual taxpayer identification number;

(5) Home address;

(6) Primary phone number;

(7) Email address;

(8) Preferred method of contact (either standard mail or email);

(9) Date ownership interest in the applicant entity was acquired;

(10) Percentage of the ownership interest held in the applicant entity by the owner;

(11) A list of all the valid licenses, including license type(s) and license number(s), from the department and other
cannabis licensing authorities that the owner is listed as either an owner or financial interest holder;

(12) A copy of the owner’s government-issued identification. Acceptable forms of identification are a document issued
by a federal, state, county, or municipal government, including but not limited to, a driver’s license, that contains
the name, date of birth, physical description, and picture of the individual;

(13) If applicable, a detailed description of any criminal convictions. A conviction within the meaning of this section
means a plea or verdict of guilty or a conviction following a plea of nolo contendere. Convictions dismissed under
sections 1203.4, 1203.4a and 1203.41 of the Penal Code or equivalent non-California law shall be disclosed. Juvenile
adjudications and traffic infractions do not need to be included. For each conviction, all of the following shall be
provided:

(A) The date of conviction;

(B) Date(s) of incarceration, if applicable;

(C) Date(s) of probation, if applicable;

(D) Date(s) of parole, if applicable;

(E) A detailed description of the offense for which the owner was convicted; and

(F) A statement of rehabilitation for each conviction. 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 section 4852.01 of the Penal Code, and dated letters of reference from employers, instructors, or professional counselors that contain valid contact information for the individual providing the reference. 

(14) A copy of the owner’s completed application for electronic fingerprint images submitted to the Department of Justice; 

(15) If applicable, a detailed description of any administrative orders or civil judgements 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 applicant or a business entity in which the applicant was an owner or officer within three years immediately preceding the date of the application.

§ 8102 (j) A complete list of financial interest holders pursuant to section 8103 of this chapter, including the following information for:

(1) Individuals: full legal name, tax identification number (social security number, individual taxpayer identification number, or national identification number), and government identification number, and type of government identification; and
(2) Business entities: legal business name and employer identification number.

§ 8102 (k) Copies of all formation documents, which may include, but are not limited to, articles of incorporation, operating agreement, partnership agreement, and fictitious business name statement. The applicant shall also provide all documents filed with the California Secretary of State, which may include but are not limited to, articles of
incorporation, certificate of stock, articles of organization, certificate of limited partnership, and statement of
partnership authority. If an applicant is a foreign corporation, a certificate of qualification issued by the California
Secretary of State;

§ 8102 (l) A valid seller’s permit number issued by the California Department of Tax and Fee Administration or confirmation from the California Department of Tax and Fee Administration that a seller’s permit is not needed. If the applicant entity has not yet received a seller’s permit, the applicant entity shall attest that it is currently applying for a seller’s permit;

§ 8102 (m) For applicants 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, the licensing authority that issued the license, and the name of the licensed business;

§ 8102 (n) Evidence that the applicant entity has the legal right to occupy and use the proposed location pursuant to section 8104 of this chapter;

§ 8102  (o) Evidence of having obtained a surety bond in the amount of not less than $5,000, payable to the department in a form prescribed by the department pursuant to Title 11 of the California Code of Regulations section 26.20. The bond shall be issued by a corporate surety licensed to transact surety business in the State of California;

§ 8102 (p) 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 can be a Notice of Applicability letter. Acceptable documentation
for a Processor that enrollment is not necessary can be a Notice of Non-Applicability;

§ 8102 (q) Evidence that the applicant 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;

§ 8102  (r) Evidence of exemption from, or compliance with, division 13 (commencing with section 21000) of the Public Resources Code, California Environmental Quality Act (CEQA). The evidence provided shall be one of the following:

(1) 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/or any accompanying permitting documentation from the local jurisdiction used for review in determining site specific environmental compliance;

(2) If an applicant does not have the evidence specified in subsection (1), or if the local jurisdiction did not prepare a CEQA document, the applicant will be responsible for the preparation of an environmental document in compliance with CEQA that can be approved or certified by the department, unless the department specifies otherwise.

