Article 3.

Cultivation License Fees and Requirements

Table of Contents

§ 8200. Annual License Fees.

An annual license fee shall be paid to the department prior to issuance of a license or renewal license. The fee schedule is as
follows:

(a) Specialty Cottage Outdoor $1,205
(b) Specialty Cottage Indoor $1,830
(c) Specialty Cottage Mixed-Light Tier 1 $3,035
(d) Specialty Cottage Mixed-Light Tier 2 $5,200
(e) Specialty Outdoor $2,410
(f) Specialty Indoor $19,540
(g) Specialty Mixed-Light Tier 1 $5,900
(h) Specialty Mixed-Light Tier 2 $10,120
(i) Small Outdoor $4,820
(j) Small Indoor $35,410
(k) Small Mixed-Light Tier 1 $11,800
(l) Small Mixed-Light Tier 2 $20,235
(m) Medium Outdoor $13,990
(n) Medium Indoor $77,905
(o) Medium Mixed-Light Tier 1 $25,970
(p) Medium Mixed-Light Tier 2 $44,517
(q) Nursery $4,685
(r) Processor $9,370

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

§ 8201. Cultivation License Types.

Nursery licensees producing seed for distribution shall tag all mature plants with a UID pursuant to section 8403(b)(4) of this chapter. All products, except seed, derived from these plants are prohibited from entering the commercial distribution chain.

§ 8201 (a) Specialty Cottage:

(1) “Specialty Cottage Outdoor” is an outdoor cultivation site with up to 25 mature plants.

(2) “Specialty Cottage Indoor” is an indoor cultivation site with 500 square feet or less of total canopy.

(3) “Specialty Cottage Mixed-Light Tier 1 and 2” is a mixed-light cultivation site with 2,500 square feet or less of total canopy.

§ 8201 (b) Specialty

(1) “Specialty Outdoor” is an outdoor cultivation site with less than or equal to 5,000 square feet of total canopy, or up to 50 mature plants on noncontiguous plots.

(2) “Specialty Indoor” is an indoor cultivation site between 501 and 5,000 square feet of total canopy.

(3) “Specialty Mixed-Light Tier 1 and 2” is a mixed-light cultivation site between 2,501 and 5,000 square feet of total canopy.

§ 8201 (c) Small

(1) “Small Outdoor” is an outdoor cultivation site between 5,001 and 10,000 square feet of total canopy.

(2) “Small Indoor” is an indoor cultivation site between 5,001 and 10,000 square feet of total canopy.

(3) “Small Mixed-Light Tier 1 and 2” is a mixed-light cultivation site between 5,001 and 10,000 square feet of total canopy.

§ 8201 (d) Medium

(1) “Medium Outdoor” is an outdoor cultivation site between 10,001 square feet and one acre of total canopy.

(2) “Medium Indoor” is an indoor cultivation site between 10,001 and 22,000 square feet of total canopy.

(3) “Medium Mixed-Light Tier 1 and 2” is a mixed-light cultivation site between 10,001 and 22,000 square feet of total canopy.

§ 8201 (e) “Nursery” is a cultivation site that conducts only cultivation of clones, immature plants, seeds, and other agricultural products used specifically for the propagation of cultivation of cannabis.

§ 8201 (f) “Processor” is a cultivation site that conducts only trimming, drying, curing, grading, packaging, or labeling of cannabis and nonmanufactured cannabis products.

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

§ 8202. General License Requirements.

§ 8202 (a) Cultivation licenses shall be valid for twelve (12) months from the date of issuance.

§ 8202 (b) Every person shall obtain a separate license for each premises where the person engages in commercial cannabis cultivation.

§ 8202 (c) Cultivation licenses are not transferrable or assignable to any other person or property.

§ 8202 (d) Licensees are prohibited from transferring any commercially cultivated cannabis or nonmanufactured cannabis products from their licensed premises. All transfers of cannabis and nonmanufactured cannabis product from a licensed cultivation premises must be conducted by a distributor licensed by the bureau.

§ 8202 (e) The license shall be prominently displayed on the licensed premises where it can be viewed by state or local agencies.

§ 8202 (f) A licensee shall not sublet any portion of the licensed premises.

§ 8202 (g) Outdoor licensees are prohibited from using light deprivation.

Authority: Sections 26012 and 26013, Business and Professions Code.
Reference: Sections 26010, 26012, 26013, 26050, and 26053, Business and Professions Code.

§ 8203. Renewal of License.

