The State of California requires cultivators to gain local approval before they consider giving them a license. Local ordinances can vary by municipality, and some areas do not permit marijuana cultivation at all, such as Fresno.
While the process different depending on the area one wants to grow in, the city will generally ask that a cultivator provide a business plan, security plan, finance plan. Additionally they may request any other general information about the cultivation premises. This also includes the following environmental codes, which also can vary by city. Wastewater management, conservation regulations, and other environmental issues all fall under this.
According to Business and Professions Code 26050, there are 16 different types of cultivation/manufacturing licenses. Some of these must held simultaneously, depending on a variety of factors.
The size of the space, number of plants, type of lighting and cannabis product will determine the licensing requirements. For bigger operations, the state grants limited in number. It is also possible for the state to limit the number of licenses in an area. This is occurs if the concentration of cannabis-related businesses becomes too high.
Business and Professions Code 26051.5 outlines the requirements for obtaining a license. One must provide fingerprint information and pass a background check. Documentation of the legal right to occupy the land, evidence that the operation follows local and statewide zoning ordinances, and a detailed description of the growing methods, business practice, quality control, and security. Lastly, given that the cultivation operation is meant for selling cannabis, not just for personal use, the cultivator will need to obtain a seller’s permit, which is outlined in Business and Professions Code 6001. The seller’s permit ID must be provided before obtaining any cultivation license.
Choosing the type of cultivation/manufacturing license(s) one must obtain is dependent on the size of the cultivation project, whether the plants are grown inside or outside, and the type of cannabis product being made. For example, if a grower has a 7,500 square foot indoor operation, and also makes cannabis concentrates and hash, they must get a type 2a cultivation license, and also get a type 7 manufacturer’s license to make the concentrated products. When the type of license is chosen, the steps to obtain it are fairly consistent between them all. It requires one to follow all local ordinances, pass a background check, provide a business, security, and financial plan, and obtain a seller’s license.
In addition to obtaining a license, it is important to comply with environmental, labor, and tax regulations. These issues are often underestimated, but they determine the legality and stability of a business.
1. water use analysis
2. changes to the landscape
3. pesticide use
4. electricity consumption
All product must be tracked through the Metrc system, which provides transparency at all stages of product movement. Marijuana Cultivation companies must also hire environmental consultants to prepare reports. These reports are then submitted to the local authorities. In addition, if the farm uses natural bodies of water, it must register with the California State Water Resources Control Board. Violations in water use or waste disposal can result in heavy fines or denial of a license. It will also be required to install the following control systems for:
1. odor
2. energy use
3. wastewater
1. proper classification of employees
2. Payment of legal wages
3. compliance with occupational health and safety regulations
4. Carrying insurance for work-related injuries.
If a company has more than 5 employees, it must also sign a labor peace agreement. This ensures that there is no opposition to unionization.
1. cultivation tax
2. excise tax
3. sales tax
Failure to pay or pay on time can result in penalties, interest, and license suspension. To avoid such mistakes, it is advisable to work with an accountant. But be careful, an accountant should definitely have experience in the cannabis industry.
1. 24-hour video surveillance
2. fencing
3. alarm systems
4. access control
If a company plans to transport cannabis between facilities, it must obtain a permit. All products must go through the Metrc system, which ensures transparency at every stage of product movement.
When a large commercial truck is involved in an accident, the consequences are often devastating. Furthermore, these incidents are rarely…
After a devastating accident with a large commercial truck, the investigation usually focuses on the crash scene itself. For instance,…
For years, many California drivers of clean air vehicles enjoyed a coveted perk. They could drive solo in the state's…
If you suffer an injury due to the negligence of a private citizen or company, you generally have two years…
News recently broke that former New York City Mayor Rudy Giuliani was hospitalized after a serious car crash. Reports state…
After a car accident or other injury, you expect the insurance company to help. You pay your premiums faithfully. So,…