§ 8102 (s) 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;

§ 8102  (t) A property diagram pursuant to section 8105 of this chapter;

§ 8102 (u) A proposed cultivation plan pursuant to section 8106 of this chapter;

§ 8102 (v) Identification of all of the following applicable water sources used for cultivation activities and the applicable supplemental information for each source pursuant to section 8107 of this chapter:

(1) A retail water supplier;
(2) A groundwater well;
(3) A rainwater catchment system;
(4) A diversion from a surface waterbody or an underground stream flowing in a known and definite channel.

§ 8102 (w) 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;

§ 8102 (x) An attestation that the proposed location is at least a six-hundred (600) foot radius from a school providing instruction in kindergarten or any grades one (1) through twelve (12), or a day care center or youth center as defined in section 26001 of the Business and Professions Code, that is in existence at the time the application is submitted, or that the
premises complies with a local ordinance specifying a different radius. The distance shall be measured in the same manner as provided in subsection (c) of section 11362.768 of the Health and Safety Code unless otherwise provided by law; 

§ 8102 (y) An attestation that the applicant entity will enter into, or has already entered into, and will abide by the terms of a labor peace agreement if the applicant entity will have twenty (20) or more employees on payroll at any time during the licensed period. The applicant shall submit a copy of the page of the labor peace agreement that contains the signatures of the union representative and the applicant. For applicants who have not yet entered into a labor peace agreement, the applicant shall provide a copy of the page of the labor peace agreement that contains the signatures of the union representative and the licensee as soon as reasonably practicable after licensure;

§ 8102 (z) An attestation that the applicant entity is an “agricultural employer” as defined by the Alatorre-Zenovich-DunlapBerman Agricultural Labor Relations Act of 1975; division 2, part 3.5 (commencing with section 1140) of the Labor Code;

§ 8102 (aa) An attestation that the local fire department has been notified of the cultivation site if the application is for an indoor license type;

§ 8102 (bb) For an applicant entity with more than one employee, the applicant entity shall attest that the applicant 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;

§ 8102 (cc) Any applicant that may fall within the scope of sovereign immunity that may be asserted by a federally recognizable tribe or other sovereign entity shall waive any sovereign immunity defense that the applicant may have, may be asserted on its behalf, or may otherwise be asserted in any state or local 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, and shall provide documentation as may be requested by the department that establishes that the applicant has the lawful authority to enter into the waiver described above and has effectively done so. The limited waiver of sovereign immunity shall meet the requirements of the following:

(1) The written limited 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: 

(A) 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;

(B) 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;

(C) Allow access as required by statute or regulation by persons or entities charged with duties under the state laws and regulations governing commercial cannabis activity to any premises or property at which the applicant conducts any commercial cannabis activity, including premises or property where records of commercial cannabis activity are maintained by or for the applicant or licensee;

(D) Provide any and all records, reports, and other documents as may be required under the state laws and regulations governing commercial cannabis activity;

(E) Conduct commercial cannabis activity with other state commercial cannabis licensees only, unless otherwise specified by state law;

(F) Meet all of the requirements for licensure under 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 by the department;

(G) Submit to the personal and subject matter jurisdiction of the California courts to address any matter related to the waiver or 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 Act;

(2) Any applicant or licensee shall immediately notify the department of any changes that may materially affect the applicant and licensee’s compliance with subsection (1).

(3) Any failure by an applicant or licensee to comply with the requirements of subsections (1) and (2) shall be a basis for denial of an application or renewal or discipline of a licensee.

§ 8102 (dd) 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 8216.

§ 8102 (ee) 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 section 26200 of the Business and Professions Code by a county or, if within a city, a city, within which the licensed premises is to be located.

Authority: Sections 26012 and 26013, Business and Professions Code.
Reference: Sections 26013, 26051.5, 26054, 26055, 26057, 26060, 26060.1, 26066, and 26069, Business and Professions Code.

§ 8103. Owner and Financial Interest Holders.

