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California Cannabis: The Marijuana Cultivation Rules (Part III)

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Ron Strider

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California's Medical Cannabis Regulation and Safety Act ("MCRSA") has left stakeholders with many questions regarding how cannabis cultivation regulations will play out. But now that the California Department of Food and Agriculture ("DFA"), through its CalCannabis Cultivation Licensing division, has dropped its proposed regulations for the Medical Cannabis Cultivation Program, there are at least some answers. Though these rules are not final, they provide the general framework for the forthcoming medical cannabis cultivation (and processing) licensing regime in California.

"Cultivation" means any activity involving planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. And "Processing" means all activities associated with drying, curing, grading, trimming, storing, packaging, and labeling of nonmanufactured cannabis products. The rules define "Nonmanufactured cannabis product" as dried flower, shake, leaf, and pre-rolls intended to be sold for use by medical cannabis patients. Nurseries are also encompassed within the cultivation rules, and are defined as licensees that produce only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of medical cannabis. The rules governing cannabis manufacturing, including extraction and infusion, were developed by the Department of Public Health.

The DFA will offer 14 different cultivation licenses (including the initial application fee – a higher annual license fee will also be required), as follows:

-Specialty Cottage Outdoor ($65) — an outdoor cultivation site with up to 25 mature plants;

-Specialty Cottage Indoor ($100) — an indoor cultivation site with 500 square feet or less of total canopy;

-Specialty Cottage Mixed-Light ($285) — a mixed-light cultivation site with 2,500 square feet or less of total canopy;

-Specialty Outdoor ($130) — 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;

-Specialty Indoor ($1,070) — an indoor cultivation site between 501 and 5,000 square feet of total canopy;

-Specialty Mixed-Light ($555) — an indoor cultivation site between 2,501 and 5,000 square feet of total canopy;

-Small Outdoor ($265) — an outdoor cultivation site between 5,001 and 10,000 square feet of total canopy;

-Small Indoor ($1,935) — an indoor cultivation site between 5,001 and 10,000 square feet of total canopy;

-Small Mixed-Light ($1,105) — a mixed-light cultivation site between 5,001 and 10,000 square feet of total canopy;

-Medium Outdoor ($765) — an outdoor cultivation site between 10,001 square feet and one acre of total canopy;

-Medium Indoor ($4,260) — an indoor cultivation site between 10,001 and 22,000 square feet of total canopy;

-Medium Mixed-Light ($2,435) — a mixed-light cultivation site between 10,001 and 22,000 square feet of total canopy;

-Nursery ($60) — cultivation of cannabis solely as a nursery; and

-Processor ($310) — a cultivation site that conducts only trimming, drying, curing, grading, or packaging of cannabis and non-manufactured cannabis products.

The basic background and corporate information required for the cultivation license application will be nearly identical to the information required of applications for manufacturing, retail, distribution, and transportation licenses. Applicant owners will need to provide the state with a detailed description of any criminal convictions, excepting juvenile adjudications and traffic infractions. Cultivation license applicants must also provide a statement of rehabilitation for each conviction.

Applicants must also provide evidence that they have the legal right to occupy and use the location they are proposing as their cultivation site. If the applicant is the owner of the location, this evidence should include a copy of the title or deed to the property. If the applicant is not the owner of the property, the applicant shall provide the DFA with the following:

1.A document from the property owner 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.

All cannabis cultivation sites must be located at least a 600-foot radius from a school, as defined by Section 11362.768 of the Health and Safety Code. Applicants will also need to show they have a valid seller's permit, or are currently applying for a seller's permit, have obtained a surety bond for at least $5,000, payable to the DFA, have permits issued by the applicable Regional Water Quality Control Board or State Water Resources Control Board (the rules contain detailed requirements for proving that water for cultivation is properly sourced), and have conducted a hazardous materials record search of the EnviroStor database for the proposed premises, among many other requirements.

Importantly, applicants will also need to show they operating in compliance with, or that their location will comply with, applicable local laws, and that they have obtained necessary local permits and approvals. With local regulations varying widely from city to city, and county to county within California, it will be critical to get a head start on ensuring local law compliance for your cultivation business.