§ 8203 (a) An application for renewal of a cultivation license shall be submitted to the department no earlier than sixty (60)
calendar days before the expiration of the license and no later than 5:00 p.m. Pacific Time on the last business day before the expiration of the license if the renewal form is submitted to the department at its office(s), or no later than 11:59 p.m. on the last business day before the expiration of the license if the renewal form is submitted to the department through its electronic licensing system. Failure to receive a notice for license renewal does not relieve a licensee of the obligation to renew all licenses as required.

§ 8203 (b) In the event an application for renewal is not submitted prior to the expiration of the license, the licensee must not sell any commercial cannabis until the license is renewed.

§ 8203 (c) A licensee may submit a license renewal form up to thirty (30) calendar days after the license expires. Any late renewal form will be subject to a fee of fifty (50) percent of the application fee to be paid in addition to the required annual
renewal fee.

§ 8203 (d) A licensee that does not submit a complete license renewal application to the department within thirty (30) calendar days after the expiration of the current license shall forfeit its eligibility to apply for a license renewal and, instead, shall be required to submit a new license application.

§ 8203 (e) The license renewal application shall be submitted to the department and contain the following:

(1) The legal name of the licensed entity;

(2) The license number and expiration date;

(3) The licensee’s mailing address and premises address;

(4) The annual license fee pursuant to section 8200 of this chapter;

(5) If applicable, documentation regarding any changes that have occurred to the information originally submitted to the department pursuant to section 8102 of this chapter;

(6) If applicable, a request for a license designation change from an A-License to an M-License or an M-License to an ALicense pursuant to section 8203(f) of this chapter;

(7) An attestation that all information provided to the department is accurate and current; and

(8) If applicable, a limited waiver of sovereign immunity pursuant to section 8102 of this division.

§ 8203 (f) License Designation Change Request.

(1) A licensee may request a license designation change from an A-License to an M-License or an M-License to an ALicense during the annual license renewal timeframes outlined in section 8203 (a)-(c) above for the annual license for which the license designation change is being requested.

(2) License designation changes will be considered only if the annual licensed premises for which the change is being requested contains only one A-License or only one M-License designation pursuant to Section 8102(b) of this chapter.

(3) If the department approves a request for a license designation change, the licensee is required to order, apply, and report applicable plant and package UIDs in accordance with the applicable process and procedures developed by the department pursuant to Article 5 of this chapter.

§ 8203 (g) Beginning January 1, 2022, an application for renewal of a license shall include the following records, for each power source indicated on the application for licensure for the previous annual licensed period:

(1) Total electricity supplied by local utility provider, name of local utility provider, and greenhouse gas emission
intensity per kilowatt hour reported by the utility provider under section 398.4(c) of the Public Utilities Code for the most recent calendar year available at time of submission;

(2) Total electricity supplied by a zero net energy renewable source, as set forth in section 398.4(h)(5) of the Public
Utilities Code, that is not part of a net metering or other utility benefit;

(3) Total electricity supplied from other unspecified sources, as defined in 398.2(e) of the Public Utilities Code, and
other on-site sources of generation not reported to the local utility provider (e.g., generators, fuel cells) and the
greenhouse gas emission intensity from these sources;

(4) Average weighted greenhouse gas emission intensity considering all electricity use in subsections (1), (2), and (3).

Authority: Sections 26012 and 26013, Business and Professions Code.
Reference: Sections 26013, 26050, 26051.5, and 26055, Business and Professions Code.

§ 8204. Notification of License Information Change.

§ 8204 (a) Licensees shall notify the department in writing within ten (10) calendar days of any change to any item listed in the application and any of the following events:

(1) Disciplinary proceeding initiated by any state or local government agency;

(2) Bankruptcy filing, including any proceeding for the assignment for the benefit of creditors, by the licensee or any owner listed on the application for licensure;

(3) Temporary closure longer than thirty (30) calendar days. Include in the notification the reason for temporary closure and expected duration of closure;

(4) Modifications to the cultivation plan pursuant to section 8106 of this chapter that do not require preapproval
pursuant to section 8205 of this chapter; and

(5) Any change in ownership that does not affect the business entity type. New owners shall submit all information pursuant to section 8102(i) of this chapter.

§ 8204 (b) Any change to the business entity type that includes any change of ownership requires a new application and
application fee.