§ 8103 (a) “Owner” means any of the following:

(1) A person with an aggregate ownership interest of twenty (20) percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance;

(2) The chief executive officer of a nonprofit or other entity;
(3) A member of the board of directors of a nonprofit;
(4) An individual who will be participating in the direction, control, or management of the person applying for a license.

§ 8103 (b) An owner who is an individual participating in the direction, control, or management of the commercial cannabis business includes any of the following:

(1) A partner of a commercial cannabis business that is organized as a partnership;

(2) A managing member of a commercial cannabis business that is organized as a limited liability company;

(3) An officer or director of a commercial cannabis business that is organized as a corporation.

§ 8103 (c) All individuals and business entities that have a financial interest in a commercial cannabis business but are not owners as defined in subsections (a) or (b) of this section shall be listed on an application for licensure under section 8102(j) of this chapter. “Financial interest” means an investment into a commercial cannabis business, a loan provided to a commercial cannabis business, or any other fully-vested equity interest in a commercial cannabis business.

§ 8103 (d) Notwithstanding subsections (a), (b), or (c), the following are not considered to be owners or financial interest holders: (1) A bank or financial institution whose interest constitutes a loan; (2) Persons whose only financial interest in the commercial cannabis business is through an interest in a diversified mutual fund, blind trust, or similar instrument; (3) Persons whose only financial interest is a security, lien, or encumbrance on property that will be used by the commercial cannabis business; and (4) Persons who hold a share of stock that is less than five (5) percent of the total shares in a publicly traded company.

Authority: Sections 26012 and 26013, Business and Professions Code.
Reference: Sections 26001, 26013, and 26051.5, Business and Professions Code.

§ 8104. Legal Right to Occupy.

§ 8104 (a) If the applicant is the owner of the property on which the premises is located, the applicant shall provide to the department a copy of the title or deed to the property.

§ 8104 (b) If the applicant is not the owner of the property upon which the premises is located, the applicant shall provide the following to the department:

(1) A document from the property owner or property owner’s agent where the commercial cannabis activity will occur that states the applicant has the right to occupy the property and acknowledges that the applicant may use the property for commercial cannabis cultivation; 

(2) The property owner’s mailing address and phone number; and 

(3) A copy of the lease or rental agreement, or other contractual documentation.

Authority: Sections 26012 and 26013, Business and Professions Code. Reference: Sections 26013 and 26051.5, Business and Professions Code.

§ 8105. Property Diagram.

A property diagram shall be submitted with each application and shall contain the following:

§ 8105 (a) Boundaries of the property and the proposed premises wherein the license privileges will be exercised with sufficient detail to enable ready determination of the bounds of the premises showing all perimeter dimensions, entrances, and exits to both the property and premises;

§ 8105 (b) If the proposed premises consists of only a portion of a property, the diagram shall be labeled indicating which part of the property is the proposed premises and for what purpose the remaining property is used, including any areas shared with other licenses;

§ 8105 (c) All roads and water crossings on the property;

§ 8105 (d) 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/or recreation;

§ 8105 (e) If the applicant 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 property diagram with locations also provided as coordinates in either latitude and longitude or the California Coordinate System: 

(1) Sources of water used, including the location of waterbody diversion(s), pump location(s), and distribution system; and

(2) Location, type, and capacity of each storage unit to be used for cultivation.

§ 8105 (f) The assessor’s parcel number(s);

§ 8105 (g) The diagram shall be to scale; and

§ 8105 (h) The diagram shall not contain any highlighting. 

Authority: Sections 26012 and 26013, Business and Professions Code.
Reference: Sections 26012, 26013, 26051.5, and 26060.1, Business and Professions Code.

§ 8106. Cultivation Plan Requirements.