The details on "priority status" can be found here, and for cultivation businesses that do not meet the requirements for priority status, but were operating prior to January 1, 2018, the state will provide a grace period for operations during the license application status. If a cultivation business was in operation prior to January 1, 2018, it may continue to operate while its application is pending if a completed application is submitted to the DFA no later than 5:00 p.m. PST on July 2, 2018, and if the continued operations of the applicant are the same activities in which the applicant is seeking licensure. If the license application is denied, the applicant must cease operating until a license is obtained.

Other than for Type 3 (medium sized) cultivation (which means limited ownership of only up to one Medium Outdoor, or one Medium Indoor, or one Medium Mixed-Light license), the DFA will not restrict the total number of cultivation licenses a person is authorized to hold, so long as that person's total licensed canopy does not exceed four acres. The rules provide that multiple cultivation licenses and license types may be located on the same property, but each licensed premises must have a unique entrance and immovable physical barriers between each uniquely license premises.

As is the case with California's cannabis retailer and manufacturing rules, its initial cultivation rules are also in a 45-day comment period and are subject to change.



News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: California Cannabis: The Marijuana Cultivation Rules (Part III) | Above the Law
Author: Hilary Bricken
Contact: About | Above the Law
Photo Credit: None Found
Website: Above the Law
 

Icemud

Member of the Month: July 2012, July 2014 - Nug of the Month: July 2012
The DFA will offer 14 different cultivation licenses (including the initial application fee – a higher annual license fee will also be required), as follows:

-Specialty Cottage Outdoor ($65) — an outdoor cultivation site with up to 25 mature plants;

-Specialty Cottage Indoor ($100) — an indoor cultivation site with 500 square feet or less of total canopy;

-Specialty Cottage Mixed-Light ($285) — a mixed-light cultivation site with 2,500 square feet or less of total canopy;

-Specialty Outdoor ($130) — 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;

-Specialty Indoor ($1,070) — an indoor cultivation site between 501 and 5,000 square feet of total canopy;

-Specialty Mixed-Light ($555) — an indoor cultivation site between 2,501 and 5,000 square feet of total canopy;

-Small Outdoor ($265) — an outdoor cultivation site between 5,001 and 10,000 square feet of total canopy;

-Small Indoor ($1,935) — an indoor cultivation site between 5,001 and 10,000 square feet of total canopy;

-Small Mixed-Light ($1,105) — a mixed-light cultivation site between 5,001 and 10,000 square feet of total canopy;

-Medium Outdoor ($765) — an outdoor cultivation site between 10,001 square feet and one acre of total canopy;

-Medium Indoor ($4,260) — an indoor cultivation site between 10,001 and 22,000 square feet of total canopy;

-Medium Mixed-Light ($2,435) — a mixed-light cultivation site between 10,001 and 22,000 square feet of total canopy;

-Nursery ($60) — cultivation of cannabis solely as a nursery; and

-Processor ($310) — a cultivation site that conducts only trimming, drying, curing, grading, or packaging of cannabis and non-manufactured cannabis products.





News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: California Cannabis: The Marijuana Cultivation Rules (Part III) | Above the Law
Author: Hilary Bricken
Contact: About | Above the Law
Photo Credit: None Found
Website: Above the Law
These costs are only semi accurate as it states, license fees will be additional. Here is what to expect.

These are the license APPLICATION FEES... not the LICENSE FEE.

Here are the proposed License Fees:

§ 8200. 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- $595

(b) Specialty Cottage Indoor- $900

(c) Specialty Cottage Mixed-Light- $2,560

(d) Specialty Outdoor- $1,185

(e) Specialty Indoor- $9,620

(f) Specialty Mixed-Light- $4,980

(g) Small Outdoor- $2,370

(h) Small Indoor- $17,430

(i) Small Mixed-Light- $9,960

(j) Medium Outdoor- $6,890

(k) Medium Indoor- $38,350

(l) Medium Mixed-Light- $21,915

(m) Nursery- $560

(n) Processor- $2,790