§ 8204 (c) Licensees shall notify the department in writing of the following within forty-eight (48) hours of:

(1) Receiving a criminal conviction or civil judgment rendered against the licensee or any owner;

(2) Receiving notification of the revocation of a local license, permit, or other authorization;

(3) Receiving an administrative order for violations of labor standards against the licensee or any owner in his or her
individual capacity. The written notification shall include the date of the order, the name of the agency issuing the
order, and a description of the administrative penalty or judgement rendered against the licensee; and

(4) Any change in the licensee’s designated track-and-trace system account manager identified pursuant to section
8109 of this chapter.

§ 8204 (d) For purposes of this section, “in writing” shall mean notification to the department in the form of a letter or document, email, fax, or any other written form. Notification by mail shall be addressed to the California Department of Food and Agriculture, P.O. Box 942872, Sacramento, CA 94271-2872. Mailed notifications must be postmarked within the specified timeframe provided in subsections (a) and (c) and electronic notifications must be transmitted within the specified timeframe provided in subsections (a) and (c).

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

§ 8205. Physical Modification of Premises.

A licensee shall not make a physical modification of the licensed premises that materially or substantially alters the licensed premises or the use of the licensed premises as specified in the premises diagram originally filed with the license application
without the prior written approval of the department.

§ 8205 (a) The following premises modifications require approval in writing from the department prior to modification:

(1) Modification to any area described in the licensee’s cultivation plan including, but not limited to, the removal,
creation, or relocation of canopy, processing, packaging, composting, harvest storage, and chemical storage areas;

(2) Change in water or power source(s); and

(3) Modifications or upgrades to electrical systems at a licensed premises shall be performed by a licensed electrician. A copy of the electrician’s license shall be submitted with any premises modification requests for electrical systems.

§ 8205 (b) A licensee shall request approval of a physical change, alteration, or modification in writing to the department, and the request shall include a new premises diagram and/or cultivation plan pursuant to section 8106 of this chapter.

§ 8205 (c) A licensee shall provide any additional documentation requested by the department to evaluate the licensee’s request.

§ 8205 (d) For purposes of this section, “in writing” shall mean notification to the department in the form of a letter or document, email, fax, or any other written form. Notification by mail shall be addressed to the California Department of Food and Agriculture, P.O. Box 942872, Sacramento, CA 94271-2872.

§ 8205(e) The department shall review the licensee’s written request and respond in accordance with section 8112 and notify the licensee if the premises modification is approved.

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

§ 8206. Death or Incapacity of an Owner.

§ 8206 (a) In the event of the death, incapacity, receivership, assignment for the benefit of creditors of an owner, or other event rendering an owner incapable of performing the duties associated with the license, the owner’s successor in interest (e.g., appointed guardian, executor, administrator, receiver, trustee, or assignee) shall notify the department within ten (10) calendar days,

§ 8206 (b) To continue operations or surrender the existing license, the successor in interest shall submit to the department the following:

(1) The name of the successor in interest;

(2) The name of the owner for which the successor in interest is succeeding and the license number;

(3) The phone number, mailing address, and email address of the successor in interest; and

(4) Documentation demonstrating that the owner is incapable of performing the duties associated with the license, such as a death certificate or a court order finding the owner lacks capacity, and documentation demonstrating that the individual making the request is the owner’s successor in interest, such as a court order appointing guardianship, or a will or trust agreement.

§ 8206 (c) The department may give the successor in interest written approval to continue operations on the licensed business premises for a period of time specified by the department if:

(1) The successor in interest or another person has applied for a license from the department for the license location and that application is under review; or

(2) The successor in interest needs additional time to destroy or sell cannabis or nonmanufactured cannabis products; or

(3) At the discretion of the department.

§ 8206 (d) The owner’s successor in interest is held subject to all terms and conditions under which a state cannabis license is held pursuant to the Act and the regulations of this chapter.

§ 8206 (e) The approval creates no vested right to the issuance of a state cannabis license.

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

§ 8207. Disaster Relief.

§ 8207 (a) If a licensee is unable to comply with any licensing requirement(s) due to a disaster, the licensee may notify the
department of this inability to comply and request relief from the specific licensing requirement(s).

§ 8207 (b) The department may exercise its discretion to provide temporary relief from specific licensing requirements for
licensees whose operations have been impacted by a disaster.

§ 8207 (c) Temporary relief from specific licensing requirements shall be issued for a reasonable amount of time as determined by the department in order to allow the licensee to recover from the disaster.

§ 8207 (d) The department may require that certain conditions be followed in order for a licensee to receive temporary relief from specific licensing requirements.