§ 8106 (a) The cultivation plan for each Specialty Cottage, Specialty, Small, and Medium licenses shall include all of the following:

(1) A detailed premises diagram showing all boundaries and dimensions in feet of the following proposed areas to scale:

(A) Canopy area(s), including aggregate square footage if the canopy areas are noncontiguous. All unique areas separated by identifiable boundaries pursuant to section 8000(f) shall be clearly described and labeled in the premises diagram;

(B) Area(s) outside of the canopy where only immature plants shall be maintained, if applicable. This area may not be shared among multiple licenses held by one licensee;

(C) Designated pesticide and other agricultural chemical storage area(s);

(D) Designated processing area(s) if the licensee will process on site. This area may not be shared among multiple licenses held by one licensee;

(E) Designated packaging area(s) if the licensee will package products on site. This area may not be shared among multiple licenses held by one licensee;

(F) Designated composting area(s) if the licensee will compost cannabis waste on site;

(G) Designated secured area(s) for cannabis waste if different from subsection (F) above;

(H) Designated area(s) for harvested cannabis storage;

(I) Designated area(s) for physically segregating cannabis or nonmanufactured cannabis products subject to an
administrative hold pursuant to section 8604 of this chapter. This area may not be shared among multiple licenses held by one licensee;

(J) Designated area(s) that are shared between licenses held by one licensee. The shared area(s) must be
contiguous, be indicated on the property 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;

(K) Common use area(s), such as hallways, bathrooms, or break rooms. This area may be shared by multiple
licensees.

(2) For indoor and mixed-light license type applications, a lighting diagram with the following information shall be
included:

(A) Location of all lights in the canopy area(s); and

(B) Maximum wattage, or wattage equivalent, of each light.

(3) A pest management plan which shall include, but not be limited to, the following:

(A) Product name and active ingredient(s) of all pesticides to be applied to cannabis during any stage of plant
growth;

(B) Integrated pest management protocols, including chemical, biological, and cultural methods the applicant
anticipates using to control or prevent the introduction of pests on the cultivation site;

(C) A signed attestation that states the applicant 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.

(4) A cannabis waste management plan meeting the requirements of section 8108 of this chapter.

§ 8106 (b) The cultivation plan for nursery licenses shall include the following information:

(1) A detailed premises diagram showing all boundaries and dimensions, in feet, of the following proposed areas to
scale:

(A) Designated pesticide and other agricultural chemical storage area(s);

(B) Designated composting area(s) if the licensee will compost cannabis waste on site;

(C) Designated secured area(s) for cannabis waste if different from subsection (B) above;

(D) At least one of the following areas:

1. Area(s) which shall contain only immature plants;

2. Designated seed production area(s) that may contain mature plants.

(E) 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.

(2) A pest management plan that shall include, but not be limited to, the following:

(A) Product name and active ingredient(s) of all pesticides to be applied to cannabis at any time;

(B) Integrated pest management protocols, including chemical, biological, and cultural methods the applicant
anticipates using to control or prevent the introduction of pests on the cultivation site; and

(C) A signed attestation that states the applicant 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.

(3) A cannabis waste management plan pursuant to section 8108 of this chapter.

§ 8106 (c) The cultivation plan for processor licenses shall include a detailed premises diagram showing all boundaries and dimensions, in feet, of the following proposed areas:

(1) Designated processing area(s);

(2) Designated packaging area(s), if the licensee will package and label products on site;

(3) Designated composting area(s) if the licensee will compost cannabis waste on site;

(4) Designated secured area(s) for cannabis waste if different from subsection (3) above;

(5) Designated area(s) for harvested cannabis storage;

(6) A cannabis waste management plan pursuant to section 8108 of this chapter.

Authority: Sections 26012 and 26013, Business and Professions Code.
Reference: Sections 26012, 26013, 26051.5, 26060, and 26060.1, Business and Professions Code.

§ 8107. Supplemental Water Source Information.

The following information shall be provided for each water source identified by the applicant:

§ 8107 (a) Retail water supply sources:

(1) If the water source is a retail water supplier, as defined in section 13575 of the Water Code, such as a municipal provider, provide the following:

(A) Name of the retail water supplier; and

(B) A copy of the most recent water service bill.

(2) If the water source is a small retail water supplier, such as a delivery service, and is subject to subsection (a)(1)(B) of section 26060.1 of the Business and Professions Code and either:

(A) The retail water supplier contract is for delivery or pickup of water from a surface water body or an
underground stream flowing in a known and definite channel, provide all of the following:

1. The name of the retail water supplier under the contract;

2. The water source and geographic location coordinates in either latitude and longitude or the California Coordinate System of any point of diversion used by the retail water supplier to divert water delivered to the applicant under the contract;

3. The authorized place of use of any water right used by the retail water supplier to divert water delivered to the applicant under the contract;

4. The maximum amount of water delivered to the applicant for cannabis cultivation in any year; and

5. A copy of the most recent water service bill; or

(B) The retail water supplier contract is for delivery or pickup of water from a groundwater well, provide all of the following:

1. The name of the retail water supplier under the contract;

2. The geographic location coordinates for any groundwater well used to supply water delivered to the applicant, in either latitude and longitude or the California Coordinate System;

3. The maximum amount of water delivered to the applicant for cannabis cultivation in any year;

4. A copy of the well completion report filed with the Department of Water Resources pursuant to section 13751 of the Water Code for each percolating groundwater well used to divert water delivered to the applicant. If no well completion report is available, the applicant shall provide evidence from the
Department of Water Resources indicating that the Department does not have a record of the well completion report. When no well completion report is available, the State Water Resources Control Board may request additional information about the well; and 

5. A copy of the most recent water service bill.

§ 8107 (b) If the water source is a groundwater well:

(1) The groundwater well’s geographic location coordinates in either latitude and longitude or the California Coordinate System; and

(2) A copy of the well completion report filed with the Department of Water Resources pursuant to section 13751 of the Water Code. If no well completion report is available, the applicant shall provide evidence from the Department of Water Resources indicating that the Department of Water Resources does not have a record of the well completion report. If no well completion report is available, the State Water Resources Control Board may request additional information about the well.

§ 8107 (c) If the water source is a rainwater catchment system:

(1) The total square footage of the catchment footprint area(s);

(2) The total storage capacity, in gallons, of the catchment system(s); and

(3) A detailed description and photographs of the rainwater catchment system infrastructure, including the location, size, and type of all surface areas that collect rainwater. Examples of rainwater collection surface areas include a rooftop and greenhouse.

§ 8107 (d) If the water source is a diversion from a waterbody (such as a river, stream, creek, pond, lake, etc.), provide any applicable water right statement, application, permit, license, or small irrigation use registration identification number(s), and either:

(1) A copy of any applicable statement, registration certificate, permits, licenses, or proof of a pending application
issued under part 2 (commencing with section 1200) of division 2 of the California Water Code as evidence of
approval of a water diversion by the State Water Resources Control Board;

(2) If the applicant has claimed an exception from the requirement to file a statement of diversion and use pursuant to section 5101 of the Water Code, the applicant shall provide a copy of the documentation submitted to the State Water Resources Control Board before January 1, 2019 demonstrating that the diversion is subject to subsection (a), (c), (d), or (e) of section 5101 of the Water Code.

Authority: Sections 26012 and 26013, Business and Professions Code.
Reference: Sections 26013 and 26060.1, Business and Professions Code.

§ 8108. Cannabis Waste Management Plan.

For the purposes of this section, “cannabis waste” is organic waste, as defined in section 42649.8(c) of the Public Resources Code. An applicant’s cannabis waste management plan shall identify one or more of the following methods for managing cannabis waste generated on its licensed premises:

§ 8108 (a) On-premises composting of cannabis waste;

§ 8108 (b) Collection and processing of cannabis waste by a local agency, a waste hauler franchised or contracted by a local
agency, or a private waste hauler permitted by a local agency;

§ 8108 (c) Self-haul cannabis waste to one or more of the following:

(1) A manned, fully permitted solid waste landfill or transformation facility;

(2) A manned, fully permitted composting facility or manned composting operation;

(3) A manned, fully permitted in-vessel digestion facility or manned in-vessel digestion operation;

(4) A manned, fully permitted transfer/processing facility or manned transfer/processing operation; or

(5) A manned, fully permitted chip and grind operation or facility.