§ 8207 (e) A licensee shall not be subject to enforcement action for a violation of a licensing requirement from which the licensee has received temporary relief.

§ 8207 (f) For the purposes of this section, “disaster” means condition of extreme peril to the safety of persons and property within the state or a county, city and county, or city caused by such conditions such as air pollution, fire, flood, storm, tidal wave, epidemic, riot, drought, terrorism, sudden and severe energy shortage, plant or animal infestation or
disease, Governor’s warning of an earthquake or volcanic prediction, or an earthquake, or similar public calamity, other
than conditions resulting from a labor controversy, for which the Governor has proclaimed a state of emergency in
accordance with Government Code sections 8558 and 8625, or for which a local governing body has proclaimed a local
emergency in accordance with Government Code sections 8558 and 8630.

§ 8207 (g) A licensed premises that has been vacated by a licensee due to a disaster shall not be deemed to have been
surrendered, abandoned, or quit pursuant to section 8208 of this chapter.

§ 8207 (h) Notwithstanding subsection (a) of this section, if a licensee needs to move cannabis and nonmanufactured cannabis products stored on the premises to another location immediately to prevent loss, theft, or degradation of the cannabis and nonmanufactured cannabis products from the disaster, the licensee may move the cannabis without obtaining prior approval from the department if the following conditions are met:

(1) The cannabis and nonmanufactured cannabis products are moved to a secure location where access to the cannabis is restricted to the licensee, its employees, and contractors;

(2) The licensee notifies the department in writing that the cannabis and nonmanufactured cannabis products have been moved and that the licensee is requesting relief from complying with specific licensing requirements pursuant to subsection (a) of this section within twenty-four (24) hours of moving the cannabis;

(3) The licensee provides the department access to the location where the cannabis and nonmanufactured cannabis products have been moved to for inspection; and

(4) The licensee submits in writing to the department within ten (10) calendar days of moving the cannabis and
nonmanufactured cannabis products a request for temporary relief that clearly indicates the statutory and
regulatory sections from which relief is requested, the time period for which the relief is requested, and the reasons relief is needed for the specified amount of time.

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

§ 8208. Surrender, Revocation, or Suspension of License.

§ 8208 (a) Any licensee may apply to surrender any license by delivering to the department written notice that the licensee
surrenders that license.

§ 8208 (b) The surrender of a license becomes effective thirty (30) days after receipt of an application to surrender the license or within a shorter period of time that the department may determine, unless a revocation or suspension proceeding, including but not limited to, investigation or examination, is pending when the application is filed, or a proceeding to revoke or suspend or to impose conditions upon the surrender is instituted within thirty (30) days after the application is filed. If a proceeding is pending or instituted, the surrender of a license becomes effective at the time and upon the conditions that the department determines.

§ 8208  (c) A licensee that abandons or quits the licensed premises, or that closes the licensed premises for a period exceeding thirty (30) consecutive calendar days without the notifying the department pursuant to section 8204 of this chapter, shall be deemed to have surrendered its license at the time and upon the conditions that the department determines.

§ 8208 (d) The surrender of a license does not affect the licensee’s civil or criminal liability for acts committed prior to the
surrender of the license.

§ 8208 (e) The power of investigation and examination by the department is not terminated by the surrender, suspension, or revocation of any license issued by the department and the department shall have continuous authority to exercise the
powers set forth in the Act and the rules and regulations promulgated thereunder.

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

§ 8209. Medium Cultivation License Limits.

A person shall be limited to one (1) Medium Outdoor, or one (1) Medium Indoor, or one (1) Medium Mixed-Light A-License
or M-License. This section shall remain in effect until January 1, 2023.

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

§ 8210. Sample Collection by the Bureau.

When a licensee transfers possession, but not title, of cannabis to a licensed distributor, the licensee shall allow the bureau
to collect samples for the bureau’s own laboratory analysis.

Authority: Sections 26012 and 26013, Business and Professions Code.
Reference: Sections 26013 and 26110, Business and Professions Code.

§ 8211. Prohibition of Product Returns.

Licensees are prohibited from accepting returns of cannabis plants or nonmanufactured cannabis products after
transferring possession of cannabis plants or nonmanufactured cannabis products to another licensee after testing is
performed pursuant to section 26110 of the Business and Professions Code.

Authority: Sections 26012 and 26013, Business and Professions Code.
Reference: Sections 26013, 26060, and 26110, Business and Professions Code.

§ 8212. Packaging and Labeling of Cannabis and Nonmanufactured Cannabis Products.