(6) A recycling center as defined in title 14, section 17402.5(d) of the California Code of Regulations and that meets the following:

(A) The cannabis waste received shall contain at least ninety (90) percent inorganic material;

(B) The inorganic portion of the cannabis waste is recycled into new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace; and

(C) The organic portion of the cannabis waste shall be sent to a facility or operation identified in subsection (c)(1) through (5).

§ 8108 (d) Reintroduction of cannabis waste back into agricultural operation through on premises organic waste recycling methods, including but not limited to tilling directly into agricultural land and no-till farming.

Authority: Sections 26012 and 26013, Business and Professions Code.
Reference: Sections 26013 and 26066, Business and Professions Code.

§ 8109. Applicant Track-and-Trace Training Requirement.

§ 8109 (a) For the purpose of this section, the applicant shall designate an owner to be the licensee’s track-and-trace system account manager pursuant to section 8402(c) of this chapter. The designated account manager shall register for trackand-trace system training provided by the department within ten (10) calendar days of receiving notice from the department that its application for licensure has been received and is complete.

§ 8109 (b) Applicants approved for an annual license shall not have access to the track-and-trace system until the designated account manager has completed the track-and-trace training prescribed by the department and proof of completion has been validated by the department.

Authority: Sections 26012 and 26013, Business and Professions Code.
Reference: Sections 26013 and 26067, Business and Professions Code.

§ 8110. Proof of Local License, Permit, or Other Authorization.

When the applicant provides a license, permit, or other authorization from the local jurisdiction where the licensed
premises will be or is located, pursuant to section 26055(e) of the Business and Professions Code, the department will notify the local jurisdiction’s contact person identified pursuant to section 26055(f) of the Business and Professions Code. If the local jurisdiction does not respond to the department’s notification within ten (10) calendar days, the department may issue a license to the applicant.

Authority: Sections 26012 and 26013, Business and Professions Code.
Reference: Sections 26013 and 26055, Business and Professions Code.

§ 8111. Priority Application Review.

§ 8111 (a) Priority review of annual license applications shall be given to applicants that can demonstrate the applicant entity was in operation under the Compassionate Use Act of 1996 before September 1, 2016.

§ 8111 (b) Eligibility for priority application review shall be demonstrated by any of the following, dated prior to September 1, 2016:

(1) Local license, permit, or other authorization;

(2) Collective or cooperative membership agreement;

(3) Tax or business forms submitted to the California Department of Tax and Fee Administration or Franchise Tax Board;

(4) Incorporation documents filed with the Secretary of State;

(5) Any other verifiable business record adequate to demonstrate the operation of the business prior to September 1, 2016; or

(6) Any applicant identified by the local jurisdiction pursuant to section 26054.2(b) of the Business and Professions Code.

§ 8111 (c) The department may request additional documentation to verify the applicant’s date of commencement of operations.

§ 8111 (d) This section shall cease to be operative on December 31, 2019, unless otherwise provided by law.

Authority: Sections 26012 and 26013, Business and Professions Code.
Reference: Sections 26013 and 26054.2, Business and Professions Code.

§ 8112. Annual License Application Review for Completeness.

The department shall notify the applicant in writing that the application is either:

§ 8112 (a) Complete and accepted for further review; or

§ 8112 (b) Incomplete and the reasons for the incompleteness.

(1) The department shall receive the missing information or fee, payment, or penalty from the applicant no later than ninety (90) calendar days from the date of the notification from the department. Failure to provide the designated missing information or any fees, payments, or penalties that are due and payable will result in disqualification of the application from further consideration.

(2) If disqualified, the applicant may reapply and pay a new application fee.

Authority: Sections 26012 and 26013, Business and Professions Code. Reference: Sections 26012 and 26013, Business and
Professions Code.

§ 8113. Substantially Related Offenses Review.

§ 8113 (a) The following convictions shall be considered substantially related to the qualifications, functions, or duties of the business for which the application is made and may be a basis for denying the license:

(1) A violent felony conviction, as specified in subsection (c) of section 667.5 of the Penal Code;

(2) A serious felony conviction, as specified in subsection (c) of section 1192.7 of the Penal Code;

(3) A felony conviction involving fraud, deceit, or embezzlement;

(4) Any felony conviction involving the hiring, employment, or use of children in transporting, carrying, selling, giving away, preparing for sale, or peddling any controlled substance to a minor, or offering, furnishing, or selling any controlled substance to a minor; and

(5) A felony conviction for drug trafficking with enhancements pursuant to sections 11370.4 or 11379.8 of the Health and Safety Code.

§ 8113 (b) Except as provided in subsections (a)(4) and (5) and notwithstanding chapter 2 (commencing with section 480) of division 1.5 of the Business and Professions Code, a prior conviction, where the sentence, including any term or probation, incarceration, or supervised release, is completed, for possession of, possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance is not considered substantially related, and shall not be the sole ground of denial for a license. Conviction for any controlled substance felony subsequent to licensure shall be grounds for revocation of a license or denial of the renewal of the license.

§ 8113 (c) To determine whether an applicant who has been convicted of a criminal offense that is substantially related to the qualifications, functions, or duties of the business for which the application is made should be issued a license, the department shall conduct a review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation. Evidence of rehabilitation includes:

(1) The nature and severity of the criminal offense;

(2) Whether the person has a felony conviction based on possession or use of cannabis or cannabis products that would not be a felony if the person were convicted of the offense on the date of the person’s application;

(3) The applicant’s criminal record as a whole;

(4) Evidence of any conviction of a criminal offense committed subsequent to the criminal offense under consideration that could be considered grounds for denial, suspension, or revocation of a commercial cannabis activity license;

(5) The time that has elapsed since commission of the act or offense;

(6) The extent to which the applicant has complied with any terms of parole, probation, restitution, or any other
sanctions lawfully imposed against the applicant;

(7) If applicable, evidence of dismissal under sections 1203.4, 1203.4a, and 1203.41 of the Penal Code or another
state’s similar law;

(8) If applicable, a certificate of rehabilitation obtained under section 4852.01 of the Penal Code or another state’s similar law; and

(9) Other evidence of rehabilitation submitted by the applicant.

§ 8113 (d) If an applicant has been denied a license based on a substantially related conviction, the applicant may request a hearing pursuant to section 26058 of the Business and Professions Code to determine if the applicant should be issued a license.

Authority: Sections 26012 and 26013, Business and Professions Code. Reference: Sections 26013, 26057, and 26058, Business and Professions Code.

§ 8114. Withdrawal of Application.

An applicant may withdraw an application at any time prior to the department’s issuance of a license or denial of a license.

§ 8114 (a) Requests to withdraw an application shall be submitted to the department in writing, dated, and signed by the designated responsible party.

§ 8114 (b) The department will not refund application fees for a withdrawn application.

§ 8114 (c) An applicant may reapply and pay a new application fee at any time following the withdrawal of an application.

Authority: Sections 26012 and 26013, Business and Professions Code.
Reference: Section 26013, Business and Professions Code.

§ 8115. Notification and Grounds for Denial of License; Petition for Reconsideration.

§ 8115 (a) The department shall notify the applicant in writing if the application is denied with the reasons for denial.

§ 8115 (b) In addition to the reasons for denial in section 26057 of the Business and Professions Code, a license may be denied for the following reasons:

(1) The applicant’s premises does not fully comply with standards pursuant to this chapter;

(2) The applicant denied the department access to the premises to verify compliance with this chapter;

(3) The applicant made a material misrepresentation on the application; or

(4) The licensee had a license, permit, or other authorization to engage in commercial cannabis activity denied,
suspended, or revoked by a state licensing authority or local agency.

§ 8115 (c) Within thirty (30) calendar days upon service of the denial of an application, the applicant may file a written petition for reconsideration. Upon receipt of a timely filed petition for reconsideration, the department shall set a date for a hearing to be conducted pursuant to chapter 5 (commencing with section 11500) of part 1 of division 3 of title 2 of the Government Code.

Authority: Sections 26012 and 26013, Business and Professions Code.
Reference: Sections 26012, 26013, 26057, and 26058, Business and Professions Code.

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