§ 8212 (a) All cannabis and nonmanufactured cannabis products packaged and/or labeled by a licensed cultivator shall meet all of the following:

(1) All applicable requirements including implementing regulations pursuant to sections 26120 and 26121 of the
Business and Professions Code;

(2) Any other requirements for cannabis and nonmanufactured cannabis product specified by the bureau and the
California Department of Public Health;

(3) Packaging and labeling requirements pursuant to chapter 6 (commencing with section 12601), division 5 of the
Business and Professions Code.

(4) Beginning January 1, 2020, a package for retail sale, excluding those containing immature plants and seeds, shall be child-resistant.

§ 8212 (b) A label may specify the county of origin only if one hundred (100) percent of the cannabis or nonmanufactured cannabis product contained in the package was produced within the designated county, as defined by finite political boundaries.

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

§ 8213. Requirements for Weighing Devices and Weighmasters.

§ 8213 (a) Weighing devices used by a licensee shall be approved, registered, tested, and sealed pursuant to chapter 5
(commencing with section 12500) of division 5 of the Business and Professions Code and its implementing regulations
and registered with the county sealer consistent with chapter 2 (commencing with section 12240) of division 5 of the
Business and Professions Code and its implementing regulations. Approved, registered, tested, and sealed devices shall
be used whenever any one or more of the following apply:

(1) Cannabis and nonmanufactured cannabis products are bought or sold by weight or count;

(2) Cannabis and nonmanufactured cannabis products are packaged for sale by weight or count;

(3) Cannabis and nonmanufactured cannabis products are weighed or counted for entry into the track-and-trace
system; or

(4) The weighing device is used for commercial purposes as defined in section 12500 of the Business and Professions Code.

§ 8213 (b) In any county in which a sealer is unable or not required to approve, register, test, and seal weighing devices used by a licensee, the department may perform the duties of the county sealer in the same manner, to the same extent, and with the same authority as if it had been the duly appointed sealer in such county. In those instances, the department
shall charge a licensee for its services using the schedule of fees established in Business and Professions Code section
12240.

§ 8213 (c) For the purposes of this chapter a licensee must use wet weight or net weight. Wet weight and net weight shall be measured, recorded, and reported in U.S. customary units (e.g., ounce or pound); or International System of Units (e.g.,
kilograms, grams, or milligrams).

§ 8213 (d) For the purposes of this chapter, “count” means the numerical count of the individual cannabis plants, seeds, or
nonmanufactured cannabis product units.

§ 8213 (e) Any licensee weighing or measuring cannabis or nonmanufactured cannabis product in accordance with subsection (a) shall be licensed as a weighmaster.

§ 8213 (f) A licensed weighmaster shall issue a weighmaster certificate whenever payment for the commodity or any charge for service or processing of the commodity is dependent upon the quantity determined by the weighmaster in accordance with section 12711 of the Business and Professions Code and shall be consistent with the requirements in chapter 7 (commencing with section 12700) of division 5 of the Business and Professions Code.

Authority: Sections 12027, 26012 and 26013, Business and Professions Code.
Reference: Sections 12210, 12212, 26013 and 26060, Business and Professions Code.

§ 8214. Commercial Cannabis Activity Between Licensees.

Cultivation licensees may conduct commercial cannabis activities with any other licensee, regardless of the licensee’s A or M designation of its license.

Authority: Sections 26012 and 26013, Business and Professions Code.
Reference: Sections 26001, 26013, and 26053, Business and Professions Code.

§ 8215. Personnel Prohibited from Holding Licenses.

§ 8215 (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.

§ 8215 (b) This section applies to, but is not limited to, any persons 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.

§ 8215 (c) All persons listed in subsections (a) and (b) may not have any ownership interest, directly or indirectly, in any business to be operated or conducted under a cannabis license.

§ 8215 (d) This section does not apply to any person who holds a license in the capacity of executor, administrator, or guardian.

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

§ 8216. License Issuance in an Impacted Watershed.

If the State Water Resources Control Board or the Department of Fish and Wildlife notifies the department in writing that
cannabis cultivation is causing significant adverse impacts on the environment in a watershed or other geographic area
pursuant to section 26069, subdivision (c)(1), of the Business and Professions Code, the department shall not issue new
licenses or increase the total number of plant identifiers within that watershed or area while the moratorium is in effect.

Authority: Sections 26012 and 26013, Business and Professions Code.
Reference: Sections 26013 and 26069, Business and Professions Code.

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